Document:

Supplemental Indenture

 Exhibit 4.2 
 EXECUTION VERSION 
  

 
  

RAIT FINANCIAL TRUST 
 AND 
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Trustee 

First Supplemental Indenture 
 Dated as of March 21, 2011 
 to Indenture Dated as of 

March 21, 2011 
 7.00% Convertible Senior Notes due 2031 
  

 
  

 TABLE OF CONTENTS 

 
  

 

							
	 	  	 	  	PAGE	 
		  	ARTICLE 1	  			
		  	DEFINITIONS	  			
	 Section 1.01.
	  	 Definitions
	  	 	7	  
	 Section 1.02.
	  	 References to Interest
	  	 	16	  
			
		  	ARTICLE 2	  			
		  	ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF
NOTES	  			
			
	 Section 2.01.
	  	 Scope of Supplemental Indenture
	  	 	17	  
	 Section 2.02.
	  	 Designation and Amount
	  	 	17	  
	 Section 2.03.
	  	 Form of Notes
	  	 	17	  
	 Section 2.04.
	  	 Date and Denomination of Notes; Payments of Interest
	  	 	18	  
	 Section 2.05.
	  	 Exchange and Registration of Transfer of Notes; Depositary
	  	 	18	  
	 Section 2.06.
	  	 Cancellation of Surrendered Notes
	  	 	19	  
	 Section 2.07.
	  	 Notice of Defaults
	  	 	20	  
	 Section 2.08.
	  	 Additional Notes; Repurchases
	  	 	20	  
	 Section 2.09.
	  	 CUSIP Numbers
	  	 	20	  
			
		  	ARTICLE 3	  			
		  	SATISFACTION AND DISCHARGE	  			
			
	 Section 3.01.
	  	 Applicability of Article XI of the Base Indenture
	  	 	20	  
	 Section 3.02.
	  	 Satisfaction and Discharge
	  	 	21	  
			
		  	ARTICLE 4	  			
		  	PARTICULAR COVENANTS OF THE COMPANY	  			
			
	 Section 4.01.
	  	 Maintenance of Office Or Agency
	  	 	21	  
	 Section 4.02.
	  	 Reports
	  	 	21	  
	 Section 4.03.
	  	 Stay, Extension and Usury Laws
	  	 	22	  
			
		  	ARTICLE 5	  			
		  	DEFAULTS AND REMEDIES	  			
			
	 Section 5.01.
	  	 Applicability of Article VI of the Base Indenture
	  	 	22	  
	 Section 5.02.
	  	 Events of Default
	  	 	22	  
	 Section 5.03.
	  	 Payments of Notes on Default; Suit Therefor
	  	 	26	  
	 Section 5.04.
	  	 Application of Monies Collected by Trustee
	  	 	27	  
	 Section 5.05.
	  	 Proceedings by Holders of the Notes
	  	 	28	  
	 Section 5.06.
	  	 Proceedings by Trustee
	  	 	29	  

  
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	 Section 5.07.
	  	 Remedies Cumulative and Continuing
	  	29
	 Section 5.08.
	  	 Direction of Proceedings and Waiver of Defaults by Majority of Holders of the Notes
	  	30
	 Section 5.09.
	  	 Notice of Defaults
	  	30
	 Section 5.10.
	  	 Undertaking to Pay Costs
	  	31
			
		  	ARTICLE 6	  	
		  	MEETINGS OF HOLDERS OF THE NOTES	  	
			
	 Section 6.01.
	  	 Rules under Section 13.09 of the Base Indenture
	  	31
	 Section 6.02.
	  	 Purpose of Meetings
	  	31
	 Section 6.03.
	  	 Call of Meetings by Trustee
	  	32
	 Section 6.04.
	  	 Call of Meetings by Company or Holders of the Notes
	  	32
	 Section 6.05.
	  	 Qualifications for Voting
	  	32
	 Section 6.06.
	  	 Regulations
	  	32
	 Section 6.07.
	  	 Voting
	  	33
	 Section 6.08.
	  	 No Delay of Rights by Meeting
	  	33
			
		  	ARTICLE 7	  	
		  	SUPPLEMENTAL INDENTURES	  	
			
	 Section 7.01.
	  	 Applicability of Article IX of the Base Indenture
	  	33
	 Section 7.02.
	  	 Supplemental Indentures Without Consent of Holders of the Notes
	  	34
	 Section 7.03.
	  	 Supplemental Indentures with Consent of Holders of the Notes
	  	35
	 Section 7.04.
	  	 Effect of Supplemental Indentures
	  	36
	 Section 7.05.
	  	 Notation on Notes
	  	36
	 Section 7.06.
	  	 Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee
	  	37
			
		  	ARTICLE 8	  	
		  	CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE	  	
			
	 Section 8.01.
	  	 Applicability of Article X of the Base Indenture
	  	37
	 Section 8.02.
	  	 Company May Consolidate, Etc. on Certain Terms
	  	37
	 Section 8.03.
	  	 Successor Company to Be Substituted
	  	38
	 Section 8.04.
	  	 Opinion of Counsel to Be Given to Trustee
	  	38
			
		  	ARTICLE 9	  	
		  	GUARANTEE OF NOTES	  	
			
	 Section 9.01.
	  	 Applicability of Article XIV of the Base Indenture
	  	39
			
		  	ARTICLE 10	  	
		  	CONVERSION OF NOTES	  	
			
	 Section 10.01.
	  	 Conversion Privilege
	  	39
	 Section 10.02.
	  	 Conversion Procedure; Settlement Upon Conversion
	  	39

  
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	 Section 10.03.
	  	 Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental
Changes
	  	 	43	  
	 Section 10.04.
	  	 Adjustment of Conversion Rate
	  	 	45	  
	 Section 10.05.
	  	 Adjustments of Prices
	  	 	54	  
	 Section 10.06.
	  	 Shares to Be Fully Paid
	  	 	54	  
	 Section 10.07.
	  	 Effect of Recapitalizations, Reclassifications and Changes of the Common Shares
	  	 	54	  
	 Section 10.08.
	  	 Certain Covenants
	  	 	56	  
	 Section 10.09.
	  	 Responsibility of Trustee
	  	 	57	  
	 Section 10.10.
	  	 Notice to Holders of the Notes Prior to Certain Actions
	  	 	57	  
	 Section 10.11.
	  	 Shareholder Rights Plans
	  	 	58	  
	 Section 10.12.
	  	 Ownership Limit; Withholding Tax
	  	 	58	  
			
		  	ARTICLE 11	  			
		  	REPURCHASE OF NOTES AT OPTION OF HOLDERS	  			
			
	 Section 11.01.
	  	 Repurchase at Option of Holders of the Notes
	  	 	59	  
	 Section 11.02.
	  	 Repurchase at Option of Holders of the Notes Upon a Fundamental Change
	  	 	61	  
	 Section 11.03.
	  	 Withdrawal of Repurchase Notice or Fundamental Change Repurchase Notice
	  	 	64	  
	 Section 11.04.
	  	 Deposit of Repurchase Price or Fundamental Change Repurchase Price
	  	 	64	  
	 Section 11.05.
	  	 Covenant to Comply with Applicable Laws Upon Repurchase of Notes
	  	 	65	  
			
		  	ARTICLE 12	  			
		  	OPTIONAL REDEMPTION	  			
			
	 Section 12.01.
	  	 Applicability of Article III of the Base Indenture
	  	 	65	  
	 Section 12.02.
	  	 Optional Redemption
	  	 	66	  
	 Section 12.03.
	  	 Notice of Optional Redemption; Selection of Notes
	  	 	66	  
	 Section 12.04.
	  	 Payment of Notes Called for Redemption
	  	 	67	  
	 Section 12.05.
	  	 Restrictions on Redemption
	  	 	68	  
			
		  	ARTICLE 13	  			
		  	MISCELLANEOUS PROVISIONS	  			
			
	 Section 13.01.
	  	 Governing Law
	  	 	68	  
	 Section 13.02.
	  	 No Security Interest Created
	  	 	68	  
	 Section 13.03.
	  	 Benefits of Indenture
	  	 	68	  
	 Section 13.04.
	  	 Effect of Headings
	  	 	68	  
	 Section 13.05.
	  	 Supplemental Indenture May Be Executed In Counterparts
	  	 	68	  
	 Section 13.06.
	  	 Severability
	  	 	69	  
	 Section 13.07.
	  	 Elections Under Base Indenture; Ratification of Base Indenture
	  	 	69	  
	 Section 13.08.
	  	 Waiver Of Jury Trial
	  	 	69	  
	 Section 13.09.
	  	 Force Majeure
	  	 	69	  
	 Section 13.10.
	  	 U.S.A. Patriot Act
	  	 	69	  
	 Section 13.11.
	  	 Calculations
	  	 	69	  

  
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 EXHIBIT 

 

							
	 Exhibit A
	  	 Form of Note
	  	 	A-1	  

  
 iv 

 FIRST SUPPLEMENTAL INDENTURE dated as of March 21, 2011 (this “Supplemental
Indenture”) between RAIT Financial Trust, a Maryland real estate investment trust, as issuer (the “Company”, as more fully set forth in Section 1.01) and Wells Fargo Bank, National Association, a national banking
association organized under the laws of the United States, as trustee (the “Trustee”, as more fully set forth in Section 1.01), supplementing the Indenture dated as of March 21, 2011, between the Company and the Trustee
(the “Base Indenture” and, as amended and supplemented by this Supplemental Indenture, and as it may be further amended or supplemented from time to time, the “Indenture”). 

W I T N E S S E T H: 
 WHEREAS, the Company executed and delivered the Base Indenture to the Trustee to provide, among other things, for the issuance, from time to time, of the Company’s Debt Securities, in an unlimited
aggregate principal amount, in one or more series to be established by the Company under, and authenticated and delivered as provided in, the Base Indenture; 
 WHEREAS, Section 9.01(k) of the Base Indenture provides for the Company and the Trustee to enter into an indenture supplemental to the Base Indenture to establish the form and terms of Debt
Securities of any series as contemplated by Section 2.01 and Section 2.03 of the Base Indenture without the consent of Holders of any Debt Securities; 
 WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of a single series of Debt Securities designated as its 7.00% Convertible Senior Notes due 2031 (the
“Notes”), initially in an aggregate principal amount not to exceed $115,000,000, and in order 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 Supplemental Indenture; 
 WHEREAS, the Form of Note, the Form of Notice of Conversion, the
Form of Fundamental Change Repurchase Notice, the Form of Purchase Notice and the Form of Assignment and Transfer to be borne by the Notes are to be substantially in the forms hereinafter provided; 

WHEREAS, the conditions set forth in the Base Indenture for the execution and delivery of this Supplemental Indenture have been complied
with; and 
 WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and authenticated and
delivered by the Trustee or a duly authorized authenticating agent, as in this Supplemental Indenture provided, the valid, binding and legal obligations of the Company, and this Supplemental Indenture a valid agreement according to its terms, have
been done and performed, and the execution of this Supplemental Indenture and the issue hereunder of the Notes have in all respects been duly authorized. 
 NOW, THEREFORE, THIS SUPPLEMENTAL 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. For all purposes of the Indenture, except as otherwise expressly provided or unless the context otherwise requires: 

(a) the terms defined in this Article 1 shall have the respective meanings assigned to them in this Article 1 and include the plural as
well as the singular; 
 (b) all words, terms and phrases defined in the Base Indenture (but not otherwise defined herein) shall
have the same meanings as in the Base Indenture; and 
 (c) the words “herein,” “hereof” and
“hereunder” and other words of similar import refer to the Indenture as a whole and not to any particular Article, Section or other subdivision. 
 “Additional Shares” shall have the meaning specified in Section 10.03(a). 
 “Agent” means any Registrar, Paying Agent or Conversion Agent or any successor entity thereto. 
 “Annual Dividend Period” shall have the meaning specified in Section 10.04(d). 
 “Base Indenture” has the meaning specified in the first paragraph of this Supplemental Indenture. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Trustees, and to be in full
force and effect on the date of such certification, and delivered to the Trustee. 
 “Business Day” means, with
respect to any Note, any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed. 

“Capital Stock” shall mean “capital stock” as defined in the Base Indenture. 

“Cash Settlement” shall have the meaning specified in Section 10.02(a). 

“Charter” means the Declaration of Trust of the Company, as amended or supplemented from time to time in accordance with
the terms thereof and applicable law. 
 “Clause A Distribution” shall have the meaning specified in
Section 10.04(c). 

  
 7 

 “Clause B Distribution” shall have the meaning specified in
Section 10.04(c). 
 “Clause C Distribution” shall have the meaning specified in Section 10.04(c).

 “close of business” means 5:00 p.m. (New York City time). 

“Combination Settlement” shall have the meaning specified in Section 10.02(a). 

“Common Equity” of any Person means capital stock of such Person that is generally entitled (a) to vote in the
election of directors of such Person or (b) if such Person is not a corporation, to vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or policies of such Person.

 “Common Shares” mean the common shares of beneficial interest of the Company, par value $0.01 per share, at
the date of this Supplemental Indenture, subject to Section 10.07. 
 “Company” shall have the meaning
specified in the first paragraph of this Supplemental Indenture, and subject to the provisions of Article 8, shall include its successors and assigns. 
 “Company Notice” shall have the meaning specified in Section 11.01(a). 
 “Continuing Trustee” means a trustee who either was a member of the Board of Trustees on March 15, 2011 or who becomes a member of the Board of Trustees subsequent to that date and
whose election, appointment or nomination for election by the shareholders of the Company is duly approved by a majority of the continuing trustees on the Board of Trustees at the time of such approval, either by a specific vote or by approval of
the proxy statement issued by the Company on behalf of the entire Board of Trustees in which such individual is named as nominee for trustee. Solely for purposes of this definition, the phrase “or any authorized committee of the Board of
Trustees of the Company or any Trustees and/or officers of the Company to whom such Board of Trustees or such committee shall have duly designated its authority to act hereunder” of the definition of Board of Trustees shall be disregarded.

 “Conversion Agent” means the office or agency maintained by the Company in the Place of Payment pursuant to
Section 4.01 of the Base Indenture where the Notes may be surrendered for conversion. 
 “Conversion Date”
shall have the meaning specified in Section 10.02(c). 
 “Conversion Obligation” shall have the meaning
specified in Section 10.01(a). 
 “Conversion Rate” shall have the meaning specified in
Section 10.01(a). 
 “Corporate Trust Office” means the principal office of the Trustee at which at any
time its corporate trust business shall be administered, which office at the date hereof is located at 45 Broadway, 14th Floor, New York, New York 10006, Attention: Corporate Trust Services—Administrator for RAIT Financial Trust, or such other
address as the Trustee may designate from time to time by notice to the Holders of the Notes and the Company, or the principal corporate 

  
 8 

 
trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders of the Notes and the Company). 

“Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the Observation Period, 5% of the
product of (a) the Conversion Rate on such Trading Day and (b) the Daily VWAP on such Trading Day. 
 “Daily
Measurement Value” means the Specified Dollar Amount (if any), divided by 20. 
 “Daily Settlement
Amount,” for each of the 20 consecutive Trading Days during the Observation Period, shall consist of: 

(a) cash equal to the lesser of (i) the Daily Measurement Value and (ii) the Daily Conversion Value; and

 (b) if the Daily Conversion Value exceeds the Daily Measurement Value, a number of Common Shares equal to
(i) the difference between the Daily Conversion Value and the Daily Measurement Value, divided by (ii) the Daily VWAP for such Trading Day. 
 “Daily VWAP” means, for each of the 20 consecutive Trading days during the applicable Observation Period, the per share volume-weighted average price as displayed under the heading
“Bloomberg VWAP” on Bloomberg page “RAS <equity> AQR” (or its equivalent successor if such page is not available) in respect of the period from the scheduled open of trading until the scheduled close of trading of the
primary trading session on such Trading Day (or if such volume-weighted average price is unavailable, the market value of one Common Share on such Trading Day determined, using a volume-weighted average method, by a nationally recognized independent
investment banking firm retained for this purpose by the Company). The “Daily VWAP” shall be determined without regard to after hours trading or any other trading outside of the regular trading session trading hours. 

“Defaulted Amounts” means any amounts on any Note (including, without limitation, the Redemption Price, Repurchase
Price, Fundamental Change Repurchase Price, principal and any interest and Defaulted Interest) that are payable but are not punctually paid or duly provided for. 
 “Distributed Property” shall have the meaning specified in Section 10.04(c). 
 “Effective Date” shall have the meaning specified in Section 10.03(b). 
 “Event of Default” shall have the meaning specified in Section 5.02. 
 “Ex-Dividend Date” means the first date on which the Common Shares trade on the applicable exchange or in the applicable market, regular way, without the right to receive the issuance or
distribution in question, from the Company or, if applicable, from the seller of Common Shares on such exchange or market (in the form of due bills or otherwise) as determined by such exchange or market. 

  
 9 

 “Form of Assignment and Transfer” shall mean the “Form of Assignment
and Transfer” attached as Attachment 4 to the Form of Note attached hereto as Exhibit A. 
 “Form of Fundamental
Change Repurchase Notice” shall mean the “Form of Fundamental Change Repurchase Notice” attached as Attachment 2 to the Form of Note attached hereto as Exhibit A. 

“Form of Notice of Conversion” shall mean the “Form of Notice of Conversion” attached as Attachment 1 to the
Form of Note attached hereto as Exhibit A. 
 “Form of Repurchase Notice” shall mean the “Form of
Repurchase Notice” attached as Attachment 3 to the Form of Note attached hereto as Exhibit A. 
 “Fundamental
Change” shall be deemed to have occurred at the time after the Notes are originally issued if any of the following occurs: 
 (a) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than the Company, its Subsidiaries and the employee benefit plans of the Company and its
Subsidiaries, has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the Company’s Common Equity representing more than 50% of the voting power of the Company’s Common Equity;

 (b) the consummation of (A) any recapitalization, reclassification or change of the Common Shares (other
than changes resulting from a subdivision or combination) as a result of which the Common Shares would be converted into, or exchanged for, stock, other securities, other property or assets; (B) any share exchange, consolidation or merger of
the Company pursuant to which the Common Shares shall be converted into cash, securities or other property; or (C) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated
assets of the Company and its Subsidiaries, taken as a whole, to any Person other than one of the Company’s Subsidiaries; provided, however, that a transaction described in clause (B) in which the holders of all classes of the
Company’s Common Equity immediately prior to such transaction own, directly or indirectly, more than 50% of all classes of Common Equity of the continuing or surviving corporation or transferee or the parent thereof immediately after such
transaction shall not be a Fundamental Change pursuant to this clause (b); 
 (c) Continuing Trustees cease to
constitute at least a majority of the Board of Trustees; 
 (d) the shareholders of the Company approve any plan
or proposal for the liquidation or dissolution of the Company; or 
 (e) the Common Shares (or other common stock
underlying the Notes) cease to be listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors); 

  
 10 

 provided, however, that a transaction or transactions described in clause (b) above shall
not constitute a Fundamental Change, if at least 90% of the consideration received or to be received by the common shareholders of the Company, excluding cash payments for fractional shares, in connection with such transaction or transactions
consists of shares of Publicly Traded Securities, and as a result of such transaction or transactions the Notes become convertible into such consideration, excluding cash payments for fractional shares (subject to the provisions of
Section 10.02(a)). 
 “Fundamental Change Company Notice” shall have the meaning specified in
Section 11.02(b). 
 “Fundamental Change Repurchase Date” shall have the meaning specified in
Section 11.02(a). 
 “Fundamental Change Repurchase Notice” shall have the meaning specified in
Section 11.02(c)(i). 
 “Fundamental Change Repurchase Price” shall have the meaning specified in
Section 11.02(a). 
 “Global Note” shall have the meaning specified in Section 2.05(c). 

“Indenture” has the meaning specified in the first paragraph of this Supplemental Indenture. 

“Initial Dividend Period” shall have the meaning specified in Section 10.04(d). 

“Initial Dividend Threshold” shall have the meaning specified in Section 10.04(d). 

“Interest Payment Date” means each April 1 and October 1 of each year, beginning on October 1, 2011.

 “Last Reported Sale Price” of the Common Shares on any date means the closing sale price per share (or if no
closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions for the principal U.S. national
or regional securities exchange on which the Common Shares are traded. If the Common Shares are not listed for trading on a U.S. national or regional securities exchange on the relevant date, the “Last Reported Sale Price” shall be
the last quoted bid price for the Common Shares in the over-the-counter market on the relevant date as reported by Pink OTC Markets Inc. or a similar organization. If the Common Shares are not so quoted, the “Last Reported Sale
Price” shall be the average of the mid-point of the last bid and ask prices for the Common Shares on the relevant date from each of at least three nationally recognized independent investment banking firms selected by the Company for this
purpose. 
 “Legal Holiday” means a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York
is authorized or required by law or executive order to close or be closed. 

  
 11 

 “Make-Whole Fundamental Change” means any transaction or event that
constitutes a Fundamental Change (as defined above and determined after giving effect to any exceptions to or exclusions from such definition, but without regard to the proviso in clause (b) of the definition thereof). 

“Market Disruption Event” means (a) a failure by the primary U.S. national or regional securities exchange or
market on which the Common Shares are listed or admitted for trading to open for trading during its regular trading session or (b) the occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for the Common
Shares for more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in
the Common Shares or in any options, contracts or future contracts relating to the Common Shares. 
 “Maturity
Date” means April 1, 2031. 
 “Merger Common Stock” shall have the meaning specified in
Section 10.07(e)(i). 
 “Merger Event” shall have the meaning specified in Section 10.07(a).

 “Merger Valuation Percentage” for any Merger Event shall be equal to (x) the arithmetic average of the
Last Reported Sale Prices of one share of such Merger Common Stock over the relevant Merger Valuation Period (determined as if references to “Common Shares” in the definition of “Last Reported Sale Price” were references to the
“Merger Common Stock” for such Merger Event), divided by (y) the arithmetic average of the Last Reported Sale Prices of one Common Share over the relevant Merger Valuation Period. 

“Merger Valuation Period” for any Merger Event means the five consecutive Trading Day period immediately preceding, but
excluding, the effective date for such Merger Event. 
 “Note” or “Notes” shall have the
meaning specified in the first paragraph of the recitals of this Supplemental Indenture. 
 “Note Custodian”
means the Trustee, as custodian for The Depository Trust Company, with respect to the Global Notes, or any successor entity thereto. 
 “Notice of Conversion” shall have the meaning specified in Section 10.02(b). 
 “Observation Period” with respect to any Note surrendered for conversion means: (i) subject to clause (ii), if the relevant Conversion Date occurs other than during the period
beginning on, and including, January 1, 2016 and ending on, but excluding, April 1, 2016, the 20 consecutive Trading Day period beginning on, and including, the second Trading Day after such Conversion Date; (ii) if the relevant
Conversion Date occurs on or after the date of the Company’s issuance of a Redemption Notice with respect to the Notes pursuant to Section 12.03 and prior to the relevant Redemption Date, the 20 consecutive Trading Days beginning on, and
including, the 22nd Scheduled Trading Day immediately preceding such Redemption Date; and (iii) if the relevant Conversion Date occurs during the period beginning on, and including, 

  
 12 

 
January 1, 2016 and ending on, but excluding, April 1, 2016, the 20 consecutive Trading Days beginning on, and including, the 22nd Scheduled Trading Day immediately preceding
April 1, 2016. 
 “open of business” means 9:00 a.m. (New York City time). 

“Optional Redemption” shall have the meaning specified in Section 12.01. 

“Outstanding,” when used with reference to Notes, shall mean, as of any particular time, all Notes authenticated and
delivered by the Trustee under this Supplemental Indenture, except: 
 (a) Notes theretofore canceled by the
Trustee or delivered to the Trustee for cancellation; 
 (b) Notes, or portions thereof, for whose payment or
redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for
the Holders of such Notes; provided, that, if such Notes are to be redeemed, a Redemption Notice has been duly given pursuant to the Indenture or provision therefor satisfactory to the Trustee has been made; and 

(c) Notes that have been paid pursuant to Section 2.09 of the Base Indenture or Notes in lieu of which, or in
substitution for which, other Notes shall have been authenticated and delivered pursuant to the terms of Section 2.09 of the Base Indenture unless proof satisfactory to the Trustee is presented that any such Notes are held by protected
purchasers in due course; 
 (d) Notes converted pursuant to Article 10 and required to be canceled pursuant to
Section 2.10 of the Base Indenture; and 
 (e) Notes repurchased by the Company pursuant to the penultimate
sentence of Section 2.08; 
 provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company or any other obligor upon the Notes or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in conclusively relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which a Trust
Officer actually knows to be so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with
respect to such Notes and that the pledgee is not the Company or any other obligor upon the Notes or an Affiliate of the Company or of such other obligor. 

  
 13 

 “Paying Agent” means the office or agency maintained by the Company in the
Place of Payment pursuant to Section 4.02 of the Base Indenture where the Notes may be presented or surrendered for payment or surrendered for transfer or exchange and where notices and demands to or upon the Company in respect of the Notes and
the Indenture may be served. 
 “Physical Notes” means permanent certificated Notes in registered form issued
in denominations of $1,000 principal amount and multiples thereof. 
 “Physical Settlement” shall have the
meaning specified in Section 10.02(a). 
 “Place of Payment” means, with respect to the Notes, the Borough
of Manhattan in the City of New York, New York. 
 “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 2.09 of the Base Indenture in lieu of or in
exchange for a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note that it replaces. 
 “Prospectus Supplement” means the preliminary prospectus supplement dated March 14, 2011, as supplemented by the pricing term sheet dated March 15, 2011, relating to the
offering and sale of the Notes. 
 “Publicly Traded Securities” means shares of common stock that are listed or
quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) or will be so listed or quoted when issued or exchanged in connection with a Fundamental Change
described in clause (b) of the definition thereof. 
 “Record Date” means, with respect to any dividend,
distribution or other transaction or event in which the holders of Common Shares (or other security) have the right to receive any cash, securities or other property or in which the Common Shares (or other applicable security) is exchanged for or
converted into any combination of cash, securities or other property, the date fixed for determination of shareholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Trustees, by statute, by
contract or otherwise). 
 “Redemption Date” shall have the meaning specified in Section 12.03(a).

 “Redemption Notice” shall have the meaning specified in Section 12.03(a). 

“Redemption Price” shall have the meaning specified in Section 12.01. 

“Reference Property” shall have the meaning specified in Section 10.07(a). 

“Regular Record Date,” with respect to any Interest Payment Date, shall mean the March 15 or September 15
(whether or not such day is a Business Day) immediately preceding the applicable April 1 or October 1 Interest Payment Date, respectively. 

  
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 “REIT” means a real estate investment trust. 

“Repurchase Date” shall have the meaning specified in Section 11.01(a). 

“Repurchase Expiration Time” shall have the meaning specified in Section 11.01(a). 

“Repurchase Notice” shall have the meaning specified in Section 11.01(a). 

“Repurchase Price” shall have the meaning specified in Section 11.01(a). 

“Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the principal U.S. national or regional
securities exchange or market on which the Common Shares are listed or admitted for trading. If the Common Shares are not so listed or admitted for trading, “Scheduled Trading Day” means a Business Day. 

“Settlement Amount” has the meaning specified in Section 10.02(a)(v). 

“Settlement Blocker” has the meaning specified in Section 10.12(a). 

“Settlement Method” means, with respect to any conversion of Notes, Physical Settlement, Cash Settlement or Combination
Settlement, as elected (or deemed to have been elected) by the Company. 
 “Settlement Notice” has the meaning
specified in Section 10.02(a)(iv). 
 “Share Price” shall have the meaning specified in
Section 10.03(b). 
 “Significant Subsidiary” means, as of any date of determination, a Subsidiary of the
Company that would constitute a “significant subsidiary” of the Company as such term is defined under Rule 1-02(w) of Regulation S-X of the SEC as in effect on the date of this Supplemental Indenture; provided that it shall not
include (a) any entity consolidated by the Company where the Company holds 50% or less of the voting power of such entity or (b) any bankruptcy remote, special purpose entity, used to securitize assets and consolidated by the Company,
whose indebtedness is without recourse to the Company. 
 “Special Interest” means all amounts, if any, payable
pursuant to Section 5.02. 
 “Specified Dollar Amount” means the maximum cash amount per $1,000 principal
amount of Notes to be received upon conversion as specified in the Settlement Notice related to any converted Notes. 

“Spin-Off” shall have the meaning specified in Section 10.04(c). 

“Successor Company” shall have the meaning specified in Section 8.02(a). 

“Supplemental Indenture” has the meaning specified in the first paragraph of this Supplemental Indenture. 

  
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 “Trading Day” means a day on which (i) trading in the Common Shares
(or other security for which a Last Reported Sale Price must be determined) generally occurs on The New York Stock Exchange or, if the Common Shares (or such other security) are not then listed on The New York Stock Exchange, on the principal other
U.S. national or regional securities exchange on which the Common Shares (or such other security) are then listed or, if the Common Shares (or such other security) are not then listed on a U.S. national or regional securities exchange, on the
principal other market on which the Common Shares (or such other security) are then traded and (ii) a Last Reported Sale Price for the Common Shares (or such other security) is available on such securities exchange or market; provided
that if the Common Shares (or such other security) are not so listed or traded, “Trading Day” means a Business Day; and provided, further, that for purposes of determining amounts due upon conversion only,
“Trading Day” means a day on which (x) there is no Market Disruption Event and (y) trading in the Common Shares (or such other security) generally occurs on The New York Stock Exchange or, if the Common Shares (or such
other security) are not then listed on The New York Stock Exchange, on the principal other U.S. national or regional securities exchange on which the Common Shares (or such other security) are then listed or, if the Common Shares (or such other
security) are not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Shares (or such other security) are then listed or admitted for trading, except that if the Common Shares (or such
other security) are not so listed or admitted for trading, “Trading Day” means a Business Day. 

“Trigger Event” shall have the meaning specified in Section 10.04(c). 

“Trust Officer” means any officer within the corporate trust department of the Trustee, including any vice president,
assistant vice president, trust officer, assistant trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of the Indenture. 

“Trustee” means the Person named as the “Trustee” in the first paragraph of this Supplemental Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder. 

“unit of Reference Property” shall have the meaning specified in Section 10.07(a). 

“Valuation Period” shall have the meaning specified in Section 10.04(c). 

Section 1.02. References to Interest. Unless the context otherwise requires, any reference to interest on, or in respect of, any
Note in the Indenture shall be deemed to include Special Interest if, in such context, Special Interest is, was or would be payable pursuant to Section 5.02. Unless the context otherwise requires, any express mention of Special Interest in any
provision hereof shall not be construed as excluding Special Interest in those provisions hereof where such express mention is not made. 

  
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 ARTICLE 2 
 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES 

Section 2.01. Scope of Supplemental Indenture. This Supplemental Indenture supplements the provisions of the Base Indenture, to
which provisions reference is hereby made. The changes, modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and shall only govern the terms of, the Notes, which may be
issued from time to time, and shall not apply to any other Debt Securities that may be issued under the Base Indenture unless a supplemental indenture with respect to such other Debt Securities specifically incorporates such changes, modifications
and supplements. The provisions of this Supplemental Indenture shall supersede any conflicting provisions in the Base Indenture; provided that no provision of this Supplemental Indenture shall be construed (a) to supersede any obligation
that the Company would otherwise have under the Base Indenture to deliver a Company Order, an Officer’s Certificate or an Opinion of Counsel to the Trustee, or (b) to limit any right that the Trustee would otherwise have under the Base
Indenture to request and conclusively rely on a Company Order, an Officer’s Certificate or an Opinion of Counsel.  

Section 2.02. Designation and Amount. The Notes are hereby created and authorized as a single series of Debt Securities under the
Base Indenture. The Notes shall be designated as the “7.00% Convertible Senior Notes due 2031.” The aggregate principal amount of Notes that may be authenticated and delivered under the Indenture is initially limited to $115,000,000,
subject to Section 2.08 and except for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of other Notes pursuant to Section 2.07 and Section 2.09 of the Base Indenture and
Section 7.05, Section 10.02 and Section 11.04 of this Supplemental Indenture. 
 Section 2.03. Form of
Notes. The Notes shall be substantially in the form set forth in Exhibit A, the terms and provisions of which shall constitute, and are hereby expressly incorporated in and made a part of the Indenture. To the extent applicable, the Company and
the Trustee, by their execution and delivery of the Indenture, expressly agree to such terms and provisions and to be bound thereby. 
 Any Global Note may be endorsed with or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of the Indenture as may be required by the Note
Custodian or the Depositary, or as may be required to comply with any applicable law or any regulation thereunder or with the rules and regulations of any securities exchange or automated quotation system upon which the Notes may be listed or traded
or designated for issuance or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Notes are subject. 
 Each Global Note shall represent such principal amount of the Outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate principal amount of Outstanding Notes
from time to time endorsed thereon and that the aggregate principal 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 the 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 Note Custodian, at the written direction of the Company, in such
manner and upon written instructions given by the 

  
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Holder of such Notes in accordance with the Indenture. Payment of principal (including the Redemption Price, Repurchase Price and the Fundamental Change Repurchase Price, if applicable) of, and
accrued and unpaid interest on, the Global Note shall be made to the Holder of such Note on the date of payment, unless a record date or other means of determining Holders of the Notes eligible to receive payment is provided for herein. 

