Document:

Supplemental Benefit Plan for Employees of The Boeing Company

 Exhibit 4.1 
 SUPPLEMENTAL BENEFIT PLAN 
 FOR EMPLOYEES OF 
 THE BOEING COMPANY 
 AS AMENDED AND
RESTATED 
 EFFECTIVE January 1, 2009 
 Revised December 2008 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I Introduction
	  	1
	ARTICLE II Definitions	  	2
	    2.1	  	Account	  	2
	    2.2	  	Affiliate or Subsidiary	  	2
	    2.3	  	Authorized Period of Absence	  	2
	    2.4	  	Base Salary	  	2
	    2.5	  	Beneficiary	  	2
	    2.6	  	BCERP	  	2
	    2.7	  	Board of Directors	  	2
	    2.8	  	Code	  	3
	    2.9	  	Committee	  	3
	    2.10	  	Company	  	3
	    2.11	  	Company Matching Contribution	  	3
	    2.12	  	Compensation	  	3
	    2.13	  	DC SERP Benefit	  	3
	    2.14	  	Deferral Contribution	  	3
	    2.15	  	Deferral Election	  	3
	    2.16	  	Deferred Compensation Plan	  	3
	    2.17	  	Earnings Credits	  	4
	    2.18	  	Eligible Employee	  	4
	    2.19	  	Employee	  	4
	    2.20	  	Executive Company Contribution	  	4
	    2.21	  	FSP	  	4
	    2.22	  	Incentive Compensation	  	4
	    2.23	  	Layoff Period	  	4
	    2.24	  	Participant	  	5
	    2.25	  	Plan	  	5
	    2.26	  	Plan Year	  	5
	    2.27	  	PVP	  	5
	    2.28	  	Restoration Benefit	  	5
	    2.29	  	SBP Company Contribution	  	5
	    2.30	  	Separation from Service	  	5
	    2.31	  	SERP	  	6
	    2.32	  	Service	  	6
	    2.33	  	Specified Employee	  	6
	    2.34	  	Unforeseeable Emergency	  	6
	    2.35	  	VIP	  	6
	ARTICLE III Restoration Benefit Eligibility and Benefits	  	7
	    3.1	  	Restoration Benefit Eligibility	  	7
	    3.2	  	Restoration Benefit Participation	  	8
	    3.3	  	Deferral Contributions	  	9
	    3.4	  	Company Matching Contributions	  	10
	     3.5
	  	SBP Company Contributions	  	10

  

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	     3.6
	  	Vesting	  	11
	     3.7
	  	Cancellation of Deferral Election Due to Unforeseeable Emergency	  	11
	 ARTICLE IV Executive Company Contribution Eligibility and Benefits
	  	12
	     4.1
	  	Executive Company Contribution Eligibility	  	12
	     4.2
	  	Executive Company Contribution Participation	  	12
	     4.3
	  	Executive Company Contribution Benefits	  	12
	     4.4
	  	Executive Company Contribution Vesting	  	13
	 ARTICLE V DC SERP Eligibility and Benefits
	  	14
	     5.1
	  	DC SERP Eligibility	  	14
	     5.2
	  	DC SERP Participation	  	14
	     5.3
	  	DC SERP Benefits	  	14
	     5.4
	  	DC SERP Vesting	  	15
	     5.5
	  	DC SERP Forfeiture Rules	  	18
	 ARTICLE VI Distributions
	  	20
	     6.1
	  	Form and Timing of Distribution	  	20
	     6.2
	  	Death Benefits	  	24
	     6.3
	  	Rehires	  	24
	 ARTICLE VII Accounts
	  	27
	     7.1
	  	Participant Accounts	  	27
	     7.2
	  	Earnings Credits	  	27
	     7.3
	  	Investment Election Changes and Restrictions	  	29
	     7.4
	  	Missing Participants and Improper Credits	  	29
	 ARTICLE VIII Administration
	  	30
	     8.1
	  	Plan Administration	  	30
	     8.2
	  	Claims Procedure	  	30
	 ARTICLE IX Amendment and Termination
	  	31
	 ARTICLE X Miscellaneous
	  	32
	     10.1
	  	No Employment Rights	  	32
	     10.2
	  	Anti-Assignment	  	32
	     10.3
	  	Unfunded Status of Plan	  	32
	     10.4
	  	Delays in Payment	  	32
	     10.5
	  	Involuntary Inclusion in Income	  	32
	     10.6
	  	Compliance With Code Section 409A	  	33
	     10.7
	  	Construction	  	33
	     10.8
	  	Legal Action	  	33
	 APPENDIX A Boeing Satellite Systems Salaried Employees’ Excess Benefit Plan
	  	34
	 APPENDIX B Plan Provisions Prior To January 1, 1999
	  	42
	     B1.1
	  	Eligibility and Benefits for BCERP Participants	  	42
	     B1.2
	  	Eligibility and Benefits for FSP Participants	  	43

  

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 ARTICLE I 
 Introduction 
 The Supplemental Benefit Plan for Employees of The Boeing Company (Plan) was originally
established effective January 1, 1978 by The Boeing Company. The Plan was amended and restated effective January 1, 2008 to comply with section 409A of the Internal Revenue Code of 1986, as amended (Code). The Plan was subsequently amended
and restated as of January 1, 2009 for the purpose of expanding the Restoration Benefit, and for the purpose of adding an Executive Company Contribution and a DC SERP benefit. 
 The Plan provides three separate benefits: (i) the Restoration Benefit, (ii) the Executive Company Contribution, and (iii) the DC SERP Benefit. The purpose of the Restoration Benefit is to restore the
benefits of certain employees under The Boeing Company Voluntary Investment Plan, to the extent that these qualified plan benefits are limited by sections 415 and 401(a)(17) of the Code. The purpose of the Executive Company Contribution is to
provide an additional contribution to this Plan, equal to a percentage of the annual incentive plan payments for a select group of management or highly compensated employees who are hired or rehired on or after January 1, 2009, in lieu of a
portion of the Company Contribution under the VIP. The purpose of the DC SERP Benefit is to provide a supplemental retirement benefit for a select group of management or highly compensated employees at level E-1 through E-3 who are hired or rehired
on or after January 1, 2009. 
 For periods prior to January 1, 1999, the Plan also restored participants’ benefits under The Boeing Company
Employee Retirement Plan and The Boeing Company Employee Financial Security Plan, to the extent these benefits were limited by sections 415 and 401(a)(17) of the Code. For the period January 1, 1987 through May 31, 1987, the Plan also
restored benefits reduced by the limitation on elective deferrals imposed by section 402(g)(1) of the Code. 
 It is intended that the Plan shall be an
excess benefit plan as defined in section 3(36) of the Employee Retirement Income Security Act of 1974 (ERISA) to the extent benefits are paid in excess of the limits imposed by section 415 of the Code. To the extent any part of the Plan is not an
excess benefit plan, it is intended that the Plan is an unfunded plan maintained primarily for the purpose of providing deferred compensation to a select group of management or highly compensated employees under sections 201(2), 301(a)(3), and
401(a)(1) of ERISA. 
  

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 ARTICLE II 
 Definitions 
  

	2.1	Account 

 “Account” means the
recordkeeping account established for each Participant in the Plan, for purposes of accounting for Restoration Benefits (Deferral Contributions, Company Matching Contributions, and SBP Company Contributions), Executive Company Contributions, DC SERP
Benefits, and the Earnings Credits thereon. 
  

	2.2	Affiliate or Subsidiary 

 “Affiliate or
Subsidiary” means a member of a controlled group of corporations (as defined in Code section 1563(a), determined without regard to Code sections 1563(a)(4) and (e)(3)(c)), a group of trades or businesses (whether incorporated or not) which are
under common control within the meaning of Code section 414(c), or an affiliated service group (as defined in Code sections 414(m) or 414(o)) of which The Boeing Company is a part. 
  

	2.3	Authorized Period of Absence 

 “Authorized
Period of Absence” means a leave of absence approved by the Company. 
  

	2.4	Base Salary 

 “Base Salary” means an
Employee’s annual base rate of pay from the Company. 
  

	2.5	Beneficiary 

 “Beneficiary” generally
means the person or persons designated by a Participant under the VIP to receive any benefit payable from the VIP upon the death of the Participant. If no designation is filed under the VIP, or if the designated beneficiary does not survive the
Participant, the default rules stated in the VIP will apply. 
  

	2.6	BCERP 

 “BCERP” means The Boeing Company
Employee Retirement Plan. 
  

	2.7	Board of Directors 

 “Board of Directors”
means the board of directors of The Boeing Company. 
  

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	2.8	Code 

 “Code” means the Internal Revenue
Code of 1986, as amended. 
  

	2.9	Committee 

 “Committee” means the Employee
Benefit Plans Committee. 
  

	2.10	Company 

 “Company” means The Boeing
Company, its successors in interest, and its Affiliates and Subsidiaries. 
  

	2.11	Company Matching Contribution 

 “Company
Matching Contribution” means the amount credited to a Participant’s Account under Section 3.4. 
  

	2.12	Compensation 

 “Compensation” means a
Participant’s Compensation as defined under the VIP, but determined without regard to the limitation on Compensation under Code section 401(a)(17). In no event will Compensation include payments under any incentive compensation plan, without
regard to whether it is included in compensation under the VIP. 
  

	2.13	DC SERP Benefit 

 “DC SERP Benefit” means
the benefit provided under Article V, and Earnings Credits thereon. 
  

	2.14	Deferral Contribution 

 “Deferral
Contribution” means the portion of a Participant’s Compensation, if any, that he or she elects to defer on a pre-tax basis under this Plan in accordance with Section 3.3. 
  

	2.15	Deferral Election 

 “Deferral Election”
means the election made by an Eligible Employee to defer a portion of his or her Compensation in accordance with Section 3.3. 
  

	2.16	Deferred Compensation Plan 

 “Deferred
Compensation Plan” means the Deferred Compensation Plan for Employees of The Boeing Company. 
  

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	2.17	Earnings Credits 

 “Earnings Credits”
means the adjustment to a Participant’s Account under Section 7.2. 
  

	2.18	Eligible Employee 

 “Eligible Employee”
means, with respect to any Plan Year, an Employee of the Company who has satisfied the requirements of one or more of the following: Section 3.1 with regard to the Restoration Benefit, Section 4.1 with regard to the Executive Company
Contribution, or Section 5.1 with regard to the DC SERP Benefit. 
  

	2.19	Employee 

 “Employee” means any person who
is employed as a common law employee by any member of the Company. 
  

	2.20	Executive Company Contribution 

 “Executive
Company Contribution” means the benefit provided under Article IV. 
  

	2.21	FSP 

 “FSP” means The Boeing Company
Employee Financial Security Plan. 
  

	2.22	Incentive Compensation 

 “Incentive
Compensation” means the amount payable to the Participant under The Boeing Company Elected Officer Annual Incentive Plan or the Incentive Compensation Plan for Employees of The Boeing Company and Subsidiaries. Incentive Compensation will be
counted solely to the extent attributable to performance periods beginning on or after January 1, 2009. 
 Incentive Compensation
deferred by the Participant under the Deferred Compensation Plan will be deemed to have been paid as if those amounts had not been deferred, for purposes of this Plan. 
  

	2.23	Layoff Period 

 “Layoff Period” means the
period beginning on the date a Participant is laid off from employment with the Company and ending on the sixth anniversary of such layoff. 
  

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	2.24	Participant 

 “Participant” means an
Eligible Employee who has elected to defer Compensation or receive SBP Company Contributions under the Plan in accordance with Article III, who is eligible to receive an Executive Company Contribution under Article IV, who is eligible to accrue
benefits under the DC SERP under Article V, or an Employee or former Employee who has amounts credited to his or her Account. 
  

	2.25	Plan 

 “Plan” means this Supplemental
Benefit Plan for Employees of The Boeing Company as herein set forth, together with any amendments that may be adopted. 
  

	2.26	Plan Year 

 “Plan Year” means the calendar
year. 
  

	2.27	PVP 

 “PVP” means the Pension Value Plan
for Employees of The Boeing Company. 
  

	2.28	Restoration Benefit 

 “Restoration
Benefit” means the benefit provided under Article III, comprised of Deferral Contributions, Company Matching Contributions and SBP Company Contributions, as applicable, and Earnings Credits thereon. 
  

	2.29	SBP Company Contribution 

 “SBP Company
Contribution” means the benefit provided under Section 3.5. 
  

	2.30	Separation from Service 

 “Separation from
Service” or “Separates from Service” means an Employee’s death, retirement or termination of employment from the Company within the meaning of Code section 409A. For purposes of determining whether a Separation from Service
has occurred, Affiliates and Subsidiaries are defined by using the language “at least 80 percent” to define the controlled group under Code section 1563(a) in lieu of the 50 percent default rule stated in Treasury Regulation section
1.409A-1(h)(3). 
 A Separation from Service is deemed to include a reasonably anticipated permanent reduction in the level of services
performed by an Employee, to less than 50 percent of the average level of services performed by the Employee during the immediately preceding 36-month period. 
  

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	2.31	SERP 

 “SERP” means the Supplemental
Executive Retirement Plan for Employees of The Boeing Company. 
  

	2.32	Service 

 “Service” means the
Participant’s years of service with the Company, determined in the same manner as the service time calculation under the Boeing Service Awards Program procedure, in completed whole years. 
  

	2.33	Specified Employee 

 “Specified Employee”
means an Employee who is a “specified employee” within the meaning of Code section 409A. Specified Employee status is determined on the last day of the prior Plan Year, to take effect as of April 1 of the Plan Year for a 12-month
period. Notwithstanding the foregoing, Specified Employees shall be determined by including the employees whom the Company reasonably determines to be the 75 top-paid officers of the Company rather than the 50 top-paid officers as provided under
Code section 416(i)(1)(A), to the extent permitted under Code section 409A. 
  

	2.34	Unforeseeable Emergency 

 “Unforeseeable
Emergency” means “unforeseeable emergency” within the meaning of Code section 409A, as determined by the Committee. 
  

	2.35	VIP 

 “VIP” means The Boeing Company
Voluntary Investment Plan. 
  

 6 

 ARTICLE III 
 Restoration Benefit 
 Eligibility and Benefits 
  

	3.1	Restoration Benefit Eligibility 

 An Employee is
eligible to participate in the Restoration Benefit program for a Plan Year if he or she satisfies each of the conditions described in (A)-(C) below: 
  

	 	(A)	The Employee is eligible to participate in the VIP during the Plan Year. 

  

	 	(B)	The Employee is, during the Plan Year, a salaried Employee of the Company who is not represented by a collective bargaining agent (or represented by a collective bargaining agent
where the terms of the collective bargaining agreement covering such Employee specifically provide for coverage under the Plan). 

  

	 	 (C)
	 As of October 1st of the prior Plan Year, the Employee’s Base Salary for the prior Plan Year equaled or exceeded the amount calculated as follows (rounded down to the nearest $1,000 increment): 

 The dollar limit imposed by section 415(c) of the Code for the prior Plan Year, divided by the percentage equal to the sum of (i), (ii), (iii) and
(iv), as applicable. 
  

	 	 (i)
	 The maximum percentage that an Employee can elect to contribute on a pre-tax or after-tax basis under the VIP, for the
prior Plan Year (or such other rate approved by the Committee by October 1st to take effect under the VIP as of the following January).

  

	 	 (ii)
	 The maximum percentage that an Employee can receive as an Employer Matching Contribution under the VIP, for the prior
Plan Year (or such other rate approved by the Committee by October 1st to take effect under the VIP as of the following January).

  

	 	 (iii)
	 The maximum percentage that the Employee can receive as a Company Contribution under the VIP, for the prior Plan Year
(or such other rate approved by the Committee by October 1st to take effect under the VIP as of the following January), based on the
Employee’s anticipated age at the end of the Plan Year of participation. 

  

	 	(iv)	Solely with regard to an Employee who actively participates in the Boeing Satellite Systems Retirement Plan (“BSS Plan”), the percentage of Participant Contributions made
under Exhibit A of the BSS Plan, for the prior Plan Year. 

  

 7 

 Example: To be eligible to participate in this Plan during 2010, the Employee’s Base Salary as of
October 1, 2009 must be at least $131,000 ($46,000/(25% + 6% + 4%) = $46,000/.35 = $131,428.57 rounded down). This figure is determined based on the following assumptions: 
  

	 	•	 	 The Code section 415(c) limit is $46,000 for the 2009 Plan Year. 

  

	 	•	 	 The maximum VIP employee contribution in 2009 is 25% of compensation. 

  

	 	•	 	 The maximum VIP Employer Matching Contribution in 2009 applicable to this Employee is 6%. 

  

	 	•	 	 The maximum Company Contribution under the VIP in 2009 is 4% of compensation (based on the participant’s anticipated attainment of age 40 during 2010).

 If the Employee in this example actively participates in the BSS
Plan, which requires a 3% employee contribution, his or her Base Salary as of October 1st must be at least $121,000 ($46,000/(25% + 6% + 4%+
3%) = $46,000/.38 = $121,052.63 rounded down). 
 Effective March 22, 2003, participants in the Boeing Satellite Systems Voluntary
Savings Plan (the “BSS Voluntary Savings Plan”) became eligible to participate in the VIP. Consequently, a former participant in the BSS Voluntary Savings Plan who met the eligibility requirements of this Plan as of March 22, 2003
became eligible for benefits under this Plan based upon his or her participation in the VIP. 
  

	3.2	Restoration Benefit Participation 

 An Eligible
Employee will become a Participant in the Restoration Benefit program when he or she elects to defer Compensation for a Plan Year, by executing and delivering a timely Deferral Election in accordance with subsections (A)-(C) below. Deferral
Contributions and Company Matching Contributions are described in Sections 3.3 and 3.4 below. 
 An Eligible Employee who receives a Company
Contribution under the VIP will also, to the extent eligible, become a Participant in the Restoration Benefit program when he or she elects to receive an SBP Company Contribution for a Plan Year, by executing and delivering a timely SBP Company
Contribution Election in accordance with subsections (A)-(C) below. SBP Company Contributions are described in section 3.5 below. 
  

	 	(A)	Elections  

 A Participant’s Deferral Election
or SBP Company Contribution Election must be executed and delivered to the Company in accordance with rules established by the Committee. 
  

 8 

	 	(B)	Timing of Elections 

 In general, the Deferral
Election or SBP Company Contribution Election must be filed during the election period established by the Committee. This election will become irrevocable as of the end of the election period, but in no event later than December 31 of the Plan
Year in which the election is made. Each election will apply solely to the Compensation payable in the succeeding Plan Year. Participants must execute a new Deferral Election to defer Compensation payable in each succeeding Plan Year. Participants
must execute a new SBP Company Contribution Election to receive an SBP Company Contribution payable in each succeeding Plan Year. 
 Elections generally may not be modified during the Plan Year. Likewise, an Employee eligible for any portion of the Restoration Benefit provided under this Article III remains subject to restrictions on mid-year contribution election
changes under the VIP, in accordance with the terms of the VIP. 
 See Section 3.7 for a limited exception to the general rule on the
irrevocability of Deferral Elections, in the event of Unforeseeable Emergency. 
  

	 	(C)	No Mid-Year Elections 

 An Employee who becomes an
Eligible Employee during the Plan Year (as a new hire, rehire or due to raise or promotion) will not be eligible to make Deferral Contributions or to receive SBP Company Contributions under the Restoration Benefit program during such Plan Year.

  

	3.3	Deferral Contributions 

 An Eligible Employee may
elect to defer a percentage of his or her Compensation otherwise payable by the Company for a Plan Year by executing and delivering a Deferral Election, as described in Section 3.2 above. This percentage is limited to the maximum percentage
described in Section 3.1(C)(i), as applicable to the Eligible Employee. 
 Deferrals will be made from the Participant’s
Compensation only to the extent that either: (i) Compensation for the applicable Plan Year exceeds the limitation under Code section 401(a)(17), as indexed, or (ii) the Participant’s annual additions under the VIP for the applicable
Plan Year reach the dollar limitation of Code section 415(c), as indexed. 
  

 9 

 Deferred Compensation will be credited to the Participant’s Account on the date the Compensation
would otherwise be payable, or as soon thereafter as administratively feasible. 
  

	3.4	Company Matching Contributions 

 A Participant in
the Restoration Benefit program who defers Compensation for a Plan Year under Section 3.3 will be credited with a Company Matching Contribution from the Company. This Company Matching Contribution will equal a percentage of the
Participant’s Deferral Contributions for the Plan Year, subject to a limit on the Participant’s Compensation from which Deferral Contributions are made under this Restoration Benefit program for the Plan Year. The relevant net percentage
will be limited to the maximum rate described in Section 3.1(C)(ii), as applicable to each Participant. 
 Company Matching Contributions
will be credited to the Participant’s Account on the date that the underlying Deferral Contribution is credited to the Participant’s Account. 
  

	3.5	SBP Company Contributions 

 An Eligible Employee who
receives a Company Contribution under Section 4.10(c) of the VIP may elect to receive an SBP Company Contribution for a Plan Year, if eligible, by executing and delivering an SBP Company Contribution Election, as described in Section 3.2
above. 
 The SBP Company Contribution (and the Company Contribution under Section 4.10(c) of the VIP) became effective as of
January 1, 2009. These benefits are available only to individuals “hired” on or after January 1, 2009, as defined in Section 4.10(c)(3) of the VIP. 
 The SBP Company Contribution will equal a percentage of the Participant’s Compensation during the applicable pay period, subject to the limitations
described below. The applicable percentage is determined by the Participant’s age at the end of the Plan Year. This SBP Company Contribution will be made by the Company on behalf of a Participant only to the extent that either: (i) the
Participant’s Compensation for the applicable Plan Year exceeds the limitation under Code section 401(a)(17), as indexed, or (ii) the Participant’s annual additions under the VIP for the applicable Plan Year reach the dollar
limitation of Code section 415(c), as indexed. 
  

	 	(i)	3%, for each eligible Participant under age 40, 

  

	 	(ii)	4%, for each eligible Participant age 40 to 49, 

  

 10 

	 	(iii)	5%, for each eligible Participant age 50 and over. 

 An SBP
Company Contribution will be credited to the Participant’s Account on the date the underlying Compensation is payable, or as soon thereafter as administratively feasible. 
 In no event will the SBP Company Contribution duplicate any Company Contribution made on a Participant’s behalf under the VIP. 
 To the extent an Employee is eligible to accrue benefits as an active participant under the SERP based on increases in his or her salary and/or service
during a Plan Year, he or she is ineligible to receive an SBP Company Contribution under this Plan for such Plan Year. This paragraph is not intended to preclude an SBP Company Contribution for an Employee whose SERP accruals are attributable solely
to interest credits or indexing on the underlying PVP benefit. 
  

	3.6	Vesting 

 A Participant’s interest in his or
her Account attributable to Restoration Benefits generally will be 100% vested at all times. 
 See Section 7.4 regarding missing
participants and improper credits and Section 10.3 regarding the unfunded nature of this Plan. 
  

	3.7	Cancellation of Deferral Election Due to Unforeseeable Emergency 

 Notwithstanding the election procedures described in Section 3.3, a Participant in the Restoration Benefit program will be permitted to cancel an existing Deferral Election with regard to a Plan Year during that
Plan Year, where the Participant incurs an Unforeseeable Emergency, as determined by the Committee. 
 To the extent that a Participant has
elected and received a distribution due to an Unforeseeable Emergency under Section 6.1(F), the Participant will be deemed to have elected to cancel his or her Deferral Election for the remainder of the applicable Plan Year. 
  

 11 

 ARTICLE IV 
 Executive Company Contribution 
 Eligibility and Benefits 
  

	4.1	Executive Company Contribution Eligibility 

 An
Employee is eligible to receive Executive Company Contributions for a Plan Year if he or she satisfies each of the conditions described in (A)-(C) below: 
  

	 	(A)	The Employee was hired or rehired on or after January 1, 2009 and is not eligible to accrue benefits under any defined benefit plan maintained by the Company.

 For purposes of determining eligibility for Executive Company Contributions, the term “hired” is defined in
Section 4.10(c)(3) of the VIP. 
  

	 	(B)	The Employee is eligible to receive a Company Contribution under the VIP during the Plan Year. 

  

	 	(C)	The Employee is entitled to payment of Incentive Compensation during the Plan Year. Incentive Compensation is not counted for this purpose if paid following the Employee’s
termination of employment from the Company. 

 To the extent an Employee is eligible to accrue benefits as an active participant
under the SERP based on increases in his or her salary and/or service during a Plan Year, he or she is ineligible to receive an Executive Company Contribution under this Plan for such Plan Year. This paragraph is not intended to preclude an
Executive Company Contribution for an Employee whose SERP accruals are attributable solely to interest credits or indexing on the underlying PVP benefit. 
  

	4.2	Executive Company Contribution Participation 

 An
Eligible Employee will become a Participant eligible to receive Executive Company Contributions on the date the Employee satisfies the eligibility conditions in Section 4.1. 
 A rehired Employee who previously participated in the Plan will become a Participant again on the date the Employee satisfies the eligibility conditions
again after rehire. 
  

	4.3	Executive Company Contribution Benefits 

 The
Executive Company Contribution will equal the applicable percentage of the Participant’s Incentive Compensation payable during the Plan Year. Incentive 

  

 12 

 
Compensation is not counted if paid following the Employee’s termination of employment from the Company. The applicable percentage is determined by the
Participant’s age at the end of the Plan Year as follows: 
  

	 	(A)	3%, for each eligible Participant under age 40, 

  

	 	(B)	4%, for each eligible Participant age 40 to 49, 

  

	 	(C)	5%, for each eligible Participant age 50 and over. 

 An
Executive Company Contribution will be credited to the Participant’s Account at the time the Incentive Compensation would otherwise be payable, or as soon thereafter as administratively feasible. 
 No Executive Company Contribution will be made before January 1, 2009. 
  

	4.4	Executive Company Contribution Vesting 

 A
Participant’s interest in his or her Account attributable to Executive Company Contributions generally will be 100% vested at all times. 
 See Section 7.4 regarding missing participants and improper credits, and Section 10.3 regarding the unfunded nature of this Plan. 
  

 13 

 ARTICLE V 
 DC SERP 
 Eligibility and Benefits 
  

	5.1	DC SERP Eligibility 

 An Employee is eligible to
participate in the DC SERP for a Plan Year if he or she satisfies each of the conditions described in both (A) and (B) below: 
  

	 	(A)	The Employee was hired or rehired on or after January 1, 2009 and is not eligible to accrue benefits under any defined benefit plan maintained by the Company.

 For purposes of determining eligibility for the DC SERP, the term “hired” is defined in Section 4.10(c)(3) of
the VIP, regardless of the date on which the Employee joins the E-Series Payroll. 
  

	 	(B)	The Employee was on the E-Series Payroll with a level of E-1 through E-3 during the Plan Year. 

 To the extent an Employee is eligible to accrue benefits as an active participant under the SERP based on increases in his or her salary and/or service
during a Plan Year, he or she is ineligible to receive a DC SERP Benefit under this Plan for such Plan Year. This paragraph is not intended to preclude a DC SERP Benefit for an Employee whose SERP accruals are attributable solely to interest credits
or indexing on the underlying PVP benefit. 
  

	5.2	DC SERP Participation 

 An Eligible Employee will
become a Participant in the DC SERP on the date the Employee satisfies the eligibility conditions in Section 5.1. 
 A rehired Employee
who previously participated in the Plan will become a Participant again on the date the Employee satisfies the eligibility conditions again after rehire. 
  

	5.3	DC SERP Benefits 

 Each Participant in the DC SERP
shall be entitled to benefits under this Plan as described below. No DC SERP benefit will accrue before January 1, 2009. 
  

	 	(A)	Annual Contributions  

 A Participant will receive
a DC SERP contribution equal to the applicable percentage of the sum of the Participant’s Compensation and Incentive Compensation, for each applicable pay period. The applicable percentage for a pay period is determined by the
Participant’s level as of this pay period as follows: 
  

	 	(i)	2%, for a Participant at level E-2 through E-3. 

  

 14 

	 	(ii)	4%, for a Participant at level E-1. 

 This amount will be
credited on the date such Compensation and Incentive Compensation would otherwise be payable, or as soon thereafter as administratively feasible. 
  

	 	(B)	One-Time Contribution 

 An Employee who satisfies
the requirements described in Section 5.1(A), and who is first promoted to a level of E-1 through E-3 (from a position at the Company below a level of E-3) during the Plan Year, will receive a one-time additional contribution equal to the
product of (i), (ii) and (iii) below. 
  

	 	(i)	2% 

  

	 	(ii)	The sum of: 

  

	 	(a)	the Participant’s Base Salary in effect immediately following the promotion, and 

  

	 	(b)	his or her Incentive Compensation target percentage multiplied by the Base Salary, both as in effect immediately following the promotion. 

	 	

	 	(iii)	The Participant’s years of Service as of the date of first promotion to a level of E-1 through E-3 (from a position at the Company below a level of E-3).

 This amount will be credited as of the date of first promotion to a level of E-1 through E-3, or as soon thereafter as
administratively feasible. 
 A Participant who has received a one-time contribution under this Section upon promotion to a level of E-1
through E-3 will be ineligible for any further contributions under this subsection (B). 
  

	5.4	DC SERP Vesting 

 No DC SERP Benefit shall be
payable to a Participant or Beneficiary except to the extent such Participant is vested in the DC SERP Benefit. 
  

 15 

	 	(A)	General DC SERP Vesting Rule  

 A Participant will
vest 100% in his or her DC SERP Benefit on the date the Participant satisfies the conditions in either (i), (ii) or (iii) below. 
  

	 	(i)	The Participant has been on the E-Series Payroll at a level of E-1 through E-3 for a period of 36 consecutive months. 

  

	 	(ii)	The Participant dies. 

  

	 	(iii)	The Participant is laid off from a position at level E-1 through E-3 and is eligible for benefits under The Boeing Company Executive Layoff Benefits Plan. 

See (B) below for additional vesting rules for certain Participants. 
  

	 	(B)	Special Vesting Rules for Participants with 55/10 or 62/1 

 Special vesting rules apply for a Participant who has attained either (i) or (ii) while employed by the Company. 
  

	 	(i)	Age 55 with 10 years of Service 

  

	 	(ii)	Age 62 with one year of Service 

 This Participant will be
100% vested in the portion of his or her DC SERP Benefit described in Section 5.3(A) (Annual Contributions) after he or she has been on the E-Series Payroll for a period of 36 consecutive months. 
 This Participant will vest ratably in the portion of his or her DC SERP Benefit described in
Section 5.3(B) (One-Time Contribution). Upon Separation from Service, or upon completion of 36 consecutive months on the E-Series Payroll at a level of E-1 through E-3 if earlier, the Participant’s vesting will be determined at a rate of
 1/36 for each consecutive month on the E-Series Payroll at a level of E-1 through E-3. This pro rata vesting rule is not
intended to preclude the acceleration of vesting under subsections (A)(ii) (death) or (iii) (layoff) above. 
  

	 	(C)	Authorized Period of Absence 

 For purposes of this
Section, an Authorized Period of Absence from the E-Series Payroll will count as a period on the E-Series Payroll, and an Authorized Period of Absence from a position at level E-1 through E-3 will count as a period at these levels. 
 If an Employee ceases to be at the applicable level for any reason other 

  

 16 

 
than an Authorized Period of Absence, and the Employee later returns to a position at the applicable level, these non-consecutive periods of service will not
be aggregated for purposes of determining whether the 36-consecutive month requirement has been met. 
  

	 	(D)	Transfers to and from ULA and USA 

 For purposes of
computing vesting for a Participant who transfers employment directly from the Company to ULA or USA, uninterrupted service at ULA or USA as an executive in a position at a comparable level will be credited toward the 36 consecutive months
requirements described herein, provided that the Participant transfers directly from the E-Series Payroll (or a position at level E-1 through E-3 if applicable) at the Company to comparable executive status at ULA or USA, as applicable. ULA and USA
service will not be credited toward vesting under this Plan for any period following the Participant’s removal from this executive status. For purposes of computing vesting for a participant who transfers employment directly from ULA or USA to
the Company, uninterrupted service at ULA or USA as an executive at a position comparable to the E-Series Payroll (or a position at level E-1 through E-3, if applicable) will be credited toward the 36 consecutive months requirements described
herein, provided that the Participant transfers directly from this executive status at ULA or USA to a position at a comparable level at the Company. ULA and USA service will not be credited toward vesting under this Plan for any period prior to the
Participant’s attainment of this executive status at ULA or USA, as applicable. 
  

	 	(E)	Impact of Separation from Service 

 If a
Participant retires or Separates from Service (other than a deemed Separation from Service due to an Authorized Period of Absence) before becoming 100% vested in the DC SERP Benefit, the Participant will forfeit all rights to the nonvested
portion of the DC SERP Benefit attributable to the period prior to this Separation from Service. To the extent any benefit under this Plan becomes vested during an Authorized Period of Absence that constitutes a deemed Separation from Service, it
will remain subject to the payment timing rules under Section 6.1. 
 If a Participant Separates from Service after becoming partially
vested in the one-time contribution portion of the DC SERP Benefit, under subsection (B) above, and the Participant is subsequently rehired or returns from an Authorized Period of Absence, the DC SERP Benefit accrued after rehire or return will
not be vested until the Participant satisfies the requirements of subsection (A) or (B) above following rehire or return. 
  

 17 

 If a Participant Separates from Service after becoming 100% vested in the DC SERP Benefit, and
the Participant is subsequently rehired or returns from an Authorized Period of Absence, the DC SERP Benefit accrued after rehire and return will be 100% vested (even if the Participant fails to be at the applicable pay level for 36 consecutive
months following rehire or return). 
 See Section 7.4 regarding missing participants and improper credits, and Section 10.3
regarding the unfunded nature of this Plan. 
  

