Document:

Indenture

 Exhibit 4.1 
  

  
 QUICKSILVER RESOURCES INC., 
  
 as Issuer, 
  
 and 
  
 JPMORGAN CHASE BANK, 
  
 as Trustee 
  

  
 INDENTURE 
  
 Dated as of November 1, 2004 
  

  
 1.875% Convertible
Subordinated Debentures Due 2024 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

	ARTICLE 1
	DEFINITIONS
			
	 Section 1.01.
	  	 Definitions
	  	1
	 Section 1.02.
	  	 Other Definitions.
	  	11
	ARTICLE 2
	ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF
NOTES
			
	 Section 2.01.
	  	 Designation Amount and Issue of Notes
	  	12
	 Section 2.02.
	  	 Form of Notes
	  	12
	 Section 2.03.
	  	 Date and Denomination of Notes; Payments of Interest
	  	13
	 Section 2.04.
	  	 Execution of Notes
	  	14
	 Section 2.05.
	  	 Exchange and Registration of Transfer of Notes; Restrictions on Transfer
	  	15
	 Section 2.06.
	  	 Mutilated, Destroyed, Lost or Stolen Notes
	  	21
	 Section 2.07.
	  	 Temporary Notes
	  	22
	 Section 2.08.
	  	 Cancellation of Notes
	  	23
	 Section 2.09.
	  	 CUSIP Numbers
	  	23
	ARTICLE 3
	REDEMPTION AND REPURCHASE OF NOTES
			
	 Section 3.01.
	  	 Company’s Right to Redeem
	  	23
	 Section 3.02.
	  	 Notice of Optional Redemption; Selection of Notes
	  	23
	 Section 3.03.
	  	 Payment of Notes Called for Redemption by the Company
	  	25
	 Section 3.04.
	  	 Conversion Arrangement on Call for Redemption
	  	26
	 Section 3.05.
	  	 Repurchase of Notes by the Company at Option of Holders upon a Change of Control
	  	26
	 Section 3.06.
	  	 Repurchase of Notes by the Company at Option of Holders on Specified Dates
	  	29
	 Section 3.07.
	  	 Company’s Notification to the Trustee
	  	31
	 Section 3.08.
	  	 Conditions and Procedures for Repurchase at Option of Holders
	  	31
	 Section 3.09.
	  	 Final Maturity Notice
	  	33
	
	ARTICLE 4
	PARTICULAR COVENANTS OF THE COMPANY
			
	 Section 4.01.
	  	 Payment of Principal and Interest
	  	34
	 Section 4.02.
	  	 Maintenance of Office or Agency
	  	34
	 Section 4.03.
	  	 Appointments to Fill Vacancies in Trustee’s Office
	  	34
	 Section 4.04.
	  	 Provisions as to Paying Agent
	  	34
	 Section 4.05.
	  	 Existence
	  	35
	 Section 4.06.
	  	 Rule 144A Information Requirement
	  	35
	 Section 4.07.
	  	 Stay, Extension and Usury Laws
	  	36
	 Section 4.08.
	  	 Compliance Certificate
	  	36
	 Section 4.09.
	  	 Liquidated Damages Notice
	  	36

					
	 Section 4.10.
	  	 Contingent Debt Tax Treatment and Withholding Taxes
	  	37
	
	ARTICLE 5
	NOTEHOLDERS’ LISTS AND REPORTS BY THE COMPANY
AND THE TRUSTEE
			
	 Section 5.01.
	  	 Noteholders’ Lists
	  	37
	 Section 5.02.
	  	 Preservation and Disclosure of Lists
	  	37
	 Section 5.03.
	  	 Reports by Trustee
	  	38
	 Section 5.04.
	  	 Reports by Company
	  	38
	
	ARTICLE 6
	REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN
EVENT OF DEFAULT
			
	 Section 6.01.
	  	 Events of Default
	  	38
	 Section 6.02.
	  	 Acceleration
	  	40
	 Section 6.03.
	  	 Payments of Notes on Default; Suit Therefor
	  	41
	 Section 6.04.
	  	 Other Remedies
	  	42
	 Section 6.05.
	  	 Waiver of Past Defaults
	  	42
	 Section 6.06.
	  	 Control by Majority
	  	43
	 Section 6.07.
	  	 Limitation on Suits
	  	43
	 Section 6.08.
	  	 Rights of Holders to Receive Payment
	  	44
	 Section 6.09.
	  	 Collection Suit by Trustee
	  	44
	 Section 6.10.
	  	 Trustee May File Proofs of Claim
	  	44
	 Section 6.11.
	  	 Priorities
	  	44
	 Section 6.12.
	  	 Undertaking for Costs
	  	45
	 Section 6.13.
	  	 Remedies Cumulative and Continuing
	  	45
	
	ARTICLE 7
	THE TRUSTEE
			
	 Section 7.01.
	  	 Duties of Trustee
	  	45
	 Section 7.02.
	  	 Rights of Trustee.
	  	47
	 Section 7.03.
	  	 Individual Rights of Trustee.
	  	48
	 Section 7.04.
	  	 Trustee’s Disclaimer
	  	48
	 Section 7.05.
	  	 Notice of Default
	  	49
	 Section 7.06.
	  	 [RESERVED]
	  	49
	 Section 7.07.
	  	 Compensation and Indemnity
	  	49
	 Section 7.08.
	  	 Replacement of Trustee
	  	50
	 Section 7.09.
	  	 Successor Trustee by Merger
	  	51
	 Section 7.10.
	  	 Eligibility; Disqualification
	  	51
	 Section 7.11.
	  	 Preferential Collection of Claims Against Company
	  	51
	
	ARTICLE 8
	THE NOTEHOLDERS
			
	 Section 8.01.
	  	 Action by Noteholders
	  	51
	 Section 8.02.
	  	 Proof of Execution by Noteholders
	  	52
	 Section 8.03.
	  	 Who Are Deemed Absolute Owners
	  	52
	 Section 8.04.
	  	 Company-owned Notes Disregarded
	  	52
	 Section 8.05.
	  	 Revocation of Consents, Future Holders Bound
	  	52

  

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	ARTICLE 9
	MEETINGS OF NOTEHOLDERS
			
	 Section 9.01.
	  	 Purpose of Meetings
	  	53
	 Section 9.02.
	  	 Call of Meetings by Trustee
	  	53
	 Section 9.03.
	  	 Call of Meetings by Company or Noteholders
	  	53
	 Section 9.04.
	  	 Qualifications for Voting
	  	54
	 Section 9.05.
	  	 Regulations
	  	54
	 Section 9.06.
	  	 Voting
	  	54
	 Section 9.07.
	  	 No Delay of Rights by Meeting
	  	55
	
	ARTICLE 10
	SUPPLEMENTAL INDENTURES
			
	 Section 10.01.
	  	 Supplemental Indentures Without Consent of Noteholders
	  	55
	 Section 10.02.
	  	 Supplemental Indenture with Consent of Noteholders
	  	57
	 Section 10.03.
	  	 Effect of Supplemental Indenture
	  	57
	 Section 10.04.
	  	 Notation on Notes
	  	58
	 Section 10.05.
	  	 Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee
	  	58
	
	ARTICLE 11
	CONSOLIDATION, MERGER, CONVEYANCE AND LEASE
	 Section 11.01.
	  	 When May Company Merge or Transfer Assets
	  	58
	 Section 11.02.
	  	 Successor to Be Substituted
	  	59
	
	ARTICLE 12
	SATISFACTION AND DISCHARGE OF INDENTURE
			
	 Section 12.01.
	  	 Discharge of Indenture
	  	60
	 Section 12.02.
	  	 Paying Agent to Repay Monies Held
	  	60
	 Section 12.03.
	  	 Return of Unclaimed Monies
	  	60
	
	ARTICLE 13
	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
DIRECTORS
			
	 Section 13.01.
	  	 Indenture and Notes Solely Corporate Obligations
	  	61
	
	ARTICLE 14
	CONVERSION OF NOTES
			
	 Section 14.01.
	  	 Right to Convert
	  	61
	 Section 14.02.
	  	 Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest or Dividends; Settlement of Cash or
Common Stock Upon Conversion
	  	65
	 Section 14.03.
	  	 Cash Payments in Lieu of Fractional Shares
	  	69
	 Section 14.04.
	  	 Conversion Rate
	  	69
	 Section 14.05.
	  	 Adjustment of Conversion Rate
	  	69
	 Section 14.06.
	  	 Effect of Reclassification, Consolidation, Merger or Sale
	  	75
	 Section 14.07.
	  	 Taxes on Shares Issued
	  	76

  

 iii 

					
	Section 14.08.	 	 Reservation of Shares, Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock
	  	76
	 Section 14.09.
	 	 Responsibility of Trustee
	  	77
	 Section 14.10.
	 	 Notice to Holders Prior to Certain Actions
	  	78
	 Section 14.11.
	 	 Stockholder Rights Plans
	  	78
	
	ARTICLE 15
	SUBORDINATION
			
	 Section 15.01.
	 	 Agreement to Subordinate
	  	79
	 Section 15.02.
	 	 Payment to Noteholders
	  	79
	 Section 15.03.
	 	 Subrogation of Notes
	  	82
	 Section 15.04.
	 	 Authorization to Effect Subordination
	  	83
	 Section 15.05.
	 	 Notice to Trustee
	  	83
	 Section 15.06.
	 	 Trustee’s Relation to Senior Indebtedness
	  	84
	 Section 15.07.
	 	 No Impairment of Subordination
	  	84
	 Section 15.08.
	 	 Certain Conversions Deemed Payment
	  	84
	 Section 15.09.
	 	 Article Applicable to Paying Agents
	  	84
	 Section 15.10.
	 	 Senior Indebtedness Entitled to Rely
	  	85
	 Section 15.11.
	 	 Reinstatement
	  	85
	 Section 15.12.
	 	 Actions by Holders of Senior Indebtedness
	  	85
	
	ARTICLE 16
	CONTINGENT INTEREST
			
	 Section 16.01.
	 	 Contingent Interest
	  	85
	 Section 16.02.
	 	 Payment of Contingent Interest
	  	86
	 Section 16.03.
	 	 Contingent Interest Notification
	  	86
	
	ARTICLE 17
	MISCELLANEOUS PROVISIONS
			
	 Section 17.01.
	 	 Provisions Binding on Company’s Successors
	  	86
	 Section 17.02.
	 	 Official Acts by Successor Company
	  	86
	 Section 17.03.
	 	 Addresses for Notices, Etc
	  	86
	 Section 17.04.
	 	 Governing Law
	  	87
	 Section 17.05.
	 	 Evidence of Compliance with Conditions Precedent, Certificates to Trustee
	  	87
	 Section 17.06.
	 	 Legal Holidays
	  	87
	 Section 17.07.
	 	 Company Responsible for Making Calculations
	  	87
	 Section 17.08.
	 	 Trust Indenture Act
	  	88
	 Section 17.09.
	 	 No Security Interest Created
	  	88
	 Section 17.10.
	 	 Benefits of Indenture
	  	88
	 Section 17.11.
	 	 Table of Contents, Headings, Etc.
	  	88
	 Section 17.12.
	 	 Authenticating Agent
	  	88
	 Section 17.13.
	 	 Execution in Counterparts
	  	89
	 Section 17.14.
	 	 Severability
	  	89
			
	 Exhibit A:
	 	       Form of Note
	  	A-1
	 Schedule I:
	 	       Number of Additional Shares
	  	 

  

 iv 

 INDENTURE 
  

INDENTURE dated as of November 1, 2004, between Quicksilver Resources Inc., a Delaware corporation (hereinafter called the “Company”),
and JPMorgan Chase Bank, a state banking organization duly organized and existing under the laws of the State of New York, as trustee hereunder (hereinafter called the “Trustee”). 
  
 WITNESSETH: 
  
 WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the issue of its 1.875% Convertible Subordinated Debentures due 2024 (hereinafter called the “Notes”) in an aggregate principal amount not to exceed $150,000,000, 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 change of control repurchase election, a
form of Company repurchase election 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, in each case in accordance with the terms of this Indenture, 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; and all acts and things necessary to duly authorize the issuance of the Common Stock of the Company initially issuable
upon conversion of the Notes, and to duly reserve for issuance the number of shares of Common Stock initially issuable upon such conversion, have been done; 
  
 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) for all purposes of this
Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined in the
Securities Act (except as herein otherwise expressly provided or unless the context otherwise requires) shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the execution of
this Indenture. The words “herein”, “hereof”, “hereunder” and words of similar import refer to this Indenture as a whole 

 
and not to any particular Article, Section or other Subdivision. The terms defined in this Article include the plural as well as the singular. 
  
 “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. 
  
 “Applicable Five-Day Trading Period” means, with respect to any Interest Period as to which Contingent Interest may be payable, the five Trading Days ending on the third Trading Day immediately
preceding the first day of such Interest Period. 
  
 “Bank
Indebtedness” means any and all amounts payable by the Company under or in respect of the Combined Credit Agreements and any refinancing indebtedness (including, without limitation, any renewals, replacements, refundings, restatements,
substitutions or any other refinancings of any kind) with respect thereto that may be incurred from time to time (whether before or after termination of the Combined Credit Agreements) (including increasing the amount available for borrowing
thereunder and including refinancings with the same or different lenders or agents), as amended, modified or supplemented from time to time, including principal, premium, if any, interest (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, guarantees and all other amounts payable
thereunder or in respect thereof. 
  
 “Bankruptcy
Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
  
 “Bankruptcy Law” means Title 11, United States 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. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York or the Federal Reserve Bank of Dallas is closed. 
  
 “capital stock” of any Person means any and all shares
(including ordinary shares of american depositary shares), interests, participations or other equivalents however designated of corporate stock or other equity participations, including partnership interests, whether general or limited, of such
Person and any rights (other than debt securities convertible or exchangeable into an equity interest), warrants or options to acquire an equity interest in such Person. 
  
 “cash” means U.S. legal tender. 
  
 “Change of Control” means any transaction or event (whether by means of an exchange offer, liquidation,
tender offer, consolidation, merger, combination, reclassification, 
  

 2 

 recapitalization or otherwise) in connection with which all or substantially all of the Company’s Common Stock or
assets are exchanged for, converted into, acquired for or constitutes solely the right to receive cash, securities or other property; provided that a “Change of Control” shall not be deemed to occur if at least 90% of the
consideration (other than cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights) to be received consists of shares of capital stock that has no preference in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the issuer thereof and that is traded or scheduled to be traded immediately following such transaction or event on a national securities exchange or the
Nasdaq National Market. 
  
 “Closing Price” of
the Company’s Common Stock (or the capital stock or other equity interest of any of its Subsidiaries for purposes of calculating the Spin-off Market Price) on any date means the closing sale price per share (or, if no closing sale price is
reported, the average of the bid and asked prices or, if more than one in either case, the average of the average bid and the average asked prices) on that date as reported for composite transactions by the principal U.S. national or regional
securities exchange on which the Company’s Common Stock (or the capital stock or other equity interest of such Subsidiary for purposes of calculating the Spin-off Market Price) is traded or, if the Common Stock (or the capital stock or other
equity interest of such Subsidiary for purposes of calculating the Spin-off Market Price) of the Company is not listed on a U.S. national or regional securities exchange, as reported by the Nasdaq National Market. The “Closing Price” will
be determined without reference to after-hours or extended market trading. If the Common Stock of the Company (or the capital stock or other equity interest of such Subsidiary for purposes of calculating the Spin-off Market Price) is not listed for
trading on a U.S. national or regional securities exchange and not reported by the Nasdaq National Market on the relevant date, the “Closing Price” will be the last quoted bid for the Company’s Common Stock (or the capital stock or
other equity interest of such Subsidiary for purposes of calculating the Spin-off Market Price) in the over-the-counter market on the relevant date as reported by the National Quotation Bureau or similar organization. If the Company’s Common
Stock (or the capital stock or other equity interest of such Subsidiary for purposes of calculating the Spin-off Market Price) is not so quoted, the “Closing Price” will be the average of the midpoint of the last bid and ask prices for the
Company’s Common Stock (or the capital stock or other equity interest of such Subsidiary for purposes of calculating the Spin-off Market Price) on the relevant date from each of at least three nationally recognized independent investment
banking firms selected by the Company for this purpose. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Combined Credit Agreements” means (a) the Credit Agreement, dated as of July 28, 2004, among the Company, as borrower; Bank One, NA, as global administrative agent; the lenders from time to time
parties thereto; BNP Paribas and Bank of America, N.A., as co-global syndication agents; and Fortis Capital Corp. and The Bank of Nova Scotia, as co-global documentation agents, as amended by the First Amendment to the “Combined Credit
Agreements,” dated as of September 21, 2004 (the “First Amendment”) and as further amended, restated, supplemented, waived, replaced, whether or not upon termination, and whether with the original lenders or otherwise,
refinanced, restructured or otherwise modified from time to time, (b) the Credit Agreement, dated as of July 28, 2004, among MGV Energy Inc., as borrower, Bank One, NA, as global administrative agent; Bank One, NA, Canada Branch, as Canadian
administrative agent; the lenders from time to time parties thereto; BNP 
  

 3 

 Paribas and Bank of America, N.A., as co-global syndication agents; and Fortis Capital Corp. and The Bank of Nova Scotia,
as co-global documentation agents, as amended by the First Amendment and as further amended, restated, supplemented, waived, replaced, whether or not upon termination, and whether with the original lenders or otherwise, refinanced, restructured or
otherwise modified from time to time, and (c) the Combined Loan Documents (as such term is defined in the “Combined Credit Agreements”). 
  
 “Commission” means the Securities and Exchange Commission, 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 14.06, 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 per share, of the Company) 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 14.06, shall include its successors and assigns. 
  
 “Conversion Agent” means the Trustee or such other office or agency designated by the Company where Notes may be presented for conversion. 
  
 “Conversion Price” as of any day means $1,000 divided by the Conversion Rate as of such date and rounded to
the nearest cent. The Conversion Price shall initially be $45.84 per share of Common Stock. 
  
 “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 600 Travis Street, Suite 1150, Houston, Texas 77002, Attention: Corporate Trust Department. 
  
 “Current Market Price” of the Company’s Common Stock on any day means the average of the Closing Price
per share of the Company’s Common Stock for each of the 10 consecutive Trading Days ending on the earlier of the day in question and the day before the “Ex-Dividend Date” with respect to the issuance or distribution requiring such
computation. 
  
 “Custodian” means the Trustee,
as custodian with respect to the Notes, or any successor entity thereto. 
  

 4 

 “Default” means any event that is, or after notice or passage of time, or both, would
be, an Event of Default. 
  
 “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 Senior Indebtedness” means (a) all Indebtedness under the Combined Credit Agreements and the Senior Subordinated Indebtedness
and (b) any other Senior Indebtedness, the outstanding aggregate principal amount of which at the time of determination is equal to or greater than $25,000,000 and that is specifically identified by the Company in the instrument governing or
evidencing the Indebtedness as “Designated Senior Indebtedness.” 
  
 “Designated Subsidiary” of the Company means any existing or future, direct or indirect, Subsidiary of the Company whose assets constitute 15% or more of the Company’s total assets on a
consolidated basis. For purposes of Section 6.01(i) and (j) hereof, “Designated Subsidiary” shall also mean any group of two or more Subsidiaries that, taken as a whole, would constitute a “Designated Subsidiary.”

  
 “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 Date” is the first date upon which a sale of the Common Stock, regular way on the relevant exchange or in the relevant
market for the Company’s Common Stock, does not automatically transfer the right to receive the relevant dividend or distribution from the seller of the Common Stock to its buyer. 
  
 “Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly
guaranteeing any Indebtedness or other payment obligation of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other payment obligation of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (b) entered into for purposes of assuring in any other manner the obligee of such Indebtedness or other payment obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in
part); provided, however, that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a corresponding
meaning. The term “Guarantor” shall mean any Person Guaranteeing any obligation. 
  
 “Incur” means issue, assume, Guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or capital stock of a Person existing at the time such Person
becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Subsidiary. The term “Incurrence” when used as a noun shall have a correlative
meaning. The accretion of principal 

  

 5 

 
of a non-interest bearing or other discount security shall not be deemed the Incurrence of Indebtedness. 
  
 “Indebtedness” means, with respect to any Person on any date
of determination, without duplication, the principal or face amount of (i) all of the Company’s indebtedness, payment obligations and other monetary liabilities, contingent or otherwise, (A) for borrowed money, including overdrafts, foreign
exchange contracts, currency exchange agreements, interest rate protection agreements, and any loans or advances from banks, whether or not evidenced by notes or similar instruments, or (B) evidenced by credit or loan agreements, bonds, debentures,
notes or similar instruments, whether or not the recourse of the lender is to the whole of the Company’s assets or to only a portion thereof, other than any account payable or other accrued current liability or obligation incurred in the
ordinary course of business in connection with the obtaining of materials or services; (ii) all of the Company’s reimbursement obligations and other monetary liabilities, contingent or otherwise, with respect to letters of credit, bank
guarantees or bankers’ acceptances; (iii) all of the Company’s payment obligations and monetary liabilities, contingent or otherwise, in respect of leases required, in conformity with generally accepted accounting principles, to be
accounted for as capitalized lease obligations on the Company’s balance sheet; (iv) all of the Company’s payment obligations and other monetary liabilities, contingent or otherwise, under any lease or related document, including a purchase
agreement, conditional sale or other title retention agreement, in connection with the lease of real property or improvements thereon (or any personal property included as part of any such lease) which provides that the Company is contractually
obligated to purchase or cause a third party to purchase the leased property or pay an agreed upon residual value of the leased property, including the Company’s payment obligations under such lease or related document to purchase or cause a
third party to purchase such leased property or pay an agreed upon residual value of the leased property to the lessor; (v) all of the Company’s payment 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; (vi) all of the Company’s direct or indirect Guarantees or
similar agreements by the Company in respect of, and all of the Company’s payment obligations or monetary liabilities to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness, payment obligations
or monetary liabilities of another Person of the kinds described in clauses (i) through (v); and (vii) any and all deferrals, renewals, extensions, refinancings and refundings of, or amendments, modifications or supplements to, any indebtedness,
payment obligation or monetary liability of the kinds described in clauses (i) through (vi). 
  
 “Indenture” means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 
  
 “Interest” means, when used with reference to the Notes, any interest payable under the terms of the Notes,
including Contingent Interest, if any, and Liquidated Damages, if any, payable under the terms of the Registration Rights Agreement. 
  
 “Interest Payment Date” means November 1 and May 1 of each year, commencing May 1, 2005. 
  

 6 

 “Interest Period” means (i) with respect to the first interest period, the period from
the Original Issue Date of the Notes to and including April 30, 2005 and (ii) thereafter, any six-month period from May 1 to and including October 31 and from November 1 to and including April 30, commencing on or after May 1, 2005 and ending before
the Stated Maturity, except that with respect to the first period for which Contingent Interest is payable, such period shall be from November 8, 2011 to and including April 30, 2012. 
  
 “Liquidated Damages” has the meaning specified for “Liquidated Damages” in Section 3(a) of the
Registration Rights Agreement. 
  
 “Note” or
“Notes” means any Note or Notes, as the case may be, authenticated and delivered under this Indenture, including any Global Note. 
  
 “Noteholder” or “holder” as applied to any Note, or other similar terms (but excluding the term “beneficial
holder”), means any Person in whose name, at the time in question, a particular Note is registered on the Note Registrar’s books. 
  
 “Officers’ Certificate”, when used with respect to the Company or a Subsidiary Guarantor, means a certificate signed by any two of
the Chairman of the Board, the Chief Executive Officer, the President, the Chief Financial Officer, the Chief Operating Officer, any Vice President (whether or not designated by a number or numbers or word or words added before or after the title
“Vice President”), the Treasurer or the Secretary of the Company or such Subsidiary Guarantor, as the case may be; provided that the Officers’ Certificate delivered on the date hereof pursuant to Section 17.05 may be signed by any one
of the foregoing. 
  
 “Opinion of Counsel” means
an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company. 
  
 “Original Issue Date” means November 1, 2004. 
  
 “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 into Common Stock pursuant to Article
14 and Notes deemed not outstanding pursuant to Article 3. 
  
 “Paying Agent” means the Trustee or such other office or agency designated by the Company where Notes may be presented for payment. 
  

 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 Private Offerings Resales and Trading through Automated Linkages Market operated
by the National Association of Securities Dealers, 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 lieu of a lost, destroyed or stolen Note shall be deemed to evidence the same debt as the lost, destroyed or stolen Note that it replaces. 
  
 “Purchase Agreement” means the Purchase Agreement, dated as
of October 26, 2004, among the Company and Banc of America Securities LLC (“BAS”), as representative of the initial purchasers named therein (the “Initial Purchasers”), as amended from time to time in accordance
with its terms. 
  
 “Registration Rights
Agreement” means the Resale Registration Rights Agreement, dated as of November 1, 2004, among the Company and BAS, as representative of the Initial Purchasers, as amended from time to time in accordance with its terms. 
  
 “Regular Record Date” means, with respect to each Interest
Payment Date, the close of business on the April 15 or October 15 next preceding such Interest Payment Date (whether or not a Business Day). 
  
 “Representative” means the trustee, agent or representative (if any) for an issue of Senior Indebtedness, and specifically in the case of
the Combined Credit Agreements, the “Global Administrative Agent” thereunder or any other Representative having the consent of the Required Lenders (as such term is defined in the Combined Credit Agreements). 
  
 “Repurchase Date” means the Change of Control Repurchase
Date or the Company Repurchase Date, as applicable. 
  
 “Repurchase Election” means the Change of Control Repurchase Election or the Company Repurchase Election, as applicable. 
  
 “Repurchase Notice” means the Change of Control Repurchase Offer or the Company Repurchase Notice, as applicable. 
  
 “Repurchase Price” means the Change of Control Repurchase
Price or the Company Repurchase Price, as applicable. 
  
 “Responsible Officer” means, 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 

  

 8 

 
with the particular subject and who shall have direct responsibility for the administration of this Indenture. 
  
 “Rule 144A” means Rule 144A as promulgated under the
Securities Act, as in effect from time to time. 
  
 “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” of the Company means the principal of, premium (if any) and accrued and unpaid
interest, including any interest accruing after the commencement of any bankruptcy or similar proceeding, whether or not a claim for post-petition interest is allowed as a claim in the proceeding, and rent payable on or in connection with, and all
fees, costs, expenses and other amounts accrued or due on or in connection with, Bank Indebtedness, Senior Subordinated Indebtedness and all other Indebtedness of the Company, whether secured or unsecured, absolute or contingent, due or to become
due, 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. “Senior Indebtedness” does not include: (i) Indebtedness that expressly provides that such Indebtedness will not be senior in right of payment to the Notes or expressly provides that such Indebtedness is on parity with
or junior in right of payment to the Notes; (ii) any Indebtedness to any of the Company’s Subsidiaries, other than Indebtedness to the Company’s Subsidiaries arising by reason of Guarantees of the Company of Indebtedness of such Subsidiary
to a Person that is not the Company’s Subsidiary; and (iii) Indebtedness for trade payables or the deferred purchase price of assets or services Incurred in the ordinary course of business. 
  
 “Senior Subordinated Indebtedness” of the Company means any
and all Indebtedness of the Company under or in respect of (a) the Note Purchase Agreement, dated as of June 27, 2003 (the “Note Purchase Agreement”), among the Company, BNP Paribas, as collateral agent, and the purchasers from time
to time parties thereto, with respect to the issuance and sale of $70,000,000 aggregate principal amount of Senior Subordinated Second Lien Mortgage Notes due December 31, 2006, as amended by the First Amendment to the Note Purchase Agreement, dated
as of January 30, 2004, the Second Amendment to the Note Purchase Agreement, dated as of July 28, 2004, and the Third Amendment to the Note Purchase Agreement, dated as of September 14, 2004, and as further amended, restated, supplemented, waived,
replaced, whether or not upon termination, and whether with the original purchasers or otherwise, refinanced, restructured or otherwise modified from time to time, and (b) the other Transaction Documents (as such term is defined in the Note Purchase
Agreement, as amended). 
  
 “Spin-off Market
Price” per share of Common Stock of the Company or the capital stock of, or similar equity interests in, a Subsidiary or other business unit of the Company on any day means the average of the daily Closing Price for the 10 consecutive
Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Date with respect to the issuance or distribution requiring such computation. 
  
 “Stated Maturity” means November 1, 2024. 
  

 9 

 “Stock Price” means the price per share of Common Stock paid in connection with a
corporate transaction pursuant to which Additional Shares are issuable as set forth in Section 14.01(d) hereof, which shall be equal to (i) if holders of Common Stock receive only cash in such corporate transaction, the cash amount paid per share of
Common Stock and (ii) in all other cases, the average of the Closing Prices of Common Stock on the five consecutive Trading Days up to but not including the effective date of such transaction. 
  
 “Stock Record Date” means, 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 stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or
otherwise). 
  
 “Subordinated Obligation” 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” of any Person means 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 (including partnership interests) 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). 
  
 “Trading Day” means a day during which trading in securities
generally occurs on the New York Stock Exchange or, if the Company’s Common Stock is not listed on the New York Stock Exchange, on the principal U.S. national or regional securities exchange on which the Company’s Common Stock is then
listed or, if the Company’s Common Stock is not listed on a U.S. national or regional securities exchange and is not reported by the New York Stock Exchange, on the principal other market on which the Company’s Common Stock is then traded.

  
 “Trading Price” of Notes on any date of
determination means the average of the secondary market bid quotations per $1,000 original principal amount of the Notes obtained by the Trustee for $15,000,000 original principal amount of the Notes at approximately 3:30 p.m., New York City time,
on such determination date from three independent nationally recognized securities dealers the Company selects; provided that if three such bids cannot reasonably be obtained, but two such bids are obtained, then the average of the two bids will be
used, and if only one such bid can reasonably be obtained, that one bid will be used. If the Trustee cannot reasonably obtain at least one bid for $15,000,000 original principal amount of the Notes from a nationally recognized securities dealer, or
in the Company’s reasonable judgment, the bid quotations are not indicative of the secondary market value of $1,000 original principal amount of the Notes, then, (a) for purposes of any determination of whether Contingent Interest is payable or
of the amount of any Contingent Interest pursuant to Article 16, the Trading Price of the Notes on any date of determination shall equal the product of (i) the Conversion Rate for the Notes and (ii) the average Closing Price of the Common Stock on
the five consecutive Trading Days ending on such determination date and (b) for purposes of any determination of whether the condition to conversion of Notes is satisfied pursuant to Section 14.01(a), the Company may 
  

 10 

 elect, in its sole discretion, to deem the Trading Price per $1,000 original principal amount of Notes to be less than
98% of the product of the (i) Closing Price of the Common Stock and (ii) the applicable Conversion Rate. 
  
 “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 14.06; 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 JPMorgan
Chase Bank 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. 
  
 “Voting Stock” of a Person means all classes of capital
stock or other interests (including partnership interests) of such Person then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof. 
  
 Section 1.02. Other Definitions. 
  