Section 2.04. Date and Denomination of Notes; Payments of Interest. (a) The Notes shall be issuable in registered form
without coupons in denominations of $1,000 principal amount and integral multiples thereof. Each Note shall bear interest from the date specified on the face of the form of Note attached as Exhibit A hereto. Accrued interest on the Notes shall be
computed on the basis of a 360-day year composed of twelve 30-day months. 
 (b) This Section 2.04(b) shall replace the
second sentence of Section 4.01 of the Base Indenture and Section 2.12(a) of the Base Indenture in its entirety and all references to such provisions shall be deemed, for the purposes of the Notes, to be references to this
Section 2.04(b). The Person in whose name any Note (or its Predecessor Note) is registered on the Debt Security Register at the close of business on any Regular Record Date with respect to any Interest Payment Date shall be entitled to receive
the interest payable on such Interest Payment Date. Interest shall be payable at the office or agency of the Company maintained by the Company for such purposes, which shall initially be the Corporate Trust Office. The Company shall pay interest
(i) on any Physical Notes (A) to Holders of the Notes having an aggregate principal amount of $5,000,000 or less, by check mailed to the Holders of these Notes at their address as it appears in the Debt Security Register and (B) to
Holders of the Notes having an aggregate principal amount of more than $5,000,000, either by check mailed to the Holders of these Notes or upon application by a Holder of the Notes to the Registrar not later than the relevant Regular Record Date, by
wire transfer in immediately available funds to such Holder’s account within the United States, which application shall remain in effect until such Holder notifies, in writing, the Registrar to the contrary or (ii) on any Global Note by
wire transfer of immediately available funds to the account of the Depositary or its nominee. 
 Section 2.05. Exchange and
Registration of Transfer of Notes; Depositary. (a) For the purposes of the Notes, the reference to “transfer, exchange or payment” in the first paragraph of Section 2.07(b) of the Base Indenture shall be deemed to include a
repurchase or conversion of Notes. 
 (b) This Section 2.05(b) shall replace the fourth paragraph of Section 2.07(b)
of the Base Indenture and all references to such paragraph shall be deemed, for the purposes of the Notes, to be references to this Section 2.05(b). The Company shall not be required (i) to issue, register the transfer of or exchange any
Notes either during a period beginning 15 Business Days prior to the mailing of a Redemption Notice and ending on the close of business on the day of such mailing, or between a Regular Record Date and the next succeeding Interest Payment Date,
(ii) to register the transfer of or exchange of (A) any Notes surrendered for conversion or, if a portion of any Note is surrendered for conversion, such portion thereof surrendered for conversion in accordance with Article 10,
(B) any Notes, or a portion of any Note, surrendered for repurchase (and not withdrawn) in accordance with Article 11, or (C) any Notes selected for Redemption in accordance with Article 12. 

  
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 (c) So long as the Notes are eligible for book-entry settlement with the Depositary, unless
otherwise required by law, all Notes shall be represented by one or more Global Securities (each, a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary. The transfer and exchange of beneficial
interests in a Global Note that does not involve the issuance of a Physical Note, shall be effected through the Depositary (but not the Trustee or the Note Custodian) in accordance with the Indenture (including the restrictions on transfer set forth
herein) and the procedures of the Depositary therefor. 
 (d) The Depositary shall be a clearing agency registered under the
Exchange Act. The Company initially appoints The Depository Trust Company to act as Depositary with respect to each Global Note. Initially, each Global Note shall be issued to the Depositary, registered in the name of Cede & Co., as the
nominee of the Depositary, and deposited with the Trustee as custodian for Cede & Co. Neither the Trustee nor any Agent shall have any responsibility or liability for any actions taken or not taken by the Depositary. 

(e) This Section 2.05(e) shall replace Section 2.15(c)(ii) of the Base Indenture and all references to such provision shall be
deemed, for the purposes of the Notes, to be references to this Section 2.05(e). If an Event of Default with respect to the Notes has occurred and is continuing and a beneficial owner of the Notes requests that its Notes be issued as Physical
Notes, the Company shall execute, and the Trustee, upon receipt of an Officers’ Certificate and a Company Order for the authentication and delivery of Notes, shall authenticate and deliver Physical Notes to each such beneficial owner of the
related Notes (or a portion thereof) in an aggregate principal amount equal to the principal amount of such Global Note, in exchange for such Global Note, and upon delivery of the Global Note to the Trustee such Global Note shall be canceled.

 (f) At such time as all interests in a Global Note have been converted, canceled, repurchased or transferred, such Global
Note shall be, upon receipt thereof, canceled by the Trustee in accordance with customary procedures and existing instructions between the Depositary and the Note Custodian. At any time prior to such cancellation, if any interest in a Global Note is
exchanged for Physical Notes, converted, canceled, repurchased or transferred to a transferee who receives Physical Notes therefor or any Physical Note is exchanged or transferred for part of such Global Note, the principal amount of such Global
Note shall, in accordance with the standing procedures and instructions existing between the Depositary and the Note Custodian, be appropriately reduced or increased, as the case may be, and an endorsement shall be made on such Global Note, by the
Trustee or the Note Custodian, at the direction of the Trustee, to reflect such reduction or increase. 
 (g) Each certificate
representing any Common Shares issued upon conversion of any Notes shall bear the legend required pursuant to Article VII of the Charter. 
 Section 2.06. Cancellation of Surrendered Notes. Any Notes surrendered for repurchase (including pursuant to Article 11) or conversion shall, if surrendered to the Company, any Paying Agent or a
Registrar, be delivered to the Trustee for cancellation by it, or if surrendered to the Trustee, shall be canceled by it in accordance with its customary procedures, and no Notes shall be issued in lieu thereof except as expressly permitted by any
provision of the Indenture. Section 2.10 of the Base Indenture shall apply to all canceled Notes. 

  
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 Section 2.07. Notice of Defaults. This Section 2.07 shall replace
Section 4.06(b) of the Base Indenture and all references to Section 4.06(b) of the Base Indenture shall be deemed, for the purposes of the Notes, to be references to this Section 2.07. The Company shall, so long as any of the Notes
are Outstanding, deliver to the Trustee promptly in writing upon becoming aware of the occurrence of any Default or Event of Default under the Indenture, an Officers’ Certificate specifying such Default or Event of Default, the status thereof
and what action the Company is taking or proposes to take with respect thereto. 
 Section 2.08. Additional Notes;
Repurchases. The Company may, at any time and without the consent of the Holders of the Notes and notwithstanding Section 2.01, reopen the Indenture and issue additional Notes hereunder with the same terms as the Notes initially issued
hereunder in an unlimited aggregate principal amount; provided that if the additional Notes are not fungible with the Notes initially issued hereunder for U.S. federal income tax purposes, the additional Notes shall have a separate CUSIP
number. Prior to the issuance of any such additional Notes, the Company shall deliver to the Trustee a Company Order, an Officers’ Certificate and an Opinion of Counsel, such Officers’ Certificate and Opinion of Counsel to cover such
matters, in addition to those required by Section 13.05 of the Base Indenture, as the Trustee shall reasonably request. In addition, the Company may, to the extent permitted by law, and directly or indirectly (regardless of whether such Notes
are surrendered to the Company), repurchase Notes in the open market or otherwise, whether by the Company or its Subsidiaries or through a private or public tender or exchange offer or through counterparties to private agreements, including by
cash-settled swaps or other derivatives. The Company shall cause any Notes so repurchased (other than Notes repurchased pursuant to cash-settled swaps or other derivatives) to be surrendered to the Trustee for cancellation in accordance with
Section 2.10 of the Base Indenture. 
 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 Redemption Notices as a convenience to Holders; provided that any such Redemption 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 Redemption Notice 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 shall promptly notify the Trustee in writing of any change in the CUSIP numbers. 
 ARTICLE
3 
 SATISFACTION AND DISCHARGE 

Section 3.01. Applicability of Article XI of the Base Indenture. Sections 11.02 and 11.03 of the Base Indenture shall not apply to
the Notes. Instead, the satisfaction and discharge provisions set forth in this Article 3 shall, with respect to the Notes, supersede in their entirety Sections 11.02 and 11.03 of the Base Indenture and all references in the Base Indenture to
Sections 11.02 and 11.03 thereof and satisfaction and discharge provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be references to this Article 3 and the satisfaction and discharge provisions set forth in this
Article 3. 

  
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 Section 3.02. Satisfaction and Discharge. This Supplemental Indenture shall upon
request of the Company contained in an Officers’ Certificate cease to be of further effect, and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Supplemental
Indenture, when (a) (i) all Notes theretofore authenticated and delivered (other than (x) Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.09 of the Base Indenture and
(y) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 11.05 of the Base
Indenture) have been delivered to the Trustee for cancellation; or (ii) the Company has deposited with the Trustee or delivered to Holders of the Notes, as applicable, after the Notes have become due and payable, whether at the Maturity Date,
any Repurchase Date, any Fundamental Change Repurchase Date, upon conversion or otherwise, cash or cash, Common Shares or a combination thereof, as applicable, solely to satisfy the Company’s Conversion Obligation, sufficient to pay all of the
Outstanding Notes and all other sums due and payable under this Supplemental Indenture by the Company; and (b) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Supplemental Indenture have been complied with. Notwithstanding the satisfaction and discharge of this Supplemental Indenture, the obligations of the Company to the
Trustee under Section 7.06 of the Base Indenture shall survive. 
 ARTICLE 4 

PARTICULAR COVENANTS OF THE COMPANY 

Section 4.01. Maintenance of Office Or Agency. (a) In addition to the offices or agencies required to be maintained by the
Company pursuant to Section 4.02 of the Base Indenture, the Company shall also maintain an office or agency in the Place of Payment where the Notes may be surrendered for conversion. 

(b) The Company hereby initially designates the Trustee as the Paying Agent, Registrar, Note Custodian and Conversion Agent and the
Corporate Trust Office and the office or agency of the Trustee in the Place of Payment each shall be considered as one office or agency of the Company where the Notes may be presented or surrendered for payment or surrendered for transfer, exchange
or conversion and where notices and demands to or upon the Company in respect of the Notes and the Indenture may be served. 

Section 4.02. Reports. The Company shall file with the Trustee within 15 days after the same are required to be filed with the
SEC, copies of any documents or reports that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act (giving effect to any grace period provided by Rule 12b-25 under the Exchange Act). Any such document
or report that the Company files with the SEC via the SEC’s EDGAR system shall be deemed to be filed with the Trustee for purposes of this Section 4.02 at the time such documents are filed via the EDGAR system; provided, however,
the Trustee shall have no responsibility to determine whether such filing via EDGAR has occurred. Delivery of the reports and documents 

  
 21 

 
described in this Section 4.02 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 conclusively rely on an Officers’ Certificate). 

Section 4.03. 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 that would prohibit or forgive the Company from paying all or any portion of the principal
(including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) of, or interest on, the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or that may affect the covenants
or the performance of the 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. 
 ARTICLE 5 
 DEFAULTS AND REMEDIES

 Section 5.01. Applicability of Article VI of the Base Indenture. Article VI of the Base Indenture shall not apply to
the Notes. Instead the Event of Defaults provisions set forth in this Article 5 shall, with respect to the Notes, supersede in their entirety Article VI of the Base Indenture, and all references in the Base Indenture to Article VI thereof and Event
of Defaults provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be references to this Article 5 and Event of Defaults provisions set forth in this Article 5, respectively. 

Section 5.02. Events of Default. “Event of Default,” wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body): 
 (a) default in the payment of any principal amount (including any Redemption Price, Repurchase Price or
Fundamental Change Repurchase Price, if applicable) due with respect to the Notes when the same shall be due and payable, whether at maturity, upon redemption or repurchase, by acceleration or otherwise; 

(b) default in the payment of interest (including Special Interest, if any) under the Notes as and when the same shall be due and
payable, and continuance of such default for a period of 30 calendar days; 
 (c) default in the delivery when due of the
amounts owing upon conversion, whether due in cash, Common Shares or a combination thereof, on the terms set forth herein and in the 

  
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Notes, upon exercise of the conversion rights of a Holder of the Notes in accordance with Article 10, and continuance of such default for ten calendar days; 

(d) failure by the Company to provide a Fundamental Change Company Notice after the occurrence of a Fundamental Change within the time
period required by Section 11.02(b) and continuance of such default for five calendar days; 
 (e) failure by the Company
to comply with its obligations under Article 8; 
 (f) failure on the part of the Company to comply with any other term,
covenant or agreement in the Notes or in the Indenture (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 5.02 specifically dealt with) and such failure continues for a period of 60
calendar 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 Trust Officer by the Holders of not less than 25% in
aggregate principal amount of the Notes at the time Outstanding; 
 (g) default in the payment of principal when due on, or
resulting in acceleration of, other indebtedness of the Company or any Significant Subsidiary of the Company for borrowed money where the aggregate principal amount with respect to which the default or acceleration has occurred exceeds $25.0 million
and such indebtedness has not been discharged, or such default in payment or acceleration has not been cured or rescinded, prior to written notice of acceleration of the Notes pursuant to this Section 5.02; 

(h) failure by the Company or any of its Significant Subsidiaries to pay final judgments entered by a court or courts of competent
jurisdiction aggregating in excess of $25.0 million, which judgments are not paid, discharged or stayed for a period of 30 calendar days after such judgments become final and non-appealable; 

(i) the Company or any Significant Subsidiary of the Company pursuant to or under or within meaning of any Bankruptcy Law: 

(i) commences a voluntary case or proceeding seeking liquidation, reorganization or other relief with respect to it or its
debts or seeking the appointment of a trustee, receiver, liquidator, Custodian or other similar official of it or any substantial part of its property; 
 (ii) consents to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it; 

(iii) consents to the appointment of a Custodian of it or for all or substantially of its property; or 

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

(j) an involuntary case or other proceeding shall be commenced against the Company or any Significant Subsidiary of the Company seeking
liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency or other similar law now or 

  
 23 

 
hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, Custodian or other similar official of it or any substantial part of its property, and such involuntary case or
other proceeding shall remain undismissed and unstayed for a period of 60 calendar days; or 
 (k) a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (i) is for relief against the Company or
any Significant Subsidiary of the Company in an involuntary case or proceeding; 
 (ii) appoints a trustee,
receiver, liquidator, Custodian or other similar official of the Company or any Significant Subsidiary of the Company or any substantial part of their respective properties; or 

(iii) orders the liquidation of the Company or any Significant Subsidiary of the Company; 

and, in each case in this clause (k), the order or decree remains unstayed and in effect for 60 calendar days. 

If an Event of Default (other than an Event of Default specified in Section 5.02(i), Section 5.02(j) or Section 5.02(k)
with respect to the Company) shall occur and be continuing, unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then
Outstanding, by notice in writing to the Company (and to the Trustee if given by Holders of the Notes), may declare the principal of, and interest (including Special Interest, if any) accrued and unpaid on, all the Notes to be immediately due and
payable, and upon any such declaration the same shall be immediately due and payable. If an Event of Default specified in Section 5.02(i), Section 5.02(j) or Section 5.02(k) occurs with respect to the Company, the principal of, and
interest (including Special Interest, if any) accrued and unpaid on, all the Notes shall be immediately and automatically due and payable without necessity of further action. 
 Notwithstanding the preceding paragraph, to the extent elected by the Company, the sole remedy for an Event of Default relating to (i) the failure to comply with the reporting obligations under
Section 4.02 or (ii) any failure to comply with the requirements of Section 314(a)(1) of the TIA shall, for the first 365 days after the occurrence of such Event of Default, consist exclusively of the right to receive special interest
(“Special Interest”) on the Notes at an annual rate equal to 0.50% of the principal amount of the Notes. This Special Interest shall be payable semi-annually in arrears, with the first semi-annual payment due on the first Interest
Payment Date following the date on which such Special Interest shall have begun to accrue on the Notes. Special Interest shall accrue on all Outstanding Notes from, and including, the date on which an Event of Default relating to a failure to comply
with the reporting obligations in Section 4.02 or the requirements of Section 314(a)(1) of the TIA first occurs to, but excluding, the 365th day thereafter (or such earlier date on which such Event of Default shall have been cured or
waived). On such 365th day (or earlier, if such Event of Default is cured or waived prior to such 365th day), such Special Interest shall cease to accrue and, if the Event of Default relating to reporting obligations has not been cured or waived
prior to such 365th day, the Notes shall be subject to acceleration as 

  
 24 

 
provided in the immediately preceding paragraph. The provisions of the Indenture described in this paragraph shall not affect the rights of holders in the event of the occurrence of any other
Event of Default. In the event the Company does not elect to pay Special Interest upon an Event of Default in accordance with this paragraph, the Notes shall be subject to acceleration as provided in the immediately preceding paragraph. 

If the Company elects to pay Special Interest in connection with an Event of Default relating to (i) the failure to comply with the
reporting obligations under Section 4.02 or (ii) any failure to comply with the requirements of Section 314(a)(1) of the TIA in accordance with the immediately preceding paragraph, the Company shall notify all Holders of the Notes and
the Trustee and Paying Agent in writing of such election on or before the close of business on the date on which such Event of Default first occurs. Upon the failure to timely give such notice, the Notes shall be immediately subject to acceleration
as provided in this Section 5.02. 
 The Trustee shall not at any time be under any duty or responsibility to any Holder of
the Notes to determine the Special Interest, or with respect to the nature, extent, or calculation of the amount of Special Interest owed, or with respect to the method employed in such calculation of the Special Interest. 

If, at any time after the principal of and interest on 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, Holders of a majority in aggregate principal amount of the Notes then Outstanding on behalf of the Holders of all 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 (subject to Section 5.07 and except with respect to nonpayment of principal (including the
Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) or interest (including Special Interest, if any) or with respect to the failure to deliver the consideration due upon conversion) if: 

(a) such rescission would not conflict with any judgment or decree of a court of competent jurisdiction; 

(b) interest on overdue installments of interest (including Special Interest, if any) (to the extent that payment of such interest is
lawful) and on overdue principal (including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable), which has become due otherwise than by such declaration of acceleration, has been paid; 

(c) the Company has paid the Trustee its reasonable compensation and reimbursed the Trustee for its expenses, disbursements and advances
(including those of its agents and counsel, if applicable) pursuant to Section 7.06 of the Base Indenture; and 
 (d) all
Events of Default (other than the nonpayment of the principal amount (including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) and any accrued and unpaid interest (including Special Interest, if any)
that have become due solely because of such acceleration) have been cured or waived. 

  
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 No such rescission and annulment shall extend to or shall affect any subsequent Default or
Event of Default, or shall impair any right consequent thereon. The Company shall notify in writing a Trust Officer, promptly upon becoming aware thereof, of any Event of Default, as provided in Section 5.09. 

In case the Trustee shall have proceeded to enforce any right under the 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 the 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 the Notes, and the Trustee shall continue as though no such proceeding had been taken. 

Section 5.03. Payments of Notes on Default; Suit Therefor. The Company covenants that in the case of an Event of Default pursuant
to Section 5.02(a) or Section 5.02(b) the Company shall pay to the Trustee, for the benefit of the Holders of the Notes, (i) the whole amount that then shall be due and payable on all such Notes for principal (including the Redemption
Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) or interest (including Special Interest, if any), 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 accrued and unpaid interest at the rate borne by the Notes, plus 1%, from the required payment date and, (ii) in addition thereto, any amounts due the Trustee under
Section 7.06 of the Base Indenture. 
 In case the Company shall fail forthwith to pay such amounts, the Trustee, in its
own name and as trustee of an express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or
final decree, and may enforce any such judgment or final decree against the Company or any other obligor on the Notes and collect in the manner provided by law out of the property of the Company or any other obligor on the Notes wherever situated
the monies adjudged or decreed to be payable. 
 In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Notes under any Bankruptcy Law, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, Custodian or similar official shall have
been appointed for or taken possession of the Company or such other obligor, the property of the Company or such other obligor, or in the case of any other judicial proceedings relative to the Company or such other obligor upon the Notes, or to the
creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise, 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 (including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) and accrued and unpaid
interest (including Special Interest, if any) 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 Holders of the Notes allowed in such judicial proceedings relative to the Company or any other obligor on 

  
 26 

 
the Notes, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute the same after
the deduction of any amounts due the Trustee under Section 7.06 of the Base Indenture, 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, unless prohibited by law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, Custodian or similar official is hereby authorized by each of the Holders of the Notes to
make such payments to the Trustee, and, in the event that the Trustee shall consent in writing to the making of such payments directly to the Holders of the Notes, to pay to the Trustee any amount due it for reasonable compensation, expenses,
advances and disbursements, including the fees and expenses of its agents and counsel 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. 
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of the Notes any plan of reorganization, arrangement, adjustment or
composition affecting the Holder or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of the Notes in any such proceeding. 

All rights of action and of asserting claims under the 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 the 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. 

In case the Trustee shall have proceeded to enforce any right under the 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 the Notes, and the Trustee shall, subject to any
determination in such proceeding, be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the Holders of the Notes, and the Trustee shall continue as though no such proceeding had
been instituted. 
 Section 5.04. Application of Monies Collected by Trustee. Any monies collected by the Trustee
pursuant to this Article 5 with respect to the Notes shall be applied in the order following, 

  
 27 

 
at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender
thereof, if fully paid: 
 First, to the payment of all amounts due the Trustee under Section 7.06 of the Base Indenture
(including the reasonable compensation and the expenses and disbursements of its agents and counsel as provided in Section 7.06 of the Base Indenture); 
 Second, in case the principal of the Outstanding Notes shall not have become due and be unpaid, to the payment of accrued and unpaid interest on, and any cash due upon conversion of, the Notes in default
in the order of the date due of the payments of such interest and cash due upon conversion, as the case may be, with interest (to the extent that such interest has been collected by the Trustee) upon such overdue payments at the rate borne by the
Notes at such time, such payments to be made ratably to the Persons entitled thereto; 
 Third, in case the principal of the
Outstanding Notes shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount (including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price and any cash due upon conversion, if
applicable) then owing and unpaid upon the Notes for principal and interest, if any, with interest on the overdue principal and, to the extent that such interest has been collected by the Trustee, upon overdue installments of accrued and unpaid
interest at the rate borne by the Notes at such time, 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 such 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 such accrued and unpaid
interest; and 
 Fourth, to the payment of the remainder, if any, to the Company. 

Section 5.05. Proceedings by Holders of the Notes. No Holder of any Note shall have any right by virtue of or by availing of any
provision of the Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to the Indenture, or for the appointment of a receiver, trustee, liquidator, Custodian or other similar official, or for any
other remedy hereunder, except in the case of a default in the payment of principal (including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) or interest (including Special Interest, if any), on the
Notes or the payment or delivery of the consideration due upon conversion of the Notes, unless: 
 (a) such Holder shall have
given to the Trustee written notice of an Event of Default and of the continuance thereof, as hereinbefore provided; 
 (b) the
Holders of at least 25% in aggregate principal amount of the Notes then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and have offered security or
indemnity reasonably satisfactory to the Trustee against any costs, liability or expense of the Trustee; 

  
 28 

 (c) the Trustee fails to comply with the request within 60 calendar days after receipt of
the request and offer of indemnity; and 
 (d) the Trustee does not receive an inconsistent written direction from the Holders
of a majority in aggregate principal amount of the Notes then Outstanding within such 60-day period pursuant to Section 5.07; 
 it being
understood and intended, and being expressly covenanted by the taker and Holder of every Note with every other taker and Holder of the Notes and the Trustee that no one or more Holders of the Notes shall have any right in any manner whatever by
virtue of or by availing of any provision of the Indenture to affect, disturb or prejudice the rights of any other Holder of the Notes, or to obtain or seek to obtain priority over or preference to any other such Holder of the Notes, or to enforce
any right under the Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of the Notes (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such
actions or forbearances are unduly prejudicial to such Holders) (except as otherwise provided herein). For the protection and enforcement of this Section 5.05, each and every Holder of the Notes and the Trustee shall be entitled to such relief
as can be given either at law or in equity. 
 Notwithstanding any other provision of the Indenture and any provision of any
Note, the right of any Holder of any Notes to receive payment or delivery, as the case may be, of (x) the principal (including the Redemption price, the Repurchase Price or the Fundamental Change Repurchase Price, if applicable) of,
(y) accrued and unpaid interest (including Special Interest), if any, on, and (z) the consideration due upon conversion of, such Note, on or after the respective due dates expressed or provided for in such Note or in the Indenture, or to
institute suit for the enforcement of any such payment or deliver, as the case may be, on or after such respective dates against the Company shall not be impaired or affected without the consent of such Holder of the Notes. 

Anything contained 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 5.06. Proceedings by Trustee. In case of an Event of Default the Trustee may, in its discretion, proceed to protect and
enforce the rights vested in it by the Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether
for the specific enforcement of any covenant or agreement contained in the Indenture or in aid of the exercise of any power granted in the Indenture, or to enforce any other legal or equitable right vested in the Trustee by the Indenture or by law.

 Section 5.07. Remedies Cumulative and Continuing. Except as provided in the last paragraph of Section 2.09 of the
Base Indenture, all powers and remedies given by this Article 5 to the Trustee or to the Holders of the Notes 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 

  
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performance or observance of the covenants and agreements contained in the 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 Event of Default or any acquiescence therein; and, subject to the
provisions of Section 5.05, every power and remedy given by this Article 5 or by law to the Trustee or to the Holders of the Notes may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders
of the Notes. 
 Section 5.08. Direction of Proceedings and Waiver of Defaults by Majority of Holders of the Notes. The
Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any
trust or power conferred on the Trustee with respect to Notes; provided, however, that (a) such direction shall not be in conflict with any rule of law or with the Indenture, and (b) the Trustee may take any other action
deemed proper by the Trustee that is not inconsistent with such direction. The Trustee may refuse to follow any direction that it determines is unduly prejudicial to the rights of any other Holder of the Notes or that would involve the Trustee in
personal liability. The Holders of a majority in aggregate principal amount of the Notes at the time Outstanding may, on behalf of the Holders of all of the Notes, waive any past Default or Event of Default hereunder and its consequences except
(i) a default in the payment of principal of or interest (including Special Interest, if any) on, any Note when due; (ii) a failure by the Company to convert any Notes in accordance with the provisions of the Indenture; (iii) a
failure by the Company to pay the Redemption Price on the Redemption Date in connection with a redemption by the Company, the Repurchase Price on the Repurchase Date in connection with a Holder of the Notes exercising its repurchase rights or the
Fundamental Change Repurchase Price on the Fundamental Change Repurchase Date in connection with a repurchase by the Company in connection with a Fundamental Change, in each case, in accordance with the Indenture; or (iv) a failure the Company
to comply with any of the provisions of the Indenture the non-compliance with which would require the consent of the Holder of each Outstanding Note 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 5.07, said Default or Event of Default shall for all purposes of the Notes and the 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 5.09. Notice of Defaults. The
Trustee shall, within 90 calendar days after the occurrence and continuance of a Default of which a Trust Officer has actual knowledge, mail to all Holders of the Notes as the names and addresses of such Holders of the Notes appear upon the Debt
Security Register, notice of all Defaults known to a Trust Officer, unless such Defaults shall have been cured or waived before the giving of such notice; provided that, except in the case of a Default in the payment of the principal of
(including the Redemption Price, Repurchase Price and Fundamental Change Repurchase Price, if applicable), or accrued and unpaid interest (including Special Interest, if any) on, any of the Notes or a Default in the payment or delivery of

  
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the consideration due upon conversion, the Trustee shall be protected in withholding such notice if and so long as it in good faith determines that the withholding of such notice is in the
interests of the Holders of the Notes. 
 Section 5.10. Undertaking to Pay Costs. All parties to the 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 the 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 5.10 (to the extent permitted by law)
shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder of the Notes, or group of Holders of the Notes, holding in the aggregate more than 10% in principal amount of the Notes at the time Outstanding, or to any
suit instituted by any Holder of the Notes for the enforcement of the payment of the principal (including the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price, if applicable) of, or accrued and unpaid interest (including
Special Interest), if any, on, any Note on or after the due date expressed or provided for in such Note or to any suit for the enforcement of the right to convert any Note in accordance with the provisions of Article 10. 

ARTICLE 6 

MEETINGS OF HOLDERS OF THE NOTES 

Section 6.01. Rules under Section 13.09 of the Base Indenture. The provisions set forth in this Article 6 for meetings of
Holders of the Notes shall constitute “reasonable rules for action by or a meeting of Holders” within the meaning of Section 13.09 of the Base Indenture. 
 Section 6.02. Purpose of Meetings. A meeting of Holders of the Notes may be called at any time and from time to time pursuant to the provisions of this Article 6 for any of the following purposes:

 (a) to give any notice to the Company or to the Trustee or to give any directions to the Trustee permitted under the
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 Holders of the Notes pursuant to any of the provisions of Article 5; 

(b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of Section 7.08 of the Base Indenture;

 (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of
Section 7.03; or 
 (d) to take any other action authorized to be taken by or on behalf of the Holders of the Notes of any
specified aggregate principal amount of the Notes under any other provision of the Indenture or under applicable law. 

  
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 Section 6.03. Call of Meetings by Trustee. The Trustee may at any time call a meeting
of Holders of the Notes to take any action specified in Section 6.01, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Holders of the Notes, 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 5.04 of the Base Indenture, shall be mailed to Holders of such Notes at their addresses as they shall
appear on the Debt Security 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 Holders of the Notes 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 6.04. Call of Meetings by Company or Holders of the Notes. In case at any time the Company, pursuant to a
Board Resolution, 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 Holders of the Notes, 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 Holders of the Notes may determine the time and the place for such
meeting and may call such meeting to take any action authorized in Section 6.01, by mailing notice thereof as provided in Section 6.03. 
 Section 6.05. Qualifications for Voting. To be entitled to vote at any meeting of Holders of the Notes a Person shall (a) be a Holder of the Notes 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 Holders of the Notes 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 6.06. Regulations. Notwithstanding any other provisions of the Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of Holders of the Notes, 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 Holders of the Notes as provided in
Section 6.04, in which case the Company or the Holders of the Notes calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the Holders of a majority in principal amount of the Notes represented at the meeting and entitled to vote at the meeting. 

  
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 Subject to the proviso in the definition of “Outstanding” in Section 1.01, at
any meeting of Holders of the Notes each Holder of Notes or proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him; provided, however, 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 it or instruments in writing
as aforesaid duly designating it as the proxy to vote on behalf of other Holders of the Notes. Any meeting of Holders of the Notes duly called pursuant to the provisions of Section 6.03 or Section 6.04 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 6.07. Voting. The vote upon any resolution submitted to any meeting of Holders of the Notes shall be by written ballot on
which shall be subscribed the signatures of the Holders of the 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 Holders of the Notes 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 6.03. The record shall show the principal amount of the Notes
voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company and the other to the Trustee
to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 
 Any record so signed
and verified shall be conclusive evidence of the matters therein stated. 
 Section 6.08. No Delay of Rights by Meeting.
Nothing contained in this Article 6 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Holders of the Notes 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 Holders of the Notes under any of the provisions of the Indenture or of the Notes. 
 ARTICLE 7 
 SUPPLEMENTAL INDENTURES 

Section 7.01. Applicability of Article IX of the Base Indenture. Article IX of the Base Indenture shall not apply to the Notes.
Instead the provisions set forth in this Article 7 shall, with respect to the Notes, supersede in their entirety Article IX of the Base Indenture, and all references in the Base Indenture to Article IX thereof and provisions therein, as the case may
be, 

  
 33 

 
shall, with respect to the Notes, be deemed to be references to this Article 7 and provisions set forth in this Article 7, respectively. 