	5.5	DC SERP Forfeiture Rules 

 The Committee may
determine, in its sole discretion, that a Participant will forfeit any part or all of his or her DC SERP Benefit (whether or not vested) if any of the following circumstances occur while employed by the Company or within five (5) years after
termination of such employment: 
  

	 	(A)	The Participant is convicted of a felony involving theft, fraud, embezzlement, or other similar unlawful acts against the Company or against the Company’s interests. For
purposes of this Plan, “other similar unlawful acts against the Company or against the Company’s interests” shall include any other unlawful act (i) committed against the Company, or the interests of the Company, including, but
not limited to, a governmental agency or instrumentality which conducts business with the Company, or a customer of the Company, or (ii) affecting the Company or the interests of the Company, in such a manner that is determined to be
detrimental to, prejudicial to or in conflict with the Company or the interests of the Company, as determined by the Committee in its sole discretion. 

  

	 	(B)	The Participant, directly or indirectly, engages in any activity, whether individually or as an employee, consultant or otherwise, which the Committee determines, in its sole
discretion, to be an activity in which the Participant is “engaging in competition” with any significant aspect of Company business. For purposes of this Plan, “engaging in competition” shall include but is not limited to
representing, providing services to, or being an employee of or associated in a business capacity, any person or entity that is engaged, directly or indirectly, in competition with any Company business or that takes a position adverse to any Company
business, regardless of the position or duties the Participant takes, in such a manner that is determined to be detrimental to, prejudicial to or in conflict with the interests of the Company, all as determined by the Committee in its sole
discretion. 

  

	 	(C)	 The Participant, without the advance approval of the Company’s Senior Vice President, Human Resources and Administration, induces or attempts to induce,
directly or indirectly, any of the Company’s employees, 

  

 18 

	 	 
representatives or consultants to terminate, discontinue or cease working with or for the Company, or to breach any contract with the Company, in order to
work with or for, or enter into a contract with, the Participant or any third party. 

  

	 	(D)	The Participant disparages or otherwise makes any statements about the Company, its products, or its employees that could be in any way viewed as negative or critical. Nothing in
this paragraph will apply to legally protected statements to government agencies or statements made in the course of sworn testimony in administrative, judicial, or arbitral proceedings. 

 To the extent the Participant has already received or commenced payment of his or her DC SERP benefit, the Committee will be entitled to pursue any and
all legal and equitable relief against the Participant to enforce the forfeiture of and recover such DC SERP benefit. The forfeiture provisions will continue to apply unless and to the extent modified by a court of competent jurisdiction. However,
if any portion of these forfeiture provisions is held by such a court to be unenforceable, these provisions shall be deemed amended to limit their scope to the broadest scope that such authority determines is enforceable, and as so amended shall
continue in effect. 
 In addition, the Committee will, in all appropriate circumstances, require reimbursement of any DC SERP Benefit
attributable to an incentive award that the Company seeks to recover under the Clawback Policy provision of any plan providing Incentive Compensation. 
  

 19 

 ARTICLE VI 
 Distributions 
  

	6.1	Form and Timing of Distribution 

  

	 	(A)	General Rule 

 A Participant may elect the form and
timing of distribution with regard to his or her Restoration Benefit (including future Deferral Contributions, Company Matching Contributions, SBP Company Contributions, and Earnings Credits thereon) as described below, subject to the cashout rule
in subsection (B) below. This distribution election must be made at the same time the Participant makes his or her Deferral Election (or SBP Company Contribution Election, if earlier). Any election made as to the form and timing of distribution
will apply to the Participant’s entire Restoration Benefit (including Deferral Contributions, Company Matching Contributions, any SBP Company Contributions, and Earnings Credits thereon). 
 No elections are required with regard to a Participant’s Executive Company Contribution or DC SERP Benefit. The form and timing of distribution with
regard to these benefits is described in the deemed election rules below. 
 Distribution elections and deemed elections made with regard to
a Participant’s entire Account may be changed solely to the extent permitted under subsection (C) below. 
  

	 	(i)	Lump Sum Distribution 

 The lump sum distribution
option is a single lump sum payable in January of any Plan Year following the Participant’s Separation from Service. The amount of such distribution will be based on the value of the Participant’s Account determined as of the date of
payment. 
 Payment of the Participant’s Restoration Benefit in the form of a lump sum will be made the later of: (i) January of
the first Plan Year following Separation from Service, or (ii) January of the first Plan Year following the Participant’s attainment of a specified age (subject to (D) below), as elected by the Participant under this Section 6.1.

 A Participant will be deemed to have elected to receive his or her Executive Company Contribution and DC SERP Benefit in a lump sum, in
January of the first Plan Year following Separation from Service, subject to any changes made by the Participant in Section 6.1(C). 
  

 20 

	 	(ii)	Installment Payment 

 The installment payment
option is a series of annual installment payments for a period between 2 and 15 years. The amount payable to the Participant each year generally shall be computed by multiplying the balance in the Account (or the applicable portion of the Account)
by a fraction, the numerator of which is one and the denominator of which is the number of years remaining in the distribution period on the first day of January of such year. See Section 6.1(B) below for application of the cashout rule to
installment payments. 
 Annual installment payments of the Restoration Benefit, if elected, will begin the later of: (i) January of the
first Plan Year following Separation from Service, or (ii) January of the first Plan Year following the Participant’s attainment of a specified age (subject to (D) below), as elected by the Participant under this Section 6.1.
Payments will continue until the full balance of the Participant’s Restoration Benefit has been paid. 
 The Plan will respect previous
distribution elections made by certain Participants who are former participants in the Boeing Satellite Systems Salaried Employees’ Excess Benefit Plan (“BSS Excess Plan”). For these Participants, any distribution election made prior
to April 4, 2003 under section 3(b)(5) of the BSS Excess Plan will apply, unless the Participant elects otherwise under this Article V. 
 In the event that no distribution option is elected with regard to the Restoration Benefit, the Participant will be deemed to have elected to receive a single lump sum payable in January of the first Plan Year following the
Participant’s Separation from Service. 
  

	 	(B)	Cashouts 

 Notwithstanding the foregoing, the
following rules shall apply, subject to the six-month delay in payment for Specified Employees under (E): 
  

	 	(i)	If the balance in the Participant’s Account is $10,000 or less in January of the first Plan Year following Separation from Service, the entire balance will be paid in the form
of a single lump sum at that time. 

  

 21 

	 	(ii)	If a Participant has elected to receive installments and his or her remaining Account balance is $10,000 or less upon any scheduled payment date, the entire remaining balance will
be paid in the form of a single lump sum at that time. This paragraph (ii) will not apply to any Participant whose installment payments commenced prior to January 1, 2008. 

  

	 	(C)	Changes to Distribution Election or Deemed Election 

 Effective January 1, 2008, a Participant may change a distribution election (or deemed
election) with regard to his or her entire Restoration Benefit only once after the initial distribution election is made, in accordance with the conditions stated below. Effective January 1, 2009, a Participant also may change his or her deemed
distribution election once with regard to his or her combined DC SERP Benefit and Executive Company Contributions (if any), in accordance with the conditions stated below. To the extent any such changes would defer commencement of any portion of the
Participant’s Account beyond both age 70 1/2 and Separation from Service, the changes will not be effective with respect to
such portion. 
  

	 	(i)	A new distribution election must be submitted to the Committee at least 12 months before the existing scheduled distribution date, and during the annual election period established
by the Committee. 

  

	 	(ii)	The revised distribution election must not take effect for at least 12 months after it is made. 

  

	 	(iii)	The new distribution election must provide for an additional deferral period of at least 5 years beyond the original distribution date. 

 In no event can installment payments be revoked once they have begun. 
 Prior to January 1, 2008, a Participant may change a distribution election with regard to his or her entire Account, in accordance with procedures established by the Committee, without the restrictions stated in
(i)-(iii) above. Any changes made under this paragraph will be invalid to the extent they affect distributions scheduled for the Plan Year in which the change is made. 
 Limited Exception for 2008. In allowable circumstances (as determined by the Company’s Senior Vice President, Human Resources and
Administration), a Participant will have a limited ability during the 2008 Plan Year to change his or her distribution election without the restrictions stated in (i)-(iii) above, subject to approval by the Company’s Senior Vice President,
Human Resources and Administration, in his or her sole discretion. In no event will an election under this paragraph cause an 

  

 22 

 
amount to be paid during the 2008 Plan Year, if it would otherwise be payable in a later Plan Year. Nor will an election under this paragraph defer a payment
beyond the 2008 Plan Year, if it would otherwise be payable during the 2008 Plan Year. 
  

	 	 (D)
	 Distributions At Age 70 1/2 

 Payment of benefits under this Plan will begin not later than the first January following the calendar year in which the Participant both attains (or would have attained) age 70 1/2 and is Separated from Service. Payment of benefits for Participants actively employed beyond age 70  1/2 will begin no later than the first January following the calendar year in which the Participant Separates from Service. In the
event that no distribution option is elected under (A) above, the Participant will be deemed to have elected to receive a single lump sum distribution. 
  

	 	(E)	Specified Employees  

 Notwithstanding anything to
the contrary under this Article VI, a Specified Employee will not receive any distribution under this Plan during the six-month period immediately following his or her Separation from Service. 
 The Account of a Specified Employee will be distributed in the form elected under subsection (A) above. This distribution will commence as of the
later of: 
  

	 	(i)	the time elected under subsection (A), 

  

	 	(ii)	the first day of the month following completion of the six-month waiting period (for Specified Employees who Separate from Service between July 1 and December 31), and

  

	 	(iii)	January of the first Plan Year following Separation from Service (for Specified Employees who Separate from Service between January 1 and June 30).

 If a Participant has elected installments under (A) above, subsequent installment payments will be made in January of
each successive year until the Account is exhausted. 
 In the event of a Specified Employee’s death during the six-month waiting
period, the waiting period will cease to apply. The Specified Employee’s benefits will be distributed in accordance with Section 6.2 (Death Benefits) below. 
  

 23 

	 	(F)	Distribution Due to Unforeseeable Emergency 

 A
Participant or Beneficiary may elect to receive a distribution of all or a portion of his or her Restoration Benefit and his or her Executive Company Contribution benefit immediately, regardless of whether benefit payments have commenced, to the
extent that the Participant or Beneficiary incurs an Unforeseeable Emergency. A Participant or Beneficiary may not receive a distribution of his or her DC SERP Benefit solely in the event of an Unforeseeable Emergency, even if fully vested.

 The amount of the distribution will be limited to the amount reasonably necessary to satisfy the emergency need, including any taxes or
penalties reasonably anticipated to result from the distribution, as determined by the Committee. 
  

	6.2	Death Benefits 

 If a Participant dies before his or
her entire Restoration Benefit has been distributed, the remaining Restoration Benefit will be distributed to his or her Beneficiary in accordance with the Participant’s election as to form and timing filed with the Committee with regard to the
Restoration Benefit. Distributions to the Beneficiary will be made at the same time and in the same form as the payment that otherwise would have been made to the Participant. To the extent no distribution election has been filed with regard to the
Restoration Benefit, the remaining Restoration Benefit will be paid to the Beneficiary in a single sum in January of the calendar year following the Participant’s death. 
 If a Participant dies before his or her entire Executive Company Contribution benefit and his or her entire DC SERP Benefit have been distributed, the
remaining benefits will be paid to his or her Beneficiary in accordance with any change to the form and timing of payment elected by the Participant under Section 6.1(C) with regard to the Executive Company Contribution and the DC SERP Benefit.
If no change has been elected, the remaining benefits will be distributed to the Participant’s Beneficiary in a single sum in January of the calendar year following the Participant’s death. 
  

	6.3	Rehires 

 This Section 6.3 addresses the form
and timing of payment for a Participant who rehires to the Company following a Separation from Service. For purposes of this Section 6.3, a rehire includes a Participant who returns to the Company following a Separation from Service that is
deemed to occur under Code section 409A due to an Authorized Period of Absence or a period of a reduced level of services. 
 In the event
that a Participant forfeits a nonvested DC SERP Benefit upon a Separation from Service, this benefit will not be restored upon rehire. This rule applies regardless of whether the Participant satisfies the vesting criteria under Section 5.4
following rehire. 
  

 24 

	 	(A)	Participants Rehired After Commencing Benefits 

 This subsection (A) applies to a rehired Participant who has received or begun receiving benefits under the Plan because he or she has experienced a Separation from Service and has attained the specified age (if applicable).

 Old Benefits. Installment payments that commenced prior to the Participant’s rehire with respect to Deferral Contributions
made and contributions received before the Participant’s Separation from Service (“Old Benefits”) will not be suspended by reason of the Participant’s rehire. These Old Benefits will continue to be paid until exhausted, without
regard to the period of rehire. 
 Interim Benefits. To the extent a Participant made additional Deferral Contributions or received
additional contributions while on an Authorized Period of Absence or during a period of a reduced level of services that constituted a deemed Separation from Service under Code section 409A, such Deferral Contributions made and contributions
received (to the extent vested) will be distributed in January of the first Plan Year following the year in which they are made, in accordance with the Participant’s earlier distribution election or deemed election. This is because the
Participant has already satisfied the conditions for payment under Section 6.1(A); namely, he or she has attained the specified age and has experienced a Separation from Service attributable to such Deferral Contributions made and contributions
received. 
 The same rule will apply where the portion of a Participant’s DC SERP Benefit attributable to one-time contributions vests
ratably during an Authorized Period of Absence, under Sections 5.4(B) and (C). Such newly vested benefits will be distributed in January of the first Plan Year following the year in which they vest, in accordance with the Participant’s earlier
distribution election or deemed election. 
 New Benefits. Deferral Contributions made and contributions received attributable to
periods after the date of rehire (“New Benefits”) will remain subject to the Participant’s earlier distribution election or deemed election as to the timing and form of payment under Section 6.1(A) (subject to the change rules in
Section 6.1(C)), without regard to any Separation from Service that occurred prior to rehire. As a result, New Benefits (to the extent vested) will be distributed in January following the Participant’s Separation from Service after
rehire, in the form selected under the original distribution election or deemed election. This is because 

  

 25 

 
the Participant already has attained the specified age under Section 6.1(A) but has not yet experienced a Separation from Service attributable to the
New Benefits. 
  

	 	(B)	Participants Rehired Before Commencing Benefits 

 This subsection (B) applies to a rehired Participant who has not begun receiving benefits under the Plan because he or she has not attained the specified age under Section 6.1(A). 
 Old and Interim Benefits. The rehired Participant’s Old Benefits (and any Deferral Contributions made or contributions received during an
Authorized Period of Absence or a period of a reduced level of services, and any DC SERP one-time contributions vested during such period), to the extent vested, will be distributed in accordance with the Participant’s earlier distribution
election or deemed election as to the timing and form of payment under Section 6.1(A) (subject to the change rules in Section 6.1(C)). This means that, for example, if the Participant’s original distribution election selected benefits
in the form of a lump sum (or installments) payable in January following attainment of a specified age under Section 6.1(A), then the Participant’s Old Benefits (and any Deferral Contributions made and contributions received during an
Authorized Period of Absence or a period of a reduced level of services, and any DC SERP one-time contributions vested during such period), to the extent vested, will be payable as a lump sum (or installments, if so elected) in January following the
year in which he or she attains the specified age, even if the Participant has not had a subsequent Separation from Service after rehire. This result will not change in the event that the Participant attains the specified age after the initial
Separation from Service (or while on Authorized Period of Absence or during a period of a reduced level of services), but is rehired before benefits actually begin. 
 New Benefits. The Participant’s New Benefits will remain subject to the Participant’s earlier distribution election or deemed election as to the timing and form of payment under Section 6.1(A)
(subject to the change rules in Section 6.1(C)), without regard to any Separation from Service that occurred prior to rehire, as described in Section 6.3(A) above. As a result, New Benefits (to the extent vested) will be distributed either
(i) in January following the Participant’s Separation from Service after rehire, or (ii) in January following both the Participant’s Separation from Service after rehire and after attainment of the specified age, in
accordance with the original distribution election or deemed election. This is because the Participant has not yet experienced a Separation from Service attributable to the New Benefits. 
  

 26 

 ARTICLE VII 
 Accounts 
  

	7.1	Participant Accounts 

 The Committee will establish
and maintain an Account for each Participant, for each period of employment. Solely for this purpose, a period of employment will be treated as commencing upon a Participant’s eligibility for the Plan (following hire or rehire as applicable)
and ending with his or her Separation from Service. 
 Each Account will be credited with Deferral Contributions and Company Matching
Contributions, SBP Company Contributions, Executive Company Contributions, and DC SERP Benefits, as applicable for the relevant period of employment, as well as Earnings Credits described in Section 7.2 below. Each Account will be reduced as
payments are made. 
 For Heritage BSS Participants, the Accounts shall also include any account as of April 3, 2003 under the BSS Excess
Plan, as adjusted after April 3, 2003 for earnings, losses and expenses. As of April 4, 2003, all accounts of Heritage BSS Participants under the BSS Excess Plan were transferred to this Plan. For purposes of this Section, “Heritage
BSS Participant” means any Participant in this Plan having a prior benefit under the BSS Excess Plan based on his or her participation in the BSS Voluntary Savings Plan. 
  

	7.2	Earnings Credits 

 For periods prior to
January 1, 2009, a Participant’s Accounts will be credited with earnings under the Interest Fund Method described in (A) below. 
 For periods on or after January 1, 2009, a Participant’s Accounts will be credited, at the Participant’s election, with earnings under either: (i) the Interest Fund Method, (ii) the Boeing Stock Fund method, or
(iii) the Other Investment Funds method, each as described below. In the absence of an election the Interest Fund method will be used. A Participant may elect a different earnings method as to each Account. 
  

	 	(A)	Interest Fund Method 

 Under the Interest Fund
Method for periods prior to January 1, 2009, a Participant’s Accounts will be adjusted each month in accordance with changes in the unit value of the Accounts to reflect interest, as of the first business day of that month. Interest will
be calculated based on the value of the Accounts as of the last day of the preceding month. 
 For periods on or after January 1, 2009,
a Participant’s Accounts will be adjusted daily in accordance with changes in the unit value of the Accounts to reflect interest, based on the Participant’s Account balance. 
  

 27 

 Interest will be calculated for each Plan Year as
the mean between the high and low (during the first eleven months of the preceding Plan Year) of yields on AA-rated industrial bonds as reported by Moody’s Investors Service, Inc., rounded to the nearest  1/4th of one percent. The Company
will notify Participants annually of the established interest rate. 
  

	 	(B)	Boeing Stock Fund Method  

 For periods on or after
January 1, 2009, under the Boeing Stock Fund method, a Participant’s Boeing Stock Fund Account shall be credited with the number of shares of the Company’s common stock that could be purchased with the amount credited to such account,
based on the Fair Market Value of the Company’s common stock on the day the account is so credited (or on the next business day on which the New York Stock Exchange (the “Exchange”) is open, if the Exchange is closed on the day the
account is credited) excluding commissions, taxes, and other charges. Such number shall be recorded as stock units in the Participant’s account, for bookkeeping purposes only. For purposes of the Plan, “Fair Market Value” means the
mean of the high and low per share trading prices for the common stock of the Company as reported for the “New York Stock Exchange—Composite Transactions” for a single trading day. The number of stock units in an account shall be
appropriately adjusted to reflect stock splits, stock dividends, and other like adjustments in the Company’s common stock. 
 Each
Participant’s Boeing Stock Fund Account periodically shall be credited with the number of shares of the Company’s common stock that could be purchased, as set forth in the preceding paragraph, with an amount equal to the cash dividends
that would be payable on the number of shares of the Company’s common stock that equals the number of stock units in a Participant’s Boeing Stock Fund Account. The Company will notify Participants annually of the number of stock units, and
the dividend equivalents, credited to their Boeing Stock Fund Account. 
  

	 	(C)	Other Investment Funds Method  

 For periods on or
after January 1, 2009, in addition to the Interest Fund method and Boeing Stock Fund method of allocating earnings, a Participant may choose to diversify each of his or her Accounts by electing that it be credited (or charged) with the
expenses, income, gains and losses on investment funds similar to those offered under the VIP (excluding the Boeing Stock Fund and Stable Value Fund offered thereunder) as designated by the Committee from time to time, pursuant to an election by the
Participant to have the Participant’s Account credited as though the Participant had elected to invest in such funds in such 

  

 28 

 
increments as the Participant will direct in accordance with rules to be established by the Committee or its delegates; provided that the Committee may
disregard such elections in its discretion. 
  

	7.3	Investment Election Changes and Restrictions 

 For
periods on or after January 1, 2009, a Participant may change how future additions to his or her Accounts are invested anytime during the Plan Year. The Participant may also transfer any portion of his or her Accounts from one fund to another
on a daily basis, provided that a Participant may not transfer funds from one investment fund to another and back on the same day. 
 In
addition, transfers cannot be made into the Boeing Stock Fund for 30 calendar days after transferring funds out of the Boeing Stock Fund. This restriction applies regardless of the number of units or the dollar value of the transfer. However, the
Participant may continue to direct future additions into the Boeing Stock Fund and make transfers out of this fund at any time, subject to insider trading rules. 
  

	7.4	Missing Participants and Improper Credits 

 A
Participant’s Account may be forfeited or reduced in the event of one of the following events, even if 100% vested: 
  

	 	(i)	The Committee is unable to locate a Participant or Beneficiary to distribute amounts from his or her Account (a “missing participant”). 

  

	 	(ii)	The Committee recaptures amounts improperly credited to a Participant’s Account. 

 See Section 10.3 regarding the unfunded nature of this Plan. 
  

 29 

 ARTICLE VIII 
 Administration 
  

	8.1	Plan Administration 

 The Plan shall be administered
by the Committee. The Committee shall make such rules, interpretations, determinations of fact and computations as it may deem appropriate. Any decision of the Committee with respect to the Plan, including (without limitation) any determination of
eligibility to participate in the Plan and any calculation of plan benefits, shall be conclusive and binding on all persons. The Committee shall submit to the Compensation Committee of the Board of Directors periodic reports covering the operation
of the Plan. 
  

	8.2	Claims Procedure 

 The procedures for making claims
for benefits under the Plan and for having the denial of a benefits claim reviewed shall be the same as those procedures set forth in the VIP. 
  

 30 

 ARTICLE IX 
 Amendment and Termination 
 The Board of Directors of The Boeing Company shall have the authority to amend or
terminate the Plan at any time. The Board of Directors may delegate its authority to amend the Plan at any time, in its sole discretion. In the event of Plan amendment or termination, a Participant’s benefits under the Plan shall not be less
than the Plan benefits to which the Participant would be entitled if the Participant had terminated employment immediately prior to such amendment or termination of the Plan. 
 In general, upon the termination of the Plan with respect to any Participant, the affected Participants will not be entitled to receive a distribution until the time specified in Article VI. Notwithstanding the
foregoing, The Boeing Company may, in its discretion, terminate the entire Plan and pay each Participant a single lump-sum distribution of his or her entire accrued benefit to the extent permitted under conditions set forth in Code section 409A and
any IRS or Treasury guidance thereunder. 
  

 31 

 ARTICLE X 
 Miscellaneous 
  

	10.1	No Employment Rights 

 Nothing in the Plan shall be
deemed to give any person any right to remain in the employ of the Company or affect any right of the Company to terminate a person’s employment with or without cause. 
  

	10.2	Anti-Assignment 

 No benefit under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, execution, attachment, garnishment, or any other legal process. Any attempt to take such action shall be void and shall authorize the
Committee, in its sole and absolute discretion, to forfeit all further right and interest in any benefit under this Plan. In addition, a Participant’s Account may be reduced by the amount of any tax obligation paid by the Company on behalf of a
Participant or surviving spouse, if the Participant or surviving spouse fails to reimburse the Company for such obligation. 
  

	10.3	Unfunded Status of Plan 

 No funds shall be
segregated or earmarked for any current or former participant, Beneficiary or other person under the Plan. However, the Company may establish one or more trusts to assist in meeting its obligations under the Plan, the assets of which shall be
subject to the claims of the Company’s general creditors. No current or former Participant, Beneficiary or other person, individually or as a member of a group, shall have any right, title or interest in any account, fund, grantor trust, or any
asset that may be acquired by the Company in respect of its obligations under the Plan (other than as a general creditor of the Company with an unsecured claim against its general assets). 
  

	10.4	Delays in Payment 

 Payment of benefits under this
Plan may be delayed to the extent permitted by Code section 409A, as determined by the Committee. 
  

	10.5	Involuntary Inclusion in Income 

 If a determination
is made that the Account of any Participant (or his or her Beneficiary) is subject to current income taxation under Code section 409A, then the taxable portion of such Account will be immediately distributed to the Participant (or his or her
Beneficiary), notwithstanding the general timing rules described in Article V above. 
  

 32 

	10.6	Compliance With Code Section 409A 

 It is
intended that amounts deferred under this Plan will not be taxable under section 409A of the Code with respect to any individual. All provisions of this Plan shall be construed in a manner consistent with this intent. 
  

	10.7	Construction 

 The validity of the Plan or any of
its provisions will be determined under and will be construed according to federal law and, to the extent permissible, according to the internal laws of the state of Illinois. If any provision of the Plan is held illegal or invalid for any reason,
such determination will not affect the remaining provisions of the Plan and the Plan will be construed and enforced as if said illegal or invalid provision had never been included. 
  

	10.8	Legal Action 

 No legal action may be brought in
court on a claim for benefits under the Plan after 180 days following the decision on appeal (or 180 days following the expiration of the time to make an appeal if no appeal is made). 
  

 33 

 APPENDIX A 
 Boeing Satellite Systems 
 Salaried Employees’ Excess Benefit Plan

  

	I.	PURPOSE. 

 In July 1998, Hughes Space and Communications
Company, Hughes Electron Dynamics, Inc. and Spectrolab, Inc. (“Hughes”) adopted a special appendix (the “Hughes Appendix”) to the Hughes Excess Plan. Individuals affected by the Hughes Appendix are referred to in this Special
Appendix as “Hughes Participants”. 
 That Hughes Appendix was adopted to provide certain Hughes Participants whose benefits from
the Hughes Retirement Plan were initially miscalculated an election to receive alternative benefits. These benefits are referred to as the “Substitute Benefit”. 
 The initial miscalculation for these Hughes Participants was the subject of a filing with the Internal Revenue Service under the Voluntary Compliance Resolution (“VCR”) program on August 22, 1997. On
January 28, 1998, the Internal Revenue Service issued a compliance statement concerning the VCR application. Under the compliance statement, Hughes corrected the miscalculation by reducing the benefits payable to the affected Hughes
Participants under the Hughes Retirement Plan from the initially calculated amount. Under the correction approved by the IRS in the VCR application, payments under the Hughes Retirement Plan would continue at the monthly amount originally scheduled
under the initial calculation. When the actuarial equivalent value of a Hughes Participant’s benefits paid under the Hughes Retirement Plan reaches the maximum limit imposed by section 415 of the Code, then the remaining payments to the Hughes
Participant will be made under the Hughes Excess Plan. The benefits which were originally scheduled for payment under the Hughes Retirement Plan under the initial calculation, but which will instead be paid pursuant to the Hughes Excess Plan after
the maximum limit of section 415 has been reached, are referred to in this Appendix as the “Reclassified Payments.” Benefits paid under the Hughes Retirement Plan are not considered Reclassified Payments, even if the payments exceeded the
limits of section 415 of the Code and therefore are not afforded the tax treatment (including the ability to elect a rollover) afforded to qualified plan payments. 
 As a result of the initial miscalculation, some benefit payments from the Hughes Retirement Plan which Hughes Participants rolled over into their individual retirement accounts were withdrawn to avoid or minimize
excise taxes (“Required IRA Withdrawals”). Hughes Participants who made Required IRA Withdrawals were entitled to elect the Substitute Benefit. 
  

 34 

 Furthermore, certain Hughes Participants received payments from the Hughes Retirement Plan in 1998 which
were in excess of the maximum benefit allowed by Code section 415 under the method of calculating the maximum benefit as described in the VCR application (“1998 Excess Payments”). Such Hughes Participants were entitled to elect the
Substitute Benefit. 
 In addition, under their original benefit elections, certain Hughes Participants were scheduled to have received
Reclassified Payments which were not yet paid as of July 31, 1999. Such Hughes Participants were entitled to elect the Substitute Benefit. 
 Under the Hughes Appendix, each affected Hughes Participant was given an election to be paid the Substitute Benefit. In order to elect the Substitute Benefit, a Hughes Participant must have signed and delivered to Hughes a written release
in the form and manner acceptable to Hughes. The Substitute Benefit was provided in consideration for the Hughes Participant’s agreement, made pursuant to the release, to forego legal action against Hughes and the other persons specified in the
release. 
 This Special Appendix is intended to provide the unpaid balance of the Substitute Benefit to Hughes Participants who are Acquired
Hughes Participants. Only Acquired Hughes Participants are affected by this Special Appendix to the Plan. 
 Effective as of April 4,
2003, this Appendix A was transferred in its entirety from the Boeing Satellite Systems Salaried Employees’ Excess Benefit Plan to the Plan. 
  

	II.	ELECTION AND CALCULATION OF SUBSTITUTE BENEFIT. 

  

	 	A.2.1	Election of Substitute Benefit. 

 The following
Hughes Participants were provided an opportunity to elect the Substitute Benefit: (1) Hughes Participants for whom Reclassified Payments were to be made on or after August 1, 1998, (2) Hughes Participants who received 1998 Excess
Payments, and (3) Hughes Participants who made Required IRA Withdrawals. The election of the Substitute Benefit was made in the time and manner prescribed by Hughes. The election must have specified the date on which the Hughes Participant
elected to commence payment of the Substitute Benefit, which must have been a date which was the first through fifteenth anniversary of the Hughes Participant’s “Deferral Start Date.” The Deferral Start Date for a Hughes Participant
is the later of (x) August 1, 1998, or (y) the day as of which the initial Reclassified Payment would have been scheduled for payment to the Hughes Participant, but for the election to receive the Substitute Benefit. The election must
have specified whether the Hughes 

  

 35 

 
Participant elected payment in a single installment, two substantially equal annual installments, or five substantially equal annual installments. The
election must have been accompanied by a properly executed release acceptable to Hughes. If a Hughes Participant did not effectively elect the Substitute Benefit, then the Hughes Participant’s remaining Reclassified Payments (if any) would be
made to the Hughes Participant pursuant to the general provisions in the Hughes Excess Plan applicable to payments attributable to the Hughes Retirement Plan, as contemplated in the VCR application. 
 Any election described above by an Acquired Hughes Participant will continue to apply under this Special Appendix. Any Acquired Hughes Participant who
did not make an effective election will continue to have his or her remaining Reclassified Payments (if any) made pursuant to the general provisions in the Plan (as successor to the Hughes Excess Plan) applicable to payments attributable to the
Retirement Plan (as successor to the Hughes Retirement Plan), as contemplated in the VCR application. 
  

	 	A.2.2	Calculation of Substitute Benefit. 

 If a Hughes
Participant elected the Substitute Benefit, then in lieu of payment from the generally applicable provisions of the Hughes Excess Plan of the Hughes Participant’s remaining Reclassified Payments (if any), the Substitute Benefit became payable.
The Substitute Benefit was the amount credited to the Hughes Participant’s Hughes Account, calculated as described in Section A.2.4(a) of this Appendix. 
  

	 	A.2.3	Definitions. 

  

	 	a.	Suspended Payments. 

 Certain Hughes Participants
elected a short-term deferral of Reclassified Payments which, but for such election, would have been paid between January 1, 1998 and July 1, 1998. Under this Appendix, the term “Suspended Payments” refers to the Reclassified
Payments which were subject to the short-term deferral described in the preceding sentence. 
  

	 	b.	Proximate Reclassified Payments. 

 The term
“Proximate Reclassified Payments” refers to those Reclassified Payments (other than Suspended Payments) which, in the absence of an election of the Substitute Benefit, would have been scheduled for payment under the Hughes Excess Plan on
or prior to July 1, 1999. 
  

 36 

	 	c.	Distant Reclassified Payments. 

 The term
“Distant Reclassified Payments” refers to Reclassified Payments which, in the absence of an election of the Substitute Benefit, would have been scheduled for payment under the Hughes Excess Plan after July 1, 1999. Distant
Reclassified Payments may be recalculated to reflect how the Retirement Plan implemented the repeal of section 415(e) of the Code. 
  

	 	d.	Settlement Credit. 

 The term “Settlement
Credit” refers to an amount calculated for each Hughes Participant which is the greater of (i) or (ii) below: 
  

	 	(i)	The amount under this item (i) equals ten percent (10%) of the sum of (aa) the Hughes Participant’s Suspended Payments (if any), plus (bb) the Hughes
Participant’s Proximate Reclassified Payments (if any). 

  

	 	(ii)	The amount under this item (ii) equals (aa) the sum of (x) the Hughes Participant’s Required IRA Withdrawals (if any) and (y) the Hughes Participant’s 1998
Excess Payments (if any), times (bb) a percentage not to exceed fifty-five percent (55%), determined according to the date elected by the Hughes Participant for payment of the Substitute Benefit. For each of the first five full years after
August 1, 1998 that payment is deferred, the percentage will increase by five percent (5%), and for each of the next ten additional full years that payment is deferred, the percentage will increase by three percent (3%). Thus, for a Hughes
Participant who elected payment of the Substitute Benefit on July 31, 2013 (a total deferral of 15 years), the percentage is fifty-five percent (55%). 

  

	 	e.	Acquired Hughes Participant. 

 The term
“Acquired Hughes Participant” means any person who became a Participant or a Former Participant under the terms of the Employee Matters Agreement between The Boeing Company and Hughes Electronics Corporation. 
  

	 	f.	Hughes Retirement Plan. 