			
	 Term

	 	 Defined in
Section

	 “Additional Amounts Notice”
	 	4.09
	 “Additional Shares”
	 	14.01(d)
	 “Adjustment Event”
	 	14.05(n)
	 “Agent Members”
	 	2.05(b)(v)
	 “Cash Amount”
	 	14.02(h)
	 “Cash Settlement Averaging Period”
	 	14.02(g)
	 “Cash Settlement Notice Period”
	 	14.02(i)(i)
	 “Company Repurchase Date”
	 	3.06(a)
	 “Company Repurchase Election”
	 	3.06(c)(i)
	 “Company Repurchase Notice”
	 	3.06(b)
	 “Company Repurchase Price”
	 	3.06(a)
	 “Contingent Interest”
	 	16.01
	 “Conversion Date”
	 	14.02(c)
	 “Conversion Notice”
	 	14.02(a)
	 “Conversion Obligation”
	 	14.02(g)
	 “Conversion Rate”
	 	14.04
	 “Conversion Retraction Period”
	 	14.02(g)(i)
	 “Defaulted Interest”
	 	2.03
	 “Determination Date”
	 	14.05(n)
	 “effective date”
	 	14.01(d)
	 “Event of Default”
	 	6.01
	 “Expiration Time”
	 	14.05(f)
	 “Final Maturity Notice”
	 	3.09
	 “Final Notice Date”
	 	14.02(g)

  

 11 

			
	 “Change of Control Repurchase Offer”
	 	3.05(b)
	 “Change of Control Repurchase Election”
	 	3.05(c)(i)
	 “Change of Control Repurchase Date”
	 	3.05(a)
	 “Change of Control Repurchase Price”
	 	3.05(a)
	 “Global Note”
	 	2.02
	 “Junior Securities”
	 	15.08
	 “non-electing share”
	 	14.06
	 “Note Register”
	 	2.05(a)
	 “Note Registrar”
	 	2.05(a)
	 “Payment Blockage Period”
	 	15.02
	 “Public Acquirer Change of Control”
	 	14.01(e)
	 “Public Acquirer Common Stock”
	 	14.01(e)
	 “Redemption Date”
	 	3.02(a)
	 “Redemption Notice”
	 	3.02(a)
	 “Redemption Price”
	 	3.01
	 “Restricted Securities”
	 	2.05(c)
	 “Special Record Date”
	 	2.03
	 “Successor Company”
	 	11.01(a)

  
 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 “1.875% Convertible Subordinated Debentures due 2024”. Notes not to exceed the aggregate principal amount of $150,000,000 (except pursuant to Sections
2.05, 2.06, 3.08 and 14.02 hereof) upon the execution of this Indenture, may be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the written order
of the Company, signed by its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer, its Chief Operating Officer, any Vice President (whether or not designated by a number or numbers or word or words added
before or after the title “Vice President”), its Treasurer, its Secretary or any Assistant Secretary, without any further action by the Company hereunder. 
  
 Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be borne by such Notes
shall be substantially in the form set forth in Exhibit A. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable,
the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
  
 Any of the Notes may have such letters, numbers or other marks of identification and such notations, legends, endorsements or changes as the officers
executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required by the Custodian, the Depositary or by the National Association of
Securities Dealers, Inc. 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 

 

 12 

 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(b), 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(b), beneficial holders of a Global Note shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered
holders of such Global Note. 
  
 Any Global Note shall represent
such of the outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby
may from time to time be increased or reduced to reflect redemptions, repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding
Notes represented thereby shall be made by the Trustee or the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Notes in accordance with this Indenture. Payment of principal of and Interest
on any Global Note shall be made to the holder of such Note. 
  
 Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be issuable in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. Each Note shall be dated
the date of its authentication and shall bear interest from the date specified on the face of the form of Note attached as Exhibit A hereto. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months.

  
 The Person in whose name any Note (or its Predecessor Note) is
registered on the Note Register at the close of business on the Regular Record Date with respect to an Interest Payment Date shall be entitled to receive the Interest payable on such Interest Payment Date, except that the Interest payable upon
redemption or repurchase will be payable to the Person to whom principal is payable pursuant to such redemption or repurchase (unless the Redemption Date or the Repurchase Date, as the case may be, is an Interest Payment Date, in which case the
semi-annual payment of Interest becoming due on such date shall be payable to the holders of such Notes registered as such on the applicable Regular Record Date). Notwithstanding the foregoing, if any Note (or portion thereof) is converted into
Common Stock during the period after a Regular Record Date 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). 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 (or upon written notice from the registered 
  

 13 

 holder thereof, by wire transfer in immediately available funds, if such Person is entitled to Interest on Notes with an
aggregate principal amount in excess of $5,000,000) or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. 
  
 Any Interest on any Note which is payable, but is not punctually paid or duly provided for, on any November 1 or May 1
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the Noteholder on the relevant Regular 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 the date 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 25 days after the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest that shall be not more than 15 days and not less than ten days prior to the date
of the proposed payment, and not less than ten days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each holder at his address as it appears in the Note Register, not less than ten days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (2) of this Section 2.03. 
  
 (2) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements
of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 
  
 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
President, Chief Executive Officer, Chief Financial Officer, any Vice President (whether or not designated by a number or numbers or word or words added before or after the title “Vice President”), its Treasurer, its Secretary or any
Assistant Secretary. 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 
  

 14 

 executed by the Trustee (or an authenticating agent appointed by the Trustee as provided by Section 17.12), 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. 
  
 In case any officer of the Company who shall have signed any of the Notes shall cease to be such officer before the Notes so signed shall have been
authenticated and delivered by the Trustee, or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or disposed of as though the person who signed such Notes had not ceased to be such officer of the Company, and any
Note may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Note, shall be the proper officers of the Company, although at the date of the execution of this Indenture any such person was not such an
officer. 
  
 Section 2.05. Exchange and Registration of
Transfer of Notes; 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 Note Register shall be in written form or in any form capable of being converted into written form within a reasonably prompt period of time. The Trustee is hereby appointed “Note Registrar” for the purpose of registering Notes
and transfers of Notes as herein provided. The Company may appoint one or more co-registrars in accordance with Section 4.02. 
  
 Upon surrender for registration of transfer of any Note to the Note Registrar or any co-registrar, and satisfaction of the requirements for such transfer
set forth in this Section 2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized denominations and of a like aggregate
principal amount and bearing such restrictive legends as may be required by this Indenture. 
  
 Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at the Corporate Trust Office of the Trustee or any other
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 that 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 

  

 15 

 
transfer in form satisfactory to the Company, 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 15 days next preceding any selection of Notes to be redeemed, (b) any Notes or portions thereof called for redemption pursuant to Section 3.01, (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 that it is unwilling or unable to continue as Depositary for such Global Note and a successor depositary has not been appointed by
the Company within ninety days or (ii) has ceased to be a clearing agency registered under the Exchange Act, (B) an Event of Default has occurred and is continuing, 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 Notes 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 
  

 16 

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

  
 (vi) At such time as all interests in a
Global Note have been redeemed, retired, 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, retired, 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 holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used in Section 2.05(c) and 2.05(d), the term
“transfer” encompasses any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest therein. 
  

 17 

 Until the expiration of the holding period applicable to sales thereof under Rule 144(k) 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: 
  
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY COMMON STOCK ISSUABLE
UPON CONVERSION OF SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO QUICKSILVER RESOURCES INC. (THE
“ISSUER”), (B) 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), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR UPON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION). 
  
 THIS SECURITY IS SUBJECT TO UNITED STATES FEDERAL INCOME TAX
REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS. FOR 
  

 18 

 PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE DATE OF THIS SECURITY IS NOVEMBER 1,
2004 AND THE COMPARABLE YIELD OF THIS SECURITY IS 6.75%, COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE TREATED AS THE YIELD TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES). 
  
 THE ISSUER AGREES, AND BY ACCEPTING A BENEFICIAL OWNERSHIP INTEREST IN THIS SECURITY EACH HOLDER AND ANY BENEFICIAL OWNER OF THIS SECURITY
WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (1) TO TREAT THIS SECURITY AS A DEBT INSTRUMENT THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE “CONTINGENT PAYMENT REGULATIONS”), (2) TO TREAT THE FAIR MARKET
VALUE OF ANY COMMON STOCK RECEIVED UPON ANY CONVERSION OF THIS SECURITY OR UPON A PURCHASE OF THIS SECURITY AT THE HOLDER’S OPTION AS A CONTINGENT PAYMENT FOR PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, AND (3) TO ACCRUE INTEREST WITH
RESPECT TO THE SECURITY AS ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES ACCORDING TO THE “NONCONTINGENT BOND METHOD,” SET FORTH IN THE CONTINGENT PAYMENT REGULATIONS, AND TO BE BOUND BY THE ISSUER’S
DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT PAYMENT REGULATIONS, WITH RESPECT TO THIS SECURITY. THE ISSUER AGREES TO PROVIDE PROMPTLY TO THE HOLDER OF THIS
SECURITY, UPON WRITTEN REQUEST, THE ISSUE PRICE, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD BE SENT TO THE ISSUER AT THE FOLLOWING ADDRESS: QUICKSILVER RESOURCES INC., 777 WEST
ROSEDALE STREET, SUITE 300, FORT WORTH, TEXAS 76104, ATTENTION: TREASURER. 
  
 THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT DATED AS OF NOVEMBER 1, 2004 AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.

  
 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 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 first paragraph of 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 first paragraph of the legend set forth in this Section 2.05(c) shall be increased by an equal principal amount. If a Global Note without the first paragraph of the legend set forth in this Section
2.05(c) has not been executed, authenticated and delivered, the Company shall execute and the Trustee shall authenticate and deliver an unlegended Global Note to the Depositary. 
  

 19 

 (d) Until the expiration of the holding period applicable to sales thereof under Rule 144(k) 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 any similar provision
then in force, or unless otherwise agreed by the Company in writing with written notice thereof to the transfer agent: 
  
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM,
OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)); (2) AGREES
ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k)
UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO QUICKSILVER RESOURCES INC. (THE “ISSUER”), (B) 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), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND
(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR
UPON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). 
  

 20 

 THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT DATED AS OF NOVEMBER 1, 2004
AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT. 
  
 Any such Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms or as to which the conditions for
removal of the foregoing legend set forth therein have been satisfied may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common Stock, be
exchanged for a new certificate or certificates for a like number of shares of Common Stock, which shall not bear the restrictive legend required by this Section 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(k) 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); or provided that such restriction shall not apply if such Notes or Common Stock are sold in such a manner that other Notes and Common Stock that constitute “restricted securities” (as defined under Rule 144)
are not commingled with Notes or Common Stock being sold. 
  
 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 or beneficial holders of interests 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, of like tenor and principal amount, 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, the
Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by the Company, the Trustee and, if applicable, the authenticating agent, 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 Company, the Trustee or such authenticating agent, as the case may be, of satisfactory security or indemnity and evidence, as described in the preceding 
  

 21 

 paragraph, the Trustee or such authenticating agent may authenticate any such substituted Note and make available for
delivery such Note. Upon the issuance of any substituted Note, the Company may require the payment by the holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other
expenses connected therewith. In case any Note which has matured or is about to mature or has been called for redemption or has been tendered for repurchase upon a Change of Control (and not withdrawn) or has been surrendered for repurchase on a
Repurchase Date (and not withdrawn) or is to be converted into Common Stock shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Note, pay, convert, redeem or repurchase or authorize the payment,
conversion, redemption or repurchase 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 from 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 any 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 the Corporate Trust Office of the
Trustee or any other 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 benefits and subject
to the same 

  

 22 

 
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 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 and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption 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. Company’s Right to Redeem. Prior to November 8, 2011, the Notes will not be redeemable at the
Company’s option. At any time on or after November 8, 2011 and prior to Stated Maturity, the Company, at its option, may redeem the Notes in accordance with the provisions of Section 3.02, Section 3.03 and Section 3.04 on the Redemption Date
for cash, in whole or in part, at a redemption price (the “Redemption Price”) equal to 100% of the principal amount of the Notes to be redeemed together with any accrued and unpaid Interest on the Notes to (but excluding) the
Redemption Date. 
  
 Section 3.02. Notice of Optional
Redemption; Selection of Notes 
  
 (a) 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 (the “Redemption Date”) and it or, at its written request received by the
Trustee not fewer than 35 days prior (or such shorter period of time as may be acceptable to the Trustee) to the Redemption Date, the Trustee in the name of and at the expense of the Company, shall mail or cause to be mailed a notice of such
redemption (a “Redemption Notice”) not fewer than 30 nor more than 60 days prior to the Redemption Date to each holder of Notes so to be redeemed as a whole or in part at its last address as the same appears on the Note Register;
provided that if the Company shall give such notice, it shall also give written notice of the Redemption Date to the Trustee. Such mailing shall be by first class mail. The notice, if mailed in the manner herein provided, shall be conclusively
presumed to have been duly given, whether or not the holder receives such notice. In any case, failure to give such notice by mail or any defect in the notice to the holder of 
  

 23 

 any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the
redemption of any other Note. Concurrently with the mailing of any such Redemption Notice, 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. 
  
 (b) Each such Redemption Notice shall specify the aggregate principal amount
of Notes to be redeemed, the CUSIP number or numbers of the Notes being redeemed (subject to Section 2.09), the Redemption Date (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 and unpaid to the Redemption Date will be paid as specified in said notice, and that at the close of business on the Business Day immediately preceding
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, the date on which the right to convert such Notes or portions thereof into Common Stock will expire
(which shall be the close of business on the second Business Day immediately prior to the Redemption Date), and, if the Company has determined to satisfy in cash all or any portion of the Conversion Obligation of Notes converted prior to the
redemption, the dollar amount or percentage of the Conversion Obligation to be satisfied in cash (which must be expressed either as a fixed dollar amount or fixed percentage of the Conversion Obligation). If fewer than all the Notes are to be
redeemed, the Redemption Notice shall identify the Notes to be redeemed (including CUSIP numbers, if any), in each case determined in accordance with the procedure set forth in clause (d) hereof. In case any Note is to be redeemed in part only, the
Redemption Notice 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 by the Company and authenticated by the Trustee (or an authenticating agent appointed by the Trustee). 
  
 (c) On or prior to the Redemption Date specified in the Redemption Notice 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(b)) an amount of money in immediately available funds sufficient to redeem on the
Redemption Date all the Notes (or portions thereof) so called for redemption (other than those theretofore surrendered for conversion into Common Stock) at the appropriate Redemption Price; 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(c) in excess of amounts required hereunder to pay the Redemption Price and accrued and unpaid Interest to, but excluding, the Redemption Date. If any Note called for redemption is converted pursuant hereto prior
to such Redemption Date, any money deposited with the Trustee or any Paying Agent or so segregated and held in trust for the redemption of such Note shall be paid to the Company upon its written request, or, if then held by the Company, shall be
discharged from such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written notice in the form of an Officers’ Certificate not fewer than 35 days (or such shorter period of 

  

 24 

 
time as may be acceptable to the Trustee) prior to the Redemption Date as to the aggregate principal amount of Notes to be redeemed. 
  
 (d) If less than all of the outstanding Notes are to be redeemed, the Trustee
shall select the Notes or portions thereof of the Global Note or the Notes in certificated form to be redeemed (in principal amounts of $1,000 or multiples thereof) by lot, on a pro rata basis or by another method the Trustee deems fair and
appropriate; provided that such method is not prohibited by any stock exchange or market on which the Notes are listed. 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 to be from the portion selected for redemption. The Notes (or portions thereof) so selected shall be deemed duly selected for redemption for all purposes hereof, notwithstanding that any such Note is
submitted for conversion in part before the mailing of the Redemption Notice. 
  
 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 15 days next preceding the mailing of a Redemption Notice and may (but need not) treat as outstanding any Note authenticated and
delivered during such period in exchange for the unconverted portion of any Note converted in part during such period. 
  
 Section 3.03. Payment of Notes Called for Redemption by the Company. If notice of redemption has been given as provided in Section 3.02, the Notes
or portion of Notes with respect to which such notice has been given shall, unless converted into Common Stock in accordance with the terms hereof, become due and payable on the Redemption Date and at the place or places stated in such notice at the
applicable Redemption Price. At 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) Interest on the Notes or portion of Notes so
called for redemption shall cease to accrue and, after the close of business on the second Business Day immediately preceding the Redemption Date (unless the Company shall default in the payment of such Notes at the Redemption Price) such Notes
shall cease to be convertible into Common Stock and, except as provided in Section 7.01(i), 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. 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; provided that if the applicable Redemption Date is an Interest Payment Date, the Interest payable on such Interest Payment Date 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. 
  

 25 

 Notwithstanding the foregoing, the Trustee shall not redeem any Notes or mail any Redemption Notice
during the continuance of a Default in payment of Interest on the Notes. If any Note called for redemption as a whole or in part shall not be so paid upon surrender thereof for redemption, the unredeemed principal thereof shall, until paid or duly
provided for, continue to bear interest at the rate borne by the Note, compounded semi-annually, and the unredeemed principal of such Note shall remain convertible into Common Stock until such unredeemed principal and Interest thereon 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 Redemption Date, an amount not less than the applicable Redemption Price 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 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 thereof will be filed with the Trustee prior to
the Redemption Date, any Notes not duly surrendered for conversion by the Noteholders thereof may, at the option of the Company, be deemed, to the fullest extent permitted by law, acquired by such purchasers from such Noteholders and
(notwithstanding anything to the contrary contained in Article 14) surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the Business Day prior to the Redemption Date or on the Redemption Date at the
option of the Company (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, obligations, liabilities or immunities of the Trustee as set forth in this Indenture. 
  
 Section 3.05. Repurchase of Notes by the Company at Option of Holders upon a Change of Control. 
  
 (a) If a Change of Control shall occur at any time prior to Stated Maturity,
each holder shall have the right, at such holder’s option, to require the Company to repurchase all of such holder’s Notes not previously called for redemption, or any portion thereof that is equal to or a multiple of $1,000 principal
amount, on the date specified in the Change of Control Offer, which date shall be no earlier than 30 days nor later than 60 days after the date of the Change of Control (subject to extension to comply with applicable law) (the “Change of
Control Repurchase Date”). The Company shall repurchase such Notes in cash at a price (the “Change of Control Repurchase Price”) equal to 100% of the principal amount thereof plus any accrued and unpaid Interest, to but
excluding the Change of Control Repurchase Date; provided that if such Change of Control Repurchase Date falls on an Interest Payment Date, then the Interest payable on such Interest Payment Date shall be paid 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. In the event that at the time of a Change of Control that requires the Company to repurchase the Notes, the terms of the Senior Indebtedness
restrict or prohibit the repurchase of Notes pursuant to this Section 3.05, then prior to the mailing of the notice to holders provided for in Section 3.05(b) 
  

 26 

 below but in any event within 45 days following such Change of Control, the Company shall (i) repay in full all Senior
Indebtedness or, if doing so will allow the repurchase of Notes, offer to repay in full all Senior Indebtedness and repay the Senior Indebtedness of each lender or holder, as applicable, who has accepted such offer or (ii) obtain the requisite
consent under the agreements governing the Senior Indebtedness to permit the repurchase of the Notes as provided for in this Section 3.05. 
  
 (b) Except as provided by Section 3.05(a), on or before the 15th day prior to the Change of Control Repurchase Date, but in no event later than the
45th day following a Change of Control, the Company, or at its written request the Trustee in the name of and at the
expense of the Company (which request must be received by the Trustee at least three Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree to a shorter period), shall mail or cause
to be mailed, by first class mail, to all holders of record on such date a notice (the “Change of Control Repurchase Offer”) of the occurrence of such Change of Control and of the repurchase right at the option of the holders
arising as a result thereof to each holder of Notes 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 Change of Control to the Trustee at such
time as it is mailed to Noteholders. Such notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. Each Change of Control Repurchase Offer shall state:

  
 (i) the Change of Control Repurchase Price,
excluding accrued and unpaid Interest, the applicable Conversion Rate at the time of such notice (and any applicable adjustments to the Conversion Rate) and, to the extent known at the time of such notice, the amount of Interest that will be payable
with respect to the Notes on the Change of Control Repurchase Date; 
  
 (ii) the events causing the Change of Control and the date of the Change of Control; 
  
 (iii) the Change of Control Repurchase Date; 
  
 (iv) the last date on which a holder may exercise the repurchase right; 
  
 (v) the name and address of the Paying Agent and the Conversion Agent; 
  
 (vi) that Notes as to which a Change of Control Repurchase
Election has been given by the holder may be converted only if the election has been withdrawn by the holder in accordance with the terms of this Indenture; provided that the Notes are otherwise convertible in accordance with Section 14.01;

  
 (vii) that the holder shall have the right to
withdraw any Notes surrendered prior to the close of business on the Business Day immediately preceding the Change of Control Repurchase Date (or any such later time as may be required by applicable law); 
  
 (viii) a description of the procedure which a Noteholder
must follow to exercise such repurchase right or to withdraw any surrendered Notes; 
  

 27 

 (ix) the CUSIP number or numbers of the Notes (subject to Section 2.09 and if then
generally in use); and 
  
 (x) briefly, the
conversion rights of the Notes and whether, at the time of such notice, the Notes are eligible for conversion. 
  
 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. Simultaneously with providing such notice, the Company will issue a press release containing this information. 
  
 (c) Notes shall be repurchased pursuant to this Section 3.05 at the option of
the holder upon: 
  
 (i) delivery to the Trustee
(or other Paying Agent appointed by the Company) by a holder of a duly completed notice (a “Change of Control Repurchase Election”) in the form set forth on the reverse of the Note at any time prior to the close of business on the
Business Day immediately preceding the Change of Control Repurchase Date stating: 
  
 (A) if certificated, the certificate numbers of the Notes which the holder shall deliver to be repurchased; 
  
 (B) the portion of the principal amount of the Notes that
the holder shall deliver to be repurchased, which portion must be $1,000 or an integral multiple thereof, and 
  
 (C) that such Notes shall be repurchased as of the Change of Control Repurchase Date pursuant to the terms and conditions specified in the
Notes and in the Indenture; and 
  
 (ii) physical
delivery or book-entry transfer of the Notes to the Trustee (or other Paying Agent appointed by the Company) simultaneously with or at any time after delivery of the Change of Control Repurchase Election (together with all necessary endorsements) at
the Corporate Trust Office of the Trustee or any other office or agency maintained by the Company pursuant to Section 4.02 (or other Paying Agent appointed by the Company), such delivery or transfer being a condition to receipt by the holder of the
Change of Control Repurchase Price therefor; provided that such Change of Control Repurchase Price shall be so paid pursuant to this Section 3.05 only if the Notes so delivered or transferred to the Trustee (or other Paying Agent appointed by the
Company) shall conform in all respects to the description thereof in the related Change of Control Repurchase Election. All questions as to the validity, eligibility (including time of receipt) and acceptance of any Note for repurchase shall be
determined by the Company, whose determination shall be final and binding absent manifest error. 
  
 (d) Notwithstanding the foregoing provisions of this Section, the Company shall not be required to make a Change of Control Repurchase Offer upon a Change
of Control if a third party makes the Change of Control Repurchase Offer in the manner, at the times and otherwise in compliance with the requirements set forth in Section 3.05(b) applicable to a Change of 

  

 28 

 
Control Repurchase Offer made by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Repurchase Offer.

  
 Section 3.06. Repurchase of Notes by the Company at Option
of Holders on Specified Dates. 
  
 (a) On November 1, 2011,
November 1, 2014 and November 1, 2019 (each, a “Company Repurchase Date”), each holder shall have the right, at such holder’s option, to require the Company to repurchase in cash all of such holder’s Notes, or any portion
thereof that is equal to or a multiple of $1,000 principal amount. The Company shall repurchase such Notes at a price (the “Company Repurchase Price”) equal to 100% of the principal amount thereof plus any accrued and unpaid
Interest, to but excluding the Company Repurchase Date; provided that if such Company Repurchase Date falls on an Interest Payment Date, then the Interest payable on such Interest Payment Date shall be paid 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. 
  
 (b) On or before the 20th Business Day prior to each Company Repurchase Date, the Company, or at its written request the Trustee in the name of and at the
expense of the Company (which request must be received by the Trustee at least three Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree to a shorter period), shall mail or cause
to be mailed, by first class mail, to all holders of record on such date a notice (the “Company Repurchase Notice”) to each holder of Notes 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 to the Trustee at such time as it is mailed to the Noteholders. Such notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not
the holder receives such notice. Each Company Repurchase Notice shall state: 
  
 (i) the Company Repurchase Price (excluding accrued and unpaid Interest), the applicable Conversion Rate at the time of such notice (and any applicable adjustments to the Conversion Rate) and, to the extent known at
the time of such notice, the amount of Interest that will be payable with respect to the Notes on the Company Repurchase Date; 
  
 (ii) the Company Repurchase Date; 
  
 (iii) the last date on which a holder may exercise the repurchase right; 
  
 (iv) the name and address of the Paying Agent and the Conversion Agent; 
  
 (v) that Notes as to which a Company Repurchase Election has
been given by the holder may be converted only if the election has been withdrawn by the holder in accordance with the terms of this Indenture; provided that the Notes are otherwise convertible in accordance with Section 14.01; 
  
 (vi) that the holder shall have the right to withdraw any
Notes surrendered prior to the close of business on the Business Day immediately preceding the Company Repurchase Date (or any such later time as may be required by applicable law); 
  

 29 

 (vii) a description of the procedure which a Noteholder must follow to exercise such
repurchase right or to withdraw any surrendered Notes; 
  
 (viii) the CUSIP number or numbers of the Notes (subject to Section 2.09 and if then generally in use); and 
  
 (ix) briefly, the conversion rights of the Notes and whether, at the time of such notice, the Notes are eligible for conversion.

  
 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 3.06. Simultaneously with providing such notice, the Company will issue a press
release containing this information. 
  
 (c) Notes shall be
repurchased pursuant to this Section 3.06 at the option of the holder upon: 
  
 (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a holder of a duly completed notice (a “Company Repurchase Election”) in the form set forth on the reverse of the Note
at any time from the opening of business on the 15th Business Day immediately preceding the Company Repurchase Date
until the close of business on the Business Day immediately preceding the Company Repurchase Date stating: 
  
 (A) if certificated, the certificate numbers of the Notes which the holder shall deliver to be repurchased; 
  
 (B) the portion of the principal amount of the Notes that
the holder shall deliver to be repurchased, which portion must be $1,000 or an integral multiple thereof; and 
  
 (C) that such Notes shall be repurchased as of the Company Repurchase Date pursuant to the terms and conditions specified in the Notes and
in the Indenture; and 
  
 (ii) physical delivery
or book-entry transfer of the Notes to the Trustee (or other Paying Agent appointed by the Company) simultaneously with or at any time after delivery of the Company Repurchase Election (together with all necessary endorsements) at the Corporate
Trust Office of the Trustee or any other office or agency maintained by the Company pursuant to Section 4.02 (or other Paying Agent appointed by the Company), such delivery or transfer being a condition to receipt by the holder of the Company
Repurchase Price therefor; provided that such Company Repurchase Price shall be so paid pursuant to this Section 3.06 only if the Notes so delivered or transferred to the Trustee (or other Paying Agent appointed by the Company) shall conform in all
respects to the description thereof in the related Company Repurchase Election. All questions as to the validity, eligibility (including time of receipt) and acceptance of any Note for repurchase shall be determined by the Company, whose
determination shall be final and binding absent manifest error. 
  

 30 

 Section 3.07. Company’s Notification to the Trustee . At least three Business Days before the
date of required delivery of any Repurchase Notice, the Company shall deliver an Officers’ Certificate to the Trustee specifying: 
  
 (i) the information required to be included in the Repurchase Notice; and 
  
 (ii) whether the Company desires the Trustee to give the Repurchase Notice required. 
  
 Section 3.08. Conditions and Procedures for Repurchase at Option of
Holders. 
  
 (a) The Company shall repurchase in cash from
the holder thereof, pursuant to Section 3.05 or Section 3.06, a portion of a Note, if the principal amount of such portion is $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to the repurchase of all of a Note also apply
to the repurchase of such portion of such Note. Upon presentation of any Note repurchased 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 any authorized denomination, in aggregate principal amount equal to the portion of the Notes presented not repurchased. 
  
 (b) On or prior to a Repurchase Date, 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 cash sufficient to repurchase on the Repurchase Date all the Notes or portions thereof to be repurchased on such date at the Repurchase Price; provided
that if such deposit is made on the 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. 
  
 If the Trustee or other Paying Agent appointed by the Company, or the Company or an Affiliate of the Company, if it or such
Affiliate 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, at the close of business on the Business Day immediately
preceding the Repurchase Date (i) such Notes will cease to be outstanding, (ii) Interest on such 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 and the right to receive a new Note or Notes, of any authorized denomination, in aggregate
principal amount equal to the portion of the Note or Notes presented and not repurchased. 
  
 (c) Upon receipt by the Trustee (or other Paying Agent appointed by the Company) of a Repurchase Election, the holder of the Note in respect of which such Repurchase Election was given shall (unless such 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 (but in no event more than five Business Days) following the later of (x) the Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in Section 3.05(c) or Section 3.06(c), as applicable)
and (y) the time of delivery of such Note to 
  

 31 

 the Trustee (or other Paying Agent appointed by the Company) by the holder thereof in the manner required by Section
3.05(c) or Section 3.06(c), as applicable. Notes in respect of which a Repurchase Election 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 Election
unless such notice has first been validly withdrawn. 
  
 (d)
Notwithstanding anything herein to the contrary, any holder delivering to the office of the Trustee (or other Paying Agent appointed by the Company) a Repurchase Election shall have the right to withdraw such election at any time prior to the close
of business on the Business Day immediately preceding the Repurchase Date (or any such later time as may be required by applicable law) by delivery of a written notice of withdrawal to the Trustee (or other Paying Agent appointed by the Company)
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 Repurchase Election and which has been or will be delivered for repurchase by the Company. 
  
 The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company of the receipt by it of any
Repurchase Election or written notice of withdrawal thereof. 
  
 (e) The Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act to the extent then applicable in connection with the repurchase rights of the holders of Notes in the event of a Change of
Control or on any Company Repurchase Date. If then required by applicable law, the Company will file a Schedule TO or any other schedule required in connection with such repurchase. 
  
 (f) There shall be no repurchase of any Notes pursuant to Section 3.05 or Section 3.06 if there has occurred at any time
prior to, and is continuing on, the Repurchase Date an Event of Default (other than an Event of Default that is cured by the payment of the Repurchase Price with respect to such Notes) which has resulted in the aggregate outstanding principal amount
of the Notes to be accelerated and such acceleration has not been rescinded on or prior to such Repurchase Date. The Paying Agent will promptly return to the respective holders thereof any Notes (x) with respect to which a Repurchase Election has
been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an Event of Default (other than a default in the payment of the Repurchase Price with respect to such Notes) in which case, upon such return, the
Repurchase Election with respect thereto shall be deemed to have been withdrawn. 
  
 (g) The Trustee (or other Paying Agent appointed by the Company) shall return to the Company any cash that remains unclaimed as provided in Section 12.03, together with interest, if any, thereon, held by it for the
payment of the Repurchase Price; provided that to the extent that 
  

 32 

 the aggregate amount of cash deposited by the Company pursuant to Section 3.08(b) exceeds the aggregate Repurchase Price
of the Notes or portions thereof which the Company is obligated to purchase as of the Repurchase Date then, unless otherwise agreed in writing with the Company, promptly after the Business Day next following the Repurchase Date, the Trustee shall
return any such excess to the Company together with interest, if any, thereon. 
  
 (h) In the case of a reclassification, change, consolidation, merger, binding share exchange, conveyance, transfer, sale, lease or other disposition to which Section 14.06 applies, pursuant to which either all or
substantially all of the Company’s Common Stock or assets are exchanged for, converted into, acquired for or constitute solely the right to receive cash, securities or other property, then the Successor Company (if not the Company) shall
execute and deliver to the Trustee a supplemental indenture (accompanied by an Opinion of Counsel that such supplemental indenture complies with the applicable provisions of 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 Change of Control, including without limitation the applicable provisions of
this Article 3 and the definitions of Common Stock and Change of Control, as appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply to the Successor Company if
different from the Company and the common stock issued by the Successor Company (in lieu of the Company and the Common Stock of the Company). 
  