Section 7.02. Supplemental Indentures Without Consent of Holders of the Notes. The Company, when authorized by the resolutions of
the Board of Trustees, and the Trustee, at the Company’s expense, may from time to time and at any time enter into an indenture or indentures supplemental without the consent of the Holders of the Notes hereto for one or more of the following
purposes: 
 (a) to evidence a successor to the Company and the assumption by that successor of the obligations of the Company
under the Indenture and the Notes pursuant to Article 8 hereof; 
 (b) to provide for conversion rights of Holders of the Notes
in accordance with the terms of the Indenture if any Merger Event occurs; 
 (c) to add to the covenants of the Company for the
benefit of the Holders of the Notes or to surrender any right or power conferred upon the Company; 
 (d) to secure the
obligations of the Company in respect of the Notes; 
 (e) to add guarantees with respect to the Notes; 

(f) to evidence and provide the acceptance of the appointment of a successor Trustee under the Indenture; 

(g) to comply with the requirements of the SEC in order to effect or maintain qualification of the Indenture under the TIA, as
contemplated by the Indenture or otherwise; 
 (h) to cure any ambiguity, omission, defect or inconsistency in the Indenture
that the Company may deem necessary or desirable, which shall not be inconsistent with provisions of the Indenture; provided that such modification or amendment does not, in the good faith opinion of the Board of Trustees, adversely affect
the interests of the Holders of the Notes in any material respect; 
 (i) to add or modify any provision with respect to matters
or questions arising under the Indenture which the Company may deem necessary or desirable and which will not adversely affect the interests of the Holders of the Notes in any material respect, as evidenced in an Officers’ Certificate; or

 (j) to make any change to the Indenture or the Notes to conform the terms thereof to the “Description of Notes”
section in the Prospectus Supplement, as evidenced in an Officers’ Certificate. 
 Upon the written request of the Company
in the form of an Officers’ Certificate, accompanied by a copy of the resolutions of the Board of Trustees certified by the Company’s Secretary or Assistant Secretary authorizing the execution of any supplemental indenture, the Trustee is
hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein 

  
 34 

 
contained, but 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 the
Indenture or otherwise. 
 Any supplemental indenture authorized by the provisions of this Section 7.01 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 7.03. 
 Section 7.03. Supplemental Indentures with Consent of Holders of the Notes. With the consent (evidenced as provided in Article VIII of the Base Indenture) of the Holders of not less than a majority
in aggregate principal amount of the Notes then Outstanding (determined in accordance with Article VIII of the Base Indenture and including, without limitation, consents obtained in connection with a repurchase of, or tender or exchange offer for,
Notes), the Company, when authorized by the resolutions of the Board of Trustees, and the Trustee, at the Company’s expense, 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 the Indenture or any supplemental indenture or modifying in any manner the rights of the Holders of the Notes; provided, however, that, without
the consent of each Holder of an Outstanding Note affected, no such supplemental indenture shall: 
 (a) impair or adversely
affect the manner of calculation or rate of accrual of interest (including Special Interest) on the Notes or change the time of payment thereof; 
 (b) make the Notes payable in money or securities other than that stated in the Notes; 
 (c) change the Maturity Date of the Notes; 
 (d) reduce the principal amount of,
or the Redemption Price, Repurchase Price or Fundamental Change Repurchase Price with respect to, the Notes; 
 (e) make any
change that impairs or adversely affects the rights of a Holder of the Notes to convert the Notes; 
 (f) make any change that
impairs or adversely affects the rights of a Holder of the Notes to require the Company to repurchase the Notes; 
 (g) impair
the right to institute suit for the enforcement of any payment with respect to the Notes or with respect to conversion of the Notes; 
 (h) change the obligation of the Company to redeem any Notes called for redemption on a Redemption Date in a manner adverse to the Holders of the Notes; 

(i) change the obligation of the Company to maintain an office or agency for payment and presentation of Notes; 

(j) make the Notes subordinate in right of payment to any other indebtedness; 

  
 35 

 (k) reduce the percentage in aggregate principal amount of Notes Outstanding required to
modify or amend the Indenture; or 
 (l) make any change in this Article 7 that requires the consent of each Holder of the Notes
or in the waiver provisions in Section 5.02 or Section 5.07. 
 Upon the written request of the Company, accompanied
by a copy of the resolutions of the Board of Trustees certified by the Company’s 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
Holders of the Notes as aforesaid and subject to Section 7.06, 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 the Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. 
 Holders of the Notes do not need under this Section 7.03 to approve the particular form of any proposed supplemental indenture. It shall be sufficient if such Holders of the Notes approve the
substance thereof. After any such supplemental indenture becomes effective, the Company shall mail to the Holders of the Notes a notice briefly describing such supplemental indenture. However, the failure to give such notice to all the Holders of
the Notes, or any defect in the notice, will not impair or affect the validity of the supplemental indenture. 
 Section
7.04. Effect of Supplemental Indentures. Any supplemental indenture executed pursuant to the provisions of this Article 7 shall comply with the TIA, as then in effect, provided that this Section 7.04 shall not require such supplemental
indenture or the Trustee to be qualified under the TIA prior to the time, if ever, such qualification is in fact required under the terms of the TIA or the Indenture has been qualified under the TIA, 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, if ever, such qualification is in fact required under the terms of the TIA or the Indenture has been qualified under the TIA. Upon
the execution of any supplemental indenture pursuant to the provisions of this Article 7, the 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 the Indenture of the Trustee, the Company and the Holders of the 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 the Indenture for any and all purposes. 
 Section 7.05. Notation on Notes. The Trustee may place on the Notes authenticated and delivered after the execution of any supplemental indenture pursuant to the provisions of this Article 7 may,
at the Company’s expense, bear an appropriate notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Notes so modified as to conform, in the opinion of the
Trustee and the Board of Trustees, to any modification of the Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared and executed by the Company, authenticated by the Trustee upon receipt of a Company
Order (or an authenticating agent duly appointed by the 

  
 36 

 
Trustee pursuant to Section 2.05 of the Base Indenture) and delivered in exchange for the Notes then Outstanding, upon surrender of such Notes then Outstanding. 

Section 7.06. Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee. Prior to entering into any supplemental
indenture pursuant to this Article 7, the Trustee shall be provided with, and may conclusively rely, upon 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 7, is otherwise authorized or permitted by the Indenture and is the legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms. 

ARTICLE 8 

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

 Section 8.01. Applicability of Article X of the Base Indenture. Article X of the Base Indenture shall not apply to the
Notes. The provisions set forth in this Article 8 shall, with respect to the Notes, supersede in their entirety Article X of the Base Indenture, and all references in the Base Indenture to Article X thereof shall, with respect to the Notes, be
deemed to be references to this Article 8. 
 Section 8.02. Company May Consolidate, Etc. on Certain Terms. Subject to
the provisions of Section 8.03, the Company shall not consolidate with, merge with or into, or sell, convey, transfer or lease all or substantially all of its assets to another Person, unless: 

(a) the Company shall be the continuing entity, or the successor entity (the “Successor Company”), if not the Company,
formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be an entity 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 supplemental indenture all of the obligations of the Company under the Notes and the Indenture; and 
 (b) if as a result of such transaction the Notes become convertible into common stock or other securities issued by a third party, such third party fully and unconditionally guarantees all obligations
under the Notes and the Indenture; 
 (c) immediately after giving effect to the transaction, no Default or Event of Default
under the Indenture shall have occurred and be continuing; and 
 (d) an Officer’s Certificate and Opinion of Counsel
covering the conditions in clauses (a), (b) and (c) above shall be delivered to the Trustee. 
 For purposes of this
Section 8.01, the sale, conveyance, transfer or lease of all or substantially all of the assets of one or more Subsidiaries of the Company to another Person, which assets, if held by the Company instead of such Subsidiaries, would constitute
all or substantially all of the properties and assets of the Company on a consolidated basis, shall be 

  
 37 

 
deemed to be the sale, conveyance, transfer or lease of all or substantially all of the properties and assets of the Company to another Person. 

Section 8.03. Successor Company to Be Substituted. In case of any such consolidation, merger, sale, conveyance, transfer or lease
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 (including the Redemption Price, Repurchase
Price or Fundamental Change Repurchase Price, if applicable) of and accrued and unpaid interest (including Special Interest, if any) on, all of the Notes, the due and punctual delivery or payment, as the case may be, of any consideration due upon
conversion of the Notes and the due and punctual performance of all of the covenants and conditions of the Indenture to be performed by the Company, such Successor Company shall succeed to and, except in the case of a lease of all or substantially
all of the Company’s assets, be substituted for the Company, with the same effect as if it had been named herein as the party of the first part. Such Successor Company thereupon may cause to be signed, and may issue either in its own name or in
the name of the Company any or all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the written order of such Successor Company instead of the Company (in the form of
a Company Order) and subject to all the terms, conditions and limitations in the 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 the Indenture as the Notes theretofore or thereafter issued in accordance with the terms of the Indenture as though all of such Notes had been issued at the date of the execution hereof. In the event of any
such consolidation, merger, sale, conveyance or transfer (but not in the case of a lease), upon compliance with this Article 8 the Person named as the “Company” in the first paragraph of this Supplemental Indenture (or any successor that
shall thereafter have become such in the manner prescribed in this Article 8) may be dissolved, wound up and liquidated at any time thereafter and, except in the case of a lease, such Person shall be released from its liabilities as obligor and
maker of the Notes and from its obligations under the Indenture. 
 In case of any such consolidation, merger, sale, conveyance,
transfer or lease, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate. 
 Section 8.04. Opinion of Counsel to Be Given to Trustee. No consolidation, merger, sale, conveyance, transfer or lease shall be effective unless the Trustee shall receive an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or lease and any such assumption and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture, complies with the provisions of this Article 8. 

  
 38 

 ARTICLE 9 
 GUARANTEE OF NOTES 
 Section 9.01.
Applicability of Article XIV of the Base Indenture. Article XIV of the Base Indenture shall not apply to the Notes. 

ARTICLE 10 

CONVERSION OF NOTES 
 Section 10.01. Conversion Privilege. (a) Subject to and upon compliance with the provisions of this Article 10, each Holder of the Notes shall have the right, at such Holder’s option, to
convert all or any portion (if the portion to be converted is $1,000 principal amount or an integral multiple thereof) of such Note during the period beginning on, and including, March 21, 2011 and ending at the close of business on the
Business Day immediately preceding the Maturity Date at an initial conversion rate of 390.1667 Common Shares (subject to adjustment as provided in Section 10.04, the “Conversion Rate”) per $1,000 principal amount of Notes
(subject to the settlement provisions of Section 10.02, the “Conversion Obligation”). 
 Section 10.02.
Conversion Procedure; Settlement Upon Conversion. 
 (a) Subject to this Section 10.02, Section 10.03(b) and
Section 10.07(a), upon conversion of any Note, the Company shall pay or deliver, as the case may be, to the converting Holder of the Notes, in respect of each $1,000 principal amount of Notes being converted, cash (“Cash
Settlement”), Common Shares, together with cash, if applicable, in lieu of any fractional Common Share in accordance with subsection (j) of this Section 10.02 (“Physical Settlement”) or a combination of cash and
Common Shares, together with cash, if applicable, in lieu of any fractional Common Share in accordance with subsection (j) of this Section 10.02 (“Combination Settlement”), at its election, as set forth in this
Section 10.02. 
 (i) All conversions for which the relevant Conversion Date occurs during the period
beginning on, and including, January 1, 2016 and ending on, but excluding, April 1, 2016 shall be settled using the same Settlement Method. 
 (ii) All conversions for which the relevant Conversion Date occurs after the Company’s issuance of a Redemption Notice with respect to the Notes and prior to the related Redemption Date shall be
settled using the same Settlement Method. 
 (iii) Except for any conversions that occur after the Company’s
issuance of a Redemption Notice with respect to the Notes but prior to the related Redemption Date and any conversions occurring during the period beginning on, and including, January 1, 2016 and ending on, but excluding, April 1, 2016,
the Company shall use the same Settlement Method for all conversions occurring on the same Conversion Date, but the Company shall not have any obligation to use the same Settlement Method with respect to conversions that occur on different
Conversion Dates. 

  
 39 

 (iv) Other than as set forth in the two immediately succeeding sentences,
if, in respect of any Conversion Date the Company elects to deliver a notice (the “Settlement Notice”) of the relevant Settlement Method in respect of such Conversion Date (or such period, as the case may be), the Company, through
the Trustee at the Company’s written direction, shall deliver such Settlement Notice to converting Holders of the Notes no later than the close of business on the Trading Day immediately following the relevant Conversion Date. Notwithstanding
the foregoing, in the case of any conversions occurring after the date of issuance of a Redemption Notice with respect to the Notes and prior to the related Redemption Date, the Company shall notify converting Holders of the Notes of the relevant
Settlement Method by including a Settlement Notice in such Redemption Notice. In addition, in the case of any conversions during the period beginning on, and including, January 1, 2016 and ending on, but excluding, April 1, 2016, the
Company, through the Trustee at the Company’s written direction, shall deliver a Settlement Notice of the relevant Settlement Method applicable to such conversions to converting Holders of the Notes no later than January 1, 2016. If the
Company does not elect a Settlement Method prior to the relevant deadline set forth in the three immediately preceding sentences, the Company shall no longer have the right to elect Cash Settlement or Physical Settlement and the Company shall be
deemed to have elected Combination Settlement in respect of its Conversion Obligation, and the Specified Dollar Amount per $1,000 principal amount of Notes shall be equal to $1,000. The Settlement Notice shall specify the relevant Settlement Method
and in the case of an election of Combination Settlement, the relevant Settlement Notice shall indicate the Specified Dollar Amount. If the Company delivers a Settlement Notice electing Combination Settlement in respect of its Conversion Obligation
but does not indicate a Specified Dollar Amount in such Settlement Notice, the Specified Dollar Amount shall be deemed to be $1,000. 
 (v) The cash, Common Shares or combination of cash and Common Shares in respect of any conversion of Notes (the “Settlement Amount”) shall be computed by the Company as follows:

 (A) if the Company elects to satisfy its Conversion Obligation in respect of such conversion by Physical
Settlement, the Company shall deliver to the converting Holder a number of Common Shares equal to the product of (1) the aggregate principal amount of Notes to be converted, divided by $1,000, and (2) the Conversion Rate in effect
on the Conversion Date; 
 (B) if the Company elects to satisfy its Conversion Obligation in respect of such
conversion by Cash Settlement, the Company shall pay to the converting Holder in respect of each $1,000 principal amount of Notes being converted cash in an amount equal to the sum of the Daily Conversion Values for each of the 20 consecutive
Trading Days during the related Observation Period; and 
 (C) if the Company elects (or is deemed to have
elected) to satisfy its Conversion Obligation in respect of such conversion by Combination Settlement, the Company shall pay or deliver, as the case may be, in respect of each $1,000 principal amount of Notes being converted, a Settlement Amount
equal to the 

  
 40 

 
sum of the Daily Settlement Amounts for each of the 20 consecutive Trading Days during the related Observation Period. 

(vi) The Daily Settlement Amounts (if applicable) and the Daily Conversion Values (if applicable) shall be determined by
the Company promptly following the last day of the Observation Period. Promptly after such determination of the Daily Settlement Amounts or the Daily Conversion Values, as the case may be, and the amount of cash payable in lieu of any fractional
share, the Company shall notify the Trustee and the Conversion Agent in writing (if other than the Trustee) of the Daily Settlement Amounts or the Daily Conversion Values, as the case may be, and the amount of cash payable in lieu of fractional
Common Shares. The Trustee and the Conversion Agent (if other than the Trustee) shall have no responsibility for any such determination. 
 (b) Subject to Section 10.02(e), before any Holder of a Note shall be entitled to convert a Note as set forth above, such Holder shall (i) in the case of a Global Note, comply with the
procedures of the Depositary in effect at that time and, if required, pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled as set forth in Section 10.02(h) and (ii) in the case of a
Physical Note (1) complete, manually sign and deliver an irrevocable notice to the Conversion Agent as set forth in the Form of Notice of Conversion (or a facsimile thereof) (a “Notice of Conversion”) at the office of the
Conversion Agent and state in writing therein the principal amount of Notes to be converted and the name or names (with addresses) in which such Holder wishes the certificate or certificates for any Common Shares to be delivered upon settlement of
the Conversion Obligation to be registered, (2) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by appropriate endorsement and transfer documents), at the office of the Conversion Agent, (3) if required,
furnish appropriate endorsements and transfer documents and (4) if required, pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled as set forth in Section 10.02(h). The Trustee (and if
different, the Conversion Agent) shall notify the Company of any conversion pursuant to this Article 10 on the Conversion Date for such conversion. No Notice of Conversion with respect to any Notes may be surrendered by a Holder of the Notes thereof
if such Holder has also delivered a Repurchase Notice or Fundamental Change Repurchase Notice to the Company in respect of such Notes and not validly withdrawn such Repurchase Notice or Fundamental Change Repurchase Notice in accordance with
Section 11.03. 
 If more than one Note shall be surrendered for conversion at one time by the same Holder of the Notes,
the Conversion Obligation with respect to such Notes shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted thereby) so surrendered. 

(c) A Note shall be deemed to have been converted immediately prior to the close of business on the date (the “Conversion
Date”) that the Holder of the Notes has complied with the requirements set forth in subsection (b) above. The Company shall pay or deliver, as the case may be, the consideration due in respect of the Conversion Obligation on the third
Business Day immediately following the relevant Conversion Date, if the Company elects Physical Settlement, or on the third Business Day immediately following the last Trading Day of the Observation Period, in the case of any other Settlement Method
(subject to the provisions of Section 10.03(b) 

  
 41 

 
and Section 10.07(a)). If any Common Shares are due to converting Holders of the Notes, the Company shall issue or cause to be issued, and deliver to the Conversion Agent or to such Holder,
or such Holder’s nominee or nominees, certificates or a book-entry transfer through the Depositary for the full number of Common Shares to which such Holder shall be entitled in satisfaction of the Company’s Conversion Obligation.

 (d) In case any Note shall be surrendered for partial conversion, the Company shall execute and the Trustee shall
authenticate and deliver to or upon the written order of the Holder of the Note so surrendered a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note, without payment
of any service charge by the converting Holder of the Notes but with payment of a sum sufficient to cover any transfer tax or similar governmental charge required by law or that may be imposed in connection therewith as a result of the name of the
Holder of the new Notes issued upon such conversion being different from the name of the Holder of the old Notes surrendered for such conversion. 
 (e) If a Holder of the Notes submits a Note for conversion, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue of any Common Shares upon conversion, unless the
tax is due because the Holder requests such Common Shares to be issued in a name other than such Holder’s name, in which case such Holder shall pay that tax. The Conversion Agent may refuse to deliver the certificates representing the Common
Shares being issued in a name other than such Holder’s name until the Trustee receives a sum sufficient to pay any tax that is due by such Holder in accordance with the immediately preceding sentence. 

(f) Except as provided in Section 10.04, no adjustment shall be made for dividends on any shares issued upon the conversion of any
Note as provided in this Article 10. 
 (g) Upon the conversion of an interest in a Global Note, the Trustee, or the Note
Custodian at the direction of the Trustee, 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 conversion of Notes effected through any
Conversion Agent other than the Trustee. 
 (h) Upon conversion, a Holder of the Notes shall not receive any separate cash
payment for accrued and unpaid interest, if any, except as set forth below. The Company’s settlement of the Conversion Obligation shall be deemed to satisfy in full its obligation to pay the principal amount of the Note and accrued and unpaid
interest, if any, to, but not including, the Conversion Date. As a result, accrued and unpaid interest, if any, to, but not including, the Conversion Date shall be deemed to be paid in full rather than canceled, extinguished or forfeited. Upon a
conversion of Notes into a combination of cash and Common Shares, accrued and unpaid interest shall be deemed to be paid first out of the cash paid upon such conversion. Notwithstanding the foregoing, if Notes are converted after the close of
business on a Regular Record Date, Holders of such Notes as of the close of business on such Regular Record Date shall receive the full amount of interest payable on such Notes on the corresponding Interest Payment Date notwithstanding the
conversion. Notes surrendered for conversion during the period from the close of business on any Regular Record Date to the open of business on the immediately following Interest Payment Date must be accompanied by funds equal to the

  
 42 

 
amount of interest payable on the Notes so converted; provided that no such payment shall be required (1) for conversions following the Regular Record Date immediately preceding the
Maturity Date; (2) for conversions following the Regular Record Date immediately preceding April 1, 2016; (3) if the Company has specified a Redemption Date that is after a Regular Record Date and on or prior to the corresponding
Interest Payment Date; (4) if the Company has specified a Fundamental Change Repurchase Date that is after a Regular Record Date and on or prior to the Business Day immediately following the corresponding Interest Payment Date; or (5) to
the extent of any Defaulted Amounts, if any Defaulted Amounts exists at the time of conversion with respect to such Note. 
 (i)
The Person in whose name the certificate for any Common Shares delivered upon conversion is registered shall be treated as a shareholder of record as of the close of business on the relevant Conversion Date (if the Company elects to satisfy the
related Conversion Obligation by Physical Settlement) or the last Trading Day of the relevant Observation Period (if the Company elects to satisfy the related Conversion Obligation by Combination Settlement), as the case may be. Upon a conversion of
Notes, such Person shall no longer be a Holder of such Notes surrendered for conversion. 
 (j) The Company shall not issue any
fractional Common Share upon conversion of the Notes and shall instead pay cash in lieu of any fractional Common Share issuable upon conversion based on the Daily VWAP on the relevant Conversion Date (in the case of Physical Settlement) or based on
the Daily VWAP on the last Trading Day of the relevant Observation Period (in the case of Combination Settlement). For each Note surrendered for conversion, if the Company has elected Combination Settlement, the full number of shares that shall be
issued upon conversion thereof shall be computed on the basis of the aggregate Daily Settlement Amounts for the applicable Observation Period and any fractional shares remaining after such computation shall be paid in cash. 

Section 10.03. Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental
Changes. (a) If the Effective Date in respect of a Make-Whole Fundamental Change occurs prior to April 1, 2016 and a Holder of the Notes elects to convert its Notes in connection with such Make-Whole Fundamental Change, the Company
shall, under the circumstances described below, increase the Conversion Rate for the Notes so surrendered for conversion by a number of additional Common Shares (the “Additional Shares”), as described below. A conversion of Notes
shall be deemed for these purposes to be “in connection with” such Make-Whole Fundamental Change if the relevant Notice of Conversion is received by the Conversion Agent from, and including, the Effective Date of the Make-Whole Fundamental
Change up to, and including, the Business Day immediately prior to the related Fundamental Change Repurchase Date (or, in the case of a Make-Whole Fundamental Change that would have been a Fundamental Change but for the proviso in clause
(b) of the definition thereof, the 35th Trading Day immediately following the Effective Date of such Make-Whole Fundamental Change). 
 (b) Upon surrender of Notes for conversion in connection with a Make-Whole Fundamental Change, the Company shall, at its option, satisfy the related Conversion Obligation by Physical Settlement, Cash
Settlement or Combination Settlement in accordance with Section 10.02; provided, however, that if, at the effective time of a Make-Whole Fundamental Change 

  
 43 

 
described in clause (b) of the definition of Fundamental Change, the Reference Property is composed entirely of cash, for any conversion of Notes following the Effective Date of such
Make-Whole Fundamental Change, the Conversion Obligation shall be calculated based solely on the Share Price for the transaction and shall be deemed to be an amount of cash per $1,000 principal amount of converted Notes equal to the Conversion Rate
(including any adjustment for Additional Shares), multiplied by such Share Price. In such event, the Conversion Obligation shall be paid to Holders of the Notes in cash on the third Business Day following the Conversion Date. The Company
shall notify the Holders of Notes and the Trustee in writing of the Effective Date of any Make-Whole Fundamental Change and issue a press release announcing such Effective Date no later than five Business Days after such Effective Date. 

(c) The number of Additional Shares, if any, by which the Conversion Rate shall be increased shall be determined by reference to the
table below, based on the date on which the Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”) and the price (the “Share Price”) paid (or deemed to be paid) per Common Share in the
Make-Whole Fundamental Change. If the holders of the Common Shares receive only cash in a Make-Whole Fundamental Change described in clause (b) of the definition of Fundamental Change, the Share Price shall be the cash amount paid per share.
Otherwise, the Share Price shall be the average of the Last Reported Sale Prices of the Common Shares over the five Trading Day period ending on, and including, the Trading Day immediately preceding the Effective Date of the Make-Whole Fundamental
Change. The Board of Trustees shall make appropriate adjustments to the Share Price, in its good faith determination, to account for any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion
Rate where the Ex-Dividend Date of the event occurs, during such five consecutive Trading Day period. 
 (d) The Share Prices
set forth in the column headings of the table below shall be adjusted as of any date on which the Conversion Rate of the Notes is otherwise adjusted. The adjusted Share Prices shall equal the Share Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to such adjustment giving rise to the Share Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number
of Additional Shares set forth in the table below shall be adjusted in the same manner and at the same time as the Conversion Rate as set forth in Section 10.04. 
 (e) The following table sets forth the number of Additional Shares to be received per $1,000 principal amount of Notes pursuant to this Section 10.03 for each Share Price and Effective Date set forth
below: 
  

																																																					
	 	 	Share Price	 
	 Effective Date
	 	$2.33	 	 	$2.50	 	 	$2.75	 	 	$3.00	 	 	$3.50	 	 	$4.00	 	 	$4.50	 	 	$5.00	 	 	$6.00	 	 	$7.00	 	 	$8.00	 	 	$9.00	 	 	$10.00	 
	 March 21, 2011
	 	 	39.0168	  	 	 	34.1918	  	 	 	28.3352	  	 	 	23.5751	  	 	 	16.3905	  	 	 	11.3781	  	 	 	7.8277	  	 	 	5.2868	  	 	 	2.3784	  	 	 	1.1284	  	 	 	0.4838	  	 	 	0.0449	  	 	 	0.0000	  
	 April 1, 2012
	 	 	39.0168	  	 	 	32.0093	  	 	 	26.6378	  	 	 	22.2923	  	 	 	15.6845	  	 	 	10.9999	  	 	 	7.6138	  	 	 	5.1709	  	 	 	2.3551	  	 	 	1.1280	  	 	 	0.4912	  	 	 	0.0517	  	 	 	0.0000	  
	 April 1, 2013
	 	 	39.0168	  	 	 	28.5834	  	 	 	23.7245	  	 	 	19.9385	  	 	 	14.2375	  	 	 	10.1623	  	 	 	7.1444	  	 	 	4.9228	  	 	 	2.2790	  	 	 	1.1244	  	 	 	0.4942	  	 	 	0.0542	  	 	 	0.0000	  
	 April 1, 2014
	 	 	39.0168	  	 	 	23.9935	  	 	 	18.9170	  	 	 	15.6652	  	 	 	11.2052	  	 	 	8.0932	  	 	 	5.7844	  	 	 	4.0820	  	 	 	2.0583	  	 	 	1.0808	  	 	 	0.4893	  	 	 	0.0544	  	 	 	0.0000	  
	 April 1, 2015
	 	 	39.0168	  	 	 	18.3535	  	 	 	12.3471	  	 	 	9.5143	  	 	 	6.7942	  	 	 	5.0732	  	 	 	3.8522	  	 	 	2.9726	  	 	 	1.8134	  	 	 	1.0498	  	 	 	0.4848	  	 	 	0.0496	  	 	 	0.0000	  
	 April 1, 2016
	 	 	39.0168	  	 	 	9.8323	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  

  
 44 

 The exact Share Prices and Effective Dates may not be set forth in the table above, in which
case: 
 (i) if the Share Price is between two Share Prices in the table above or the Effective Date is between
two Effective Dates in the table, the number of Additional Shares shall be determined by a straight-line interpolation between the number of Additional Shares set forth for the higher and lower Share Prices and the earlier and later Effective Dates,
as applicable, based on a 365-day year; 
 (ii) if the Share Price is greater than $10.00 per share (subject to
adjustment in the same manner as the Share Prices set forth in the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion Rate; and 

(iii) if the Share Price is less than $2.33 per share (subject to adjustment in the same manner as the Share Prices set
forth in the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion Rate. 
 Notwithstanding the foregoing, in no event shall the total number of Common Shares issuable upon conversion exceed 429.1845 per $1,000 principal amount of Notes, subject to adjustment in the same
manner as the Conversion Rate pursuant to Section 10.04. 
 (f) Nothing in this Section 10.03 shall prevent an
adjustment to the Conversion Rate pursuant to Section 10.04 in respect of a Make-Whole Fundamental Change. 
 Section
10.04. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time to time by the Company if any of the following events occurs, except that the Company shall not make any adjustments to the Conversion Rate if Holders of
the Notes participate (other than in the case of a share split or share combination), at the same time and upon the same terms as holders of the Common Shares and solely as a result of holding the Notes, in any of the transactions described in this
Section 10.04, without having to convert their Notes, as if they held a number of Common Shares equal to the Conversion Rate, multiplied by the principal amount (expressed in thousands) of Notes held by such Holder of the Notes.

 (a) If the Company exclusively issues Common Shares as a dividend or distribution on its Common Shares, or if the Company
effects a share split or share combination, the Conversion Rate shall be adjusted based on the following formula: 

 

 

 where, 
  

					
	
CR0
	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date of such dividend or distribution, or immediately prior to the open
of

  
 45 

					
		  		  	business on the effective date of such share split or share combination, as applicable;
			
	 CR’
	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date or effective date;
			
	
OS0
	  	=	  	the number of Common Shares outstanding immediately prior to the open of business on such Ex-Dividend Date or effective date; and
			
	 OS’
	  	=	  	the number of Common Shares outstanding immediately after giving effect to such dividend, distribution, share split or share combination.

Any adjustment made under this Section 10.04(a) shall become effective immediately after the open of business on the Ex-Dividend Date for such
dividend or distribution, or immediately after the open of business on the effective date for such share split or share combination, as applicable. If any dividend or distribution of the type described in this Section 10.04(a) is declared but
not so paid or made, the Conversion Rate shall be immediately readjusted, effective as of the date the Board of Trustees determines not to pay such dividend or distribution, to the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared. 
 (b) If the Company issues to all or substantially all holders of its Common Shares any
rights, options or warrants entitling them, for a period of not more than 45 calendar days after the announcement date of such issuance, to subscribe for or purchase Common Shares at a price per share that is less than the average of the Last
Reported Sale Prices of the Common Shares for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such issuance, the Conversion Rate shall be increased based on the
following formula: 

 

 

 where, 
  

					
	
CR0
	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such issuance;
			
	 CR’
	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;
			
	
OS0
	  	=	  	the number of Common Shares outstanding immediately prior to the open of business on such Ex-Dividend Date;
			
	 X
	  	=	  	the total number of Common Shares issuable pursuant to such rights, options or warrants; and
			
	 Y
	  	=	  	the number of Common Shares equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average of the Last Reported
Sale

  
 46 

					
		  		  	Prices of the Common Shares over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of the issuance of
such rights, options or warrants.

 Any increase made under this Section 10.04(b) shall be made successively whenever any
such rights, options or warrants are issued and shall become effective immediately after the open of business on the Ex-Dividend Date for such issuance. To the extent that Common Shares are not delivered after the expiration of such rights, options
or warrants, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the number of Common
Shares actually delivered. If such rights, options or warrants are not so issued, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect if such Ex-Dividend Date for such issuance had not occurred. 

For purposes of this Section 10.04(b), in determining whether any rights, options or warrants entitle the holders to subscribe for
or purchase Common Shares at less than such average of the Last Reported Sale Prices of the Common Shares for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement for such
issuance, and in determining the aggregate offering price of such Common Shares, there shall be taken into account any consideration received by the Company for such rights, options or warrants and any amount payable on exercise or conversion
thereof, the value of such consideration, if other than cash, to be determined by the Board of Trustees. 
 (c) If the Company
distributes shares of its Capital Stock, evidences of its indebtedness, other assets or property or rights, options or warrants to acquire its Capital Stock or other securities, to all or substantially all holders of the Common Shares, excluding
(i) dividends, distributions or issuances as to which an adjustment was effected pursuant to Section 10.04(a) or Section 10.04(b), (ii) dividends or distributions paid exclusively in cash as to which an adjustment was effected
pursuant to Section 10.04(d), and (iii) Spin-Offs as to which the provisions set forth below in this Section 10.04(c) shall apply (any of such shares of Capital Stock, evidences of indebtedness, other assets or property or rights,
options or warrants to acquire Capital Stock or other securities of the Company, the “Distributed Property”), then the Conversion Rate shall be increased based on the following formula: 

 

 

 where, 
  

					
	
CR0
	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;
			
	 CR’
	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;

  
 47 

					
	
SP0
	  	=	  	the average of the Last Reported Sale Prices of the Common Shares over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the
Ex-Dividend Date for such distribution; and
			
	 FMV
	  	=	  	the fair market value (as determined by the Board of Trustees) of the Distributed Property with respect to each Outstanding Common Share on the Ex-Dividend Date for such
distribution.

 Any increase made under the portion of this Section 10.04(c) above shall become effective
immediately after the open of business on the Ex-Dividend Date for such distribution. If such distribution is not so paid or made, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared. Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than “SP0” (as defined above), in lieu of the foregoing increase, each Holder of a Note shall receive, in respect of each
$1,000 principal amount thereof, at the same time and upon the same terms as holders of the Common Shares receive the Distributed Property, the amount of Distributed Property such Holder would have received if such Holder owned a number of Common
Shares equal to the Conversion Rate in effect on the Ex-Dividend Date for the distribution. If the Board of Trustees determines the “FMV” (as defined above) of any distribution for purposes of this Section 10.04(c) by reference to the
actual or when-issued trading market for any securities, it shall in doing so consider the prices in such market over the same period used in computing the Last Reported Sale Prices of the Common Shares over the 10 consecutive Trading Day period
ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution. 
 With respect to
an adjustment pursuant to this Section 10.04(c) where there has been a payment of a dividend or other distribution on the Common Shares of shares of Capital Stock of any class or series, or similar equity interest, of or relating to a
Subsidiary or other business unit of the Company, that are, or, when issued, will be, listed or admitted for trading on a U.S. national securities exchange (a “Spin-Off”), the Conversion Rate shall be increased based on the
following formula: 

 

 

 where, 
  

					
	
CR0
	  	=	  	the Conversion Rate in effect immediately prior to the end of the Valuation Period;
			
	 CR’
	  	=	  	the Conversion Rate in effect immediately after the end of the Valuation Period;
			
	
FMV0
	  	=	  	the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of the Common Shares applicable to one Common Share
(determined by reference to the definition of Last Reported Sale Price as set forth in Section 1.01 as if references therein to Common Shares were to such Capital Stock or similar equity interest) over the first 10 consecutive Trading Day period
after, and including, the Ex-Dividend Date of the Spin-Off (the “Valuation Period”); and

  
 48 

					
	
MP0
	  	=	  	the average of the Last Reported Sale Prices of the Common Shares over the Valuation Period.