 The term “Hughes
Retirement Plan” means the Hughes Non-Bargaining Retirement Plan. 
  

 37 

	 	A.2.4	BSS Account. 

  

	 	a.	Hughes Account 

 Hughes established an account, for
bookkeeping purposes only, for each Hughes Participant who elected the Substitute Benefit (the “Hughes Account”). The Hughes Account was to be credited as follows: 
  

	 	(i)	The Hughes Account of a Hughes Participant who elected the Substitute Benefit was initially credited, as of August 1, 1998, by (aa) the sum of the Hughes
Participant’s Suspended Payments (if any), plus (bb) interest on the Hughes Participant’s Suspended Payments (if any) at the rate of one-half percent (0.5%) per month from the date each payment would have been made but for the suspension
through July 31, 1998, plus (cc) the Hughes Participant’s Settlement Credit (if any). 

  

	 	(ii)	As of the date that each Proximate Reclassified Payment and Distant Reclassified Payment would have been made (but for the Hughes Participant’s election of the Substitute
Benefit), commencing with the Reclassified Payment which would have been made August 1, 1998, the Hughes Account was credited with the amount of such Reclassified Payment. In addition, if Reclassified Payments were made to a Hughes Participant
in January through March, 1998, then the Hughes Participant who elected the Substitute Benefit was allowed to elect that his regularly-scheduled payments from the Hughes Excess Plan be credited to the Hughes Account as of the date such payments
would otherwise have been made. The amount of the regularly-scheduled payments to be credited to the Hughes Account must not exceed the amount by which such Reclassified Payments increased his taxable income for 1998, as determined by Hughes.

  

	 	 (iii)
	 As of the last day of each month, through the month specified below, the unpaid amount of the Hughes Account is
increased by interest at a monthly rate of 0.7591% (approximately an equivalent annual rate of 9- 1/2% compounded monthly). The
duration of interest credits depends upon the payout election made by the Hughes Participant pursuant to Section A.2.1 of the Appendix. Interest is credited though the last day of the month immediately preceding the month for which the final 

  

 38 

	 	 
payment of the Substitute Benefit is made for any Hughes Participant who (aa) elected payment in a single sum, (bb) elected payment in two substantially
equal installments, or (cc) elected payment in five installments commencing on or before the eleventh anniversary of the Hughes Participant’s Deferral Start Date. Interest is to be credited through the last day of the month immediately
preceding the month for which the initial installment payment of the Substitute Benefit is made for any Hughes Participant who elected payment in five installments commencing on or after the twelfth anniversary of the Hughes Participant’s
Deferral Start Date, and no interest may be credited for such Hughes Participant on or after the date installments commence. 

  

	 	b.	Continuation as BSS Account 

 On the Closing Date,
the Company shall establish an account, for bookkeeping purposes only, for each Acquired Hughes Participant who elected the Substitute Benefit (the “BSS Account”). The BSS Account shall be credited as follows: 
  

	 	(i)	The BSS Account shall be initially credited with the unpaid amount of the Acquired Hughes Participant’s Hughes Account under the Hughes Excess Plan as of the Closing Date.

  

	 	(ii)	As of the date that each Distant Reclassified Payment would have been made (but for the Hughes Participant’s election of the Substitute Benefit), commencing with the first
Distant Reclassified Payment payable after the Closing Date, the BSS Account will be credited with the amount of such Distant Reclassified Payment. 

  

	 	 (iii)
	 As of the last day of each month, through the month specified below, the unpaid amount of the BSS Account is increased
by interest at a monthly rate of 0.7591% (approximately an equivalent annual rate of 9- 1/2% compounded monthly). (If the month
specified below occurred prior to the Closing Date, then no interest credits will be made to the BSS Account). The duration of interest credits depends upon the payout election made by the Acquired Hughes Participant pursuant to Section A.2.1 of the
Appendix. Interest is credited though the last day of the month immediately preceding the month for which the final payment of the Substitute Benefit is made for any Acquired Hughes Participant who (aa) elected payment in a single 

  

 39 

	 	 
sum, (bb) elected payment in two substantially equal installments, or (cc) elected payment in five installments commencing on or before the eleventh
anniversary of the Hughes Participant’s Deferral Start Date. Interest is to be credited though the last day of the month immediately preceding the month for which the initial installment payment of the Substitute Benefit is made for any
Acquired Hughes Participant who elected payment in five installments commencing on or after the twelfth anniversary of the Acquired Hughes Participant’s Deferral Start Date, and no interest may be credited for such Acquired Hughes Participant
on or after the date installments commence. 

  

	 	A.3.1	Payment During Hughes Participant’s Life. 

 The BSS Account will be paid to the Acquired Hughes Participant as specified in the election described in Section A.2.1 of this Appendix. 
  

	 	A.3.2	Payment Following Hughes Participant’s Death. 

 The unpaid balance of the BSS Account will be paid to the Acquired Hughes Participant’s Beneficiary as follows. 
 Unless the
Hughes Participant elected otherwise, one-half of the unpaid balance of the BSS Account shall be paid as soon as feasible following the Acquired Hughes Participant’s death and the remaining one-half shall be paid in January of the following
year. 
 Each Hughes Participant was entitled to elect, at the time of the Hughes Participant’s election under Section A.2.1 of this
Appendix, that the benefit payable to the Beneficiary following the death of the Hughes Participant shall be made at the time and in the manner payment would have been made to the Hughes Participant during the Hughes Participant’s life. This
election will continue to apply to Acquired Hughes Participants. 
 If Reclassified Payments remain unpaid following payment of the BSS
Account to the Beneficiary, then the Reclassified Payments shall be paid to the Beneficiary at the time the Reclassified Payments would have been paid but for the election of the Substitute Benefit. Unless an Acquired Hughes Participant elects
otherwise, the Beneficiary for purposes of this Appendix shall be the Beneficiary otherwise designated under the Retirement Plan. The Acquired Hughes Participant shall be entitled to name a different Beneficiary for purposes of this Appendix.

  

 40 

	IV.	MISCELLANEOUS PROVISIONS. 

  

	 	A.4.1	General. 

 This Appendix is incorporated by
reference into the Plan as if set forth fully therein. Any capitalized terms used in this Appendix which are not defined in this Appendix shall have the meanings specified in the Plan. 
  

	 	A.4.2	Elections Irrevocable. 

 Elections by a Hughes
Participant under this Appendix are irrevocable. 
  

	 	A.4.3	Defense Retirees. 

 In 1997, the Hughes’
defense businesses were acquired by Raytheon Company. As part of that transaction, the Hughes and Raytheon Company agreed that the liabilities of the Plan and the assets and liabilities of the Retirement Plan attributable to defense employees and
retirees will be transferred to plans sponsored by Raytheon Company. Accordingly, the provisions of this Appendix apply only to non-defense retirees, and no benefit is created under this Appendix for defense retirees. 
  

	 	A.4.4	Section 415 Changes. 

 Code section 415(e) was
repealed effective for limitation years beginning on or after January 1, 2000. The repeal may increase the limitation on benefits payable from the Retirement Plan to some or all Acquired Hughes Participants who elected the Substitute Benefit.
The Company reserves the right to pay the Substitute Benefit from the Retirement Plan in lieu of the benefits payable hereunder to the extent permitted by law. 
  

 41 

 APPENDIX B 
 Plan Provisions Prior To January 1, 1999 
  

	B1.1	Eligibility and Benefits for BCERP Participants 

 Prior to
January 1, 1999, this Plan offered certain benefits to participants in the BCERP whose benefits were affected by the limitations on benefits or contributions imposed by section 415 and 401(a)(17) of the Code. Effective January 1, 1999,
certain of those participants were transferred to the SERP and ceased to be eligible for benefits under this Plan based upon their participation in the BCERP. To the extent any participant eligible for benefits under this Plan based upon his or her
participation in the BCERP was not transferred to the SERP, such participant shall remain eligible to participate in this Plan and to receive such benefits. Effective January 1, 2008, all such benefits remaining under this Plan have commenced
and are not subject to the deferral and distribution rules under Articles IV & V of the 2008 restatement. 
 With respect to the BCERP, the benefits
under this Plan represent the difference between the actual benefits of a Participant under the BCERP and the benefits that would have been payable under that plan except for the limitations on benefits imposed by sections 415 and 401(a)(17) of the
Code. The benefits payable under this Plan with respect to the BCERP were payable to the Participant or to any other person who is receiving or entitled to receive benefits with respect to the Participant under the BCERP, and were paid in the same
form, at the same times and for the same period as benefits were paid with respect to the Participant under the BCERP. 
 Notwithstanding the foregoing, if
the Actuarial Equivalent of the benefit payable under this Plan with respect to the BCERP was $10,000 or less, the Actuarial Equivalent value of the benefit was paid in the form of an automatic lump sum at the same time as benefits began or were
paid under the BCERP. Actuarial Equivalent is defined in the BCERP. This paragraph applies to Participants who retire or begin receiving termination benefits under the BCERP on or after February 1, 1997, and for this purpose the Actuarial
Equivalent shall be determined as of the Participant’s Retirement Date under the Employee Retirement Plan. This paragraph shall also apply to Participants who are receiving benefits under this Plan as of February 1, 1997, and for this
purpose the Actuarial Equivalent shall be determined with respect to each participant’s remaining benefits payable under this Plan determined as of February 1, 1997. 
 Effective January 1, 1999, any Employee who is eligible to participate in the SERP shall no longer be entitled to any benefit under this Appendix B1.1. To the extent any such Employee is determined to be entitled
to a benefit under this Appendix B1.1 of the Plan, such benefit shall be offset by any benefits received under the SERP. Any Employee who was a Participant in this Plan as of December 31, 1998 and eligible for a benefit under this Appendix B1.1
shall remain eligible for such benefit unless and until such Employee becomes eligible to participate in the SERP. The Plan will respect beneficiary designations made by a Participant at the time of commencement of the benefit under this Section
B.1.1, notwithstanding any contrary definition of Beneficiary under the Plan. 
  

 42 

	B1.2	Eligibility and Benefits for FSP Participants 

 Prior to
January 1, 1999, salaried employees who were not represented by a collective bargaining agent were eligible to participate in the FSP. Accordingly, participants in the FSP were eligible to participate in this Plan prior to that date, to the
extent that their FSP benefits were limited by Code sections 415 and 401(a)(17). 
 The benefits under this Plan with respect to a particular year were the
additional benefits that would have been payable under the FSP if the reduction on contributions and other additions had not been made. All amounts deferred under this Plan were credited to the Accounts of Participants at the time such amounts would
otherwise have been credited to their accounts under the FSP. 
 For periods before January 1, 2009, a Participant’s Account is credited with
interest in accordance with the Interest Fund method under Section 7.2 (Earnings Credits Methods). 
 For periods on or after January 1, 2009, a
Participant’s Account is credited with earnings in accordance with the method elected by the Participant under Section 7.2 (Earnings Credits Methods). 
 The benefits payable under this Plan with respect to the FSP will be payable to the Participant in accordance with the distribution rules under Article VI. 
  

 43Indenture dated as of December 19, 2008

 Exhibit 4.5 
  
  
  
 HEADWATERS INCORPORATED, 
 AND 

 WELLS FARGO BANK, 
 NATIONAL ASSOCIATION 
 as Trustee 
 INDENTURE 
 Dated as of December 19, 2008 
 16% Convertible Senior Subordinated Notes due 2016 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1
	
	DEFINITIONS
			
	 Section 1.01
	  	Definitions	  	1
	
	ARTICLE 2
	
	ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES
			
	 Section 2.01
	  	Designation Amount and Issue of Notes	  	10
	 Section 2.02
	  	Form of Notes	  	10
	 Section 2.03
	  	Date and Denomination of Notes; Payments of Interest	  	11
	 Section 2.04
	  	Execution of Notes	  	13
	 Section 2.05
	  	Exchange and Registration of Transfer of Notes; Restrictions on Transfer	  	13
	 Section 2.06
	  	Mutilated, Destroyed, Lost or Stolen Notes	  	19
	 Section 2.07
	  	Temporary Notes	  	20
	 Section 2.08
	  	Cancellation of Notes	  	21
	 Section 2.09
	  	CUSIP Numbers	  	21
	
	ARTICLE 3
	
	REDEMPTION AND REPURCHASE OF NOTES
			
	 Section 3.01
	  	Redemption of Notes	  	21
	 Section 3.02
	  	Notice of Redemption; Selection of Notes	  	21
	 Section 3.03
	  	Payment of Notes Called for Redemption by the Company	  	23
	 Section 3.04
	  	Conversion Arrangement on Call for Redemption	  	24
	 Section 3.05
	  	Repurchase at Option of Holders upon a Designated Event	  	24
	 Section 3.06
	  	Repurchase of Notes by the Company at Option of the Holder	  	27
	 Section 3.07
	  	Company Repurchase Notice	  	28
	 Section 3.08
	  	Effect of Repurchase Notice	  	29
	 Section 3.09
	  	Deposit of Repurchase Price	  	30
	 Section 3.10
	  	Notes Repurchased in Part	  	30
	 Section 3.11
	  	Repayment to the Company	  	30
	
	ARTICLE 4
	
	PARTICULAR COVENANTS OF THE COMPANY
			
	 Section 4.01
	  	Payment of Principal and Interest	  	31
	 Section 4.02
	  	Maintenance of Office or Agency	  	31
	 Section 4.03
	  	Appointments to Fill Vacancies in Trustee’s Office	  	31
	 Section 4.04
	  	Provisions as to Paying Agent	  	31

  

 i 

					
	 Section 4.05
	  	Existence	  	32
	 Section 4.06
	  	Maintenance of Properties	  	33
	 Section 4.07
	  	Payment of Taxes and Other Claims	  	33
	 Section 4.08
	  	Stay, Extension and Usury Laws	  	33
	 Section 4.09
	  	Rule 144A Information Requirement	  	33
	 Section 4.10
	  	Compliance Certificate	  	34
	 Section 4.11
	  	Limitation on Senior Subordinated Indebtedness	  	34
	 Section 4.12
	  	Additional Interest Notice	  	34
	
	ARTICLE 5
	
	NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
			
	 Section 5.01
	  	Noteholders’ Lists	  	35
	 Section 5.02
	  	Preservation and Disclosure of Lists	  	35
	 Section 5.03
	  	Reports by Trustee	  	35
	 Section 5.04
	  	Reports by Company	  	36
	
	ARTICLE 6
	
	REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT
			
	 Section 6.01
	  	Events of Default	  	36
	 Section 6.02
	  	Payments of Notes on Default; Suit Therefor	  	38
	 Section 6.03
	  	Application of Monies Collected by Trustee	  	39
	 Section 6.04
	  	Proceedings by Noteholder	  	40
	 Section 6.05
	  	Proceedings by Trustee	  	41
	 Section 6.06
	  	Remedies Cumulative and Continuing	  	41
	 Section 6.07
	  	Direction of Proceedings and Waiver of Defaults by Majority of Noteholders	  	41
	 Section 6.08
	  	Notice of Default	  	42
	 Section 6.09
	  	Undertaking to Pay Costs	  	42
	
	ARTICLE 7
	
	THE TRUSTEE
			
	 Section 7.01
	  	Duties and Responsibilities of Trustee	  	42
	 Section 7.02
	  	Reliance on Documents, Opinions, Etc.	  	44
	 Section 7.03
	  	No Responsibility for Recitals, Etc.	  	45
	 Section 7.04
	  	Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes	  	45
	 Section 7.05
	  	Monies to Be Held in Trust	  	45
	 Section 7.06
	  	Compensation and Expenses of Trustee	  	45
	 Section 7.07
	  	Officer’s Certificate as Evidence	  	46
	 Section 7.08
	  	Conflicting Interests of Trustee	  	46
	 Section 7.09
	  	Eligibility of Trustee	  	46
	 Section 7.10
	  	Resignation or Removal of Trustee	  	46
	 Section 7.11
	  	Acceptance by Successor Trustee	  	48

  

 ii 

					
	 Section 7.12
	  	Succession by Merger	  	48
	 Section 7.13
	  	Preferential Collection of Claims	  	49
	 Section 7.14
	  	Trustee’s Application for Instructions from the Company	  	49
	
	ARTICLE 8
	
	THE NOTEHOLDERS
			
	 Section 8.01
	  	Action by Noteholders	  	49
	 Section 8.02
	  	Proof of Execution by Noteholders	  	49
	 Section 8.03
	  	Who Are Deemed Absolute Owners	  	50
	 Section 8.04
	  	Company-owned Notes Disregarded	  	50
	 Section 8.05
	  	Revocation of Consents; Future Holders Bound	  	50
	
	ARTICLE 9
	
	MEETINGS OF NOTEHOLDERS
			
	 Section 9.01
	  	Purpose of Meetings	  	51
	 Section 9.02
	  	Call of Meetings by Trustee	  	51
	 Section 9.03
	  	Call of Meetings by Company or Noteholders	  	51
	 Section 9.04
	  	Qualifications for Voting	  	52
	 Section 9.05
	  	Regulations	  	52
	 Section 9.06
	  	Voting	  	52
	 Section 9.07
	  	No Delay of Rights by Meeting	  	53
	
	ARTICLE 10
	
	SUPPLEMENTAL INDENTURES
			
	 Section 10.01
	  	Supplemental Indentures Without Consent of Noteholders	  	53
	 Section 10.02
	  	Supplemental Indenture with Consent of Noteholders	  	54
	 Section 10.03
	  	Effect of Supplemental Indenture	  	55
	 Section 10.04
	  	Notation on Notes	  	56
	 Section 10.05
	  	Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee	  	56
	
	ARTICLE 11
	
	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
			
	 Section 11.01
	  	Company May Consolidate on Certain Terms	  	56
	 Section 11.02
	  	Successor to Be Substituted	  	56
	 Section 11.03
	  	Opinion of Counsel to Be Given to Trustee	  	57
	
	ARTICLE 12
	
	SATISFACTION AND DISCHARGE OF INDENTURE
			
	 Section 12.01
	  	Discharge of Indenture	  	57

  

 iii 

					
	 Section 12.02
	  	Deposited Monies to Be Held in Trust by Trustee	  	58
	 Section 12.03
	  	Paying Agent to Repay Monies Held	  	58
	 Section 12.04
	  	Return of Unclaimed Monies	  	58
	 Section 12.05
	  	Reinstatement	  	58
			
		  	ARTICLE 13	  	
			
		  	IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS	  	
			
	 Section 13.01
	  	Indenture and Notes Solely Corporate Obligations	  	59
			
		  	ARTICLE 14	  	
			
		  	CONVERSION OF NOTES	  	
			
	 Section 14.01
	  	Right to Convert	  	59
	 Section 14.02
	  	Conversion Procedures	  	62
	 Section 14.03
	  	Payment Upon Conversion	  	65
	 Section 14.04
	  	Cash Payments in Lieu of Fractional Shares	  	65
	 Section 14.05
	  	Conversion Rate	  	65
	 Section 14.06
	  	Adjustment of Conversion Rate	  	66
	 Section 14.07
	  	Effect of Reclassification, Consolidation, Merger or Sale	  	73
	 Section 14.08
	  	Taxes on Shares Issued	  	74
	 Section 14.09
	  	Reservation of Shares; Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock	  	74
	 Section 14.10
	  	Responsibility of Trustee	  	75
	 Section 14.11
	  	Notice to Holders Prior to Certain Actions	  	76
	 Section 14.12
	  	Shareholder Rights Plans	  	76
			
		  	ARTICLE 15	  	
			
		  	SUBORDINATION	  	
			
	 Section 15.01
	  	Agreement to Subordinate	  	77
	 Section 15.02
	  	Liquidation, Dissolution, Bankruptcy	  	77
	 Section 15.03
	  	Default on Senior Indebtedness	  	77
	 Section 15.04
	  	Acceleration of Payment of Notes	  	78
	 Section 15.05
	  	When Distribution Must Be Paid Over	  	79
	 Section 15.06
	  	Subrogation	  	79
	 Section 15.07
	  	Relative Rights	  	79
	 Section 15.08
	  	Subordination May Not Be Impaired by Company	  	79
	 Section 15.09
	  	Rights of Trustee and Paying Agent	  	79
	 Section 15.10
	  	Distribution or Notice to Representative	  	80
	 Section 15.11
	  	Article 15 Not to Prevent Events of Default or Limit Right to Accelerate	  	80
	 Section 15.12
	  	Trust Monies Not Subordinated	  	80
	 Section 15.13
	  	Trustee Entitled to Rely	  	80
	 Section 15.14
	  	Trustee to Effectuate Subordination	  	80
	 Section 15.15
	  	Trustee Not Fiduciary for Holders of Senior Indebtedness	  	81

  

 iv 

					
	 Section 15.16
	  	Reliance by Noteholders of Senior Indebtedness on Subordination Provisions	  	81
	
	ARTICLE 16
	
	MISCELLANEOUS PROVISIONS
			
	 Section 16.01
	  	Provisions Binding on Company’s Successors	  	81
	 Section 16.02
	  	Official Acts by Successor Corporation	  	81
	 Section 16.03
	  	Addresses for Notices, Etc.	  	81
	 Section 16.04
	  	Governing Law	  	82
	 Section 16.05
	  	Evidence of Compliance with Conditions Precedent; Certificates to Trustee	  	82
	 Section 16.06
	  	Legal Holidays	  	82
	 Section 16.07
	  	Company Responsible for Making Calculations	  	82
	 Section 16.08
	  	Trust Indenture Act	  	83
	 Section 16.09
	  	No Security Interest Created	  	83
	 Section 16.10
	  	Benefits of Indenture	  	83
	 Section 16.11
	  	Table of Contents, Headings, Etc.	  	83
	 Section 16.12
	  	Authenticating Agent	  	83
	 Section 16.13
	  	Execution in Counterparts	  	84
	 Section 16.14
	  	Severability	  	84

 Exhibit A - FORM OF NOTE 
  

 v 

 INDENTURE 
 INDENTURE dated as of December 19, 2008, between HEADWATERS INCORPORATED, a Delaware corporation (hereinafter called the “Company”), having its principal office at 10653 South Riverfront Parkway,
Suite 300, South Jordan, UT 84095, and Wells Fargo Bank, National Association, a national banking association, as trustee hereunder (hereinafter called the “Trustee”). 
 WITNESSETH: 
 WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the issue of its 16% Convertible Senior Subordinated Notes due 2016 (hereinafter called the “Notes”), in an aggregate principal amount not to exceed $64,000,000 and, to provide the terms and conditions upon which the Notes are
to be authenticated, issued and delivered, the Company has duly authorized the execution and delivery of this Indenture; and 
 WHEREAS, the
Notes, the certificate of authentication to be borne by the Notes, a form of assignment, a form of Designated Event Repurchase Notice, a form of Repurchase Notice and a form of Conversion Notice to be borne by the Notes are to be substantially in
the forms hereinafter provided for; and 
 WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in this Indenture provided, the valid, binding and legal obligations of the Company, and to constitute this Indenture a valid agreement according to its terms,
have been done and performed, and the execution of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
 That in order to declare the terms and conditions upon which the Notes are, and are to
be, authenticated, issued and delivered, and in consideration of the premises and of the purchase and acceptance of the Notes by the holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the
respective holders from time to time of the Notes (except as otherwise provided below), as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.01
Definitions. The terms defined in this Section 1.01 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the
respective meanings specified in this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined in the Securities Act (except as herein otherwise expressly
provided or unless the context otherwise requires) shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the execution of this Indenture. The words “herein,”
“hereof,” “hereunder” and words of similar 

  

 1 

 
import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article include the
plural as well as the singular. 
 “2.50% Convertible Notes” means any of the Company’s 2.50% Convertible Senior Subordinated
Notes due 2014. 
 “2 7/
8% Convertible Notes” means any of the Company’s 2 7/8% Convertible Senior Subordinated Notes due 2016. 
 “Additional Interest” has the meaning specified for
“Additional Interest” in Section 2(e) of the Registration Rights Agreement. 
 “Additional Interest Notice” has the
meaning specified in Section 4.12. 
 “Adjustment Event” has the meaning specified in Section 14.06(k). 
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person means the power to direct or cause the direction of the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agent Members” has the meaning specified in Section 2.05(b). 
 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 
 “Board of Directors” means the Board of Directors of the Company or a committee of such Board duly authorized to act for it hereunder.

 “Business Day” means any day except a Saturday, Sunday or legal holiday on which banking institutions in The City of New York or
place of payment are authorized or obligated by law, regulation or executive order to close. 
 “Cash Percentage” has the meaning
specified in Section 14.02. 
 “Cash Percentage Notice” has the meaning specified in Section 14.02. 
 “Closing Sale Price” of the shares of Common Stock on any date means the closing sale price per share (or, if no closing sale price is
reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) on such date as reported in composite transactions for the principal United
States securities exchange on which shares of Common Stock are traded or, if the shares of Common Stock are not listed on a United States national or regional securities exchange, as reported by the OTC Bulletin Board, or, if not so reported, by
Pink Sheets LLC or a successor organization thereto. In the absence of such quotations, the Company shall be entitled to 

  

 2 

 
determine the Closing Sale Price on the basis it considers appropriate. The Closing Sale Price shall be determined without reference to extended or
after-hours trading. 
 “Commission” means the Securities and Exchange Commission, as from time to time constituted, created under
the Exchange Act, or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
 “Common Stock” means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the event
of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 14.07, however, shares issuable on conversion of Notes shall
include only shares of the class designated as common stock of the Company at the date of this Indenture (namely, the Common Stock, par value $0.01) or shares of any class or classes resulting from any reclassification or reclassifications thereof
and which have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the Company; provided
that, if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion shall be substantially in the proportion which the total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
 “Company”
means the corporation named as the “Company” in the first paragraph of this Indenture, and, subject to the provisions of Article 11 and Section 14.07, shall include its successors and assigns. 
 “Company Repurchase Notice” has the meaning specified in Section 3.07(b). 
 “Company Repurchase Notice Date” has the meaning specified in Section 3.07(b). 
 “Conversion Date” has the meaning specified in Section 14.02. 
 “Conversion Notice” has the meaning specified in Section 14.02. 
 “Conversion Price” as of any day will equal $1,000 divided by the Conversion Rate as of such date. 
 “Conversion Rate” has the meaning specified in Section 14.05. 
 “Corporate Trust Office” or other similar term means the designated office of the Trustee at which at any particular time its corporate trust
business as it relates to this Indenture shall be administered, which office is, at the date as of which this Indenture is dated, located at 625 Marquette Avenue South, MAC N9311-110, Minneapolis, MN 55479, Attention: Corporate Trust Services.

 “Credit Agreement” means that certain Credit Agreement dated as of September 8, 2004 (as amended and modified pursuant to
consents dated November 6, 2004 and December 16, 

  

 3 

 
2004, Amendment No. 2 to the Credit Agreement dated March 14, 2005, Amendment No. 3 to the Credit Agreement dated May 19, 2005, Amendment
No. 4 to the Credit Agreement dated October 26, 2005, Amendment No. 5 to the Credit Agreement dated June 27, 2006, Amendment No. 6 to the Credit Agreement dated August 30, 2006, Amendment No. 7 to the Credit
Agreement dated January 12, 2007 and Amendment No. 8 to the Credit Agreement dated August 15, 2008) among Headwaters Incorporated, the lender parties thereto, Morgan Stanley & Co. Incorporated, as collateral agent, and Morgan
Stanley Senior Funding, Inc., as administrative agent, and as further amended, modified, supplemented, restated, refinanced or replaced from time to time, and the Loan Documents (as defined therein), as amended, modified, supplemented, restated,
refinanced or replaced from time to time. 
 “Current Market Price” has the meaning specified in Section 14.06(g)(i).

 “Custodian” means Wells Fargo Bank, National Association, as custodian with respect to the Notes in global form, or any
successor entity thereto. 
 “Daily Conversion Value” means, for each of the twenty (20) consecutive Trading Days during the
Observation Period, one-twentieth of the product of (i) the applicable Conversion Rate and (ii) the Daily VWAP of Common Stock (or the consideration into which our Common Stock has been exchanged in connection with certain corporate
transactions) for such Trading Day. 
 “Daily Settlement Amount,” for each of the twenty (20) Trading Days during the
Observation Period, shall consist of: 
 (i) cash in an amount equal to the lesser of $50 and the Daily Conversion Value for
such Trading Day; and 
 (ii) to the extent the Daily Conversion Value exceeds $50, a number of shares of Common Stock equal
to (x) the difference between the Daily Conversion Value and $50, divided by (y) the Daily VWAP for such day, subject to the Company’s right to deliver cash in lieu of all or a portion of such Common Stock in accordance with
Section 14.04. 
 “Daily Share Amount” means, with respect to each Trading Day in the Observation Period, an amount equal to
the following: (i) if the Daily Conversion Value for such Trading Day is equal to or less than $50, then the Daily Share Amount with respect to such Trading Day shall mean an amount equal to zero; and (ii) if the Daily Conversion Value for
such Trading Day exceeds $50, then the Daily Share Amount with respect to such Trading Day shall mean a fraction (a) whose numerator is the excess of such Daily Conversion Value over $50 and (b) whose denominator is the Daily VWAP per
share of Common Stock (or Reference Property, if applicable) on such Trading Day. 
 “Daily VWAP” means, for each of the twenty
(20) consecutive Trading Days during the Observation Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “HW.N <equity> AQR” (or its equivalent
successor if such page is not available) in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or if such volume-weighted average price is unavailable,
the market value of one share of Common Stock 

  

 4 

 
on such Trading Day determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained for such
purpose by the Company). 
 “Default” means any event that is, or after notice or passage of time, or both, would be, an Event of
Default. 
 “Defaulted Interest” has the meaning specified in Section 2.03. 
 “Depositary” means the clearing agency registered under the Exchange Act that is designated to act as the Depositary for the Global Notes. The
Depository Trust Company shall be the initial Depositary, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall mean or include such
successor. 
 “Designated Event” means any Fundamental Change or a Termination of Trading. 
 “Designated Event Expiration Time” has the meaning specified in Section 3.05(b). 
 “Designated Event Notice” has the meaning specified in Section 3.05(b). 
 “Designated Event Repurchase Date” has the meaning specified in Section 3.05(a). 
 “Designated Event Repurchase Notice” has the meaning specified in Section 3.05(a). 
 “Designated Senior Indebtedness” of the Company means (a) the Credit Agreement and (b) any other Senior Indebtedness of the Company
that, at the date of determination, has an aggregate principal amount outstanding of, or under which, at the date of determination, the holders thereof are committed to lend up to, at least $25,000,000 and is specifically designated by the Company
in the instrument evidencing or governing such Senior Indebtedness as “Designated Senior Indebtedness” for purposes of this Indenture. 
 “Determination Date” has the meaning specified in Section 14.06(k). 
 “Event of Default” means any event
specified in Section 6.01 as an Event of Default. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as in effect from time to time. 
 “Ex-Dividend Time” has the meaning specified
in Section 14.01(b). 
 “Expiration Time” has the meaning specified in Section 14.06(f). 
 “Fair Market Value” has the meaning specified in Section 14.06(g)(ii). 
 “Fundamental Change” means the occurrence of any transaction or event (whether by means of an exchange offer, liquidation, tender offer,
consolidation, merger, combination, reclassification, recapitalization or otherwise) in connection with which all or substantially all of the Common Stock shall be exchanged for, converted into, acquired for or constitutes solely the right to
receive, consideration which is not all or substantially all common stock, depositary 

  

 5 

 
receipts, ordinary shares or other certificates representing common equity interests that are (or, upon consummation of or immediately following such
transaction or event, will be) listed on a United States national securities exchange or approved (or, upon consummation of or immediately following such transaction or event, will be approved) for quotation on any United States system of automated
dissemination of quotations of securities prices. 
 “Global Note” has the meaning specified in Section 2.02. 
 “Indebtedness” means, with respect to any Person on any date of determination, without duplication, the principal or face amount of
(i) all obligations for borrowed money, (ii) all obligations evidenced by notes, bonds or other similar instruments, (iii) all obligations in respect of letters of credit or bankers’ acceptances or similar instruments (or
reimbursement obligations with respect thereto), (iv) all obligations to pay the deferred purchase price of property or services, except any such balance that constitutes an accrued expense or trade payable, (v) all obligations as lessee
which are capitalized in accordance with generally accepted accounting principles, (vi) all obligations in respect of interest rate or other swap, cap, floor or collar agreements or hedge agreements, forward contracts or other similar
instruments or agreements or foreign currency hedge, exchange, purchase or similar instruments or agreements, and (vii) all Indebtedness of others guaranteed by such Person or any of its Subsidiaries or for which such Person or any of its
Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others). obligations, contingent or otherwise, with respect to an interest rate or other swap, cap, floor or collar
agreement or hedge agreement, forward contract or other similar instrument or agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement. 
 “Indenture” means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 
 “Initial Holders” means each of the parties that have executed the Company’s form of Exchange Agreement dated as of December 16, 2008
(each an “Initial Holder”). 
 “Interest” means, when used with reference to the Notes, any interest payable under the
terms of the Notes, including Defaulted Interest and Additional Interest, if any, payable under the terms of the Registration Rights Agreement. 
 “Market Disruption Event” means (i) a failure by the primary United States national securities exchange or market on which the Common Stock is listed or admitted to trading to open for trading during its regular trading
session or (ii) the occurrence or existence prior to 1:00 p.m. on any Scheduled Trading Day for the Common Stock for an aggregate one half hour period of any suspension or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or future contracts relating to the Common Stock. 
 “Measurement Period” has the meaning specified in Section 14.01(a). 
 “Note” or
“Notes” means any Note or Notes, as the case may be, authenticated and delivered under this Indenture, including any Global Note. 
  