 Section 3.09. Final Maturity Notice. On the Final Notice Date, the Company, or at its written request the Trustee in the name of and at the expense
of the Company (which request must be received at least five Business Days prior to the Final Notice Date, unless the Trustee shall agree to a shorter notice period) shall mail or cause to be mailed, by first class mail, to all holders of record on
such Final Notice Date a notice (the “Final Maturity Notice”) of the final maturity of the Notes to each holder of the Notes 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 final maturity of the Notes to the Trustee at the same time it is mailed to Noteholders. Such notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given,
whether or not the holder receives such notice. Such notice shall state: 
  
 (i) the final maturity date of the Notes; 
  
 (ii) the CUSIP number or numbers of the Notes (subject to Section 2.09 and if then generally in use); 
  
 (iii) briefly, the conversion rights of the Notes and whether, at the time of such notice, the Notes are eligible for conversion; and

  
 (iv) if the Notes are eligible for conversion
and the Company determines to satisfy all or a portion of the Conversion Obligation with respect to conversions after the Final Notice Date in cash, the dollar amount or percentage of the conversion to be satisfied in cash (which must be expressed
either as a fixed dollar amount or fixed percentage of the Conversion Obligation). 
  

 33 

 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 any Redemption Price or Repurchase Price 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 in The City of New York where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or repurchase. The office of the Trustee, located at 4 New
York Plaza, New York, New York 10004 (Attention: Corporate Trust Department), shall initially be such office or agency for all of the aforesaid purposes. 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. All notices and demands to the Trustee in respect of the Notes and this Indenture must be served in accordance with Section 17.03. 
  
 The Company may also from time to time designate co-registrars and one or
more offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. The Company will give prompt written notice of any such designation or rescission and of any
change in the location of any such other office or agency. 
  
 The
Company hereby initially designates the Trustee as Paying Agent, Note Registrar, Custodian and Conversion Agent, and each of the Corporate Trust Office and the office or agency of the Company in The City of New York shall be considered as one such
office or agency of the Company for each of the aforesaid purposes (other than notices and demands which must be served in accordance with Section 17.03). 
  
 So long as the Trustee is the Note Registrar, the Trustee agrees to mail, or cause to be mailed, the notices set forth in Article 7. If co-registrars have
been appointed in accordance with this Section, the Trustee shall mail such notices only to the Company and the holders of Notes it can identify from its records. 
  
 Section 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 7.08, 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 or the Trustee, as applicable, will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section 4.04: 
  
 (1) that
such Paying Agent 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) in trust for the benefit of the holders of the Notes; 
  

 34 

 (2) that such Paying Agent will give the Trustee notice of any failure by the Company to
make any payment of the principal of or Interest on the Notes when the same shall be due and payable; and 
  
 (3) that at any time during the continuance of an Event of Default, upon request of the Trustee, such Paying Agent will forthwith pay to
the Trustee all sums so held in trust. 
  
 The Company shall, on
or before each due date of the principal of 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 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 12.02 and 12.03. 
  
 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 conduct of the business of the Company and that the loss thereof will not materially adversely affect the
interests of the holders of the Notes. 
  
 Section 4.06. Rule
144A Information Requirement. Within the period prior to the second anniversary of the last issuance of the Notes pursuant to the Purchase Agreement, 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 
  

 35 

 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 upon the request of any such holder or beneficial holder of the Notes or such Common Stock and it will take such further action as any such 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 such 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 4.07. Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or 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 4.08. Compliance Certificate. The Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, an Officers’ Certificate, 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, promptly upon
becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this Indenture, or (ii) any Event of Default, an Officers’ Certificate specifying with particularity such Default or Event
of Default and further stating what action the Company has taken, is taking or proposes to take with respect thereto. 
  
 Any notice required to be given under this Section 4.08 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office.

  
 Section 4.09. Liquidated Damages Notice. In the event
that the Company is required to pay Liquidated Damages to holders of Notes pursuant to the Registration Rights Agreement, the Company will provide written notice (“Liquidated Damages Notice”) to the Trustee of its obligation to pay
Liquidated Damages no later than the later of (a) the date on which the Company becomes obligated to pay Liquidated Damages and (b) 15 days prior to the Liquidated Damages Payment Date (as defined in the Registration Rights Agreement), and the
Liquidated Damages Notice shall set forth the amount of Liquidated Damages 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 Liquidated
Damages, or with respect to the nature, extent or 

  

 36 

 
calculation of the amount of Liquidated Damages when made, or with respect to the method employed in such calculation of the Liquidated Damages. 

 
 Section 4.10. Contingent Debt Tax Treatment and Withholding Taxes.
(a) The Company agrees and, by acceptance of a Note, each beneficial holder of a Note will be deemed to have agreed to treat the Notes as indebtedness of the Company for U.S. federal income tax purposes that are subject to the regulations governing
contingent payment debt instruments and to be bound (in the absence of an administrative determination or judicial ruling to the contrary) by the Company’s determination of the comparable yield and projected payment schedule within the meaning
of the regulations governing contingent payment debt instruments. A holder of Notes may obtain the amount of original issue discount, issue date, yield to maturity, comparable yield and projected payment schedule for the Notes, determined by the
Company pursuant to Treas. Reg. Sec. 1.1275-4, by submitting a written request for it to the Company at the following address: Quicksilver Resources Inc., 777 West Rosedale Street, Suite 300, Fort Worth, Texas 76104, Attention: Treasurer.

  
 (b) The Company, or the Trustee or other Paying Agent on
behalf of the Company, shall withhold or deduct from any payment to a holder of a Note as provided for under the Code, Treasury Regulations issued thereunder or other applicable law or regulation. Any such amounts properly withheld or deducted by
the Company, or the Trustee or other Paying Agent on behalf of the Company, shall be considered as having been paid by the Company to such holder for all purposes of this Indenture and the related transaction documents. Neither the Company nor the
Trustee or other Paying Agent will be obligated to indemnify, or pay any additional amount to, such holder or any beneficial holder in respect of any such amounts properly withheld or deducted. Holders or beneficial holders of the Notes may provide
any appropriate withholding tax forms or other tax certifications that reduce, or exempt payments from, any such withholding taxes. 
  
 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 15 days after each May 1 and November 1 in each year beginning with May 1, 2005, and at such other times as the Trustee may request in writing, within 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 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. 
  

 37 

 (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 a Note, 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 60 days after May 15 of each year commencing with the year 2005, the
Trustee shall transmit to holders of Notes such reports dated as of May 15 of the year in which such reports are made concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act (including,
without limitation, Sections 313(a) and 313(b) of 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. 
  
 (c) A copy of such report shall, at the time of such transmission to holders of Notes, be filed by the Trustee (i) with each stock exchange and automated quotation system upon which the Notes are listed, (ii) with the Commission and (iii)
with the Company. The Company will promptly notify the Trustee in writing when the Notes are listed on any stock exchange or automated quotation system or delisted therefrom. 
  
 Section 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 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 Officers’ Certificate). 
  
 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 (each, an “Event 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: 
  

 38 

 (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 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 or repurchase, 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 convert the Notes into Common Stock (or to settle such conversion in cash or
a combination of cash and Common Stock as provided for in this Indenture) upon the exercise of a holder’s rights pursuant to Article 14; or 
  
 (d) default in the Company’s obligation to repurchase the Notes at the option of a holder upon a Change of Control pursuant to Section 3.05 or on
specified dates pursuant to Section 3.06; or 
  
 (e) failure to
provide notice of the occurrence of a Change of Control as required by Section 3.05 and continuance of such failure for a period of 30 days; or 
  
 (f) default in the Company’s obligation to redeem the Notes after it has exercised its option to redeem; or 
  
 (g) 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 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 to the Company and a Responsible Officer of the Trustee by the holders of at
least 25% in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04; or 
  
 (h) default by the Company or any of its Designated Subsidiaries in the payment of the principal or interest on any mortgage, agreement or other
instrument under which there may be outstanding, or by which there may be secured or evidenced, any of the Indebtedness of the Company or any of its Designated Subsidiaries for money borrowed in excess of $10,000,000 or its foreign currency
equivalent in the aggregate, whether such Indebtedness now exists or shall hereafter be created, resulting in such Indebtedness becoming or being declared immediately due and payable, and such acceleration shall not have been rescinded or annulled
within 30 days after the date on which written notice of such failure has been received by the Company or such Designated Subsidiary, as applicable, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or to
the Company and a Responsible Officer of the Trustee by the holders of at least 25% in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04; or 
  
 (i) the Company or any Designated Subsidiary pursuant to or within the
meaning of any Bankruptcy Law: 
  

	 	(i)	commences a voluntary case; 

  

 39 

	 	(ii)	consents to the entry of an order for relief against it in an involuntary case; 

  

	 	(iii)	consents to the appointment of a Bankruptcy Custodian of it or for any substantial part of its property; 

  

	 	(iv)	makes a general assignment for the benefit of its creditors; or 

  

	 	(v)	or takes any comparable action under any foreign laws relating to insolvency; or 

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

	 	(i)	is for relief against the Company or any Designated Subsidiary in an involuntary case; 

  

	 	(ii)	appoints a Bankruptcy Custodian of the Company or any Designated Subsidiary or for any substantial part of its property; or 

  

	 	(iii)	orders the winding up or liquidation of the Company or any Designated Subsidiary; or 

  
 any similar relief is granted by a court of competent jurisdiction under any foreign laws and, in each case, the order, decree or similar
relief remains unstayed and in effect for 60 days; 
  
 the Company shall deliver
to the Trustee, within 30 days after the occurrence thereof, written notice in the form of an Officers’ Certificate of any event which is, or with the giving of notice or the lapse of time or both would become, an Event of Default, its status
and what action the Company is taking or proposes to take with respect thereto. 
  
 Section 6.02. Acceleration. If an Event of Default specified in Section 6.01(i) or (j) occurs and is continuing, the principal of and accrued and unpaid Interest on all the Notes, shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any holders. If any other Event of Default specified in Section 6.01, other than in Section 6.01(i) or (j), occurs and is continuing, the Trustee by
notice to the Company, or the holders of at least 25% in principal amount of the outstanding Notes then outstanding hereunder determined in accordance with Section 8.04 by notice to the Company and to the Trustee, may declare the principal of and
accrued and unpaid Interest on all the Notes, to be due and payable. Upon such a declaration, such principal and Interest shall be due and payable immediately. 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 7.07, and if any and all defaults
under this Indenture, other than the nonpayment of principal of and accrued and unpaid Interest 
  

 40 

 on Notes which shall have become due by acceleration, shall have been cured or waived pursuant to Section 6.05, 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. 
  
 In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been
discontinued or abandoned because of such waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the holders of Notes, and the Trustee shall be
restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the holders of Notes, and the Trustee shall continue as though no such proceeding had been taken. 
  
 Section 6.03. 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 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, repurchase, acceleration, 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, 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 7.07. 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, at its discretion, prosecute any such action or proceeding to judgment or final decree, and may, at its
discretion, enforce any such judgment or final decree against the Company and collect in the manner provided by law out of the property of the Company 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 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, the property of the Company, or in the case of any other judicial proceedings relative to the Company, or to the creditors or property of the Company, 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 
  

 41 

 this Section 6.03, 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, its creditors, or its 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 7.07, and to take any other action with respect to such 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, 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 6.04. Other Remedies. If an Event
of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of or Interest on the Notes, or to enforce the performance of any provision of the Notes or this Indenture. The Trustee may maintain
a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or any holder in exercising any right or remedy accruing upon an Event of Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. 
  
 Section 6.05. Waiver of Past Defaults. The holders of a majority in aggregate principal amount of the Notes then
outstanding determined in accordance with Section 8.04 by notice to the Trustee may waive an existing Default 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 
  

 42 

 any Notes into Common Stock or settle such conversion in cash or a combination of cash and Common Stock, (iii) a default
in the payment of the Redemption Price pursuant to Section 3.03, (iv) a default in the payment of the Change of Control Repurchase Price pursuant to Section 3.05 or Company Repurchase Price pursuant to Section 3.06 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 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 6.05, 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. 
  
 Section 6.06. Control by Majority. The holders of a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04 may direct, through their written
consent, the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or
this Indenture or, subject to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other holders or would involve the Trustee in personal liability; provided, however, that the Trustee may take any other
action deemed proper by the Trustee that is not inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses caused
by taking or not taking such action. 
  
 Section 6.07.
Limitation on Suits. (a) Except to enforce the right to receive payment of principal, premium (if any) or Interest when due, no holder may pursue any remedy with respect to this Indenture or the Notes unless: 
  
 (i) the holder gives to the Trustee written notice stating
that an Event of Default is continuing; 
  
 (ii)
the holders of at least 25% in aggregate principal amount of the Notes then outstanding make a written request to the Trustee to pursue the remedy; 
  
 (iii) such holder or holders furnish to the Trustee security or indemnity reasonably satisfactory to it against any loss, liability or
expense; 
  
 (iv) the Trustee does not comply
with the request within 60 days after receipt of the request and the furnishing of security or indemnity; and 
  
 (v) the holders of a majority in principal amount of the Notes then outstanding do not give the Trustee a direction inconsistent with the
request during such 60-day period. 
  
 (b) A holder may not use
this Indenture to prejudice the rights of another holder or to obtain a preference or priority over another holder. 
  

 43 

 Section 6.08. Rights of Holders to Receive Payment. 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 any Redemption Price or Repurchase Price pursuant to Article 3) and accrued and unpaid Interest on such Note on or after
the respective due dates expressed in such Note, 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. 
  
 Section 6.09. Collection Suit by
Trustee. If an Event of Default specified in Section 6.01(a) or (b) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount then due and owing
(together with interest on overdue principal and (to the extent lawful) on any unpaid Interest at the rate provided for in the Notes) and the amounts provided for in Section 7.07. 
  
 Section 6.10. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the Trustee and the holders allowed in any judicial proceedings relative to the Company, any Subsidiary, their creditors or their property and, unless prohibited by law or
applicable regulations, may vote on behalf of the holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Bankruptcy Custodian in any such judicial proceeding is hereby authorized by each holder to
make payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and its counsel, and any other amounts due the Trustee under Section 7.07. 
  
 Section 6.11. Priorities. Any monies collected by the Trustee pursuant to this Article 6 shall be applied in the order following, for the
distribution of such monies, upon presentation of the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender thereof, if fully paid: 
  
 FIRST: To the payment of all amounts due the Trustee under Section 7.07; 
  
 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 
  

 44 

 unpaid upon the Notes for principal and Interest, with interest on the overdue principal and (to the extent that such
interest has been collected by the Trustee) upon overdue installments of Interest at the rate borne by the Notes, and in case such monies 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. 
  
 The Trustee may fix a record date and payment date for any payment to holders pursuant to this Section. At least 15 days before such record date, the Trustee shall mail to each holder and the Company a notice that
states the record date, the payment date and amount to be paid. 
  
 Section 6.12. Undertaking for Costs. All parties to this Indenture agree, and each holder of any Note by its acceptance thereof shall be deemed to have agreed, that any court may, in its discretion, require, in any suit for the
enforcement of any right or remedy under 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 6.12 (to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by any Noteholder pursuant to Section 6.08, or by a group of Noteholders
holding in the aggregate more than 25% 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. 
  
 Section 6.13. 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 Sections 6.06 and
6.07, 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. 
  
 ARTICLE 7 
 THE TRUSTEE 
  
 Section 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use 

  

 45 

 
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. 
  
 (b) Except during the continuance of an Event of
Default: 
  
 (i) the Trustee undertakes to
perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (ii) in the absence of bad faith on its part, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any
such certificates or opinions which by any provision of this Indenture are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of
this Indenture. 
  
 (c) The Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its own wilful misconduct, except that: 
  
 (i) this paragraph does not limit the effect of paragraph (b) of this Section; 
  
 (ii) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; 
  
 (iii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.06; and 
  
 (iv) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it
shall have reasonable grounds to believe that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  
 (d) 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. 
  
 (e) 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. 
  
 (f) The Trustee shall not be deemed to have knowledge or notice of any Default or Event of Default hereunder unless a Responsible Officer of the Trustee
shall have received at the Corporate Trust Office written notice of such Default or Event of Default from the Company or the holders of at least 10% in aggregate principal amount of the Notes then outstanding 

  

 46 

 
determined as provided in Section 8.04 and such notice refers to such Default or Event of Default, the Notes and the Indenture. 
  
 (g) Every provision of this Indenture that in any way relates to the Trustee
is subject to paragraphs (a), (b), (c), (d), (e) and (f) of this Section. 
  
 (h) The Trustee shall not be liable for interest on any money received by it except as provided in this Indenture or as the Trustee may agree in writing with the Company. 
  
 (i) Subject to the provisions of Section 12.03, 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 provided in this Indenture or as may be agreed in writing from time to time by the Company and the Trustee. 
  
 (j) 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 and to the provisions of the Trust Indenture Act. 
  
 Except as otherwise provided in this 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 Officers’ Certificate delivered to the Trustee. 
  
 Section 7.02. Rights of Trustee. (a) The Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or
presented by the proper person. The Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the Officers’ Certificate or Opinion of Counsel. 
  
 (c) The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 
  
 (d) The Trustee shall not be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within its rights or powers; provided, however, that the Trustee’s conduct does not constitute wilful misconduct or gross negligence. 
  
 (e) The Trustee may consult with counsel of its selection, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and the Notes shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel. 
  

 47 

 (f) 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 furnished to the Trustee reasonable security or indemnity satisfactory to it against the costs,
expenses and liabilities which may be incurred therein or thereby. 
  
 (g) 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, consent, order, approval, bond, debenture, note or other
paper or document unless requested in writing to do so by 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, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, to the
extent necessary to determine the relevant facts, personally or by agent or attorney; provided that, except to carry out its obligations under this Indenture, the Trustee shall not disclose any information obtained as a result of such
examination without the written consent of the Company. 
  
 (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
duly authorized agent, custodian and other Person employed by the Trustee to act hereunder and acting within the limits of such Person’s actual authority. 
  

(i) The Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded. 
  
 (j) In no
event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of
such loss or damage and regardless of the form of action. 
  
 Section 7.03. Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or its Affiliates with the same rights it would have if
it were not Trustee. Any Paying Agent, Conversion Agent or Note Registrar may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
  
 Section 7.04. Trustee’s Disclaimer. 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 shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes 
  

 48 

 other than the Trustee’s certificate of authentication. The Trustee shall not be charged with knowledge of any
Default or Event of Default under Section 6.01(c), (d), (e), (f), (g), (h), (i) or (j) or of the identity of any Designated Subsidiary unless either (a) a Responsible Officer of the Trustee shall have actual knowledge thereof or (b) the Trustee
shall have received notice thereof in accordance with Section 17.03 hereof from the Company or any holder. 
  
 Section 7.05. Notice of Default. If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to each
Noteholder, as the names and addresses of such holders appear upon the Note Register, notice of the Default within the earlier of 90 days after it occurs or 30 days after it is actually known to a Responsible Officer or written notice of it is
received by the Trustee, unless such Defaults shall have been cured or waived before the giving of such notice; provided that except in the case of Default specified in Sections 6.01(a), (b), (c), (d), (e) and (f), the Trustee shall be protected in
withholding such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Noteholders. 
  
 Section 7.06. [RESERVED] 
  
 Section 7.07. Compensation and Indemnity. The Company covenants and
agrees to pay to the Trustee from time to time such compensation as shall be agreed in writing between the Company and the Trustee for its services. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Company shall promptly reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services in accordance with the
terms agreed by the Company and the Trustee. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s agents, counsel, accountants and experts. The Company covenants to indemnify the
Trustee against any and all loss, liability, damage, claim or expense (including reasonable attorneys’ fees and expenses) incurred by or in connection with the acceptance or administration of this trust and the performance of its duties
hereunder. The Trustee shall notify the Company of any claim for which it may seek indemnity promptly upon the Trustee actually receiving written notice thereof; provided, however, that any failure so to notify the Company shall not
relieve the Company of its indemnity obligations hereunder if not materially prejudicial to the Company. The Company shall defend the claim and the indemnified party shall provide reasonable cooperation at the Company’s expense in the defense.
Such indemnified parties may have one separate counsel and the Company shall pay the fees and expenses of such counsel; provided, however, that the Company shall not be required to pay such fees and expenses if it assumes such
indemnified parties’ defense and, in such indemnified parties’ reasonable judgment, there is no conflict of interest between the Company and such parties in connection with such defense. The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by an indemnified party through such party’s own wilful misconduct, gross negligence or bad faith. 
  
 To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Notes on all
money or property held or collected by the Trustee other than money or property held in trust to pay principal of and Interest on particular Notes. 
  
 The Company’s payment and indemnity obligations pursuant to this Section shall survive the satisfaction or discharge of this Indenture, any rejection
or termination of this Indenture 
  

 49 

 under any bankruptcy law or the resignation or removal of the Trustee. Without prejudice to any other rights available to
the Trustee under applicable law, when the Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(i) or (j) with respect to the Company, the expenses are intended to constitute expenses of administration under the
Bankruptcy Law. 
  
 Section 7.08. Replacement of Trustee.
(a) The Trustee may resign at any time by so notifying the Company. The holders of a majority in principal amount of the Notes at the time outstanding may remove the Trustee by so notifying the Trustee and may appoint a successor Trustee. The
Company shall remove the Trustee if: 
  
 (i) the
Trustee fails to comply with Section 7.10; 
  
 (ii) the Trustee is adjudged bankrupt or insolvent; 
  
 (iii) a receiver or other public officer takes charge of the Trustee or its property; or 
  
 (iv) the Trustee otherwise becomes incapable of acting. 
  
 If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall
either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. 
  
 (b) If the Trustee resigns, is removed by the Company or by the holders of a majority in principal amount of the Notes at
the time outstanding and such holders do not reasonably promptly appoint a successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee in such event being referred to herein as the retiring Trustee), the Company
shall promptly appoint a successor Trustee. 
  
 (c) A successor
Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the
lien provided for in Section 7.07. 
  
 (d) If a successor Trustee
does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee or the holders of 25% in principal amount of the Notes at the time outstanding may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee. 
  
 (e) If the Trustee fails to comply with Section 7.10, unless the Trustee’s duty to resign is stayed as provided in Section 310(b) of the Trust Indenture Act, any holder who has been a bona fide holder of a Note for at least six months
may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 (f) Notwithstanding the replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 7.07 shall continue for the
benefit of the retiring Trustee. 
  

 50 

 Section 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges or converts
into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee. 

 
 In case at the time such successor or successors by merger, conversion or
consolidation 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, 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 may authenticate such Notes either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate of the Trustee shall have. 
  
 Section 7.10. Eligibility; Disqualification. The Trustee shall at all
times satisfy the requirements of Section 310(a) of the Trust Indenture Act. The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply
with Section 310(b) of the Trust Indenture Act, subject to its right to apply for a stay of its duty to resign under the penultimate paragraph of Section 310(b) of the Trust Indenture Act; provided, however, that there shall be
excluded from the operation of Section 310(b)(1) of the Trust Indenture Act any indenture or indentures under which other securities or certificates of interest or participation in other securities of the Company are outstanding if the requirements
for such exclusion set forth in Section 310(b)(1) of the Trust Indenture Act are met. 
  
 Section 7.11. Preferential Collection of Claims Against Company. The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section 311(b) of the
Trust Indenture Act. A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent indicated. 
  
 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 9, or
(c) by a combination of such instrument or instruments and any such record of such a meeting of Noteholders. Whenever the Company or the Trustee solicits the taking of any action by the holders of the Notes, the Company or the Trustee may fix in
advance of such solicitation, a date as the record date for determining holders entitled to take such action. The record date shall be not more than 15 days prior to the date of commencement of the solicitation of such action. 
  

 51 

 Section 8.02. Proof of Execution by Noteholders. Subject to the provisions of Section 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 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 his order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note. 
  
 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 Affiliate of the Company 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 or any Affiliate of the Company. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by or for the account of any
of the above described Persons, and, subject to Section 7.01, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein set forth and of the fact that all Notes 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

  

 52 

 holder and upon all future holders and owners of such Note and of any Notes issued in exchange or substitution therefor,
irrespective of whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor. 
  
 ARTICLE 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: 
  
 (1) to give any notice to the Company or to the Trustee or to give any directions to the Trustee permitted
under this Indenture, or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Noteholders pursuant to any of the provisions of Article 6; 
  
 (2) to remove the Trustee and nominate a successor Trustee
pursuant to the provisions of Article 7; 
  
 (3)
to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 10.02; or 
  
 (4) to take any other action authorized to be taken by or on behalf of the holders of any specified aggregate principal amount of the
Notes under any other provision of this Indenture or under applicable law. 
  
 Section 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 the place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to Section 8.01, shall
be mailed to holders of Notes at their addresses as they shall appear on the Note Register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than 20 nor more than 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 10% in aggregate principal amount of the Notes then
outstanding, shall have requested the Trustee to call a meeting of Noteholders, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting
within 20 days after receipt of such request, then the Company or such Noteholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in Section 9.01, by mailing notice thereof as provided
in Section 9.02. 
  

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 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 outstanding 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 9.02 or 9.03 may be adjourned from time to time by the holders of a majority of the aggregate principal amount of Notes represented at
the meeting, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice. 
  
 Section 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 of the notice of the meeting and showing that said notice was mailed 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 

  

 54 

 
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) to make provision with respect to the conversion rights of the holders of Notes pursuant to the requirements of Section 14.01(e) or Section 14.06 or the repurchase obligations of the Company pursuant to the
requirements of Section 3.08(h); 
  
 (b) to increase the
Conversion Rate; provided that the increase will not have a material adverse effect on the Noteholders; 
  
 (c) to convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes, any property or assets or to add Guarantees with respect to
the Notes; 
  
 (d) to surrender any of the Company’s rights
or powers under the Indenture; 
  
 (e) to evidence the succession
of another Person to the Company, or successive successions, and the assumption by the Successor Company of the covenants, agreements and obligations of the Company pursuant to Article 11; 
  
 (f) to provide for uncertificated Notes in addition to or in place of
certificated Notes; provided, however, that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of the Code or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of
the Code; 
  
 (g) to make any change in Article 15 that would
limit or terminate the benefits available to any holder of Senior Indebtedness of the Company (or Representatives thereof) under Article 15; 
  
 (h) to add to the covenants of the Company such further covenants, restrictions or conditions 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 
  

 55 

 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; 
  
 (i) to provide for the issuance under this Indenture of Notes in coupon form (including Notes registrable as to principal only) and to provide for exchangeability of such Notes with the Notes issued hereunder in fully registered form and to
make all appropriate changes for such purpose; 
  
 (j) 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 provisions contained herein or in any supplemental indenture, or to make such other provision
in regard to matters or questions arising under this Indenture that shall not materially adversely affect the interests of the holders of the Notes; 
  
 (k) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes; 
  
 (l) to modify, eliminate or add to the provisions of this Indenture to such
extent as shall be necessary to effect the qualification of this Indenture under the Trust Indenture Act, or under any similar federal statute hereafter enacted; 
  
 (m) make any changes or modifications in connection with the registration of the Notes under the Securities Act as
contemplated by the Registration Rights Agreement; provided that such change or modification will not have a material adverse effect on the Noteholders; or 
  
 (n) make other changes to the Indenture or forms or terms of the Notes, provided no such change individually or in the aggregate with all other such
changes has or will have a material adverse effect on the interests of the Noteholders. 
  
 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 shall 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 Liquidated Damages thereunder may be amended, modified or waived in accordance with the provisions of the Registration Rights Agreement. 
  

 56 

 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 determined as provided in Section 8.04, the Company, when authorized by the resolutions of the Board of Directors, and
the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or any
supplemental indenture or of modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall (i) reduce the principal amount of or change the Stated Maturity of any Note, (ii) reduce the rate or
extend the time of payment of Interest on any Note, (iii) reduce any amount payable on redemption or repurchase of any Note (including upon the occurrence of a Change of Control) or change the time at which or the circumstances under which the Notes
may or shall be redeemed or repurchased (subject to the immediately succeeding sentence), (iv) impair the right of any Noteholder to institute suit for the payment on any Note, (v) make the principal or Interest of any Note payable in any coin or
currency other than that provided in the Notes, (vi) impair the right to convert the Notes into Common Stock or cash or a combination thereof subject to the terms set forth herein, (vii) reduce the number of shares of Common Stock or other property
receivable upon conversion, (viii) modify any of the provisions of this Section 10.02 or Section 6.05, 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, (ix) 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, (x) reduce the quorum or voting requirements set forth in Article
9, (xi) make any change in Article 15 that adversely affects the rights of any Noteholder under Article 15 or (xii) 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 determined as provided in Section 8.04. Notwithstanding the immediately preceding sentence, 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 determined as provided in Section 8.04, may waive or modify Section 3.05 of this Indenture relative to the Company’s obligation to make an offer to repurchase the Notes as a result of a
Change of Control (other than reducing the Change of Control Repurchase Price which can only be modified with 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 
  

 57 

 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 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 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 17.12) 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 Officers’ 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, CONVEYANCE AND LEASE 
  
 Section 11.01. When May Company Merge or Transfer Assets. (a) Except as provided in Section 11.01(b), the Company
shall not consolidate with or merge with or into, or convey, transfer, sell, lease or otherwise dispose all or substantially all its properties or assets to, any Person, unless: 
  
 (A) the resulting, surviving or transferee Person (the “Successor Company”) shall be a
corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia and the Successor Company (if not the Company) shall expressly assume, by a supplemental indenture hereto, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, all the obligations of the Company under the Notes and this Indenture; 
  
 (B) immediately after giving effect to such transaction (and treating any Indebtedness which becomes an obligation of the Successor
Company as a result 

  

 58 

 
of such transaction as having been Incurred by the Successor Company at the time of such transaction), no Default shall have occurred and be continuing; and

  
 (C) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indenture (if any) comply with this Indenture. 
  
 (b) Notwithstanding the foregoing, the Company may merge with an Affiliate
incorporated solely for the purpose of reincorporating the Company in another jurisdiction to realize tax or other benefits without complying with the provisions of Section 11.01(a). 
  
 Section 11.02. Successor to Be Substituted. In case of any such consolidation, merger, conveyance, transfer, sale,
lease or other disposition and upon the assumption by the Successor Company, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of and 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 Company shall succeed to and be substituted for, and may exercise every right and power
of, the Company, with the same effect as if it had been named herein as the party of this first part. Such Successor Company thereupon may cause to be signed, and may issue either in its own name or in the name of Quicksilver Resources Inc. any or
all of the Notes, issuable hereunder that theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such Successor Company 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 Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same legal rank and benefit under 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, conveyance, transfer, sale,
lease or other disposition, 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 shall be released from its
liabilities as obligor and maker of the Notes and from its obligations under this Indenture and may be dissolved, wound up and liquidated at any time thereafter; provided that the predecessor Company in the case of a conveyance, transfer, sale,
lease or other disposition of all or substantially all its properties or assets shall not be released from the obligation to pay the principal of and Interest on the Notes until such time as such obligation is assumed by such Successor Company.

  
 In case of any such consolidation, merger, conveyance,
transfer, sale, lease or other disposition, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate. 
  

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 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 and the Company shall deposit with the Trustee, in trust, cash or, if expressly permitted by the terms of the Notes or the Indenture, Common Stock, in each case sufficient
to pay all amounts due and owing on 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, accompanied by a verification report, as to the sufficiency of the deposited amount, from an independent certified accountant or other financial professional satisfactory to the Trustee, and if in either
case 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 Officers’ Certificate and an Opinion of Counsel as required by Section
17.05 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.
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 12.03. 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 of or Interest on Notes, and not applied but remaining unclaimed by the holders of Notes for two years after the date upon which the principal of or Interest on such Notes, as the case may be, shall have become due and
payable, shall be repaid to the Company by the Trustee on demand and all liability of the Trustee shall thereupon cease with respect to such monies; and the holder of any of the Notes shall thereafter look only to the Company for any payment that
such holder may be entitled to collect unless an applicable abandoned property law designates another Person. 
  