 The adjustment to the Conversion Rate under the preceding paragraph shall occur on the last Trading Day of the Valuation Period; provided that in respect of any conversion during the Valuation
Period, references in the portion of this Section 10.04(c) related to Spin-Offs to 10 Trading Days shall be deemed to be replaced with such lesser number of Trading Days as have elapsed between the Ex-Dividend Date of such Spin-Off and the
Conversion Date in determining the Conversion Rate. 
 For purposes of this Section 10.04(c) (and subject in all respect to
Section 10.11), rights, options or warrants distributed by the Company to all holders of its Common Shares entitling them to subscribe for or purchase shares of the Company’s Capital Stock, including Common Shares (either initially or
under certain circumstances), which rights, options or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such Common Shares; (ii) are not exercisable;
and (iii) are also issued in respect of future issuances of the Common Shares, shall be deemed not to have been distributed for purposes of this Section 10.04(c) (and no adjustment to the Conversion Rate under this Section 10.04(c)
will be required) until the occurrence of the earliest Trigger Event, whereupon such rights, options or warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made under
this Section 10.04(c). If any such right, option or warrant, including any such existing rights, options or warrants distributed prior to the date of this Supplemental Indenture, are subject to events, upon the occurrence of which such rights,
options or warrants become exercisable to purchase different securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and Ex-Dividend Date with
respect to new rights, options or warrants with such rights (in which case the existing rights, options or warrants shall be deemed to terminate and expire on such date without exercise by any of the holders thereof). In addition, in the event of
any distribution (or deemed distribution) of rights, options or warrants, or any Trigger Event or other event (of the type described in the immediately preceding sentence) with respect thereto that was counted for purposes of calculating a
distribution amount for which an adjustment to the Conversion Rate under this Section 10.04(c) was made, (1) in the case of any such rights, options or warrants that shall all have been redeemed or purchased without exercise by any holders
thereof, upon such final redemption or purchase (x) the Conversion Rate shall be readjusted as if such rights, options or warrants had not been issued and (y) the Conversion Rate shall then again be readjusted to give effect to such
distribution, deemed distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or purchase price received by a holder or holders of Common Shares with respect to such rights, options
or warrants (assuming such holder had retained such rights, options or warrants), made to all holders of Common Shares as of the date of such redemption or purchase, and (2) in the case of such rights, options or warrants that shall have
expired or been terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights, options and warrants had not been issued. 
 For purposes of Section 10.04(a), Section 10.04(b) and this Section 10.04(c), any dividend or distribution to which this Section 10.04(c) is applicable that also includes one or both
of: 

  
 49 

 (A) a dividend or distribution of Common Shares to which Section 10.04(a) is applicable
(the “Clause A Distribution”); or 
 (B) a dividend or distribution of rights, options or warrants to which
Section 10.04(b) is applicable (the “Clause B Distribution”), 
 then (1) such dividend or
distribution, other than the Clause A Distribution and the Clause B Distribution, shall be deemed to be a dividend or distribution to which this Section 10.04(c) is applicable (the “Clause C Distribution”) and any Conversion
Rate adjustment required by this Section 10.04(c) with respect to such Clause C Distribution shall then be made, and (2) the Clause A Distribution and Clause B Distribution shall be deemed to immediately follow the Clause C Distribution
and any Conversion Rate adjustment required by Section 10.04(a) and Section 10.04(b) with respect thereto shall then be made, except that, if determined by the Company (I) the “Ex-Dividend Date” of the Clause A Distribution
and the Clause B Distribution shall be deemed to be the Ex-Dividend Date of the Clause C Distribution and (II) any Common Shares included in the Clause A Distribution or Clause B Distribution shall be deemed not to be “outstanding immediately
prior to the open of business on such Ex-Dividend Date or effective date” within the meaning of Section 10.04(a) or “outstanding immediately prior to the open of business on such Ex-Dividend Date” within the meaning of
Section 10.04(b). 
 (d) If any cash dividend or distribution is made to all or substantially all holders of the Common
Shares during the period from, and including, the date of the initial issuance of the Notes to, and including, March 31, 2012 (the “Initial Dividend Period”) or during any subsequent annual period from, and including, each
April 1 to, and including, the immediately following March 31 (the Initial Dividend Period and each such annual period, an “Annual Dividend Period”) that, when added to all other cash dividends or distributions made to all
or substantially all holders of Common Shares in such Annual Dividend Period, exceeds $0.03 per share (the “Initial Dividend Threshold”), the Conversion Rate shall be adjusted based on the following formula: 

 

 

 where, 
  

					
	
CR0
	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution;
			
	 CR’
	  	=	  	the Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date for such dividend or distribution;
			
	
SP0
	  	=	  	the Last Reported Sale Price of the Common Shares on the Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution;
			
	 T
	  	=	  	the Initial Dividend Threshold; provided that after the first adjustment made under this Section 10.04(d) with respect to a particular Annual Dividend Period, the
value

  
 50 

					
		  		  	of “T” for each subsequent adjustment under this Section 10.04(d) with respect to the same Annual Dividend Period shall be deemed to be zero; and
			
	 C
	  	=	  	the aggregate amount of cash per share the Company distributes to all or substantially all holders of Common Shares in the relevant Annual Dividend Period; provided that
after the first adjustment made under this Section 10.04(d) with respect to a particular Annual Dividend Period, the value of “C” for each subsequent adjustment under this Section 10.04(d) with respect to the same Annual Dividend Period
shall be deemed to be the amount of the cash dividend or distribution causing such subsequent adjustment.

 The Initial Dividend
Threshold shall be subject to adjustment in a manner inversely proportional to adjustments to the Conversion Rate; provided that no adjustment shall be made to the Initial Dividend Threshold for any adjustment to the Conversion Rate pursuant
to this Section 10.04(d). 
 Any increase pursuant to this Section 10.04(d) shall become effective immediately
after the open of business on the Ex-Dividend Date for such dividend or distribution. If such dividend or distribution is not so paid, the Conversion Rate shall be decreased, effective as of the date the Board of Trustees determines not to make or
pay such dividend or distribution, to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. Notwithstanding the foregoing, if “C” (as defined above) is equal to or greater than
“SP0” (as defined above), in lieu of the foregoing
increase, each Holder of a Note shall receive, for each $1,000 principal amount of Notes, at the same time and upon the same terms as holders of Common Shares, the amount of cash that such Holder would have received if such Holder owned a number of
Common Shares equal to the Conversion Rate on the Ex-Dividend Date for such cash dividend or distribution. 
 (e) If the Company
or any of its Subsidiaries make a payment in respect of a tender or exchange offer for the Common Shares, to the extent that the cash and value of any other consideration included in the payment per Common Share exceeds the Last Reported Sale Price
of the Common Shares on the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer, the Conversion Rate shall be increased based on the following formula: 

 

 

 where, 
  

					
	
CR0
	  	=	  	the Conversion Rate in effect immediately prior to the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date
such tender or exchange offer expires;
			
	 CR’
	  	=	  	the Conversion Rate in effect immediately after the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such
tender or exchange offer expires;

  
 51 

					
	 AC
	  	=	  	the aggregate value of all cash and any other consideration (as determined by the Board of Trustees) paid or payable for Common Shares purchased in such tender or exchange
offer;
			
	
OS0
	  	=	  	the number of Common Shares outstanding immediately prior to the date such tender or exchange offer expires (prior to giving effect to the purchase of all Common Shares accepted
for purchase or exchange in such tender or exchange offer);
			
	 OS’
	  	=	  	the number of Common Shares outstanding immediately after the date such tender or exchange offer expires (after giving effect to the purchase of all Common Shares accepted for
purchase or exchange in such tender or exchange offer); and
			
	 SP’
	  	=	  	the average of the Last Reported Sale Prices of the Common Shares over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the
date such tender or exchange offer expires.

 The adjustment to the Conversion Rate under this Section 10.04(e) shall occur
at the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires; provided that in respect of any conversion within the 10 Trading Days
immediately following, and including, the expiration date of any tender or exchange offer, references in this Section 10.04(e) with respect to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed
between the date that such tender or exchange offer expires and the Conversion Date in determining the Conversion Rate. 
 (f)
Notwithstanding this Section 10.04 or any other provision of the Indenture or the Notes, if a Conversion Rate adjustment becomes effective on any Ex-Dividend Date, and a Holder that has converted its Notes on or after such Ex-Dividend Date and
on or prior to the related Record Date would be treated as the record holder of the Common Shares as of the related Conversion Date as described under Section 10.02(i) based on an adjusted Conversion Rate for such Ex-Dividend Date, then,
notwithstanding the Conversion Rate adjustment provisions in this Section 10.04, the Conversion Rate adjustment relating to such Ex-Dividend Date shall not be made for such converting Holder. Instead, such Holder shall be treated as if such
Holder were the record owner of the Common Shares on an unadjusted basis and participate in the related dividend, distribution or other event giving rise to such adjustment. 
 (g) Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance of Common Shares or any securities convertible into or exchangeable for Common Shares or the right to
purchase Common Shares or such convertible or exchangeable securities. 
 (h) In addition to those adjustments required by
clauses (a), (b), (c), (d) and (e) of this Section 10.04, and to the extent permitted by applicable law and subject to the applicable rules of The New York Stock Exchange, the Company from time to time may increase the Conversion Rate
by any amount for a period of at least 20 Business Days if the Board of Trustees determines that such increase would be in the Company’s best interest. In addition, the Company may (but is not required to) increase the Conversion Rate to avoid
or diminish any income tax to holders 

  
 52 

 
of Common Shares or rights to purchase Common Shares in connection with a dividend or distribution of shares (or rights to acquire Common Shares) or similar event. Whenever the Conversion Rate is
increased pursuant to either of the preceding two sentences, the Company shall mail to the Holder of each Note at its last address appearing on the Debt Security Register 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. 
 (i) Notwithstanding anything to the contrary in this Article 10, the Conversion Rate shall not be adjusted: 
 (i) upon the issuance of any Common Shares pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the investment of
additional optional amounts in Common Shares under any plan; 
 (ii) upon the issuance of any Common Shares or
options or rights to purchase Common Shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of the Company’s Subsidiaries; 

(iii) upon the issuance of any Common Shares pursuant to any option, warrant, right or exercisable, exchangeable or
convertible security not described in clause (ii) of this subsection and Outstanding as of the date the Notes were first issued; 
 (iv) solely for a change in the par value of the Common Shares; or 

(v) for accrued and unpaid interest, if any. 
 (j) All calculations and other determinations under this Article 10 shall be made by the Company and shall be made to the nearest one-ten thousandth (1/10,000) of a share. 

(k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the Trustee (and the Conversion
Agent if not 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 Trust Officer 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 without inquiry 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 each Holder of the Notes at its last address appearing on the Debt Security Register. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 

(l) For purposes of this Section 10.04, the number of Common Shares at any time outstanding shall not include shares held in the
treasury of the Company so long as the Company 

  
 53 

 
does not pay any dividend or make any distribution on Common Shares held in the treasury of the Company, but shall include shares issuable in respect of scrip certificates issued in lieu of
fractions of Common Shares. 
 Section 10.05. Adjustments of Prices. Whenever any provision of the Indenture requires the
Company to calculate the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts over a span of multiple days (including an Observation Period and the period for determining the Share Price for
purposes of a Make-Whole Fundamental Change), the Board of Trustees shall make appropriate adjustments to each to account for any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion Rate
where the Ex-Dividend Date of the event occurs, at any time during the period when the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts are to be calculated. 

Section 10.06. Shares to Be Fully Paid. The Company shall provide, free from preemptive rights, out of its authorized but unissued
shares or shares held in treasury, sufficient Common Shares to provide for conversion of the Notes from time to time as such Notes are presented for conversion (assuming that at the time of computation of such number of shares, all such Notes would
be converted by a single Holder of the Notes and that Physical Settlement is applicable). 
 Section 10.07. Effect of
Recapitalizations, Reclassifications and Changes of the Common Shares. 
 (a) In the case of: 

(i) any recapitalization, reclassification or change of the Common Shares (other than changes resulting from a subdivision
or combination), 
 (ii) any consolidation, merger or combination involving the Company, 

(iii) any sale, lease or other transfer to a third party of the consolidated assets of the Company and the Company’s
Subsidiaries substantially as an entirety or 
 (iv) any statutory share exchange, 

in each case, as a result of which the Common Shares would be converted into, or exchanged for, stock, other securities, other property or assets
(including cash or any combination thereof) (any such event, a “Merger Event”), then, at and after the effective time of such Merger Event, the right to convert each $1,000 principal amount of Notes shall be changed into a right to
convert such principal amount of Notes into the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) that a holder of a number of Common Shares equal to the Conversion Rate
immediately prior to such Merger Event would have owned or been entitled to receive (the “Reference Property”, with each “unit of Reference Property” meaning the kind and amount of Reference Property that a holder
of one Common Share is entitled to receive) upon such Merger Event and, prior to or at the effective time of such Merger Event, the Company or the successor or purchasing Person, as the case may

  
 54 

 
be, shall execute with the Trustee a supplemental indenture permitted under Section 7.02(b) providing for such change in the right to convert each $1,000 principal amount of Notes;
provided, however, that at and after the effective time of the Merger Event (A) the Company shall continue to have the right to determine the form of consideration to be paid or delivered, as the case may be, upon conversion of
Notes in accordance with Section 10.02 and (B) (I) any amount payable in cash upon conversion of the Notes in accordance with Section 10.02 shall continue to be payable in cash, (II) any Common Shares that the Company would have
been required to deliver upon conversion of the Notes in accordance with Section 10.02 shall instead be deliverable in the amount and type of Reference Property that a holder of that number of Common Shares would have been entitled to receive
in such Merger Event and (III) the Daily VWAP shall be calculated based on the value of a unit of Reference Property. 
 If the
Merger Event causes the Common Shares to be converted into, or exchanged for, the right to receive more than a single type of consideration (determined based in part upon any form of shareholder election), then (i) the Reference Property into
which the Notes will be convertible shall be deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Shares that affirmatively make such an election, and (ii) the unit of Reference Property
for purposes of the immediately preceding paragraph shall refer to the consideration referred to in clause (i) attributable to one Common Share. If the holders receive only cash in such Merger Event, then for all conversions that occur after
the effective date of such Merger Event (x) the consideration due upon conversion of each $1,000 principal amount of Notes shall be solely cash in an amount equal to the Conversion Rate in effect on the Conversion Date (as may be increased by
any Additional Shares pursuant to Section 10.03), multiplied by the price paid per Common Share in such Merger Event and (y) the Company shall satisfy the Conversion Obligation by paying cash to converting Holders of the Notes on
the third Business Day immediately following the Conversion Date. The Company shall notify Holders of the Notes, the Trustee and the Conversion Agent in writing (if other than the Trustee) of such weighted average as soon as practicable after such
determination is made. 
 Such supplemental indenture described in the second immediately preceding paragraph shall provide for
adjustments that shall be as nearly equivalent as is possible to the adjustments provided for in this Article 10. If, in the case of any Merger Event, the Reference Property includes shares of stock, securities or other property or assets (including
cash or any combination thereof) of a Person other than the successor or purchasing corporation, as the case may be, in such Merger Event, then such supplemental indenture shall also be executed by such other Person and shall contain such additional
provisions to protect the interests of the Holders of the Notes as the Board of Trustees shall reasonably consider necessary by reason of the foregoing, including to the extent required by the Board of Trustees and practicable the provisions
providing for the purchase rights set forth in Article 11. 
 (b) In the event the Company shall execute a supplemental
indenture pursuant to subsection (a) of this Section 10.07, the Company shall promptly file with the Trustee an Officers’ Certificate briefly stating the reasons therefore, the kind or amount of cash, securities or property or asset
that will comprise the Reference Property after any such Merger Event, any adjustment to be made with respect thereto and that all conditions precedent have been complied with, and shall promptly mail notice thereof to all Holders of the Notes. The
Company shall cause notice of the execution of such supplemental indenture to be mailed to each Holder of the 

  
 55 

 
Notes, at its address appearing on the Debt Security Register, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such
supplemental indenture. 
 (c) The Company shall not become a party to any Merger Event unless its terms are consistent with
this Section 10.07. None of the foregoing provisions shall affect the right of a Holder of the Notes to convert its Notes into cash, Common Shares or a combination of cash and Common Shares, as applicable, as set forth in Section 10.01 and
Section 10.02 prior to the effective date of such Merger Event. 
 (d) The above provisions of this Section shall similarly
apply to successive Merger Events. 
 (e) In connection with any Merger Event, the Initial Dividend Threshold shall be subject
to adjustment as described in clause (i), clause (ii) or clause (iii) below, as the case may be. 
 (i)
In the case of a Merger Event in which the Reference Property (determined, as appropriate, pursuant to subsection (a) above and excluding any dissenters’ appraisal rights) is composed entirely of shares of common stock (the “Merger
Common Stock”), the Initial Dividend Threshold at and after the effective time of such Merger Event will be equal to (x) the Initial Dividend Threshold immediately prior to the effective time of such Merger Event, divided by
(y) the number of shares of Merger Common Stock that a holder of one Common Share would receive in such Merger Event (such quotient rounded down to nearest cent). 

(ii) In the case of a Merger Event in which the Reference Property (determined, as appropriate, pursuant to subsection
(a) above and excluding any dissenters’ appraisal rights) is composed in part of shares of Merger Common Stock, the Initial Dividend Threshold at and after the effective time of such Merger Event will be equal to (x) the Initial
Dividend Threshold immediately prior to the effective time of such Merger Event, multiplied by (y) the Merger Valuation Percentage for such Merger Event (such product rounded down to nearest cent). 

(iii) For the avoidance of doubt, in the case of a Merger Event in which the Reference Property (determined, as
appropriate, pursuant to subsection (a) above and excluding any dissenters’ appraisal rights) is composed entirely of consideration other than shares of common stock, the Initial Dividend Threshold at and after the effective time of such
Merger Event will be equal to zero. 
 Section 10.08. Certain Covenants. (a) The Company covenants that all Common
Shares issued upon conversion of Notes will be fully paid and non-assessable by the Company and free from all taxes, liens and charges with respect to the issue thereof. 
 (b) The Company covenants that, if any Common Shares 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 

  
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upon conversion, the Company will, to the extent then permitted by the rules and interpretations of the SEC, secure such registration or approval, as the case may be. 

(c) The Company further covenants that if at any time the Common Shares shall be listed on any national securities exchange or automated
quotation system the Company will list and keep listed, so long as the Common Shares shall be so listed on such exchange or automated quotation system, any Common Share issuable upon conversion of the Notes. 

Section 10.09. 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 the Notes to determine the Conversion Rate (or any adjustment thereto) or whether any facts exist that may require any adjustment (including any increase) 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 Common Shares, or of any securities, property or cash that 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 Common Shares 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. Without limiting the generality of the foregoing, neither
the Trustee nor any Conversion Agent shall be under any responsibility to determine whether a supplemental indenture pursuant to Section 10.07 needs to be entered into or the correctness of any provisions contained in any supplemental indenture
entered into pursuant to Section 10.07 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by Holders of the Notes upon the conversion of their Notes after any event referred to in such
Section 10.07 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 7.01 of the Base Indenture, may accept (without any independent investigation) as conclusive evidence of the correctness of any
such provisions, and shall be protected in conclusively 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 10.10. Notice to Holders of the Notes Prior to Certain Actions. In case of any: 

(a) action by the Company or one of its Subsidiaries that would require an adjustment in the Conversion Rate pursuant to
Section 10.04 or Section 10.11; 
 (b) Merger Event; or 

(c) voluntary or involuntary dissolution, liquidation or winding-up of the Company or any of its Subsidiaries; 

then, in each case (unless notice of such event is otherwise required pursuant to another provision of the Indenture), the Company shall cause to be
filed with the Trustee and the Conversion Agent (if other than the Trustee) and to be mailed to each Holder of the Notes at its 

  
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address appearing on the Debt Security Register, as promptly as possible but in any event at least 20 days prior to the applicable date hereinafter specified, a notice stating (i) the date
on which a record is to be taken for the purpose of such action by the Company or one of its Subsidiaries or, if a record is not to be taken, the date as of which the holders of Common Shares of record are to be determined for the purposes of such
action by the Company or one of its Subsidiaries, or (ii) the date on which such Merger Event, 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
Shares of record shall be entitled to exchange their Common Shares for securities or other property deliverable upon such Merger Event, dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such action by the Company or one of its Subsidiaries, Merger Event, dissolution, liquidation or winding-up. 
 Section 10.11. Shareholder Rights Plans. To the extent that the Company has a rights plan in effect upon conversion of the Notes, each Common Share, if any, issued upon such conversion shall be
entitled to receive the appropriate number of rights, if any, and any certificate representing the Common Share issued upon such conversion shall bear such legends, if any, in each case as may be provided by the terms of any such shareholder rights
plan, as the same may be amended from time to time. If at the time of conversion, however, the rights have separated from the Common Shares in accordance with the provisions of the applicable shareholder rights plan so that the Holders of the Notes
would not be entitled to receive any rights in respect of Common Shares, if any, issuable upon conversion of the Notes, the Conversion Rate shall be adjusted at the time of separation as if the Company distributed to all or substantially all holders
of Common Shares shares of Capital Stock of the Company, evidences of its indebtedness, other assets or property or rights, options or warrants to acquire its Capital Stock or other securities as provided in Section 10.04(c), subject to
readjustment in the event of the expiration, termination or redemption of such rights. 
 Section 10.12. Ownership Limit;
Withholding Tax. 
 (a) Notwithstanding any other provision of the Indenture or the Notes, no Holder of the Notes shall be
entitled to receive Common Shares upon a conversion of any Notes to the extent that receipt of such Common Shares would cause such Holder (together with the Affiliates of such Holder) to exceed the ownership limit contained in the Charter (the
“Settlement Blocker”). If any delivery of Common Shares owed to a Holder of the Notes upon conversion of any Notes is not made, in whole or in part, as a result of the Settlement Blocker, the Company’s obligation to make such
delivery shall not be extinguished and the Company shall deliver, or cause to be delivered, such Common Shares as promptly as practicable after such delivery would not cause such Holder (together with the Affiliates of such Holder) to exceed the
ownership limit contained in the Charter and such Holder gives notice thereof to the Company. 
 (b) If the Settlement Blocker
is applicable to any delivery of Common Shares upon conversion of any Notes, the Company shall promptly deliver written notice thereof to the Trustee and the Conversion Agent. Neither the Trustee nor the Conversion Agent shall be charged with
knowledge that such conversion of any Notes is subject to the Settlement Blocker unless either (i) a Trust Officer or the Conversion Agent, as the case may be, shall have actual knowledge thereof or (ii) written notice thereof has been
provided to the Trustee or the Conversion Agent, as the case may be, by the Company. The Trustee and the Conversion Agent 

  
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may, for purposes of the Indenture, conclusively rely on any such notice from the Company in accordance with the provisions of Section 7.07 of the Base Indenture. 

ARTICLE 11 

REPURCHASE OF NOTES AT OPTION OF
HOLDERS 
 Section 11.01. Repurchase at Option of Holders of the Notes. 

(a) Each Holder of the Notes shall have the right, at such Holder’s option, to require the Company to repurchase for cash on each of
April 1, 2016, April 1, 2021 and April 1, 2026 (each, a “Repurchase Date”), all of such Holder’s Notes, or any portion thereof that is equal to $1,000 principal amount or an integral multiple of $1,000
principal amount, at a repurchase price (the “Repurchase Price”) that is equal to 100% of the principal amount of the Notes to be repurchased, together with accrued and unpaid interest to, but excluding, such Repurchase Date;
provided that any such accrued and unpaid interest shall be paid not to the Holders of the Notes submitting the Notes for repurchase on the relevant Repurchase Date but instead to the Holders of such Notes at the close of business on the
Regular Record Date immediately preceding such Repurchase Date. 
 (b) Not later than 20 Business Days prior to each Repurchase
Date, the Company shall provide to all Holders of the Notes and the Trustee and the Paying Agent (in the case of a Paying Agent other than the Trustee) a notice (the “Company Notice”). Each Company Notice shall include a form of
Repurchase Notice to be completed by a holder, and shall specify: 
 (i) the CUSIP number and the designation of
the Notes; 
 (ii) the last date on which a Holder of the Notes may exercise its repurchase right pursuant to
this Section 11.01 (the “Repurchase Expiration Time”); 
 (iii) the Repurchase Price;

 (iv) the name and address of the Conversion Agent and Paying Agent; 

(v) that the Notes with respect to which a Repurchase Notice has been delivered by a Holder of the Notes may be converted
only if the Holder withdraws the Repurchase Notice in accordance with the terms of the Indenture; 
 (vi) that a
Holder of the Notes shall have the right to withdraw any Notes surrendered prior to the Repurchase Expiration Time; and 
 (vii) the procedures a Holder of the Notes must follow to exercise its repurchase rights under this Section 11.01 and a brief description of those rights. 

At the Company’s written request, the Trustee shall give such notice in the Company’s name and at the Company’s expense;
provided, however, that, in all cases, the text of such Company Notice shall be prepared by the Company. 

  
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 Such notice shall be by first class mail to the Trustee, to the Paying Agent and to each
Holder of the Notes at its address shown in the Debt Security Register (and to beneficial owners as required by applicable law) or, in the case of Global Notes, in accordance with the applicable procedures of the Depositary. Simultaneously with
providing the Company Notice, the Company shall publish a notice containing the information included in the Company Notice in a newspaper of general circulation in The City of New York or publish such information on the Company’s website or
through such other public medium as the Company may use at that time. 
 No failure of the Company to give the foregoing notices
and no defect therein shall limit the repurchase rights of the Holders of the Notes or affect the validity of the proceedings for the repurchase of the Notes pursuant to this Section 11.01. 

(c) Repurchases of Notes under this Section 11.01 shall be made, at the option of the Holder of the Notes thereof, upon: 

(i) delivery to the Paying Agent by the Holder of the Notes of a duly completed notice (the “Repurchase
Notice”) in the form set forth in Attachment 3 to the Form of Note attached hereto as Exhibit A, if the Notes are Physical Notes, or in compliance with the Depositary’s procedures for surrendering interests in Global Notes, if the
Notes are Global Notes, in each case during the period beginning at any time from the open of business on the date that is 20 Business Days prior to the relevant Repurchase Date until the close of business on the Business Day immediately preceding
the Repurchase Date; and 
 (ii) delivery of the Notes, if the Notes are Physical Notes, to the Paying Agent at
any time after delivery of the Repurchase Notice (together with all necessary endorsements for transfer) at the Corporate Trust Office of the Paying Agent, or book-entry transfer of the Notes, if the Notes are Global Notes, in compliance with the
procedures of the Depositary, in each case such delivery being a condition to receipt by the Holder of the Notes of the Repurchase Price therefor. 
 (d) The Repurchase Notice in respect of any Notes to be repurchased shall state: 
 (i) in the case of Physical Notes, the certificate numbers of the Notes to be delivered for repurchase; 
 (ii) the portion of the principal amount of the Notes to be repurchased, which must be $1,000 or an integral multiple thereof; and 

(iii) that the Notes are to be repurchased by the Company pursuant to the applicable provisions of the Notes and the
Indenture; 
 provided, however, that if the Notes are Global Notes, the Repurchase Notice must comply with appropriate Depositary
procedures. 
 Notwithstanding anything herein to the contrary, any Holder of the Notes delivering to the Paying Agent the
Repurchase Notice contemplated by this Section 11.01 shall have the right 

  
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to withdraw, in whole or in part, such Repurchase Notice at any time prior to the close of business on the Business Day immediately preceding the Repurchase Date by delivery of a written notice
of withdrawal to the Paying Agent in accordance with Section 11.03. 
 The Paying Agent shall promptly notify the Company
of the receipt by it of any Repurchase Notice or written notice of withdrawal thereof. 
 No Repurchase Notice with respect to
any Notes may be surrendered by a Holder of the Notes thereof if such Holder has also surrendered a Fundamental Change Repurchase Notice and not validly withdrawn such Fundamental Change Repurchase Notice in accordance with Section 11.03.

 (e) Notwithstanding the foregoing, no Notes may be repurchased by the Company at the option of the Holders of the Notes on
any Repurchase Date if the principal amount of the Notes has been accelerated, and such acceleration has not been rescinded, on or prior to such Repurchase Date (except in the case of an acceleration resulting from a Default by the Company in the
payment of the Repurchase Price with respect to such Notes). The Paying Agent will promptly return to the respective Holders of the Notes thereof any Physical Notes held by it during the acceleration of the Notes (except in the case of an
acceleration resulting from a Default by the Company in the payment of the Repurchase Price with respect to such Notes), or any instructions for book-entry transfer of the Notes in compliance with the procedures of the Depositary shall be deemed to
have been canceled, and, upon such return or cancellation, as the case may be, the Repurchase Notice with respect thereto shall be deemed to have been withdrawn. 
 Section 11.02. Repurchase at Option of Holders of the Notes Upon a Fundamental Change. (a) If a Fundamental Change occurs at any time, each Holder of the Notes shall have the right, at such
Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes, or any portion thereof that is equal to $1,000 principal amount or an integral multiple of $1,000 principal amount, on the date (the
“Fundamental Change Repurchase Date”) specified by the Company that is not less than 20 calendar days or more than 35 calendar days following the date of the Fundamental Change Company Notice at a repurchase price equal to 100% of
the principal amount of the Notes to be repurchased, together with accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”); provided that if the
Fundamental Change Repurchase Date falls after a Regular Record Date but on or prior to the Interest Payment Date to which such Regular Record Date relates, then any such accrued and unpaid interest shall be paid not to the Holders of the Notes
submitting the Notes for repurchase on the Fundamental Change Repurchase Date but instead to the Holders of such Notes at the close of business on the Regular Record Date, and the Fundamental Change Repurchase Price shall be equal to 100% of the
principal amount of Notes to be repurchased pursuant to this Article 11. 
 (b) On or before the 20th calendar day after the
occurrence of the effective date of a Fundamental Change, the Company shall provide to all Holders of the Notes and the Trustee and the Paying Agent (in the case of a Paying Agent other than the Trustee) a notice (the “Fundamental Change
Company Notice”) of the occurrence of the effective date of the 

  
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Fundamental Change and of the repurchase right at the option of the Holders of the Notes arising as a result thereof. Each Fundamental Change Company Notice shall specify: 

(i) the CUSIP number and the designation of the Notes; 

(ii) the events causing the Fundamental Change; 

(iii) the date of the Fundamental Change; 

(iv) the last date on which a Holder of the Notes may exercise the repurchase right pursuant to this Article 11;

 (v) the Fundamental Change Repurchase Price; 

(vi) the Fundamental Change Repurchase Date; 

(vii) the name and address of the Paying Agent and the Conversion Agent, if applicable; 

(viii) if applicable, the Conversion Rate and any adjustments to the Conversion Rate; 

(ix) if applicable, that the Notes with respect to which a Fundamental Change Repurchase Notice has been delivered by a
Holder of the Notes may be converted only if such Holder withdraws the Fundamental Change Repurchase Notice in accordance with the terms of the Indenture; 
 (x) the procedures that Holders of the Notes must follow to require the Company to repurchase their Notes. 
 At the Company’s written request, the Trustee shall give such notice in the Company’s name and at the Company’s expense; provided, however, that, in all cases, the text of
such Fundamental Change Company Notice shall be prepared by the Company. 
 Such notice shall be by first class mail to the
Trustee, to the Paying Agent and to each Holder of the Notes at its address shown in the Debt Security Register (and to beneficial owners as required by applicable law) or, in the case of Global Notes, in accordance with the applicable procedures of
the Depositary. Simultaneously with providing such notice, the Company shall publish a notice containing the information set forth in the Fundamental Change Company Notice in a newspaper of general circulation in The City of New York or publish such
information on the Company’s website or through such other public medium as the Company may use at that time. 
 No failure
of the Company to give the foregoing notices and no defect therein shall limit the repurchase rights of the Holders of the Notes or affect the validity of the proceedings for the repurchase of the Notes pursuant to this Section 11.02.