 6 

 “Noteholder” or “holder” as applied to any Note, or other similar terms (but
excluding the term “Beneficial Holder”), means any Person in whose name at the time a particular Note is registered on the Note Registrar’s books. 
 “Note Register” has the meaning specified in Section 2.05. 
 “Note Registrar” has
the meaning specified in Section 2.05. 
 “Observation Period” with respect to any Note tendered for conversion means the 20
consecutive Trading Days beginning on, and including, the second Scheduled Trading Day following the related Conversion Date. 
 “Officer” means, with respect to the Company, its Chairman of the Board, the Chief Executive Officer, the President or any Vice President (whether or not designated by a number or numbers or word or words added before or after the
title “Vice President”) and the Treasurer or any Assistant Treasurer, or the Secretary or Assistant Secretary of the Company. 
 “Officer’s Certificate,” when used with respect to the Company, means a certificate signed by an Officer thereof. 
 “Opinion of Counsel” means a written opinion of counsel who may be external or in-house counsel for the Company, reasonably acceptable to the Trustee. 
 “Outstanding,” when used with reference to Notes and subject to the provisions of Section 8.04, means, as of any particular time, all Notes authenticated and delivered by the Trustee under this
Indenture, except: 
 (a) Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 

(b) Notes, or portions thereof, (i) for the redemption of which monies in the necessary amount shall have been deposited in trust
with the Trustee or with any paying agent (other than the Company) or (ii) which shall have been otherwise discharged in accordance with Article 12; 
 (c) Notes in lieu of which, or in substitution for which, other Notes shall have been authenticated and delivered pursuant to the terms of Section 2.06; and 
 (d) Notes converted pursuant to Article 14 and Notes deemed not outstanding pursuant to Article 3. 
 “Payment Blockage Notice” has the meaning specified in Section 15.03(a). 
 “Permitted Junior Securities” means (i) equity interests in the Company or (ii) debt securities that are subordinated to all Senior
Indebtedness and any debt securities issued in exchange for Senior Indebtedness to the same extent as, or to a greater extent than, the Notes are subordinated to Senior Indebtedness under this Indenture. 
  

 7 

 “Person” means a corporation, an association, a partnership, a limited liability company, an
individual, a joint venture, a joint stock company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof. 
 “Portal Market” means The PORTAL Market operated by The NASDAQ OMX Group, Inc. or any successor thereto. 
 “Predecessor Note” of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note, and, for the purposes of this definition, any Note authenticated and
delivered under Section 2.06 in exchange for a mutilated Note or in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated lost, destroyed or stolen Note that it replaces. 
 “Purchased Shares” has the meaning specified in Section 14.06(f)(i). 
 “Record Date” has the meaning specified in Section 14.06(g)(iii). 
 “Reference Property” has the meaning specified in Section 14.07. 
 “Registration Rights Agreement” means the Registration Rights Agreement, dated as of December
        , 2008, between the Company and the Initial Holders, as amended from time to time in accordance with its terms. 
 “Repurchase Date” has the meaning specified in Section 3.06. 
 “Repurchase Notice”
has the meaning specified in Section 3.06. 
 “Responsible Officer” shall mean, when used with respect to the Trustee, any
officer within the corporate trust department of the Trustee with direct responsibility for the administration of this Indenture, and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred
because of such person’s knowledge or any familiarity with the particular subject. 
 “Restricted Securities” has the meaning
specified in Section 2.05(c). 
 “Rule 144A” means Rule 144A as promulgated under the Securities Act. 
 “Scheduled Trading Day” means a day that is scheduled to be a Trading Day. 
 “Securities” has the meaning specified in Section 14.06(d). 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time. 
 “Senior Indebtedness” means (i) all Indebtedness of the Company outstanding under the Credit Agreement, including interest, fees,
expenses, amounts payable under reimbursement obligations in connection with letters of credit and interest accruing after, or which would accrue but for the filing of a petition initiating any proceeding pursuant to Bankruptcy Law at the rate

  

 8 

 
specified in the Credit Agreement, whether or not a claim for such interest would be allowed) and (ii) any other Indebtedness of the Company, whether
outstanding on the date of the Indenture or thereafter created, incurred, assumed, guaranteed or in effect guaranteed by the Company (including all deferrals, renewals, extensions or refundings of, or amendments, modifications or supplements to the
foregoing); provided, however, that Senior Indebtedness does not include: (a) Indebtedness evidenced by the Notes; (b) Indebtedness evidenced by the 2 7/8% Convertible Notes; (c) Indebtedness evidenced by the 2.50% Convertible Notes; (d) Indebtedness of the Company to any Subsidiary of the Company, except to the extent such Indebtedness
is pledged by such Subsidiary as security for any Senior Indebtedness of such Subsidiary; (e) any liability for federal, state, foreign, local or other taxes owed or owing by the Company; (f) accounts payable or other liabilities of the
Company to trade creditors arising in the ordinary course of business, and (g) any Indebtedness in which the instrument creating or evidencing the same or the assumption or guarantee thereof expressly provides that such Indebtedness is
pari passu with, or is subordinated to, the Notes. 
 “Senior Subordinated Indebtedness” of the Company means
the Notes and any other Indebtedness of the Company that specifically provides that such Indebtedness is to rank pari passu with the Notes in right of payment and is not subordinated by its terms in right of payment to any Indebtedness
or other obligation of the Company which is not Senior Indebtedness. 
 “Significant Subsidiary” means, as of any date of
determination, a Subsidiary of the Company that would constitute a “significant subsidiary” as such term is defined under Rule 1-02(w) of Regulation S-X of the Commission as in effect on the date of this Indenture. 
 “Subordinated Indebtedness” means any Indebtedness of the Company (whether outstanding on the date of this Indenture or thereafter Incurred)
that is subordinate or junior in right of payment to the Notes pursuant to a written agreement. 
 “Subsidiary” means, with respect
to any Person, (i) any corporation, association or other business entity of which more than 50% of the total voting power of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of that Person (or a combination thereof) and (ii) any partnership
(a) the sole general partner or managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are such Person or of one or more subsidiaries of such Person (or any combination
thereof). 
 “Termination of Trading” will be deemed to have occurred if the Common Stock (or other common stock, depositary
receipts, ordinary shares or other certificates representing common equity interests into which the Notes are then convertible) is not listed for trading on a United States national securities exchange. 
 “Trading Day” means a day on which (i) there is no Market Disruption Event and (ii) trading in securities generally occurs on the New
York Stock Exchange or, if the Common Stock is not then listed on the New York Stock Exchange, on the principal other United States national or regional securities exchange on which the Common Stock is then listed or, if the 

  

 9 

 
Common Stock is not then listed on a United States national or regional securities exchange, on the principal other market on which the Common Stock is then
traded. If the Common Stock (or other security for which a Daily VWAP must be determined) is not so listed or quoted, “Trading Day” means a Business Day. 
 “Trading Price” means, on any date, the average of the secondary market bid quotations per $1,000 principal amount of Notes obtained by the Trustee for $10,000,000 principal amount of Notes at approximately
3:30 p.m., New York City time, on such date from three independent nationally recognized securities dealers selected by the Company; provided that if at least three such bids cannot reasonably be obtained by the Trustee, but two bids are
obtained, then the average of the two such bids shall be used, and if only one such bid can reasonably be obtained by the Trustee, that one bid shall be used ; provided further that if the Trustee cannot reasonably obtain at least one bid for
$10,000,000 principal amount of Notes from a nationally recognized securities dealer, then the Trading Price per $1,000 principal amount of Notes on such date shall be deemed to be less than 98% of the product of (a) the number of shares of
Common Stock issuable upon conversion of $1,000 principal amount of Notes and (b) the Closing Sale Price on such date. 
 “Trigger
Event” has the meaning specified in Section 14.06(d). 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as
amended, as it was in force at the date of this Indenture, except as provided in Sections 10.03 and 14.07; provided that if the Trust Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean,
to the extent required by such amendment, the Trust Indenture Act of 1939 as so amended. 
 “Trustee” means Well Fargo Bank,
National Association, and its successors and any corporation resulting from or surviving any consolidation or merger to which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder.

 ARTICLE 2 
 ISSUE,
DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES 
 Section 2.01 Designation Amount and Issue of Notes. The Notes
shall be designated as “16% Convertible Senior Subordinated Notes due 2016.” Notes not to exceed the aggregate principal amount of $64,000,000 (except pursuant to Sections 2.05, 2.06, 3.03, 3.05, 3.06, 3.10 and 15.02 hereof) upon the
execution of this Indenture, or from time to time thereafter, may be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the written order of the
Company, signed by an Officer, without any further action by the Company hereunder. 
 Section 2.02 Form of Notes. The Notes and
the Trustee’s certificate of authentication to be borne by such Notes shall be substantially in the form set forth in Exhibit A. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and
are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company and 

  

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the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
 Any of the Notes may have such letters, numbers or other marks of identification and such notations, legends, endorsements or changes as the officers
executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required by the Custodian, the Depositary or by The NASDAQ OMX Group, Inc.
in order for the Notes to be tradable on The Portal Market or as may be required for the Notes to be tradable on any other market developed for trading of securities pursuant to Rule 144A or as may be required to comply with any applicable law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed, or to conform to usage, or to indicate any special limitations or
restrictions to which any particular Notes are subject. 
 So long as the Notes are eligible for book-entry settlement with the Depositary,
or unless otherwise required by law, or otherwise contemplated by Section 2.05(a), all of the Notes will be represented by one or more Notes in global form registered in the name of the Depositary or the nominee of the Depositary (a
“Global Note”). The transfer and exchange of beneficial interests in any such Global Note shall be effected through the Depositary in accordance with this Indenture and the applicable procedures of the Depositary. Except as provided in
Section 2.05(a), beneficial owners of a Global Note shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered
holders of such Global Note. 
 Any Global Note shall represent such of the outstanding Notes as shall be specified therein and shall provide
that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be increased or reduced to reflect redemptions,
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Notes in accordance with this Indenture. Payment of principal of and Interest on any Global Note shall be made to the holder of such Note.

 Section 2.03 Date and Denomination of Notes; Payments of Interest. The Notes shall be issuable in registered form without
coupons in denominations of $1,000 principal amount and integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear Interest from the date specified on the face of the form of Note attached as Exhibit A
hereto. Interest on the Notes shall be computed on the basis of a three hundred sixty (360)-day year comprised of twelve (12) thirty (30)-day months. 
 The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the close of business on any record date with respect to any interest payment date shall be entitled to receive the
Interest payable on such interest payment date, except that the Interest payable upon redemption or repurchase will be payable to the Person to whom principal 

  

 11 

 
is payable pursuant to such redemption or repurchase (unless the redemption date or the repurchase date, as the case may be, falls after a record date and on
or prior to the corresponding interest payment date, in which case accrued and unpaid Interest to, but excluding, such redemption date or repurchase date shall be payable on such interest payment date to the holders of such Notes registered as such
on the applicable record date). 
 Notwithstanding the foregoing, if any Note (or portion thereof) is converted during the period after a
record date for the payment of Interest to, but excluding, the next succeeding interest payment date and such Note (or portion thereof) has been called or tendered for redemption on a redemption date which occurs during such period, the Company
shall not be required to pay interest on such interest payment date in respect of any such Note (or portion thereof). Interest shall be payable at the office of the Company maintained by the Company for such purposes, which shall initially be an
office or agency of the Trustee. The Company shall pay Interest (i) on any Notes in certificated form by (x) check mailed to the address of the Person entitled thereto as it appears in the Note Register (or upon written notice, by wire
transfer in immediately available funds, if such Person is entitled to Interest on aggregate principal in excess of $2 million) or (y) by transfer to an account maintained by such person in the United States or (ii) on any Global Note by
wire transfer of immediately available funds to the account of the Depositary or its nominee. The term “record date” with respect to any interest payment date shall mean the May 15 or November 15 preceding the applicable
June 1 or December 1 interest payment date, respectively. 
 Any Interest on any Note which is payable, but is not punctually paid
or duly provided for, on any June 1 or December 1 (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Noteholder on the relevant record date by virtue of his having been such Noteholder, and such
Defaulted Interest shall be paid by the Company, at its election in each case, as provided in clause 1 or 2 below: 
  

	 	(1)	 The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at
the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each
Note and the date of the proposed payment (which shall be not less than twenty-five (25) days after the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Interest, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause
provided. Thereupon the Company shall fix a special record date for the payment of such Defaulted Interest which shall be not more than fifteen (15) days and not less than ten (10) days prior to the date of the proposed payment, and not
less than ten (10) days after the receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify the Trustee of such special record date and, 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 sent to each holder at 

  

 12 

	 	 
such holder’s address as it appears in the Note Register, not less than ten (10) days prior to such special record date. Notice of the proposed
payment of such Defaulted Interest and the special record date therefor having been so sent, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of
business on such special record date and shall no longer be payable pursuant to the following clause (2) of this Section 2.03. 

  

	 	(2)	The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on
which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause,
such manner of payment shall be deemed practicable by the Trustee. 

 Section 2.04 Execution of Notes. The Notes
shall be signed in the name and on behalf of the Company by the manual or facsimile signature of its Chairman of the Board, Chief Executive Officer, President or any Vice President (whether or not designated by a number or numbers or word or words
added before or after the title “Vice President”) and attested by the manual or facsimile signature of its Secretary or any of its Assistant Secretaries or its Treasurer or any of its Assistant Treasurers (which may be printed, engraved or
otherwise reproduced thereon, by facsimile or otherwise). 
 Notes bearing the manual or facsimile signatures 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 Notes or did not hold such offices at the date of
such Notes. 
 Only such Notes as shall bear thereon a certificate of authentication substantially in the form set forth on the form of Note
attached as Exhibit A hereto, manually executed by the Trustee (or an authenticating agent appointed by the Trustee as provided by Section 16.12), shall be entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company shall be conclusive evidence that the Note so authenticated has been duly authenticated and delivered hereunder and that the holder is
entitled to the benefits of this Indenture. 
 Section 2.05 Exchange and Registration of Transfer of Notes; Restrictions on
Transfer. 
 (a) The Company shall cause to be kept at the Corporate Trust Office a register (the register maintained in such office and
in any other office or agency of the Company designated pursuant to Section 4.02 being herein sometimes collectively referred to as the “Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Notes and of transfers of Notes. The Trustee is hereby appointed “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided. The Company may appoint one or more
co-registrars in accordance with Section 4.02. 
  

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 Upon surrender for registration of transfer of any Note to the Note Registrar or any co-registrar, and
satisfaction of the requirements for such transfer set forth in this Section 2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any
authorized denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this Indenture. 
 Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such office or agency maintained by the Company pursuant to
Section 4.02. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes which the Noteholder making the exchange is entitled to receive bearing registration numbers
not contemporaneously outstanding. 
 All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations
of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
 All Notes presented or surrendered for registration of transfer or for exchange, redemption, repurchase or conversion shall (if so required by the Company or the Note Registrar) be duly endorsed, or be accompanied by
a written instrument or instruments of transfer in form satisfactory to the Company, and the Notes shall be duly executed by the Noteholder thereof or his attorney duly authorized in writing. 
 No service charge shall be made to any holder for any registration of, transfer or exchange of Notes, but the Company may require payment by the holder
of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes. 
 Neither the Company nor the Trustee nor any Note Registrar shall be required to exchange or register a transfer of (a) any Notes for a period of fifteen (15) days next preceding any selection of Notes to be
redeemed, (b) any Notes or portions thereof called for redemption pursuant to Section 3.02, (c) any Notes or portions thereof surrendered for conversion pursuant to Article 14, (d) any Notes or portions thereof tendered for
repurchase (and not withdrawn) pursuant to Section 3.05 or (e) any Notes or portions thereof tendered for repurchase (and not withdrawn) pursuant to Section 3.06. 
 (b) The following provisions shall apply only to Global Notes: 
 (i) Each Global Note authenticated under this Indenture shall be registered in the name of the Depositary or a nominee thereof and
delivered to such Depositary or a nominee thereof or Custodian therefor, and each such Global Note shall constitute a single Note for all purposes of this Indenture. 
 (ii) Notwithstanding any other provision in this Indenture, no Global Note may be exchanged in whole or in part for Notes registered, and
no transfer of a Global Note in whole or in part may be registered, in the name of any Person other than the Depositary or a nominee thereof, unless (A) the Depositary (i) has notified the Company 

  

 14 

 
that it is unwilling or unable to continue as Depositary for such Global Note and a successor depositary has not been appointed by the Company within ninety
(90) days or (ii) has ceased to be a clearing agency registered under the Exchange Act and a successor depositary has not been appointed by the Company within ninety days, (B) an Event of Default has occurred and the maturity of the
Notes shall have been accelerated in accordance with Section 6.01 and any Noteholder shall have given written notice to the Company requesting the issuance of definitive Notes or (C) the Company, in its sole discretion, notifies the
Trustee in writing that it no longer wishes to have all the Notes represented by Global Notes. Any Global Note exchanged pursuant to clause (A) or (B) above shall be so exchanged in whole and not in part and any Global Note exchanged
pursuant to clause (C) above may be exchanged in whole or from time to time in part as directed by the Company. Any Note issued in exchange for a Global Note or any portion thereof shall be a Global Note; provided that any such Note so
issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Note. 
 (iii) Securities issued in exchange for a Global Note or any portion thereof pursuant to clause (ii) above shall be issued in definitive, fully registered form, without interest coupons, shall have an aggregate principal amount equal
to that of such Global Note or portion thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the Depositary shall designate and shall bear any legends required hereunder. Any Global Note to be
exchanged in whole shall be surrendered by the Depositary to the Trustee, as Note Registrar. With regard to any Global Note to be exchanged in part, either such Global Note shall be so surrendered for exchange or, if the Trustee is acting as
Custodian for the Depositary or its nominee with respect to such Global Note, the principal amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of
the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make available for delivery the Note issuable on such exchange to or upon the written order of the Depositary or an authorized representative thereof. 

(iv) In the event of the occurrence of any of the events specified in clause (ii) above, the Company will promptly make available
to the Trustee a reasonable supply of certificated Notes in definitive, fully registered form, without interest coupons. 
 (v) Neither any members of, or participants in, the Depositary (“Agent Members”) nor any other Persons on whose behalf Agent Members may act shall have any rights under this Indenture with respect to any Global Note registered in
the name of the Depositary or any nominee thereof, and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Note
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by
the Depositary or such nominee, as the case may be, or impair, as among the Depositary, its Agent Members and any other Person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the exercise of
the rights of a holder of any Note. 
  

 15 

 (vi) At such time as all interests in a Global Note have been redeemed, repurchased,
converted, canceled or exchanged for Notes in certificated form, such Global Note shall, upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions existing between the Depositary and the Custodian. At
any time prior to such cancellation, if any interest in a Global Note is redeemed, repurchased, converted, canceled or exchanged for Notes in certificated form, the principal amount of such Global Note shall, in accordance with the standing
procedures and instructions existing between the Depositary and the Custodian, be appropriately reduced, and an endorsement shall be made on such Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such
reduction. 
 (c) Every Note that bears or is required under this Section 2.05(c) to bear the legend set forth in this
Section 2.05(c) (together with any Common Stock issued upon conversion of the Notes and required to bear the legend set forth in Section 2.05(d), collectively, the “Restricted Securities”) shall be subject to the restrictions on
transfer set forth in this Section 2.05(c) (including those set forth in the legend below) unless such restrictions on transfer shall be waived by written consent of the Company, and the holder of each such Restricted Security, by such
Noteholder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used in this Section 2.05(c), the term “transfer” encompasses any sale, pledge, loan, transfer or other disposition whatsoever of any
Restricted Security or any interest therein. 
 Until the expiration of the holding period applicable to sales thereof under Rule 144(b)(1)
under the Securities Act (or any successor provision), any certificate evidencing such Note (and all securities issued in exchange therefor or substitution thereof, other than Common Stock, if any, issued upon conversion thereof, which shall bear
the legend set forth in Section 2.05(d), if applicable) shall bear a legend in substantially the following form, unless such Note has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and
which continues to be effective at the time of such transfer) or pursuant to Rule 144 under the Securities Act or any similar provision then in force, or unless otherwise agreed by the Company in writing, with written notice thereof to the Trustee:

 THE NOTE EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER”
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (OR ANY SUCCESSOR PROVISIONS); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE NOTE EVIDENCED HEREBY UNDER RULE 144(b)(1) UNDER THE SECURITIES
ACT (OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE EXCEPT (A) TO HEADWATERS INCORPORATED OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, 

  

 16 

 
(C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR (D) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), IT WILL FURNISH TO WELLS
FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE TRUSTEE MAY REASONABLY REQUIRE 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 (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND
WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT TO CLAUSE 2(D) ABOVE OR UPON ANY TRANSFER OF THIS NOTE UNDER RULE 144(b)(1) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS A PROVISION REQUIRING
THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION. 
 Any Note (or security issued in
exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with their terms or as to conditions for removal of the foregoing legend set forth therein have been satisfied may, upon surrender of such
Note for exchange to the Note Registrar in accordance with the provisions of this Section 2.05, be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this
Section 2.05(c). If the Restricted Security surrendered for exchange is represented by a Global Note bearing the legend set forth in this Section 2.05(c), the principal amount of the legended Global Note shall be reduced by the appropriate
principal amount and the principal amount of a Global Note without the legend set forth in this Section 2.05(c) shall be increased by an equal principal amount. If a Global Note without the legend set forth in this Section 2.05(c) is not
then outstanding, the Company shall execute and the Trustee shall authenticate and deliver an unlegended Global Note to the Depositary. 
 (d) Until the expiration of the holding period applicable to sales thereof under Rule 144(b)(1) under the Securities Act (or any successor provision), any stock certificate representing Common Stock issued upon conversion of any Note shall
bear a legend in substantially the following form, unless such Common Stock has been sold pursuant to a registration statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such
transfer) or pursuant to Rule 144 under the Securities Act or any similar provision then in force, or such Common Stock has been issued upon conversion of Notes that have been transferred pursuant to a registration statement that has been declared
effective under the Securities Act or pursuant to Rule 144 under the Securities Act or 

  

 17 

 
any similar provision then in force, or unless otherwise agreed by the Company in writing with written notice thereof to the transfer agent: 
 THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF AGREES THAT UNTIL THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE COMMON STOCK EVIDENCED HEREBY
UNDER RULE 144(b)(1) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION); (1) IT WILL NOT RESELL OR OTHERWISE TRANSFER THE COMMON STOCK EVIDENCED HEREBY EXCEPT (A) TO HEADWATERS INCORPORATED OR TO ANY SUBSIDIARY THEREOF, (B) TO A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN COMPLIANCE WITH RULE 144A, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR
(D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER); (2) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE
1(D) ABOVE), IT WILL FURNISH TO AMERICAN STOCK TRANSFER & TRUST COMPANY, AS TRANSFER AGENT (OR A SUCCESSOR TRANSFER AGENT, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE 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 (3) IT WILL DELIVER TO EACH PERSON TO WHOM THE COMMON STOCK
EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 1(D) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY PURSUANT TO
CLAUSE 1(D) ABOVE OR UPON ANY TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY AFTER THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE SECURITY EVIDENCED HEREBY UNDER RULE 144(b)(1) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).

 Any such Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms or as to which the
conditions for removal of the foregoing legend set forth therein have been satisfied may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the

  

 18 

 
Common Stock, be exchanged for a new certificate or certificates for a like number of shares of Common Stock, which shall not bear the restrictive legend
required by this Section 2.05(d). 
 (e) Any Note or Common Stock issued upon the conversion of a Note that, prior to the expiration of
the holding period applicable to sales thereof under Rule 144(b)(1) under the Securities Act (or any successor provision), is purchased or owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate unless
registered under the Securities Act or resold pursuant to an exemption from the registration requirements of the Securities Act in a transaction which results in such Notes or Common Stock, as the case may be, no longer being “restricted
securities” (as defined under Rule 144). 
 (f) The Company and the Trustee shall have no responsibility or obligation to any Agent
Members or any other Person with respect to the accuracy of the books or records, or the acts or omissions, of the Depositary or its nominee or of any participant or member thereof, with respect to any ownership interest in the Notes or with respect
to the delivery to any Agent Member or other Person (other than the Depositary) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Notes. All notices and communications to be given to the
Noteholder and all payments to be made to Noteholders under the Notes shall be given or made only to or upon the order of the registered Noteholders (which shall be the Depositary or its nominee in the case of a Global Note). The rights of
beneficial owners in any Global Note shall be exercised only through the Depositary subject to the customary procedures of the Depositary. The Trustee may rely and shall be fully protected in relying upon information furnished by the Depositary with
respect to its Agent Members. 
 The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any
restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers between or among Agent Members in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof. 
 Section 2.06 Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become mutilated or be
destroyed, lost or stolen, the Company in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and make available for delivery, a new Note, bearing a number not
contemporaneously outstanding, in exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed, lost or stolen. In every case, the applicant for a substituted Note shall furnish to the Company, to the
Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution, and, in every case
of destruction, loss or theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership
thereof. 
 Following receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory security or indemnity and
evidence, as described in the preceding paragraph, the 

  

 19 

 
Trustee or such authenticating agent may authenticate any such substituted Note and make available for delivery such Note. Upon the issuance of any
substituted Note, the Company may require the payment by the holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note
which has matured or is about to mature or has been called for redemption or has been tendered for repurchase upon a Designated Event (and not withdrawn) or has been surrendered for repurchase on a Repurchase Date (and not withdrawn) or is to be
converted into cash and, if applicable, Common Stock shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Note, pay or authorize the payment of or convert or authorize the conversion of the same
(without surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or in connection with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the
Company, the Trustee and, if applicable, any paying agent or conversion agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 
 Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the fact that any Note is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set forth in)
this Indenture equally and proportionately with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to
the replacement or payment or conversion or redemption or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the
contrary with respect to the replacement or payment or conversion or redemption or repurchase of negotiable instruments or other securities without their surrender. 
 Section 2.07 Temporary Notes. Pending the preparation of Notes in certificated form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon the written
request of the Company, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of the Notes in certificated form, but with such omissions,
insertions and variations as may be appropriate for temporary Notes, all as may be determined by the Company. Every such temporary Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same
conditions and in substantially the same manner, and with the same effect, as the Notes in certificated form. Without unreasonable delay, the Company will execute and deliver to the Trustee or such authenticating agent Notes in certificated form and
thereupon any or all temporary Notes may be surrendered in exchange therefor, at each office or agency maintained by the Company pursuant to Section 4.02 and the Trustee or such authenticating agent shall authenticate and make available for
delivery in exchange for such temporary Notes an equal aggregate principal amount of Notes in certificated form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Notes
shall in all respects be entitled to the same 

  

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benefits and subject to the same limitations under this Indenture as Notes in certificated form authenticated and delivered hereunder. 
 Section 2.08 Cancellation of Notes. All Notes surrendered for the purpose of payment, redemption, repurchase, conversion, exchange or
registration of transfer shall, if surrendered to the Company or any paying agent or any Note Registrar or any conversion agent, be surrendered to the Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Indenture. The Trustee shall dispose of such canceled Notes in accordance with its customary procedures. If the Company shall acquire
any of the Notes, such acquisition shall not operate as a redemption, repurchase or satisfaction of the indebtedness represented by such Notes unless and until the same are delivered to the Trustee for cancellation. 
 Section 2.09 CUSIP Numbers. The Company in issuing the Notes may use CUSIP numbers (if then generally in use), and, if so, the Trustee shall
use CUSIP numbers in notices of redemption or repurchases as a convenience to Noteholders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Notes or as
contained in any notice of a redemption or a repurchase and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption or repurchase shall not be affected by any defect in or omission of such
numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
 ARTICLE 3 
 REDEMPTION AND REPURCHASE OF NOTES 
 Section 3.01 Redemption of Notes. The Company may not redeem any Notes prior to June 4, 2012. On or after June 4, 2012 and prior to maturity, the Notes may be redeemed at the option of the Company, in whole or
in part at any time and from time to time, upon notice as set forth in Section 3.02, at a cash redemption price equal to 100% of the principal amount of the Notes being redeemed, together with accrued and unpaid Interest, if any, to, but
excluding, the date fixed for redemption; provided that if the redemption date falls after a record date and on or prior to the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding,
the date fixed for redemption shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date. 
 Section 3.02 Notice of Redemption; Selection of Notes. In case the Company shall desire to exercise the right to redeem all or, as the case
may be, any part of the Notes pursuant to Section 3.01, it shall fix a date for redemption and it or, at its written request received by the Trustee not fewer than forty-five (45) days prior (or such shorter period of time as may be
acceptable to the Trustee) to the date fixed for redemption, the Trustee in the name of and at the expense of the Company, shall send or cause to be sent a notice of such redemption not fewer than twenty (20) nor more than sixty (60) days
prior to the redemption date to each holder of Notes so to be redeemed as a whole or in part at its last address as the same appears on the Note Register; provided that if the Company shall give such notice, it shall also give written notice
of the redemption date to the Trustee. The notice, if sent in the manner herein provided, shall be 

  

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conclusively presumed to have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice or any defect in the
notice to the holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. Concurrently with the sending of any such notice of redemption, the Company shall
issue a press release announcing such redemption, the form and content of which press release shall be determined by the Company in its sole discretion. The failure to issue any such press release or any defect therein shall not affect the validity
of the redemption notice or any of the proceedings for the redemption of any Note called for redemption. 
 Each such notice of redemption
shall specify the aggregate principal amount of Notes to be redeemed, the CUSIP number or numbers of the Notes being redeemed, the date fixed for redemption (which shall be a Business Day), the redemption price at which Notes are to be redeemed, the
place or places of payment, that payment will be made upon presentation and surrender of such Notes, that Interest accrued to the date fixed for redemption will be paid as specified in said notice, and that on and after said date Interest thereon or
on the portion thereof to be redeemed will cease to accrue. Such notice shall also state the current Conversion Rate and the date on which the right to convert such Notes or portions thereof will expire. If fewer than all the Notes are to be
redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP numbers, if any). In case any Note is to be redeemed in part only, the notice of redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that, on and after the redemption date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be issued. 
 On or prior to the redemption date specified in the notice of redemption given as provided in this Section 3.02, the Company will deposit with the
Trustee or with one or more paying agents (or, if the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 4.04) an amount of money in immediately available funds sufficient to redeem on the
redemption date all the Notes (or portions thereof) so called for redemption (other than those theretofore surrendered for conversion) at the appropriate redemption price, together with accrued Interest to, but excluding, the redemption date;
provided that if such payment is made on the redemption date it must be received by the Trustee or paying agent, as the case may be, by 10:00 a.m. New York City time on such date. The Company shall be entitled to retain any interest, yield or
gain on amounts deposited with the Trustee or any paying agent pursuant to this Section 3.02 in excess of amounts required hereunder to pay the redemption price and accrued Interest to, but excluding, the redemption date. If any Note called for
redemption is converted pursuant hereto prior to such redemption date, any money deposited with the Trustee or any paying agent or so segregated and held in trust for the redemption of such Note shall be paid to the Company upon its written request,
or, if then held by the Company, shall be discharged from such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written notice in the form of an Officer’s Certificate not fewer than forty-five (45) days (or
such shorter period of time as may be acceptable to the Trustee) prior to the redemption date as to the aggregate principal amount of Notes to be redeemed. 
 If less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed (in principal amounts of $1,000
or multiples thereof) by lot, on a pro rata basis or by another method 

  

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the Trustee deems fair and appropriate. If any Note selected for partial redemption is submitted for conversion in part after such selection, the portion of
such Note submitted for conversion shall be deemed (so far as may be possible) to be the portion to be selected for redemption. The Notes (or portions thereof) so selected shall be deemed duly selected for redemption for all purposes hereof,
notwithstanding that any such Note is submitted for conversion in part before the sending of the notice of redemption. 
 Upon any redemption
of less than all of the outstanding Notes, the Company and the Trustee may (but need not), solely for purposes of determining the pro rata allocation among such Notes as are unconverted and outstanding at the time of redemption, treat as outstanding
any Notes surrendered for conversion during the period of fifteen (15) days next preceding the sending of a notice of redemption and may (but need not) treat as outstanding any Note authenticated and delivered during such period in exchange for
the unconverted portion of any Note converted in part during such period. 
 Section 3.03 Payment of Notes Called for Redemption by
the Company. If notice of redemption has been given as provided in Section 3.02, the Notes or portion of Notes with respect to which such notice has been given shall, unless converted pursuant to the terms hereof, become due and payable on
the date fixed for redemption and at the place or places stated in such notice at the applicable redemption price, together with Interest accrued to (but excluding) the redemption date, and on and after said date (unless the Company shall default in
the payment of such Notes at the redemption price, together with Interest accrued to said date) Interest on the Notes or portion of Notes so called for redemption shall cease to accrue and, after the close of business on the Business Day immediately
preceding the redemption date (unless the Company shall default in the payment of such Notes at the redemption price, together with Interest accrued to said date) such Notes shall cease to be convertible and, except as provided in Section 7.05
and Section 12.04, to be entitled to any benefit or security under this Indenture, and the holders thereof shall have no right in respect of such Notes except the right to receive the redemption price thereof and unpaid Interest to (but
excluding) the redemption date. On presentation and surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Company at the applicable redemption
price, together with Interest accrued thereon to, but excluding, the redemption date; provided that if the redemption date falls after a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest, if
any, to, but excluding, the date fixed for redemption shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead of the holders surrendering such Notes for redemption on such date.