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 ARTICLE 13 
 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, 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, stockholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the
Company or of any Successor Company, either directly or through the Company or any Successor Company, 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 the Stated Maturity, the holder of any Note shall have the right, at
such holder’s option, to convert the principal amount of the Note, or any portion of such principal amount which is a multiple of $1,000, into fully paid and non-assessable shares of Common Stock (as such shares shall then be constituted) at
the Conversion Rate in effect at such time, 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 into shares of the Company’s Common Stock only during one of the following periods upon the occurrence of one of the following events: 
  
 (i) during any fiscal quarter of the Company after the quarter ended December 31, 2004 (and only during such
fiscal quarter) if the Closing Price for the Common Stock for at least 20 Trading Days during the period of 30 consecutive Trading Days ending on the last Trading Day of the previous fiscal quarter equals or exceeds 120% of the Conversion Price on
such last Trading Day; 
  
 (ii) during the five
Business Days immediately following any five consecutive Trading Day period in which the Trading Price per $1,000 original principal amount of the Notes (as determined following a request by a Noteholder in accordance with the procedures described
below) for each day of that period was less than 98% of the product of the Closing Price of the Company’s Common Stock and the current Conversion Rate of the Notes on each such day; provided that a Noteholder may not convert any Notes in
reliance on this Section 14.01(a)(ii) after November 1, 2011 if on any Trading Day during such five consecutive Trading Day period the Closing Price of the Company’s Common Stock was between the applicable Conversion Price of the Notes and 120%
of the current Conversion Price of the Notes; 
  
 (iii) in the event that the Company calls the Notes for redemption, at any time prior to the close of business on the second Business Day immediately preceding the 

  

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Redemption Date; provided that only those Notes (or the portion thereof) that are called for redemption may be converted following such an event; or

  
 (iv) as provided in Section (b) of this
Section 14.01. 
  
 The Company or its designated agent shall
determine on a daily basis during the time period specified in Section 14.01(a)(i) or, following a request by a Noteholder in accordance with the procedures described below, 14.01(a)(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 Company shall promptly deliver to the Trustee (or other Conversion Agent appointed by the Company) written notice thereof. Whenever the Notes
shall become convertible pursuant to this Section 14.01 (as determined in accordance with 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 17.03, and the Company will issue a press release containing this information. Any notice so given shall be conclusively presumed to have been duly given, whether or not the
holder receives such notice. 
  
 The Trustee shall have no
obligation to determine the Trading Price of the Notes unless the Company has requested such determination; and the Company shall have no obligation to make such request unless a Noteholder delivers written notice to the Company at the address or
telecopier number set forth in Section 17.03 stating that such Noteholder is requesting that the Trustee make such determination set forth in Section 14.01(a)(ii), with such notice being accompanied with reasonable evidence that (x) the Person is a
Noteholder as of the date the notice is delivered and (y) the Trading Price per $1,000 original principal amount of Notes would be less than 98% of the product of the Closing Price of the Company’s Common Stock and the current Conversion Rate
of the Notes. At such time, the Company will be required to instruct the Trustee 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 original principal
amount of Notes is greater than or equal to 98% of the product of the Closing Price of the Company’s Common Stock and the current Conversion Rate of the Notes. 
  
 The Trustee shall be entitled at its sole discretion to consult with the Company and to request the assistance of the
Company in connection with the Trustee’s duties and obligations pursuant to Section 14.01(a) hereof, 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, however, that nothing herein shall be construed to relieve the Trustee of its duties pursuant to Section 14.01(a) 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 60 days
of the date of the distribution) to subscribe for or purchase shares of Common Stock at a price per share less than the Closing Price on the record date of the distribution, or (B) the Company distributes to all holders of Common Stock assets
(including cash), debt securities or rights to purchase securities of the Company, which distribution has a per share value as determined by the Company’s Board of Directors and set forth in a resolution of the 
  

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 Board of Directors exceeding 10% of the Closing Price of the Common Stock on the Trading Day immediately
preceding the declaration date for such distribution, then, in either case, the Notes may be surrendered for conversion at any time on and after the date that the Company gives notice to the holders of such distribution, which shall be not less than
20 Business Days prior to the Ex-Dividend Date for such distribution, until the earlier of the close of business on the Business Day immediately preceding the Ex-Dividend Date or the date the Company publicly announces that such distribution will
not take place, even if the Notes are not otherwise convertible at such time; provided that no holder of a Note will have the ability to convert and no adjustment to the Conversion Price will be made if the holder will otherwise participate in such
distribution without conversion; or 
  
 (ii) the
Company consolidates with or merges with or into another Person or is a party to a consolidation, merger, binding share exchange or conveys, transfers, sells, leases or otherwise disposes of all or substantially all of its properties and assets and,
in each case, and pursuant thereto all or substantially all of the Company’s Common Stock or assets are exchanged for, converted into, acquired for or constitutes solely the right to receive cash, securities or other property, then the Notes
may be surrendered for conversion at any time from and after the date 15 days prior to the anticipated effective date of such transaction and ending on and including the date 15 days after the actual effective date of such transaction (or, if such
transaction also results in holders having the right to require the Company to repurchase Notes, until the second Business Day immediately preceding the applicable Change of Control Repurchase Date). The Company will not be required to convert Notes
tendered pursuant to this Section 14.01(b)(ii) prior to the effective date of the transaction. If any consolidation, merger, binding share exchange, conveyance, transfer, sale, lease or other disposition is terminated prior to its effective date,
the surrender for conversion and the right to convert will be revoked and any Notes tendered in connection therewith will be returned to the applicable Noteholders. 
  
 The Board of Directors shall determine such actual effective date of the transaction, and such determination shall be
conclusive and binding on the holders and shall be publicly announced by the Company by publication on its Web site or through such other public medium as it may use at that time not later than two Business Days prior to such 15th day before the
actual effective date. 
  
 (c) A Note in respect of which a holder
is electing to exercise its option to require repurchase upon a Change of Control pursuant to Section 3.05 or repurchase pursuant to Section 3.06 may be converted only if such holder withdraws its election in accordance with Section 3.08(d). A
holder of Notes is not entitled to any rights of a holder of Common Stock until such holder has converted his Notes to Common Stock, and only to the extent such Notes are deemed to have been converted to Common Stock under this Article 14.

  
 (d) If and only to the extent a holder timely elects to
convert Notes in connection with a Change of Control that occurs on or prior to November 1, 2011, then except as set forth in Section 14.01(e), such holder will be entitled to receive, in addition to a number of shares of Common Stock equal to the
Conversion Rate per $1,000 principal amount of Notes, an additional number of shares of Common Stock (the “Additional Shares”) as described below, 
  

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 subject to the Company’s conversion settlement election as described in Sections 14.02(g) and 14.02(h);
provided that if the Stock Price paid in connection with such transaction is greater than $111.10 or less than $32.17 (subject in each case to adjustment as described below), no Additional Shares shall be issuable. No Additional Shares shall
be issuable under this Section 14.01(d) unless the holder elects to convert the Notes in connection with such Change of Control transaction. Notwithstanding this Section 14.01(d), if the Company elects to adjust the Conversion Rate pursuant to
Section 14.01(e), the provisions of Section 14.01(e) will apply in lieu of the provisions of this Section 14.01(d). 
  
 The number of Additional Shares issuable in connection with the conversion of Notes as described in the immediately preceding paragraph will be determined
by reference to the table attached as Schedule I hereto, based on the effective date of such Change of Control transaction and the Stock Price paid in connection with such transaction; provided that if the Stock Price is between two Stock
Price amounts in the table or such effective date is between two effective dates in the table, the number of Additional Shares will be determined by the Company by a straight-line interpolation between the number of Additional Shares set forth for
the higher and lower Stock Price amounts and the two effective dates, as applicable, based on a 365-day year. The “effective date” with respect to a Change of Control transaction means the date that a Change of Control becomes
effective. 
  
 If the holders of the Common Stock receive only
cash in such Change of Control transaction, the Stock Price will be the cash amount paid per share of Common Stock; otherwise, the Stock Price will be the average of the Closing Prices of the Company’s Common Stock on the five consecutive
Trading Days prior to but not including the effective date of such Change of Control transaction. 
  
 The Stock Prices set forth in the first row of the table in Schedule I hereto will be adjusted as of any date on which the Conversion Rate of the Notes is
adjusted pursuant to Section 14.05. The adjusted Stock Prices will equal the Stock Prices applicable immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to the adjustment
giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of Additional Shares will be adjusted in the same manner as the Conversion Rate as set forth in Section 14.05. 
  
 Notwithstanding the foregoing, in no event will the total number of shares of
Common Stock issuable upon conversion exceed 31.0849 per $1,000 principal amount of Notes, subject to adjustments in the same manner as the Conversion Rate as set forth in Section 14.05. 
  
 (e) Notwithstanding the provisions of Section 14.01(d), in the case of a Public Acquirer Change of Control, the Company may,
in lieu of increasing the Conversion Rate by Additional Shares as described in Section 14.01(d), elect to adjust the Conversion Rate and the related Conversion Obligation such that from and after the effective date of such Public Acquirer Change of
Control, holders of Notes will be entitled to convert their Notes (subject to the satisfaction of the conditions to conversion set forth in Sections 14.01(a) and (b) above) into a number of shares of Public Acquirer Common Stock by adjusting the
Conversion Rate in effect immediately before the Public Acquirer Change of Control by a fraction: 
  

 64 

 (i) the numerator of which will be (A) in the case of a consolidation, merger or binding
share exchange, pursuant to which the Common Stock is converted into, exchanged for or constitutes solely the right to receive cash, securities or other property, the average value of all cash and any other consideration (as determined by the Board
of Directors) paid or payable per share of Common Stock or (B) in the case of any other Public Acquirer Change of Control, the average of the Closing Price of the Common Stock for the five consecutive Trading Days prior to but excluding the
effective date of such Public Acquirer Change of Control, and 
  
 (ii) the denominator of which will be the average of the Closing Prices of the Public Acquirer Common Stock for the five consecutive Trading Days commencing on the trading day next succeeding the effective date of
such Public Acquirer Change of Control. 
  
 “Public
Acquirer Change of Control” means an event constituting a Change of Control that would otherwise obligate the Company to increase the Conversion Rate as described in Section 14.01(d) where the acquirer (or any entity that is a directly or
indirectly wholly-owned subsidiary of the acquirer) has a class of common stock traded on a U.S. national securities exchange or quoted on the Nasdaq National Market or which will be so traded or quoted when issued or exchanged in connection with
such Change of Control (the “Public Acquirer Common Stock”). 
  
 Upon a Public Acquirer Change of Control, if the Company so elects, holders may convert their Notes (subject to the satisfaction of the conditions to conversion set forth in Sections 14.01(a) and (b) above) at the
adjusted Conversion Rate described in the second preceding paragraph but will not be entitled to the increased Conversion Rate described in Section 14.01(d). The Company shall notify holders of its election in its notice to holders pursuant to
Section 14.01(b)(ii) above. Noteholders may convert their Notes upon a Public Acquirer Change of Control during the period specified herein. 
  
 If the Company elects to adjust the Conversion Rate and the related Conversion Obligation as described in this Section 14.01(e), the Company, or the
acquiring or surviving 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 for such
adjustment to the Conversion Rate and the Conversion Obligation. Such supplemental indenture shall provide for adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 14. 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 20 days after execution thereof. Failure to
deliver such notice shall not affect the legality or validity of such supplemental indenture. 
  
 Section 14.02. Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest or Dividends; Settlement of Cash or Common Stock Upon Conversion. (a) 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 “Form of Conversion Notice” on the reverse thereof 
  

 65 

 (the “Conversion Notice”), duly completed and manually signed, together with such Notes duly endorsed
for transfer, accompanied by the funds, if any, required by Section 14.02(d). 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 the amount of any transfer or similar taxes which are payable in connection with such conversion, if required pursuant to Section 14.07. The Conversion Agent shall provide copies of the
Form of Conversion Notice to holders of Notes upon request. 
  
 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 or similar taxes which are payable in connection with such conversion if required pursuant to Section 14.07. 
  
 (b) As promptly as practicable 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 such Noteholder at the Corporate Trust Office of the Trustee or any other office or agency maintained by the Company pursuant to Section 4.02, a certificate or certificates for the number of full shares of Common Stock 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 14.03. In case any Note of a denomination greater than $1,000 shall be surrendered for partial conversion, and subject to Section 2.05, the Company shall execute and the Trustee shall
authenticate and deliver to the holder of the Note so surrendered, without charge to him, a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note. 
  
 (c) Each conversion shall be deemed to have been effected as to any such Note
(or portion thereof) on the date on which the requirements set forth above in this Section 14.02 have been satisfied as to such Note (or portion thereof) (such date, the “Conversion Date”), and 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. 
  
 (d) Any Note or portion thereof surrendered for conversion during the period from the close of business on any Regular Record Date to the close of
business on the Business Day immediately preceding the following Interest Payment Date that has not been called for 
  

 66 

 redemption during such period 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 or a Change of
Control Repurchase Date that is after a Regular Record Date and prior to the next Interest Payment Date or (2) 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 and unpaid on any Note converted or for dividends on any shares issued upon the conversion of such Note as provided in this Article 14.

  
 (e) 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. 
  
 (f) Upon the conversion of a Note, that portion of the accrued and unpaid Interest with respect to the converted Note shall
not be cancelled, extinguished or forfeited, but rather shall be deemed to be paid in full to the holder thereof through delivery of the Common Stock or, in lieu thereof, cash or a combination of cash and 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 (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 and the accrued but unpaid Interest, and the balance, if any, of such
fair market value of such Common Stock (and any such cash payment) shall be treated as issued in exchange for and in satisfaction of the right to convert the Note being converted pursuant to the provisions hereof. 
  
 (g) In the event that the Company receives a Conversion Notice on or prior to
(1) the date on which the Company gives a Redemption Notice or (2) the date that is 20 days prior to the Stated Maturity of the Notes (the “Final Notice Date”), the following procedures shall apply: 
  
 (i) If the Company elects to satisfy all or any portion of
its obligation to convert the Notes (the “Conversion Obligation”) in cash, the Company shall notify holders through the Trustee of the dollar amount or percentage to be satisfied in cash (which must be expressed either as a fixed
dollar amount or fixed percentage of the Conversion Obligation) at any time on or before the date that is two Business Days next following the Conversion Date (the “Cash Settlement Notice Period”). If the Company timely elects to
pay cash for any portion for the Common Stock otherwise issuable to holders upon conversion, holders may retract the Conversion Notice at any time during the two Business Days next following the final day of the Cash Settlement Notice Period (the
“Conversion Retraction Period”). No such retraction can be made (and a Conversion Notice shall be irrevocable) if the Company does not elect to deliver cash in lieu of Common Stock (other than cash in lieu of fractional shares).
Upon the expiration of a Conversion Retraction Period, a Conversion Notice shall be irrevocable. If the 
  

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 Company elects to satisfy all or any portion of the Conversion Obligation in cash, and the applicable
Conversion Notice has not been retracted, then settlement (in cash or in cash and Common Stock) will occur on the Business Day next following the final day of the 20-Trading Day period beginning on the day after the final day of the Conversion
Retraction Period (the “Cash Settlement Averaging Period”). 
  
 (ii) If the Company does not elect to satisfy any part of the Conversion Obligation in cash (other than cash in lieu of any fractional shares), delivery of the Common Stock into which the Notes are converted (and cash
in lieu of any fractional shares) shall occur through the Conversion Agent as described above as soon as practicable on or after the Conversion Date. 
  
 (h) Settlement amounts will be computed as follows: 
  
 (i) If the Company elects to satisfy the entire Conversion Obligation in Common Stock, it shall deliver to holders that have delivered the
Conversion Notice giving rise to the Conversion Obligation a number of shares of Common Stock equal to (i) the aggregate principal amount of Notes to be converted divided by 1,000, multiplied by (ii) the Conversion Rate; provided that if on the
Conversion Date (x) a Noteholder holds Notes that are neither registered under the Securities Act nor immediately freely saleable pursuant to rule 144(k) under the Securities Act and (y) there exists a Registration Default (as defined in the
Registration Rights Agreement), then for purposes of this Section 14.02(h)(i) and Section 14.02(h)(iii), the Conversion Rate shall be multiplied by 103%. In addition, the Company shall pay cash for any fractional shares of Common Stock based on the
Closing Price of the Common Stock on the Trading Day immediately preceding the Conversion Date. 
  
 (ii) If the Company elects to satisfy the entire Conversion Obligation in cash, it shall deliver to holders that have delivered the
Conversion Notice giving rise to the Conversion Obligation cash in an amount equal to the product of: 
  
 (A) a number equal to (i) the aggregate principal amount of Notes to be converted divided by 1,000, multiplied by (ii) the Conversion
Rate; and 
  
 (B) the average Closing Price of
the Common Stock during the Cash Settlement Averaging Period. 
  
 (iii) If the Company elects to satisfy a fixed portion (other than 100%) of the Conversion Obligation in cash, it shall deliver to Noteholders that have delivered the Conversion Notice giving rise to the Conversion
Obligation cash in an amount equal to the specified cash amount (the “Cash Amount”) and a number of shares of Common Stock equal to the greater of (i) zero and (ii) the excess, if any, of the number of shares of Common Stock
calculated as if the Company elected to satisfy the entire Conversion Obligation in shares over the number of shares equal to the sum, for each day of the Cash Settlement Averaging Period, of (x) 5% of the Cash Amount, divided by (y) the Closing
Price of Common Stock. The Conversion Rate under this clause is subject to adjustment as provided for in Section 14.02(h)(i). In addition, the Company shall pay cash for all 

  

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fractional Common Stock based on the average Closing Price of the Common Stock during the Cash Settlement Averaging Period. 
  
 (i) The Company must determine whether or not it will satisfy all or a
portion of the Conversion Obligation in cash at the time it issues a Redemption Notice or a Final Maturity Notice and such notices will state the amount of the Conversion Obligation to be settled in cash. In the event that the Company receives a
Conversion Notice after the Final Notice Date or the date a Redemption Notice has been issued, except as set forth in the succeeding sentence, settlement amounts will be computed and settlement dates will be determined in the same manner as set
forth in clauses (g) and (h) of this Section 14.02 except that the Cash Settlement Averaging Period shall be the 20 Trading Day period beginning on the Trading Day after the Conversion Date. In the event that the Company receives a Conversion Notice
on the Business Day prior to the Stated Maturity of the Notes, the Cash Settlement Averaging Period shall be the 20 Trading Day period beginning on the Trading Day after the Stated Maturity. If a Conversion Notice is received from holders of Notes
after the date that a Redemption Notice or the Final Maturity Notice has been issued, such holders may not retract their Conversion Notice. Settlement (in cash and/or Common Stock) will occur on the Business Day following the final day of such Cash
Settlement Averaging Period. 
  
 Section 14.03. 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. If any fractional
share of stock would be issuable upon the conversion of any Note or Notes, the Company shall make an adjustment and payment therefor in cash to the holder of Notes at the Closing Price on the last Trading Day immediately preceding the day on which
the Notes (or specified portions thereof) are deemed to have been converted. 
  
 Section 14.04. Conversion Rate. Each $1,000 principal amount of the Notes shall be convertible into the number of shares of Common Stock specified in the form of Note (herein called the “Conversion
Rate”) attached as Exhibit A hereto (initially 21.8139 shares), subject to adjustment as provided in this Article 14. 
  
 Section 14.05. 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 pay a dividend or make a distribution to all
holders of the outstanding Common Stock in shares of Common Stock, the Conversion Rate, as in effect at the opening of business on the day next following the date fixed for the determination of stockholders entitled to receive such dividend or other
distribution, shall be increased by dividing such Conversion Rate by a fraction, 
  
 (i) the numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such
determination, and 
  

 69 

 (ii) the denominator of which shall be the sum of such number of shares and the total
number of shares constituting such dividend or other distribution, 
  
 such
increase to become effective immediately after the opening of business on the Business Day next following the date fixed for such determination. The Company will not pay any dividend or make any distribution on shares of Common Stock held in
treasury by the Company. If any dividend or distribution of the type described in this Section 14.05(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 (other than pursuant to a dividend reinvestment plan or share purchase plan) issue rights, options or warrants to all holders of its Common Stock entitling them, for a period expiring within 60 days after the date of issuance of
such rights, options or warrants, to subscribe for or purchase shares of Common Stock at a price per share less than the Closing Price per share of the Common Stock on the date fixed for the determination of such holders entitled to receive such
rights, options or warrants, the Conversion Rate in effect at the opening of business on the day immediately following the date fixed for such determination shall be increased by dividing such Conversion Rate by a fraction, 
  
 (i) the numerator of which shall be the number of shares of
Common Stock outstanding at the close of business on the date fixed for such determination plus the number of shares of Common Stock that the aggregate offering price of the total number of shares of Common Stock so offered for subscription or
purchase would purchase at such Closing Price, 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 plus the number of shares of Common Stock so offered for subscription or purchase
below such Closing Price. 
  
 Such adjustment shall be successively made whenever
any such rights, options or warrants are issued and shall become effective immediately after the opening of business on the Business Day immediately following the date fixed for such determination. The Company shall not issue any such rights,
options or warrants in respect of shares of Common Stock held in treasury by the Company. 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, options or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered. If such rights, options
or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such date fixed for the determination of stockholders entitled to receive such rights, options or warrants had not
been fixed. 
  
 In determining whether any rights, options or warrants entitle the
holders to subscribe for or purchase shares of Common Stock at less than such Closing Price, 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, options or warrants and any amount 

  

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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 or split
into a greater number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day immediately following the day upon which such subdivision or split 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 immediately 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 concurrently with the effectiveness of such subdivision, split or combination. 
  
 (d) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock evidences of its indebtedness, shares of capital stock, securities or other property (but excluding any rights, dividend or distribution referred to in Section 14.05(a), any options or warrants referred to in Section
14.05(b) and distributions consisting exclusively of cash), the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect immediately prior to the close of business on the date fixed for the determination of stockholders
entitled to receive such distribution by a fraction, 
  
 (i) the numerator of which shall be the Current Market Price per share of the Common Stock on the date fixed for such determination, and 
  
 (ii) the denominator of which shall be such Current Market Price per share of the Common Stock minus the fair market value, as determined
by the Board of Directors, of the portion of such evidences of indebtedness, shares of capital stock, securities or other property 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 next following the date fixed for the
determination of stockholders entitled to receive such distribution; provided, however, that in the event that the Company makes a distribution to all holders of its Common Stock consisting of capital stock of, or similar equity
interests in, a Subsidiary or other business unit of the Company, the Conversion Rate shall be adjusted by dividing the Conversion Rate in effect immediately prior to the close of business on the date fixed for the determination of stockholders
entitled to receive such distribution by a fraction of which the numerator shall be the Spin-off Market Price per share of the Common Stock on the date fixed for such determination and the denominator shall be the Spin-off Market Price per share of
the Common Stock on the date fixed for such determination plus the Spin-off Market Price per share or similar equity interest of the Subsidiary or other business unit of the Company on such date, such adjustment to become effective 10 Trading Days
after the effective date of such distribution of capital stock of, or similar equity interest in, a Subsidiary or other business unit of the Company. In any case in which this Section 14.05(d) is applicable, Section 14.05(a) and (b) shall not be
applicable. 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. 
  

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 (e) In case the Company distributes cash, excluding any dividend or any distribution in connection with
the Company’s liquidation, dissolution or winding-up, the Conversion Rate will be increased immediately after the close of business on the distribution date by multiplying such Conversion Rate by a fraction, (A) the numerator of which will be
the Current Market Price of the Company’s Common Stock, and (B) the denominator of which shall be the Current Market Price of the Company’s Common Stock minus the amount per share of such cash dividend or distribution. 
  
 (f) In case a tender or exchange offer made by the Company or any Subsidiary
of the Company for all or any portion of the Common Stock shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders of consideration per share of Common Stock having a fair
market value (as determined by the Board of Directors, whose determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the “Expiration Time”) tenders or exchanges may be
made pursuant to such tender or exchange offer (as it may be amended) exceeds the Closing 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 (A) the fair market value, as determined by the Board of Directors, of the aggregate
consideration payable for all shares of Common Stock purchased in such tender or exchange offer and (B) the product of the number of shares of Common Stock outstanding less any such purchased shares and the Closing Price of the Common Stock on the
Trading Day next succeeding the Expiration Time, and 
  
 (ii) the denominator of which shall be the product of the number of shares of Common Stock outstanding, including any such purchased shares, and the Closing Price of the Common Stock on the Trading Day next succeeding the Expiration Time,

  
 such adjustment to become effective immediately following the close of
business on the day next succeeding the Expiration Time. If the Company is obligated to purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer had not been made. 
  
 (g) In the event that a Person other than the Company or a Subsidiary of the Company makes a payment in respect of a tender
offer or exchange offer with respect to which, as of the Expiration Time, the Board of Directors is not recommending rejection of the offer, the Conversion Rate will be increased on the second Trading Day after the Expiration Time by multiplying the
current Conversion Rate by a fraction: 
  
 (i)
the numerator of which shall be the sum of (x) the fair market value, as determined by the Board of Directors, of the aggregate consideration payable for all shares of Common Stock purchased in such tender or exchange offer and (y) the product of
the number of shares of the Company’s Common Stock outstanding less any such 

  

 72 

 
purchased shares and the Closing Price of the Common Stock on the Trading Day next succeeding the Expiration Time, and 
  
 (ii) the denominator of which will be the product of the
number of shares of Common Stock outstanding, including any such purchased shares, and the Closing Price of the Common Stock on the Trading Day next succeeding the Expiration Time. 
  
 The adjustment referred to in this Section 14.05(g) will be made only if (x) the tender offer or exchange offer is for an
amount that increases the offeror’s ownership of Common Stock to more than 25% of the total shares of Common Stock outstanding; and (y) the cash and value of any other consideration included in the payment per share of Common Stock exceeds the
Current Market Price per share of Common Stock on the Trading Day next succeeding the Expiration Time; provided that, the adjustment referred to in this Section 14.05(g) will not be made if, as of the Expiration Time, the offering documents disclose
a plan or an intention to cause the Company to engage in a consolidation or merger or a sale of all or substantially all of the Company’s assets. 
  
 (h) The reclassification of Common Stock into securities other than Common Stock (other than any reclassification upon an event to which Section 14.01,
any other provision of this Section 14.05 or Section 14.06 applies) as a result of which holders of Common Stock retain a portion of their Common Stock and receive securities other than Common Stock shall be deemed to involve (a) a distribution of
such securities other than Common Stock to all holders of Common Stock (and the effective date of such reclassification shall be deemed to be “the date fixed for the determination of stockholders entitled to receive such distribution” and
the “date fixed for such determination” within the meaning of Section 14.05(d)), and (b) a subdivision, split or combination, as the case may be, of the number of shares of Common Stock outstanding immediately prior to such
reclassification into the number of shares of Common Stock outstanding immediately thereafter (and the effective date of such reclassification shall be deemed to be “the day upon which such subdivision or split becomes effective” or
“the day upon which such combination becomes effective,” as the case may be, and “the day upon which such subdivision, split or combination becomes effective” within the meaning of Section 14.05(c)). 
  
 (i) Notwithstanding the foregoing provisions of Section 14.05, no adjustment
shall be made thereunder, nor shall an adjustment be made to the ability of a holder of a Note to convert, for any distribution described therein if the holder will otherwise participate in the distribution without conversion of such holder’s
Notes. 
  
 (j) The Company may make such increases in the
Conversion Rate, in addition to those required by clauses (a) through (h) of this Section 14.05 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, the Company in its sole discretion may increase from time to time the Conversion Rate by any amount for any
period of time if the period is at least 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 
  

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 pursuant to the preceding sentence, the Company shall mail to holders of record of the Notes a notice of the increase at
least 15 days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the period during which it will be in effect. 
  
 (k) No adjustment to the Conversion Rate need be made: 
  
 (i) in connection with the issuance of any shares of Common Stock pursuant to any present or future plan
providing for the reinvestment of dividends or interest payable on securities of the Company and the investment of additional optional amounts in shares of Common Stock under any plan; 
  
 (ii) in connection with the issuance of any shares of Common Stock or options or rights to purchase those
shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries; 
  
 (iii) in connection with the issuance of any shares of Common Stock pursuant to any option, warrant, right, or exercisable, exchangeable
or convertible security not described in (ii) above and outstanding as of the date the Notes were first issued; 
  
 (iv) in connection with a change in the par value of the Common Stock; or 
  
 (v) in connection with accrued and unpaid Interest, including Contingent Interest, if any. 
  
 To the extent the Notes become convertible into cash, assets or property (other than capital
stock of the Company or securities to which Section 14.06 applies), no adjustment shall be made thereafter as to the cash, assets or property. Interest shall not accrue on such cash, assets or property. 
  
 (l) No adjustment in the Conversion Rate shall be required unless such
adjustment would require an increase or decrease of at least 1% in such rate; provided that any adjustments that by reason of this Section 14.05(l) 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. 
  
 (m) Whenever the Conversion Rate is adjusted as herein provided, the Company
shall promptly file with the Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
Unless and until a Responsible Officer of the Trustee shall have received such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion Rate of
which it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment
becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the Note Register provided for in Section 2.05 of this Indenture, within 20 

  

 74 

 
days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 
  
 (n) In any case in which this Section 14.05 provides that an adjustment shall
become effective immediately after (1) a record date or Stock Record Date for an event, (2) the date fixed for the determination of stockholders entitled to receive a dividend or distribution pursuant to Section 14.05(a) or 14.05(d), (3) a date
fixed for the determination of stockholders entitled to receive rights or warrants pursuant to Section 14.05(b) or (4) the Expiration Time for any tender or exchange offer pursuant to Section 14.05(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 shares of Common Stock or other securities issuable upon such conversion by reason of the adjustment required by such Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment
and (y) paying to such holder any amount in cash in lieu of any fraction pursuant to Section 14.03. For purposes of this Section 14.05(n), 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. 
  
 (o) For purposes of this Section 14.05, 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 14.06. Effect of Reclassification,
Consolidation, Merger or Sale. If any of the following events occur, namely (i) any reclassification or change of the outstanding shares of Common Stock (other than a subdivision or combination to which Section 14.05(c) applies) or (ii) the
Company consolidates with or merges with or into another Person or is a party to a consolidation, merger, binding share exchange or conveys, transfers, sells, leases or otherwise disposes of all or substantially all of its properties and assets and,
in each case, pursuant to which all or substantially all of the Company’s Common Stock or assets are exchanged for, converted into, acquired for or constitute solely the right to receive cash, securities or other property, then the Company or
the Successor Company, 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 cash, securities or other property receivable upon such reclassification, 
  

 75 

 change, consolidation, merger, binding share exchange, conveyance, transfer, sale, lease or other disposition by a holder
of a number of shares of Common Stock (including, in the case of a conversion pursuant to Section 14.01(d), any Additional Shares issuable upon such conversion) issuable upon conversion of such Notes (assuming, for such purposes, a sufficient number
of authorized shares of Common Stock are available to convert all such Notes) immediately prior to such reclassification, change, consolidation, merger, binding share exchange, conveyance, transfer, sale, lease or other disposition assuming such
holder of Common Stock did not exercise his rights of election, if any, as to the kind or amount of cash, securities or other property receivable upon such reclassification, change, consolidation, merger, binding share exchange, conveyance,
transfer, sale, lease or other disposition (provided that, if the kind or amount of cash, securities or other property receivable upon such reclassification, change, consolidation, merger, binding share exchange, conveyance, transfer, sale, lease or
other disposition is not the same for each share of Common Stock in respect of which such rights of election shall not have been exercised (“non-electing share”), then for the purposes of this Section 14.06 the kind and amount of
cash, securities or other property receivable upon such reclassification, change, consolidation, merger, binding share exchange, conveyance, transfer, sale, lease or other disposition for each non-electing share shall be deemed to be the kind and
amount so receivable per share by a plurality of the non-electing shares). Such supplemental indenture shall provide for adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 14.

  
 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 20 days after execution thereof. Failure to deliver such notice shall not affect the
legality or validity of such supplemental indenture. 
  
 Notwithstanding the provisions of this Section, if the Company elects to adjust the Conversion Rate and the related Conversion Obligation as described in Section 14.01(e), the provisions of Section 14.01(e) shall apply instead of the
provisions of this Section. 
  