  
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 (c) Repurchases of Notes under this Section 11.02 shall be made, at the option of the
Holder of the Notes thereof, upon: 
 (i) delivery to the Paying Agent by a Holder of the Notes of a duly
completed notice (the “Fundamental Change Repurchase Notice”) in the form set forth in Attachment 2 to the Form of Note attached hereto as Exhibit A, if the Notes are Physical Notes, or in compliance with the Depositary’s
procedures for surrendering interests in Global Notes, if the Notes are Global Notes, in each case on or before the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date; and 

(ii) delivery of the Notes, if the Notes are Physical Notes, to the Paying Agent at any time after delivery of the
Fundamental Change Repurchase Notice (together with all necessary endorsements for transfer) at the Corporate Trust Office of the Paying Agent, or book-entry transfer of the Notes, if the Notes are Global Notes, in compliance with the procedures of
the Depositary, in each case such delivery being a condition to receipt by the Holder of the Notes of the Fundamental Change Repurchase Price therefor. 
 (d) The Fundamental Change Repurchase Notice in respect of any Notes to be repurchased shall state: 
 (i) in the case of Physical Notes, the certificate numbers of the Notes to be delivered for repurchase; 
 (ii) the portion of the principal amount of the Notes to be repurchased, which must be $1,000 or an integral multiple thereof; and 

(iii) that the Notes are to be repurchased by the Company pursuant to the applicable provisions of the Notes and the
Indenture; 
 provided, however, that if the Notes are Global Notes, the Fundamental Change Repurchase Notice must comply with
appropriate Depositary procedures. 
 Notwithstanding anything herein to the contrary, any Holder of the Notes delivering to the
Paying Agent the Fundamental Change Repurchase Notice contemplated by this Section 11.02 shall have the right to withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 11.03. 
 The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal thereof. 

(e) Notwithstanding the foregoing, no Notes may be repurchased by the Company on any date at the option of the Holders of the Notes upon
a Fundamental Change if the principal amount of the Notes has been accelerated, and such acceleration has not been rescinded, on or prior to such date (except in the case of an acceleration resulting from a Default by the Company

  
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in the payment of the Fundamental Change Repurchase Price with respect to such Notes). The Paying Agent will promptly return to the respective Holders of the Notes thereof any Physical Notes held
by it during the acceleration of the Notes (except in the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental Change Repurchase Price with respect to such Notes), or any instructions for book-entry
transfer of the Notes in compliance with the procedures of the Depositary shall be deemed to have been canceled, and, upon such return or cancellation, as the case may be, the Fundamental Change Repurchase Notice with respect thereto shall be deemed
to have been withdrawn. 
 Section 11.03. Withdrawal of Repurchase Notice or Fundamental Change Repurchase Notice.
(a) A Repurchase Notice or Fundamental Change Repurchase Notice may be withdrawn (in whole or in part) by means of a written notice of withdrawal delivered to the Corporate Trust Office of the Paying Agent in accordance with this
Section 11.03 at any time prior to the close of business on the Business Day immediately preceding the Repurchase Date or prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, as the
case may be, specifying: 
 (i) the principal amount of the Notes with respect to which such notice of withdrawal
is being submitted; 
 (ii) if Physical Notes have been issued, the certificate number of the Note in respect of
which such notice of withdrawal is being submitted; and 
 (iii) the principal amount, if any, of such Note that
remains subject to the original Repurchase Notice or Fundamental Change Repurchase Notice, as the case may be, which portion must be in principal amounts of $1,000 or an integral multiple of $1,000; 

provided, however, that if the Notes are Global Notes, the notice must comply with appropriate procedures of the Depositary. 

Section 11.04. Deposit of Repurchase Price or Fundamental Change Repurchase Price. (a) The Company shall deposit with the
Trustee (or other Paying Agent appointed by the Company, or if the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 4.04 of the Base Indenture) on or prior to 11:00 a.m., New York City
time, on the Repurchase Date or Fundamental Change Repurchase Date, as the case may be, an amount of money sufficient to repurchase all of the Notes to be repurchased at the appropriate Repurchase Price or Fundamental Change Repurchase Price.
Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed by the Company), payment for Notes surrendered for repurchase (and not withdrawn prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date) will be made on the later of (i) the Repurchase Date or Fundamental Change Repurchase Date, as the case may be, with respect to such Note (provided the Holder of the Notes has satisfied the conditions
in Section 11.01 or Section 11.02, as the case may be) and (ii) the time of book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent appointed by the Company) by the Holder thereof in the manner required
by Section 11.01 or Section 11.02, as applicable, by mailing checks for the amount payable to the Holders of such Notes entitled thereto as they shall appear in the Debt 

  
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Security Register; provided, however, that payments to the Depositary shall be made by wire transfer of immediately available funds to the account of the Depositary or its nominee.
The Trustee shall, promptly after such payment and upon written demand by the Company, return to the Company any funds in excess of the Repurchase Price or Fundamental Change Repurchase Price, as the case may be. 

(b) If by 11:00 a.m. New York City time, on the Repurchase Date or Fundamental Change Repurchase Date, as the case may be, the Trustee
(or other Paying Agent appointed by the Company) holds money sufficient to make payment on all the Notes or portions thereof that are to be repurchased on such Repurchase Date or Fundamental Change Repurchase Date, as the case may be, then
(i) such Notes will cease to be Outstanding, (ii) interest will cease to accrue on such Notes (whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or Paying Agent) and
(iii) all other rights of the Holders of such Notes will terminate (other than the right to receive the Repurchase Price or Fundamental Change Repurchase Price, as the case may be,). 

(c) Upon surrender of a Note that is to be repurchased in part pursuant to Section 11.01 or Section 11.02, the Company shall
execute and the Trustee upon receipt of a Company Order shall authenticate and deliver to the Holder a new Note in an authorized denomination equal in principal amount to the unrepurchased portion of the Note surrendered. 

Section 11.05. Covenant to Comply with Applicable Laws Upon Repurchase of Notes. In connection with any repurchase offer, the
Company shall, if required: 
 (a) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer rules under
the Exchange Act; 
 (b) file a Schedule TO or any successor or similar schedule; and 

(c) otherwise comply with all federal and state securities laws in connection with any offer by the Company to repurchase the Notes;

 in each case, so as to permit the rights and obligations under this Article 11 to be exercised in the time and in the manner specified in
this Article 11. 
 ARTICLE 12 
 OPTIONAL REDEMPTION 
 Section 12.01.
Applicability of Article III of the Base Indenture. Article III of the Base Indenture shall not apply to the Notes. Instead the redemption provisions set forth in this Article 12 shall, with respect to the Notes, supersede in their entirety
Article III of the Base Indenture, and all references in the Base Indenture to Article III thereof and the redemption provisions therein, as the case may be, shall, with respect to the Notes, be deemed to be references to this Article 12 the
redemption provisions set forth in this Article 12, respectively. 

  
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 Section 12.02. Optional Redemption. No sinking fund is provided for the Notes. The
Notes shall not be redeemable by the Company prior to April 5, 2016 except to the extent the Company determines that redemption of any Notes is necessary to preserve the Company’s status as a REIT. In addition, the Company may redeem all
or part of the Notes at any time on or after April 5, 2016 and prior to the Maturity Date. In each case, Notes shall be redeemed for cash upon notice as set forth in Section 12.02 at a redemption price equal to 100% of the principal amount
of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date (the “Redemption Price”) (unless the Redemption Date falls after a Regular Record Date but on or prior to the
immediately succeeding Interest Payment Date, in which case interest accrued to the Interest Payment Date will be paid to Holders of record of such Notes on such Regular Record Date, and the Redemption Price will be equal to 100% of the principal
amount of the Notes to be redeemed). 
 Section 12.03. Notice of Optional Redemption; Selection of Notes. 

(a) In case the Company exercises its Optional Redemption right to redeem all or, as the case may be, any part of the Notes pursuant to
Section 12.01, it shall fix a date for redemption (each, a “Redemption Date”), and it or, at its written request received by the Trustee not less than 60 calendar days prior to the Redemption Date (or such shorter period of
time as may be acceptable to the Trustee), the Trustee, in the name of and at the expense of the Company, shall mail or cause to be mailed a notice of such Optional Redemption (a “Redemption Notice”) not less than 45 nor more than
60 calendar 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 Debt Security Register; provided, however, that if the Company shall give such
notice, it shall also give written notice of the Redemption Date to the Trustee. 
 (b) The Redemption Notice, if mailed in the
manner herein provided, shall be conclusively presumed to have been duly given, whether or not the Holder of any Note receives such notice. In any case, failure to give such Redemption Notice by mail or any defect in the Redemption Notice to the
Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. 
 (c) Each Redemption Notice shall specify: 
 (i) the Redemption Date
(which must be a Business Day); 
 (ii) the Redemption Price; 

(iii) that on the Redemption Date, the Redemption Price will become due and payable upon each such Note, and that interest
thereon, if any, shall cease to accrue on and after said date; 
 (iv) the place or places where such Notes are
to be surrendered for payment of the Redemption Price; 

  
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 (v) that Holders of the Notes may surrender their Notes for conversion at
any time prior to the close of business on the Business Day immediately preceding the Redemption Date; 
 (vi)
the procedures a converting Holder of the Notes must follow to convert its Notes and the Settlement Method and Specified Cash Amount, if applicable; 
 (vii) the Conversion Rate and, if applicable, the number of Additional Shares added to the Conversion Rate in accordance with Section 10.03; 

(viii) the CUSIP, ISIN or other similar numbers, if any, assigned to such Notes; and 

(ix) in case any Note is to be redeemed in part only, the portion of the principal amount thereof to be redeemed and on
and after the Redemption Date, upon surrender of such Note, a new Note in principal amount equal to the unredeemed portion thereof shall be issued. 
 A Redemption Notice shall be irrevocable. 
 (d) If fewer than all of the
Outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of a Global Note or the Physical Notes 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 considers to be fair and appropriate in accordance with the procedures of the Depositary. If any Note selected for partial redemption is submitted for conversion in part after such selection, the portion of the Note submitted for
conversion shall be deemed (so far as may be possible) to be the portion selected for redemption. 
 Section 12.04. Payment
of Notes Called for Redemption. 
 (a) If any Redemption Notice has been given in respect of the Notes in accordance with
Section 12.03, the Notes shall become due and payable on the Redemption Date at the place or places stated in the Redemption Notice and at the applicable Redemption Price. On presentation and surrender of the Notes at the place or places stated
in the Redemption Notice, the Notes shall be paid and redeemed by the Company at the applicable Redemption Price. 
 (b) Prior
to the open of business on the Redemption Date, the Company shall deposit with the Paying Agent or, if the Company or a Subsidiary of the Company is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 4.04 of
the Base Indenture an amount of cash (in immediately available funds if deposited on the Redemption Date), sufficient to pay the Redemption Price of all of the Notes to be redeemed on such Redemption Date. Subject to receipt of funds by the Paying
Agent, payment for the Notes to be redeemed shall be made promptly after the later of: 
 (i) the Redemption Date
for such Notes; and 

  
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 (ii) the time of presentation of such Note to the Trustee (or other Paying
Agent appointed by the Company) by the Holder thereof in the manner required by this Section 12.04. 
 The Paying Agent shall, promptly
after such payment and upon written demand by the Company, return to the Company any funds in excess of the Redemption Price. 

Section 12.05. Restrictions on Redemption. The Company may not redeem any Notes on any date if the principal amount of the Notes
has been accelerated in accordance with the terms of the Indenture, and such acceleration has not been rescinded, on or prior to the Redemption Date (except in the case of an acceleration resulting from a Default by the Company in the payment of the
Redemption Price with respect to such Notes). The Paying Agent will promptly return to the respective Holders of the Notes thereof any Physical Notes held by it during the acceleration of the Notes (except in the case of an acceleration resulting
from a Default by the Company in the payment of the Redemption Price with respect to such Notes), or any instructions for book-entry transfer of the Notes in compliance with the procedures of the Depositary shall be deemed to have been canceled,
and, upon such return or cancellation, as the case may be, the Redemption Notice with respect thereto shall be deemed to have been withdrawn. 
 ARTICLE 13 
 MISCELLANEOUS PROVISIONS 

Section 13.01. Governing Law. THE INDENTURE AND EACH NOTE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THE
INDENTURE AND EACH NOTE, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF). 

Section 13.02. No Security Interest Created. Nothing in the 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. 
 Section 13.03. Benefits of Indenture. Nothing in the Indenture or in the Notes, expressed or implied, shall give to any Person, other than the parties hereto, any Paying Agent, any Conversion
Agent, any authenticating agent, any Registrar and their successors hereunder or the Holders of the Notes, any benefit or any legal or equitable right, remedy or claim under the Indenture. 

Section 13.04. Effect of Headings. The article and section headings herein and in the Table of Contents are for convenience only
and shall not affect the construction hereof. 
 Section 13.05. Supplemental Indenture May Be Executed In Counterparts.
This Supplemental 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. The

  
 68 

 
exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to
the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 

Section 13.06. Severability. In case any provision in the Indenture or the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 13.07. Elections Under Base Indenture; Ratification of Base Indenture. Except as amended hereby with respect to the Notes,
the Base Indenture, as amended and supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein
provided. For the avoidance of doubt, each of the Company and each Holder of the Notes, by its acceptance of such Notes, acknowledges and agrees that all of the rights, privileges, protections, immunities and benefits afforded to the Trustee under
the Base Indenture are deemed to be incorporated herein, and shall be enforceable by the Trustee, whether acting as Trustee, Paying Agent, Security Registrar or Conversion Agent hereunder, as if set forth herein in full. 

Section 13.08. Waiver Of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

Section 13.09. Force Majeure. In no event shall the Trustee be responsible or liable for any failure or delay in the performance
of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or
natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts that are consistent with
accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 
 Section
13.10. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money
laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Supplemental Indenture agree that they will
provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act. 
 Section 13.11. Calculations. Except as otherwise provided herein, the Company shall be responsible for making all calculations called for under the Notes. These calculations include, but are not
limited to, determinations of the Last Reported Sale Prices of the Common Shares, 

  
 69 

 
accrued interest payable on the Notes and the Conversion Rate of the Notes. The Company shall make all these calculations in good faith and, absent manifest error, the Company’s calculations
shall be final and binding on Holders of the Notes. The Company shall provide a schedule of its calculations to each of the Trustee and the Conversion Agent, and each of the Trustee and Conversion Agent is entitled to rely conclusively upon the
accuracy of the Company’s calculations without independent verification. The Trustee will forward the Company’s calculations to any Holder of Notes upon the written request of such Holder at the sole cost and expense of the Company. None
of the Trustee, Conversion Agent or Paying Agent shall be responsible or liable for the calculations of the Company. 

  
 70 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the date first written above. 
  

			
	RAIT FINANCIAL TRUST
		
	By:	 	/s/ Jack E. Salmon
		 	Name:  Jack E. Salmon
		 	Title:    Chief Financial Officer
	
	 WELLS FARGO BANK, NATIONAL
     ASSOCIATION, as Trustee

		
	By:	 	/s/ Martin Reed
		 	Name: Martin Reed
		 	Title: Vice President

  
 [Signature
Page to Supplemental Indenture] 

 EXHIBIT A 
 [FORM OF FACE OF NOTE] 
 [INCLUDE FOLLOWING LEGEND IF A GLOBAL NOTE] 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO HEREIN. 

  
 A-1

 RAIT FINANCIAL TRUST 
 7.00% Convertible Senior Note due 2031 
  

			
	No. [                    ]	  	Initially $[                    ]

CUSIP No. 749227 AA2 

RAIT Financial Trust, a real estate investment trust duly organized and validly existing under the laws of the State of Maryland (the
“Company,” which term includes any successor corporation or other entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to CEDE & CO., or registered assigns, the principal
sum as set forth in the “Schedule of Exchanges of Notes” attached hereto, which amount, taken together with the principal amounts of all other Outstanding Notes, shall not, unless permitted by the Indenture, exceed $115,000,000 in
aggregate at any time, in accordance with the rules and procedures of the Depositary, on April 1, 2031, and interest thereon as set forth below. 
 This Note shall bear interest at the rate of 7.00% per year from March 21, 2011, or from the most recent date to which interest had been paid or provided for to, but excluding, the next
scheduled Interest Payment Date until April 1, 2031. Interest is payable semi-annually in arrears on each April 1 and October 1, commencing on October 1, 2011, to Holders of record of the Notes at the close of business on the
preceding March 15 and September 15 (whether or not such day is a Business Day), respectively. Special Interest will be payable as set forth in Section 5.02 of the within-mentioned Supplemental Indenture, and any reference to interest
on, or in respect of, any Note therein shall be deemed to include Special Interest if, in such context, Special Interest is, was or would be payable pursuant to any of such Section 5.02 and any express mention of the payment of Special Interest
in any provision therein shall not be construed as excluding Special Interest in those provisions thereof where such express mention is not made. 
 The Company shall pay the principal of and interest on this Note, so long as such Note is a Global Note, in immediately available funds to the Depositary or its nominee, as the case may be, as the
registered Holder of such Note. As provided in and subject to the provisions of the Indenture, the Company shall pay the principal of any Notes (other than Notes that are Global Notes) at the office or agency designated by the Company for that
purpose. The Company has initially designated the Trustee as its Paying Agent and Registrar in respect of the Notes and its agency in New York, New York as a place where Notes may be presented for payment or for registration of transfer. 

Reference is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation, provisions
giving the Holder of this Note the right to convert this Note into cash, Common Shares or a combination of cash and Common Shares, as applicable, on the terms and subject to the limitations set forth in the Indenture. Such further provisions shall
for all purposes have the same effect as though fully set forth at this place. 
 This Note, and any claim, controversy or
dispute arising under or related to this Note, shall be construed in accordance with and governed by the laws of the State of New York (without regard to the conflicts of laws provisions thereof). 

  
 A-2

 In the case of any conflict between this Note and the Indenture, the provisions of the
Indenture shall control and govern. 
 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. 
 [Remainder of page intentionally left blank] 

  
 A-3

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

 

									
	RAIT FINANCIAL TRUST
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

  
 A-4

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
 As Trustee

		
	By:	 	 
		 	Authorized Signatory
		
	Dated:	 	 

  
 A-5

 [FORM OF REVERSE OF NOTE] 

RAIT FINANCIAL TRUST 
 7.00% Convertible Senior Note due 2031 
 This Note is one of a duly authorized
issue of Debt Securities of the Company, designated as its 7.00% Convertible Senior Notes due 2031 (the “Notes”), limited to the aggregate principal amount of $115,000,000 all issued or to be issued under and pursuant to an
Indenture dated as of March 21, 2011 (the “Base Indenture”), as amended and supplemented by the First Supplemental Indenture dated as of March 21, 2011 (herein called the “Supplemental Indenture”; the Base
Indenture, as amended and supplemented by the Supplemental Indenture, and as it may be further amended or supplemented from time to time, the “Indenture”), by and between the Company and Wells Fargo Bank, National Association (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. Additional Notes may be issued in an unlimited aggregate principal amount, subject to certain conditions specified in the Indenture. 
 In case an Event of Default, as defined in the Indenture, shall have occurred and be continuing, the principal of, and interest on, all Notes may be declared, by either the Trustee or Holders of at least
25% in aggregate principal amount of Notes then Outstanding, and upon said declaration shall become, due and payable, in the manner, with the effect and subject to the conditions and certain exceptions set forth in the Indenture. 

Subject to the terms and conditions of the Indenture, the Company will make all payments and deliveries in respect of the Redemption
Price, the Repurchase Price, the Fundamental Change Repurchase Price and the principal amount on the Maturity Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent to collect such payments in respect of the Note. The
Company shall pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. 
 The Indenture contains provisions permitting the Company and the Trustee in certain circumstances, without the consent of the Holders of the Notes, and in certain other circumstances, with the consent of
the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding, evidenced as in the Indenture provided, to execute supplemental indentures modifying the terms of the Indenture and the Notes as described
therein. It is also provided in the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate principal amount of the Notes at the time Outstanding may on behalf of the Holders of all of the Notes waive any past Default
or Event of Default under the Indenture and its consequences. 
 No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal (including the Redemption Price, the Repurchase Price and the Fundamental Change Repurchase Price, if applicable)
of and accrued and unpaid interest (including Special 

  
 A-6

 
Interest, if any) on this Note at the place, at the respective times, at the rate and in the lawful money herein prescribed. 

The Notes are issuable in registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. 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, Notes may be exchanged for a like aggregate principal amount of Notes of other authorized denominations,
without payment of any service charge but, if required by the Company or Trustee, with payment of a sum sufficient to cover any transfer or similar tax that may be imposed in connection therewith as a result of the name of the Holder of the new
Notes issued upon such exchange of Notes being different from the name of the Holder of the old Notes surrendered for such exchange. 
 The Notes shall be redeemable at the Company’s option in accordance with the terms and conditions specified in the Indenture. 
 The provisions in Article III, Article VI, Article IX, Article X, Article XIV, Section 2.12(a), Section 2.15(c)(ii), Section 4.06(b), Section 11.02, Section 11.03, the second
sentence of Section 4.01 and the fourth paragraph of Section 2.07(b) of the Base Indenture shall not apply to the Notes, and Article 3, Article 5, Article 7, Article 8, Article 9, Article 12, Section 2.04(b), Section 2.05(b),
Section 2.05(e) and Section 2.07 of the Supplemental Indenture supersede the entirety thereof as specified in the Indenture. 
 The Holder of the Notes has the right, at such Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes or any portion thereof (in principal amounts of $1,000 or
integral multiples thereof) on each of April 1, 2016, April 1, 2021 and April 1, 2026 at a price equal to the Repurchase Price. Upon the occurrence of a Fundamental Change, the Holder has the right, at such Holder’s option,
to require the Company to repurchase for cash all of such Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change Repurchase Date at a price equal to the Fundamental Change
Repurchase Price. 
 Subject to the provisions of the Indenture, the Holder hereof has the right, at its option, during the
period beginning on, and including, March 21, 2011 and ending at the close of business on the Business Day immediately preceding the Maturity Date, to convert any Notes or portion thereof that is $1,000 or an integral multiple thereof, into
cash, Common Shares or a combination of cash and Common Shares, as applicable, at the Conversion Rate specified in the Indenture, as adjusted from time to time as provided in the Indenture. 

Terms used in this Note and defined in the Indenture are used herein as therein defined. 

  
 A-7

 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 = Uniform Gifts to Minors Act 
 CUST = Custodian 
 TEN ENT = as tenants by the entireties 
 JT TEN = joint tenants with right of survivorship and not
as tenants in common 
 Additional abbreviations may also be used though not in the above list. 

  
 A-8

 SCHEDULE A 
 SCHEDULE OF EXCHANGES OF NOTES 
 RAIT FINANCIAL TRUST 

7.00% Convertible Senior Notes due 2031 
 The initial principal amount of this Global Note is              DOLLARS
($            ). The following increases or decreases in this Global Note have been made: 
  

									
	 Date of Exchange
	  	Amount of
decrease in
Principal Amount
of this Global Note	  	Amount of
increase in
Principal Amount
of this Global Note	  	Principal Amount
of this Global Note
following such
decrease or
increase	  	Signature of
authorized
signatory of
Trustee or Note
Custodian

  
 A-9

 ATTACHMENT 1 
 [FORM OF NOTICE OF CONVERSION] 
  

	To:	RAIT Financial Trust 

  

	 	Wells Fargo Bank, National Association 

	 	45 Broadway, 14th Floor 

	 	New York, New York 10006 

	 	Attn:    Corporate Trust Services—Administrator for RAIT Financial Trust 

The undersigned registered owner of this Note hereby exercises the option to convert this Note, or the portion hereof (that is $1,000
principal amount or an integral multiple thereof) below designated, into cash, Common Shares or a combination of cash and Common Shares, as applicable, in accordance with the terms of the Indenture referred to in this Note, and directs that any cash
payable and any Common Shares issuable and deliverable upon such conversion, together with any cash for any fractional Common Share, and any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered Holder
of the Notes hereof unless a different name has been indicated below. If any Common Shares or any portion of this Note not converted are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer or
similar taxes in accordance with Section 10.02(e) of the Indenture. Any amount required to be paid to the undersigned on account of interest accompanies this Note. 

 

									
	Dated:	 	 	 		 	 
		 		 		 	
		 		 		 	 
		 		 		 	 Signature(s)

			
	 	 		 	
	 Signature Guarantee
	 		 	
			
	Signature(s) must be guaranteed by an eligible Guarantor Institution (banks, stock brokers, savings and loan associations and credit unions) with membership in an
approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15 if Common Shares are to be issued, or	 		 	

  
 A-10

									
	Notes are to be delivered, other than to and in the name of the registered holder.	 		 		 	
				
	Fill in for registration of shares if to be issued, and Notes if to be delivered, other than to and in the name of the registered holder:	 		 		 	
				
	 	 		 		 	
	(Name)	 		 		 	
				
	 	 		 		 	
	(Street Address)	 		 		 	
				
	 	 		 		 	
	(City, State and Zip Code)	 		 		 	
	Please print name and address	 		 		 	
			
		 		 	Principal amount to be converted (if less than all): $______,000
			
		 		 	NOTICE: The above signature(s) 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.
			
		 		 	 
		 		 	 Social Security or Other Taxpayer
 Identification Number

  
 A-11

 ATTACHMENT 2 
 [FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE] 
  

	To:	RAIT Financial Trust 

  

	 	Wells Fargo Bank, National Association 

	 	45 Broadway, 14th Floor 

	 	New York, New York 10006 

	 	Attn: Corporate Trust Services—Administrator for RAIT Financial Trust 

 The undersigned registered owner of this Note hereby acknowledges receipt of a notice from RAIT Financial Trust (the “Company”) as to the occurrence of a Fundamental Change with respect
to the Company and specifying the Fundamental Change Repurchase Date and requests and instructs the Company to pay to the registered holder hereof in accordance with the applicable provisions of the Indenture referred to in this Note (1) the
entire principal amount of this Note, or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated, and (2) if such Fundamental Change Repurchase Date does not fall during the period after a Regular
Record Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest, if any, thereon to, but excluding, such Fundamental Change Repurchase Date. 

In the case of Physical Notes, the certificate numbers of the Notes to be repurchased are as set forth below: 

 

									
	Dated:	 	 	 		 		 	
			
		 		 	 
		 		 	Signature(s)
			
		 		 	 
		 		 	 Social Security or Other Taxpayer
 Identification Number

			
		 		 	 Principal amount to be repaid (if less than all):
 $______,000

			
		 		 	NOTICE: The above signature(s) 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.

  
 A-12

 ATTACHMENT 3 
 [FORM OF REPURCHASE NOTICE] 
  

	To:	RAIT Financial Trust 

  

	 	Wells Fargo Bank, National Association 

	 	45 Broadway, 14th Floor 

	 	New York, New York 10006 

	 	Attn: Corporate Trust Services—Administrator for RAIT Financial Trust 

 The undersigned registered owner of this Note hereby acknowledges receipt of a notice from RAIT Financial Trust (the “Company”) regarding the right of Holders of the Notes to elect to
require the Company to repurchase the entire principal amount of this Note, or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated, in accordance with the applicable provisions of the Indenture
referred to in this Note, at the Repurchase Price to the registered Holder of the Notes hereof. 
 In the case of certificated
Notes, the certificate numbers of the Notes to be purchased are as set forth below: 
  

									
	Dated:	 	 	 		 		 	
			
		 		 	 
		 		 	Signature(s)
			
		 		 	 
		 		 	 Social Security or Other Taxpayer
 Identification Number

			
		 		 	 Principal amount to be repaid (if less than all):
 $______,000

			
		 		 	NOTICE: The above signature(s) 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.

  
 A-13

 ATTACHMENT 4 
 [FORM OF ASSIGNMENT AND TRANSFER] 
 Wells Fargo Bank, National Association, 

as Trustee and Registrar – DAPS Reorg 
 MAC
N9303-121 
 608 2nd Avenue South 

Minneapolis, MN 55479 
 Telephone No.:
(877) 872-4605 
 Fax No.: (866) 969-1290 
 Email: DAPSReorg@wellsfargo.com 
 For value received
             hereby sell(s), assign(s) and transfer(s) unto              (Please insert Social Security or Taxpayer
Identification Number of assignee) the within Note, and hereby irrevocably constitutes and appoints              attorney to transfer the said Note on the books of the Company, with
full power of substitution in the premises. 
  

									
		 		 	 
			
		 		 	 
		 		 	Signature(s)
			
		 		 	Signature(s) must be guaranteed by an institution which is a member of one of the following recognized signature Guarantee Programs:
			
		 		 	(i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion
Program (SEMP) or (iv) another guarantee program acceptable to the Trustee.
			
		 		 	 
			
		 		 	 
		 		 	Signature Guarantee

  
 A-14Shareholders' Agreement

 Exhibit 4.1 
 Shareholders’ Agreement – Sequans E round 

SHAREHOLDERS’ AGREEMENT 
 Between 
 Mr. Georges Karam 

Mr. Bertrand Debray 
 And 
 Mr. Fabien Buda 

Mr. Jérôme Bertorelle 
 Mr. Laurent Sibony 
 Mr. Emmanuel Lemois 

Mr. Ambroise Popper 
 And 
 FCPR T-SOURCE 

FCPI CAAM 6 Innovation 
 CAP DECISIF SAS 
 ADD ONE L.P. 