 Upon presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for
delivery to the holder thereof, at the expense of the Company, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented. 
 Notwithstanding the foregoing, the Trustee shall not redeem any Notes or send any notice of redemption during the continuance of a default in payment of
Interest on the Notes. If any Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the redemption date at a rate 

  

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equal to 1% per annum plus the rate borne by the Note and such Note shall remain convertible until the principal and Interest shall have been paid or
duly provided for. 
 Section 3.04 Conversion Arrangement on Call for Redemption. In connection with any redemption of Notes, the
Company may arrange for the purchase and conversion of any Notes by an agreement with one or more investment banks or other purchasers to purchase such Notes by paying to the Trustee in trust for the Noteholders, on or before the date fixed for
redemption, an amount not less than the applicable redemption price, together with Interest accrued to, but excluding, the date fixed for redemption, of such Notes. Notwithstanding anything to the contrary contained in this Article 3, the obligation
of the Company to pay the redemption price of such Notes, together with Interest accrued to, but excluding, the date fixed for redemption, shall be deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers. If
such an agreement is entered into, a copy of which will be filed with the Trustee prior to the date fixed for redemption, any Notes not duly surrendered for conversion by the holders thereof may, at the option of the Company, be deemed, to the
fullest extent permitted by law, acquired by such purchasers from such holders and (notwithstanding anything to the contrary contained in Article 15) surrendered by such purchasers for conversion, all as of immediately prior to the close of business
on the date fixed for redemption (and the right to convert any such Notes shall be extended through such time), subject to payment of the above amount as aforesaid. At the direction of the Company, the Trustee shall hold and dispose of any such
amount paid to it in the same manner as it would monies deposited with it by the Company for the redemption of Notes. Without the Trustee’s prior written consent, no arrangement between the Company and such purchasers for the purchase and
conversion of any Notes shall increase or otherwise affect any of the powers, duties, responsibilities or obligations of the Trustee as set forth in this Indenture. 
 Section 3.05 Repurchase at Option of Holders upon a Designated Event. 
 (a) If there shall occur
a Designated Event at any time prior to maturity of the Notes, then each Noteholder shall have the right, at such holder’s option, to require the Company to repurchase all of such holder’s Notes, or any portion thereof that is an integral
multiple of $1,000 principal amount, on the date (the “Designated Event Repurchase Date”) specified by the Company that is thirty (30) days after the date of the Designated Event Notice (as defined in Section 3.05(b)) of such
Designated Event at a cash repurchase price equal to 100% of the principal amount thereof, together with accrued Interest, if any, to, but excluding, the Designated Event Repurchase Date; provided that if such Designated Event Repurchase Date
falls after a record date and on or prior to the corresponding interest payment date, then accrued and unpaid Interest, if any, to, but excluding the Designated Event Repurchase Date shall be paid on such interest payment date to the holders of
record of the Notes on the applicable record date instead of the holders surrendering the Notes for repurchase on such date. Repurchases of Notes under this Section 3.05 shall be made, at the option of the holder thereof, upon: 
 (i) delivery to the Trustee (or other paying agent appointed by the Company) by a holder of a duly completed notice (the “Designated
Event Repurchase Notice”) in the form set forth on the reverse of the Note prior to the close of business on the Designated Event Expiration Time; and 
  

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 (ii) delivery or book-entry transfer of the Notes to the Trustee (or other paying agent
appointed by the Company) at any time after delivery of the Designated Event Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other paying agent appointed by the Company) as provided in
Section 4.02, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to this Section 3.05 only if the Note so delivered to the Trustee
(or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related Designated Event Repurchase Notice. 
 The Company shall purchase from the holder thereof, pursuant to this Section 3.05, a portion of a Note, only if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 
 Any purchase by the Company
contemplated pursuant to the provisions of this Section 3.05 shall be consummated by the delivery of the consideration to be received by the holder promptly following the later of the Designated Event Repurchase Date and the time of the
book-entry transfer or delivery of the Note. 
 Notwithstanding anything herein to the contrary, any holder delivering to the Trustee (or
other paying agent appointed by the Company) the Designated Event Repurchase Notice contemplated by this Section 3.05 shall have the right to withdraw such Designated Event Repurchase Notice at any time prior to the close of business on the
Designated Event Expiration Time by delivery of a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.05(c) below. 
 The Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Designated Event Repurchase
Notice or written notice of withdrawal thereof. 
 (b) On or before the fifteenth day after the occurrence of a Designated Event, the Company
or at its written request (which must be received by the Trustee at least five (5) Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree in writing to a shorter period), the
Trustee, in the name of and at the expense of the Company, shall send or cause to be sent to all holders of record on the date of the Designated Event a notice (the “Designated Event Notice”) of the occurrence of such Designated Event and
of the repurchase right at the option of the holders arising as a result thereof. Such notice shall be sent in the manner and with the effect set forth in the first paragraph of Section 3.02 (without regard for the time limits set forth
therein). If the Company shall give such notice, the Company shall also deliver a copy of the Designated Event Notice to the Trustee at such time as it is sent to Noteholders. Concurrently with the sending of any Designated Event Notice, the Company
shall issue a press release announcing such Designated Event referred to in the Designated Event Notice, the form and content of which press release shall be determined by the Company in its sole discretion. The failure to issue any such press
release or any defect therein shall not affect the validity of the Designated Event Notice or any 

  

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proceedings for the repurchase of any Note which any Noteholder may elect to have the Company repurchase as provided in this Section 3.05. 

Each Designated Event Notice shall specify the circumstances constituting the Designated Event, the Designated Event Repurchase Date, the price at
which the Company shall be obligated to repurchase Notes, that the holder must exercise the repurchase right on or prior to the close of business on the Business Day immediately preceding the Designated Event Repurchase Date (the “Designated
Event Expiration Time”), that the holder shall have the right to withdraw any Notes surrendered prior to the Designated Event Expiration Time, a description of the procedure which a Noteholder must follow to exercise such repurchase right and
to withdraw any surrendered Notes, the place or places where the holder is to surrender such holder’s Notes, the amount of Interest accrued on each Note to the Designated Event Repurchase Date and the CUSIP number or numbers of the Notes (if
then generally in use) and include a form of Designated Event Repurchase Notice. 
 No failure of the Company to give the foregoing notices
and no defect therein shall limit the Noteholders’ repurchase rights or affect the validity of the proceedings for the repurchase of the Notes pursuant to this Section 3.05. 
 (c) A Designated Event Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the office of the Trustee (or other
paying agent appointed by the Company) in accordance with the Designated Event Repurchase Notice at any time prior to the Designated Event Expiration Time, specifying: 
 (i) the certificate number, if any, of the Note in respect of which such notice of withdrawal is being submitted, or the appropriate
Depositary information if the Note in respect of which such notice of withdrawal is being submitted is represented by a Global Note, 
 (ii) the principal amount of the Note with respect to which such notice of withdrawal is being submitted, and 
 (iii) the principal amount, if any, of such Note which remains subject to the original Designated Event Repurchase Notice and which has been or will be delivered for purchase by the Company. 
 (d) On or prior to the Designated Event Repurchase Date, the Company will deposit with the Trustee (or other paying agent appointed by the Company or if
the Company is acting as its own paying agent, set aside, segregate and hold in trust as provided in Section 4.04) an amount of money sufficient to repurchase on the Designated Event Repurchase Date all the Notes to be repurchased on such date
at the appropriate repurchase price, together with accrued Interest to, but excluding, the Designated Event Repurchase Date; provided that if such payment is made on the Designated Event Repurchase Date, it must be received by the Trustee or
paying agent, as the case may be, by 10:00 a.m. New York City time, on such date. Subject to receipt of funds and/or Notes by the Trustee (or other paying agent appointed by the Company), payment for Notes surrendered for repurchase (and not
withdrawn) prior to the Designated Event Expiration Time will be made promptly (but in no event more than five (5) Business Days) 

  

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following the later of (x) the Designated Event Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in
Section 3.05) and (y) the time of delivery of such Note to the Trustee (or other paying agent appointed by the Company) by the holder thereof in the manner required by Section 3.05) by mailing checks for the amount payable to the
holders of such Notes entitled thereto as they shall appear in the Note Register. 
 If the Trustee (or other paying agent appointed by the
Company) holds money sufficient to repurchase on the Designated Event Repurchase Date all the Notes or portions thereof that are to be purchased as of the Designated Event Repurchase Date, then on or after the Designated Event Repurchase Date
(i) the Notes will cease to be outstanding, (ii) Interest on the Notes will cease to accrue, and (iii) all other rights of the holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been made or the
Notes have been delivered to the Trustee or paying agent, other than the right to receive the repurchase price upon delivery of the Notes. 
 (e) In the case of a reclassification, change, consolidation, merger, combination, sale or conveyance to which Section 14.07 applies, in which the Common Stock of the Company is changed or exchanged as a result into the right to
receive stock, securities or other property or assets (including cash), which includes shares of Common Stock of the Company or shares of common stock of another Person that are, or upon issuance will be, traded on a United States national
securities exchange or approved for trading on an established automated over-the-counter trading market in the United States and such shares constitute at the time such change or exchange becomes effective in excess of 50% of the aggregate Fair
Market Value of such stock, securities or other property or assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the Person formed by such consolidation or resulting from such merger or
which acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental indenture (accompanied by an Opinion of Counsel that such supplemental indenture complies with the Trust Indenture Act as in force at the date of
execution of such supplemental indenture) modifying the provisions of this Indenture relating to the right of holders of the Notes to cause the Company to repurchase the Notes following a Designated Event, including without limitation the applicable
provisions of this Section 3.05 and the definitions of Common Stock and Designated Event, as appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply to such
other Person if different from the Company and the common stock issued by such Person (in lieu of the Company and the Common Stock of the Company). 
 (f) The Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act (including, without limitation, filing a Schedule TO or other schedule) to the extent then applicable in connection with
the repurchase rights of the holders of Notes in the event of a Designated Event. 
 Section 3.06 Repurchase of Notes by the Company
at Option of the Holder. Unless the Company has elected to redeem all of the Notes in accordance with Section 3.01, Notes shall be purchased by the Company pursuant to the terms of the Notes at the option of the holder thereof on
June 1, 2012 (the “Repurchase Date”), for cash, at a repurchase price of 100% of the principal amount, plus any accrued and unpaid Interest to, but excluding, the Repurchase Date, subject to 

  

 27 

 
the provisions of Section 3.07(a); provided that no Notes may be repurchased by the Company pursuant to this Section 3.06 if the principal
amount of the Notes has been accelerated and such acceleration has not been rescinded on or prior to the Repurchase Date. Repurchases of Notes under this Section 3.06 shall be made, at the option of the holder thereof, upon: 
 (a) delivery to the Trustee (or other paying agent appointed by the Company) by a holder of a duly completed notice (the “Repurchase Notice”)
in the form set forth on the reverse of the Note during the period beginning at any time from the opening of business on the date that is twenty (20) Business Days prior to the Repurchase Date until the close of business on the date that is two
(2) Business Days prior to the Repurchase Date; and 
 (b) delivery or book-entry transfer of the Notes to the Trustee (or other paying
agent appointed by the Company) at any time after delivery of the Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office or any other office of the Trustee (or other paying agent appointed by the Company) as
provided in Section 4.02, such delivery being a condition to receipt by the holder of the repurchase price therefor; provided that such repurchase price shall be so paid pursuant to this Section 3.06 only if the Note so delivered to
the Trustee (or other paying agent appointed by the Company) shall conform in all respects to the description thereof in the related Repurchase Notice. 
 The Company shall purchase from the holder thereof, pursuant to this Section 3.06, a portion of a Note, only if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Note also apply to the purchase of such portion of such Note. 
 Any purchase by the Company
contemplated pursuant to the provisions of this Section 3.06 shall be consummated by the delivery of the consideration to be received by the holder promptly following the later of the Repurchase Date and the time of the book-entry transfer or
delivery of the Note. 
 Notwithstanding anything herein to the contrary, any holder delivering to the Trustee (or other paying agent
appointed by the Company) a Repurchase Notice contemplated by this Section 3.06 shall have the right to withdraw such Repurchase Notice at any time prior to the close of business on the Business Day immediately preceding the Repurchase Date by
delivery of a written notice of withdrawal to the Trustee (or other paying agent appointed by the Company) in accordance with Section 3.08. The Company is not obligated under this Section 3.06 to repurchase notes listed in such written
notice of withdrawal. 
 The Trustee (or other paying agent appointed by the Company) shall promptly notify the Company of the receipt by it
of any Repurchase Notice or written notice of withdrawal thereof. 
 Section 3.07 Company Repurchase Notice. 
 (a) The Notes to be repurchased on any Repurchase Date pursuant to Section 3.06 will be paid for in cash. Unless the Company has elected to redeem
all of the Notes in accordance with Section 3.01, at least three (3) Business Days before the Company Repurchase Notice Date, the Company shall deliver an Officer’s Certificate to the Trustee specifying: 
  

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 (i) the information required by Section 3.07(b) in the Company Repurchase Notice,
and 
 (ii) whether the Company desires the Trustee to give the Company Repurchase Notice required by Section 3.07(b).

 (b) Unless the Company has elected to redeem all of the Notes in accordance with Section 3.01, in connection with any repurchase of
Notes, the Company shall, no less than twenty (20) Business Days prior to the Repurchase Date (the “Company Repurchase Notice Date”), give notice to holders at their addresses shown in the Note Register setting forth information
specified in this Section 3.07(b) (the “Company Repurchase Notice”). The Company will also give notice to beneficial owners as required by applicable law. 
 The Company Repurchase Notice shall: 
 (i) state the repurchase price and the Repurchase Date
to which the Company Repurchase Notice relates; 
 (ii) include a form of Repurchase Notice; 
 (iii) state the name and address of the Trustee (or other paying agent appointed by the Company); 
 (iv) state that Notes must be surrendered to the Trustee (or other paying agent appointed by the Company) to collect the repurchase price;

 (v) if the Notes are then convertible, state that Notes as to which a Repurchase Notice has been given may be converted
only if the Repurchase Notice is withdrawn in accordance with the terms of this Indenture; and 
 (vi) state the CUSIP number
of the Notes. 
 The Company Repurchase Notice may be given by the Company or, at the Company’s request, the Trustee shall give such
Company Repurchase Notice in the Company’s name and at the Company’s expense. 
 (c) The Company will comply with the provisions of
Rule 13e-4 and any other tender offer rules under the Exchange Act (including, without limitation, filing a Schedule TO or other schedule) to the extent then applicable in connection with the repurchase rights of the holders of Notes. 
 Section 3.08 Effect of Repurchase Notice. Upon receipt by the Trustee (or other paying agent appointed by the Company) of the Repurchase
Notice specified in Section 3.06, the holder of the Note in respect of which such Repurchase Notice was given shall (unless such Repurchase Notice is validly withdrawn) thereafter be entitled to receive solely the repurchase price with respect
to such Note. Such repurchase price shall be paid to such holder, subject to receipt of funds and/or Notes by the Trustee (or other paying agent appointed by the Company), promptly following the later of (x) the Repurchase Date with respect to
such Note (provided the 

  

 29 

 
holder has satisfied the conditions in Section 3.06) and (y) the time of delivery of such Note to the Trustee (or other paying agent appointed by
the Company) by the holder thereof in the manner required by Section 3.06. Notes in respect of which a Repurchase Notice has been given by the holder thereof may not be converted pursuant to Article 14 hereof on or after the date of the
delivery of such Repurchase Notice unless such Repurchase Notice has first been validly withdrawn. 
 A Repurchase Notice may be withdrawn by
means of a written notice of withdrawal delivered to the office of the Trustee (or other paying agent appointed by the Company) in accordance with the Repurchase Notice at any time prior to the close of business on the Business Day immediately
preceding the Repurchase Date, specifying: 
 (a) the certificate number, if any, of the Note in respect of which such notice of withdrawal
is being submitted, or the appropriate Depositary information if the Note in respect of which such notice of withdrawal is being submitted is represented by a Global Note, 
 (b) the principal amount of the Note with respect to which such notice of withdrawal is being submitted, and 
 (c) the principal amount, if any, of such Note which remains subject to the original Repurchase Notice and which has been or will be delivered for
repurchase by the Company. 
 Section 3.09 Deposit of Repurchase Price. 
 (a) Prior to 10:00 a.m. (New York City Time) on the Repurchase Date, the Company shall deposit with the Trustee (or other paying agent appointed by the
Company; or, if the Company or a Subsidiary or an Affiliate of either of them is acting as the paying agent, shall segregate and hold in trust as provided in Section 4.04) an amount of cash (in immediately available funds if deposited on such
Business Day), sufficient to pay the aggregate repurchase price of all the Notes or portions thereof that are to be purchased as of the Repurchase Date. 
 (b) If the Trustee or other paying agent appointed by the Company, or the Company or a Subsidiary or Affiliate of either of them, if such entity is acting as the paying agent, holds cash sufficient to pay the
aggregate repurchase price of all the Notes, or portions thereof that are to be repurchased as of the Repurchase Date, on or after the Repurchase Date (i) the Notes will cease to be outstanding, (ii) Interest on the Notes will cease to
accrue, and (iii) all other rights of the holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or paying agent, other than the right to receive the
repurchase price upon delivery of the Notes. 
 Section 3.10 Notes Repurchased in Part. Upon presentation of any Note repurchased
pursuant to Section 3.05 or 3.06, as the case may be, only in part, the Company shall execute and the Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of the Company, a new Note or Notes, of any
authorized denomination, in aggregate principal amount equal to the unrepurchased portion of the Notes presented. 
 Section 3.11
Repayment to the Company. The Trustee (or other paying agent appointed by the Company) shall return to the Company any cash or money that remains 

  

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unclaimed as provided in Section 12.04, together with interest, if any, thereon, held by them for the payment of the repurchase price pursuant to
Section 3.05 or 3.06, as the case may be; provided that to the extent that the aggregate amount of cash or money deposited by the Company pursuant to Section 3.05(d) or Section 3.09, as the case may be, exceeds the aggregate
repurchase price of the Notes or portions thereof which the Company is obligated to purchase as of the Designated Event Repurchase Date or the Repurchase Date, as the case may be, then, unless otherwise agreed in writing with the Company, promptly
after the Business Day following the Designated Event Repurchase Date or the Repurchase Date, as the case may be, the Trustee shall return any such excess to the Company together with interest, if any, thereon. 
 ARTICLE 4 
 PARTICULAR COVENANTS OF THE
COMPANY 
 Section 4.01 Payment of Principal and Interest. The Company covenants and agrees that it will duly and punctually
pay or cause to be paid the principal of (including the redemption price upon redemption or the repurchase price upon repurchase, in each case pursuant to Article 3) and Interest, on each of the Notes at the places, at the respective times and in
the manner provided herein and in the Notes. 
 Section 4.02 Maintenance of Office or Agency. The Company will maintain an office
or agency where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or repurchase and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office. 
 The Company may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations. The Company will give prompt written notice of any such designation or rescission and of any change in the location of any such other office or agency. 
 The Company hereby initially designates the Trustee as paying agent, Note Registrar, Custodian and conversion agent, and the Corporate Trust Office shall
be considered as one such office or agency of the Company for each of the aforesaid purposes. 
 Section 4.03 Appointments to Fill
Vacancies in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall at all times be a Trustee
hereunder. 
 Section 4.04 Provisions as to Paying Agent. 
 (a) If the Company shall appoint a paying agent other than the Trustee, or if the Trustee shall appoint such a paying agent, the Company will cause such
paying agent to execute 

  

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and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 4.04: 

(i) that it will hold all sums held by it as such agent for the payment of the principal of or Interest on the Notes (whether such sums
have been paid to it by the Company or by any other obligor on the Notes) in trust for the benefit of the holders of the Notes; 
 (ii) that it will give the Trustee notice of any failure by the Company (or by any other obligor on the Notes) to make any payment of the principal of or Interest on the Notes when the same shall be due and payable; and 
 (iii) that at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee
all sums so held in trust. 
 The Company shall, on or before each due date of the principal or Interest on the Notes, deposit with the
paying agent a sum (in funds which are immediately available on the due date for such payment) sufficient to pay such principal or Interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of any failure to
take such action; provided that if such deposit is made on the due date, such deposit shall be received by the paying agent by 10:00 a.m. New York City time, on such date. 
 (b) If the Company shall act as its own paying agent, it will, on or before each due date of the principal of or Interest on the Notes, set aside,
segregate and hold in trust for the benefit of the holders of the Notes a sum sufficient to pay such principal or Interest so becoming due and will promptly notify the Trustee of any failure to take such action and of any failure by the Company (or
any other obligor under the Notes) to make any payment of the principal of or Interest on the Notes when the same shall become due and payable. 
 (c) Anything in this Section 4.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust by the Company or any paying agent hereunder as required by this Section 4.04, such sums to be held by the Trustee upon the trusts herein contained and upon such payment by the Company or any paying agent to the
Trustee, the Company or such paying agent shall be released from all further liability with respect to such sums. 
 (d) Anything in this
Section 4.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 4.04 is subject to Sections 12.03 and 12.04. 
 The Trustee shall not be responsible for the actions of any other paying agents (including the Company if acting as its own paying agent) and shall have no control of any funds held by such other paying agents.

 Section 4.05 Existence. Subject to Article 11, the Company will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence and rights (charter and statutory); provided that the Company shall not be required to preserve any such right if the Company shall determine that the preservation thereof is no longer desirable in
the 

  

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conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Noteholders. 
 Section 4.06 Maintenance of Properties. The Company will cause all properties used or useful in the conduct of its business or the business
of any Significant Subsidiary to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided that nothing in this Section shall prevent the Company
from discontinuing the operation or maintenance of any of such properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business or the business of any subsidiary and not disadvantageous in any material
respect to the Noteholders. 
 Section 4.07 Payment of Taxes and Other Claims. The Company will pay or discharge, or cause to be
paid or discharged, before the same may become delinquent, (i) all taxes, assessments and governmental charges levied or imposed upon the Company or any Significant Subsidiary or upon the income, profits or property of the Company or any
Significant Subsidiary, (ii) all claims for labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the property of the Company or any Significant Subsidiary and (iii) all stamp taxes and other duties, if
any, which may be imposed by the United States or any political subdivision thereof or therein in connection with the issuance, transfer, exchange, conversion, redemption or repurchase of any Notes or with respect to this Indenture; provided
that, in the case of clauses (i) and (ii), the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim (A) if the failure to do so will not, in the aggregate, have a
material adverse impact on the Company, or (B) if the amount, applicability or validity is being contested in good faith by appropriate proceedings. 
 Section 4.08 Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or Interest on the Notes as contemplated herein, wherever enacted, now or at any
time hereafter in force, or which may affect the covenants or the performance of this Indenture and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not,
by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 Section 4.09 Rule 144A Information Requirement. Within the period prior to the expiration of the holding period applicable to sales thereof
under Rule 144(b)(1) under the Securities Act (or any successor provision), the Company covenants and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the Exchange Act, make available to any holder
or beneficial holder of Notes or any Common Stock issued upon conversion thereof which continue to be Restricted Securities in connection with any sale thereof and any prospective purchaser of Notes or such Common Stock designated by such holder or
beneficial holder, the information required pursuant to Rule 144A(d)(4) under the Securities Act 

  

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upon the request of any holder or beneficial holder of the Notes or such Common Stock and it will take such further action as any holder or beneficial holder
of such Notes or such Common Stock may reasonably request, all to the extent required from time to time to enable such holder or beneficial holder to sell its Notes or Common Stock without registration under the Securities Act within the limitation
of the exemption provided by Rule 144A, as such Rule may be amended from time to time. Upon the request of any holder or any beneficial holder of the Notes or such Common Stock, the Company will deliver to such holder a written statement as to
whether it has complied with such requirements. 
 Section 4.10 Compliance Certificate. The Company shall deliver to the Trustee,
within one hundred twenty (120) days after the end of each fiscal year of the Company, a certificate signed by either the principal executive officer, principal financial officer or principal accounting officer of the Company, stating whether
or not to the best knowledge of the signer thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided
hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and the status thereof of which the signer may have knowledge. 
 The Company will deliver to the Trustee, forthwith upon becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this Indenture, or (ii) any
Event of Default, an Officer’s Certificate specifying with particularity such Default or Event of Default and further stating what action the Company has taken, is taking or proposes to take with respect thereto. 
 Any notice required to be given under this Section 4.10 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.

 Section 4.11 Limitation on Senior Subordinated Indebtedness. The Company will not incur any Indebtedness that is subordinate
in right of payment to any Senior Indebtedness of the Company unless such Indebtedness is pari passu with, or subordinated in right of payment to, the Notes. 
 Section 4.12 Additional Interest Notice. In the event that the Company is required to pay Additional Interest to holders of Notes pursuant to the Registration Rights Agreement, the Company will provide
written notice (“Additional Interest Notice”) to the Trustee of the Company’s obligation to pay Additional Interest no later than fifteen (15) days prior to the proposed payment date for the Additional Interest, and the
Additional Interest Notice shall set forth the amount of Additional Interest to be paid by the Company on such payment date. The Trustee shall not at any time be under any duty or responsibility to any holder of Notes to determine the Additional
Interest, or with respect to the nature, extent or calculation of the amount of Additional Interest when made, or with respect to the method employed in such calculation of the Additional Interest. 
  

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 ARTICLE 5 
 NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE 
 Section 5.01
Noteholders’ Lists. The Company covenants and agrees that it will furnish or cause to be furnished to the Trustee, semiannually, not more than fifteen (15) days after each January 1 and July 1 in each year beginning with
January 1, 2009, and at such other times as the Trustee may request in writing, within thirty (30) days after receipt by the Company of any such request (or such lesser time as the Trustee may reasonably request in order to enable it to
timely provide any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require of the names and addresses of the holders of Notes as of a date not more than fifteen (15) days (or such other date as the
Trustee may reasonably request in order to so provide any such notices) prior to the time such information is furnished, except that no such list need be furnished by the Company to the Trustee so long as the Trustee is acting as the sole Note
Registrar. 
 Section 5.02 Preservation and Disclosure of Lists. 
 (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Notes
contained in the most recent list furnished to it as provided in Section 5.01 or maintained by the Trustee in its capacity as Note Registrar or co-registrar in respect of the Notes, if so acting. The Trustee may destroy any list furnished to it
as provided in Section 5.01 upon receipt of a new list so furnished. 
 (b) The rights of Noteholders to communicate with other holders
of Notes with respect to their rights under this Indenture or under the Notes, and the corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act. 
 (c) Every Noteholder, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of holders of Notes made pursuant to the Trust Indenture Act. 
 Section 5.03 Reports by Trustee. 
 (a) Within sixty (60) days after January 1 of each year commencing with the year 2010, the Trustee shall transmit to holders of Notes such reports dated as of January 1 of the year in which such reports are made concerning
the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. In the event that no events have occurred under the applicable sections of the Trust
Indenture Act the Trustee shall be under no duty or obligation to provide such reports. 
 (b) A copy of such report shall, at the time of
such transmission to holders of Notes, be filed by the Trustee with each stock exchange and automated quotation system upon which the Notes are listed (if applicable) and with the Company. The Company will promptly notify the Trustee in writing when
the Notes are listed on any stock exchange or automated quotation system or delisted therefrom. 
  

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 Section 5.04 Reports by Company. The Company shall file with the Trustee (and the Commission
if at any time after the Indenture becomes qualified under the Trust Indenture Act), and transmit to holders of Notes, such information, documents and other reports and such summaries thereof, as may be required pursuant to the Trust Indenture Act
at the times and in the manner provided pursuant to such Act, whether or not the Notes are governed by such Act; provided that any such information, documents or reports required to be filed with the Commission pursuant to Section 13 or
15(d) of the Exchange Act shall be filed with the Trustee within fifteen (15) days after the same is so required to be filed with the Commission. Delivery of such reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s Certificates). 
 ARTICLE 6 
 REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT 
 Section 6.01 Events of Default. In case one or more of the following Events of Default (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body) shall have occurred and be continuing: 
 (a) default in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, whether or not such
payment shall be prohibited by Article 15, and continuance of such default for a period of thirty (30) days; or 
 (b) default in
the payment of the principal of any of the Notes as and when the same shall become due and payable either at maturity or in connection with any redemption, repurchase or otherwise, in each case pursuant to Article 3, by acceleration or otherwise,
whether or not such payment shall be prohibited by Article 15; or 
 (c) default in the Company’s obligation to provide a
Designated Event Notice upon a Designated Event as provided in Section 3.05; or 
 (d) failure on the part of the Company duly to
observe or perform any other of the covenants or agreements on the part of the Company in the Notes or in this Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 6.01
specifically dealt with) continued for a period of sixty (60) days after the date on which written notice of such failure, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or the Company and a
Responsible Officer of the Trustee by the holders of at least twenty-five percent (25%) in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04; or 
 (e) the Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or
its debts under any 

  

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bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of the Company or any substantial part of the property of the Company, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced
against the Company, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due; or 
 (f) an involuntary case or other proceeding shall be commenced against the Company seeking liquidation, reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any substantial part of the property of the Company, and such involuntary case or other
proceeding shall remain undismissed and unstayed for a period of sixty (60) consecutive days; 
 then, and in each and every such case (other than an
Event of Default specified in Section 6.01(e) or 6.01(f)), unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the holders of not less than twenty-five percent (25%) in aggregate
principal amount of the Notes then outstanding hereunder determined in accordance with Section 8.04, by notice in writing to the Company (and to the Trustee if given by Noteholders), may declare the principal of all the Notes, the Interest
accrued thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Notes contained to the contrary notwithstanding. If an Event of
Default specified in Section 6.01(e) or 6.01(f) occurs, the principal of all the Notes and the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further action. This provision, however, is
subject to the conditions that if, at any time after the principal of the Notes shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of Interest upon all Notes and the principal of any and all Notes which shall have become due otherwise than by acceleration (with
interest on overdue installments of Interest (to the extent that payment of such interest is enforceable under applicable law) and on such principal at the rate borne by the Notes, to the date of such payment or deposit) and amounts due to the
Trustee pursuant to Section 7.06, and if any and all defaults under this Indenture, other than the nonpayment of principal of and accrued Interest on Notes which shall have become due by acceleration, shall have been cured or waived pursuant to
Section 6.07, then and in every such case the holders of a majority in aggregate principal amount of the Notes then outstanding, by written notice to the Company and to the Trustee, may waive all Defaults or Events of Default and rescind and
annul such declaration and its consequences; but no such waiver or rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or shall impair any right consequent thereon. The Company shall notify in writing
a Responsible Officer of the Trustee, promptly upon becoming aware thereof, of any Event of Default. 
 In case the Trustee shall have
proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee,
then and in every such case the Company, the holders of Notes, and the Trustee shall be 

  

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restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the holders of Notes, and the
Trustee shall continue as though no such proceeding had been taken. 
 Section 6.02 Payments of Notes on Default; Suit Therefor.
The Company covenants that (a) in case default shall be made in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, and such default shall have continued for a period of thirty
(30) days, or (b) in case default shall be made in the payment of the principal of any of the Notes as and when the same shall have become due and payable, whether at maturity of the Notes or in connection with any redemption, by or under
this Indenture declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Notes, the whole amount that then shall have become due and payable on all such Notes for principal
or Interest, as the case may be, with interest upon the overdue principal and (to the extent that payment of such interest is enforceable under applicable law) upon the overdue installments of Interest at the rate borne by the Notes, plus 1% and, in
addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other amounts due the Trustee under
Section 7.06. Until such demand by the Trustee, the Company may pay the principal of and Interest on the Notes to the registered holders, whether or not the Notes are overdue. 
 In case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be
entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Company or any other obligor on the Notes and collect in the manner provided by law out of the property of the Company or any other obligor on the Notes wherever situated the monies adjudged or decreed to be payable.

 In case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor on the Notes
under Title 11 of the United States Code, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the
Company or such other obligor, the property of the Company or such other obligor, or in the case of any other judicial proceedings relative to the Company or such other obligor upon the Notes, or to the creditors or property of the Company or such
other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section 6.02, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and Interest owing and unpaid in respect of the Notes,
and, in case of any judicial proceedings, to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of the Noteholders allowed in such judicial proceedings relative to
the Company or any other obligor on the Notes, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute the same after the deduction of any
amounts due the Trustee under Section 7.06, and to take any other action with respect to such 

  

 38 

 
claims, including participating as a member of any official committee of creditors, as it reasonably deems necessary or advisable, and, unless prohibited by
law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Noteholders to make such payments to the Trustee, and, in the event
that the Trustee shall consent to the making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances and disbursements, including counsel fees and expenses incurred by it
up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements out of the estate in any such proceedings shall be denied for any reason, payment of the same shall be secured by a
lien on, and shall be paid out of, any and all distributions, dividends, monies, securities and other property which the holders of the Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization
or arrangement or otherwise. 
 All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced
by the Trustee without the possession of any of the Notes, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the holders of the Notes.