 The above provisions of this
Section shall similarly apply to successive reclassifications, changes, consolidations, mergers, combinations, sales and conveyances. 
  
 If this Section 14.06 applies to any event or occurrence, Section 14.05 shall not apply. 
  
 Section 14.07. Taxes on Shares Issued. The issue of stock certificates on conversions of Notes shall be made without
charge to the converting Noteholder for any documentary, stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not, however, be required to pay any such tax which may be payable in respect of any transfer involved
in the issue and delivery of stock in any name other than that of the holder of any Note converted, and the Company shall not be required to issue or deliver any such stock certificates 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 14.08. 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 

  

 76 

 
shares of Common Stock to provide for the conversion of the Notes from time to time as such Notes are presented for conversion. 
  
 Before taking any action which would cause an adjustment increasing the
Conversion Rate to an amount that would cause the Conversion Price to be reduced below the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes, the Company will take all corporate action which may, in the
opinion of its counsel, be necessary in order that the Company may validly and legally issue shares of such Common Stock at such adjusted Conversion Rate. 
  
 The Company covenants that all shares of Common Stock that may be issued upon conversion of Notes will upon issue be fully paid and nonassessable 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 Notes; provided that if the rules of such exchange or
automated quotation system permit the Company to defer the listing of such Common Stock until the first conversion of the Notes into Common Stock in accordance with the provisions of this Indenture, the Company covenants to list such Common Stock
issuable upon conversion of the Notes in accordance with the requirements of such exchange or automated quotation system at such time. 
  
 Section 14.09. Responsibility of Trustee. The Trustee and any other Conversion Agent shall not at any time be under any duty or responsibility to
any holder of Notes to determine the Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the
method employed, or herein or in any supplemental indenture provided to be employed, in making the same. The Trustee and any other Conversion Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares
of Common Stock, or of any securities or property, which may at any time be issued or delivered upon the conversion of any Note; and the Trustee and any other Conversion Agent make no representations with respect thereto. Neither the Trustee nor any
Conversion Agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of any Note for the purpose of conversion
or to comply with any of the duties, responsibilities or covenants of the Company contained in this Article 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 
  

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 Section 14.06 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 referred to in such Section 14.06 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 Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental indenture) with respect
thereto. 
  
 Section 14.10. 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 14.05; or 
  
 (b) the Company shall authorize the granting to the holders of all or substantially all of its Common Stock of rights, options or warrants to subscribe
for or purchase any share of any class or any other rights, options or warrants; or 
  
 (c) of any reclassification or reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par value, or from par value to no par value,
or from no par value to par value), or of any consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the sale or transfer of all or substantially all of the assets of the
Company; or 
  
 (d) of the voluntary or involuntary dissolution,
liquidation or winding up of the Company; 
  
 the Company shall cause to be filed
with the Trustee and to be mailed to each holder of Notes at his address appearing on the Note Register provided for in Section 2.05 of this Indenture, as promptly as possible but in any event at least ten 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, rights, warrants, reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up. 
  
 Section 14.11.
Stockholder Rights Plans. If the rights provided for in the existing or any future rights plan adopted by the Company have separated from the shares of Common Stock in accordance with the provisions of the applicable stockholder rights
agreement so that the holders of the Notes would not be entitled to receive any rights in respect of Common Stock issuable upon conversion of the Notes, the Conversion Rate will be adjusted as if the Company distributed to all holders of Common
Stock shares of the Company’s capital stock, evidences of 
  

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 indebtedness or assets (including securities but excluding rights or warrants to purchase Common Stock issued to all
holders of Common Stock, Common Stock issued as a dividend or distribution on Common Stock and cash distributions), subject to readjustment in the event of the expiration, termination or redemption of the rights. In lieu of any such adjustment, the
Company may amend such applicable stockholder rights agreement to provide that upon conversion of the Notes the holders will receive, in addition to the Common Stock issuable upon such conversion, the rights which would have attached to such Common
Stock if the rights had not become separated from the Common Stock under such applicable stockholder rights agreement. 
  
 ARTICLE 15 
 SUBORDINATION

  
 Section 15.01. Agreement to Subordinate. The Company
covenants and agrees, and each Noteholder by accepting a Note likewise covenants and agrees, that all Notes shall be issued subject to the provisions of this Article 15; and each Person holding any Note, whether upon original issue or upon transfer,
assignment or exchange thereof, accepts and agrees to be bound by such provisions. 
  
 The payment of the principal of, premium, if any, and Interest on all Notes (including, but not limited to, the Redemption Price with respect to the Notes called for redemption or the Change of Control Repurchase
Price or the Company Repurchase Price with respect to the Notes subject to repurchase in accordance with Article 3 as provided in this Indenture) issued hereunder shall, to the extent and in the manner hereinafter set forth, be subordinated and
subject in right of payment to the prior payment of all Senior Indebtedness, whether outstanding at the date of this Indenture or thereafter incurred, in full in cash or payment satisfactory to the holders of Senior Indebtedness. 
  
 No provision of this Article 15 shall prevent the occurrence of any Default
or Event of Default hereunder. 
  
 Section 15.02. Payment to
Noteholders. No payment shall be made with respect to the principal of, or premium, if any, or Interest on the Notes (including, but not limited to, the Redemption Price with respect to the Notes called for redemption or the Change of Control
Repurchase Price or the Company Repurchase Price with respect to the Notes subject to repurchase in accordance with Article 3 as provided in this Indenture), and no redemption, repurchase or retirement of the Notes shall occur and no deposit shall
be made pursuant to Article 12 at a time when such deposited amounts would otherwise be permitted under this Article 15, other than through the conversion of Notes into Common Stock and payments and distributions made by the Trustee as permitted by
the first paragraph of Section 15.05 as a result of the failure of the Trustee to receive the appropriate notice, if: 
  
 (1) a default in the payment of principal, premium, interest, rent or other obligations due on any Senior Indebtedness occurs and is
continuing (or, in the case of Senior Indebtedness for which there is a period of grace, in the event of such a default that continues beyond the period of grace, if any, specified in the instrument or lease evidencing such Senior Indebtedness),
unless and until such default shall have been cured or waived by the appropriate holders of the Senior Indebtedness or shall have ceased to exist; or 
  

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 (2) a default, other than a payment default, on any Designated Senior Indebtedness occurs
and is continuing that then permits holders of such Designated Senior Indebtedness to accelerate the maturity of all or any portion of such Designated Senior Indebtedness (or would permit such holders to so accelerate with the giving of notice or
the passage of time or both) and the Trustee receives a notice of the default (a “Payment Blockage Notice”) from a Representative or holder of such Designated Senior Indebtedness or the Company. 
  
 Subject to the provisions of Section 15.05, if the Trustee receives any
Payment Blockage Notice pursuant to clause (2) above, no subsequent Payment Blockage Notice shall be effective for purposes of this Section unless and until at least 360 days shall have elapsed since the initial effectiveness of the immediately
prior Payment Blockage Notice and all scheduled payments 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
(unless such default was waived, cured or otherwise ceased to exist and thereafter subsequently reoccurred) shall be, or be made, the basis for a subsequent Payment Blockage Notice. 
  
 Unless this Article 15 otherwise prohibits payments on or distributions in respect of the Notes at the time of such payments
or distributions, the Company may and shall resume such payments on and distributions: 
  
 (A) in the case of a default referred to in clause (1) above, the date upon which the default is cured or waived by the requisite holders
of Senior Indebtedness or otherwise ceases to exist, or 
  
 (B) in the case of a default referred to in clause (2) above, the earlier of the date on which such default is cured or waived or otherwise ceases to exist and 179 days pass after the date on which the applicable
Payment Blockage Notice is received, if the maturity of such Designated Senior Indebtedness has not been accelerated. 
  
 Upon any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or liquidation or reorganization of the Company (whether voluntary or involuntary) or in bankruptcy, insolvency, receivership or similar proceedings, all amounts due or to become due upon all Senior Indebtedness
shall first be paid in full in cash, or other payment satisfactory to the holders of Senior Indebtedness before any payment is made on account of the principal of, premium, if any, or Interest on the Notes; and upon any such dissolution or
winding-up or liquidation or reorganization of the Company or bankruptcy, insolvency, receivership or other proceeding, any payment by the Company, or distribution of assets of the Company of any kind or character, whether in cash, property or
securities, to which the Noteholders or the Trustee would be entitled, except for the provision of this Article 15, shall (except as aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or other
Person making such payment or distribution, or by the Noteholders or by the Trustee under this Indenture if received by them or it, directly to the holders of Senior Indebtedness (pro rata to such holders on the basis of the respective amounts of
Senior Indebtedness held by such holders, or as otherwise required by law or a court order) or their Representative or Representatives, as their respective interests may appear, to the extent necessary to pay all Senior Indebtedness in full in cash,
or other payment satisfactory to the holders of Senior Indebtedness, after giving 

  

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effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness, before any payment or distribution is made to the Noteholders
or to the Trustee. 
  
 For purposes of this Article 15, the words,
“cash, property or securities” shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article 15 with respect to the Notes to the payment of all Senior Indebtedness which may at the time be outstanding; provided that (i) the Senior Indebtedness is assumed
by the new corporation, if any, resulting from any reorganization or readjustment, and (ii) the rights of the holders of Senior Indebtedness (other than leases which are not assumed by the Company or the new corporation, as the case may be) are not,
without the consent of such holders, altered by such reorganization or readjustment. The consolidation of the Company with, or the merger of the Company into, another corporation or the liquidation or dissolution of the Company following the
conveyance, transfer or lease of its property as an entirety, or substantially as an entirety, to another corporation upon the terms and conditions provided for in Article 11 shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 15.02 if such other corporation shall, as a part of such consolidation, merger, conveyance, transfer or lease, comply with the conditions stated in Article 11. 
  
 In the event of the acceleration of the Notes because of an Event of Default,
no payment or distribution shall be made to the Trustee or any Noteholders in respect of the principal of, premium, if any, or Interest on the Notes by the Company (including, but not limited to, the Redemption Price with respect to the Notes called
for redemption or the Change of Control Repurchase Price or the Company Repurchase Price with respect to the Notes subject to repurchase in accordance with Article 3 as provided in this Indenture), except payments and distributions made by the
Trustee as permitted by Section 15.05, until all Senior Indebtedness has been paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness or such acceleration is rescinded in accordance with the terms of this Indenture.
If payment of the Notes is accelerated because of an Event of Default, the Company shall promptly notify holders of Senior Indebtedness of such acceleration. 
  
 In the event that, notwithstanding the foregoing provisions, any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities (including, without limitation, by way of setoff or otherwise), prohibited by the provisions of this Article 15, shall be received by the Trustee or the Noteholders before all Senior Indebtedness is paid in full, in cash
or other payment satisfactory to the holders of Senior Indebtedness, or provision is made for such payment thereof in accordance with its terms in cash or other payment satisfactory to the holders of Senior Indebtedness, such payment or distribution
shall be held in trust for the benefit of and shall be paid over or delivered to the holders of Senior Indebtedness or their Representative or Representatives, as their respective interests may appear, as calculated by the Company. 
  
 Nothing in this Section 15.02 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 7.07. This Section 15.02 shall be subject to the further provisions of Section 15.05. 
  

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 Section 15.03. Subrogation of Notes. After the payment in full, in cash or other payment
satisfactory to the holders of Senior Indebtedness of all Senior Indebtedness (and all commitments with respect to such Senior Indebtedness have terminated or expired), the rights of the Noteholders shall be subrogated to the extent of the payments
or distributions made to the holders of such Senior Indebtedness pursuant to the provisions of this Article 15 (equally and ratably with the holders of all indebtedness of the Company which by its express terms is subordinated to other indebtedness
of the Company to substantially the same extent as the Notes are subordinated and is entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of
the Company applicable to the Senior Indebtedness until the principal, premium, if any, and Interest on the Notes shall be paid in full in cash or other payment satisfactory to the holders of Senior Indebtedness; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior Indebtedness of any cash, property or securities to which the Noteholders or the Trustee would be entitled except for the provisions of this Article 15, and no payment over
pursuant to the provisions of this Article 15, to or for the benefit of the holders of Senior Indebtedness by Noteholders or the Trustee, shall, as between the Company, its creditors other than holders of Senior Indebtedness, and the Noteholders, be
deemed to be a payment by the Company to or on account of the Senior Indebtedness; and no payments or distributions of cash, property or securities to or for the benefit of the Noteholders pursuant to the subrogation provisions of this Article 15,
which would otherwise have been paid to the holders of Senior Indebtedness shall be deemed to be a payment by the Company to or for the account of the Notes. It is understood that the provisions of this Article 15 are and are intended solely for the
purposes of defining the relative rights of the Noteholders, on the one hand, and the holders of the Senior Indebtedness, on the other hand. 
  
 Nothing contained in this Article 15 or elsewhere in this Indenture or in the Notes is intended to or shall impair, as among the Company, its creditors
other than the holders of Senior Indebtedness, and the Noteholders, the obligation of the Company, which is absolute and unconditional, to pay to the Noteholders the principal of (and premium, if any) and Interest on the Notes as and when the same
shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Noteholders and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or
therein prevent the Trustee or the Noteholders from exercising all remedies otherwise permitted by applicable law upon Default under this Indenture, subject to the rights, if any, under this Article 15 of the holders of Senior Indebtedness in
respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
  
 Upon any payment or distribution of assets of the Company referred to in this Article 15, the Trustee, subject to the provisions of Section 7.01, and the
Noteholders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are pending, or a certificate of the receiver,
trustee in bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, delivered to the Trustee or to the Noteholders, for the purpose of ascertaining the Persons entitled to participate in such distribution, the
holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon and all other facts pertinent thereto or to this Article 15. 
  

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 Section 15.04. Authorization to Effect Subordination. Each Noteholder by accepting a Note
authorizes and directs the Trustee on such holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article 15 and appoints the Trustee to act as such holder’s
attorney-in-fact for any and all such purposes. If the Trustee does not file a proper proof of claim or proof of debt in the form required in any proceeding referred to in Section 15.03 hereof at least 30 days before the expiration of the time to
file such claim, the holders of any Senior Indebtedness or their Representatives are hereby authorized to file an appropriate claim for and on behalf of the Noteholders and each Noteholder hereby appoints the holders of Senior Indebtedness or their
respective Representatives to act as its attorney-in-fact for any and all such purposes. 
  
 Section 15.05. Notice to Trustee. The Company shall give prompt written notice in the form of an Officers’ Certificate to a Responsible Officer of the Trustee and to any Paying Agent of any fact known to
the Company which would prohibit the making of any payment of monies to or by the Trustee or any Paying Agent in respect of the Notes pursuant to the provisions of this Article 15. Notwithstanding the provisions of this Article 15 or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any payment of monies to or by the Trustee in respect of the Notes pursuant to the provisions of this
Article 15, unless and until a Responsible Officer of the Trustee shall have received written notice thereof at the Corporate Trust Office from the Company (in the form of an Officers’ Certificate) or a Representative or a holder or holders of
Senior Indebtedness; and before the receipt of any such written notice, the Trustee, subject to the provisions of Section 7.01, shall be entitled in all respects to assume that no such facts exist; provided that with respect to any such
monies that may become payable for any purpose (including, without limitation, the payment of the principal of, or premium, if any, or Interest on any Note) unless the Trustee shall have received, on a date not less than one Business Day immediately
prior to the date upon which by the terms hereof such monies shall become payable, the notice provided for in this Section 15.05, then, anything in the first two paragraphs of Section 15.02 contained to the contrary notwithstanding, the Trustee
shall have full power and authority to receive such monies and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary which may be received by it on or after such prior date. Nothing
shall prevent any payment by the Trustee to the holders of monies deposited with it pursuant to Article 12, and any such payment shall not be subject to the provisions of Article 15; provided that, at the time of any such deposit, such deposit and
payment were permitted under this Article 15 without giving effect to the first clause of this sentence. 
  
 The Trustee, subject to the provisions of Section 7.01, shall be entitled to rely on the delivery to it of a written notice by a Representative or a
Person representing himself to be a holder of Senior Indebtedness to establish that such notice has been given by a Representative or a holder of Senior Indebtedness. In the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article 15, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of
the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article 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. 
  

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 Section 15.06. Trustee’s Relation to Senior Indebtedness. The Trustee in its individual
capacity shall be entitled to all the rights set forth in this Article 15 in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in Section 7.11 or elsewhere in this
Indenture shall deprive the Trustee of any of its rights as such holder. 
  
 With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants and obligations as are specifically set forth in this Article 15, and no implied covenants
or obligations with respect to the holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions
of Section 7.01, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay over or deliver to Noteholders, the Company or any other Person money or assets to which any holder of Senior Indebtedness shall be entitled by
virtue of this Article 15 or otherwise. 
  
 Section 15.07. No
Impairment of Subordination. No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or
otherwise be charged with. 
  
 Section 15.08. Certain
Conversions Deemed Payment. For the purposes of this Article 15 only, (a) the issuance and delivery of Junior Securities upon conversion of Notes in accordance with Article 14 shall not be deemed to constitute a payment or distribution on
account of the principal of (or premium, if any) or Interest on the Notes or on account of the purchase or other acquisition of Notes, and (b) the payment, issuance or delivery of cash (except in satisfaction of fractional shares), securities (other
than Junior Securities) or other property upon conversion of a Note shall be deemed to constitute payment on account of the principal of such Note. For the purposes of this Section 15.08, the term “Junior Securities” means (1)
shares of any stock of any class of the Company or (2) securities of the Company which are subordinated in right of payment to all Senior Indebtedness which may be outstanding at the time of issuance or delivery of such securities to substantially
the same extent as, or to a greater extent than, the Notes are so subordinated as provided in this Article 15. Nothing contained in this Article 15 or elsewhere in this Indenture or in the Notes is intended to or shall impair, as among the Company,
its creditors other than holders of Senior Indebtedness and the Noteholders, the right, which is absolute and unconditional, of the Noteholders to convert such Notes in accordance with Article 14. 
  
 Section 15.09. Article Applicable to Paying Agents. If at any time any
Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term “Trustee” as used in this Article shall (unless the context otherwise requires) be construed as extending to and including
such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition to or in place of the Trustee; provided, however, that the first paragraph of Section 15.05 shall
not apply to the Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent. 
  

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 Section 15.10. Senior Indebtedness Entitled to Rely. The holders of Senior Indebtedness shall have
the right to rely upon this Article 15, and no amendment or modification of the provisions of this Article 15 that adversely affect the rights and interests of such holders shall be effective as to such holders unless such holders shall have agreed
in writing thereto. Each Noteholder by accepting a Note acknowledges and agrees that the provisions of Article 15 are, and are intended to be, an inducement and consideration to each holder of Senior Indebtedness (whether such Senior Indebtedness
was acquired or created before or after the issuance of the Notes) to acquire and hold, or to continue to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on the provisions of this
Article15 in acquiring and continuing to hold such Senior Indebtedness. 
  
 Section 15.11. Reinstatement. To the extent the payment of or distribution in respect of any Senior Indebtedness (whether by or on behalf of the Company as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent or similar Person under any bankruptcy, insolvency, receivership, fraudulent conveyance or similar law,
then if such payment or distribution is recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent or similar Person, the Senior Indebtedness or part thereof originally intended to be satisfied shall be deemed to
be reinstated and outstanding as if such payment had not occurred. 
  
 Section 15.12. Actions by Holders of Senior Indebtedness. The holders of the Senior Indebtedness may, at any time and from time to time, without the consent of or notice to the Trustee or the Noteholders, without incurring
responsibility to the Noteholders and without impairing or releasing the subordination provided in this Indenture or the obligations of the Noteholders hereunder to the holders of the Senior Indebtedness, do any one or more of the following:

  
 (a) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, the Senior Indebtedness or any instrument evidencing the same or any agreement under which any Senior Indebtedness is outstanding or secured; 
  
 (b) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise secured; 
  
 (c) release any Person liable in any manner for the collection of Senior Indebtedness; 
  
 (d) exercise or refrain from exercising any rights against the Company or any other Person; and 
  
 (e) take any other action in the reasonable business
judgment of the holders of Senior Indebtedness. 
  
 ARTICLE 16

 CONTINGENT INTEREST 
  

Section 16.01. Contingent Interest. Additional interest (“Contingent Interest”) will accrue on each Note beginning with the
period commencing on November 8, 2011 and ending on 
  

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 April 30, 2012, and for each of the six-month periods thereafter commencing on May 1, 2012, if the average Trading Price
of the Notes during the Applicable Five-Day Trading Period with respect to such Interest Period equals or exceeds 120% of the principal amount of the Notes. If Contingent Interest accrues during an Interest Period pursuant to the preceding sentence,
the amount of Contingent Interest payable with respect to such Interest Period per $1,000 principal amount of Notes shall equal an annual rate of 0.25% of the average Trading Price during the Applicable Five-Day Trading Period with respect to such
Interest Period. 
  
 The Trustee’s sole responsibility
pursuant to this Section 16.01 shall be to obtain the Trading Price of the Notes for each Trading Day during the Applicable Five-Day Trading Period and to provide such information to the Company. The Company shall determine whether holders are
entitled to receive Contingent Interest, and if so, provide notice pursuant to Section 16.03. Notwithstanding any term contained in this Indenture or any other document to the contrary, the Trustee shall have no responsibilities, duties or
obligations for or with respect to (i) determining whether the Company must pay Contingent Interest or (ii) determining the amount of Contingent Interest, if any, payable by the Company. 
  
 Section 16.02. Payment of Contingent Interest. Contingent Interest for any Interest Period shall be paid on the
immediately succeeding Interest Payment Date to the Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the close of business on the corresponding Regular Record Date. Contingent Interest due under this
Article 16 shall be treated for all purposes of this Indenture like any other Interest accruing on the Notes. 
  
 Section 16.03. Contingent Interest Notification. No later than the first Business Day of an Interest Period for which Contingent Interest will be
payable, the Company will issue a press release stating that Contingent Interest will be paid on the Notes and identifying the Interest Period. 
  
 ARTICLE 17 
 MISCELLANEOUS
PROVISIONS 
  
 Section 17.01. 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 17.02. Official Acts by Successor Company. 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 17.03. 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
Quicksilver Resources Inc., 777 West Rosedale Street, Suite 300, Fort Worth, Texas 76104, Telecopier No.: (817) 665-5016, Attention: Treasurer, or at any other address previously furnished in writing to 
  

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 the Trustee by the Company. 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 to the Corporate Trust Office,
600 Travis Street, Suite 1150, Houston, Texas 77002, Attention: Corporate Trust Department. 
  
 The Trustee, by notice to the Company, may designate additional or different addresses for subsequent notices or communications. 
  

Any notice or communication mailed to a Noteholder shall be mailed to him by first class mail, postage prepaid, at his address as it appears on the
Note Register and shall be sufficiently given to him if so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Noteholder or any defect in it shall not affect its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the manner provided above, it
is duly given, whether or not the addressee receives it. 
  
 Section 17.04. Governing Law. This Indenture and each Note shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York.

  
 Section 17.05. 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 such Officers’ Certificates and
Opinions of Counsel as may be required by the Trust Indenture Act. 
  
 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 17.06. 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 or any Repurchase Date or Interest Payment Date with respect
to 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 or the Repurchase Date or the Interest Payment Date, as the case may be, and in the case of a Redemption Date or Repurchase Date, no interest shall accrue for the period from and after such date. If Interest is paid on the
Interest Payment Date, then the amount of accrued and unpaid Interest as of such date shall be zero for purposes of all calculations on such Interest Payment Date. 
  
 Section 17.07. Company Responsible for Making Calculations. The Company will be responsible for making all
calculations called for under the Notes (except with respect to 
  

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 calculations of the Trading Price required to be made by the Trustee in accordance with Section 14.01(a) and Section
16.01). These calculations include, but are not limited to, determination of the Current Market Price, Closing Price, Trading Price and Spin-off Market Price, the amount of accrued and unpaid Interest payable on the Notes and the Conversion Rate of
the Notes. 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 Officers’ 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 Noteholder upon the request of such Noteholder. 
  
 Section 17.08. 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 unless otherwise required by law, notwithstanding the foregoing, this Indenture and the Notes issued hereunder shall not be subject to the
provisions of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the Trust Indenture Act as now in effect or as hereafter amended or modified; provided further that this Section 17.08 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 the Indenture that any such
qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in
an indenture qualified under the Trust Indenture Act, such required provision shall control. 
  
 Section 17.09. No Security Interest Created. Except as provided in Section 7.07, nothing in this Indenture or in the Notes, expressed or implied, shall be construed to constitute a security interest under the
Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction in which property of the Company or its subsidiaries is located. 
  
 Section 17.10. Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to
any Person, other than the parties hereto, the holders of Senior Indebtedness, 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 17.11. 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
17.12. 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, without limitation, under Sections 2.04, 2.05, 2.06, 2.07, 3.02, 3.03 and 3.08, 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 
  

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 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 7.10. 
  
 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 17.12, 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. 
  
 Any authenticating agent may at any
time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and to the
Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating
agent or itself assume the duties and obligations of the former authenticating agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor
authenticating agent to the Company and shall mail notice of such appointment of a successor authenticating agent to all holders of Notes as the names and addresses of such holders appear on the Note Register. 
  
 The Company agrees to pay to the authenticating agent from time to time such
reasonable compensation for its services as shall be agreed upon in writing between the Company and the authenticating agent. 
  
 The provisions of Sections 7.02, 7.03, 7.04 and 8.03 and this Section 17.12 shall be applicable to any authenticating agent. 
  
 Section 17.13. 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 17.14. 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. 
  
 JPMorgan Chase Bank hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein above set forth. 

 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 

 89 

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

			
	 QUICKSILVER RESOURCES INC.

		
	 By:
	 	 /s/ Bill Lamkin

	 	 	 Bill Lamkin

	 	 	 Executive Vice President and
 Chief Financial Officer

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

			
	 JPMORGAN CHASE BANK, as Trustee

		
	 By:
	 	 /s/ Carol Logan

	 	 	 Carol Logan

	 	 	 Vice President and Trust Officer

 EXHIBIT A 
  

[FORM OF NOTE] 
  
 [Include only for Global Notes:] 
  
 [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
“DEPOSITARY”, WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITORY FOR THE CERTIFICATES) TO QUICKSILVER RESOURCES INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
  
 [Include only for Notes that are Restricted Securities] 
  
 [THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT (“RULE 144A”)); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH
SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO QUICKSILVER RESOURCES INC. (THE “ISSUER”), (B)
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), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN
COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE 
  

 A-1 

 ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE
THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR UPON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).] 
  
 THIS SECURITY IS SUBJECT TO UNITED STATES FEDERAL INCOME TAX REGULATIONS GOVERNING CONTINGENT
PAYMENT DEBT INSTRUMENTS. FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE DATE OF THIS SECURITY IS NOVEMBER 1, 2004 AND THE COMPARABLE YIELD OF THIS SECURITY IS 6.75%, COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE
TREATED AS THE YIELD TO MATURITY FOR UNITED STATES FEDERAL INCOME TAX PURPOSES). 
  
 THE ISSUER AGREES, AND BY ACCEPTING A BENEFICIAL OWNERSHIP INTEREST IN THIS SECURITY EACH HOLDER AND ANY BENEFICIAL OWNER OF THIS SECURITY WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (1) TO TREAT THIS
SECURITY AS A DEBT INSTRUMENT THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE “CONTINGENT PAYMENT REGULATIONS”), (2) TO TREAT THE FAIR MARKET VALUE OF ANY COMMON STOCK RECEIVED UPON ANY CONVERSION OF THIS SECURITY OR UPON A PURCHASE OF
THIS SECURITY AT THE HOLDER’S OPTION AS A CONTINGENT PAYMENT FOR PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, AND (3) TO ACCRUE INTEREST WITH RESPECT TO THE SECURITY AS ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES
ACCORDING TO THE “NONCONTINGENT BOND METHOD,” SET FORTH IN THE CONTINGENT PAYMENT REGULATIONS, AND TO BE BOUND BY THE ISSUER’S DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE,” WITHIN THE
MEANING OF THE CONTINGENT PAYMENT REGULATIONS, WITH RESPECT TO THIS SECURITY. THE ISSUER AGREES TO PROVIDE PROMPTLY TO THE HOLDER OF THIS SECURITY, UPON WRITTEN REQUEST, THE ISSUE PRICE, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED
PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD BE SENT TO THE ISSUER AT THE FOLLOWING ADDRESS: QUICKSILVER RESOURCES INC., 777 WEST ROSEDALE STREET, SUITE 300, FORT WORTH, TEXAS 76104, ATTENTION: TREASURER. 
  
 THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT
DATED AS OF NOVEMBER 1, 2004 AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT. 
  

 2 

 QUICKSILVER RESOURCES INC. 
  
 1.875% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2024 
  
 CUSIP: 74837RAA2 
  

			
	 No.
                        
	  	$                        

  
 Quicksilver Resources
Inc., 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 of                      DOLLARS] [the
principal sum of                      DOLLARS or such lesser amount as set forth on Schedule I hereto]1 on November 1, 2024 at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or
currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay Interest, semiannually on May 1 and November 1 of each year, commencing May 1, 2005, on said principal
sum at said office or agency, in like coin or currency, at the rate per annum of 1.875%, from the May 1 or November 1, as the case may be, next preceding the date of this Note to which Interest has been paid or duly provided for, unless the date
hereof is a date to which Interest has been paid or duly provided for, in which case from the date of this Note, or unless no Interest has been paid or duly provided for on the Notes, in which case from November 1, 2004 until payment of said
principal sum has been made or duly provided for. Notwithstanding the foregoing, if the date hereof is after any April 15 or October 15, as the case may be, and before the following May 1 or November 1, this Note shall bear Interest from such May 1
or November 1; provided that if the Company shall default in the payment of Interest due on such May 1 or November 1, then this Note shall bear Interest from the next preceding May 1 or November 1 to which Interest has been paid or duly provided
for; and provided further that if no Interest has been paid or duly provided for on this Note, then this Note shall bear Interest from November 1, 2004. Contingent Interest, if any, will accrue for any applicable Interest Period and be payable to
holders of this Note on the applicable Interest Payment Date to the Person in whose name this Note is registered on the corresponding record date. Except as otherwise provided in the Indenture, the Interest payable on the Note pursuant to the
Indenture on any May 1 or November 1 will be paid to the Person entitled thereto as it appears in the Note Register at the close of business on the Regular Record Date, which shall be the April 15 or October 15 (whether or not a Business Day) next
preceding such May 1 or November 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 (or, upon written notice from the registered holder hereof, by wire transfer in immediately available funds, if such Person is entitled to Interest
on Notes with 
  

	1	For Global Notes only. 

  

 3 

 
an aggregate principal amount in excess of $5,000,000) or (ii) on any Global Note by wire transfer of immediately available funds to the account of the
Depositary or its nominee. 
  
 The Company promises to pay
Interest on overdue principal and (to the extent that payment of such Interest is enforceable under applicable law) Interest at the rate of 1.875% per annum, compounded semi-annually. 
  
 Reference is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation,
provisions giving the holder of this Note the right to convert this Note into Common Stock on the terms and subject to the limitations referred to on the reverse hereof and as more fully specified in the Indenture. Under the circumstances described
in the Indenture, the Company may fulfill all or any portion of its Conversion Obligation in cash. Such further provisions of the Indenture shall for all purposes have the same effect as though fully set forth at this place. 
  
 This Note shall be deemed to be a contract made under the laws of the State
of New York, and for all purposes shall be construed in accordance with and governed by the laws of the State of New York. 
  
 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. 
  

 4 

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

			
	 QUICKSILVER RESOURCES INC.