ADD ONE GmbH & Co. KG 
 VISION CAPITAL III LP 
 FCPI SOGE INNOVATION 7 

FCPI SOGE INNOVATION EVOLUTION 3 
 FCPI GEN-I 
 FCPI GEN-I 2 

KENNET II L.P. 
 KING STREET PARTNERS L.P. 
 And 

MOTOROLA Inc. 
 ALCATEL-LUCENT PARTICIPATIONS 
 And 

GATEWAY NET TRADING PTE. LIMITED 
 SWISSCOM AG 
 FCPR FONDS DE CO-INVESTISSEMENT DIRECT 

HANTECH INTERNATIONAL VENTURE CAPITAL CORPORATION 
 In the presence of 
 SEQUANS COMMUNICATIONS 

Dated January 31, 2008 

 Shareholders’ Agreement – Sequans E round 

 

 SHAREHOLDERS’ AGREEMENT 

BETWEEN: 
  

	•	 	 Monsieur Georges Karam, residing 8, impasse Wattignies, 75012 Paris, France; 

 

	•	 	 Monsieur Betrand Debray, residing 7, passage du Gros Murger, 78600 Maisons Laffitte, France, represented by Mr. Georges Karam, pursuant to
a power of attorney attached as Exhibit 0 hereto; 

 (each a “Managing Founder”
and collectively the “Managing Founders”), 
 OF THE FIRST
PART, 
 AND: 
  

	•	 	 Mr. Fabien Buda, residing 28, Rue Guersant, 75017 Paris, France, represented by Mr. Georges Karam, pursuant to a power of attorney
attached as Exhibit 0 hereto; 

  

	•	 	 Mr. Jérôme Bertorelle, residing 4, rue Bailleul, 75001 Paris, France, represented by Mr. Georges Karam, pursuant to a
power of attorney attached as Exhibit 0 hereto; 

  

	•	 	 Mr. Laurent Sibony, residing 8, rue de la DCA, 78700 Conflans-Sainte-Honorine, represented by Mr. Georges Karam, pursuant to a power
of attorney attached as Exhibit 0 hereto; 

  

	•	 	 Mr. Emmanuel Lemois, residing 69, rue Fondary, 75015 Paris, France, represented by Mr. Georges Karam, pursuant to a power of attorney
attached as Exhibit 0 hereto; 

  

	•	 	 Mr. Ambroise Popper, residing 1956 Menalto Avenue, Menlo Park, CA 94025, USA, represented by Mr. Georges Karam, pursuant to a power of
attorney attached as Exhibit 0 hereto; 

 (collectively, the “Non Managing
Founders”, and together with the Managing Founders, the 
 “Founders”), 

OF THE SECOND PART, 

AND: 
  

	•	 	 FCPR T-SOURCE, a French venture capital mutual fund (fonds commun de placement à risques), represented by its manager
(société de gestion), I-SOURCE GESTION, société anonyme with a registered share capital of EUR 675,144, the registered office of which is located 1-3, avenue Jean Jaurès, 78000 Versailles, France,
registered with the registry of commerce and companies of Versailles under number 420 748 097, itself represented by Mr. François-René Letourneur, pursuant to a power of attorney attached as Exhibit 0 hereto;

  

	•	 	 FCPI CAAM INNOVATION 6, a French Fonds commun de placement dans I’innovation represented by its manager (société de gestion),
Crédit Agricole Asset Management Capital Investors, Société Anonyme à Directoire et Conseil de Surveillance with a share capital of EUR 4.965.917, the registered office of which is 128-130, boulevard Raspail, 75006 Paris,
registered with the Registry of Commerce and Companies of Paris under number B 422 333 575, itself represented by its delegated, I-SOURCE GESTION, the registered office of which is 1-3, avenue Jean Jaurès, 78000 Versailles, registered with
the Registry of Commerce and Companies of Versailles under number 420 748 097, represented by Mr. François-René Letourneur, duly authorized, 

 (FCPR T-SOURCE and FCPI CAAM INNOVATION are hereafter collectively referred to as “I-SOURCE”) 

 Shareholders’ Agreement – Sequans E round 

 

	•	 	 CAP DECISIF, a French société par actions simplifiée, with a registered share capital of EUR 16,785,200, the
registered office of which is located 21 bis rue Lord Byron - 75008 Paris, France, registered with the registry of commerce and companies of Paris under number 440 405 405, itself represented by Mr. Olivier Dubuisson, pursuant to a power of
attorney attached as Exhibit 0 hereto (“Cap Décisif”); 

  

	•	 	 ADD ONE L.P., a Guernsey limited partnership established under the Limited Partnerships (Guernsey) Law 1995 and having its principal
place of business at 13-15 Victoria Road, St Peter Port, Guernsey, Channel Islands, United Kingdom, represented by its managing general partner ADD One General Partner L.P., represented by its managing general partner, ADD Management Limited, itself
represented by Mr. Jean-Philippe Sala-Martin, partner of Coblence & Associés, pursuant to a power of attorney attached as Exhibit 0 hereto; 

 

	•	 	 ADD ONE GmbH & Co. KG, registered as a limited partnership with the commercial register at local court Munich, Germany and having its
principal place of business at Max Joseph Strasse 7, 80333 Munich, Germany, c/o VCM Venture Capital Management und Beteiligungsgesellshaft mbH, represented by its managing limited partner is ADD One General Partner L.P., represented by its managing
general partner, ADD Management Limited (together with ADD One L.P. (“ADD One”)), itself represented by Mr. Jean-Philippe Sala-Martin, partner of Coblence & Associés, pursuant to a power of attorney attached as
Exhibit 0 hereto; 

  

	•	 	 VISION CAPITAL III LP, a limited partnership established under the Limited Partnerships (Jersey) Act 1994, represented by its managing general
partner Vision III Partners Ltd., a limited partnership established under Companies (Jersey) Act 1991, having its registered office at Kleinwort Benson House, Wests Centre, St Hélier, Jersey JE4 8PQ, Channel Islands, itself represented by
Mr. Jean-Philippe Sala-Martin, partner of Coblence & Associés, pursuant to a power of attorney attached as Exhibit 0 hereto (“Vision Capital”); 

 

	•	 	 FCPI SOGE INNOVATION 7, a French innovation mutual fund (fonds commun de placement dans I’innovation), represented by its manager
(société de gestion), Société Générale Asset Management Alternative Investments, a French société anonyme with a share capital of EUR 68,672,885, the registered office of which is
located at 170, place Henri Regnault, 92400 Courbevoie, France, registered with the registry of commerce and companies of Nanterre under number 410 704 571, represented by Mr. Xavier Lorphelin pursuant to a power of attorney attached as
Exhibit 0 hereto (“SGAM Al”); 

  

	•	 	 FCPI SOGE INNOVATION EVOLUTION 3, a French innovation mutual fund (fonds commun de placement dans I’innovation), represented by its manager
(société de gestion), Société Générale Asset Management Alternative Investments, a French société anonyme with a share capital of EUR 68,672,885, the registered office of which is located at
170, place Henri Regnault, 92400 Courbevoie, France, registered with the registry of commerce and companies of Nanterre under number 410 704 571, represented by Mr. Xavier Lorphelin, pursuant to a power of attorney attached as Exhibit
0 hereto; 

  

	•	 	 FCPI GEN-I, a French innovation mutual fund (fonds commun de placement dans I’innovation), represented by its manager
(société de gestion), Société Générale Asset Management Alternative Investments, a French société anonyme with a share capital of EUR 68,672,885, the registered office of which is located at
170, place Henri Regnault, 92400 Courbevoie, France, registered with the registry of commerce and companies of Nanterre under number 410 704 571, represented by Mr. Xavier Lorphelin, pursuant to a power of attorney attached as Exhibit
0 hereto; 

  

	•	 	 FCPI GEN-I 2, a French innovation mutual fund (fonds commun de placement dans I’innovation), represented by its manager
(société de gestion), Société Générale Asset Management Alternative Investments, a French société anonyme with a share capital of EUR 68,672,885, the registered office of which is located at
170, place Henri Regnault, 92400 

  
 3 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
Courbevoie, France, registered with the registry of commerce and companies of Nanterre under number 410 704 571, represented by Mr. Xavier Lorphelin, pursuant to a power of attorney attached
as Exhibit 0 hereto; 

  

	•	 	 KENNET II L.P., a limited partnership established under the Limited Partnerships (Guernsey) Law 1995, whose principal place of business is at
Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, acting by its manager, Kennet Capital Management (Jersey) Limited (“the Kennet II Manager”), having its registered office at 47 Esplanade, St Helier, Jersey JE1 0BD
(“Kennet II”), represented by Mr. Jean-Philippe Sala-Martin, partner of Coblence & Associés, pursuant to a power of attorney attached as Exhibit 0 hereto, 

 

	•	 	 KING STREET PARTNERS L.P., a limited partnership established under the Limited Partnerships (Guernsey) Law 1995, whose principal place of
business is at Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, acting by its manager, the Kennet II Manager, having its registered office at 47 Esplanade, St Helier, Jersey JE1 0BD (“King Street”),
represented by Mr. Jean-Philippe Sala-Martin, partner of Coblence & Associés, pursuant to a power of attorney attached as Exhibit 0 hereto, 

(Kennet II and King Street are hereafter collectively referred to as “Kennet”, acting jointly but not severally (conjointement mais
non solidairement), 
 (each an “Existing Financial Investor” and collectively the “Existing
Financial Investors”), 
 OF THE THIRD PART, 
 AND: 
  

	•	 	 MOTOROLA Inc., a Delaware corporation, whose principal place of business is 1303 E. Algonquin Road, Schaumburg, Illinois USA 60196
(“Motorola Inc.”), represented by Mr. Bruce Tuch, pursuant to a power of attorney attached as Exhibit 0 hereto 

  

	•	 	 ALCATEL-LUCENT PARTICIPATIONS, a French société anonyme with a registered share capital of EUR 4.913.119.470, the
registered office of which is located at 54, rue La Boétie -75008 Paris, France, registered with the registry of commerce and companies of Paris, under number 333 150 043 (“ALCATEL-LUCENT”), represented by
Mr. Jean-Philippe Sala-Martin, partner of Coblence & Associés, pursuant to a power of attorney attached as Exhibit 0 hereto 

 (each a “Existing Corporate Investor” and collectively the “Existing Corporate Investors”), 
 OF THE FOURTH PART, 
 AND: 

 

	•	 	 GATEWAY NET TRADING PTE. LIMITED, a corporation established under Singapore Law and a wholly owned subsidiary of RELIANCE COMMUNICATIONS
LIMITED, having its registered office at Singapore 189677 15, beach road, # 03- 07, Beach Centre, (“RELIANCE”) represented by Mr. Nicolas von Bülow pursuant to a power of attorney attached as Exhibit 0 hereto

  

	•	 	 SWISSCOM AG, a company established under Swiss Law, registered with the registry of commerce of Bern under number CH-035.8.018.212-7, having its
registered office in Ittingen, at Alte Tiefenaustr 6, Worblaufen, 3050 Bern - Switzerland (“SWISSCOM”) represented by Mr Dominique Mégret and Mr. Daniel Ritz, themselves represented by Mr. Frank Lipworth pursuant to
a power of attorney attached as Exhibit 0 hereto 

 (RELIANCE and SWISSCOM are hereafter referred to each as a
“New Corporate Investor” and collectively the “New Corporate Investors”) 

  
 4 

 Shareholders’ Agreement – Sequans E round 

 

	•	 	 FONDS DE CO-INVESTISSEMENT DIRECT (FCID), a French venture capital mutual fund (fonds commun de placement à risques),
(“FCID”) represented by its manager (société de gestion), CDC Entreprises, a French société par actions simplifiée with a registered share capital of EUR 2 920 000, the registered
office of which is located at Tour Maine Montparnasse, 33 avenue du Maine, BP 174 75755 Paris Cedex 15, France, registered with the registry of commerce and companies of Paris, under number 433 975 224 represented by Mr. Christian Deblaye, it
self represented by Mrs. Nadia Sarri, pursuant to a power of attorney attached as Exhibit 0 hereto, 

  

	•	 	 HANTECH INTERNATIONAL VENTURE CAPITAL CORPORATION, a corporation established under the International Business Companies (British Virgin Islands)
Act 1996, having its registered office at Citco Building, P.O. box 662, Road Town, Tortola, British Virgin Islands, (“HANTECH”) acting by its managing general partner, H&Q Taiwan Co. Ltd., a corporation established under
Companies (Taiwan) Act 1986, having its registered office at 333 Keelung Road Section 1, Suite 3201, Taipei, 110, Taiwan, represented by Mr Rick Chiang in its capacity of Managing Director, itself represented by Mr. Nicolas von Bülow,
pursuant to a power of attorney attached as Exhibit 0 hereto, 

 (FCID and HANTECH are hereafter referred
to each as a “New Financial Investor” and collectively as the “New Financial Investors”) 
 The
New Corporate Investors and the New Financial Investors are hereinafter referred to each as a 
 “New E Investor”
and collectively as the “New E Investors”), 
 OF THE FIFTH PART, 

The Existing Financial Investors, the Existing Corporate Investors (the “Existing Investors”), and the New E Investors are collectively
hereafter referred to as the “Investors”, acting severally but not jointly (conjointement et non solidairement) and individually as an “Investor” acting severally but not jointly (conjointement et non
solidairement) 
 AND: 
 SEQUANS COMMUNICATIONS, a French société anonyme with a registered share capital of EUR 431,246.44, the registered office of which is located at 19, Parvis de La Défense
– 92800 Puteaux, France, registered with the registry of commerce and companies of Nanterre, under number 450 249 677, represented by Mr. Georges Karam, acting in his capacity as chairman and managing director (président -
directeur général), which is entering into this agreement for the purposes of accepting the rights granted to it and acknowledging the obligations imposed on it pursuant to this agreement, 

(the “Company”) 
 OF THE SIXTH PART 
 (the Founders, the Investors and the Company are hereafter collectively
referred to as the “Parties” and individually as a “Party”) 
 WHEREAS:

  

	(A)	The Company is engaged in the business of researching, developing and commercializing silicon and software solutions in the areas of broadband wireless access,
specifically compliant with WiMAX standard or other similar broadband wireless standards. 

  

	(B)	 On January 31, 2008, the extraordinary general meeting of the shareholders of the Company decided to issue 2,727,273 Series E Preferred Shares
(actions de preference de catégorie E) at a price of EUR 2.024 par Series E Preferred Share. To each Series E Preferred Share is 

  
 5 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
attached one ratchet warrant (bon de souscription d’actions de preference de catégorie E) (the “E Ratchet Warrant” and together
with the Series E Preferred Share, the “ABSA E”), (hereafter the “Capital Increase”). 

  

	(C)	The aforesaid extraordinary general meeting also decided to issue 1,768,774 convertible bonds of the Company (the “E Convertible Bonds”), at a price
and nominal value of EUR 2.024 par E Convertible Bond. Pursuant to specific terms and conditions defined in the Investment Agreement, each E Convertible Bond may be converted either in a Series E Preferred Share or an ABSA E, subject to the date of
conversion. 

  

	(D)	It is on the basis of (i) the identity and experience of the Managing Founders, (ii) the Company’s growth prospects and plans as described in the
Company’s business plan attached as Exhibit C to the E Round Investment Agreement (the “Business Plan”), that the Investors have accepted to invest an aggregate amount of EUR 9,099,999.13 in the Company (the
“Investment”), pursuant to an investment agreement executed by the Parties on January 16, 2008 (the “Investment Agreement”). 

 

	(E)	The share capital of the Company prior to the Capital Increase consists of (i) series A preferred shares (actions de préférence, dites “de
catégorie A”) (the “Series A Preferred Shares”), (ii) series B preferred shares (actions de préférence, dites “de catégorie B”) (the “Series B Preferred
Shares”), (iii) series C shares (actions de preference, dites “de categorie C”) (the “Series C Preferred Shares”), and (iv) series D preferred shares (actions de préférence, dites
“de catégorie D”) (the “Series D Preferred Shares”). It is specified that a ratchet warrant is attached to each issued Series C and D Preferred Share (the “C or D Ratchet Warrants”).

 The share capital of the Company, immediately after the completion of the Capital Increase, will be held as set
forth in the capitalization table attached as Exhibit B hereto. 
 NOW IT IS HEREBY AGREED AS FOLLOWS: 

Article 1 – Definitions 
 For
the purposes of this Agreement, the terms listed hereafter shall have the following meaning: 
  

			
	Agreement	  	this shareholders’ agreement, as amended or supplemented from time to time by way of amendment signed by each of the Parties.
		
	 Attorney
	  	has the meaning set out in Article 16.1.
		
	 Board of Directors
	  	means the board of directors (conseil d’administration) of the Company.
		
	 By-laws
	  	means the by-laws (statuts) of the Company as at January 31, 2008 as amended from time to time, subject to such amendments having been made in compliance with applicable laws
and the rules set forth in this Agreement.
		
	 Contractual Undertaking
	  	has the meaning ascribed to it in Article 16.2 hereof.
		
	 Corporate Observer
	  	means the observer (“censeur”) appointed by a Corporate Investor and whose rights and obligations are defined by the By-laws and under Article 4.2 herein and
Exhibit 4.2 (vi) appended hereto.
		
	 C Ratchet Warrants
	  	means the ratchet warrants attached to the Series C Preferred Shares issued by the Company pursuant to the extraordinary general meeting of shareholders dated February 14,
2005.

  
 6 

 Shareholders’ Agreement – Sequans E round 

 

			
	D Round Investment Agreements	  	means the investment agreements respectively executed on 22 June 2006, 23 October 2006 and 1st December 2006.
		
	 D Ratchet Warrants
	  	means the ratchet warrants attached to the Series D Preferred Shares issued by the Company pursuant to (i) the extraordinary general meeting of shareholders dated July 17, 2006,
(ii) the extraordinary general meeting of shareholders dated November 17, 2006 and (iii) the Board of Directors dated December 1, 2006 by delegation of power of the aforesaid extraordinary general meeting of shareholders.
		
	 E Convertible Bonds
	  	has the meaning ascribed to under paragraph C of the preamble hereof.
		
	 E Ratchet Warrants
	  	means the ratchet warrants attached to (i) the Series E Preferred Shares issued by the Company pursuant to the extraordinary general meeting of shareholders dated January 31, 2008,
and to be issued as a result of the conversion of the E Convertible Bonds issued by such extraordinary meeting, as well as (ii) those likely to be issued as a result of the Additional Investment referred to in Article 7 of the Investment
Agreement.
		
	 Escrow
	  	means the Caisse des Dépôts et Consignations in Paris or any bank of national or international standing that would agree to receive the relevant funds in escrow in
accordance with the terms hereof.
		
	 Expected Proceeds
	  	means at the time of an IPO or of a Liquidation Event the expected proceeds per Series E Preferred Share (including liquidation preference if any) should such IPO or Liquidation
Event take place.
		
	 Free Transfer
	  	has the meaning ascribed to it in Article 5.3 hereof.
		
	Fully Diluted Capital	  	means (i) all Shares outstanding and (ii) all Shares issuable at a premium upon exercise, conversion, exchange or repayment, as the case may be, of the other Securities
outstanding which may be exercised, converted, exchanged or repaid as at the relevant date. All C, D and E Ratchet Warrants shall be excluded for the purpose of this definition.
		
	 Industrial Investor
	  	means any person active or intending to become active in the same business as the Company or in any competing business (including, for the avoidance of doubt, the Corporate
Investors).
		
	 Investment Agreement
	  	means the Investment Agreement signed by the Parties on January 16, 2008.
		
	 IPO
	  	means the listing (cotation) of all or part of the Shares on an internationally recognized regulated market of the European Union or the Nasdaq National Market or New York Stock
Exchange in the United States of America.
		
	 Liquidation Event
	  	means (i) the merger, demerger or sale of the Company, resulting in a situation where one or more Third Parties acting in concert (“agissant de concert”) hold the
majority of the equity share capital or the voting rights in the shareholders’ meetings, (ii) the sale of substantially all or all of the assets of the Company, or the sale or

  
 7 

 Shareholders’ Agreement – Sequans E round 

 

			
		  	granting of an exclusive license on substantially all or all of the intellectual property rights owned by the Company, or (iii) the liquidation or the winding-up of the
Company.
		
	 Member
	  	means any member of the Board of Directors.
		
	 Ordinary Shares
	  	means all ordinary shares (actions ordinaires) of the Company which may be issued by the Company.
		
	 Party
	  	a signatory of this Agreement.
		
	 Preferred Shares
	  	means collectively the Series A Preferred Shares, Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares and the Series E Preferred Shares actually issued
or which will be issued by the Company.
		
	 Qualified IPO
	  	means any IPO with respect to which the subscription to the capital increase of the Company effected at the time of the offering results in net proceeds to the Company (after
deduction of underwriting discounts and commission) at least equal to EUR 25,000,000 and where the Expected Proceeds for the New E Investors would be above the Threshold Proceeds Level, it being specified that this condition will be deemed to have
been met if the contemplated mid range of the contemplated listing price of the Securities exceeds such Threshold Proceeds Level.
		
	Qualified Majority	  	means the approval of shareholders convened in a general meeting of the Company representing 75% of the Shares.
		
	 Securities
	  	(i) the Shares;
		
		  	(ii) the securities or rights, including (a) founders’ warrants (bons de souscription de parts de créateurs d’entreprise), (b) regular warrants (bons de
souscription d’actions autonomes) including E Ratchet Warrants and other C and D Ratchet Warrants, and (c) employee stock options (options de souscription d’actions) and (d) E Convertible Bonds, entitling their holders,
immediately or on a due date, to subscribe or otherwise acquire Shares;
		
		  	(iii) the subscription rights attached to the Shares as well as to the securities mentioned in (ii) above, in the event of an issue of Shares or other securities giving a right,
immediately or on a due date, to subscribe or otherwise acquire Shares; and
		
		  	(iv) any rights to receive free Shares or securities as well as to the securities mentioned in paragraph (ii) above, which any of the Parties hold or may hold, for any reason
whatsoever.
		
	 Series A Preferred Shares
	  	means the series A preferred shares (“actions de préférence de de catégorie A”) with the preference rights described in the By-laws actually issued or
which will be issued by the Company.
	Series B Preferred Shares	  	means the series B preferred shares (“actions de préférence de de catégorie B”) with the preference rights described in the By-laws actually issued
or which will be issued by the Company.
		
	 Series C Preferred Shares
	  	means the series C preferred shares (“actions de préférence de de catégorie C”) with the preference rights described in the By-laws actually issued or
which will be issued by the Company.

  
 8 

 Shareholders’ Agreement – Sequans E round 

 

			
	Series D Preferred Shares	  	means the series D preferred shares (“actions de préférence de de catégorie D”) with the preference rights described in the By-laws actually issued
or which will be issued by the Company.
		
	 Series E Preferred Shares
	  	means the series E preferred shares (“actions de préférence de catégorie E”) with the preference rights described in the By-laws actually issued or
which will be issued by the Company.
		
	 Shares
	  	the shares actually issued or which will have been issued by the Company in representation of its capital irrespective of their class or category.
		
	 Subsidiary
	  	any company controlled by the Company within the meaning of article L. 233-3 of the French commercial code.
		
	 Target Liquidity Date
	  	has the meaning ascribed to it in Article 11.1 hereof
		
	 Threshold Proceeds Level
	  	means for the New E Investors, proceeds per Series E Preferred Share equal to 1.8 times the subscription price of each of the New E Investors Series E Preferred Shares (as adjusted,
as the case may be, in case of exercise by New E Investors of their E Ratchet Warrants).
		
	 Third Party
	  	any individual, corporation or other legal entity other than a Party.
		
	 Transfer
	  	any transaction resulting in a transfer of ownership (propriété, nu-propriété ou usufruit) for any reason whatsoever (including but not limited to sales,
gratuities, partial contributions of assets, mergers, demergers, or any combination of these methods of transfer of ownership).

In this Agreement: 
  

	(a)	the titles given to Articles, Clauses and Exhibits are for ease of reference only and shall in no case impact on the interpretation of this Agreement;

  

	(b)	the introduction of the Parties, the preamble or recital and the Exhibits are an integral parts of this Agreement; and 

 

	(c)	unless a contrary indication appears, (i) references to Articles, Clauses and Exhibits shall be construed as references to Articles, Clauses of and Exhibits to
this Agreement, (ii) references to an agreement or other document or instrument shall be deemed to include also all modifications or amendments to that agreement, document or instrument, and (iii) when a time is mentioned, it refers to Paris time.

 Article 2 – Purpose of the Agreement 
 The purpose of the Agreement is to set out the rights and obligations of the Parties and the terms and conditions they have agreed to respect for the duration of this Agreement in pursuing their common
objectives through the Company, it being specified that unless otherwise specified herein, there is no solidarity of interest between the Parties 
 This Agreement is entered into on January 31, 2008 as an amendment to and restatement of the former Shareholders Agreement of July 17, 2006 entered into by and among the Founders and the
Existing Investors (and as amended by the Deeds of Adherences executed on November 17, 2006 and December 1st, 2006), which is superseded and replaced in all its provisions by this Agreement as of the date hereof. 

  
 9 

 Shareholders’ Agreement – Sequans E round 

 

 Article 3 – Representations and Warranties 

Each Party represents and warrants to the other Parties: 
  

	 	(i)	for the Parties who are legal entities and investment funds, that: 

  

	 	•	 	 it is legally incorporated or formed and in good standing under French law or the laws of the jurisdiction where it is established and that its legal
representative has full powers and authority to sign and implement the Agreement; 

  

	 	•	 	 the execution and implementation of the Agreement have been validly authorized by such Party’s competent bodies; 

 

	 	(ii)	for the Parties who are natural persons, that: 

  

	 	•	 	 he or she has the capacity to sign and implement the Agreement; 

 

	 	•	 	 the execution and implementation of the Agreement does not and will not result in a breach, termination or amendment of any term or condition of any
other contract or deed to which such Party is a party and that the Agreement is not contrary to any term of any such contracts or deeds; 

  

	 	•	 	 it is not currently a party to and will not enter into any separate agreement regarding the rights and obligations of the Parties set forth in this
Agreement, except for the Investment Agreement and for the Contractual Undertaking attached hereto in a draft form. 

  

	 	(iii)	Additionally, each of the Parties represents and warrants that, for the purposes of entering into the transactions contemplated by this Agreement it/he/she has entered
into such transactions entirely on the basis of its/his/her own assessment of the risks and effect thereof and, for the avoidance of doubt, each of the Founders confirms that he is owed no duty of care by the New E Investors.

 Article 4 – Administration of the Company 

 

	4.1.	As to the administration and management of the Company, the Parties irrevocably undertake to comply with the legal provisions applicable to the Company, the provisions
of this Agreement, as well as the by-laws (statuts) of the Company (the “By-laws”), as amended from time to time; it being expressly agreed that, in the event of a conflict between the By-laws and this Agreement, the By-Laws
shall prevail between the Parties. 

  

	4.2.	The Parties undertake to use their respective best efforts so that the Board of Directors be composed, at all times while the Agreement is in effect, in accordance with
the following principles: 

  

	 	(i)	the Board of Directors shall have a maximum of five (5) members, unless the Members unanimously decide otherwise; 

 

	 	(ii)	one (1) Member shall be appointed among the candidates (if any) proposed by the shareholders holding Series A Preferred Shares, it being specified that at the date
hereof such Member shall be Mr. Georges Karam (the “Founder Member”); 

  
 10 

 Shareholders’ Agreement – Sequans E round 

 

	 	(iii)	one (1) Member shall be appointed among the candidates (if any) proposed by Kennet, it being specified that at the date hereof such Member shall be Kennet Venture
Partners represented by Mr. Michael Elias (the “Kennet Member”); 

  

	 	(iv)	one (1) Member shall be appointed among the candidates (if any) proposed by Vision Capital, it being specified that at the date hereof such Member shall be Vision
Capital III L.P. represented by Mr. Dominique Pitteloud (the “Vision Member”); and 

  

	 	(v)	one (1) Member shall be appointed among the candidates (if any) proposed by ADD ONE, it being specified that at the date hereof such Member shall be ADD One
Management represented by Mr. David Ong (the “Add One Member”). 

  

	 	(vi)	one (1) Member shall be an independent member from the industry appointed among candidates unanimously approved by the Board of Directors, it being specified that
at the date hereof such Member shall be Mr. Zvi Slonimsky (the “Independent Member”); and 

The Kennet Member, Add One Member and Vision Member will be referred to collectively as the “Investor Members” and
individually as an “Investor Member”. 
 In case of a tie, the chairman (président) of the Board
shall have a casting vote, subject, in any case, to the majority rules provided for in Article 4.3. 
 The chairman of
the Board will be appointed by the majority of the Members among the Members. At the date hereof the chairman of the Board of Directors is Mr. Georges Karam, also acting as managing director (directeur general). 

The term of office of the Members will be a 2-year period renewable, it being specified that the term of office of the Members who were
already in office prior to the date hereof shall be modified in order to take into account such term of office. 
 Additionally,
at all times while the Agreement is in effect, each of the Investors who are not represented as Members of the Board of Directors shall have the right to appoint one observer (censeur) to the Board of Directors for a 2-year term, subject to
the following conditions: 
  

	 	•	 	 each Existing Corporate Investor shall have such right as long as it continues to hold (directly or via its respective affiliates, as defined in
Article 5.3 (g) herein) at least 75% of the Series D Preferred Shares subscribed on 17 November 2006 or
1st December 2006; consequently, each Existing
Corporate Investor shall irrevocably lose such right should its shareholding interest fall below the aforementioned 75% threshold; 

  

	 	•	 	 RELIANCE shall have such personal right as long it continues to hold (directly or via its affiliates, as defined in Article 5.3 (g) herein) at
least 75% of the Series E Preferred Shares subscribed on January 31, 2008 and, in case of conversion of its E Convertible Bonds, of the Series E Preferred Shares which shall be issued upon such conversion ; consequently, RELIANCE shall
irrevocably lose such right should its shareholding interest decrease under the aforementioned 75% threshold; 

  

	 	•	 	 each other Investor shall have such right as long as it continues to hold at least 4 % of the Shares (including the Series E Preferred Shares
which shall be issued upon conversion of the E Convertible Bonds) under the conditions defined under Article 5.3 (a) herein; consequently, each of them shall irrevocably lose such right should its shareholding interest fall below the aforementioned
4% threshold. 

 Notwithstanding the foregoing, l-Source shall have the right to appoint one observer,
irrespective of the percentage of the capital held by it. Investors which are not represented as Members of the Board of Directors and which have no right to appoint an observer, shall nonetheless be individually entitled to (i) meet the CEO of
the Company twice a year, 

  
 11 

 Shareholders’ Agreement – Sequans E round 

 

 
upon reasonable notice, for the purpose of obtaining information regarding the business and perspectives of the Company, and (ii) receive copies of the materials of the Board of Directors
distributed to the Corporate Observers, subject to the restrictions set forth in the “Rights of the Corporate Observer and Confidentiality Rules” referred to below and which shall apply mutatis mutandis. 

The Parties shall use their respective best efforts to appoint, as soon as possible, as an observer, any candidate (if any) proposed by
Investors, as an observer (censeur), pursuant to the above principles, being specified that the observer selected by an Investor shall be an employee of such Investor or of one of its affiliates (as defined, mutatis mutandis, under
article 5.3 (g) below). 
 For the avoidance of doubt, it is specified that as long as an Investor conforms to the
shareholding condition set forth above, it will be entitled to have an observer and said Investor shall have the right, at the end of the mandate of its observer, to ask the Board of Directors to appoint a new observer (either the previous one or
another one, at Investor’s discretion). 
 In addition, it is specified that the rights and obligations of any observer
appointed by a Corporate Investor (referred to as the “Corporate Observer” for the purposes of this Agreement) shall also be governed by the “Rights of the Corporate Observer and Confidentiality Rules” attached as
Exhibit 4.2 (vi) hereto. Besides, the Parties agree and acknowledge that such right to appoint a Corporate Observer shall be strictly unassignable and non-transferable. 

Each observer (including Corporate Observers) shall receive copies of all notices of the Board of Directors’ meetings, consents,
board minutes and other materials distributed to the Members at the time such materials are distributed to Members - in accordance, as regards Corporate Observers, with the restrictions set forth in the aforesaid “Rights of the Corporate
Observer and Confidentiality Rules” - but shall have no voting right. In this respect and subject to the same restrictions, the Observers (including Corporate Observers) shall receive the information listed under Article 12.1 herein

 The Members will use their best efforts to meet at least eight (4) times per year. If the Board of Directors has not met
for more than sixteen (16) weeks, two (2) Members may convene a meeting on a specific agenda. 
 The chairman of the
Company shall submit relevant reporting information to the Members no later than two (2) days before each official Board of Directors meeting. 
 The Company shall reimburse the Members and the observers (including Corporate Observers) for their reasonable travel expenses incurred to attend meetings of the Board of Directors (including but not
limited to all economy class air travel tickets necessary to attend such Board of Directors’ meetings). 
 The Company and
the Parties who are represented at the Board of Directors as Members undertake to use their respective best efforts so that, as long as the Agreement is in effect, should the Company or any Party receive an offer that would result in a potential
Liquidation Event, the Board of Directors and/or the relevant Party shall neither address this offer, nor take any decision, unless such issue is mentioned on the Agenda included in the notice of Board meeting sent to Members and Observers. In this
respect, the Company shall comply with the rules regulating the meetings of the Board of Directors and notices for such meeting, and particularly the time periods prescribed by this Agreement, the law and the By-laws. 

 

	4.3.	 The Company and the Parties who are represented at the Board of Directors as Members undertake to use their respective best efforts so that, as
long as the Agreement will be in 

  
 12 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
effect, the decisions listed below (whether they concern the Company or its Subsidiaries) will be subject to the prior approval of the Board of Directors including the positive vote of at least
two (2) Investor Members: 

  

	 	(i)	Implementation of any loans, bonds credit facilities and, generally of any debt (including financial leases) of the Company as well as of any sureties, bill guarantees
or guarantees of a global amount in excess of 200,000€ in one or several instances and not provided in the budget; 

  

	 	(ii)	Acquisition or disposal of a business or part of a business, or of any interest in another company or entity, or acquisition or sale of assets in an amount in excess of
250,000€. 

  

	4.4.	The Company and the Parties who are represented at the Board of Directors as Members or who are employees or directors of the Company or its subsidiaries undertake to
use their respective best efforts so that, as long as the Agreement will be in effect, none of the decisions listed below may be validly adopted by the shareholders’ meeting of the Company or any other competent body of the Company or its
Subsidiaries: 

  

	 	(a)	without the prior approval of a Qualified Majority, which may be sought by any means, in addition to any statutory provisions and of the By-laws:

  

	 	(i)	any dividend or other distribution made to the shareholders of the Company; 

 

	 	(ii)	any decision to amend or replace the By-laws; 

  

	 	(iii)	any decision regarding the issuing, creation or cancellation of Securities which is not otherwise authorized by this agreement, the increase, redemption or reduction of
the share capital, the issuance or authorization of the Securities reserved to employees or consultants; any decision to redeem, purchase or otherwise acquire any Securities; 

 

	 	(iv)	acquisition or disposal of a business or part of a business, or of any interest in another company or entity, or acquisition or sale of assets in an amount in excess of
250,000€; 

  

	 	(v)	any authorization of a Liquidation Event; and 

  

	 	(vi)	any decision to make an IPO. 

  

	 	(b)	without the prior approval of holders of at least 2/3 of the Series A Preferred Shares, the Series B Preferred Shares, the Series C Preferred Shares, the Series D
Preferred Shares and/or the Series E Preferred Shares, as the case may be, under the form of decisions of the special meeting of the holders of such Preferred Shares (assemblée spéciale des porteurs d’actions de
preference), the amendment of the characteristics of such class of Preferred Shares or of the rights attached thereto. 

 For the avoidance of doubt, the above described majority rule shall only apply to changes of rights of a given series of Preferred Shares per se, it being specified that the holders of Preferred
Shares undertake not to vote against the creation of a new class of Shares with priority ranking over them, if such issue has been approved pursuant to the provisions of paragraph (a) above, in any special meeting necessary to create such new
class of shares. 
  

	 	(c)	without the prior approval of 75% of the holders of the concerned class of Preferred Shares, which may be sought by any means, in addition to any statutory provisions
and of the By-laws: 

  
 13 

 Shareholders’ Agreement – Sequans E round 

 

	 	(i)	any decision to convert any such class of Preferred Shares into Ordinary Shares or into another class of Preferred Shares; and 

 

	 	(ii)	any decision to redeem any such class of Preferred Shares. 

 For the avoidance of doubt, the redemption of Shares that may be decided by the Company pursuant to the majority rules stated above will result in an offer made by the Company to its shareholders (or to
the holders of one or of several class of Shares, as the case may be), each such shareholders being free to accept this redemption offer or to keep its Shares. This provision will only apply stricto sensu to redemption (rachat
d’actions par la société non motivé par des pertes). 
  