 In any proceedings brought by the Trustee (and in any proceedings involving the interpretation of any provision of this Indenture to which
the Trustee shall be a party) the Trustee shall be held to represent all the holders of the Notes, and it shall not be necessary to make any holders of the Notes parties to any such proceedings. 
 Section 6.03 Application of Monies Collected by Trustee. Any monies or property collected by the Trustee pursuant to this Article 6 shall be
applied in the order following, at the date or dates fixed by the Trustee for the distribution of such monies or property, upon presentation of the several Notes and either (i) stamping thereon the payment, if only partially paid, or
(ii) upon surrender thereof, if fully paid. 
 FIRST: To the payment of all amounts due the Trustee under
Section 7.06; 
 SECOND: To holders of Senior Indebtedness of the Company to the extent required by Article 15;

 THIRD: In case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment of Interest
on the Notes in default in the order of the maturity of the installments of such Interest, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments of Interest at the rate borne by the Notes,
such payments to be made ratably to the Persons entitled thereto; 
 FOURTH: In case the principal of the outstanding Notes
shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount then owing and unpaid upon the Notes for principal and Interest, with Interest on the overdue 

  

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principal and (to the extent that such Interest has been collected by the Trustee) upon overdue installments of Interest at the rate borne by the Notes, and
in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal and Interest without preference or priority of principal over Interest, or of Interest over principal,
or of any installment of Interest over any other installment of Interest, or of any Note over any other Note, ratably to the aggregate of such principal and accrued and unpaid Interest; and 
 FIFTH: To the payment of the remainder, if any, to the Company. 
 Section 6.04 Proceedings by Noteholder. No holder of any Note shall have any right by virtue of or by reference to any provision of this
Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any other remedy
hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof, as hereinbefore provided, and unless also the holders of not less than twenty-five percent (25%) in
aggregate principal amount of the Notes then outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable
security or indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity shall have neglected or
refused to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 6.07; it being understood and intended, and being expressly covenanted by
the taker and holder of every Note with every other taker and holder and the Trustee, that no one or more holders of Notes shall have any right in any manner whatever by virtue of or by reference to any provision of this Indenture to affect, disturb
or prejudice the rights of any other holder of Notes, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable
and common benefit of all holders of Notes (except as otherwise provided herein). For the protection and enforcement of this Section 6.04 each and every Noteholder and the Trustee shall be entitled to such relief as can be given either at law
or in equity. 
 Notwithstanding any other provision of this Indenture and any provision of any Note, the right of any holder of any Note to
receive payment of the principal of (including the redemption price upon redemption pursuant to Article 6) and accrued Interest on such Note, on or after the respective due dates expressed in such Note or in the event of redemption, or to institute
suit for the enforcement of any such payment on or after such respective dates against the Company shall not be impaired or affected without the consent of such holder. 
 Anything in this Indenture or the Notes to the contrary notwithstanding, the holder of any Note, without the consent of either the Trustee or the holder of any other Note, in its own behalf and for its own benefit,
may enforce, and may institute and maintain any proceeding suitable to enforce, its rights of conversion as provided herein. 
  

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 Section 6.05 Proceedings by Trustee. In case of an Event of Default, the Trustee may, in its
discretion, proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding
in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in
the Trustee by this Indenture or by law. 
 Section 6.06 Remedies Cumulative and Continuing. Except as provided in
Section 2.06, all powers and remedies given by this Article 6 to the Trustee or to the Noteholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the
Trustee or the holders of the Notes, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any holder of any of the
Notes to exercise any right or power accruing upon any Default or Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or any acquiescence therein, and,
subject to the provisions of Section 6.04, every power and remedy given by this Article 6 or by law to the Trustee or to the Noteholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the
Noteholders. 
 Section 6.07 Direction of Proceedings and Waiver of Defaults by Majority of Noteholders. The holders of a
majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04 shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on the Trustee; provided that (a) such direction shall not be in conflict with any rule of law or with this Indenture, (b) the Trustee may take any other action which is not
inconsistent with such direction, (c) the Trustee may decline to take any action that would benefit some Noteholder to the detriment of other Noteholders and (d) the Trustee may decline to take any action that would involve the Trustee in
personal liability. The holders of a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04 may, on behalf of the holders of all of the Notes, waive any past Default or Event of
Default hereunder and its consequences except (i) a default in the payment of Interest on, or the principal of, the Notes, (ii) a failure by the Company to convert any Notes into cash and, if applicable, Common Stock, (iii) a default
in the payment of the redemption price pursuant to Article 3, (iv) a default in the payment of the repurchase price pursuant to Article 3 or (v) a default in respect of a covenant or provisions hereof which under Article 10 cannot be
modified or amended without the consent of the holders of each or all of the Notes then outstanding or affected thereby. Upon any such waiver, the Company, the Trustee and the holders of the Notes shall be restored to their former positions and
rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this
Section 6.07, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereon. 
  

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 Section 6.08 Notice of Default. The Trustee shall, within ninety (90) days after a
Responsible Officer of the Trustee has actual knowledge of the occurrence of a default, send to all Noteholders, as the names and addresses of such holders appear upon the Note Register, notice of all defaults known to a Responsible Officer, unless
such defaults shall have been cured or waived before the giving of such notice; provided that except in the case of default in the payment of the principal of or Interest on any of the Notes, the Trustee shall be protected in withholding such
notice if and so long as a trust committee of Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Noteholders. 
 Section 6.09 Undertaking to Pay Costs. All parties to this Indenture agree, and each holder of any Note by his acceptance thereof shall be
deemed to have agreed, that any court may, in its discretion, require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided that the provisions of this Section 6.09 (to the extent permitted by law) shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Noteholder, or group of Noteholders, holding in the aggregate more than ten percent in principal amount of the Notes at the time outstanding determined in accordance with Section 8.04, or to any suit
instituted by any Noteholder for the enforcement of the payment of the principal of or Interest on any Note on or after the due date expressed in such Note or to any suit for the enforcement of the right to convert any Note in accordance with the
provisions of Article 14. 
 ARTICLE 7 
 THE TRUSTEE 
 Section 7.01 Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of an
Event of Default and after the curing of all Events of Default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default has occurred (which has not
been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the
conduct of such person’s own affairs. 
 No provision of this Indenture shall be construed to relieve the Trustee from liability for its
own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
 (a) prior to the occurrence of an Event
of Default and after the curing or waiving of all Events of Default which may have occurred: 
 (i) the duties and obligations
of the Trustee shall be determined solely by the express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall not 

  

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be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants, duties or
obligations shall be read into this Indenture and the Trust Indenture Act against the Trustee; and 
 (ii) in the absence of
bad faith and willful misconduct on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein; 
 (b) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless the Trustee
was negligent in ascertaining the pertinent facts; 
 (c) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the written direction of the holders of not less than a majority in principal amount of the Notes at the time outstanding determined as provided in Section 8.04 relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; 
 (d) whether or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording protection to, the Trustee shall be subject to the provisions of this Section;

 (e) the Trustee shall not be liable in respect of any payment (as to the correctness of amount, entitlement to receive or any other
matters relating to payment) or notice effected by the Company or any paying agent or any records maintained by any co-registrar with respect to the Notes; 
 (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its failure to receive
such notice as reason to act as if no such event occurred; and 
 (g) the Trustee shall not be deemed to have knowledge of any Event of
Default hereunder unless it shall have been notified in writing of such Event of Default by the Company or the holders of at least 10% in aggregate principal amount of the Notes. 
 None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial
liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it. 
  

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 Section 7.02 Reliance on Documents, Opinions, Etc. Except as otherwise provided in
Section 7.01: 
 (a) the Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, bond, debenture, note or other paper or document (whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or presented by the proper
party or parties; 
 (b) any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an
Officer’s Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant
Secretary of the Company; 
 (c) the Trustee may consult with counsel of its own selection and any advice or Opinion of Counsel shall be full
and complete authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 
 (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of
any of the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred
therein or thereby; 
 (e) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee may make such further inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the expense of the Company, and shall incur no
liability of any kind by reason of such inquiry or investigation; 
 (f) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed by it with due care hereunder; 
 (g) the Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this Indenture; 
 (h) the rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person
employed to act hereunder; 
  

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 (i) the Trustee may request that the Company deliver an Officer’s Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any
person specified as so authorized in any such certificate previously delivered and not superseded; and 
 (j) any permissive right or
authority granted to the Trustee shall not be construed as a mandatory duty. 
 Section 7.03 No Responsibility for Recitals, Etc.
The recitals contained herein and in the Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes
no representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes or the proceeds of any Notes authenticated and delivered by the
Trustee in conformity with the provisions of this Indenture. 
 Section 7.04 Trustee, Paying Agents, Conversion Agents or Registrar
May Own Notes. The Trustee, any paying agent, any conversion agent or Note Registrar, in its individual or any other capacity, may become the owner or pledgee of Notes with the same rights it would have if it were not Trustee, paying agent,
conversion agent or Note Registrar. 
 Section 7.05 Monies to Be Held in Trust. Subject to the provisions of Section 12.04,
all monies received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Money held by the Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as may be agreed in writing from time to time by the Company and the Trustee. 
 Section 7.06 Compensation and Expenses of Trustee. The Company covenants and agrees to pay to the Trustee from time to time, and the Trustee
shall be entitled to, such compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as mutually agreed to from time to
time in writing between the Company and the Trustee, and the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ), except any such expense, disbursement or advance as shall be determined to have
been caused by its own negligence or willful misconduct. The Company also covenants to indemnify the Trustee and any predecessor Trustee (or any officer, director or employee of the Trustee) in any capacity under this Indenture and its agents and
any authenticating agent for, and to hold them harmless against, any and all loss, liability, damage, claim or expense, including taxes (other than taxes based on the income of the Trustee) incurred without negligence, bad faith or willful
misconduct on the part of the Trustee or such officers, directors, employees and agent or authenticating agent, as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity
hereunder, including the costs and expenses 

  

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of defending themselves against any claim (whether asserted by the Company, any holder or any other Person) of liability in the premises. The obligations of
the Company under this Section 7.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien prior to that of the Notes upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Notes. The obligation of the Company under this Section shall survive the satisfaction and discharge of this Indenture. 
 When the Trustee and its agents and any authenticating agent incur expenses or render services after an Event of Default specified in
Section 6.01(e) or (f) with respect to the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any bankruptcy, insolvency or similar laws. 
 Section 7.07 Officer’s Certificate as Evidence. Except as otherwise provided in Section 7.01, whenever in the administration of the
provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of bad faith or willful misconduct on the part of the Trustee, be deemed to be conclusively proved and established by an Officer’s Certificate delivered to the Trustee. 
 Section 7.08 Conflicting Interests of Trustee. If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall (i) eliminate such interest within 90 days, (ii) apply to the Commission for permission to continue as trustee or (iii) resign, in each case to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. 
 Section 7.09 Eligibility of Trustee. There shall at all times
be a Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or, if such Person is a member of a bank holding company system, its
bank holding company shall have a combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority, then for the
purposes of this Section the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 7.09, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
 Section 7.10 Resignation or Removal of Trustee. 
 (a) The Trustee may at any time resign by
giving written notice of such resignation to the Company and to the holders of Notes. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment sixty (60) days after the
sending of such notice of resignation to the Noteholders, the resigning Trustee may, upon ten (10) Business Days’ notice 

  

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to the Company and the Noteholders, petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor trustee,
or, any Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months may, subject to the provisions of Section 6.09, on behalf of himself and all others similarly situated, petition any such court for the
appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee. 
 (b) In case at any time any of the following shall occur: 
 (i) the Trustee shall fail to
comply with Section 7.08 after written request therefor by the Company or by any Noteholder who has been a bona fide holder of a Note or Notes for at least six (6) months; or 
 (ii) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written
request therefor by the Company or by any such Noteholder; or 
 (iii) the Trustee shall become incapable of acting, or shall
be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation
or liquidation; 
 then, in any such case, the Company may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed
by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of Section 6.09, any Noteholder who has been a bona fide holder
of a Note or Notes for at least six (6) months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee; provided
that if no successor Trustee shall have been appointed and have accepted appointment sixty (60) days after either the Company or such Noteholder has removed the Trustee, or the Trustee resigns, the Trustee so removed may petition, at the
expense of the Company, any court of competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 (c) The holders of a majority in aggregate principal amount of the Notes at the time outstanding may at any time remove the Trustee and
nominate a successor trustee which shall be deemed appointed as successor trustee unless, within ten (10) days after notice to the Company of such nomination, the Company objects thereto, in which case the Trustee so removed or any Noteholder,
or, if such Trustee so removed or any Noteholder fails to act, the Company, upon the terms and conditions and otherwise as in Section 7.10(a) provided, may petition any court of competent jurisdiction for an appointment of a successor trustee.

 (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this
Section 7.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11. 
  

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 (e) Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s
obligations under Section 7.06 shall continue for the benefit of the retiring Trustee. 
 Section 7.11 Acceptance by Successor
Trustee. Any successor trustee appointed as provided in Section 7.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect
as if originally named as trustee herein; but, nevertheless, on the written request of the Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of Section 7.06,
execute and deliver an instrument transferring to such successor trustee all the rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments in writing for more
fully and certainly vesting in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as such, except for funds
held in trust for the benefit of holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 7.06. 
 No successor trustee shall accept appointment as provided in this Section 7.11 unless, at the time of such acceptance, such successor trustee shall be qualified under the provisions of Section 7.08 and be eligible under the
provisions of Section 7.09. 
 Upon acceptance of appointment by a successor trustee as provided in this Section 7.11, the Company
(or the successor trustee, at the written direction of the Company) shall send or cause to be sent notice of the succession of such trustee hereunder to the holders of Notes at their addresses as they shall appear on the Note Register. If the
Company fails to mail such notice within ten (10) days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be sent at the expense of the Company. 
 Section 7.12 Succession by Merger. Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or
any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee (including any trust created by
this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that in the case of any corporation succeeding to all or
substantially all of the corporate trust business of the Trustee, such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09. 
 In any case where at the time such successor to the Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor trustee, and deliver such Notes so authenticated; and in
case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate such Notes in the name of the successor trustee; and in all such
cases such 

  

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certificates shall have the full force that is provided in the Notes or in this Indenture; provided that the right to adopt the certificate of
authentication of any predecessor Trustee or to authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation. 
 Section 7.13 Preferential Collection of Claims. If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Company (or any such other obligor). 
 Section 7.14 Trustee’s Application for Instructions from the Company. Any application by the Trustee for written instructions from the
Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the holders of the Notes under this Indenture) may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission shall be effective. The Trustee shall not be liable for any action taken by, or omission of, the
Trustee in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than three (3) Business Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in the case of an omission), the Trustee shall have received written instructions in response to
such application specifying the action to be taken or omitted. 
 ARTICLE 8 
 THE NOTEHOLDERS 
 Section 8.01 Action by Noteholders. Whenever in
this Indenture it is provided that the holders of a specified percentage in aggregate principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that, at the time of taking any such action, the holders of such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Noteholders in
person or by agent or proxy appointed in writing, or (b) by the record of the holders of Notes voting in favor thereof at any meeting of Noteholders duly called and held in accordance with the provisions of Article 10, or (c) by a
combination of such instrument or instruments and any such record of such a meeting of Noteholders. Whenever the Company or the Trustee solicits the taking of any action by the Noteholders, the Company or the Trustee may fix in advance of such
solicitation a date as the record date for determining holders entitled to take such action. The record date shall be not more than fifteen (15) days prior to the date of commencement of solicitation of such action. 
 Section 8.02 Proof of Execution by Noteholders. Subject to the provisions of Sections 7.01, 7.02 and 9.05, proof of the execution of any
instrument by a Noteholder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The 

  

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holding of Notes shall be proved by the registry of such Notes or by a certificate of the Note Registrar. 
 The record of any Noteholders’ meeting shall be proved in the manner provided in Section 9.06. 
 Section 8.03 Who Are Deemed Absolute Owners. The Company, the Trustee, any paying agent, any conversion agent and any Note Registrar may deem
the Person in whose name such Note shall be registered upon the Note Register to be, and may treat it as, the absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding any notation of ownership or other writing
thereon made by any Person other than the Company or any Note Registrar) for the purpose of receiving payment of or on account of the principal of and Interest on such Note, for conversion of such Note and for all other purposes; and neither the
Company nor the Trustee nor any paying agent nor any conversion agent nor any Note Registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being, or upon such holder’s order, shall be
valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note. 
 Section 8.04 Company-owned Notes Disregarded. In determining whether the holders of the requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or other action under this Indenture, Notes
which are owned by the Company or any other obligor on the Notes or any Affiliate of the Company or any other obligor on the Notes shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided that,
for the purposes of determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or other action, only Notes which a Responsible Officer knows are so owned shall be so disregarded. Notes so owned which have
been pledged in good faith may be regarded as outstanding for the purposes of this Section 8.04 if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to vote such Notes and that the pledgee is not the
Company, any other obligor on the Notes or any Affiliate of the Company or any such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee. Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an Officer’s Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by or for the account of any of the above described Persons,
and, subject to Section 7.01, the Trustee shall be entitled to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any
such determination. 
 Section 8.05 Revocation of Consents; Future Holders Bound. At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in connection with such action, any holder of a Note
which is shown by the evidence to be included in the Notes the holders of which have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in Section 8.02,
revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the holder of any Note shall be conclusive and binding upon such holder and upon all future holders and owners of such Note and of any Notes issued in
exchange 

  

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or substitution therefor, irrespective of whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution
therefor. 
 ARTICLE 9 
 MEETINGS OF NOTEHOLDERS 
 Section 9.01 Purpose of Meetings. A meeting of Noteholders may be called at any time
and from time to time pursuant to the provisions of this Article 9 for any of the following purposes: 
 (a) to give any notice to the
Company or to the Trustee or to give any directions to the Trustee permitted under this Indenture, or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by
Noteholders pursuant to any of the provisions of Article 6; 
 (b) to remove the Trustee and nominate a successor trustee pursuant to
the provisions of Article 7; 
 (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions
of Section 10.02; or 
 (d) to take any other action authorized to be taken by or on behalf of the holders of any specified aggregate
principal amount of the Notes under any other provision of this Indenture or under applicable law. 
 Section 9.02 Call of Meetings
by Trustee. The Trustee may at any time call a meeting of Noteholders to take any action specified in Section 9.01, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Noteholders,
setting forth the time and place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to Section 8.01, shall be sent to holders of Notes at their addresses as
they shall appear on the Note Register. Such notice shall also be sent to the Company. Such notices shall be sent not less than twenty (20) nor more than ninety (90) days prior to the date fixed for the meeting. 
 Any meeting of Noteholders shall be valid without notice if the holders of all Notes then outstanding are present in person or by proxy or if notice is
waived before or after the meeting by the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly authorized representatives or have, before or after the meeting, waived notice. 
 Section 9.03 Call of Meetings by Company or Noteholders. In case at any time the Company, pursuant to a resolution of its Board of Directors,
or the holders of at least ten percent (10%) in aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of Noteholders, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have sent the notice of such meeting within twenty (20) days after receipt of such request, then the Company or such Noteholders may determine the time and the place for such
meeting and may call such meeting 

  

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to take any action authorized in Section 9.01 by sending notice thereof as provided in Section 9.02. 
 Section 9.04 Qualifications for Voting. To be entitled to vote at any meeting of Noteholders, a person shall (a) be a holder of one or
more Notes on the record date pertaining to such meeting or (b) be a person appointed by an instrument in writing as proxy by a holder of one or more Notes on the record date pertaining to such meeting. The only persons who shall be entitled to
be present or to speak at any meeting of Noteholders shall be the persons entitled to vote at such meeting and their counsel and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 

Section 9.05 Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it
may deem advisable for any meeting of Noteholders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall think fit. 
 The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Noteholders as provided in Section 9.03, in which case the Company or the
Noteholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the holders of a majority in principal amount of the
Notes represented at the meeting and entitled to vote at the meeting. 
 Subject to the provisions of Section 8.04, at any meeting each
Noteholder or proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him; provided that no vote shall be cast or counted at any meeting in respect of any Note challenged as not outstanding
and ruled by the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Notes held by him or instruments in writing as aforesaid duly designating him as the proxy to vote on
behalf of other Noteholders. Any meeting of Noteholders duly called pursuant to the provisions of Section 10.02 or 10.03 may be adjourned from time to time by the holders of a majority of the aggregate principal amount of Notes represented at
the meeting, whether or not constituting a majority of the aggregate principal amount of Notes outstanding, the latter of which shall constitute a quorum, and the meeting may be held as so adjourned without further notice. 
 Section 9.06 Voting. The vote upon any resolution submitted to any meeting of Noteholders shall be by written ballot on which shall be
subscribed the signatures of the holders of Notes or of their representatives by proxy and the outstanding principal amount of the Notes held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of Noteholders shall be prepared by the secretary of the meeting, and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the facts setting forth a copy 

  

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of the notice of the meeting and showing that said notice was sent as provided in Section 9.02. The record shall show the principal amount of the Notes
voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee
to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 
 Any record so signed and verified
shall be conclusive evidence of the matters therein stated. 
 Section 9.07 No Delay of Rights by Meeting. Nothing contained in
this Article 9 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Noteholders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or
rights conferred upon or reserved to the Trustee or to the Noteholders under any of the provisions of this Indenture or of the Notes. 
 ARTICLE 10 
 SUPPLEMENTAL INDENTURES 
 Section 10.01 Supplemental Indentures Without Consent of Noteholders. The Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time, and at any time
enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 
 (a) make provision with respect to
the conversion rights of the holders of Notes pursuant to the requirements of Section 14.07 and the repurchase obligations of the Company pursuant to the requirements of Section 3.05(e); 
 (b) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes, any property or assets; 
 (c) to evidence the succession of another Person to the Company, or successive successions, and the assumption by the successor Person of the covenants,
agreements and obligations of the Company pursuant to Article 11; 
 (d) to add to the covenants of the Company such further covenants,
restrictions or conditions as the Board of Directors and the Trustee shall consider to be for the benefit of the holders of Notes, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants,
restrictions or conditions a default or an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided that, in respect of any such additional covenant,
restriction or condition, such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon
such default or may limit the remedies available to the Trustee upon such default; 
  

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 (e) to provide for the issuance under this Indenture of Notes (including Notes registrable as to
principal only) and to provide for exchangeability of such Notes with the Notes issued hereunder in fully registered form and to make all appropriate changes for such purpose; 
 (f) to cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture that may be defective or
inconsistent with any other provision contained herein or in any supplemental indenture, or to make such other provisions in regard to matters or questions arising under this Indenture that shall not materially adversely affect the interests of the
holders of the Notes; 
 (g) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the
Notes; 
 (h) to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the
qualifications of this Indenture under the Trust Indenture Act, or under any similar federal statute hereafter enacted; 
 (i) to increase,
from time to time, the per annum interest rate on the Notes for any period; or 
 (j) to make any changes to Article 15 that would limit
or terminate the benefits available to any holder of Senior Indebtedness of the Company. 
 Upon the written request of the Company,
accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of any supplemental indenture, the Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder; provided that the Trustee shall
not be obligated to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
 Any supplemental indenture authorized by the provisions of this Section 10.01 may be executed by the Company and the Trustee without the consent of
the holders of any of the Notes at the time outstanding, notwithstanding any of the provisions of Section 10.02. 
 Notwithstanding any
other provision of the Indenture or the Notes, the Registration Rights Agreement and the obligation to pay Additional Interest thereunder may be amended, modified or waived only in accordance with the provisions of the Registration Rights Agreement.

 Section 10.02 Supplemental Indenture with Consent of Noteholders. With the consent (evidenced as provided in Article 8) of the
holders of at least a majority in aggregate principal amount of the Notes at the time outstanding, the Company, when authorized by the resolutions of the Board of Directors, and the Trustee may, from time to time and at any time, enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or any supplemental indenture or of modifying in any manner the rights of the
holders of the Notes; 

  

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provided that no such supplemental indenture shall (i) extend the fixed maturity of any Note, (ii) reduce the rate or extend the time of
payment of Interest thereon, (iii) reduce the principal amount thereof or reduce any amount payable on redemption or repurchase thereof, (iv) change the obligation of the Company to repurchase any Note at the option of a Noteholder on a
Repurchase Date in a manner adverse to the holders of Notes, (v) change the obligation of the Company to repurchase any Note upon the happening of a Designated Event in a manner adverse to the holders of Notes, (vi) impair the right of any
Noteholder to institute suit for the payment thereof, (vii) make the principal thereof or Interest thereon payable in any coin or currency other than that provided in the Notes, (viii) impair the right to convert the Notes or reduce the
amount of cash, the number of shares of Common Stock or any other property receivable by a Noteholder upon conversion subject to the terms set forth herein, including Section 14.07, in each case, without the consent of the holder of each Note
so affected, (ix) modify any of the provisions of this Section 10.02 or Section 6.07, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the
consent of the holder of each Note so affected, (x) change any obligation of the Company to maintain an office or agency in the places and for the purposes set forth in Section 4.02, (xi) reduce the quorum or voting requirements set
forth in Article 9, (xii) make any change in Article 15 that adversely affects the rights of any Noteholder under Article 15 or (xiii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of all Notes then outstanding. 
 Upon the written request of the Company,
accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of
Noteholders as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. 
 It shall not be
necessary for the consent of the Noteholders under this Section 10.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof. 
 Section 10.03 Effect of Supplemental Indenture. Any supplemental indenture executed pursuant to the provisions of this Article 10 shall
comply with the Trust Indenture Act, as then in effect, provided that this Section 10.03 shall not require such supplemental indenture or the Trustee to be qualified under the Trust Indenture Act prior to the time such qualification is in fact
required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any party to such supplemental indenture that any such qualification is
required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article 10, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties and immunities under this Indenture of the Trustee, the
Company and the holders of Notes shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments and all the terms and conditions of any such 

  

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supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
 Section 10.04 Notation on Notes. Notes authenticated and delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article 10 may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of
the Trustee and the Board of Directors, to any modification of this Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared and executed by the Company, authenticated by the Trustee (or an
authenticating agent duly appointed by the Trustee pursuant to Section 16.12) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding. 
 Section 10.05 Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee. Prior to entering into any supplemental indenture,
the Trustee shall be provided with an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies with the requirements of this Article 10 and is otherwise authorized
or permitted by this Indenture. 
 ARTICLE 11 
 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE 
 Section 11.01 Company May Consolidate on
Certain Terms. Subject to the provisions of Section 11.02, the Company shall not consolidate or merge with or into any other Person or Persons (whether or not affiliated with the Company), nor shall the Company or its successor or
successors be a party or parties to successive consolidations or mergers, nor shall the Company sell, convey, transfer or lease the property and assets of the Company substantially as an entirety to any other Person (whether or not affiliated with
the Company), unless: (i) the Company is the surviving Person, or the resulting, surviving or transferee Person is a corporation organized and existing under the laws of the United States of America, any state thereof or the District of
Columbia; (ii) upon any such consolidation, merger, sale, conveyance, transfer or lease, the due and punctual payment of the principal of and Interest on all of the Notes according to their tenor, and the due and punctual performance and
observance of all of the covenants and conditions of this Indenture to be performed by the Company, shall be expressly assumed, by supplemental indenture satisfactory in form and substance to the Trustee, executed and delivered to the Trustee by the
Person (if other than the Company and other than a Person who is a successor to the Company’s obligations hereunder and under the Note by operation of law) formed by such consolidation, or into which the Company shall have been merged, or by
the Person that shall have acquired or leased such property, and such supplemental indenture shall provide for the applicable conversion rights set forth in Section 14.07; and (iii) immediately after giving effect to the transaction
described above, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have happened and be continuing. 
 Section 11.02 Successor to Be Substituted. In case of any such consolidation, merger, sale, conveyance, transfer or lease and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the 

  

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Trustee, of the due and punctual payment of the principal of and Interest on all of the Notes and the due and punctual performance of all of the covenants
and conditions of this Indenture to be performed by the Company, such successor Person shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the party of this first part. Such successor Person
thereupon may cause to be signed, and may issue either in its own name or in the name of Headwaters Incorporated any or all of the Notes, issuable hereunder that theretofore shall not have been signed by the Company and delivered to the Trustee,
and, upon the order of such successor Person instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be authenticated and delivered,
any Notes that previously shall have been signed and delivered by the officers of the Company to the Trustee for authentication and any Notes that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that
purpose. All the Notes so issued shall in all respects have the same legal rank and benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Notes had been issued
at the date of the execution hereof. In the event of any such consolidation, merger, sale, conveyance, transfer or lease, the Person named as the “Company” in the first paragraph of this Indenture or any successor that shall thereafter
have become such in the manner prescribed in this Article 11 may be dissolved, wound up and liquidated at any time thereafter and such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations under
this Indenture. 
 In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but
not in substance) may be made in the Notes thereafter to be issued as may be appropriate. 
 Section 11.03 Opinion of Counsel to Be
Given to Trustee. The Trustee shall receive an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or lease and any such assumption complies with the
provisions of this Article 11. 
 ARTICLE 12 
 SATISFACTION AND DISCHARGE OF INDENTURE 
 Section 12.01 Discharge of Indenture. When
(a) the Company shall deliver to the Trustee for cancellation all Notes theretofore authenticated (other than any Notes that have been destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been
authenticated and delivered) and not theretofore canceled, or (b) all the Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become due and payable within one
year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit with the Trustee, in trust, funds sufficient to pay at maturity or upon
redemption of all of the Notes (other than any Notes that shall have been mutilated, destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated and delivered) not theretofore canceled or delivered
to the Trustee for cancellation, including principal and Interest due or to become due to such date of maturity or redemption date, as the case may be, accompanied by a verification report, as to the sufficiency 

  

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of the deposited amount, from an independent certified accountant or other financial professional satisfactory to the Trustee, and if the Company shall also
pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further effect (except as to (i) remaining rights of registration of transfer, substitution and exchange and conversion of Notes,
(ii) rights hereunder of Noteholders to receive payments of principal of and Interest on the Notes and the other rights, duties and obligations of Noteholders, as beneficiaries hereof with respect to the amounts, if any, so deposited with the
Trustee and (iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written demand of the Company accompanied by an Officer’s Certificate and an Opinion of Counsel as required by Section 16.05 and
at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture; the Company, however, hereby agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and
properly incurred by the Trustee and to compensate the Trustee for any services thereafter reasonably and properly rendered by the Trustee in connection with this Indenture or the Notes. The Trustee shall hold in trust money or Common Stock
deposited with it pursuant to this Article 12. It shall apply the deposited money and Common Stock through the Paying Agent and in accordance with this Indenture to the payment of principal of and Interest on the Notes. Money and Common Stock so
held in trust are not subject to Article 15. 
 Section 12.02 Deposited Monies to Be Held in Trust by Trustee. Subject to
Section 12.04, all monies deposited with the Trustee pursuant to Section 12.01 shall be held in trust for the sole benefit of the Noteholders, and such monies shall be applied by the Trustee to the payment, either directly or through any
paying agent (including the Company if acting as its own paying agent), to the holders of the particular Notes for the payment or redemption of which such monies have been deposited with the Trustee of all sums due and to become due thereon for
principal and Interest. 
 Section 12.03 Paying Agent to Repay Monies Held. Upon the satisfaction and discharge of this
Indenture, all monies then held by any paying agent of the Notes (other than the Trustee) shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon such paying agent shall be released from all further
liability with respect to such monies. 
 Section 12.04 Return of Unclaimed Monies. Subject to the requirements of applicable
law, any monies deposited with or paid to the Trustee for payment of the principal or Interest on Notes and not applied but remaining unclaimed by the holders of Notes for two years (or such shorter period of time under applicable escheat law) after
the date upon which the principal of or Interest on such Notes, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee on demand and all liability of the Trustee shall thereupon cease with respect to
such monies; and the holder of any of the Notes shall thereafter look only to the Company for any payment that such holder may be entitled to collect unless an applicable abandoned property law designates another Person. 
 Section 12.05 Reinstatement. If the Trustee or the paying agent is unable to apply any money in accordance with Section 12.02 by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Notes shall be revived and reinstated as 

  

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though no deposit had occurred pursuant to Section 12.01 until such time as the Trustee or the paying agent is permitted to apply all such money in
accordance with Section 12.02; provided that, if the Company makes any payment of Interest on or principal of any Note following the reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such
Notes to receive such payment from the money held by the Trustee or paying agent. 
 ARTICLE 13 
 IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS 
 Section 13.01 Indenture and Notes Solely Corporate Obligations. No recourse for the payment of the principal of or Interest on any Note, or for any claim based thereon or otherwise in respect thereof, and
no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or in any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any
incorporator, shareholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for,
the execution of this Indenture and the issue of the Notes. 
 ARTICLE 14 
 CONVERSION OF NOTES 
 Section 14.01 Right to Convert. 
 (a) Subject to and upon compliance with the provisions of this Indenture, prior to the close of business on June 1, 2016, the holder of any Note
shall have the right, at such holder’s option, to convert the principal amount of the Note, or any portion of such principal amount which is a multiple of $1,000, into cash and, if applicable, Common Stock at the Conversion Rate in effect at
such time, by surrender of the Note so to be converted in whole or in part, together with any required funds, under the circumstances described in this Section 14.01 and in the manner provided in Section 14.02. The Notes shall be
convertible only upon the occurrence of one of the following events: 
 (i) Prior to June 1, 2012, during any Calendar
Quarter commencing after December 31, 2008, if the Closing Sale Price of the Common Stock exceeds one hundred thirty percent (130%) of the then effective Conversion Price for at least twenty (20) Trading Days in the thirty
(30) consecutive Trading Day period ending on the last Trading Day of the immediately preceding Calendar Quarter (it being understood for purposes of this Section 14.01(a)(i) that the Conversion Price in effect at the close of business on
each of the thirty (30) consecutive Trading Days should be used); 
  