		
	 By:
	 	  

  

 5 

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

			
	 JPMORGAN CHASE BANK,

	             as Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory
	 	 	, or
		
	 By:
	 	  

	 	 	As Authenticating Agent
	 	 	(if different from Trustee)
		
	 By:
	 	  

	 	 	Authorized Signatory

  

 6 

 FORM OF REVERSE OF NOTE 
  
 QUICKSILVER RESOURCES INC. 
  
 1.875% CONVERTIBLE SUBORDINATED DEBENTURE DUE 2024 
  
 This Debenture is one of a duly authorized issue of Debentures of the Company, designated as its 1.875% Convertible Subordinated Debentures due 2024
(herein called the “Notes”), limited in aggregate principal amount to $150,000,000, issued and to be issued under and pursuant to an Indenture dated as of November 1, 2004 (herein called the “Indenture”), among the
Company and JPMorgan Chase Bank, 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 at least 25% in principal amount
of the Notes then outstanding as determined as provided in Section 8.04 of the Indenture, 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 as determined as provided in Section 8.04 of the Indenture, to execute supplemental indentures adding any provisions to or
changing in any manner or eliminating any of the provisions of the Indenture or any supplemental indenture or modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall (i) reduce the principal
amount of or change the Stated Maturity of any Note, (ii) reduce the rate or extend the time of payment of Interest on this Note, (iii) reduce any amount payable on redemption or repurchase of this Note (including upon the occurrence of a Change of
Control) or change the time at which or the circumstances under which this Note may or shall be redeemed or repurchased (subject to the immediately succeeding sentence), (iv) impair the right of any Noteholder to institute suit for the payment on
this Note, (v) make the principal or Interest of this Note payable in any coin or currency other than that provided in this Note, (vi) impair the right to convert this Note into Common Stock or cash or a combination thereof subject to the terms set
forth in the Indenture, (vii) reduce the number of shares of Common Stock or other property receivable upon conversion, (viii) modify any of the provisions of Section 10.02 or Section 6.05 of the Indenture, 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, (ix) 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 of the Indenture, (x) reduce the quorum or voting requirements set forth in Article 9 of the Indenture, (xi) make any change in Article 15 of the Indenture that adversely affects the rights of any Noteholder under
Article 15 of the Indenture, or (xii) 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 determined as provided
in Section 8.04 of the Indenture. Notwithstanding the immediately preceding sentence, the Company and the Trustee, with the consent of the holders 
  

 7 

 of at least a majority in aggregate principal amount of the Notes at the time outstanding determined as provided in
Section 8.04 of the Indenture, may waive or modify Section 3.05 of the Indenture relative to the Company’s obligation to make an offer to repurchase the Notes as a result of a Change of Control (other than reducing the Change of Control
Repurchase Price which can only be modified with 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 then outstanding determined
in accordance with Section 8.04 of the Indenture by notice to the Trustee may on behalf of the holders of all of the Notes waive an existing Default under the Indenture and its consequences except (A) a default in the payment of Interest on, or the
principal of, the Notes, (B) a failure by the Company to convert any Notes into Common Stock or settle such conversion in cash or a combination of cash and Common Stock, (C) a default in the payment of the Redemption Price pursuant to Section 3.03
of the Indenture, (D) a default in the payment of the Change of Control Repurchase Price pursuant to Section 3.05 of the Indenture or Company Repurchase Price pursuant to Section 3.06 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 action taken 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 of any Notes issued in exchange or substitution hereof, irrespective of whether any notation in regard
thereto is made upon this Note or any Notes issued in exchange or substitution herefor. 
  
 No reference herein to the Indenture and no provision of this Note or of the Indenture is intended to or shall impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and Interest on this Note as and when the same shall become due and payable in accordance with their terms. 
  
 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 of transfer or exchange of Notes, Notes may be exchanged for a like aggregate principal
amount of Notes of any other authorized denominations. 
  
 At any
time on or after November 8, 2011 and prior to maturity, the Company, at its option, may redeem the Notes, in whole or in part, for cash upon mailing a notice of such redemption not fewer than 30 days nor more than 60 days prior to the Redemption
Date to each holder of Notes so to be redeemed at its last registered address, all as provided in the Indenture, at a Redemption Price equal to 100% of the principal amount of Notes to be redeemed together with any accrued and unpaid Interest on the
Notes to (but excluding) the Redemption Date; provided that if the Redemption Date is a May 1 or November 1, then the Interest payable on such date shall be paid to the holder of record on the immediately preceding April 15 or October 15,
respectively. 
  

 8 

 In no event will any Note be redeemable at the option of the Company before November 8, 2011. 

 
 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 Change of Control occurs at any time prior to maturity, the holder of this Note shall have the right, at such holder’s option, to require the
Company to repurchase all or any portion of such holder’s Notes not previously called for redemption on a Change of Control Repurchase Date specified by the Company, which shall be no earlier than 30 days nor later than 60 days after the date
of the Change of Control, at a Change of Control Repurchase Price equal to 100% of the principal amount thereof, plus any accrued and unpaid Interest to (but excluding) the Change of Control Repurchase Date; provided that if such Change of Control
Repurchase Date falls on an Interest Payment Date, the Interest payable on such Interest Payment Date shall be paid to the holder of record of this Note on the immediately preceding April 15 or October 15, respectively. The Notes will be redeemable
in multiples of $1,000 principal amount. In the event that at the time of such Change of Control the terms of the Senior Indebtedness restrict or prohibit the repurchase of Notes upon a Change of Control, then prior to the mailing of the notice to
holders provided for below but in any event within 45 days following any Change of Control, the Company shall (i) repay in full all Senior Indebtedness or, if doing so will allow the repurchase of Notes, offer to repay in full all Senior
Indebtedness and repay the Senior Indebtedness of each lender or holder, as applicable, who has accepted such offer or (ii) obtain the requisite consent under the agreements governing the Senior Indebtedness to permit the repurchase of the Notes as
provided for in Section 3.05 of the Indenture. The Company shall mail to all holders of record of the Notes a notice of the occurrence of a Change of Control and of the repurchase right arising as a result thereof on or before the 45th day following
the occurrence of such Change of Control. For a Note to be so repurchased at the option of the holder, the Company must receive at the Corporate Trust Office of the Trustee or any other office or agency of the Company maintained for that purpose in
accordance with the terms of the Indenture, such Note with the form entitled “Form of Change of Control Repurchase Election” on the reverse thereof duly completed, together with such Note, duly endorsed for transfer, before the close of
business on the Business Day immediately preceding the Change of Control Repurchase Date. Notwithstanding the foregoing provisions of this paragraph, the Company shall not be required to make a Change of Control Repurchase Offer upon a Change of
Control if a third party makes the Change of Control Repurchase Offer in the manner, at the times and otherwise in compliance with the requirements set forth in Section 3.05(b) of the Indenture applicable to a Change of Control Repurchase Offer made
by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Repurchase Offer. 
  
 Subject to the terms and conditions of the Indenture, the holder of this Note shall have the right, at such holder’s option, to require the Company
to repurchase all or any portion of the Notes held by such holder on November 1, 2011, November 1, 2014 and November 1, 2019 in integral multiples of $1,000 at a Company Repurchase Price of 100% of the principal amount, plus any accrued and unpaid
Interest on such Notes to (but excluding) the Company Repurchase Date. To exercise such right, a holder shall deliver to the Company such Notes with the form 
  

 9 

 entitled “Form of Company Repurchase Election” on the reverse thereof duly completed, together with the Notes,
duly endorsed for transfer, at any time from the opening of business on the date that is 15 Business Days immediately preceding the Company Repurchase Date until the close of business on the Business Day immediately preceding the Company Repurchase
Date, and shall deliver the Notes to the Trustee (or other Paying Agent appointed by the Company) as set forth in the Indenture. 
  
 The Company Repurchase Price shall be paid in cash. 
  
 Holders have the right to withdraw any Repurchase Election 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 Repurchase Date, all as provided in the Indenture. 
  
 If cash sufficient to pay the Repurchase Price with respect to all Notes or portions thereof to be repurchased as of any Repurchase Date is deposited with
the Trustee (or other Paying Agent appointed by the Company), then at the close of business on the Business Day immediately preceding such Repurchase Date, Interest will cease to accrue on such Notes (or portions thereof), and the holder thereof
shall have no other rights as such other than the right to receive the Repurchase Price for the portion of the Notes being repurchased upon surrender of such Notes and the issuance of new Notes for any portion not repurchased. 
  
 Subject to the occurrence of certain events and in compliance with the
provisions of the Indenture, prior to the Stated Maturity of the Notes, the holder hereof has the right, at its option, to convert each $1,000 principal amount of the Notes into shares of Common Stock subject to adjustment from time to time as
provided in the Indenture, upon surrender of this Note with the form entitled “Form of Conversion Notice” on the reverse hereof duly completed, to the Company at the office or agency of the Company maintained for that purpose in accordance
with the terms of the Indenture, or at the option of such holder, the Corporate Trust Office, and, unless the shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied by instruments of transfer
in form satisfactory to the Company duly executed by, the holder or by his duly authorized attorney. The Company will notify the holder thereof of any event triggering the right to convert the Notes as specified above in accordance with the
Indenture. 
  
 If any of the following events occur, namely (i)
any reclassification or change of the outstanding shares of Common Stock (other than a subdivision or combination to which Section 14.05(c) of the Indenture applies) or (ii) the Company consolidates with or merges with or into another Person or is a
party to a consolidation, merger, binding share exchange or conveys, transfers, sells, leases or otherwise disposes of all or substantially all of its properties and assets and, in each case, pursuant to which all or substantially all of the
Company’s Common Stock or assets are exchanged for, converted into, acquired for or constitute solely the right to receive cash, securities or other property, the right to convert a Note into Common Stock, cash or a combination of cash and
Common Stock may be changed into a right to convert it into cash, securities or other property of the Company or such other Person, in each case in accordance with the Indenture. 
  

 10 

 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 and has not been called for redemption by the Company on a Redemption Date that occurs during such period, 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 or a Change of Control Repurchase Date that is after a record date and prior to the next Interest Payment Date or (2) 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 Change of Control or repurchase on a Repurchase Date may be converted only if such holder withdraws its election to exercise such repurchase 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 second 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 and unpaid Interest to, but excluding, the Redemption Date, by one or more investment banks or other purchasers who may agree with the Company (i) to purchase such Notes from the holders thereof and convert
them into cash 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, 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. 
  
 Upon due presentment for registration of transfer of this Note at the Corporate Trust Office or other 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 a like 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 
  

 11 

 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, premium, if any, or Interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer or director or
subsidiary, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 
  
 The Company agrees, and by acceptance of a Note, each beneficial holder of a Note will be deemed to have agreed to treat the
Notes as indebtedness of the Company for U.S. federal income tax purposes that are subject to the regulations governing contingent payment debt instruments and to be bound (in the absence of an administrative determination or judicial ruling to the
contrary) by the Company’s determination of the comparable yield and projected payment schedule within the meaning of the regulations governing contingent payment debt instruments. A holder of Notes may obtain the issue price, issue date, yield
to maturity, comparable yield and projected payment schedule for the Notes, determined by the Company pursuant to Treas. Reg. Sec. 1.1275-4, by submitting a written request for it to the Company at the following address: Quicksilver Resources Inc.,
777 West Rosedale Street, Suite 300, Fort Worth, Texas 76104, Attention: Treasurer. 
  
 Terms used in this Note and defined in the Indenture are used herein as therein defined. 
  

 12 

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

					
	 TEN COM -
	 	as tenants in common	 	UNIF GIFT MIN ACT -          Custodian         
	 TEN ENT-
	 	as tenant by the entireties	 	(Cust)         (Minor)
	 JT TEN -
	 	as joint tenants with right of survivorship	 	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. 
  

 13 

 FORM OF 
  
 CONVERSION NOTICE 
  

	TO:	QUICKSILVER RESOURCES INC. 

 JPMORGAN CHASE BANK

  
 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 Common Stock, or if applicable, cash, in accordance with the terms of the Indenture referred to in this
Note, and directs that the shares of Common Stock or cash payable and deliverable upon such conversion, together with 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 such shares of Common Stock or cash or any portion of this Note not converted are to be
payable or 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, if any, accompanies this Note. 
  
 Dated:
                     
  

	
	  

	
	  

	Signature(s)

  
  

 14 

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

	 Signature Guarantee

  
 Fill in the
amount of Common Stock of the Company and Notes if to be delivered other than to and in the name of the registered holder: 
  

	
	

	 (Name)

	  

	 (Street Address)

	  

	 (City, State and Zip Code)

	  

	 Please print name and address

	
	 Principal amount to be converted
 (if less than all):

	
	 $

	
	Social Security or Other TaxpayerIdentification Number:
	  

  

 15 

 FORM OF 
 CHANGE OF CONTROL REPURCHASE ELECTION 
  

	TO:	QUICKSILVER RESOURCES INC. 

 JPMORGAN CHASE BANK

  
 The undersigned registered owner of this Note hereby
irrevocably acknowledges receipt of a notice from Quicksilver Resources Inc. (the “Company”) as to the occurrence of a Change of Control with respect to the Company and requests and instructs the Company to repurchase the entire
principal amount of this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Note at the price of 100% of such entire principal amount or portion
thereof, together with accrued and unpaid Interest to, but excluding, the Change of Control 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. 
  
 Dated:
                     
  

	
	  

	  

	Signature(s)

  

 16 

 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: 
  

 17 

 FORM OF 
 COMPANY REPURCHASE ELECTION 
  

	TO:	QUICKSILVER RESOURCES INC. 

 JPMORGAN CHASE BANK

  
 The undersigned registered owner of this Note hereby
irrevocably acknowledges receipt of a notice from Quicksilver Resources Inc. (the “Company”) regarding the right of holders to elect to require the Company to repurchase the Notes and requests and instructs the Company to repay the
entire principal amount of this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance with the terms of the Indenture at the price of 100% of such entire principal amount or portion thereof,
together with accrued and unpaid Interest to, but excluding, the Company 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 Company Repurchase Date pursuant to the terms and conditions specified in the Indenture. 
  
 Dated:
                                       
      
  

	
	  

	  

	Signature(s)

  

 18 

 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: 
  

 19 

 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(k) 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 or is a subsequent transfer of a Note so transferred), the undersigned confirms that such Note is being transferred: 
  
 To Quicksilver Resources Inc. or a subsidiary thereof; or 
  
 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 Quicksilver Resources Inc. 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:
                     
  

	
	  

	  

	Signature(s)

  

 20 

	
	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 Change of Control Repurchase Election, the Company Repurchase Election 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. 
  

 21 

 Schedule I 
  
 [Include Schedule I only for a Global Note] 
  
 QUICKSILVER RESOURCES INC. 
 1.875% Convertible
Subordinated Debenture due 2024 
  
 No.
                             
  

							
	Date	 	Principal Amount	 	 Notation
Explaining Principal
 Amount Recorded
	 	 Authorized
 Signature of trustee
 or Custodian

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

 22 

 SCHEDULE I 
  

The following table sets forth the Stock Prices and the number of Additional Shares to be issuable per $1,000 principal amount of Notes: 
  

																															
	 	 	Stock Price

	 Effective Date

	 	$32.17

	 	$35.15

	 	$38.40

	 	$41.96

	 	$45.84

	 	$50.08

	 	$54.72

	 	$59.78

	 	$65.32

	 	$71.37

	 	$77.97

	 	$85.19

	 	$93.07

	 	$101.69

	 	$111.10

	 November 1, 2004
	 	9.5	 	8.1	 	7.0	 	6.0	 	5.1	 	4.4	 	3.6	 	3.1	 	2.6	 	2.2	 	1.8	 	1.5	 	1.2	 	1.0	 	0.8
	 November 1, 2005
	 	9.3	 	7.9	 	6.8	 	5.7	 	4.8	 	4.1	 	3.4	 	2.8	 	2.4	 	2.0	 	1.6	 	1.3	 	1.1	 	0.9	 	0.7
	 November 1, 2006
	 	9.2	 	7.7	 	6.6	 	5.5	 	4.5	 	3.8	 	3.2	 	2.6	 	2.2	 	1.7	 	1.4	 	1.2	 	0.9	 	0.7	 	0.6
	 November 1, 2007
	 	9.1	 	7.5	 	6.3	 	5.3	 	4.3	 	3.5	 	2.9	 	2.3	 	1.9	 	1.5	 	1.2	 	1.0	 	0.8	 	0.6	 	0.5
	 November 1, 2008
	 	9.0	 	7.4	 	6.1	 	4.9	 	3.9	 	3.2	 	2.5	 	2.0	 	1.5	 	1.2	 	0.9	 	0.7	 	0.6	 	0.4	 	0.3
	 November 1, 2009
	 	8.9	 	7.2	 	5.8	 	4.5	 	3.4	 	2.7	 	2.1	 	1.5	 	1.1	 	0.9	 	0.6	 	0.4	 	0.3	 	0.2	 	0.2
	 November 1, 2010
	 	8.8	 	6.9	 	5.3	 	3.9	 	2.7	 	2.1	 	1.4	 	0.9	 	0.6	 	0.4	 	0.2	 	0.1	 	0.1	 	0.1	 	0.0
	 November 1, 2011
	 	6.1	 	4.4	 	3.1	 	1.5	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0	 	0.0Amended and Restated Preferred Stock Rights Agreement

 Exhibit 4.2 
  

EPICOR SOFTWARE CORPORATION 
  
 and 
  
 MELLON INVESTOR SERVICES LLC 
  
 as Rights Agent 
  
 AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT 
  
 Dated as of October 27, 2004 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	Section 1.	  	Certain Definitions	  	1
			
	Section 2.	  	Appointment of Rights Agent	  	7
			
	Section 3.	  	Issuance of Rights Certificates	  	7
			
	Section 4.	  	Form of Rights Certificates	  	9
			
	Section 5.	  	Countersignature and Registration	  	10
			
	Section 6.	  	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	  	11
			
	Section 7.	  	Exercise of Rights; Exercise Price; Expiration Date of Rights	  	12
			
	Section 8.	  	Cancellation and Destruction of Rights Certificates	  	14
			
	Section 9.	  	Reservation and Availability of Preferred Shares	  	14
			
	Section 10.	  	Record Date	  	15
			
	Section 11.	  	Adjustment of Exercise Price, Number of Shares or Number of Rights	  	16
			
	Section 12.	  	Certificate of Adjusted Exercise Price or Number of Shares	  	22
			
	Section 13.	  	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	  	23
			
	Section 14.	  	Fractional Rights and Fractional Shares	  	26
			
	Section 15.	  	Rights of Action	  	27
			
	Section 16.	  	Agreement of Rights Holders	  	28
			
	Section 17.	  	Rights Certificate Holder Not Deemed a Stockholder	  	28
			
	Section 18.	  	Concerning the Rights Agent	  	29
			
	Section 19.	  	Merger or Consolidation or Change of Name of Rights Agent	  	29
			
	Section 20.	  	Duties of Rights Agent	  	30
			
	Section 21.	  	Change of Rights Agent	  	32

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

	Section 22.	  	Issuance of New Rights Certificates	  	33
			
	Section 23.	  	Redemption	  	34
			
	Section 24.	  	Exchange	  	34
			
	Section 25.	  	Notice of Certain Events	  	36
			
	Section 26.	  	Notices	  	37
			
	Section 27.	  	Supplements and Amendments	  	37
			
	Section 28.	  	Successors	  	38
			
	Section 29.	  	Determinations and Actions by the Board of Directors, etc	  	38
			
	Section 30.	  	Benefits of this Agreement	  	38
			
	Section 31.	  	Severability	  	39
			
	Section 32.	  	Governing Law	  	39
			
	Section 33.	  	Counterparts	  	39
			
	Section 34.	  	Descriptive Headings	  	39
			
	EXHIBITS	  	 	  	 
			
	Exhibit A	  	Form of Rights Certificate	  	 
			
	Exhibit B	  	Summary of Rights	  	 

  

 -iii- 

 AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT 
  
 This Amended and Restated Preferred Stock Rights Agreement (this
“Agreement”), is dated as of October 27, 2004, between Epicor Software Corporation (the “Company”), a Delaware corporation, and Mellon Investor
Services LLC, a New Jersey limited liability company, as rights agent (the “Rights Agent”). 
  
 WHEREAS, on April 1, 1994, the Company and First Interstate Bank of California entered into a Preferred Shares Rights Agreement, which was amended and
restated on November 13, 2001 between the Company and Mellon Investor Services LLC, as successor rights agent (the “Prior Agreement”), which was attached as Exhibit 4.2 to Amendment 1 to a registration statement on Form 8-A/A
filed with the Securities and Exchange Commission on November 21, 2001 to register the Rights; 
  
 WHEREAS, on March 9, 1994, (the “Rights Dividend Declaration Date”), the Board of Directors of the Company authorized and declared a dividend of one Preferred Share Purchase Right (a
“Right”) for each Common Share (as hereinafter defined) of the Company outstanding as of the Close of Business (as hereinafter defined) on April 14, 1994 (the “Record Date”), each Right representing
the right to purchase one one-hundredth (0.01) of a share of Series A Junior Participating Preferred Stock (as such number may be adjusted pursuant to the provisions of this Agreement), having the rights, preferences and privileges set forth in the
form of Certificate of Designations of Rights, Preferences and Privileges of Series A Junior Participating Preferred Stock filed with the Secretary of the State of Delaware concurrent to the adoption of the Prior Agreement, upon the terms and
subject to the conditions therein set forth, and further authorized and directed the issuance of one Right (as such number may be adjusted pursuant to the provisions of this Agreement) with respect to each Common Share that shall become outstanding
between the Record Date and the earlier of the Distribution Date and the Expiration Date (as such terms are hereinafter defined), and in certain circumstances after the Distribution Date; 
  
 WHEREAS, the Board of Directors of the Company deems it desirable and in the best interests of the Company and its
stockholders to amend and restate the Prior Agreement, and has determined that, pursuant to Section 27 of the Prior Agreement, the Prior Agreement may be amended and restated by the Company and the Rights Agent without the approval of the holders of
the Rights; 
  
 NOW, THEREFORE, in consideration of the promises
and the mutual agreements herein set forth, the parties hereby agree as follows: 
  
 Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
  
 (a) “Acquiring Person” shall mean any Person, who or which, together with all Affiliates and Associates of such Person, shall be
the Beneficial Owner of 15% or more of the 

 Common Shares then outstanding, but shall not include the Company, any Subsidiary of the Company or any employee benefit
plan of the Company or of any Subsidiary of the Company, or any entity holding Common Shares for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall be deemed to be an Acquiring Person as the result of an
acquisition of Common Shares by the Company which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 15% or more of the Common Shares of the Company then outstanding;
provided, however, that if a Person shall become the Beneficial Owner of 15% or more of the Common Shares of the Company then outstanding by reason of share purchases by the Company and shall, after such share purchases by the Company,
become the Beneficial Owner of any additional Common Shares of the Company (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or pursuant to a split or subdivision of the
outstanding Common Shares), then such Person shall be deemed to be an Acquiring Person unless upon becoming the Beneficial Owner of such additional Common Shares of the Company such Person does not beneficially own 15% or more of the Common Shares
of the Company then outstanding. Notwithstanding the foregoing, (i) if the Company’s Board of Directors determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), has become such inadvertently (including, without limitation, because (A) such Person was unaware that it beneficially owned a percentage of the Common Shares that would otherwise cause such Person to be an
“Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), or (B) such Person was aware of the extent of the Common Shares it beneficially owned but had no actual knowledge of the consequences of such
beneficial ownership under this Agreement) and without any intention of changing or influencing control of the Company, and if such Person divested or divests as promptly as practicable a sufficient number of Common Shares so that such Person would
no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), then such Person shall not be deemed to be or to have become an “Acquiring Person” for any purposes of this Agreement; and
(ii) if, as of the date hereof, any Person is the Beneficial Owner of 15% or more of the Common Shares outstanding, such Person shall not be or become an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph
(a), unless and until such time as such Person shall become the Beneficial Owner of additional Common Shares (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Shares in Common Shares or pursuant
to a split or subdivision of the outstanding Common Shares), unless, upon becoming the Beneficial Owner of such additional Common Shares, such Person is not then the Beneficial Owner of 15% or more of the Common Shares then outstanding. 

 
 (b) “Adjustment Fraction” shall have the meaning
set forth in Section 11(a)(i) hereof. 
  
 (c)
“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date of this
Agreement. 
  

 -2- 

 (d) A Person shall be deemed the “Beneficial Owner” of and shall be deemed to
“beneficially own” any securities: 
  
 (i) which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly, for purposes of Section 13(d) of the Exchange Act and Rule 13d-3 thereunder (or any comparable or successor law or
regulation); 
  
 (ii) which such Person or any of such
Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and
between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise;
provided, however, that a Person shall not be deemed pursuant to this Section 1(d)(ii)(A) to be the Beneficial Owner of, or to beneficially own, (1) securities tendered pursuant to a tender or exchange offer made by or on behalf of
such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange, or (2) securities which a Person or any of such Person’s Affiliates or Associates may be deemed to have the
right to acquire pursuant to any merger or other acquisition agreement between the Company and such Person (or one or more of its Affiliates or Associates) if such agreement has been approved by the Board of Directors of the Company prior to there
being an Acquiring Person; or (B) the right to vote pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security under this
Section 1(d)(ii)(B) if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations of the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
  
 (iii) which are beneficially owned, directly or indirectly, by any other
Person (or any Affiliate or Associate thereof) with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding, whether or not in writing (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by the proviso to Section 1(d)(ii)(B)) or disposing of any securities
of the Company; provided, however, that in no case shall an officer or director of the Company be deemed (x) the Beneficial Owner of any securities beneficially owned by another officer or director of the Company solely by reason of
actions undertaken by such persons in their capacity as officers or directors of the Company or (y) the Beneficial Owner of securities held of record by the trustee of any employee benefit plan of the Company or any Subsidiary of the Company for the
benefit of any employee of the Company or any Subsidiary of the Company, other than the officer or director, by reason of any influence that such officer or director may have over the voting of the securities held in the plan. 
  

 -3- 

 (e) “Business Day” shall mean any day other than a Saturday, Sunday or a day on
which banking institutions in Los Angeles, California are authorized or obligated by law or executive order to close. 
  
 (f) “Close of Business” on any given date shall mean 5:00 P. M., New York time, on such date; provided, however,
that if such date is not a Business Day it shall mean 5:00 P.M., New York time, on the next succeeding Business Day. 
  
 (g) “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. “Common
Shares” when used with reference to the Company shall mean the shares of Common Stock of the Company, par value at $0.001 per share. Common Shares when used with reference to any Person other than the Company shall mean the capital
stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
  
 (h) “Company” shall mean Epicor Software Corporation,
a Delaware corporation, subject to the terms of Section 13(a)(iii)(C) hereof. 
  
 (i) “Current Per Share Market Price” of any security (a “Security” for purposes of this definition), for all computations other than those made pursuant to Section 11(a)(iii) hereof,
shall mean the average of the daily closing prices per share of such Security for the thirty (30) consecutive Trading Days immediately prior to such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, the Current Per
Share Market Price of any Security on any date shall be deemed to be the average of the daily closing prices per share of such Security for the ten (10) consecutive Trading Days immediately prior to such date; provided, however, that
in the event that the Current Per Share Market Price of the Security is determined during a period following the announcement by the issuer of such Security of (i) a dividend or distribution on such Security payable in shares of such Security or
securities convertible into such shares or (ii) any subdivision, combination or reclassification of such Security, and prior to the expiration of the applicable thirty (30) Trading Day or ten (10) Trading Day period, after the ex-dividend date for
such dividend or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the Current Per Share Market Price shall be appropriately adjusted to reflect the current market price per share
equivalent of such Security. The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Security is not listed or admitted to trading on the New York Stock Exchange, as reported in the
principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on
any national securities exchange, the last sale price or, if such last sale price is not reported, the average of the high bid and low asked prices in the over-the-counter market, as reported by Nasdaq or such other system then in use, or, if on any
such date the Security is not quoted by any such organization, the average of the 
  

 -4- 

 closing bid and asked prices as furnished by a professional market maker making a market in the Security selected by the
Board of Directors of the Company. If on any such date no market maker is making a market in the Security, the fair value of such shares on such date as determined in good faith by the Board of Directors of the Company shall be used. If the
Preferred Shares are not publicly traded, the Current Per Share Market Price of the Preferred Shares shall be conclusively deemed to be (x) the Current Per Share Market Price of the Common Shares as determined pursuant to this Section 1(j), as
appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof, multiplied by (y) 1,000. If the Security is not publicly held or so listed or traded, Current Per Share Market Price shall mean
the fair value per share as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
  
 (j) “Current Value” shall have the meaning set forth
in Section 11(a)(iii) hereof. 
  
 (k) “Distribution
Date” shall mean the earlier of (i) the Close of Business on the tenth (10th) day (or such later date
as may be determined by action of the Company’s Board of Directors) after the Shares Acquisition Date (or, if the tenth (10th) day after the Shares Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) or (ii) the Close of Business on the tenth (10th) Business Day (or such later date as may be determined by action of the Company’s Board of Directors) after the date that a tender or exchange offer by
any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms
of any such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act, if, assuming the successful consummation thereof, such Person would be an Acquiring Person.

  
 (l) “Equivalent Shares” shall mean
Preferred Shares and any other class or series of capital stock of the Company which is entitled to the same rights, privileges and preferences as the Preferred Shares. 
  
 (m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (n) “Exchange Ratio” shall have the meaning set forth
in Section 24(a) hereof. 
  
 (o) “Exercise
Price” shall have the meaning set forth in Section 4(a) hereof. 
  
 (p) “Expiration Date” shall mean the earliest to occur of: (i) the Close of Business on the Final Expiration Date, (ii) the Redemption Date, or (iii) the time at which the Board of Directors
orders the exchange of the Rights as provided in Section 24 hereof. 
  
 (q) “Final Expiration Date” shall mean November 13, 2011. 
  
 (r) “Nasdaq” shall mean The Nasdaq Stock Market, Inc. 
  

 -5- 

 (s) “Person” shall mean any individual, firm, corporation or other entity, and
shall include any successor (by merger or otherwise) of such entity. 
  
 (t) “Post-Event Transferee” shall have the meaning set forth in Section 7(e) hereof. 
  
 (u) “Preferred Shares” shall mean shares of Series A Junior Participating Preferred Stock, par value $0.001 per share, of the
Company. 
  
 (v) “Pre-Event Transferee”
shall have the meaning set forth in Section 7(e) hereof. 
  
 (w)
“Principal Party” shall have the meaning set forth in Section 13(b) hereof. 
  
 (x) “Record Date” shall have the meaning set forth in the recitals at the beginning of this Agreement. 
  
 (y) “Redemption Date” shall have the meaning set
forth in Section 23(a) hereof. 
  
 (z) “Redemption
Price” shall have the meaning set forth in Section 23(a) hereof. 
  
 (aa) “Rights Agent” shall mean (i) Mellon Investor Services LLC (ii) its successor or replacement as provided in Sections 19 and 21 hereof or (iii) any additional Person appointed pursuant to
Section 2 hereof. 
  
 (bb) “Rights
Certificate” shall mean a certificate substantially in the form attached hereto as Exhibit A. 
  
 (cc) “Rights Dividend Declaration Date” shall have the meaning set forth in the recitals at the beginning of this Agreement.

  
 (dd) “Section 11(a)(ii) Trigger Date”
shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (ee) “Section 13 Event” shall mean any event described in clause (i), (ii) or (iii) of Section 13(a) hereof. 
  
 (ff) “Securities Act” shall mean the Securities Act of 1933, as amended. 
  

 -6- 

 (gg) “Shares Acquisition Date” shall mean the first date of public announcement
(which, for purposes of this definition, shall include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such; provided that, if such
Person is determined not to have become an Acquiring Person pursuant to Section 1(a) hereof, then no Shares Acquisition Date shall be deemed to have occurred. 
  