	4.5.	The prior approval referred to in Articles 4.3 and 4.4 above shall be in addition to any vote of the shareholders or decision of the competent corporate body of
the Company or its Subsidiaries required by law or by the By-laws. Any of the thresholds (and, for the avoidance of doubt, not the percentages of votes which can not be modified by the Board) mentioned in Article 4.3 (i) and
(ii) and Article 4.4 (iv) above may be modified by a unanimous decision of all the Members of the Board of Directors once a year. 

 The aforesaid provision shall not apply to Corporate Investors which, in their capacity of shareholders, only undertake to vote in shareholders’ meetings so that the Board of Directors be composed as
provided for by Article 4.7 of this Agreement. 
  

	4.6.	The preference right to appoint a Member, as granted to some of the Existing Investors pursuant to in Article 4.2 above, shall be automatically terminated as
soon as each such Existing Investors shall cease to hold directly or indirectly through a Subsidiary 5% of the Shares. 

  

	4.7.	The Parties hereby undertake to vote or cause to vote in favour of any shareholders’ or Board of Directors’ resolution and more generally to take any action
(including, but not limited to, regarding any amendment of the By-laws) required to effect and implement the provisions of this Article 4, upon the first written request of any Founder or Investors holding at least 5% of the Shares.

 For the avoidance of doubt, for any decision listed in Article 4.3 (a) and (b) which would not
have been approved in accordance with the majority rules respectively provided for in such paragraphs, each of the Parties undertakes to vote against or to abstain (as long as abstention is effectively considered as a negative vote) at any
shareholders meeting or Board of Directors’ meetings (for Parties who are represented as Members) which is convened to deliberate on such decisions. 
 Article 5 – Pre-emptive Right 
  

	5.1.	Prior to any Transfer by a Party (hereafter referred to as a “Transferor”) of all or part of its Shares (hereafter referred to as the
“Transferred Shares”) to a Party or a Third Party (hereafter referred to as the “Transferee”), the Transferor shall provide notification of the proposed Transfer (the “Proposed Transfer”) to the
other Parties (hereafter referred to as the “Other Parties”, including the Transferee if it is a Party) and to the Company specifying the identity and the nature of the Transferee (Party or Third Party), the identity of the person
controlling the Third Party (as the case may be), the number of Shares subject to the Proposed Transfer, the price offered by the Transferee (or, in the circumstances provided for in Article 5.2(b)(ii) below, by the Transferor), and a
description of the transaction upon which the Transfer is to be effected. 

  

	5.2.	 Each Transferor grants to the Other Parties (except the Company), in the event of a Proposed Transfer, a pre-emptive right over the Transferred Shares.
This right is granted to 

  
 14 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
the Other Parties irrespective of the class of Shares they hold. 

 The Other Parties will have thirty (30) days as from receipt of notice of the Proposed Transfer to notify the Transferor and the Company of their intent to exercise their pre-emptive right.

 The pre-emptive right provided for in this Article 5 will be exercisable as follows: 

 

	 	a)	the pre-emptive right of the Other Parties may only be exercised in respect of all of the Transferred Shares, i.e. for said pre-emptive right to be validly
exercised, the total number of Transferred Shares offered to be purchased by the Other Parties must be equal to the number of Transferred Shares; 

  

	 	b)	in case of exercise of the pre-emptive right, the purchase price of the Transferred Shares will be: 

 

	 	(i)	in case of a sale (vente) of the Transferred Shares entirely for cash (numéraire), the purchase price agreed upon by the Transferor and the
Transferee, or 

  

	 	(ii)	in all other cases, in particular in the event of a donation, exchange, contribution, merger or demerger or any combination of such forms of ownership transfer, the
price offered in good faith by the Transferor or, in the event of a disagreement, the price determined by an expert appointed, upon request of the disagreeing Party or Parties, by order of the President of the Commercial Court (Tribunal de
commerce) of Paris, ruling in a summary form (forme des référés) and without appeal, as set forth in article 1843-4 of the French civil code; 

 

	 	c)	if the total number of Transferred Shares offered to be purchased by the Other Parties is equal or superior to the number of Transferred Shares, the Transferred Shares
will be sold to the Other Parties having exercised their pre-emptive right in proportion (unless otherwise agreed between the Other Parties) to the ratio of the number of Shares held by each such exercising Other Party to the total number of Shares
held by said exercising Other Party as a group, and in any case for each Other Party within the limit of the total number of Transferred Shares he offered to purchase. Any remaining Share or Shares (in case of rompus) will be transferred to
the Other Parties holding the largest number of Shares or, in case of a draw, having first notified its intention to exercise its preemptive right or, in case of another draw, having requested the largest number of Transferred Shares. Such Transfer
shall take place within the time period specified in the notification of the Proposed Transfer or, in the absence of any such period, within fifteen (15) days of the expiration of the one-month pre-emptive period provided for above;

  

	 	d)	in the absence of any offer to purchase or, if the offers to purchase of the Other Parties concern a number of Transferred Shares inferior to the number of Transferred
Shares, the Transferor may proceed with the Proposed Transfer subject to compliance with the provisions of Article 18 hereof and provided that such Transfer be completed within thirty (30) days of the expiration of the 30-day pre-emptive
period provided for above, failing which the Transferor shall be bound to conform again to the provisions of this Article 5; 

  

	 	e)	in the circumstances referred to in Article 5.2(b)(ii) above, in the event of disagreement of one Other Party with the price at which the Transferred Shares are
offered, the disagreement shall be notified to the Transferor, the Other Parties not concerned and the Company within the first fifteen (15) days of the thirty (30) day period allowed for the exercise of the pre-emptive right. The
appointed expert shall, within thirty (30) days of his designation, deliver his report to the Transferor and the Company which shall notify it to each of the Other Parties Any disagreement duly notified shall cause to be void the exercise of
any preemptive-right which may have been notified by an Other Party prior to the notification of the expert’s report. All Other Parties may then exercise their preemptive-right, at the price determined by the expert under the terms of
Article 5.2(b)(ii), within fifteen (15) days of the notification of the price determined by the expert; 

  
 15 

 Shareholders’ Agreement – Sequans E round 

 

	 	f)	the Transferor shall not benefit from any right of withdrawal, save for instances where the price determined by the expert in accordance with the provisions of
Article 5.2(b)(ii) and Article 5.2(e) above shall be inferior to the price offered by the Transferor and provided that the Transferor shall have informed the Other Parties and the Company that it intends to cancel the Proposed Transfer
within five (5) days following the delivery of the expert’s report; 

 the expert’s fees shall be
borne by the Transferor if the price determined by the expert is inferior to the price which the latter shall have offered and by the disagreeing Party(ies) prorata their respective holdings in the Company’s share capital in all other cases.

  

	5.3.	As an exception to the foregoing, the pre-emptive right granted by each Transferor to the Other Parties pursuant to Article 5.2 above shall not apply in case of
a Transfer (a “Free Transfer”): 

  

	 	(a)	by a holder which is an Investment Fund or by its trustee, custodian or nominee: 

 

	 	(i)	to any trustee, nominee or custodian for such fund and vice versa; 

  

	 	(ii)	to any other Investment Fund managed by the same manager or advised by the same advisor or whose management is delegated to the same delegate as the transferring
Investment Fund; 

  

	 	(ii)	to a trustee, nominee, custodian or to a Group Member of any of the persons referred to in sub-paragraphs (i) or (ii) of paragraph (a) above of this
Article 5.3; or 

  

	 	(iv)	in the case of the transfer by an Investment Fund of 75% or more of its portfolio pursuant to one or more transactions to any other Investment Fund or to a series of
Investment Funds that are Group Members with respect of each other. 

 where: 

Investment Fund is any person, company, trust, limited partnership or fund holding shares for investment purposes and not being a member
of the Company by virtue of being an employee or ex-employee 
 a Group Member, as regards any company, is a company which is
for the time being a holding company or a subsidiary of that company or of any such holding company ; and 
 Any change in (or
change in the respective entitlements of) the partners, participants, shareholders, unitholders (or any other interests) in any member which is an Investment Fund or any mortgage, charge or other encumbrance created over their interest in any such
Investment Fund shall not be regarded as a Transfer. 
  

	 	(b)	to any Member, within the limit of the number of Shares required to exercise the duties of a Member, it being specified that the resale of the same number of Shares by
the said new Member, upon the termination of his duties as Member, to the shareholder it had received such Shares from, shall also be exempted from the pre-emptive right provided in this Article 5; 

 

	 	(c)	by a Founder (other than Georges Karam and/or Bertand Debray) to another Founder, 

 

	 	(d)	by a Founder to his/her spouse or any of his direct ascendant or descendant, should said Transfer be driven by estate planning purpose, or result from the death of said
Founder; 

  
 16 

 Shareholders’ Agreement – Sequans E round 

 

	 	(e)	by a Managing Founder to a holding company that is only engaged in personal asset management activities and of which the Transferor owns at least the qualified majority
in the extraordinary shareholders’ meetings, the remaining voting rights being owned by the spouse of the Transferor and/or by any of his direct ascendant or descendant, or any direct family member; 

 

	 	(f)	made pursuant to Articles 8 and 9 or Article 11.2 hereof; 

  

	 	(g)	by a Corporate Investor to one of its affiliates, it being specified that for the purpose of this Agreement, an entity shall be considered an affiliate of another legal
entity which, directly or indirectly through one or several entities, controls or is controlled by, or is under common control with such Corporate Investor, or is controlled, directly or indirectly, through one or several entities, by or is under
common control with a body which controls such Corporate Investor, directly or indirectly through one or several entities. In this way, the term “control” (or the verb “to control”) has the meaning ascribed to this term by
article L.233-3 of the French Commercial Code. 

 provided that, each of the following conditions
shall be met, it being specified that the second condition (as detailed under (ii) hereafter) shall not apply to Corporate Investors: 
  

	 	(i)	in the circumstances referred to in Articles 5.3(a) to Article 5.3(e) above, the Transferee (or the manager thereof if the Transferee is an investment
fund) shall have adhered to the Agreement or to the Contractual Undertaking, as the case may be, and shall have handed to the Company a declaration, substantially in the form of declaration attached as Exhibit 5.3, pursuant to which it
undertakes to comply with any and all of the Transferor’s obligations under the Agreement with respect to the Shares so transferred no later than upon the completion of the Transfer as provided in Article 18 hereof;

  

	 	(ii)	in the circumstances referred to in Article 5.3(a), Article 5.3(b) and Article 5.3(e) above, the Transferee shall have handed to the Company a
declaration, substantially in the form of declaration attached as Exhibit 5.3, pursuant to which it undertakes to transfer back the relevant Share(s) to the Transferor in the event the Transferee were to cease meeting the conditions
which exempted the Transfer from the pre-emptive right, said Shares being transferred back to the Transferor or to any Party if the Transferor were no longer a Party at the time of such Transfer; and 

provided further that, except for the exemptions expressly provided for in this Article 5.3: 

 

	 	(i)	prior to any Liquidation Event, IPO or sale by the Investors of at least 50% of their respective shareholding in the Company (as resulting from the Capital Increase,
and, as the case may be, from the Additional Investment) and during a 3-year period from the 14 February 2005 neither the Founders (as far as the concerned Founder is still an employee or managing director of the Company at the date of the
Transfer) nor any permitted transferee of its respective Shares pursuant to this Article 5.3 shall be entitled to sell more than 10% of the total number of Shares held (i) by said Founders as at the date hereof, or (ii) by said
permitted transferees as at the date of the Transfer of the Shares to them, without the prior written consent of D Investors holding together more than 50% of the D Preferred Shares; and 

 

	 	(ii)	after the end of said 3-year period, the Founders and their permitted transferees shall each be entitled to sell up to 33,33%, 60% or 100% of their Shares respectively
during each of the fourth, fifth and sixth years following the 14 February 2005. It is specified, for the sake of clarity, that the Founders shall be entitled to sell up to 100% of their Shares after the 14 February 2011.

  
 17 

 Shareholders’ Agreement – Sequans E round 

 

 Article 6 – Full Tag - Along Right (droit
de sortie conjointe totale) 
  

	6.1.	In the circumstances where one or several Parties (referred to as the “Concerned Party” in this Article 6) would consider the Transfer of Shares
(other than a Free Transfer) to one or more Parties and/or Third Parties acting in concert (agissant de concert) (together referred to as the “Acquiror” in this Article 6) of such number of Shares that, as a result of
such Transfer, the Acquiror would hold more than 50% of the share capital of the Company (referred to as the “Control” in this Article 6), 

 the other Parties (hereafter referred to as the “Non-Concerned Parties”) shall have a full tag-along right, pursuant to which each of the Non-Concerned Parties may transfer to the
Acquiror, all or part of its Shares on the same terms and conditions as offered by the Acquiror to the Concerned Party. 
 The
Parties shall be entitled to exercise their pre-emptive right provided for in Article 5 above, provided that in the case such Party(ies), as a result of this exercise, fulfill the condition mentioned above and become(s) an Acquiror
(such pre-empting Parties being then deemed to be acting in concert), then the Other Parties may exercise the tag-along right provided for in this Article 6. 
 The Non-Concerned Parties will also benefit from the same tag-along right in case of a Transfer of Shares to an Industrial Investor (including, for the avoidance of doubt, the Corporate Investors) such as
the Industrial Investor would hold 1/3 of the share capital of the Company as a result of the Transfer (hereinafter also referred to as the “Acquiror” in this Article 6). In this particular case, the price of the Offered
Shares, as this term is defined hereafter, will be determined pursuant to Article 6.3.2(ii). 
 Accordingly, prior to the
Transfer of any or all of its Shares and before to make any commitment in respect of such Transfer, the Concerned Party shall secure the Acquiror’s irrevocable undertaking to purchase such Shares of the Non-Concerned Parties that they may wish
to sell, on the same terms and conditions as offered by the Acquiror to the Concerned Party except that the Non-Concerned Parties shall not be required to make any representations or grant any warranties with respect to the Company and its business.

  

	6.2.	Hence, in the circumstances referred to in Article 6.1 above, the Concerned Party shall inform each of the Non-Concerned Parties in the notification provided for
in Article 5.1 hereof, and the Company, that the Proposed Transfer referred to in said Article 5.1 may result in the exercise of the full tag-along right provided for in this Article 6. 

 

	6.3.	The Non-Concerned Parties shall have a period of thirty (30) days from receipt of the notice referred to in Article 6.2 above to exercise their full
tag-along right in accordance with the following terms and conditions, or their pre-emptive right as provided in Article 5 above: 

  

	 	6.3.1.	If the Non-Concerned Parties wish to exercise their full tag-along right, they shall notify the Concerned Party and the Company, prior to the expiration of the thirty
(30) day period referred to above, of the number of Shares that they wish to transfer (the “Offered Shares”). 

  

	 	6.3.2.	In the event of exercise by any Non-Concerned Party of its full tag-along right, the purchase price per Share payable by the Acquiror for the Offered Shares will be
equal to: 

  

	 	(i)	if the price per Share agreed upon by the Acquiror and the Concerned Party is in cash, the greater of (a) the said price per Share, and (b) the average
purchase or subscription price per Share paid by the Acquiror to acquire Shares in the six (6) months preceding the notification provided for in Article 6.2 above, subject in any case to the liquidation preference right of the Preferred
Shares as case may be, even if this results in reducing the price per Share finally offered to the Concerned Parties, or 

  
 18 

 Shareholders’ Agreement – Sequans E round 

 

	 	(ii)	in all other cases, the price offered in good faith by the Acquiror or, in case of a disagreement, determined by an expert appointed, upon request of the disagreeing
Non-Concerned Party or Parties, by order of the President of the Commercial Court (Tribunal de commerce) of Paris, ruling in a summary form (forme des référés) and without appeal, as set forth in article 1843-4 of
the French civil code. All disagreements on the price will be resolved, mutatis mutandis, in accordance with the provisions of Article 5.2(e) of the Agreement, subject to the liquidation preference right of the Preferred Shares as case may
be, even if this results in reducing the price per Share finally offered to the Concerned Parties. 

  

	 	6.3.3.	In the event of exercise by any of the Non-Concerned Parties of its full tag-along right, the Transfer of the Offered Shares shall take place within the time period
mentioned in the notified Proposed Transfer or, absent any such period, within 15 days of the expiration of the thirty-day period provided for to exercise the full tag-along right set forth in this Article 6 or within 15 days of the date of
the expert’s report, as the case may be. 

  

	6.4.	In order to ensure the purchase by the Acquiror of the Offered Shares and payment thereof within said period, the Concerned Party shall only transfer ownership of the
Transferred Shares to the Acquiror and receive the price therefor if the Acquiror is simultaneously transferred ownership of, and pays the transfer price of the Offered Shares. 

 

	6.5.	In the event that, in the course of a duly notified Transfer, no Party shall have exercised its full tag-along right, the notifying Party shall proceed with the
Transfer in strict compliance with the terms and schedule of the notified Proposed Transfer or, absent any such schedule, within thirty (30) days of the expiry of the pre-emptive and full tag-along rights exercise periods.

 Should the notifying Party fail to do so, it shall be bound, prior to any Transfer of its Securities, to conform again to the
provisions of the Agreement. 
 Article 7 – Proportional Tag-Along Right (droit
de sortie conjointe proportionnelle) 
  

	7.1	In the event of a Proposed Transfer by any Transferor to a Party or a Third Party (the “Acquiror” in this Article 7.1) of Shares resulting in a
Transfer of Shares (other than a Free Transfer), the Transferor shall procure that each other Party (other than (i) the Transferor, (ii), as the case may be, the Acquiror and (iii) the Parties not holding Shares of the same class(es) than
the Shares that the Transferor is proposing to transfer – the “Non Concerned Parties”) so requesting within the thirty (30) day period provided for in the second paragraph of Article 5.2 above (the
“Interested Party” in this Article 7.1) be able to transfer to the Acquiror a maximum number “N” of Shares (the “Tagged Shares”) calculated as follows : 

 

									
		 		  		  		  	
		 	N =	  	     TTS
	  	x A	  	
		 	  	    THS	  	  	
				
	where:	 		  	    TTS:	  	is the total number of Shares proposed to be transferred by the Transferor;
				
		 		  	    THS:	  	is the total number of Shares of the same class than the Shares proposed to be transferred by the Transferor, held by the Transferor at the date of notification of the
relevant Proposed Transfer to the Interested Party pursuant to Article 5.1 above.
				
		 		  	    A:	  	is equal to the total number of Shares of the same class than the Shares proposed to be transferred by the Transferor, held by a given Interested Party exercising its
proportional tag-along right under this

  
 19 

 Shareholders’ Agreement – Sequans E round 

 

 Article 7 as at the date of notification by the Interested Party of its intent
to exercise its proportional tag-along right. 
 provided that, “N” shall be rounded down to the highest
whole number. 
 Notwithstanding the foregoing, the provisions of this Article 7.1 shall not apply to Transfers which do
not exceed for any Transferor, in one or several Transfers, 10% of the total number of Shares held on a Fully Diluted Capital basis by said Transferor as at the date hereof. 
 Accordingly, prior to the Transfer of any or all of its Shares, the Interested Party shall secure the Acquiror’s irrevocable undertaking to purchase such Shares that the Interested Party(ies) may
wish to sell as set forth in this Article 7.1. Parties exercising their preemptive right provided for in Article 5 above on the Proposed Transfer shall also be bound to purchase Tagged Shares of the Interested Party(ies). 

 

	7.2	In the event of exercise by any Non-Concerned Party of its proportional tag-along right, the purchase price per Share payable by the Acquiror the Tagged Shares will be
equal to: 

  

	 	(i)	if the price per Share agreed upon by the Acquiror and the Concerned Party is in cash, the greater of (a) the said price per Share, and (b) the average
purchase price per Share paid by the Acquiror to acquire Shares in the six (6) months preceding the notification provided for in Article 5.1 above, or 

 

	 	(ii)	in all other cases, the price offered in good faith by the Acquiror or, in case of a disagreement, determined by an expert appointed, upon request of the disagreeing
Non-Concerned Party or Parties, by order of the President of the Commercial Court (Tribunal de commerce) of Paris, ruling in a summary form (forme des référés) and without appeal, as set forth in article 1843-4 of
the French civil code. All disagreements on the price will be resolved, mutatis mutandis, in accordance with the provisions of Article 5.2(f) of the Agreement. 

 

	7.3.	In the event of exercise by any of the Non-Concerned Parties of its proportional tag-along right, the Transfer of the Tagged Shares shall take place within the time
period mentioned in the notified Proposed Transfer or, absent any such period, within 15 days of the expiration of the thirty-day period provided for to exercise the proportional-along right set forth in this Article 7 or within 15 days of the date
of the expert’s report, as the case may be. 

  

	7.4	In order to ensure the purchase by the Acquiror of the Tagged Shares and payment thereof within said period, the Concerned Party shall only transfer ownership of the
Shares proposed to the Transfer (as reduced as a result of the tag along rights) to the Acquiror and receive the price therefore if the Acquiror is simultaneously transferred ownership of, and pays the transfer price of the Tagged Shares.

  

	7.5	In the event that, in the course of a duly notified Transfer, no Party shall have exercised its proportionate tag-along right, the notifying Party shall proceed with
the Transfer in strict compliance with the terms and schedule of the notified Proposed Transfer or, absent any such schedule, within thirty (30) days of the expiry of the pre-emptive and proportionate tag-along rights exercise periods.

 Should the notifying Party fail to do so, it shall be bound, prior to any Transfer of its Securities, to conform
again to the provisions of the Agreement. 
 Article 8 – Drag – Along 

 

	8.1.	Content of the Option 

 It is agreed that:

  
 20 

 Shareholders’ Agreement – Sequans E round 

 

	(i)	should any Party or Third Party, acting alone or in concert within the meaning of article L. 233-10 of the French commercial code (the “Beneficiary”)
offer to purchase one hundred per-cent (100%) of the Fully Diluted Capital of the Company (the “Offer”), and 

  

	(ii)	should the Offer be accepted by Parties holding at least a Qualified Majority (subject to prior compliance with the provisions of the last paragraph of Section 4.2
and Section 4.3), 

 each Party (hereafter collectively referred to as the “Promissors” and
individually as a “Promissor”) shall, if so requested by the Beneficiary, transfer their Shares to the Beneficiary. 
 For this purpose, the Promissors hereby grant the Beneficiary, as defined in this Article 8.1, the benefit of this irrevocable promise to sell (the “Option”). 

The Parties considering to Transfer their Shares to the Beneficiary shall notify the other Parties, together with the notification
provided for in Article 5.1 hereof, that the Proposed Transfer mentioned in the said Article 5.1 is in the context of an offer to purchase one hundred per-cent (100 %) of the Company’s capital. 

 

	8.2.	Any Beneficiary may call the Option if it meets the condition set forth in Article 8.1. 

 

	8.3.	The Beneficiary shall notify each Promissor and the Company of its decision to call the Option within thirty (30) days of the day when the condition set forth in
Article 8.1 is met. It shall also notify each Promissor of the terms of the accepted Offer, as well as of the written acceptance of Parties in the conditions referred to in Article 8.1 above. 

 

	8.4.	A Beneficiary may only call the Option in respect of all the Shares and Securities still held by the Promissors, and at one time only. If the Option is called by
several Beneficiaries, the transferred Shares shall be allotted between them in proportion to the ratio of the number of Shares held by each such Beneficiary respectively to the total number of Shares held by the said Beneficiaries as a group as the
time when the condition set forth in Article 8.1 shall have been met, unless the said Beneficiaries agree otherwise. 

  

	8.5.	If the Option is not called in accordance with the conditions set forth above, it will become null and void, without indemnity on any part. 

 

	8.6.	If the Option is called in accordance with the terms and within the period provided for above, each Party undertakes to transfer its Shares and E Convertible Bonds in
exchange for the consideration (including the price and the payment terms of such Shares) described in the Offer which shall have been notified to it. 

 In addition, if requested by the Beneficiary, each Party undertakes to request the conversion of all the E Convertible Bonds it holds and to transfer all the Shares resulting from this exercise in
accordance with the above paragraph. 
 Each Founder undertakes to exercise all the Founders’ Warrants (as such term is
defined in Article 9.1) that he holds and that he is entitled to exercise at the date of the Transfer resulting from the Option and to transfer all the Shares resulting from this exercise in accordance with the above paragraph, provided
that a Founder will not be obligated to exercise such Founders’ Warrants in the event the transfer of such Founders’ warrants as such is permitted by the applicable laws and regulations, or in the event the Beneficiary expressly
accepts that such Founders’ Warrants are not exercised and are kept by the concerned Founder. 
  

	8.7.	 If the Option is called in accordance with the terms and within the period referred to in Article 8.3 above at a price calculated in accordance
with Article 8.6 above, the Transfer of Shares and the payment of the purchase price will take place no later than fifteen (15) days after the 

  
 21 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
date on which the Option was called by the Beneficiary or at any other date mutually agreed upon in writing. 

 

	8.8.	The Transfer shall be conditional upon the delivery: 

  

	 	(i)	to each Promissor, in case of a sale (vente), of a bank check (or any document evidencing the execution of a wire transfer) in an amount equal to the purchase
price of its Shares or, in case of a non-cash Transfer, of the relevant consideration determined as provided above; 

  

	 	(ii)	to each Beneficiary of a stock transfer form (ordre de mouvement) duly completed and signed, requesting the Company to effect the Transfer of the relevant Shares
to the said Beneficiary in its share transfer registry (registre des mouvements de titres) and in the relevant securities holder’s account (compte individuel d’actionnaire). 

 

	8.9.	In a situation where the Beneficiary has validly exercised the Option pursuant to the provisions of this Article 8 yet where the Promissor has defaulted in the
execution of his obligations hereunder, the Beneficiary may deposit the price of the Shares for which the Option has been exercised in escrow at the Escrow. In such case, the mere remittance to the Company of a copy of the exercice notice of the
Option and a receipt from the Escrow shall be deemed a duly executed transfer order and shall cause the Company, which the Company hereby accepts, to register the corresponding transfer of Shares in the shareholders registry (registre des mouvements
de titres) and the relevant individual securities holders’ accounts (compte individuel d’actionnaire). 

 Article
9 – Departure of the Founders and the Managing Founders – Undertaking of the Founders and the Managing Founders 
  

	9.1	Each Founder hereby agrees and acknowledges that, in case any such Founder were to (i) resign (other than due to a permanent invalidity or the decease or permanent
invalidity of his spouse or of one of his children), or (ii) be terminated as an employee of the Company for serious cause (faute grave ou lourde), or (iii) be dismissed (révoqué) from his office (mandat
social) for a cause similar than a serious cause (faute grave ou lourde) under French labor law, before the expiration of a three (3) year period as from 14 February 2005 (in each case, the “Departure”), such
Founder: 

  

	 	(i)	would no longer be entitled to exercise, at the end of a period of thirty (30) days from the effective date of Departure, the warrants (bons de souscription de
parts de créateur d’entreprise) and stock options issued, outstanding and vested (in accordance with the vesting period applicable to each plan, which, for the avoidance of doubt, will start as from the date of attribution of the
Founders’Warrants) as at aforesaid date (the “Founders’ Warrants”); for the purpose hereof, each of the Founders consequently declares and accepts that its Departure (x) will end the vesting of its Founders’
Warrants, so that any Founders’ Warrants not vested at the date of such Departure may not be exercised by him, and (y) shall be deemed an irrevocable waiver by such Founder of the right to exercise its Founders’ Warrants after the end
of the above period of thirty (30) days and consequently hereby instructs the Company, which accepts, to cancel in its share transfer registry (registre de mouvements de titres) as well as in the relevant Founder’s individual
securities holder’s accounts (comptes individuels d’actionnaires) of all Founders’ Warrants that said Founders may then hold; and 

  

	 	(ii)	 would sell to the other Parties who shall so request (if any) a maximum percentage “N” of Shares (excluding any Shares resulting from the
exercise of Founders’ Warrants) which the concerned Founder will hold as at the date of Departure, right to dividends attached and free and clear of any pledge or security of any nature

  
 22 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
whatsoever (together, the “Option Shares”), at a price per Option Share equal to EUR 0.01, where “N” is calculated as follows): 

 

							
		  	 N= 75% x
	 	      (36 - M)	  	
	  	 	__________	  	
	  	 	              36	  	
	where: “M”	  	is the number of months elapsed between the 14 February 2005 and the effective date of the Departure, it being specified that, for the purpose of calculating
“N”, (i) a “month” shall be defined as the period between any day in a certain calendar month and the same day of the next calendar month and (ii) any month in progress shall be counted as a full
month.

  
 For this purpose, the Founders
hereby grant to the Parties who accept the benefit of an irrevocable promise to sell (the “Option 2”). 
  

	9.2	Each Party shall notify the concerned Founder and the other Parties of its decision to call Option 2 within sixty (60) days of the day when the Departure of the
concerned Founder will be effective. Option 2 may be calculated for all or part of the Option Shares. Each Party may call Option 2 in respect of all or some only of the Option Shares of the concerned Founder, but at one time only. If Option 2 is
called for a total number of Shares exceeding the number of Option Shares, the Option Shares shall be allocated between them in proportion to the ratio of the number of Shares held by each such Party respectively to the total number of Shares held
by the Parties exercising the Option 2, at the time such option is called, unless the said Parties agree otherwise. 

  

	9.3	If Option 2 is not called in accordance with the terms hereof, it will become null and void, without indemnity on any part. 

 

	9.4	If Option 2 is called in accordance with the terms hereof, the Transfer of the relevant Option Shares and the payment of their purchase price will take place no
later than thirty (30) days following the earlier of (i) the date on which all Parties shall have either exercised Option 2 or waived it, and (ii) the expiration of the sixty (60) day period provided for in Article 9.2
above. 

  

	9.5	The Transfer shall be effected by the delivery: 

  

	 	(i)	to the concerned Founder, of one or more bank checks (and/or any document evidencing the execution of one or more wire transfers) in a total amount equal to the
purchase price of the Option Shares concerned, and 

  

	 	(ii)	to each Party a stock transfer form (ordre de mouvement) duly completed and signed, requesting the Company to effect the transfer of the relevant Option Shares
to such Party. 

  

	9.6	In a situation where the concerned Party has validly exercised the Option 2 pursuant to the provisions of this Article 9 yet where the concerned Founder has defaulted
in the execution of his obligations hereunder, the Party may deposit the price of the Option Shares for which the Option 2 has been exercised in escrow at the Escrow. In such case, the mere remittance to the Company of a copy of the exercice notice
of the Option 2 and a receipt from the Escrow shall be deemed a duly executed transfer order and shall cause the Company, which the Company hereby accepts, to register the corresponding transfer of Shares in the shareholders registry (registre des
mouvements de titres) and the relevant individual securities holders’ accounts (compte individuel d’actionnaire). 

  

	9.7	For the purpose of this Article 9, the Investors shall be entitled to substitute one or more individual(s) and/or legal entity(ies) of their choice, to the exeception
of an Industrial Investor, for all or part of its rights under the Option 2 

  
 23 

 Shareholders’ Agreement – Sequans E round 

 

 Should any Investor decide to substitute one or more individual(s) and/or legal
entity(ies) of its choice for all or part of its rights under the Option 2, such person(s) as well as said Investor shall remain jointly and severally liable vis-a-vis the relevant Founder for the performance of the obligations of such person(s)
under this agreement, and in particular for the payment of the price of the Option Shares. 
 Article 10 – Scope and form of the
pre-emptive rights, full and proportional tag-along rights, drag-along, undertaking of the Managing Founders and Sale and Merger preference 
  

	10.1.	The pre-emptive rights, the full and proportional tag-along rights, the drag-along, undertaking of the Founders, and the Sale and Merger preference referred to
in Articles 5 to 10 and 14 of the Agreement shall not only apply to the Shares, but also to any Securities issued or to be issued by the Company, as the case may be. 

 

	10.2.	For the purposes of said pre-emptive rights, full and proportional tag-along rights, drag-along, and Sale and Merger preference, when there are Securities other
than Shares, their price shall be determined category by category on an as-converted basis, i.e. assuming all Shares issuable upon exercise, conversion, exchange or repayment, as the case may be, of the relevant Securities which may be
exercised, converted, exchanged or repaid as at the relevant date to be issued and outstanding. Further, the price of the Securities other than Shares which may not be exercised, converted, exchanged or repaid as at the relevant date shall be
determined as provided for in Article 5.2.(b)(ii), mutatis mutandis. 

  

	10.3.	For the purposes of said pre-emptive rights, full and proportional tag-along rights, drag-along, and undertaking of the Founders (mentioned in Articles 5 to 9
hereinabove), the Company and the Parties agree and undertake that any transfer of Shares pursuant thereto will be subject to prior compliance with the last paragraph of Section 4.2 when the contemplated transaction is qualified as a
Liquidation Event. 

  

	10.4	The Attorney undertakes to procure that all Securities held by the Parties and all Transfers effected by the Parties be timely and accurately registered, at all
times while this Agreement is in effect, in the individual securities holders accounts (comptes individuels d’actionnaires) and shareholders’ transfer registry (registre des mouvements de titres) held by the Company.