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 (ii) At any time on or after June 1, 2012, if the Closing Sale Price of the Common
Stock exceeds one hundred thirty percent (130%) of the then effective Conversion Price on any Trading Day; 
 (iii)
during any period in which (1) the credit rating assigned to the Notes by either Standard & Poor’s Rating Services (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), if either S&P or
Moody’s assigns a credit rating to the Notes, is three or more rating subcategories below the initial credit rating assigned by S&P or Moody’s, as the case may be, or (2) if the Notes are previously assigned a credit rating by
either S&P or Moody’s, the Notes are no longer rated by at least one of, or ratings thereof are suspended by both, S&P and Moody’s; 
 (iv) during the five (5) Business Day period immediately following any five (5) consecutive Trading Day period (the “Measurement Period”) in which the Trading Price per $1,000 principal amount of
the Notes for each day of such Measurement Period was less than 98% of the product of the Closing Sale Price and the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of the Notes; 
 (v) if such Note has been called for redemption, at any time on or after the date the notice of redemption has been given until the close
of business on the Business Day immediately preceding the redemption date; or 
 (vi) as provided in Section (b) of this
Section 14.01. 
 The Trustee (or other conversion agent appointed by the Company) shall, on behalf of the Company, determine on a daily
basis during the time period specified in Sections 14.01(a)(i) and (ii) whether the Notes shall be convertible as a result of the occurrence of an event specified in clause (i) or (ii) above and, if the Notes shall be so convertible,
the Trustee (or other conversion agent appointed by the Company) shall promptly deliver to the Company and the Trustee (if the Trustee is not the conversion agent) written notice thereof. Whenever the Notes shall become convertible pursuant to this
Section 14.01, the Company or, at the Company’s request, the Trustee in the name and at the expense of the Company, shall notify the holders of the event triggering such convertibility in the manner provided in Section 16.03, and the
Company shall also publicly announce such information and publish it on the Company’s web site. Any notice so given shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. 
 The Trustee (or other conversion agent appointed by the Company) shall have no obligation to determine the Trading Price under this Section 14.01
unless the Company has requested such a determination; and the Company shall have no obligation to make such request unless a holder provides it with reasonable evidence that the Trading Price per $1,000 principal amount of Notes would be less than
98% of the product of the Closing Sale Price and the number of shares of Common Stock issuable upon conversion of $1,000 principal amount of Notes. If such evidence is provided, the Company shall instruct the Trustee (or other conversion agent) to
determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the product of the Closing Sale Price and
the number of shares issuable 

  

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upon conversion of $1,000 principal amount of the Notes; provided that the Trustee shall be under no duty or obligation to make the calculations
described in Section 14.01(a)(iv) hereof or to determine whether the Notes are convertible pursuant to such section. For the avoidance of doubt, the Company shall make the calculations described in Section 14.01(a)(iv) using the Trading
Price provided by the Trustee. 
 The Trustee shall be entitled at its sole discretion to consult with the Company and to request the
assistance of the Company in connection with the Trustee’s duties and obligations pursuant to Sections 14.01(a)(i), (ii) and (iv) hereof (including without limitation the calculation or determination of the Conversion Price, the
Closing Sale Price and the Trading Price), and the Company agrees, if requested by the Trustee, to cooperate with, and provide assistance to, the Trustee in carrying out its duties under this Section 14.01; provided that nothing herein
shall be construed to relieve the Trustee of its duties pursuant to Sections 14.01(a)(i), (ii) and (iv) hereof. 
 (b) In addition,
if: 
 (i)(A) the Company distributes to all holders of its Common Stock rights or warrants entitling them (for a period
expiring within forty-five (45) days of the record date for the determination of the shareholders entitled to receive such distribution) to subscribe for or purchase shares of Common Stock, at a price per share less than the average of the
Closing Sale Price for the ten (10) Trading Days immediately preceding, but not including, the date such distribution is first publicly announced by the Company, or (B) the Company distributes to all holders of its Common Stock cash or
other assets, debt securities or rights to purchase its securities, where the Fair Market Value of such distribution per share of Common Stock exceeds 5% of the Closing Sale Price on the Trading Day immediately preceding the date such distribution
is first publicly announced by the Company, then, in either case, the Notes may be surrendered for conversion at any time on and after the date that the Company gives notice to the holders of such distribution, which shall be not less than
twenty-five (25) Trading Days prior to the Ex-Dividend Time for such distribution, until the earlier of the close of business on the Business Day immediately preceding, but not including, the Ex-Dividend Time or the date the Company publicly
announces that such distribution will not take place; provided that neither any adjustment to the Conversion Price will be made if the holder will otherwise participate in such distribution without conversion nor will a holder of a Note have
the ability to convert pursuant to this Section 14.01(b); or 
 (ii) the Company consolidates with or merges with or into
another Person or is a party to a binding share exchange or conveys, transfers, sells, leases or otherwise disposes of all or substantially all of its properties and assets in each case pursuant to which the Company’s Common Stock is converted
into cash, securities or other property, then the Notes may be surrendered for conversion at any time from and after the date fifteen (15) days prior to the anticipated effective date of the transaction and ending on and including the date
fifteen (15) days after the consummation of the transaction. If such transaction constitutes a Designated Event, the Notes may be surrendered for conversion until the corresponding Designated Event Expiration Time. In such an event, a holder of
Notes may elect to exercise its option to require the Company to repurchase all or a portion of such holder’s Notes. The Board of Directors shall determine the 

  

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anticipated effective date of the transaction, and such determination shall be conclusive and binding on the holders and shall be publicly announced by the
Company and posted on its web site not later than two (2) Business Days prior to such 15th day. If Notes are not surrendered pursuant to this
paragraph for conversion, on the effective date of the transaction, the right to convert the Notes into Common Stock will convert into a right to convert the Notes into the kind and amount of cash, securities and other property that a Noteholder
would have received if such holder had converted such holder’s Notes immediately prior to the transaction. 
 “Ex-Dividend
Time” means, with respect to any distribution on shares of Common Stock, the first date on which the shares of Common Stock trade regular way on the principal securities market on which the shares of Common Stock are then traded without the
right to receive such distribution. 
 (c) A Note in respect of which a holder is electing to exercise its option to require the Company to
repurchase such holder’s Notes upon a Designated Event pursuant to Section 3.05, or at the option of the holder pursuant to Section 3.06, may be converted only if such holder withdraws its election in accordance with
Section 3.05(c) or Section 3.08, respectively. A holder of Notes is not entitled to any rights of a holder of Common Stock until such holder has received shares of Common Stock in connection with a conversion of his Notes, and only to the
extent such Notes are deemed to have been converted under this Article 14. 
 Section 14.02 Conversion Procedures. In order to
exercise the conversion privilege with respect to any Note in certificated form, the Company must receive at the office or agency of the Company maintained for that purpose or, at the option of such holder, the Corporate Trust Office, such Note with
the original or facsimile of the form entitled “Conversion Notice” on the reverse thereof, duly completed and manually signed, together with such Notes duly endorsed for transfer, accompanied by the funds, if any, required by the
penultimate paragraph of this Section 14.02. If applicable, such notice shall also state the name or names (with address or addresses) in which the certificate or certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued, and shall be accompanied by transfer or similar taxes, if required pursuant to Section 14.08. 
 In order to
exercise the conversion privilege with respect to any interest in a Global Note, the beneficial holder must complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the Depositary’s book-entry conversion
program, deliver, or cause to be delivered, by book-entry delivery an interest in such Global Note, furnish appropriate endorsements and transfer documents if required by the Company or the Trustee or conversion agent, and pay the funds, if any,
required by this Section 14.02 and any transfer taxes if required pursuant to Section 14.08. 
 If the Company is required to
deliver shares of Common Stock (upon settlement in accordance with Section 14.03, on the third Business Day immediately following the last day of the applicable Observation Period), after satisfaction of the requirements for conversion set
forth above, subject to compliance with any restrictions on transfer if shares issuable on conversion are to be issued in a name other than that of the Noteholder (as if such transfer were a transfer of the Note or Notes (or portion thereof) so
converted), the Company shall issue and shall deliver to 

  

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such Noteholder at the office or agency maintained by the Company for such purpose pursuant to Section 4.02 a certificate or certificates for the number
of full shares of Common Stock, if any, issuable upon the conversion of such Note or portion thereof as determined by the Company in accordance with the provisions of this Article 14 and a check or cash in respect of any fractional interest in
respect of a share of Common Stock arising upon such conversion, calculated by the Company as provided in Section 14.04. In case any Note of a denomination greater than $1,000 shall be surrendered for partial conversion, and subject to
Section 2.03, the Company shall execute and the Trustee shall authenticate and deliver to the holder of the Note so surrendered, without charge to such holder, a new Note or Notes in authorized denominations in an aggregate principal amount
equal to the unconverted portion of the surrendered Note. 
 The cash and, if applicable, a certificate or certificates for the number of
full shares of Common Stock into which the Notes are converted (and cash in lieu of fractional shares) will be delivered to a converting Noteholder after satisfaction of the requirements for conversion set forth above, in accordance with this
Section 14.02 and Section 14.03. 
 Each conversion shall be deemed to have been effected as to any such Note (or portion thereof)
on the date (the “Conversion Date”) on which the requirements set forth above in this Section 14.02 have been satisfied as to such Note (or portion thereof), and, if applicable, the Person in whose name any certificate or certificates
for shares of Common Stock shall be issuable upon such conversion shall be deemed to have become on said date the holder of record of the shares represented thereby; provided that any such surrender on any date when the stock transfer books
of the Company shall be closed shall constitute the Person in whose name the certificates are to be issued as the record holder thereof for all purposes on the next succeeding day on which such stock transfer books are open, but such conversion
shall be at the Conversion Rate in effect on the date upon which such Note shall be surrendered. 
 Any Note or portion thereof surrendered
for conversion during the period from the close of business on the record date for any interest payment date to the close of business on the Business Day preceding such interest payment date shall be accompanied by payment, in immediately available
funds or other funds acceptable to the Company, of an amount equal to the Interest otherwise payable on such interest payment date on the principal amount being converted; provided that no such payment need be made (1) if the Company has
specified a redemption date that is after a record date and on or prior to the next interest payment date, (2) if the Company has specified a Designated Event Repurchase Date that is after a record date and on or prior to the next interest
payment date or (3) to the extent of any overdue Interest, if any overdue Interest exists at the time of conversion with respect to such Note. Except as provided above in this Section 14.02, no payment or other adjustment shall be made for
Interest accrued on any Note converted or for dividends on any shares issued upon the conversion of such Note as provided in this Article 14. 
 Upon the conversion of an interest in a Global Note, the Trustee (or other conversion agent appointed by the Company), or the Custodian at the direction of the Trustee (or other conversion agent appointed by the Company), shall make a
notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in writing of any conversions of Notes effected through any conversion agent other than the Trustee. 
  

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 Upon the conversion of a Note, that portion of the accrued but unpaid Interest, including Additional
Interest, if any, to the Conversion Date, with respect to the converted Note shall not be canceled, extinguished or forfeited, but rather shall be deemed to be paid in full to the holder thereof through delivery of cash and, if applicable, Common
Stock (together with the cash payment, if any in lieu of fractional shares) in exchange for the Note being converted pursuant to the provisions hereof, and the Fair Market Value of such shares of Common Stock, if any, (together with any such cash
payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in exchange for and in satisfaction of the Company’s obligation to pay the principal amount of the converted Note, the accrued but unpaid Interest,
including Additional Interest, if any, through the Conversion Date and the balance, if any, of such Fair Market Value of such Common Stock, if any, (and any such cash payment) shall be treated as issued in exchange for and in satisfaction of the
right to convert the Note being converted pursuant to the provisions hereof. 
 The Company agrees, and by acceptance of a beneficial
interest in a Note each holder and any beneficial owner of a Note shall be deemed to have agreed, to treat, for United States federal income tax purposes, the Fair Market Value of any Common Stock received upon a conversion of the Note (together
with any cash payment in lieu of fractional shares) as a contingent payment on the Note for purposes of Treasury Regulation Section 1.1275-4 or any successor provision. 
 The Company may elect to pay cash to a Noteholder upon conversion of Notes in lieu of all or a portion of the Daily Share Amount otherwise issuable to
such Holder pursuant to Section 14.03. In such event, by the close of business on the Business Day prior to the first Scheduled Trading Day of the applicable Observation Period for such Notes, the Company shall specify a percentage of the Daily
Share Amount that shall be settled in cash (the “Cash Percentage”) and will notify holders of such Cash Percentage through written notice to the Trustee (the “Cash Percentage Notice”). If the Company elects to specify a Cash
Percentage, the amount of cash that the Company shall deliver in respect of each Trading Day in the applicable Observation Period in lieu of such portion of the Daily Share Amount (and, for the avoidance of doubt, in addition to the cash amount
referred to in clause (i) of the definition of Daily Settlement Amount) will equal the product of: (1) the Cash Percentage, (2) the Daily Share Amount for such Trading Day (assuming no such election of a Cash Percentage) and
(3) the Daily VWAP for such Trading Day (provided that after the consummation of a Designated Event in which the consideration is comprised entirely of cash, the amount used in this clause (3) shall be the cash price per share received by
holders of Common Stock in such Designated Event). The number of shares of Common Stock that the Company shall deliver in respect of each Trading Day in the applicable Observation Period will be a percentage of the Daily Share Amount equal to 100%
minus the Cash Percentage. If the Company does not specify a Cash Percentage by the close of business on the Business Day prior to the first Scheduled Trading Day of the applicable Observation Period, the Company shall settle 100% of the Daily Share
Amount for each Trading Day in the applicable Observation Period with Common Stock; provided, however, that the Company shall pay cash in lieu of fractional shares otherwise issuable upon conversion of Notes. The Company, at its option, may revoke
any Cash Percentage Notice by notifying the Trustee; provided, that the Company shall revoke such notice by the close of business on the Trading Day prior to the first Scheduled Trading Day of the applicable Observation Period. 
  

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 Section 14.03 Payment Upon Conversion. 
 (a) Upon conversion of any Note, the Company shall deliver to converting Holders, with respect to each $1,000 principal amount of Notes validly tendered
for conversion, cash, fully paid shares of Common Stock or a combination thereof, as applicable, equal to the sum of the Daily Settlement Amounts for each of the twenty (20) Trading Days during the applicable Observation Period; provided
that (i) the Company will deliver cash in lieu of fractional shares of Common Stock as set forth in Section 14.04; and (ii) if the Company elects to settle all or a portion of the Daily Share Amount in cash as set forth in the last
paragraph of Section 14.02, the Company shall inform converting Noteholders by notice to the Trustee no later than the close of business on the Business Day immediately preceding the first Scheduled Trading Day of the applicable Observation
Period for such election to pay cash upon conversion of the Notes and will specify in such notice the Cash Percentage as required in the last paragraph of Section 14.02. The Daily Settlement Amounts for each of the twenty (20) Trading Days
during the applicable Observation Period and any cash to be delivered in lieu of any fractional shares of Common Stock shall be determined by the Company promptly following the last day of the applicable Observation Period. 
 (b) Payment of the cash and, if applicable, shares of Common Stock pursuant to this Section 14.03 shall be made by the Company on the third Business
Day immediately following the last Trading Day of the applicable Observation Period to the holder of a Note surrendered for conversion, or such holder’s nominee or nominees, and the Company shall deliver to the Trustee and any other conversion
agent or to such holder, or such holder’s nominee or nominees, certificates or a book-entry transfer through the Depositary for the number of full shares of Common Stock, if any, to which such holder shall be entitled as part of such
conversion. 
 Section 14.04 Cash Payments in Lieu of Fractional Shares. No fractional shares of Common Stock or scrip
certificates representing fractional shares shall be issued upon conversion of Notes. If more than one Note shall be surrendered for conversion at one time by the same holder, the number of full shares that shall be issuable upon conversion shall be
computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted hereby) so surrendered and the aggregate sum of all Daily Settlement Amounts for each of the twenty (20) Trading Days
during the applicable Observation Period (and not in respect of each Daily Settlement Amount nor some portion of the Daily Settlement Amounts for one or some portion of the twenty (20) Trading Days during the applicable Observation Period). If
any fractional share of Common Stock would be issuable upon the conversion of any Note or Notes, the Company shall make an adjustment and payment therefor in cash in lieu of fractional shares of Common Stock based on the Daily VWAP of the Common
Stock on the final Trading Day of the applicable Observation Period. The Company may, at its option, issue one share of Common Stock instead of paying cash in lieu of fractional shares. 
 Section 14.05 Conversion Rate. Each $1,000 principal amount of the Notes shall be convertible into cash and, if applicable, shares of Common
Stock as specified in the form of Note (herein called the “Conversion Rate”) attached as Exhibit A hereto, subject to adjustment as provided in this Article 14. 
  

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 Section 14.06 Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company as follows: 
 (a) In case the Company shall hereafter pay a dividend or make a distribution to all holders of the
outstanding Common Stock in shares of Common Stock, the Conversion Rate shall be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in effect at the opening of business on the date following the date fixed
for the determination of shareholders entitled to receive such dividend or other distribution by a fraction, 
 (i) the
numerator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on the date fixed for the determination of shareholders entitled to receive such dividend or other distribution plus the total number of
shares of Common Stock constituting such dividend or other distribution; and 
 (ii) the denominator of which shall be the
number of shares of Common Stock outstanding at the close of business on the date fixed for such determination, 
 such increase to become effective
immediately after the opening of business on the Business Day following the date fixed for such determination. For the purpose of this paragraph (a), the number of shares of Common Stock at any time outstanding shall not include shares held in the
treasury of the Company. The Company will not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. If any dividend or distribution of the type described in this Section 14.06(a) is declared
but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
 (b) In case the Company shall issue rights or warrants to all holders of its outstanding shares of Common Stock entitling them (for a period expiring
within forty-five (45) days after the date fixed for determination of shareholders entitled to receive such rights or warrants) to subscribe for or purchase shares of Common Stock at a price per share less than the average of the Closing Sale
Prices of the Common Stock for the ten (10) Trading Days immediately preceding the date such distribution is first publicly announced by the Company, the Conversion Rate shall be increased so that the same shall equal the rate determined by
multiplying the Conversion Rate in effect immediately prior to the date fixed for determination of shareholders entitled to receive such rights or warrants by a fraction, 
 (i) the numerator of which shall be the number of shares of Common Stock outstanding on the date fixed for determination of shareholders
entitled to receive such rights or warrants plus the total number of additional shares of Common Stock offered for subscription or purchase, and 
 (ii) the denominator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on the date fixed for determination of shareholders entitled to receive such rights or
warrants plus the number of shares that the aggregate offering price of the total number of shares so offered would purchase at a price equal to the average of the Closing Sale Prices of the Common Stock for the ten 

  

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(10) Trading Days immediately preceding the date such distribution is first publicly announced by the Company, 
 such adjustment shall be successively made whenever any such rights or warrants are issued, and shall become effective immediately after the opening of business on the
Business Day following the date fixed for determination of shareholders entitled to receive such rights or warrants. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate
shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. If such
rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such date fixed for the determination of shareholders entitled to receive such rights or warrants had not
been fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at a price less than the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days
immediately preceding the date such distribution is first publicly announced by the Company, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company
for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors. 
 (c) In case outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Rate in effect at the
opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately increased, and, conversely, in case outstanding shares of Common Stock shall be combined into a smaller number of shares of
Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such combination becomes effective shall be proportionately reduced, such increase or reduction, as the case may be, to become effective
immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
 (d)
In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock shares of any class of capital stock of the Company or evidences of its indebtedness or assets (including securities, but excluding any rights or
warrants referred to in Section 14.06(b), and excluding any dividend or distribution (x) paid exclusively in cash or (y) referred to in Section 14.06(a) (any of the foregoing hereinafter in this Section 14.06(d) called the
“Securities”)), then, in each such case (unless the Company elects to reserve such Securities for distribution to the Noteholders upon the conversion of the Notes so that any such holder converting Notes will receive upon such conversion,
in addition to the cash and, if applicable, shares of Common Stock to which such holder is entitled, the amount and kind of such Securities which such holder would have received if such holder had converted its Notes immediately prior to the Record
Date for such distribution of the Securities) the Conversion Rate shall be increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a
fraction, 
 (i) the numerator of which shall be the Current Market Price on such Record Date; and 
  

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 (ii) the denominator of which shall be the Current Market Price on such Record Date less
the Fair Market Value (as determined by the Board of Directors, whose determination shall be conclusive, and described in a resolution of the Board of Directors) on the Record Date of the portion of the Securities so distributed applicable to one
share of Common Stock, 
 such adjustment to become effective immediately prior to the opening of business on the Business Day following such Record Date;
provided that, if the then Fair Market Value (as so determined) of the portion of the Securities so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price on the Record Date, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right to receive upon conversion the amount of Securities such holder would have received had such holder converted each Note on the Record Date. If such
dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. If the Board of Directors determines the Fair
Market Value of any distribution for purposes of this Section 14.06(d) by reference to the actual or when issued trading market for any securities, it must in doing so consider the prices in such market over the same period used in computing
the Current Market Price on the applicable Record Date. Notwithstanding the foregoing, if the Securities distributed by the Company to all holders of its Common Stock consist of capital stock of, or similar equity interests in, a Subsidiary or other
business unit, the Conversion Rate shall be increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate in effect on the Record Date with respect to such distribution by a fraction, 
 (i) the numerator of which shall be the sum of (A) the average of the Closing Sale Prices of the Common Stock for the ten
(10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time plus (B) the Fair Market Value of the securities distributed in respect of each share of Common Stock for which this Section 14.06(d)
applies and shall equal the number of securities distributed in respect of each share of Common Stock multiplied by the average of the closing sale prices of those securities distributed (where such closing sale prices are available) for the ten
(10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time; and 
 (ii) the
denominator of which shall be the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Time, 
 such adjustment to become effective immediately prior to the opening of business on the Business Day following such Record Date; provided that the Company may in
lieu of the foregoing adjustment make adequate provision so that each Noteholder shall have the right to receive upon conversion the amount of Securities such holder would have received had such holder converted each Note on the Record Date with
respect to such distribution. 
 Rights or warrants distributed by the Company to all holders of Common Stock entitling the holders thereof
to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a 

  

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specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of Common Stock; (ii) are not exercisable;
and (iii) are also issued in respect of future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this Section 14.06(d) (and no adjustment to the Conversion Rate under this Section 14.06(d) will be
required) until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made under this
Section 14.06(d). If any such right or warrant, including any such existing rights or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of which such rights or warrants become exercisable to
purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and record date with respect to new rights or warrants with such
rights (and a termination or expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other
event (of the type described in the preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under this Section 14.06(d) was made, (1) in the
case of any such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to such distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights or warrants (assuming such holder had
retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that shall have expired or been terminated without exercise by any holders
thereof, the Conversion Rate shall be readjusted as if such rights and warrants had not been issued. 
 No adjustment of the Conversion Rate
shall be made pursuant to this Section 14.06(d) in respect of rights or warrants distributed or deemed distributed on any Trigger Event to the extent that such rights or warrants are actually distributed, or reserved by the Company for
distribution to holders of Notes upon conversion by such holders of Notes. 
 For purposes of this Section 14.06(d) and Sections
14.06(a) and (b), any dividend or distribution to which this Section 14.06(d) is applicable that also includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be deemed instead
to be (1) a dividend or distribution of the evidences of indebtedness, assets or shares of capital stock other than such shares of Common Stock or rights or warrants (and any Conversion Rate adjustment required by this Section 14.06(d)
with respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (and any further Conversion Rate adjustment required by Sections
14.06(a) and 14.06(b) with respect to such dividend or distribution shall then be made), except (A) the Record Date of such dividend or distribution shall be substituted as “the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution,” “the date fixed for the determination of shareholders entitled to receive such rights or warrants” and “the date fixed for such determination” within the meaning of Sections
14.06(a) and 14.06(b) and (B) any shares of Common Stock included in such dividend or distribution 

  

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shall not be deemed “outstanding at the close of business on the date fixed for such determination” within the meaning of Section 14.06(a).

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

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 (ii) the denominator of which shall be the number of shares of Common Stock outstanding
(including any tendered or exchanged shares) at the Expiration Time multiplied by the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, 
 such adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Company is obligated to purchase shares
pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made. 
 (g) For purposes of this Section 14.06, the
following terms shall have the meaning indicated: 
 (i) “Current Market Price” shall mean the average of the daily
Closing Sale Prices per share of Common Stock for the ten consecutive Trading Days ending on the earlier of such date of determination and the day before the “ex” date with respect to the issuance, distribution, subdivision or combination
requiring such computation immediately prior to the date in question. For purpose of this paragraph, the term “ex” date, (1) when used with respect to any issuance or distribution, means the first date on which the Common Stock
trades, regular way, on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance or distribution, and (2) when used with respect to any subdivision or combination
of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange or in such market after the time at which such subdivision or combination becomes effective. 
 If another issuance, distribution, subdivision or combination to which Section 14.06 applies occurs during the period applicable for
calculating “Current Market Price” pursuant to the definition in the preceding paragraph, “Current Market Price” shall be calculated for such period in a manner determined by the Board of Directors to reflect the impact of such
issuance, distribution, subdivision or combination on the Closing Sale Price of the Common Stock during such period. 
 (ii)
“Fair Market Value” shall mean the amount which a willing buyer would pay a willing seller in an arm’s-length transaction. 
 (iii) “Record Date” shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property
or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to receive such cash, securities or other
property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise). 
  

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 (h) The Company may make such increases in the Conversion Rate, in addition to those required by
Section 14.06(a), (b), (c), (d), (e) or (f) as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend or
distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. 
 To the extent permitted by
applicable law and subject to the applicable rules of the New York Stock Exchange, the Company from time to time may increase the Conversion Rate by any amount for any period of time if the period is at least twenty (20) days, the increase is
irrevocable during the period and the Board of Directors shall have made a determination that such increase would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to
the preceding sentence, the Company shall mail to holders of record of the Notes a notice of the increase at least fifteen (15) days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect. 
 (i) No adjustment in the Conversion Rate shall be required unless such
adjustment would require an increase or decrease of at least one percent (1%) in such rate; provided that any adjustments that by reason of this Section 14.06(i) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Article 14 shall be made by the Company and shall be made to the nearest cent or to the nearest one ten-thousandth (1/10,000) of a share, as the case may be. No adjustment need
be made for rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for any issuance of Common Stock or convertible or exchangeable securities or rights to purchase Common Stock or convertible or
exchangeable securities. To the extent the Notes become convertible into cash, assets, property or securities (other than capital stock of the Company), no adjustment need be made thereafter as to the cash, assets, property or such securities.
Interest will not accrue on any cash into which the Notes are convertible. 
 (j) Whenever the Conversion Rate is adjusted as herein
provided, the Company shall promptly file with the Trustee and any conversion agent other than the Trustee an Officer’s Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts
requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have received such Officer’s Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the
last Conversion Rate of which it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on
which each adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the Note Register provided for in Section 2.05 of this Indenture, within
twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 
 (k) In any case in which this Section 14.06 provides that an adjustment shall become effective immediately after (1) a record date or Record Date for an event, (2) the date fixed for the determination of shareholders entitled
to receive a dividend or distribution pursuant to Section 14.06(a), (3) a date fixed for the determination of shareholders entitled to receive rights 

  

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or warrants pursuant to Section 14.06(b), or (4) the Expiration Time for any tender or exchange offer pursuant to Section 14.06(f), (each a
“Determination Date”), the Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the holder of any Note converted after such Determination Date and before the
occurrence of such Adjustment Event, the additional cash and, if applicable, shares of Common Stock or other securities issuable upon such conversion by reason of the adjustment required by such Adjustment Event over and above the cash and, if
applicable, Common Stock issuable upon such conversion before giving effect to such adjustment and (y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section 14.04. For purposes of this Section 14.06(l),
the term “Adjustment Event” shall mean: 
 (i) in any case referred to in clause (1) hereof, the occurrence of
such event, 
 (ii) in any case referred to in clause (2) hereof, the date any such dividend or distribution is paid or
made, 
 (iii) in any case referred to in clause (3) hereof, the date of expiration of such rights or warrants, and

 (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of Common Stock pursuant to such tender
or exchange offer is consummated and becomes irrevocable. 
 (l) For purposes of this Section 14.06, the number of shares of Common
Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any
dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
 Section 14.07 Effect of
Reclassification, Consolidation, Merger or Sale. In the case of (i) any recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision or combination to which Section 14.06(c)
applies); (ii) any consolidation, merger or combination to which the Company is a party other than a merger in which the Company is the continuing corporation and which does not result in any recapitalization, reclassification of, or change
(other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination) in outstanding shares of Common Stock; (iii) any sale, lease or other transfer of all or
substantially all of the consolidated properties and assets of the Company and its Subsidiaries to any other Person or (iv) any statutory share exchange, in each case of clauses (i) – (iv) as a result of which holders of Common
Stock shall be entitled to receive stock, other securities or other property or assets (including cash or any combination of the foregoing) with respect to or in exchange for such Common Stock, then, at the effective time of such transaction, the
Company or the successor or purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture)
providing that each Note shall be convertible into the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) receivable upon such transaction that a holder 

  

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of a number of shares of Common Stock equal to the Conversion Rate immediately prior to such transaction would have owned or been entitled to receive (the
“Reference Property”) upon such transaction. If the transaction causes Common Stock to be converted into the right to receive more than a single type of consideration (determined based in part upon any form of stockholder election),
the Reference Property into which the Notes will be convertible shall be deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively make such an election. However, at and
after the effective time of the transaction, the amount otherwise payable in cash upon conversion of the Notes will continue to be payable in cash, and the Daily Conversion Value shall be calculated based on the value of the Reference Property. The
Company shall not become a party to any such transaction unless its terms are consistent with this Section 14.07. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Article 14. If, in the case of any such transaction, the Reference Property receivable thereupon by a holder of Common Stock includes shares of stock, other securities or other property or assets (including cash or
any combination thereof) of a corporation other than the successor or purchasing corporation, as the case may be, in such transaction, then such supplemental indenture shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Noteholders as the Board of Directors shall reasonably consider necessary by reason of the foregoing. 
 The Company shall cause notice of the execution of such supplemental indenture to be mailed to each holder of Notes, at its address appearing on the Note Register provided for in Section 2.05 of this Indenture,
within twenty (20) days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 
 The above provisions of this Section 14.07 shall similarly apply to successive reclassifications, changes, consolidations, mergers, combinations, sales, conveyances, exchanges and other similar transactions.

 If this Section 14.07 applies to any event or occurrence, Section 14.06 shall not apply. 
 Section 14.08 Taxes on Shares Issued. The issue of stock certificates, if any, on conversions of Notes shall be made without charge to the
converting Noteholder for any documentary, stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved in the issue
and delivery of stock in any name other than that of the holder of any Note converted, and the Company shall not be required to issue or deliver any such stock certificate unless and until the Person or Persons requesting the issue thereof shall
have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
 Section 14.09 Reservation of Shares; Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out of its authorized but unissued shares
or shares held in treasury, sufficient shares of Common Stock to provide for the conversion of the Notes from time to time as such Notes are presented for conversion. 
  