(hh) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (ii) “Subsidiary” of any Person shall mean any
corporation or other entity of which an amount of voting securities sufficient to elect a majority of the directors or Persons having similar authority of such corporation or other entity is beneficially owned, directly or indirectly, by such
Person, or any corporation or other entity otherwise controlled by such Person. 
  
 (jj) “Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (kk) “Summary of Rights” shall mean a summary of this Agreement substantially in the form attached hereto as Exhibit B.

  
 (ll) “Total Exercise Price” shall have
the meaning set forth in Section 4(a) hereof. 
  
 (mm)
“Trading Day” shall mean a day on which the principal national securities exchange on which a referenced security is listed or admitted to trading is open for the transaction of business or, if a referenced security is not
listed or admitted to trading on any national securities exchange, a Business Day. 
  
 (nn) A “Triggering Event” shall be deemed to have occurred upon any Person becoming an Acquiring Person. 
  

Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in accordance with the
terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable, upon ten (10) days’ prior written notice to the Rights
Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any co-Rights Agent. 
  
 Section 3. Issuance of Rights Certificates. 
  
 (a) Until the Distribution Date, (i) the Rights will be evidenced (subject to the provisions of Sections 3(b) and 3(c) hereof) by the certificates for
Common Shares registered in the 
  

 -7- 

 names of the holders thereof (which certificates shall also be deemed to be Rights Certificates) and not by separate
Rights Certificates and (ii) the right to receive Rights Certificates will be transferable only in connection with the transfer of Common Shares. Until the earlier of the Distribution Date or the Expiration Date, the surrender for transfer of
certificates for Common Shares shall also constitute the surrender for transfer of the Rights associated with the Common Shares represented thereby. As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights
Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the Distribution Date,
at the address of such holder shown on the records of the Company, a Rights Certificate evidencing one Right for each Common Share so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per Common
Share has been made pursuant to Section 11 hereof, then at the time of distribution of the Rights Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights
Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights (in accordance with Section 14(a) hereof). As of the Distribution Date, the Rights will be evidenced solely by such Rights
Certificates and may be transferred by the transfer of the Rights Certificates as permitted hereby, separately and apart from any transfer of Common Shares, and the holders of such Rights Certificates as listed in the records of the Company or any
transfer agent or registrar for the Rights shall be the record holders thereof. 
  
 (b) On the Record Date or as soon as practicable thereafter, the Company will send a copy of the Summary of Rights by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Record Date, at the address of such holder shown on the records of the Company’s transfer agent and registrar. With respect to certificates for Common Shares outstanding as of the Record Date, until the Distribution Date, the
Rights will be evidenced by such certificates registered in the names of the holders thereof together with the Summary of Rights. 
  
 (c) Unless the Board of Directors by resolution adopted at or before the time of the issuance of any Common Shares after the Record Date but prior to the
earlier of the Distribution Date or the Expiration Date (or, in certain circumstances provided in Section 22 hereof, after the Distribution Date) specifies to the contrary, Rights shall be issued in respect of all Common Shares that are so issued,
and Certificates representing such Common Shares shall also be deemed to be certificates for Rights, and shall bear the following legend: 
  
 THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN AN AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT
BETWEEN EPICOR SOFTWARE CORPORATION (THE “COMPANY”) AND MELLON INVESTOR SERVICES LLC AS THE RIGHTS AGENT, DATED AS OF OCTOBER 27, 2004 (THE “RIGHTS AGREEMENT”), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY
REFERENCE AND A COPY OF WHICH IS ON 
  

 -8- 

 FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE
RIGHTS AGREEMENT, SUCH RIGHTS WILL BE EVIDENCED BY SEPARATE CERTIFICATES AND WILL NO LONGER BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A
WRITTEN REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND VOID. 
  
 With respect to such certificates containing the foregoing legend, until the earlier of the Distribution Date or the Expiration Date, the Rights associated with the
Common Shares represented by such certificates shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer of the Rights associated with the Common Shares represented
thereby. 
  
 (d) In the event that the Company purchases or
acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with
the Common Shares which are no longer outstanding. 
  
 Section 4.
Form of Rights Certificates. 
  
 (a) The Rights
Certificates (and the forms of election to purchase Common Shares and of assignment to be printed on the reverse thereof) shall be substantially in the form of Exhibit A hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, and which do not affect the rights, duties or responsibilities of the Rights Agent, 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 stock exchange or a national market system, on which the Rights may from time to time be listed or included, or
to conform to usage. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date (or in the case of Rights issued with respect to Common Shares issued by the
Company after the Record Date, as of the date of issuance of such Common Shares) and on their face shall entitle the holders thereof to purchase such number of one-hundredths (0.01) of a Preferred Share as shall be set forth therein at the price set
forth therein (such exercise price per one one-hundredth (0.01) of a Preferred Share being hereinafter referred to as the “Exercise Price” and the aggregate Exercise Price of all Preferred Shares issuable upon exercise of one
Right being hereinafter referred to as the “Total Exercise Price”), but the number and type of securities purchasable upon the exercise of each Right and the Exercise Price shall be subject to adjustment as provided herein.

  

 -9- 

 (b) Any Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights
beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a Post-Event Transferee, (iii) a Pre-Event Transferee or (iv) any subsequent transferee receiving transferred Rights from a Post-Event
Transferee or a Pre-Event Transferee, either directly or through one or more intermediate transferees, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other
Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend: 
  
 THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR
ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS
AGREEMENT. 
  
 Section 5. Countersignature and
Registration. 
  
 (a) The Rights Certificates shall be
executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its Chief Financial Officer, its President or any Vice President, either manually or by facsimile signature, and by the Secretary or an Assistant Secretary
of the Company, either manually or by facsimile signature, and shall have affixed thereto the Company’s seal (if any) or a facsimile thereof. The Rights Certificates shall be manually countersigned by the Rights Agent and shall not be valid for
any purpose unless countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the
Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Rights Certificates on behalf of the Company had
not ceased to be such officer of the Company; and any Rights Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such
Rights Certificate, although at the date of the execution of this Rights Agreement any such person was not such an officer. 
  
 (b) Following the Distribution Date and receipt by the Rights Agent of all relevant information, the Rights Agent will keep or cause to be kept, at its
office designated for such purposes, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of Rights evidenced
on its face by each of the Rights Certificates and the date of each of the Rights Certificates. 
  

 -10- 

 Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed,
Lost or Stolen Rights Certificates. 
  
 (a) Subject to the
provisions of Sections 7(e), 14 and 24 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the Expiration Date, any Rights Certificate or Rights Certificates may be transferred, split
up, combined or exchanged for another Rights Certificate or Rights Certificates, entitling the registered holder to purchase a like number of one-hundredths (0.01) of a Preferred Share (or, following a Triggering Event, other securities, cash or
other assets, as the case may be) as the Rights Certificate or Rights Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or Rights
Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Rights Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent designated for such
purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered holder shall have completed and signed the certificate
contained in the form of assignment on the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the
Company shall reasonably request. Thereupon the Rights Agent shall, subject to Sections 7(e), 14 and 24 hereof, countersign and deliver to the person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested.
The Company may require payment from the registered holder of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates. The Rights Agent
shall have no duty or obligation under this Section 6 unless and until it is satisfied that all such taxes and/or charges have been paid in full. 
  
 (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights
Certificate, and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and, at the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the Company will make and deliver a new Rights Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Rights
Certificate so lost, stolen, destroyed or mutilated 
  

 -11- 

 Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights 
  
 (a) Subject to Sections 7(e), 23(b) and 24(b) hereof, the registered holder
of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date and prior to the Close of Business on the Expiration Date by surrender of the
Rights Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Exercise Price for each
one-hundredth (0.01) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) as to which the Rights are exercised. 
  
 (b) The Exercise Price for each one-hundredth (0.01) of a Preferred Share issuable pursuant to the exercise of a Right shall
initially be Ninety-six Dollars ($96.00), shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c)
below. 
  
 (c) Upon receipt of a Rights Certificate representing
exercisable Rights, with the form of election to purchase duly executed, accompanied by payment of the Exercise Price for the number of one-hundredths (0.01) of a Preferred Share (or, following a Triggering Event, other securities, cash or other
assets as the case may be) to be purchased and an amount equal to any applicable tax and charge required to be paid by the holder of such Rights Certificate in accordance with Section 9(e) hereof, the Rights Agent shall, subject to Section 20(k)
hereof, thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent for the Preferred Shares) a certificate or certificates for the number of one-hundredths
(0.01) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests or (B) if the
Company shall have elected to deposit the total number of one-hundredths (0.01) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) issuable upon exercise of the Rights hereunder with a
depository agent, requisition from the depository agent depository receipts representing such number of one-hundredths (0.01) of a Preferred Share (or, following a Triggering Event, other securities, cash or other assets as the case may be) as are
to be purchased (in which case certificates for the Preferred Shares (or, following a Triggering Event, other securities, cash or other assets as the case may be) represented by such receipts shall be deposited by the transfer agent with the
depository agent) and the Company hereby directs the depository agent to comply with such request, (ii) requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii)
after receipt of such certificates or depository receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder and (iv) after
receipt thereof, deliver such cash to or upon the order of the registered holder of such Rights Certificate. The payment of the Exercise Price (as such amount may be reduced (including to zero) pursuant to Section 11(a)(iii) hereof) and an amount
equal to any applicable transfer tax required to be paid by the holder of such Rights Certificate in accordance with Section 9(e) hereof, may be made in cash or by certified bank check, cashier’s check or bank draft payable to the order of

  

 -12- 

 the Company. In the event that the Company is obligated to issue securities of the Company other than Preferred Shares,
pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when
necessary to comply with this Agreement. 
  
 (d) In case the
registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered
holder of such Rights Certificate or to his or her duly authorized assigns, subject to the provisions of Sections 6 and 14 hereof. 
  
 (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Triggering Event, any Rights beneficially owned
by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such (a
“Post-Event Transferee”), (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights
pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement, arrangement or
understanding regarding the transferred Rights or (B) a transfer which the Company’s Board of Directors has determined is part of a plan, agreement, arrangement or understanding which has as a primary purpose or effect the avoidance of this
Section 7(e) (a “Pre-Event Transferee”) or (iv) any subsequent transferee receiving transferred Rights from a Post-Event Transferee or a Pre-Event Transferee, either directly or through one or more intermediate transferees,
shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company shall notify the Rights Agent
when this Section 7(e) applies and shall use all reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of
Rights Certificates or to any other Person as a result of the Company’s failure to make any determinations with respect to an Acquiring Person or any of such Acquiring Person’s Affiliates, Associates or transferees hereunder. 

 
 (f) Notwithstanding anything in this Agreement to the contrary, neither
the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in Section 7 unless such registered holder shall, in addition to having
complied with the requirements of subsection 7(a), have (i) properly completed and signed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise and (ii)
provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company and the Rights Agent shall reasonably request. 
  

 -13- 

 Section 8. Cancellation and Destruction of Rights Certificates. All Rights Certificates
surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered to the
Rights Agent, shall be canceled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and
retirement, and the Rights Agent shall so cancel and retire, any Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled Rights Certificates to the Company, or
shall, at the written request of the Company, destroy such canceled Rights Certificates, and in such case shall deliver a certificate evidencing the destruction thereof to the Company. 
  
 Section 9. Reservation and Availability of Preferred Shares. 
  
 (a) The Company covenants and agrees that it will use its best efforts to
cause to be reserved and kept available out of its authorized and unissued Preferred Shares not reserved for another purpose (and, following the occurrence of a Triggering Event, out of its authorized and unissued Common Shares and/or other
securities), the number of Preferred Shares (and, following the occurrence of the Triggering Event, Common Shares and/or other securities) that will be sufficient to permit the exercise in full of all outstanding Rights. 
  
 (b) If the Company shall hereafter list any of its Preferred Shares on a
national securities exchange, then so long as the Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) issuable and deliverable upon exercise of the Rights may be listed on such exchange, the
Company shall use its best efforts to cause, from and after such time as the Rights become exercisable (but only to the extent that it is reasonably likely that the Rights will be exercised), all shares reserved for such issuance to be listed on
such exchange upon official notice of issuance upon such exercise. 
  
 (c) The Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence of a Triggering Event in which the consideration to be delivered by the Company upon exercise of the
Rights is described in Section 11(a)(ii) or Section 11(a)(iii) hereof, or as soon as is required by law following the Distribution Date, as the case may be, a registration statement under the Securities Act with respect to the securities purchasable
upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such filing and (iii) cause such registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and (B) the date of expiration of the Rights. The Company may temporarily suspend, for a period
not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any
such suspension, the Company shall issue a public announcement stating, and notify the Rights Agent, that the exercisability of the Rights has been temporarily 
  

 -14- 

 suspended, as well as a public announcement and notification to the Rights Agent at such time as the suspension is no
longer in effect. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights.
Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction, unless the requisite qualification in such jurisdiction shall have been obtained, or an exemption therefrom shall be available,
and until a registration statement has been declared and remains effective. 
  
 (d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares (or other securities of the Company) delivered upon exercise of Rights shall, at the time
of delivery of the certificates for such securities (subject to payment of the Exercise Price), be duly and validly authorized and issued and fully paid and nonassessable. 
  
 (e) The Company further covenants and agrees that it will pay when due and payable any and all taxes and charges which may
be payable in respect of the original issuance or delivery of the Rights Certificates or of any Preferred Shares (or other securities of the Company) upon the exercise of Rights. The Company shall not, however, be required to pay any tax or charge
which may be payable in respect of any transfer or delivery of Rights Certificates to a person other than, or the issuance or delivery of certificates or depository receipts for the Preferred Shares (or other securities of the Company) in a name
other than that of, the registered holder of the Rights Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates or depository receipts for Preferred Shares (or other securities of the Company) upon the
exercise of any Rights until any such tax or charge shall have been paid (any such tax or charge being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s satisfaction
that no such tax or charge is due. 
  
 Section 10. Record
Date. Each Person in whose name any certificate for a number of one-hundredths (0.01) of a Preferred Share (or other securities of the Company) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of
record of Preferred Shares (or other securities of the Company) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Total Exercise
Price with respect to which the Rights have been exercised (and any applicable taxes or charges) was made; provided, however, that if the date of such surrender and payment is a date upon which the transfer books of the Company are
closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the transfer books of the Company are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a holder of Preferred Shares (or other securities of the Company) for which the Rights shall be exercisable, including, without limitation, the right to
vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 
  

 -15- 

 Section 11. Adjustment of Exercise Price, Number of Shares or Number of Rights. The Exercise
Price, the number and kind of shares or other property covered by each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11. 
  
 (a) (i) Anything in this Agreement to the contrary notwithstanding, in the
event that the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares (by
reverse stock split or otherwise) into a smaller number of Preferred Shares, or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger
in which the Company is the continuing or surviving corporation), then, in each such event, except as otherwise provided in this Section 11 and Section 7(e) hereof: (1) the Exercise Price in effect at the time of the record date for such dividend or
of the effective date of such subdivision, combination or reclassification shall be adjusted so that the Exercise Price thereafter shall equal the result obtained by dividing the Exercise Price in effect immediately prior to such time by a fraction
(the “Adjustment Fraction”), the numerator of which shall be the total number of Preferred Shares (or shares of capital stock issued in such reclassification of the Preferred Shares) outstanding immediately following such
time and the denominator of which shall be the total number of Preferred Shares outstanding immediately prior to such time; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of such Right; and (2) the number of one-hundredths (0.01) of a Preferred Share (or share of such other capital stock) issuable upon the exercise of
each Right shall equal the number of one-hundredths (0.01) of a Preferred Share (or share of such other capital stock) as was issuable upon exercise of a Right immediately prior to the occurrence of the event described in clauses (A)-(D) of this
Section 11(a)(i), multiplied by the Adjustment Fraction; provided, however, that, no such adjustment shall be made pursuant to this Section 11(a)(i) to the extent that there shall have simultaneously occurred an event described in clause (A), (B),
(C) or (D) of Section 11(n) with a proportionate adjustment being made thereunder. Each Common Share that shall become outstanding after an adjustment has been made pursuant to this Section 11(a)(i) shall have associated with it the number of
Rights, exercisable at the Exercise Price and for the number of one-hundredths (0.01) of a Preferred Share (or shares of such other capital stock) as one Common Share has associated with it immediately following the adjustment made pursuant to this
Section 11(a)(i). 
  
 (ii) Subject to Section 24 of this
Agreement, in the event that a Triggering Event shall have occurred, then promptly following such Triggering Event each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive for each Right, upon
exercise thereof in accordance with the terms of this Agreement and payment of the Exercise Price in effect immediately prior to the occurrence of the Triggering Event, in lieu of a number of one-hundredths (0.01) of a Preferred Share, such number
of Common Shares of the Company as shall equal the quotient obtained by dividing (A) the product obtained by multiplying (1) the Exercise Price in effect immediately prior to the occurrence of the Triggering Event by (2) the 
  

 -16- 

 number of one-hundredths (0.01) of a Preferred Share for which a Right was exercisable (or would have been exercisable if
the Distribution Date had occurred) immediately prior to the first occurrence of a Triggering Event, by (B) fifty percent (50%) of the Current Per Share Market Price for Common Shares on the date of occurrence of the Triggering Event;
provided, however, that the Exercise Price and the number of Common Shares of the Company so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 11(e) hereof to reflect
any events occurring in respect of the Common Shares of the Company after the occurrence of the Triggering Event. 
  
 (iii) In lieu of issuing Common Shares in accordance with Section 11(a)(ii) hereof, the Company may, if the Company’s Board of Directors determines
that such action is necessary or appropriate and not contrary to the interest of holders of Rights and, in the event that the number of Common Shares which are authorized by the Company’s Certificate of Incorporation but not outstanding or
reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full of the Rights, or if any necessary regulatory approval for such issuance has not been obtained by the Company, the Company
shall: (A) determine the excess of (1) the value of the Common Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the Exercise Price (such excess, the “Spread”) and (B) with
respect to each Right, make adequate provision to substitute for such Common Shares, upon exercise of the Rights, (1) cash, (2) a reduction in the Exercise Price, (3) other equity securities of the Company (including, without limitation, shares or
units of shares of any series of preferred stock which the Company’s Board of Directors has deemed to have the same value as Common Shares (such shares or units of shares of preferred stock are herein called “Common Stock
Equivalents”)), except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance, (4) debt securities of the Company, except to the extent that the Company has not obtained any
necessary stockholder or regulatory approval for such issuance, (5) other assets or (6) any combination of the foregoing, having an aggregate value equal to the Current Value, where such aggregate value has been determined by the Company’s
Board of Directors based upon the advice of a nationally recognized investment banking firm selected by the Company’s Board of Directors; provided, however, that if the Company shall not have made adequate provision to deliver
value pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Triggering Event and (y) the date on which the Company’s right of redemption pursuant to Section 23(a) expires (the later of (x) and
(y) being referred to herein as the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the Exercise Price, Common
Shares (to the extent available), except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance, and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the
Spread. If the Company’s Board of Directors shall determine in good faith that it is likely that sufficient additional Common Shares could be authorized for issuance upon exercise in full of the Rights or that any necessary regulatory approval
for such issuance will be obtained, the thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder
approval for the authorization of such additional shares or take action to obtain such regulatory approval (such period, as it may be extended, the “Substitution Period”). To the extent 
  

 -17- 

 that the Company determines that some action need be taken pursuant to the first and/or second sentences of this Section
11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order
to seek any authorization of additional shares, to take any action to obtain any required regulatory approval and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the
event of any such suspension, the Company shall issue a public announcement (with prompt notice thereof to the Rights Agent) stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement (with prompt
notice thereof to the Rights Agent) at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Shares shall be the Current Per Share Market Price of the Common Shares on the Section
11(a)(ii) Trigger Date and the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Shares on such date. 
  
 (b) In case the Company shall, at any time after the date of this Agreement, fix a record date for the issuance of rights, options or warrants to all
holders of Preferred Shares entitling such holders (for a period expiring within forty-five (45) calendar days after such record date) to subscribe for or purchase Preferred Shares or Equivalent Shares or securities convertible into Preferred Shares
or Equivalent Shares at a price per share (or having a conversion price per share, if a security convertible into Preferred Shares or Equivalent Shares) less than the then Current Per Share Market Price of the Preferred Shares or Equivalent Shares
on such record date, then, in each such case, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall
be the number of Preferred Shares and Equivalent Shares (if any) outstanding on such record date, plus the number of Preferred Shares or Equivalent Shares, as the case may be, which the aggregate offering price of the total number of Preferred
Shares or Equivalent Shares, as the case may be, to be offered or issued (and/or the aggregate initial conversion price of the convertible securities to be offered or issued) would purchase at such current market price, and the denominator of which
shall be the number of Preferred Shares and Equivalent Shares (if any) outstanding on such record date, plus the number of additional Preferred Shares or Equivalent Shares, as the case may be, to be offered for subscription or purchase (or into
which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of
capital stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good
faith by the Company’s Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights and shall be conclusive for all purposes.
Preferred Shares and Equivalent Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in
the event that such rights, options or warrants are not so issued, the Exercise Price shall be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed. 
  

 -18- 

 (c) In case the Company shall, at any time after the date of this Agreement, fix a record date for the
making of a distribution to all holders of the Preferred Shares or of any class or series of Equivalent Shares (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend, if any, or a dividend payable in Preferred Shares) or subscription rights, options or warrants (excluding those referred to in Section 11(b)), then,
in each such case, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Current Per Share
Market Price of a Preferred Share or an Equivalent Share on such record date, less the fair market value per Preferred Share or Equivalent Share (as determined in good faith by the Board of Directors of the Company, whose determination shall be
described in a statement filed with the Rights Agent and which shall be conclusive for all purposes) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a
Preferred Share or Equivalent Share, as the case may be, and the denominator of which shall be such Current Per Share Market Price of a Preferred Share or Equivalent Share on such record date; provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. Such adjustments shall be made successively whenever such a record
date is fixed, and in the event that such distribution is not so made, the Exercise Price shall be adjusted to be the Exercise Price which would have been in effect if such record date had not been fixed. 
  
 (d) Anything herein to the contrary notwithstanding, no adjustment in the
Exercise Price shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) of the Exercise Price; provided, however, that any adjustments which by reason of this Section 11(d) are not
required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest ten-thousandth (0.0001) of a Common Share or other share or
one hundred-thousandth (0.00001) of a Preferred Share, as the case may be. Notwithstanding the first sentence of this Section 11(d), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the
date of the transaction which requires such adjustment or (ii) the Expiration Date. 
  
 (e) If as a result of an adjustment made pursuant to Section 11(a) or Section 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock other than
Preferred Shares, thereafter the number of such other shares so receivable upon exercise of any Right and, if required, the Exercise Price thereof, shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a), 11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j), 11(k) and 11(l), and the provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares
shall apply on like terms to any such other shares. 
  

 -19- 

 (f) All Rights originally issued by the Company subsequent to any adjustment made to the Exercise Price
hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of one-hundredths (0.01) of a Preferred Share purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as
provided herein. 
  
 (g) Unless the Company shall have exercised
its election as provided in Section 11(h), upon each adjustment of the Exercise Price as a result of the calculations made in Section 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence
the right to purchase, at the adjusted Exercise Price, that number of Preferred Shares (calculated to the nearest one hundred-thousandth (0.00001) of a share) obtained by (i) multiplying (x) the number of Preferred Shares covered by a Right
immediately prior to this adjustment, by (y) the Exercise Price in effect immediately prior to such adjustment of the Exercise Price, and (ii) dividing the product so obtained by the Exercise Price in effect immediately after such adjustment of the
Exercise Price. 
  
 (h) The Company may elect on or after the date
of any adjustment of the Exercise Price as a result of the calculations made in Section 11(b) or (c) to adjust the number of Rights, in substitution for any adjustment in the number of Preferred Shares purchasable upon the exercise of a Right. Each
of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of one-hundredths (0.01) of a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of
record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one hundred-thousandth (0.00001)) obtained by dividing the Exercise Price in effect immediately prior to adjustment of the Exercise
Price by the Exercise Price in effect immediately after adjustment of the Exercise Price. The Company shall make a public announcement (with prompt notice thereof to the Rights Agent) of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Exercise Price is adjusted or any day thereafter, but, if any Rights Certificates have been issued,
shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(h), the Company shall, as promptly as practicable,
cause to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or,
at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein (and may
bear, at the option of the Company, the adjusted Exercise Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date specified in the public announcement. 
  

 -20- 

 (i) Irrespective of any adjustment or change in the Exercise Price or the number of Preferred Shares
issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price per one one-hundredth (0.01) of a Preferred Share and the number of one-hundredths (0.01) of a Preferred
Share which were expressed in the initial Rights Certificates issued hereunder. 
  
 (j) Before taking any action that would cause an adjustment reducing the Exercise Price below the par or stated value, if any, of the number of one-hundredths (0.01) of a Preferred Share issuable upon exercise of the
Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue as fully paid and nonassessable shares such number of one-hundredths (0.01) of a
Preferred Share at such adjusted Exercise Price. 
  
 (k) In any
case in which this Section 11 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified event, the Company may elect to defer (with prompt notice of such election to the Rights Agent) until the
occurrence of such event the issuing to the holder of any Right exercised after such record date of the number of one-hundredths (0.01) of a Preferred Share and other capital stock or securities of the Company, if any, issuable upon such exercise
over and above the number of one-hundredths (0.01) of a Preferred Share and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) upon the occurrence of the event requiring such
adjustment. 
  
 (l) Anything in this Section 11 to the contrary
notwithstanding, prior to the Distribution Date, the Company shall be entitled to make such reductions in the Exercise Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion
shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred or Common Shares, (ii) issuance wholly for cash of any Preferred or Common Shares at less than the current market price, (iii) issuance wholly for
cash of Preferred or Common Shares or securities which by their terms are convertible into or exchangeable for Preferred or Common Shares, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter
made by the Company to holders of its Preferred or Common Shares shall not be taxable to such stockholders. 
  
 (m) The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Sections 23, 24 or 27 hereof, take (or permit
to be taken) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 
  

 -21- 

 (n) In the event that the Company shall at any time after the date of this Agreement (A) declare a
dividend on the Common Shares payable in Common Shares, (B) subdivide the outstanding Common Shares, (C) combine the outstanding Common Shares (by reverse stock split or otherwise) into a smaller number of Common Shares, or (D) issue any shares of
its capital stock in a reclassification of the Common Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such event, except as
otherwise provided in this Section 11(a) and Section 7(e) hereof: (1) each Common Share (or shares of capital stock issued in such reclassification of the Common Shares) outstanding immediately following such time shall have associated with it the
number of Rights as were associated with one Common Share immediately prior to the occurrence of the event described in clauses (A)-(D) above; (2) the Exercise Price in effect at the time of the record date for such dividend or of the effective date
of such subdivision, combination or reclassification shall be adjusted so that the Exercise Price thereafter shall equal the result obtained by multiplying the Exercise Price in effect immediately prior to such time by a fraction, the numerator of
which shall be the total number of Common Shares outstanding immediately prior to the event described in clauses (A)-(D) above, and the denominator of which shall be the total number of Common Shares outstanding immediately after such event;
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of such Right; and (3) the
number of one-hundredths (0.01) of a Preferred Share (or shares of such other capital stock) issuable upon the exercise of each Right outstanding after such event shall equal the number of one-hundredths (0.01) of a Preferred Share (or shares of
such other capital stock) as were issuable with respect to one Right immediately prior to such event. Each Common Share that shall become outstanding after an adjustment has been made pursuant to this Section 11(n) shall have associated with it the
number of Rights, exercisable at the Exercise Price and for the number of one-hundredths (0.01) of a Preferred Share (or shares of such other capital stock) as one Common Share has associated with it immediately following the adjustment made
pursuant to this Section 11(n). If an event occurs which would require an adjustment under both this Section 11(n) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(n) shall be in addition to, and shall be made prior to,
any adjustment required pursuant to Section 11(a)(ii) hereof. 
  
 Section 12. Certificate of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made as provided in Sections 11 or 13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment and a
brief statement of the facts and computations accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Preferred Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a
Rights Certificate in accordance with Section 26 hereof. Notwithstanding the foregoing sentence, the failure of the Company to make such certification or give such notice shall not affect the validity of such adjustment or the force or effect of the
requirement for such adjustment. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment contained therein and shall have no duty with respect to and shall not be deemed to have knowledge of such adjustment
unless and until it shall have received such certificate. 
  

 -22- 

 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power. 
  
 (a) In the event that, following a Triggering Event, directly or indirectly:

  
 (i) the Company shall consolidate with, or merge with and
into, any other Person (other than a wholly-owned Subsidiary of the Company in a transaction the principal purpose of which is to change the state of incorporation of the Company and which complies with Section 11(m) hereof); 
  
 (ii) any Person shall consolidate with the Company, or merge with and into
the Company and the Company shall be the continuing or surviving corporation of such consolidation or merger and, in connection with such merger, all or part of the Common Shares shall be changed into or exchanged for stock or other securities of
any other person (or the Company); or 
  
 (iii) the Company shall
sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or more transactions, assets or earning power aggregating fifty percent (50%) or more of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or one or more of its wholly owned Subsidiaries in one or more transactions, each of which individually (and together) complies with Section 11(m) hereof),

  
 then, concurrent with and in each such case, 
  
 (A) each holder of a Right (except as provided in Section 7(e) hereof) shall
thereafter have the right to receive, upon the exercise thereof at a price equal to the Total Exercise Price applicable immediately prior to the occurrence of the Section 13 Event in accordance with the terms of this Agreement, such number of
validly authorized and issued, fully paid, nonassessable and freely tradeable Common Shares of the Principal Party (as hereinafter defined), free of any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the
result obtained by dividing such Total Exercise Price by an amount equal to fifty percent (50%) of the Current Per Share Market Price of the Common Shares of such Principal Party on the date of consummation of such Section 13 Event, provided,
however, that the Exercise Price and the number of Common Shares of such Principal Party so receivable upon exercise of a Right shall be subject to further adjustment as appropriate in accordance with Section 11(e) hereof; 
  
 (B) such Principal Party shall thereafter be liable for, and shall assume,
by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; 
  
 (C) the term “Company” shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of
Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event; 
  
 (D) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares) in connection
with the 
  

 -23- 

 consummation of any such transaction as may be necessary to ensure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to its Common Shares thereafter deliverable upon the exercise of the Rights; and 
  
 (E) upon the subsequent occurrence of any consolidation, merger, sale or transfer of assets or other extraordinary transaction in respect of such
Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Total Exercise Price as provided in this Section 13(a), such cash, shares, rights, warrants and other property which such
holder would have been entitled to receive had such holder, at the time of such transaction, owned the Common Shares of the Principal Party receivable upon the exercise of such Right pursuant to this Section 13(a), and such Principal Party shall
take such steps (including, but not limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other property.

  
 (F) For purposes hereof, the “earning power” of the
Company and its Subsidiaries shall be determined in good faith by the Company’s Board of Directors on the basis of the operating income of each business operated by the Company and its Subsidiaries during the three fiscal years preceding the
date of such determination (or, in the case of any business not operated by the Company or any Subsidiary during three full fiscal years preceding such date, during the period such business was operated by the Company or any Subsidiary). 