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 Before taking any action which would cause an adjustment increasing the Conversion Rate to an amount that
would cause the Conversion Price to be reduced below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes, the Company will take all corporate action which may, in the opinion of its counsel, be necessary
in order that the Company may validly and legally issue shares of such Common Stock at such adjusted Conversion Rate. 
 The Company
covenants that all shares of Common Stock which may be issued upon conversion of Notes will upon issue be fully paid and non-assessable by the Company and free from all taxes, liens and charges with respect to the issue thereof. 
 The Company covenants that, if any shares of Common Stock to be provided for the purpose of conversion of Notes hereunder require registration with or
approval of any governmental authority under any federal or state law before such shares may be validly issued upon conversion, the Company will in good faith and as expeditiously as possible, to the extent then permitted by the rules and
interpretations of the Commission (or any successor thereto), endeavor to secure such registration or approval, as the case may be. 
 The
Company further covenants that, if at any time the Common Stock shall be listed on the New York Stock Exchange or any other national securities exchange or automated quotation system, the Company will, if permitted by the rules of such exchange or
automated quotation system, list and keep listed, so long as the Common Stock shall be so listed on such exchange or automated quotation system, all Common Stock issuable upon conversion of the Notes; provided that if the rules of such
exchange or automated quotation system permit the Company to defer the listing of such Common Stock until the first conversion of the Notes in accordance with the provisions of this Indenture, the Company covenants to list such Common Stock issuable
upon conversion of the Notes in accordance with the requirements of such exchange or automated quotation system at such time. 
 Section 14.10 Responsibility of Trustee. The Trustee and any other conversion agent shall not at any time be under any duty or responsibility to any Noteholder to determine the Conversion Rate or whether any facts exist which
may require any adjustment of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed,
in making the same. The Trustee and any other conversion agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or property, which may at any time be issued or
delivered upon the conversion of any Note; and the Trustee and any other conversion agent make no representations with respect thereto. Neither the Trustee nor any conversion agent shall be responsible for any failure of the Company to issue,
transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of any Note for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the
Company contained in this Article 14. Without limiting the generality of the foregoing, neither the Trustee nor any conversion agent shall be under any responsibility to determine the correctness of any provisions contained in any supplemental
indenture entered into pursuant to Section 14.07 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by Noteholders upon the conversion of their Notes after any event 

  

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referred to in such Section 14.07 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 7.01, may accept
as conclusive evidence of the correctness of any such provisions, and shall be protected in relying upon, the Officer’s Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental
indenture) with respect thereto. 
 Section 14.11 Notice to Holders Prior to Certain Actions. In case: 
 (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the Conversion Rate pursuant
to Section 14.06; or 
 (b) the Company shall authorize the granting to the holders of all or substantially all of its Common Stock of
rights or warrants to subscribe for or purchase any share of any class or any other rights or warrants; or 
 (c) of any reclassification or
reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par value, or from par value to no par value, or from no par value to par value), or of any consolidation or
merger to which the Company is a party and for which approval of any shareholders of the Company is required, or of the sale or transfer of all or substantially all of the assets of the Company; or 
 (d) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company; 
 the Company shall cause to be filed with the Trustee and to be sent to each Noteholder at such holder’s address appearing on the Note Register provided for in Section 2.05 of this Indenture, as promptly as
possible but in any event at least ten (10) days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution or rights or warrants, or,
if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution or rights are to be determined, or (y) the date on which such reclassification, consolidation, merger,
sale, transfer, dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such dividend,
distribution, reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up. 
 Section 14.12
Shareholder Rights Plans. Each share of Common Stock, if any, issued upon conversion of Notes pursuant to this Article 14 shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the Common
Stock issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any shareholder rights plan adopted by the Company, as the same may be amended from time to time. If at the time of conversion,
however, the rights have separated from the shares of Common Stock in accordance with the provisions of the applicable shareholder rights agreement 

  

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so that the holders of the Notes would not be entitled to receive any rights in respect of any Common Stock issuable upon conversion of the Notes, the
Conversion Rate will be adjusted in accordance with Section 14.06(d) treating all rights previously issued as Securities for purposes of such adjustment, subject to readjustment in the event of the expiration, termination or redemption of the
rights. 
 ARTICLE 15 
 SUBORDINATION 
 Section 15.01 Agreement to Subordinate. The Company agrees, and each Noteholder by accepting a
Note agrees, that the Indebtedness evidenced by the Notes is subordinated in right of payment, to the extent and in the manner provided in this Article 15, to the prior payment in full of all Senior Indebtedness of the Company and that the
subordination is for the benefit of and enforceable by the holders of such Senior Indebtedness. The Notes shall in all respects rank pari passu with all other Senior Subordinated Indebtedness of the Company, senior in right of payment to all
existing and future Subordinated Indebtedness, and only Indebtedness of the Company that is Senior Indebtedness of the Company shall rank senior to the Notes in accordance with the provisions set forth herein. For purposes of this Article 15, the
Indebtedness evidenced by the Notes shall be deemed to include any Additional Interest. All provisions of this Article 15 shall be subject to Section 15.12. 
 Section 15.02 Liquidation, Dissolution, Bankruptcy. Upon any payment or distribution of the assets of the Company to creditors upon a total or partial liquidation or a total or partial dissolution of the
Company or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to the Company or its property: 
 (i) holders of Senior Indebtedness of the Company shall be entitled to receive payment in full of such Senior Indebtedness before Noteholders shall be entitled to receive any payment of principal of or interest on the Notes; and 

(ii) until the Senior Indebtedness of the Company is paid in full, any payment or distribution to which Noteholders would be entitled
but for this Article 15 shall be made to holders of such Senior Indebtedness as their interests may appear, except that Noteholders may receive any Permitted Junior Securities (in the case of clauses (i) or (ii). 
 Section 15.03 Default on Senior Indebtedness. 
 (a) The Company may not make any payment or distribution to the Trustee or any Noteholder in respect of the amounts owed in respect of the Notes and may not acquire from the Trustee or any Noteholder any Notes for
cash or property (other than Permitted Junior Securities) until all principal and other amounts owing in respect of Designated Senior Indebtedness have been paid in full if: 
 (i) a default in the payment of any principal or other amounts owed in respect of Designated Senior Indebtedness occurs; or 
  

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 (ii) a default, other than a payment default, on Designated Senior Indebtedness occurs
and is continuing that then permits holders of the Designated Senior Indebtedness to accelerate its maturity, or in the case of a lease, a default occurs and is continuing that permits the lessor to either terminate the lease or require the Company
to make an irrevocable offer to terminate the lease following an event of default under the lease, and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from the holder or holders of the Designated Senior
Indebtedness or the trustee, agent or Representative acting on behalf of such Designated Senior Indebtedness. If the Trustee receives any such Payment Blockage Notice, no subsequent Payment Blockage Notice shall be effective for purposes of this
Section unless and until (A) at least three hundred and sixty-five (365) days shall have elapsed since the effectiveness of the immediately prior Payment Blockage Notice and (B) all scheduled payments of principal, any premium and
interest (including Additional Interest) on the Notes that have come due have been paid in full in cash. No nonpayment default that existed or was continuing on the date of delivery of any Payment Blockage Notice to the Trustee shall be, or be made,
the basis for a subsequent Payment Blockage Notice. 
 (b) The Company may and shall resume payments on and distributions in respect of the
Notes: 
 (i) in the case of a default referred to in clause (i) of paragraph (a) above, the date upon which the
default is cured or waived; 
 (ii) in the case of a default referred to in clause (ii) of paragraph (a) above, upon
the earlier of the date on which such nonpayment default is cured or waived or one hundred and seventy-nine (179) days after the date on which the applicable Payment Blockage Notice is received, unless the maturity of any Designated Senior
Indebtedness has been accelerated, or in the case of a lease, one hundred and seventy-nine (179) days after notice is received if the Company has not received notice that the lessor under such lease has exercised its right to terminate the
lease or require the Company to make an irrevocable offer to terminate the lease following an event of default under the lease; and 
 (iii) in either case, upon the earlier of the payment in full of the obligations outstanding under and the satisfaction and discharge or defeasance of Designated Senior Indebtedness, 
 if this Article 15 otherwise permits the payment, distribution or acquisition at the time of such payment or acquisition. 
 In the case of clause (b), upon the earlier of the date on which such nonpayment default is cured or waived or one hundred and seventy-nine
(179) days after the date on which the applicable Payment Blockage Notice is received, unless the maturity of any Designated Senior Debt has been accelerated. 
 Section 15.04 Acceleration of Payment of Notes. If payment of the Notes is accelerated because of an Event of Default, the Company or the Trustee (provided, that the Trustee shall have received written
notice from the Company, on which notice the Trustee shall be entitled to 

  

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conclusively rely) shall promptly notify the holders of the Designated Senior Indebtedness of the Company (or their Representative) of the acceleration. If
any Designated Senior Indebtedness of the Company is outstanding, the Company may not pay the Notes (other than Permitted Junior Securities) until five Business Days after such holders or the Representative of such Designated Senior Indebtedness
receive notice of such acceleration and, thereafter, may pay the Notes only if this Article 15 otherwise permits payment at that time. 
 Section 15.05 When Distribution Must Be Paid Over. If a distribution is made to the Trustee or to the Noteholders that because of this Article 15 should not have been made to them, the Trustee or the Noteholders who receive the
distribution shall hold it in trust for holders of Senior Indebtedness of the Company and pay it over to them as their interests may appear, as calculated by the Company. 
 Section 15.06 Subrogation. After all Senior Indebtedness of the Company is paid in full and until the Notes are paid in full, Noteholders shall be subrogated to the rights of holders of such Senior
Indebtedness to receive distributions applicable to Senior Indebtedness. A distribution made under this Article 15 to holders of such Senior Indebtedness which otherwise would have been made to Noteholders is not, as between the Company and
Noteholders, a payment by the Company on such Senior Indebtedness. 
 Section 15.07 Relative Rights. This Article 15 defines the
relative rights of Noteholders and holders of Senior Indebtedness of the Company. Nothing in this Indenture shall: 
 (i)
impair, as between the Company and Noteholders, the obligation of the Company, which is absolute and unconditional, to pay principal of and Interest on the Notes in accordance with their terms; or 
 (ii) prevent the Trustee or any Noteholder from exercising its available remedies upon a Default, subject to the rights of holders of
Senior Indebtedness of the Company to receive distributions otherwise payable to Noteholders. 
 Section 15.08 Subordination May Not
Be Impaired by Company. No right of any holder of Senior Indebtedness of the Company to enforce the subordination of the Indebtedness evidenced by the Notes shall be impaired by any act or failure to act by the Company, the Trustee or any
Noteholders or by its or their failure to comply with this Indenture. 
 Section 15.09 Rights of Trustee and Paying Agent.
Notwithstanding Section 15.03, the Trustee or Paying Agent may continue to make payments on the Notes and shall not be charged with knowledge of the existence of facts that would prohibit the making of any such payments unless, not less than
two Business Days prior to the date of such payment, a Responsible Officer of the Trustee receives written notice that payments may not be made under this Article 15. The Company, the Note Registrar, the Paying Agent, a Representative or a holder of
Senior Indebtedness of the Company may give the notice; provided, however, that, if an issue of Senior Indebtedness of the Company has a Representative, only the Representative may give the notice. 
 The Trustee in its individual or any other capacity may hold Senior Indebtedness of the Company with the same rights it would have if it were not
Trustee. The Note Registrar and the Paying Agent may do the same with like rights. The Trustee shall be entitled to all the rights set 

  

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forth in this Article 15 with respect to any Senior Indebtedness of the Company which may at any time be held by it, to the same extent as any other holder
of such Senior Indebtedness; and nothing in Article 7 shall deprive the Trustee of any of its rights as such holder. Nothing in this Article 15 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.06 or any other
Section of this Indenture. 
 Section 15.10 Distribution or Notice to Representative. Whenever a distribution is to be made or a
notice given to holders of Senior Indebtedness of the Company, the distribution may be made and the notice given to their Representative (if any). 
 Section 15.11 Article 15 Not to Prevent Events of Default or Limit Right to Accelerate. The failure to make a payment pursuant to the Notes by reason of any provision in this Article 15 shall not be construed as preventing
the occurrence of a Default. Nothing in this Article 15 shall have any effect on the right of the Noteholders or the Trustee to accelerate the maturity of the Notes. 
 Section 15.12 Trust Monies Not Subordinated. Notwithstanding anything contained herein to the contrary, payments from money held in trust under Article 12 by the Trustee for the payment of principal of and
Interest on the Notes shall not be subordinated to the prior payment of any Senior Indebtedness of the Company or subject to the restrictions set forth in this Article 15, and none of the Noteholders shall be obligated to pay over any such amount to
the Company or any holder of Senior Indebtedness of the Company or any other creditor of the Company. 
 Section 15.13 Trustee
Entitled to Rely. Upon any payment or distribution pursuant to this Article 15, the Trustee and the Noteholders shall be entitled to conclusively rely (a) upon any order or decree of a court of competent jurisdiction in which any
proceedings of the nature referred to in Section 15.02 are pending, (b) upon a certificate of the liquidating trustee or agent or other Person making such payment or distribution to the Trustee or to the Noteholders or (c) upon the
Representatives for the holders of Senior Indebtedness of the Company for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of such Senior Indebtedness and other Indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 15. In the event that the Trustee determines, in good faith, that evidence is required with respect to
the right of any Person as a holder of Senior Indebtedness of the Company to participate in any payment or distribution pursuant to this Article 15, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other facts pertinent to the rights of such Person under this Article 15,
and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. The provisions of Sections 7.01 and 7.02 shall be applicable to all
actions or omissions of actions by the Trustee pursuant to this Article 15. 
 Section 15.14 Trustee to Effectuate Subordination.
Each Noteholder by accepting a Note authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between the Noteholders and the 

  

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holders of Senior Indebtedness of the Company as provided in this Article 15 and appoints the Trustee as attorney-in-fact for any and all such purposes.

 Section 15.15 Trustee Not Fiduciary for Holders of Senior Indebtedness. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Indebtedness of the Company and shall not be liable to any such holders if it shall mistakenly pay over or distribute to Noteholders or the Company or any other Person, money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article 15 or otherwise. 
 Section 15.16 Reliance by Noteholders of
Senior Indebtedness on Subordination Provisions. Each Noteholder by accepting a Note acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Senior
Indebtedness of the Company, whether such Senior Indebtedness was created or acquired before or after the issuance of the Notes, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness and such holder of such Senior
Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. 
 ARTICLE 16 
 MISCELLANEOUS PROVISIONS 
 Section 16.01 Provisions Binding on Company’s Successors. All the covenants, stipulations, promises and agreements by the Company
contained in this Indenture shall bind its successors and assigns whether so expressed or not. 
 Section 16.02 Official Acts by
Successor Corporation. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by
the like board, committee or officer of any Person that shall at the time be the lawful sole successor of the Company. 
 Section 16.03
Addresses for Notices, Etc. Any notice or demand which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Notes on the Company shall be deemed to have been sufficiently given
or made, for all purposes, if given or served by being deposited postage prepaid by registered or certified mail in a post office letter box or sent by telecopier transmission addressed as follows: to Headwaters Incorporated, 10653 South Riverfront
Parkway, Suite 300, South Jordan, Utah 84095, Attention: Harlan M. Hatfield, General Counsel, Telecopier No.: (801) 984-9430. Any notice, direction, request or demand hereunder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or served by being deposited, postage prepaid, by registered or certified mail in a post office letter box or sent by telecopier transmission addressed as follows: Wells Fargo Bank, N.A. 625 Marquette
Avenue South, N9311-110, Minneapolis, MN 55479 Attn: Corporate Trust Services Fax: (612) 667-9825. 
 The Trustee, by notice to the
Company, may designate additional or different addresses for subsequent notices or communications. 
  

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 Any notice or communication sent to a Noteholder shall be sent electronically or mailed to such holder by
first-class mail, postage prepaid, at his address as it appears on the Note Register and shall be sufficiently given to such holder if so sent within the time prescribed. 
 Failure to send a notice or communication to a Noteholder or any defect in it shall not affect its sufficiency with respect to other Noteholders. If a notice or communication is sent in the manner provided above, it
is duly given, whether or not the addressee receives it. 
 Section 16.04 Governing Law. This Indenture and each Note shall be
governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof. 
 Section 16.05 Evidence of Compliance with Conditions Precedent; Certificates to Trustee. Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion
of such counsel, all such conditions precedent have been complied with. 
 Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a
brief statement as to the nature and scope of the examination or investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with. 
 Section 16.06 Legal Holidays. In any case in which the date of maturity of
Interest on or principal of the Notes or the redemption date of any Note will not be a Business Day, then payment of such Interest on or principal of the Notes need not be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on the date of maturity or the redemption date, and no Interest shall accrue for the period from and after such date. 
 Section 16.07 Company Responsible for Making Calculations. Except in relation to Section 14.01(a)(iv), the Company will be responsible for making all calculations required under the Notes and this
Indenture. The Company will make these calculations in good faith and absent manifest error, these calculations will be final and binding on the Noteholders. Promptly after the calculation thereof, the Company will provide to each of the Trustee and
the Conversion Agent an Officer’s Certificate setting forth a schedule of its calculations, and each of the Trustee and the Conversion Agent is entitled to conclusively rely upon the accuracy of such calculations without independent
verification. The Trustee will forward the Company’s calculations to any Holder upon the written request of such Holder. 
  

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 Section 16.08 Trust Indenture Act. This Indenture is hereby made subject to, and shall be
governed by, the provisions of the Trust Indenture Act required to be part of and to govern indentures qualified under the Trust Indenture Act; provided that this Section 16.08 shall not require this Indenture or the Trustee to be
qualified under the Trust Indenture Act prior to the time such qualification is in fact required under the terms of the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any party to this Indenture that any such
qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in
an indenture qualified under the Trust Indenture Act, such required provision shall control. 
 Section 16.09 No Security Interest
Created. Nothing in this Indenture or in the Notes, express or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction
in which property of the Company or its subsidiaries is located. 
 Section 16.10 Benefits of Indenture. Nothing in this
Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto, any paying agent, any authenticating agent, any Note Registrar and their successors hereunder and the holders of Notes any benefit or any legal
or equitable right, remedy or claim under this Indenture. 
 Section 16.11 Table of Contents, Headings, Etc. 
 The table of contents and the titles and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only,
are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 
 Section 16.12
Authenticating Agent. The Trustee may appoint an authenticating agent that shall be authorized to act on its behalf, and subject to its direction, in the authentication and delivery of Notes in connection with the original issuance thereof
and transfers and exchanges of Notes hereunder, including under Sections 2.04, 2.05, 2.06, 2.07, 3.03, 3.05, 3.06, 3.10 and 14.02, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this
Indenture and those Sections to authenticate and deliver Notes. For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and delivery of such Notes “by the
Trustee” and a certificate of authentication executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such
authenticating agent shall at all times be a Person eligible to serve as trustee hereunder pursuant to Section 7.09. 
 Any corporation
into which any authenticating agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or conversion to which any authenticating agent shall be a party, or any corporation
succeeding to the corporate trust business of any authenticating agent, shall be the successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 16.12, without the execution or filing
of any paper or any further act on the part of the parties hereto or the authenticating agent or such successor corporation. 
  

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 Any authenticating agent may at any time resign by giving written notice of resignation to the Trustee
and to the Company. The Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the duties and obligations of the former
authenticating agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor authenticating agent to the Company and shall send notice of such
appointment of a successor authenticating agent to all holders of Notes as the names and addresses of such holders appear on the Note Register. 
 The Company agrees to pay to the authenticating agent from time to time such reasonable compensation for its services as shall be agreed upon in writing between the Company and the authenticating agent. 
 The provisions of Sections 7.02, 7.03, 7.04 and 8.03 and this Section 16.12 shall be applicable to any authenticating agent. 
 Section 16.13 Execution in Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original,
but such counterparts shall together constitute but one and the same instrument. 
 Section 16.14 Severability. In case any
provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

  

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

			
	HEADWATERS INCORPORATED
		
	By:	 	/s/ Steven G. Stewart
	Name:	 	Steven G. Stewart
	Title:	 	Chief Financial Officer
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	/s/ Lynn M. Steiner
	Name:	 	Lynn M. Steiner
	Title:	 	Vice President

  

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 EXHIBIT A 
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE
REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THE NOTE EVIDENCED HEREBY HAS NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT); (2) AGREES THAT IT WILL NOT, PRIOR TO EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THE
NOTE EVIDENCED HEREBY UNDER RULE 144(b)(1) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE TRANSFER THIS NOTE OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE EXCEPT (A) TO HEADWATERS INCORPORATED OR ANY
SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), OR
(D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH 

  

 A-1 

 
TRANSFER); (3) PRIOR TO SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), IT WILL FURNISH TO WELLS FARGO BANK, NATIONAL ASSOCIATION,
AS TRUSTEE (OR A SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE TRUSTEE MAY REASONABLY REQUIRE 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 (4) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND, THIS LEGEND WILL BE REMOVED UPON THE
EARLIER OF THE TRANSFER OF THIS NOTE PURSUANT TO CLAUSE 2(D) ABOVE OR UPON ANY TRANSFER OF THIS NOTE UNDER RULE 144(b)(1) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO
REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION. 
 HEADWATERS INCORPORATED 
 16% CONVERTIBLE SENIOR SUBORDINATED NOTES DUE 2016 
 CUSIP:
[    ] 
 No. 1 $[        ] 
 Headwaters Incorporated, a corporation duly organized and validly existing under the laws of the State of Delaware (herein called the
“Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to CEDE & CO. or its registered assigns, the principal sum as set forth on
Schedule I hereto on June 1, 2016, at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts, and to pay interest, semi-annually on June 1 and December 1 of each year, commencing June 1, 2009, on said principal sum at said office or agency, in like coin or currency, at
the rate per annum of 16%, from and including December [        ], 2008 or from the most recent Interest Payment Date to which interest has been paid or duly provided for to, but excluding the following
Interest Payment Date. Except as otherwise provided in the Indenture, the interest payable on the Note pursuant to the Indenture on any June 1 or December 1 will be paid to the Person entitled thereto as it appears in the Note Register at
the close of business on the record date, which shall be the May 15 or November 15 (whether or not a Business Day) next preceding such June 1 or December 1, as provided in the Indenture; provided that any such interest not
punctually paid or duly provided for shall be payable as provided in the Indenture. The Company shall pay interest (i) on any Notes in certificated form by check mailed to the address of the Person entitled thereto as it appears in the Note
Register (provided that the holder of Notes with an aggregate principal amount in excess of $2,000,000 shall, at the written election of such holder, be paid by wire transfer of immediately available funds) or (ii) on any Global Note by
wire transfer of immediately available funds to the account of the Depositary or its nominee. 
  

 A-2 

 The Company promises to pay interest, including Additional Interest, if any, on overdue principal and (to
the extent that payment of such interest is enforceable under applicable law) interest at the rate borne by the Notes, plus 1% per annum. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation, provisions giving the holder of this Note the right to convert this Note into cash and, if applicable, Common Stock of
the Company on the terms and subject to the limitations referred to on the reverse hereof and as more fully specified in the Indenture. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 This Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws
principles thereof. 
 This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall
have been manually signed by the Trustee or a duly authorized authenticating agent under the Indenture. 
  

 A-3 

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

			
	HEADWATERS INCORPORATED
		
	By:	 	 
	Name:	 	
	Title:	 	
		
	Attest:	 	
		
	By:	 	 
	Name:	 	
	Title:	 	
	
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 This is one of the Notes described in the within-named Indenture. 
  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE
		
	By:	 	 
	Authorized Signatory
		
	or	 	
		
	By:	 	 
	As Authenticating Agent
	(if different from Trustee)
		
	By:	 	 
	Authorized Signatory

  

 A-4 

 FORM OF REVERSE OF NOTE 
 HEADWATERS INCORPORATED 
 This Note is one of a duly authorized issue of Notes of the Company, designated as
its 16% Convertible Senior Subordinated Notes due 2016 (herein called the “Notes”), in an initial aggregate principal amount of up to $64,000,000, issued and to be issued under and pursuant to an Indenture dated as of December
[        ], 2008 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, as trustee (herein called the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Notes. 
 In case an Event of Default shall have occurred and be continuing, the principal of and accrued and unpaid Interest on all Notes may be declared by
either the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding, and upon said declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the
Indenture. 
 The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of at least a
majority in aggregate principal amount of the Notes at the time outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture
or modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall (i) extend the fixed maturity of any Note, (ii) reduce the rate or extend the time of payment of Interest thereon,
(iii) reduce the principal amount thereof or reduce any amount payable upon redemption or repurchase thereof, (iv) change the obligation of the Company to repurchase any Note at the option of a Noteholder on a Repurchase Date in a manner
adverse to the holders of Notes, (v) change the obligation of the Company to repurchase any Note upon the happening of a Designated Event in a manner adverse to the holders of Notes, (vi) impair the right of any Noteholder to institute
suit for the payment thereof, (vii) make the principal thereof or interest thereon payable in any coin or currency other than that provided in the Notes, (viii) impair the right to convert the Notes or reduce the amount of cash, the number
of shares of Common Stock, if any, or any other property receivable by a Noteholder upon conversion subject to the terms set forth in the Indenture, in each case, without the consent of the holder of each Note so affected, (ix) modify any of
the provisions of Section 10.02 or Section 6.07 thereof, except to increase any such percentage or to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each Note so
affected, (x) change any obligation of the Company to maintain an office or agency in the places and for the purposes set forth in Section 4.02 thereof, (xi) reduce the quorum or voting requirements set forth in Article 9,
(xii) make any change in Article 15 of the Indenture that adversely affects the rights of any Noteholder under Article 15 of the Indenture, or (xiii) reduce the aforesaid percentage of Notes, the holders of which are required to
consent to any such supplemental indenture, without the consent of the holders of all Notes then outstanding. Subject to the provisions of the Indenture, the holders of a majority in aggregate principal amount of the Notes at the time outstanding
may on behalf of the holders of all of the Notes waive any past Default or Event of Default under the Indenture and its consequences except (A) a default in the 

  

 A-5 

 
payment of Interest on, or the principal of, any of the Notes, (B) a failure by the Company to convert any Notes into cash and, at the Company’s
option, Common Stock of the Company, (C) a default in the payment of the redemption price pursuant to Article 3 of the Indenture, (D) a default in the payment of the repurchase price pursuant to Article 3 of the Indenture, or (E) a
default in respect of a covenant or provisions of the Indenture which under Article 10 of the Indenture cannot be modified or amended without the consent of the holders of each or all Notes then outstanding or affected thereby. Any such consent or
waiver by the holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution
hereof, irrespective of whether or not any notation thereof is made upon this Note or such other Notes. 
 No reference herein to the
Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and Interest on this Note at the place, at the respective times, at the
rate and in the coin or currency herein prescribed. 
 Interest on the Notes shall be computed on the basis of a 360-day year of twelve
30-day months. 
 The Notes are issuable in fully registered form, without coupons, in denominations of $1,000 principal amount and any
multiple of $1,000. At the office or agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to
cover any tax, assessment or other governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other authorized denominations.

 The Company may not redeem any Notes prior to June 4, 2012. On or after June 4, 2012 and prior to maturity, the Notes may be
redeemed at the option of the Company, in whole or in part, upon sending a notice of such redemption not less than twenty (20) days but not more than sixty (60) days before the redemption date to the holders of Notes at their last
registered addresses, all as provided in the Indenture, at a cash redemption price equal to 100% of the principal amount of the Notes being redeemed and accrued and unpaid Interest, to, but excluding, the redemption date; provided that if the
redemption date falls after a record date and on or prior the corresponding interest payment date, then accrued and unpaid Interest to, but excluding, the redemption date shall be paid on such interest payment date to the holders of record of such
Notes on the applicable record date instead of to the holders surrendering such Notes for redemption on such date. 
 The Company may not
give notice of any redemption of the Notes if a default in the payment of Interest on the Notes has occurred and is continuing. 
 The Notes
are not subject to redemption through the operation of any sinking fund. 
 If a Designated Event occurs at any time prior to maturity of the
Notes, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes 

  

 A-6 

 
held by such holder, on a date specified by the Company that is thirty (30) days after notice thereof at a cash repurchase price of 100% of the
principal amount, plus any accrued and unpaid Interest, on such Note up to, but excluding, the Designated Event Repurchase Date; provided that if the repurchase date falls after a record date and on or prior the corresponding interest payment
date, then accrued and unpaid Interest to, but excluding, the Designated Event Repurchase Date shall be paid on such interest payment date to the holders of record of such Notes on the applicable record date instead of to the holders surrendering
such Notes for repurchase on such date. The Notes will be subject to repurchase in multiples of $1,000 principal amount. The Company shall send to all holders of record of the Notes a notice of the occurrence of a Designated Event and of the
repurchase right arising as a result thereof on or before the 15th day after the occurrence of such Designated Event. To exercise such right, a holder shall deliver to the Company such Note with the form entitled “Designated Event Repurchase
Notice” on the reverse thereof duly completed, together with the Note, duly endorsed for transfer, at any time prior to the close of business on the Business Day immediately preceding the Designated Event Repurchase Date, and shall deliver the
Notes to the Trustee (or other paying agent appointed by the Company) as set forth in the Indenture. 
 Subject to the terms and conditions
of the Indenture, the Company shall become obligated to purchase, at the option of the holder, all or any portion of the Notes held by such holder on June 1, 2012 in whole multiples of $1,000 at a cash repurchase price of 100% of the principal
amount, plus any accrued and unpaid Interest, on such Note to, but excluding, the Repurchase Date. To exercise such right, a holder shall deliver to the Company such Note with the form entitled “Repurchase Notice” on the reverse thereof
duly completed, together with the Note, duly endorsed for transfer, at any time from the opening of business on the date that is twenty (20) Business Days prior to such Repurchase Date until the close of business on the date that is two
(2) Business Days prior to the Repurchase Date, and shall deliver the Notes to the Trustee (or other paying agent appointed by the Company) as set forth in the Indenture. 
 Holders have the right to withdraw any Designated Event Repurchase Notice or the Repurchase Notice, as the case may be, by delivering to the Trustee (or
other paying agent appointed by the Company) a written notice of withdrawal up to the close of business on the Business Day immediately preceding the Designated Event Repurchase Date or the Repurchase Date, as the case may be, all as provided in the
Indenture. 
 If money or cash, sufficient to pay the repurchase price of all Notes or portions thereof to be purchased as of the Designated
Event Repurchase Date or the Repurchase Date, as the case may be, is deposited with the Trustee (or other paying agent appointed by the Company), on the Designated Event Repurchase Date or the Repurchase Date, as the case may be, interest will cease
to accrue on such Notes (or portions thereof) immediately after such Repurchase Date, and the holder thereof shall have no other rights as such other than the right to receive the repurchase price upon surrender of such Note. 
 Subject to the occurrence of certain events and in compliance with the provisions of the Indenture, prior to the final maturity date of the Notes, the
holder hereof has the right, at its option, to convert each $1,000 principal amount of the Notes into cash and, if applicable, shares of Common Stock at an initial Conversion Rate of 42.5532 shares of Common Stock (a conversion price of
approximately $23.50 per share), as such shares shall be constituted at the 

  

 A-7 

 
date of conversion and subject to adjustment from time to time as provided in the Indenture, upon surrender of this Note with the form entitled
“Conversion Notice” on the reverse thereof duly completed, to the Company at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, or at the option of such holder, the Corporate
Trust Office, and, unless any shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the Company duly executed by, the holder or by his duly
authorized attorney. The Company will notify the holder thereof of any event triggering the right to convert the Notes as specified above in accordance with the Indenture. 
 No adjustment in respect of interest on any Note converted or dividends on any shares issued upon conversion of such Note will be made upon any
conversion except as set forth in the next sentence. If this Note (or portion hereof) is surrendered for conversion during the period from the close of business on any record date for the payment of interest to the close of business on the Business
Day preceding the following interest payment date, this Note (or portion hereof being converted) must be accompanied by payment, in immediately available funds or other funds acceptable to the Company, of an amount equal to the interest otherwise
payable on such interest payment date on the principal amount being converted; provided that no such payment shall be required (1) if the Company has specified a redemption date that is after a record date and prior to the next interest
payment date, (2) if the Company has specified a Designated Event Repurchase Date that is during such period or (3) to the extent of any overdue Interest, if any overdue interest exists at the time of conversion with respect to such Note.

 No fractional shares will be issued upon any conversion, but an adjustment and payment in cash will be made, as provided in the Indenture,
in respect of any fraction of a share which would otherwise be issuable upon the surrender of any Note or Notes for conversion. 
 A Note in
respect of which a holder is exercising its right to require repurchase upon a Designated Event or repurchase on a Repurchase Date may be converted only if such holder withdraws its election to exercise either such right in accordance with the terms
of the Indenture. 
 Any Notes called for redemption, unless surrendered for conversion by the holders thereof on or before the close of
business on the Business Day preceding the redemption date, may be deemed to be redeemed from the holders of such Notes for an amount equal to the applicable redemption price, together with accrued but unpaid Interest to, but excluding, the date
fixed for redemption, by one or more investment banks or other purchasers who may agree with the Company (i) to purchase such Notes from the holders thereof and convert them and (ii) to make payment for such Notes as aforesaid to the
Trustee in trust for the holders. 
 To the extent provided in the Indenture, the Notes are subordinated to Senior Indebtedness, as defined
in the Indenture, pari passu with any and all other Senior Subordinated Indebtedness, as defined in the Indenture, of the Company and senior to all Subordinated Indebtedness of the Company. To the extent provided in the Indenture,
Senior Indebtedness must be paid before the Notes may be paid. The Company agrees, and each Noteholder by accepting a Note agrees, to the subordination provisions contained in the Indenture and authorizes the Trustee to give it effect and appoints
the Trustee as attorney-in-fact for such purpose. 
  

 A-8 

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

 A-9 

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

					
	 TEN COM
 TEN ENT
	 	 -   as tenants in common
 -   as tenant by the entities
	  	 UNIF GIFT MIN ACT - Custodian
 (Cust)
(Minor)

	JT TEN	 	-   as joint tenants with right of survivorship under Uniform Gifts to Minors Act and not as tenants in common

  

	
	  
	(State)

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

 A-10 

 CONVERSION NOTICE 
 TO: HEADWATERS INCORPORATED 
 _______________ 
 The undersigned registered owner of this Note hereby irrevocably exercises the option to convert this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated, into cash and, if
applicable, shares of Common Stock of Headwaters Incorporated in accordance with the terms of the Indenture referred to in this Note, and directs that the shares, if any, issuable and deliverable upon such conversion, together with any check in
payment for cash, if any, payable upon conversion or for fractional shares and any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless a different name has been indicated below.
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. If shares or any portion of this Note not converted are to be issued in the name of a person other than the undersigned, the undersigned
will provide the appropriate information below and pay all transfer taxes payable with respect thereto. Any amount required to be paid by the undersigned on account of interest accompanies this Note. 
 Dated: 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 Signature(s) 
 Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended. 
 ________________________________________________________________________________________________________ 
 Fill in the registration of shares of
Common Stock, if any, if to be issued, and Notes if to be delivered, other than to and in the name of the registered holder: 
  

	
	  
	
	
	(Name)
	
	  

  

 A-11 

	
	
	(Street Address)
	
	  
	
	(City, State and Zip Code)
	
	 
	
	Please print name and address
	
	 Principal amount to be converted
 (if less
than all):

	
	$_______________________________________
	
	Social Security or Other Taxpayer
	
	 Social Security or Other Taxpayer
 Identification Number:

	
	 

  

 A-12 

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

 A-13 

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

 

 A-14 

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

 In connection with any transfer of the Note prior to the expiration of the holding period applicable to sales thereof under Rule 144(b)(1) under the
Securities Act (or any successor provision) (other than any transfer pursuant to a registration statement that has been declared effective under the Securities Act), the undersigned confirms that such Note is being transferred: 
  

	 	 ̈	To a “qualified institutional buyer” in compliance with Rule 144A under the Securities Act of 1933, as amended; or 

  

	 	 ̈	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended; or 

  

	 	 ̈	Pursuant to a Registration Statement which has been declared effective under the Securities Act of 1933, as amended, and which continues to be effective at the time of transfer;

 and unless the Note has been transferred to Headwaters Incorporated or a subsidiary thereof, the undersigned confirms that such Note is not
being transferred to an “affiliate” of the Company as defined in Rule 144 under the Securities Act of 1933, as amended. 
 Unless one of the boxes
is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered holder thereof. 
 Dated: 
  

 A-15 

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

	
	 
	Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as
may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
	
	 
	 Signature Guarantee
  
 NOTICE: The signature on the Conversion Notice, the Designated Event Repurchase Notice, the Repurchase Notice or the Assignment must correspond with the name as written
upon the face of the Note in every particular without alteration or enlargement or any change whatever.

  

 A-16 

 Schedule 1 
 HEADWATERS INCORPORATED 
 16% Convertible Senior Subordinated Notes due 2016 
 No. [        ] 
 The original
principal amount of this Note is [    ] DOLLARS ($[    ]). The principal amount has been adjusted in accordance with the terms of the Indenture as set forth below: 
 Date 
 Principal Amount

 Notation Explaining Principal 
 Amount Recorded 
 Authorized Signature of Trustee or Custodian 
  

 A-17

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