 
 (b) For purposes of this Agreement, the term “Principal
Party” shall mean: 
  
 (i) in the case of any
transaction described in clause (i) or (ii) of Section 13(a) hereof: (A) the Person that is the issuer of the securities into which the Common Shares are converted in such merger or consolidation, or, if there is more than one such issuer, the
issuer the Common Shares of which have the greatest aggregate market value of shares outstanding, or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more
than one such Person, the Person the Common Shares of which have the greatest aggregate market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does survive the
merger (including the Company if it survives) or (z) the Person resulting from the consolidation; and 
  
 (ii) in the case of any transaction described in clause (iii) of Section 13(a) hereof, the Person that is the party receiving the greatest portion of the
assets or earning power transferred pursuant to such transaction or transactions, or, if more than one Person that is a party to such transaction or transactions receives the same portion of the assets or earning power so transferred and each such
portion would, were it not for the other equal portions, constitute the greatest portion of the assets or earning power so transferred, or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of
such Persons is the issuer of Common Shares having the greatest aggregate market value of shares outstanding; provided that in any such case described in the foregoing clause (b)(i) or (b)(ii), if the Common Shares of such Person are not at
such time or have not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect 
  

 -24- 

 Subsidiary of another Person the Common Shares of which are and have been so registered, the term “Principal
Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of which are and have been so registered, the term “Principal Party” shall refer to
whichever of such Persons is the issuer of Common Shares having the greatest aggregate market value of shares outstanding, or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned,
directly or indirectly by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint
venturers, and the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ration as its interest in such Person bears to the total of such interests. 
  
 (c) The Company shall not consummate any Section 13 Event unless the
Principal Party shall have a sufficient number of authorized Common Shares that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and
such issuer shall have executed and delivered to the Rights Agent a supplemental agreement confirming that such Principal Party shall, upon consummation of such Section 13 Event, assume this Agreement in accordance with Sections 13(a) and 13(b)
hereof, that all rights of first refusal or preemptive rights in respect of the issuance of Common Shares of such Principal Party upon exercise of outstanding Rights have been waived, that there are no rights, warrants, instruments or securities
outstanding or any agreements or arrangements which, as a result of the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded by the Rights and that such transaction shall not result in a
default by such Principal Party under this Agreement, and further providing that, as soon as practicable after the date of such Section 13 Event, such Principal Party will: 
  
 (i) prepare and file a registration statement under the Securities Act with respect to the Rights and the securities
purchasable upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to become effective as soon as practicable after such filing and use its best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date, and similarly comply with applicable state securities laws; 
  
 (ii) use its best efforts to list (or continue the listing of) the Rights and the securities purchasable upon exercise of
the Rights on a national securities exchange or to meet the eligibility requirements for quotation on Nasdaq and list (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on Nasdaq; and 
  
 (iii) deliver to holders of the Rights historical financial statements for
such Principal Party which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act. 
  
 In the event that at any time after the occurrence of a Triggering Event some or all of the Rights shall not have been exercised at the time of a
transaction described in this Section 13, the Rights which have not theretofore been exercised shall thereafter be exercisable in the manner described in Section 13(a) (without taking into account any prior adjustment required by Section 11(a)(ii)).

  

 -25- 

 (d) In case the “Principal Party” for purposes of Section 13(b) hereof has provision in any of
its authorized securities or in its certificate of incorporation or by-laws or other instrument governing its corporate affairs, which provision would have the effect of (i) causing such Principal Party to issue (other than to holders of Rights
pursuant to Section 13 hereof), in connection with, or as a consequence of, the consummation of a Section 13 Event, Common Shares or Equivalent Shares of such Principal Party at less than the then Current Per Share Market Price thereof or securities
exercisable for, or convertible into, Common Shares or Equivalent Shares of such Principal Party at less than such then Current Per Share Market Price, or (ii) providing for any special payment, tax or similar provision in connection with the
issuance of the Common Shares of such Principal Party pursuant to the provisions of Section 13 hereof, then, in such event, the Company hereby agrees with each holder of Rights that it shall not consummate any such transaction unless prior thereto
the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of such Principal Party shall have been canceled, waived or amended, or that the authorized
securities shall be redeemed, so that the applicable provision will have no effect in connection with or as a consequence of, the consummation of the proposed transaction. 
  
 (e) The Company covenants and agrees that it shall not, at any time after the Distribution Date, effect or permit to occur
any Section 13 Event, if (i) at the time or immediately after such Section 13 Event there are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially diminish or otherwise eliminate the
benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such Section 13 Event, the stockholders of the Person who constitutes, or would constitute, the “Principal Party” for purposes of
Section 13(b) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates or (iii) the form or nature of organization of the Principal Party would preclude or limit the exercisability of
the Rights. 
  
 (f) The provisions of this Section 13 shall
similarly apply to successive mergers or consolidations or sales or other transfers. 
  
 Section 14. Fractional Rights and Fractional Shares. 
  
 (a) The Company shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered
holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a), the
current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable, as determined pursuant to the second sentence of
Section 1(j) hereof. 
  

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 (b) The Company shall not be required to issue fractions of Preferred Shares (other than fractions that
are integral multiples of one one-hundredth (0.01) of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares (other than fractions that are integral multiples of one one-hundredth
(0.01) of a Preferred Share). Interests in fractions of Preferred Shares in integral multiples of one one-hundredth (0.01) of a Preferred Share may, at the election of the Company, be evidenced by depository receipts, pursuant to an appropriate
agreement between the Company and a depository selected by it; provided, that such agreement shall provide that the holders of such depository receipts shall have all the rights, privileges and preferences to which they are entitled as
beneficial owners of the Preferred Shares represented by such depository receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-hundredth (0.01) of a Preferred Share, the Company shall pay to the registered
holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of a Preferred Share. For purposes of this Section 14(b), the current market value of a
Preferred Share shall be (x) one hundred multiplied by (y) the closing price of a Common Share (as determined pursuant to the second sentence of Section 1(j) hereof) for the Trading Day immediately prior to the date of such exercise. 
  
 (c) The Company shall not be required to issue fractions of Common Shares or
to distribute certificates which evidence fractional Common Shares upon the exercise or exchange of Rights. In lieu of such fractional Common Shares, the Company shall pay to the registered holders of Rights Certificates at the time such Rights are
exercised as herein provided an amount in cash equal to the same fraction of the current market value of a Common Share. For purposes of this Section 14(c), the current market value of a Common Share shall be the closing price of a Common Share (as
determined pursuant to the second sentence of Section 1(j) hereof) for the Trading Day immediately prior to the date of such exercise. 
  
 (d) The holder of a Right by the acceptance of the Right expressly waives his or her right to receive any fractional Rights or any fractional shares
(other than fractions that are integral multiples of one one-hundredth (0.01) of a Preferred Share) upon exercise of a Right. 
  
 Section 15. Rights of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under
this Agreement, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Rights Certificate (or, prior to the
Distribution Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the Common Shares), may, in his or her own behalf and for his or her own
benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his or her right to exercise the Rights evidenced by such Rights Certificate in the manner provided in
such Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available 
  

 -27- 

 to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at
law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this Agreement. 
  
 Section 16. Agreement of Rights Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
  
 (a) prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares; 
  
 (b) after the Distribution Date, the Rights Certificates are transferable
only on the registry books of the Rights Agent if surrendered at the office or offices of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates
fully executed; 
  
 (c) subject to Sections 6(a) and 7(f) hereof,
the Company and the Rights Agent may deem and treat the person in whose name the Rights Certificate (or, prior to the Distribution Date, the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificates or the associated Common Shares certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the
Company nor the Rights Agent shall be affected by any notice to the contrary; and 
  
 (d) notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability to perform any of
its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or ruling (whether interlocutory or final) issued by a court of competent jurisdiction or by a governmental, regulatory or
administrative agency or commission, or by reason of any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, that
the Company must use its reasonable best efforts to have any such order, decree, judgment or ruling lifted or otherwise overturned as soon as possible. 
  
 Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Rights Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose to be the holder of the Preferred Shares or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any
Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as specifically provided in Section 25 hereof), or to receive dividends or subscription rights,
or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof. 
  

 -28- 

 Section 18. Concerning the Rights Agent. 
  
 (a) The Company agrees to pay to the Rights Agent reasonable compensation
for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, delivery, administration, execution and amendment of this
Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or
expense, incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct must be determined by a final non-appealable court of competent jurisdiction), for
any action taken, suffered or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in the premises. The costs and expenses
incurred in enforcing this right of indemnification and shall be paid by the Company. The indemnity provided herein shall survive the termination of this Agreement, the termination and the expiration of the Rights and the resignation or removal of
the Rights Agent. 
  
 (b) The Rights Agent shall be authorized to
rely on, shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by it in connection with its acceptance and administration of this Agreement or the exercise or performance of its duties hereunder
in reliance upon any Rights Certificate or certificate for the Preferred Shares or Common Shares or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, statement or other paper or document reasonably believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as
set forth in Section 20 hereof. 
  
 Section 19. Merger or
Consolidation or Change of Name of Rights Agent. 
  
 (a) Any
Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party,
or any Person succeeding to the business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the
parties hereto; provided, however, that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created
by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not 
  

 -29- 

 have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name of the
predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 
  
 (b) In case at any time the name of the Rights Agent shall be changed and at
such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the
Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in
the Rights Certificates and in this Agreement. 
  
 Section 20.
Duties of Rights Agent. The Rights Agent undertakes only the duties and obligations expressly imposed by this Agreement (and no implied duties and obligations) upon the following terms and conditions, by all of which the Company and the
holders of Rights Certificates, by their acceptance thereof, shall be bound: 
  
 (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent,
and the Rights Agent shall incur no liability for, or in respect of any action taken, suffered or omitted by it in accordance with such advice or opinion. 
  
 (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter
(including, without limitation, the identity of any Acquiring Person and the determination of Current Per Share Market Price) be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact or
matter may be deemed to be conclusively proved and established by a certificate signed by any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Secretary or any
Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full and complete authorization to the Rights Agent, and the Rights Agent shall incur no liability for, or in respect of any action taken, suffered
or omitted to be taken by it under the provisions of this Agreement in reliance upon such certificate. 
  
 (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence, bad faith or willful misconduct
(which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable court of competent jurisdiction). Anything to the contrary notwithstanding, in no event shall the Rights Agent be liable for special, punitive,
indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights Agent under this
Agreement will be limited to the amount of fees paid by the Company to the Rights Agent. 
  

 -30- 

 (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals
contained in this Agreement or in the Rights Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 
  
 (e) The Rights Agent shall not be under any responsibility or have any
liability in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature
thereof); nor shall it be liable or responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any change in the exercisability of the Rights or
any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with
respect to the exercise of Rights evidenced by Rights Certificates after receipt by the Rights Agent of a certificate furnished pursuant to Section 12 describing such change or adjustment); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any Preferred Shares to be issued pursuant to this Agreement or any Rights Certificate or as to whether any Preferred Shares will, when issued, be validly authorized and issued,
fully paid and nonassessable. 
  
 (f) The Company agrees that it
will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or
performing by the Rights Agent of the provisions of this Agreement. 
  
 (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, the Chief Executive Officer, the President, any Vice President,
the Chief Financial Officer, the Secretary or any Assistant Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties, and such advice or instructions shall be full authorization and protection
to the Rights Agent, and the Rights Agent shall not be liable for or in respect of any action taken, suffered or omitted by it in accordance with the advice or instructions of any such officer or for any delay in acting while waiting for those
instructions. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received by any such officer. Any application by the Rights Agent for written instructions from the Company may, at the option of the
Rights Agent, set forth in writing any action proposed to be taken, suffered, or omitted by the Rights Agent under this Rights Agreement and the date on and/or after which such action shall be taken, suffered by, or such omission shall be effective.
The Rights Agent shall not be liable for any action taken, suffered or omitted in accordance with a proposal included in any such application on or after the date specified in such application (which date shall not be less than five (5) Business
Days after the date on which any officer of the Company actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an
omission), the Rights Agent shall have received written instructions in response to such application specifying the action to be taken, suffered or omitted. 
  

 -31- 

 (h) The Rights Agent and any stockholder, Affiliate, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and
freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent or any such stockholder, Affiliate, director, officer or employee from acting in any other capacity for the Company or for any other
Person. 
  
 (i) The Rights Agent may execute and exercise any of
the rights or powers hereby vested in it or perform any duty hereunder either itself (through its directors, officers and employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act,
default, neglect or misconduct of any such attorneys or agents or for any loss to the Company, any holders of Rights or any other Person, resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful
misconduct (each as determined by a final non-appealable court of competent jurisdiction) in the selection and continued employment thereof. 
  
 (j) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds or adequate indemnification against such risk or liability is not assured to it. 
  
 (k) If, with respect to any Rights Certificate surrendered to the Rights
Agent for exercise or transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent
shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company. 
  
 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this
Agreement upon thirty (30) days’ notice in writing mailed to the Company and to each transfer agent of the Preferred Shares and the Common Shares by registered or certified mail, and to the holders of the Rights Certificates by first-class
mail. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Preferred Shares
and the Common Shares by registered or certified mail, and to the holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a
successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or 
  

 -32- 

 incapacity by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such
notice, submit his or her Rights Certificate for inspection by the Company), then the registered holder of any Rights Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent,
whether appointed by the Company or by such a court, shall be (a) Person organized and doing business under the laws of the United States or of any state of the United States, in good standing, which is authorized under such laws to exercise
corporate trust or stockholder services powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million, or (b) an
Affiliate of the Person described in clause (a) above. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or
deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not
later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Shares and the Common Shares, and mail a notice thereof in writing to
the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be. 
  
 Section 22. Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form
as may be approved by its Board of Directors to reflect any adjustment or change in the Exercise Price and the number or kind or class of shares or other securities or property purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale of Common Shares following the Distribution Date and prior to the redemption or expiration of the Rights, the Company (a) shall, with respect to Common Shares so
issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company outstanding at the date hereof or upon the exercise, conversion or
exchange of securities hereinafter issued by the Company and (b) may, in any other case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the appropriate number of Rights in
connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued and this sentence shall be null and void ab initio if, and to the extent that, such issuance or this sentence would
create a significant risk of or result in material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued or would create a significant risk of or result in such options’ or employee plans’ or
arrangements’ failing to qualify for otherwise available special tax treatment and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance
thereof. 
  

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 Section 23. Redemption. 
  
 (a) The Company may, at its option and with the approval of the Board of Directors, at any time prior to the Close of
Business on the earlier of (i) the fifth day following the Shares Acquisition Date (or such later date as may be determined by action of the Company’s Board of Directors and publicly announced by the Company) and (ii) the Final Expiration Date,
redeem all but not less than all the then outstanding Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such redemption price
being herein referred to as the “Redemption Price”) and the Company may, at its option, pay the Redemption Price either in Common Shares (based on the Current Per Share Market Price thereof at the time of redemption) or cash.
Such redemption of the Rights by the Company may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. The date on which the Board of Directors elects to make the
redemption effective shall be referred to as the “Redemption Date.” 
  
 (b) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights, evidence of which shall have been filed with the Rights Agent, and without any further action and without
any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice (with prompt notice thereof to the Rights
Agent) of any such redemption; provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption. Within ten (10) days after the action of the Board of Directors ordering
the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders of the then outstanding Rights by mailing such notice to all such holders at their last addresses as they appear upon the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in
any manner other than that specifically set forth in this Section 23 or in Section 24 hereof, and other than in connection with the purchase of Common Shares prior to the Distribution Date. 
  
 Section 24. Exchange. 
  
 (a) Subject to applicable laws, rules and regulations, and subject to
subsection 24(c) below, the Company may, at its option, by action of the Board of Directors, at any time after the occurrence of a Triggering Event, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights
that have become void pursuant to the provisions of Section 7(e) hereof) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after
the date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such exchange at any time after any Person
(other than the Company, any Subsidiary of the Company, 
  

 -34- 

 any employee benefit plan of the Company or any such Subsidiary, or any entity holding Common Shares for or pursuant to
the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Shares then outstanding. 
  
 (b) Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to subsection 24(a)
of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Common Shares equal to the number
of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall give public notice (with prompt notice thereof to the Rights Agent) of any such exchange; provided, however, that the failure to give, or any defect
in, such notice shall not affect the validity of such exchange. The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the
event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 7(e) hereof)
held by each holder of Rights. 
  
 (c) In the event that there
shall not be sufficient Common Shares issued but not outstanding or authorized but unissued to permit any exchange of Rights as contemplated in accordance with Section 24(a), the Company shall either take such action as may be necessary to authorize
additional Common Shares for issuance upon exchange of the Rights or alternatively, at the option of a majority of the Board of Directors, with respect to each Right (i) pay cash in an amount equal to the Current Value (as hereinafter defined), in
lieu of issuing Common Shares in exchange therefor, or (ii) issue debt or equity securities or a combination thereof, having a value equal to the Current Value, in lieu of issuing Common Shares in exchange for each such Right, where the value of
such securities shall be determined by a nationally recognized investment banking firm selected by majority vote of the Board of Directors, or (iii) deliver any combination of cash, property, Common Shares and/or other securities having a value
equal to the Current Value in exchange for each Right. For purposes of this Section 24(c) only, the Current Value shall mean the product of the Current Per Share Market Price of Common Shares on the date of the occurrence of the event described
above in subsection (a), multiplied by the number of Common Shares for which the Right otherwise would be exchangeable if there were sufficient shares available. To the extent that the Company determines that some action need be taken pursuant to
clauses (i), (ii) or (iii) of this Section 24(c), the Board of Directors may temporarily suspend the exercisability of the Rights for a period of up to sixty (60) days following the date on which the event described in Section 24(a) shall have
occurred, in order to seek any authorization of additional Common Shares and/or to decide the appropriate form of distribution to be made pursuant to the above provision and to determine the value thereof. In the event of any such suspension, the
Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended. 
  

 -35- 

 (d) The Company shall not be required to issue fractions of Common Shares or to distribute certificates
which evidence fractional Common Shares. In lieu of such fractional Common Shares, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional Common Shares would otherwise be issuable, an amount in
cash equal to the same fraction of the current market value of a whole Common Share (as determined pursuant to the second sentence of Section 1(j) hereof). 
  
 (e) The Company may, at its option, by majority vote of the Board of Directors, at any time before any Person has become an Acquiring Person, exchange all
or part of the then outstanding Rights for rights of substantially equivalent value, as determined reasonably and with good faith by the Board of Directors based upon the advice of one or more nationally recognized investment banking firms.

  
 (f) Immediately upon the action of the Board of Directors
ordering the exchange of any Rights pursuant to subsection 24(e) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of rights in exchange therefor as has been determined by the Board of Directors in accordance with subsection 24(e) above. The Company shall give public notice of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the
registry books of the transfer agent for the Common Shares of the Company. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of the Rights will be effected. 
  
 Section 25. Notice of Certain Events. 
  
 (a) In
case the Company shall propose to effect or permit to occur any Triggering Event or Section 13 Event, the Company shall give notice thereof to each holder of Rights in accordance with Section 26 hereof at least twenty (20) days prior to occurrence
of such Triggering Event or such Section 13 Event. 
  
 (b) In case
any Triggering Event or Section 13 Event shall occur, then, in any such case, the Company shall as soon as practicable thereafter give to each holder of a Rights Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such
event, which shall specify the event and the consequences of the event to holders of Rights under Sections 11(a)(ii) and 13 hereof. 
  

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 Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by the
Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

  
 Epicor Software Corporation 
 18200 Von Karman Avenue 
 Suite 1000 
 Irvine, CA 92612 
  
 with a copy to: 
  
 Wilson Sonsini Goodrich & Rosati 
 Professional Corporation 
 650 Page Mill Road 
 Palo Alto, California 94304-1050 
 Attention: Katharine A. Martin 
  
 Subject to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 
  
 Mellon Investor Services LLC 
 400 South Hope Street 
 4th Floor 
 Los Angeles, CA 90071

 Attention: Ron Lug 
  
 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate shall be sufficiently given
or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company. 
  
 Section 27. Supplements and Amendments. Prior to the occurrence of a Distribution Date, the Company may supplement or amend this Agreement in any
respect without the approval of any holders of Rights and the Rights Agent shall, if the Company so directs, execute such supplement or amendment. From and after the occurrence of a Distribution Date, the Company and the Rights Agent may from time
to time supplement or amend this Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity, (ii) correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions
herein, 
  

 -37- 

 (iii) shorten or lengthen any time period hereunder or (iv) to change or supplement the provisions hereunder in any
manner that the Company may deem necessary or desirable and that shall not adversely affect the interests of the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, this Agreement
may not be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable or (B) any other time period unless such
lengthening is for the purpose of protecting, enhancing or clarifying the rights of, and/or the benefits to, the holders of Rights (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the delivery of a
certificate from an appropriate officer of the Company that states that the proposed supplement or amendment is in compliance with the terms of this Section 27 and, provided such supplement or amendment does not change or increase the Rights
Agent’s duties, liabilities or obligations hereunder, the Rights Agent shall execute such supplement or amendment. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the
holders of Common Shares. 
  
 Section 28. Successors. All
the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
  
 Section 29. Determinations and Actions by the Board of Directors, etc.
For all purposes of this Agreement, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares of which any Person is the
Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board of Directors of the Company shall have the exclusive power and authority to administer
this Agreement and to exercise all rights and powers specifically granted to the Board, or the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power (i) to interpret
the provisions of this Agreement and (ii) to make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company,
the Rights Agent, the holders of the Rights Certificates and all other parties and (y) not subject the Board to any liability to the holders of the Rights. 
  
 Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of the Rights Certificates (and, prior to the Distribution Date, the Common Shares) any legal or equitable right, remedy or claim pursuant to this Agreement; but this Agreement shall be for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, the Common Shares). 
  

 -38- 

 Section 31. Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void or
unenforceable and the Board of Directors of the Company determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth in
Section 23 hereof shall be reinstated and shall not expire until the Close of Business on the tenth day following the date of such determination by the Board of Directors. 
  
 Section 32. Governing Law. This Agreement and each Right and each Rights Certificate issued hereunder shall be deemed
to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State. 

 
 Section 33. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  
 Section 34. Descriptive Headings. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  

 -39- 

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

					
	“COMPANY”	 	Epicor Software Corporation
			
	 	 	By:	  	 /s/    MICHAEL A. PIRAINO

			
	 	 	Name:	  	 Michael A. Piraino

			
	 	 	Title:	  	 Senior Vice President and Chief Financial Officer

  

					
		
	“RIGHTS AGENT”	 	Mellon Investor Services LLC
			
	 	 	By:	  	 /s/    RONALD LUG

			
	 	 	Name:	  	 Ronald Lug

			
	 	 	Title:	  	 Vice President

  

 -40- 

 EXHIBIT A 
  
 FORM OF RIGHTS CERTIFICATE 
  

			
	Certificate No. R-	 	             Rights

  
 NOT EXERCISABLE AFTER
THE EARLIER OF (i) NOVEMBER 13, 2011, (ii) THE DATE TERMINATED BY THE COMPANY OR (iii) THE DATE THE COMPANY EXCHANGES THE RIGHTS PURSUANT TO THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.01 PER RIGHT
ON THE TERMS SET FORTH IN THE AMENDED AND RESTATED PREFERRED STOCK RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF
AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH RIGHTS
AGREEMENT.]* 
  
 RIGHTS CERTIFICATE 
  
 EPICOR SOFTWARE CORPORATION 
  
 This certifies that                     , or
registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement dated as of October 27, 2004, (the
“Rights Agreement”), between Epicor Software Corporation, a Delaware corporation (the “Company”), and Mellon Investor Services LLC, a New Jersey limited liability company (the “Rights
Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M., New York time, on November 13, 
  

	*	The portion of the legend in bracket shall be inserted only if applicable and shall replace the preceding sentence. 

 2011 at the office of the Rights Agent designated for such purpose, or at the office of its successor as Rights Agent,
one one-hundredth (0.01) of a fully paid and non-assessable share of Series A Junior Participating Preferred Stock, par value $0.001 per share (the “Preferred Shares”), of the Company, at an Exercise Price of $96.00
per one-hundredth (0.01) of a Preferred Share (the “Exercise Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate duly executed. The number of
Rights evidenced by this Rights Certificate (and the number of one-hundredths (0.01) of a Preferred Share which may be purchased upon exercise hereof) set forth above are the number and Exercise Price as of October 27, 2004 based on the
Preferred Shares as constituted at such date. As provided in the Rights Agreement, the Exercise Price and the number and kind of Preferred Shares or other securities which may be purchased upon the exercise of the Rights evidenced by this Rights
Certificate are subject to modification and adjustment upon the happening of certain events. 
  
 This Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and
to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights Certificates, which
limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal executive offices of the
Company and the above-mentioned office of the Rights Agent. 
  
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this Rights Certificate (i) may be redeemed by the Company, at its option, at a redemption price of $0.01 per Right or (ii) may be exchanged by the Company in whole
or in part for Common Shares, substantially equivalent rights or other consideration as determined by the Company. 
  
 This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be
exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate amount of securities as the Rights evidenced by the Rights Certificate or Rights Certificates
surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole
Rights not exercised. 
  
 No fractional portion of less than one
one-hundredth (0.01) of a Preferred Share will be issued upon the exercise of any Right or Rights evidenced hereby but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
  
 No holder of this Rights Certificate, as such, shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be
construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold
consent to any 
  

 -2- 

 corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the
Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 
  
 This Rights Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent. 
  
 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. Dated as of
                            ,         . 
  

					
	ATTEST:	 	Epicor Software Corporation
			
	  

	 	By:	 	  

	Secretary	 	 	 	 
	 	 	Its:	 	  

  
 Countersigned: 
  

			
	Mellon Investor Services LLC
	as Rights Agent
		
	By:	 	  

	Its:	 	  

  

 -3- 

 Form of Reverse Side of Rights Certificate 
  
 FORM OF ASSIGNMENT 
  
 (To be executed by the registered holder if such 
 holder desires to transfer the Rights Certificate) 
  
 FOR VALUE RECEIVED
                             hereby sells, assigns and transfers unto  
  

 (Please print name and
address of transferee) 
  

 this
Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                                        
                     Attorney, to transfer the within Rights Certificate on the books of the within-named Company, with full power of
substitution. 
  
 Dated:
                            ,          
  

	
	  

	Signature

  
 Signature Guaranteed:

  
 Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. 

 CERTIFICATE 
  
 The undersigned hereby certifies by checking the appropriate boxes that: 
  
 (1) this Rights Certificate [ ] is [ ] is not being sold, assigned and
transferred by or on behalf of a Person who is or was an Acquiring Person, or an Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); 
  
 (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Rights evidenced by
this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of any such Person. 
  
 Dated:
                            ,          
  

	
	  

	Signature

  
 Signature Guaranteed:

  
 Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. 

 Form of Reverse Side of Rights Certificate — continued 
  
 FORM OF ELECTION TO PURCHASE 
  
 (To be executed if holder desires to 
 exercise the Rights Certificate) 
  
 To:                                      
               
  
 The undersigned hereby irrevocably elects to exercise
                                        
                     Rights represented by this Rights Certificate to purchase the number of one-hundredths (0.01) of a Preferred Share issuable
upon the exercise of such Rights and requests that certificates for such number of one-hundredths (0.01) of a Preferred Share issued in the name of: 
  
 Please insert social security 
 or other identifying number 
  

 (Please print name and
address) 
  

  
 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance remaining of such Rights shall be
registered in the name of and delivered to: 
  
 Please insert social security

 or other identifying number 
  

 (Please print name and address) 
  

  
 Dated:
                            ,          
  

	
	  

	Signature

  
 Signature Guaranteed:

  
 Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. 

 CERTIFICATE 
  
 The undersigned hereby certifies by checking the appropriate boxes that: 
  
 (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights Agreement); 
  
 (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not acquire the Rights evidenced by
this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of any such Person. 
  
 Dated:
                            ,          
  

	
	  

	Signature

  
 Signature Guaranteed:

  
 Signatures must be guaranteed by an “Eligible Guarantor
Institution” (with membership in an approved signature guarantee medallion program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended. 

 Form of Reverse Side of Rights Certificate — continued 
  
 NOTICE 
  
 The signature in the foregoing Forms of Assignment and Election must conform to the name as written upon the face of this
Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 

 EXHIBIT B 
  
 AMENDED AND RESTATED STOCKHOLDER RIGHTS PLAN 
 EPICOR SOFTWARE CORPORATION 
  
 Summary of Rights 
  

			
	 Distribution and
 Transfer of
Rights;
 Rights Certificate:
	  	The Board of Directors has declared a dividend of one Right for each share of Common Stock of Epicor Software Corporation (the “Company”) outstanding. Prior to the
Distribution Date referred to below, the Rights will be evidenced by and trade with the certificates for the Common Stock. After the Distribution Date, the Company will mail Rights certificates to the Company’s stockholders and the Rights will
become transferable apart from the Common Stock.
		
	Distribution Date:	  	Rights will separate from the Common Stock and become exercisable following (a) the tenth business day (or such later date as may be determined by the Company’s Board of Directors) after a
person or group acquires beneficial ownership of 15% or more of the Company’s Common Stock or (b) the tenth business day (or such later date as may be determined by the Company’s Board of Directors) after a person or group announces a
tender or exchange offer, the consummation of which would result in ownership by a person or group of 15% or more of the Company’s Common Stock.
		
	 Preferred Stock
 Purchasable
Upon
 Exercise of Rights:
	  	After the Distribution Date, each Right will entitle the holder to purchase for $96.00 (the “Exercise Price”), a fraction of a share of the Company’s
Preferred Stock with economic terms similar to that of one share of the Company’s Common Stock.
		
	Flip-In:	  	If an acquiror (an “Acquiring Person”) obtains 15% or more of the Company’s Common Stock, then each Right (other than Rights owned by an Acquiring Person or
its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of shares of the Company’s Common Stock having a then-current market value of twice the Exercise Price.
		
	Flip-Over:	  	If, after an Acquiring Person obtains 15% or more of the Company’s Common Stock, (a) the Company merges into another entity, (b) an acquiring entity merges into the Company or (c) the
Company sells more than 50% of the Company’s assets or earning power, then each Right (other than Rights owned by an Acquiring Person or its affiliates) will entitle the holder thereof to purchase, for the Exercise Price, a number of
shares of Common Stock of the person engaging in the transaction having a then current market value of twice the Exercise Price.
		
	Exchange Provision:	  	At any time after the date on which an Acquiring Person obtains 15% or more of the Company’s Common Stock and prior to the acquisition by the Acquiring Person of 50% of the outstanding
Common Stock, a majority of the Board of Directors and the Board of Directors of the Company may exchange the Rights (other than Rights owned by the Acquiring Person or its affiliates), in whole or in part, for shares of Common Stock of the Company
at an exchange ratio of one share of Common Stock per Right (subject to adjustment).

			
	 Redemption of the
 Rights:
	  	Rights will be redeemable at the Company’s option for $0.01 per Right at any time on or prior to the fifth day (or such later date as may be determined by the Company’s Board of
Directors) after public announcement that a Person has acquired beneficial ownership of 15% or more of the Company’s Common Stock (the “Shares Acquisition Date”).
		
	 Expiration of the
 Rights:
	  	The Rights expire on the earliest of (a) November 13, 2011 or (b) exchange or redemption of the Rights as described above.
		
	 Amendment of
 Terms of
Rights:
	  	The terms of the Rights and the Rights Agreement may be amended in any respect without the consent of the Rights holders on or prior to the Distribution Date; thereafter, the terms of the Rights
and the Rights Agreement may be amended without the consent of the Rights holders in order to cure any ambiguities or to make changes which do not adversely affect the interests of Rights holders (other than the Acquiring Person).
		
	Voting Rights:	  	Rights will not have any voting rights.
		
	 Anti-Dilution
 Provisions:
	  	Rights will have the benefit of certain customary anti-dilution provisions.
		
	Taxes:	  	The Rights distribution should not be taxable for federal income tax purposes. However, following an event which renders the Rights exercisable or upon redemption of the Rights, stockholders may
recognize taxable income.

  
 The foregoing is a summary of certain
principal terms of the Stockholder Rights Plan only and is qualified in its entirety by reference to the Amended and Restated Preferred Stock Rights Agreement dated as of October 27, 2004, between the Company and Mellon Investor Services LLC,
as Rights Agent (the “Rights Agreement”). The Rights Agreement may be amended from time to time. A copy of the Rights Agreement was filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement
on Form 8-A/A dated November 1, 2004. A copy of the Rights Agreement is available free of charge from the Company. 
  

 -2-

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