 Should any relevant Party breach the provisions of Articles 5 to 9 and 18 of the Agreement, each Party
hereby irrevocably mandates the Company, which undertakes so, to either: 
  

	 	(i)	with respect to the procedures set forth in Article 5 to 7 of the Agreement, refuse to complete the formalities required to enter the Transfer in the
Parties’ relevant Securities accounts, or 

  

	 	(ii)	with respect to the procedures set forth in Articles 8 and 9 of the Agreement, to complete the formalities required to enter the Transfer in the Parties’
relevant Securities accounts, upon presentation to the Company by the Beneficiary or the concerned Party, as the case may be, of any documents acknowledging that the price was paid by the Beneficiary or the concerned Party, as the case may be, and
credited 

 to the Promissor or concerned Party, as the case may be, or placed under escrow as provided for in
Articles 8.9 and 9.7 above, or 
  

	 	(iii)	with respect to the procedures set forth in Article 9 of the Agreement, to refuse to complete the formalities required to enter the exercise of the relevant
Founders’ Warrants in the concerned Founder’s relevant individual securities accounts (comptes individuels d’actionnaires) in case of Departure of the Founders. 

  
 24 

 Shareholders’ Agreement – Sequans E round 

 

 For the avoidance of doubt, pursuant to this Article 10.3, the Attorney will not be
entitled to impose on Corporate Investors any obligation but to Transfer the Corporate Investor’s securities as specified in this Agreement and enter into related formalities. 

 

	10.5.	In case of a Transfer of Securities held by an Investor, especially pursuant to Articles 5 to 8, 11 and 14 of the Agreement, the Parties hereby agree that
such Investor is not required to make any representation or grant any warranty and/or guarantee (except on valid title, capacity, authority to transfer and absence of third party rights), nor to subscribe to any non-compete undertaking, nor to enter
into any other covenant or agreement, nor to modify or terminate any existing agreement, nor to make any other representation than that relating to the validity of the Shares and to the Investor’s authority to transfer them, including in such
instances where the Agreement stipulates that the Investors shall have the right or obligation to Transfer their Shares upon the same terms and conditions as offered to another Party. 

In addition to the foregoing, the Parties hereby agree that no Corporate Investor shall be subject to liability in connection with such
Transfer other than on a several and not joint basis and otherwise limited to the lesser of (i) its ratable share of any amount under escrow or (ii) its net proceeds received in the Transfer. 

Article 11 – Liquidity 
  

	11.1.	The Parties shall use their respective best efforts to create and implement the conditions necessary to a Qualifed IPO or a sale of the Company no later than on
the 27 January, 2010 (the “Target Liquidity Date”), to the extent the market conditions and the situation of the Company allow so. 

 In case of an IPO or secondary offering, all Parties will agree to an appropriate lock-up period in terms agreed between the Company, the Investors and the relevant underwriters. 

It is specified that the best efforts obligation stipulated above shall be limited, for Corporate Investors, to entering into a customary
lock-up agreement with the underwriters, which may include a lock-up period as agreed between all the Parties. For the avoidance of doubt, Corporate Investors shall notably not be required to act as listing sponsor, to enter into any commercial
agreement or take any other positive action in view of the success of the IPO. 
 Should the Shares be listed in the United
States, the following shall apply: 
 In case of an an IPO on the Nasdaq National Market or NYSE in the United States of America,
during the period of five (5) years from a date commencing six (6) months from the date of the Company’s IPO, each Investor shall have the right to two (2) “demand” registrations of an underwritten public offering of
their Ordinary Shares (after conversion of their Preferred Shares) by an underwriter acceptable to the Company and holders of at least a majority in nominal amount of the Preferred Shares (or in each case the Shares into which such Shares shall have
converted) as one group, at the Company’s expense (except for customary expenses borne by the Investors). 
 Each Investor
shall also be entitled, during such period of time i.e. ending 27 January, 2010, to individual unlimited piggyback and S-3 registration rights (or the equivalent), at the Company’s expense (except for customary expenses borne by the
Investors). Demand registrations are to be initiated only by the holders of more than 50 % of the Investors’ Shares. All demand registrations and piggyback rights are subject to any requirements as may be set by the underwriters involved.

  
 25 

 Shareholders’ Agreement – Sequans E round 

 

 The Founders shall be entitled to unlimited piggyback and S-3 registration rights (or
the equivalent), at the Company’s expense (except for customary expenses borne by said Founders). 
 The registration rights
shall terminate after five (5) years from the IPO or, with respect to each shareholder, when all of such shareholder’s Shares can be sold in any 3-month period pursuant to Rule 144(K) in the case of a US offering or pursuant to equivalent
provisions in other jurisdictions where the offering is made. 
  

	11.2.	If the Shares held by the Investors were not listed on a regulated market or stock exchange in the European Union or the United States or sold on the Target
Liquidity Date at the latest, holders of more than 75% of the Shares will be entitled to require either that the Company be sold or that a transaction be completed pursuant to which said holders will be able to Transfer their Shares. To this effect,
the Parties to the Agreement undertake to appoint an investment bank or other financial intermediary as their common attorney, it being specified that the selection of said investment bank or other financial intermediary among reputable institutions
shall be approved by holders of more than 75% of the Shares. 

  

	11.3	The Parties hereby agree and acknowledge that unless otherwise agreed through a Qualified Majority vote of the shareholders’ meeting, the Company shall not
distribute any dividends or proceeds to its shareholders until the earlier of (i) the Company’s IPO, or (ii) the expiration of a 3-year period of the date hereof. 

 Article 12 – Information of Parties 
  

	12.1	In addition to the rights granted to them by applicable laws and regulations, the Company undertakes to procure that each Party shall be provided with the
following information: 

  

	 	•	 	 audited annual financial statements (balance sheet, income statement and annexes) of the Company and of each its Subsidiaries as well as the
consolidated financial statements together with the statutory auditors’ report thereon, no later than sixty (60) days after the end of each fiscal year; 

 

	 	•	 	 unaudited quarterly consolidated financial statements, no later than thirty (30) days after the end of each quarterly period;

  

	 	•	 	 annual budget and operating plan on a consolidated basis, no later than thirty (30) days prior to the beginning of the relevant fiscal year;

  

	 	•	 	 monthly reports, no later than fifteen (15) days after the end of each month, 

 

	 	•	 	 all notices, consents, Board of Directors’ minutes and other materials distributed to the Members, subject to the exception provided in Article
4.2(vii) above, 

  

	 	•	 	 all information reasonably requested by a Party to allow it to comply with all tax reporting requirements. 

Should any Party receive the above information in its capacity of Member or Observer (and Corporate Observer) of the Board of Directors,
the present clause 12.1 would not apply. 
  

	12.2	 Additionally and subject to compliance with the confidentiality provisions set forth in Article 17 below, the Parties and their agents
shall be granted access during normal business hours, following reasonably notice, to the Company’s Key-Men and officers, any documents, register, information or data relating to the Company (including, but not limited to, information regarding

  
 26 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
the Company’s officers and staff and intellectual property), such right not to be unreasonably enforced. 

 

	12.3	The rights granted to each of the Founders, Existing Investors and New E Investors, pursuant to this Article 12 shall be automatically terminated with
respect to any Party as soon as such Party, shall cease to hold directly or indirectly through a Subsidiary 4% of the Shares on a Fully Diluted Capital basis, without prejudice for the New E Investors of the ERISA or PFIC rights mentioned in
Articles 21.2 and 21.3 which shall be granted to the New E Investors as long as he holds Securities in the Company. 

  

	12.4	Should a Corporate Investor Transfer its shares to an Affiliate and should this Affiliate cease to comply with the definition provided under Article 5.3
(g) above, such Affiliate shall not be entitled to receive the information provided for in the last four bullet points of Article 12.1 nor benefit from the rights provided for in Article 12.2. 

Article 12.3 shall apply to Corporate Investors and their Affiliates (provided that such Affiliate complies with the definition provided
under Article 5.3 (g) above), except that Corporate Investors and such Affiliates, as long as they will hold Shares in the Company, shall retain the right to receive the information provided for in the first two bullet points of Article 12.1
(i.e. annual and quarterly financial statements). 
 Article 13 – Right of First Refusal on New Issues 

Each Party has a right to maintain its percentage holding in the Company’s share capital. 
 Accordingly, the Parties undertake to use their respective best efforts, with respect to any issuance of Shares or other Securities, that each Party be offered to maintain its percentage holding in the
Company’s equity to the same level as immediately prior to such issuance. In particular, the Parties undertake to vote against any resolution submitted to an extraordinary general meeting of the shareholders of the Company the purpose of which
would be to waive the shareholders’ preferential subscription right (suppression du droit préférentiel de souscription des actionnaires) if each Party has not previously been offered to participate in the relevant issuance,
provided that if any Investor chooses not to take up all the Securities offered to it the other Investors will have the right to take all or some Securities, on a prorate basis inter se. 
 For the avoidance of doubt, each Party having voted in favor of a specific issue of Shares or other Securities at the relevant extraordinary general meeting of the shareholders of the Company shall be
deemed to have waived its rights pursuant to this Article 13 with respect to said specific issue. 
 However, the provisions of this
Article 13 will not apply (i) to any issuance of Shares or other Securities contemplated in this Agreement or the Investment Agreement and (ii) to founders’ warrants (bons de souscription de parts de créateurs
d’entreprise), warrants (bons de souscription autonomes) or options to subscribe for shares (options de souscription d’actions) granted to the managers, employees, Members or consultants of the Company or of its
Subsidiaries, subject to such issue having been approved under the conditions provided for in Article 4.4 above. 
 Corporate Investors
shall benefit from the rights provided for in Article 13 of the Agreement, but shall not be bound by the obligations relating thereto. 

Article 14 – Sale, Winding-up or Merger of the Company 
 The Parties acknowledge that the Investors have subscribed the Preferred Shares they hold in the share capital of the Company in consideration of the preference rights attached respectively to each series
of Preferred Shares, and in particular to the financial preference rights applicable in case of Sale, Winding-up, Liquidation or Merger of the Company, as such rights are described in the By-laws and specifically in its Exhibit 1 (an English
translation of such Exhibit 1 being provided in Exhibit 14.A to this Agreement). 

  
 27 

 Shareholders’ Agreement – Sequans E round 

 

 The Parties agree and acknowledge that such preference rights (including for the avoidance of doubt any
right of priority over the proceeds of a Sale, a Winding-up or a Merger of the Company benefiting to one series of Shares over the other series of Shares) are part of this Shareholder Agreement and generally have been granted in consideration for
the global economic balance resulting for the Parties of their investment in the Company, and will be fully applicable among the Parties and generally among the Securities holders in accordance with their terms. Each Party – except Corporate
Investors - shall make its best efforts so that the Securities holders not being Parties to this Agreement do comply with such terms. 
 The
Parties agree and acknowledge that it may result from the implementation of such preference rights, under certain circumstances, that certain Parties receive less than their prorata share (based on the distribution of the share capital of the
Company) of the proceeds of a Sale, a Winding-up, Liquidation or a Merger of the Company, and, concerning the holders of Series B Preferred Shares, Series C Preferred Shares and Series D Preferred Shares, that they may not participate at all to a
distribution of such proceeds. 
 Examples of the application of the financial preference rights mentioned above are attached in Exhibit
14.B to this Agreement. 
 For the avoidance of doubt, the Parties acknowledge and agree that the financial preference rights mentioned
above will apply in case of a Sale of the Company resulting from or triggering the full tag-along rights and/or the drag-along right referred to in Articles 6 and 8 of this Agreement. 
 Article 15 – Duration and termination of the Agreement 
  

	15.1.	The Agreement is entered into for a period of ten (10) years as from January 31, 2008. At the end of this first period of ten (10) years, the
Agreement shall be automatically renewed for successive periods of five (5) years. On each renewal, including the first one, any Party may terminate its participation to the Agreement, by notifying such decision to the other Parties at least
twelve (12) months in advance. 

 In addition, the Agreement will terminate, as to any specific Party, on the
date when such Party shall cease to hold any Share or Security. 
  

	15.2.	Notwithstanding the foregoing, the Agreement shall automatically terminate immediately before any Qualified IPO, except for the provisions of Article 19.3
and Article 19.4 which shall continue to bind the Founders until the expiration of an twelve (12) month period as from the date when the Founders shall cease to be employed and hold any office in the Company and the Subsidiaries.

 Article 16 – Attorney 
  

	16.1.	In order to guarantee the enforcement of the rights which the Parties mutually grant to each other and to give full effect to the Agreement, the Parties hereby
agree to appoint, jointly and irrevocably, in their common interest, the Company as their common attorney in charge of the operation and administration of the Agreement (the “Attorney”). 

The Company is entering into this Agreement specifically to accept this joint and several power of attorney of common interest (mandat
d'intérét commun), in accordance with the following provisions. 
  

	16.2.	As the administrator of the Agreement, especially empowered by the Parties for the duration of the Agreement as provided in Article 16.1 above:

  
 28 

 Shareholders’ Agreement – Sequans E round 

 

	 	(i)	only the Attorney will be allowed to deal with and, as the case may be, to enforce the transfer orders (ordres de mouvement) issued by the Parties and relating
to the Securities; 

  

	 	(ii)	the Attorney shall check the conformity of such transfer orders to the obligations and commitments set forth in the Agreement; 

 

	 	(iii)	the Attorney shall ensure that the individual securities holders’ accounts (comptes individuels d’actionnaires) opened by the Company mention that the
Securities held by the Parties are subject to Transfer restrictions pursuant to the Agreement; 

  

	 	(iv)	the Attorney shall register a transfer order (ordre de mouvement) only after ensuring that the procedures provided for in the Agreement have been complied with
and that the execution of the transfer order may be completed; 

  

	 	(v)	the Attorney shall ensure that the holders of options or warrants to subscribe or purchase Shares or other Securities execute a contractual document substantially in
the form of the standard “Contractual Undertaking” attached as Exhibit 16.2 hereto (the “Contractual Undertaking”); consequently, the Parties hereby grant to the Attorney all powers to execute the Contractual
Undertaking in the name and on behalf of all Parties; 

  

	 	(vi)	the Attorney shall record adhesions to the Agreement as provided for in Article 18 below; 

 

	 	(vii)	the Attorney will collect by all means the unanimous decisions of the Parties relating to the amendment, modification or waiver of any of the provisions hereof and will
implement, as the case may be, the resulting changes to the Agreement. 

  

	16.3.	This power of attorney shall apply to all of the Securities held by the Parties. 

 

	16.4.	However, for the purpose of the interpretation of Article 16 of this Agreement, the Parties hereby agree that the power of attorney granted to the Company by
Corporate Investors shall be strictly limited to the actions listed in Article 16.2 above. 

 Article 17 –
Confidentiality 
  

	17.1.	Each Party – except Corporate Investors - undertakes to consider as strictly confidential and not to divulge, sell or transfer to any Third Party, part or
all of this Agreement and any documents or information which it may acquire or to which it may have access in the course of its relationship with or responsibilities in the Company concerning, in particular, the Investors, the activities, products,
clients, the strategy, the development, the commercial or partnership agreements and the financial situation of the Company or its Subsidiaries unless made: 

 

	 	•	 	 with the prior consent of the Company, or 

  

	 	•	 	 as required by the applicable mandatory laws or regulations, or 

 

	 	•	 	 to the directors, managers, employees or professional advisers or auditors of a Party, provided that it be necessary to the performance by such Party
of its obligations and undertakings or to the exercise of its rights in relation to the Company and provided that the director, manager, employee or professional adviser referred to above be subject to a similar confidentiality agreement, which the
Party concerned will make sure of, it being specified that the persons representing funds or investment firms which are Parties may communicate to the competent bodies managing such funds the information required to allow them to make decisions upon
matters relating to the Company. In addition, the said 

  
 29 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
managing companies may communicate the information required to their regulatory authorities (to the extent necessary considering the obligations exiting towards them), their auditors or to their
funds’ auditors, and to the shareholders, trustees, unitholders, partners or members and other participants in the relevant fund or investment firms for information purposes. 

 

	17.2.	Information will not be regarded as confidential, however, if: 

  

	 	•	 	 it is in the public domain due to a third party and not because of the negligence of the Party concerned; or 

 

	 	•	 	 it is available through other sources without breach of this confidentiality undertaking. 

 

	17.3.	As regards confidentiality purposes, Corporate Investors shall be bound by the terms of the “Rights of the Corporate Observer and Confidentiality
Rules” attached as Exhibit 4.2 (vi). 

 Article 18 – New Parties to the Agreement

  

	18.1.	Should a Party decide to transfer one or more of its Securities to a Third Party, such Party undertakes to: 

 

	 	•	 	 make said Third Party adhere to the Agreement no later than on the Transfer date if, as a result of the Transfer, the Third Party concerned holds a
percentage of the Company’s share capital at least equal to 1%; the said Third Party shall thus become a Party for purposes of the Agreement and the Agreement shall benefit to and bind the said Third Party which shall become a member of the
Transferor’s Group; 

  

	 	•	 	 make said Third Party execute the Contractual Undertaking as “Titulaire” otherwise. 

For this purpose, the Parties grant to the Company, an irrevocable power to record such adhesion or to execute such agreement in their
name and on their behalf. 
 Accordingly, the mere signature by the Company of a copy of the Agreement or of the Contractual
Undertaking, as the case may be, signed also by said Third Party shall be deemed signed by all Parties. 
 The Company shall also
have all powers to modify the Agreement in order to insert therein the name of the Third Party and all the Parties shall be bound by the modifications so made. 
 A copy of the amended Agreement or of the Contractual Undertaking, as the case may be, shall then be sent by the Company to each of the Parties. 

Failing for the Transferor to make the Third Party adhere to the Agreement or to the Contractual Undertaking, as the case may be, on the
Transfer date at the latest, the Parties irrevocably instruct the Attorney not to register the Transfer of Securities to the Third Party in the individual securities holders’ accounts (comptes individuels d’actionnaires) until the
adhesion of such Third Party to the Agreement has been secured. 
  

	18.2.	In the event of an increase in capital reserved in whole or in part to one or more Third Party(ies), the Parties shall use their best efforts to make said Third
Party(ies) adhere to the Agreement or to the Contractual Undertaking no later than on the date of completion thereof. 

  

	18.3.	For the avoidance of doubt, Corporate Investors shall be bound and benefit from the terms of this Article 18, provided however that in case of Transfer of Shares
to an Affiliate, such Affiliate will adhere to the Shareholders’ Agreement as a Corporate Investor. 

 Should
an Affiliate cease to comply with the definition of affiliate provided under Article 5.3 (g) above, such Affiliate will irrevocably loose the right to appoint a Corporate Observer pursuant to Article 4.2 of the Agreement. 

  
 30 

 Shareholders’ Agreement – Sequans E round 

 

 Article 19 – Key-Men 

 

	19.1.	For the entire term of his employment or office (mandat social) with the Company, each of the Key Men, as defined under Article 19.2 below,
undertakes to dedicate his full business time, attention, skills and efforts to the tasks and duties of his position as assigned by the Company. Such undertaking shall not apply to a Key Man being a mere Member of the Board of Directors with no
executive duties. 

  

	19.2.	For the purposes of the Agreement, a key man is any natural person whose name is listed in Exhibit 19.2 hereto and any natural person so designated
by the Board of Directors (individually a “Key-Man” and collectively, the “Key-Men”). Subject to written approval of the New E Investors, the Board of Directors may also decide that the protection of the Company
attached to the qualification of a person as a Key Man is no longer required and, accordingly, may remove such person from qualification as a Key Man. Further, such qualification as a Key Man shall automatically terminate with respect to any Key Man
when the relevant Key Man shall cease to be employed by and to hold any office in the Company. 

  

	19.3.	As long as he shall be a Key Man, and for a period of 12 months from the earlier of (i) the termination of this Agreement for any reason (except if such
termination results from an IPO in which case only option (ii) shall be applicable) or (ii) the date on which he shall cease to be a Key Man (the “Date”), each Key Man undertakes vis-à-vis the Company and the
Investors, it being specified that this undertaking is key to the New E Investors’ decision to invest in the Company, not to: 

  

	 	(i)	occupy, to the extent permitted by applicable laws, in the European Union, Switzerland, North America or Asia, a position as director, manager, employee or consultant
in another company, as far as such position is directly involved in a business and/or development activity to provide silicon and/or software compliant with the WiMAX standard, or 

 

	 	(ii)	hold any shares carrying voting rights in the share capital of any company the activity of which is to provide silicon and/or software compliant with the WiMAX
stardard, with the exception of shareholdings in any public company representing at most 5% of its share capital held for personal asset management reasons exclusively, 

provided that, in consideration of said undertakings which shall last for 12 months, the Company shall pay to any concerned
Key Man, in one sole instalment, an amount equal to 50% of the relevant Key Man net salary over the preceding twelve (12) months within the Company excluding any bonus (the “Indemnity”), unless the Board of Directors releases
said Key Man from the undertakings set forth in this Article 19.3, before the expiration of the first month following the Date. 
  

	19.4	As long as he shall be a Key Man, and for a 12-month period from the earlier of (i) the end of this Agreement for any reason (except if the said end results
from an IPO in which case only option (ii) shall be applicable), or (ii) the Date, each Key Man further undertakes not to solicit or entice away from the Company any of its employees, officers, suppliers or clients, for any reason
whatsoever, whether directly or indirectly. 

  

	19.5.	Any Party adhering to the Agreement who is a Key Man will be bound by the provisions of this Article 19. The Parties further undertake to use their best
efforts to ensure that any new Key Man not a Party shall subscribe an exclusivity undertaking, a non-solicitation and a non-compete clause similar in substance to those set forth in Article 19.1 to Article 19.4 above.

  

	19.6.	The Parties – except the Corporate Investors - undertake to use their respective best efforts so that Company shall subscribe at its own costs within three
(3) months of the execution hereof with a reputable insurance company a life insurance policy with proceeds payable to the Company in relation to Mr. George Karam ensuring a minimum coverage of EUR 500,000, upon terms and conditions to be
approved by the Board of Directors. 

  
 31 

 Shareholders’ Agreement – Sequans E round 

 

	19.7.	The Company undertakes to procure and the Managing Founders shall do their best efforts so that the employment agreement of the engineers working for the Company
and/or its Subsidiaries include non-competition provisions similar to those provided for in Article 19.3(i) and (ii), and 19.4. 

Article 20 – Intellectual Property 
  

	20.1.	Subject to the provisions of Article 20.2 below and to the exceptions set forth under Exhibit 4.1.10 of the Investment Agreement, the Managing Founders
and the Company undertake to make best efforts to procure that the Company and its Subsidiaries shall have a valid right, whether through direct ownership or co-ownership or via a license under and to use (including make and sell) all intellectual
and industrial property rights including, in particular, with respect to software, drawings or designs, know-how, trademarks and brand names, which it uses in or are necessary to the ordinary course of its business or which shall be necessary to the
development of its business. 

  

	20.2.	In particular, the Company further shall procure that each employee of the Company and/or its Subsidiaries and each Key Man, with which the Company and/or its
Subsidiaries do business, shall subscribe an undertaking pursuant to which such employee or Key Man either (i) transfers to the Company and/or its Subsidiaries all of the intellectual property rights relating to his or its work within the
Company’s and/or its Subsidiaries’ object or (ii) if such transfer is not legally possible grants a perpetual, non-revocable, worldwide, exclusive, and royalty free license to the Company and its Subsidiaries of all necessary
intellectual property rights; it is understood that any patent registration resulting from the Company’s and/or its Subsidiaries operation shall be made in the name of the Company and/or its Subsidiaries. 

Article 21 – Other undertakings – ERISA - PFIC 
  

	21.1	The Parties hereby undertake to make their respective best efforts to (including but not limited to agreeing to the Transfer of their Shares), at the
Company’s sole expense, convert the Company into a company submitted to the laws of the United States of America by way of contribution of shares or any other conversion means, in such a manner that any preference right attached to the
Preferred Shares shall be exchanged for preferred shares presenting, under US laws, similar features as said Preferred Shares (including, but not limited to, liquidation preference, anti-dilution provisions, right to information and board
membership, weighted votes, etc.), as soon as practicable upon the approval by both the Board of Directors and the shareholders holding at least 75 % of the Shares of the principle that such conversion be in the best interest of the Company.

  

	21.2	ERISA 

  

	21.2.1	Each of the parties agree that whatever rights Kennet may have or acquire under this Agreement may be exercised by Kennet II acting through the Kennet II Manager or any
replacement manager approved by the Company (such approval not to be unreasonably withheld). 

  

	21.2.2	Insofar as Kennet is not represented at the Board of Directors of the Company by one Member, Kennet II – provided it still holds at least 5% of the Shares shall
have the right to appoint a representative to attend as an Observer at each and any meeting of the Board of Directors of the Company, and each and any committee of the Board. The appointment and removal of such a representative shall be by written
notice from Kennet II to the Company which shall take effect on delivery at the registered office of the Company or at any meeting of the Board or any committee thereof. 

  
 32 

 Shareholders’ Agreement – Sequans E round 

 

	21.2.3	Each of Kennet II and King Street acting through the Kennet II Manager, shall individually have the right to receive upon reasonable written request by such partnership
to the Company: 

  

	 	(a)	management accounts of the Company and its subsidiaries, including a balance sheet and profit and loss account; 

 

	 	(b)	on an annual basis, budgets and cash flow forecasts of the Company and its subsidiaries (to the extent reasonably available); and 

 

	 	(c)	such additional information as any of Kennet II and King Street may at any time reasonably request (including any information provided to the Kennet Member).

  

	21.2.4	Each of Kennet II and King Street acting through the Kennet II Manager, shall individually have the right to meet on a regular basis with such management personnel of
the Company as may reasonably be designated by the Company, upon reasonable notice to the Company, for the purpose of consulting with and advising management, obtaining information regarding the business and prospects of the Company or expressing
the views of Kennet II and King Street on such matters. 

  

	21.2.5	The Parties agree that if legal counsel for Kennet II reasonably concludes that the rights granted by this Article 21.2 should be altered to preserve the qualifications
of Kennet II as a VCOC, or otherwise to ensure that the assets of Kennet II are not considered “plan assets” of the ERISA Partners for the purposes of ERISA, the parties will agree amendments to this Agreement to effect such alterations
provided however that: 

  

	 	(a)	no such alteration is likely to result in an adverse effect on the operation, business or prospects of the Company or an increase in liability of any party hereto;

  

	 	(b)	the amendments are the minimum necessary to ensure that the qualifications of Kennet II as a VCOC are preserved; 

 

	 	(c)	the amendments do not result in the Investors having rights which are materially better than those currently set out in this Agreement; 

 

	 	(d)	the amendments shall not alter, whatsoever, the situation, rights and interest of the Founders and/or of the Existing Investors; and 

 

	 	(e)	the costs associated which effecting the amendments are borne by Kennet. 

  

	21.2.6	The rights of Kennet II referred to in this Article 21.2 and the other rights of Kennet under this Agreement (including without limitation the right to appoint the
Kennet) shall be exercised by Kennet II on its own behalf and on behalf of King Street. 

  

	21.2.7	ADD One will benefit from the same rights as those attributed to Kennet II in this Article 21.2. 

 

	21.3	PFIC 

  

	21.3.1	The Company acknowledges that certain investors in Kennet II may be US persons and that the US income tax consequences to those persons of the investment in the Company
by Kennet II hereunder will be significantly affected by whether the Company and/or any of the entities in which its owns an equity interest at any time is (a) a “passive foreign investment company” (within the meaning of
Section 1297 of the US Internal Revenue Code of 1986, as amended) (“a PFIC”) or (b) classified as a partnership or a branch for US federal income tax purposes. 

 

	21.3.2	 The Company agrees to obtain and provide Kennet II reasonably promptly upon their request any and all information reasonably necessary for Kennet II
and their US investors to determine (a) whether the Company and each of the entities in which the Company owns or proposes to acquire an equity interest (directly or indirectly) is or may become a PFIC (including whether any exception to PFIC
status may apply) or is or may be classified as a partnership or branch 

  
 33 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
for US federal income tax purposes, and (b) whether Kennet ll’s US investors should elect to treat the Company and/or any such entity as a “qualified electing fund” (within
the meaning of Section 1295 of the US Internal Revenue Code of 1986, as amended) for US federal income tax purposes. In addition, the Company shall take such actions, including making an election to be treated as a corporation or refraining
from making an election to be treated as a partnership, as may be required to ensure that at all times the Company is treated as a corporation for United States federal income tax purposes provided that: 

 

	 	(a)	no such actions are likely to result in an adverse effect on the operation, business or prospects of the Company or an increase in liability of any party hereto;

  

	 	(b)	the actions are the minimum necessary to ensure that the Company is treated as a corporation for United States federal income tax purposes; 

 

	 	(c)	the actions do not result in the Investors having rights which are materially better than those currently set out in this Agreement; 

 

	 	(d)	the amendments shall not alter, whatsoever, the situation, rights and interest of the Founders and/or the Existing Investors; and 

 

	 	(e)	the costs associated which effecting the actions are borne by Kennet. 

 After Completion, the Company shall use all reasonable endeavours to obtain the foregoing undertakings from each entity in which it proposes to acquire an equity interest (directly or indirectly) prior to
making any such acquisition. If the Company is unable to obtain such undertaking prior to the proposed acquisition, the Company will notify Kennet II in writing of such failure prior to making such acquisition. 

 

	21.3.3	Except to the extent that Kennet II specifies otherwise in writing, the Company shall provide to Kennet II within 60 days after the approval by the Shareholders of the
Company of the annual accounts of each financial year, a complete and accurate “PFIC Annual Information Statement”, in the form of Exhibit 21.3 hereto, for the Company and for each entity in which the Company owns an equity
interest at any time during such year, and further, shall provide Kennet II with access to such other Company information as may be reasonably requested by each for purposes of filing a “qualified electing fund” election in connection with
their purchase of the Company’s shares. 

  

	21.3.4	The Company shall not, without the written consent of Kennet II, which shall not be unreasonably withheld, issue stock to any investor if following such issuance, the
Company, in the determination of counsel or accountants for Kennet II, would be either a “Controlled Foreign Corporation” or a “Foreign Personal Holding Company” as defined in the U.S. Internal Revenue Code of 1986, as amended
(or any successor thereto) with respect to the stock held by Kennet II. 

  

	21.3.5	ADD One will benefit from the same rights as those attributed to Kennet II in this Article 21.3. 

 

	21.4	Corporate Investors shall be bound and benefit from the terms of this Article 21, subject to the following: 

 

	 	(i)	Corporate Investors’ obligations pursuant Article 21.1 shall be limited to voting in shareholders’ meetings or special security holders’ meetings in
favour of the actions described under Article 21.1; 

  

	 	(ii)	Article 21.2.5 paragraphs (c) and (d) shall also apply in favour of the Corporate Investors; 

 

	 	(iii)	Information provided for by article 21.2.3 shall be limited to that provided in (a) and (b) as long as the Corporate Investors are entitled to designate a
Corporate Observer pursuant to Article 4.2. 

 Article 22 – Notices 

 

	22.1.	 All notices and other communications required or authorized hereunder shall be in writing and validly made if either delivered via courier or
sent by registered letter (return receipt requested), e-mail or fax (provided that it be confirmed by same day registered letter, return 

  
 34 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
receipt requested or courier on expedited basis for notices sent across international boundaries, in case of an e-mail or fax) to the registered office or residence of the Party concerned as
specified in the above recitals. 

 Any change in address or representative for purposes hereof shall be
notified by the Party concerned to the other Parties as provided above. 
 Notwithstanding the foregoing, any notification to

  

	 	•	 	 Motorola Inc. shall be addressed to the attention of Mr. John O’Donohue and to the General Counsel, Motorola Inc., 1303 E. Algonquin Road,
Schaumburg, Illinois USA 60196 (fax: (1) 847-576-3628); 

  

	 	•	 	 Alcatel-Lucent Participations shall be addressed to the attention of Mr. Pierre Solal, Président Directeur Général of
Alcatel-Lucent Participations (with cc. to the Legal Department of this company) 

  

	 	•	 	 Gateway Net Trading PTE. Limited shall be addressed to the attention of Mr. Harshal J Shah, Reliance Technology Ventures Limited, Reliance Center,
19, Walchand Hirachand Marg, Ballard Estate, Mumbai 400 001, India (harshal.shah@relianceada.com) 

  

	22.2.	Notices and other communications delivered via courier shall be effective as of their date of delivery, as evidenced by the delivery receipt.

 Notices and other communications sent by registered mail, return receipt requested, shall be effective as of
their date of first presentation to the addressee. 
 Notices and other communications sent by e-mail or fax shall be deemed
effective as of the date thereof, provided that they be confirmed by same day registered letter, return receipt requested or courier on expedited basis for notices sent across international boundaries. 

Any notification to the Kennet shall be copied to the attention of Michael Elias, Kennet Venture Partners Ltd, 23 King Street, London SW1Y
6QY (fax: 020-7839-8485). 
 Article 23 – Applicable law and jurisdiction 

The Agreement shall be governed as to its validity, interpretation and performance by the laws of the Republic of France. 

Any dispute arising in connection with the Agreement and its Exhibits or as a result or consequence thereof not otherwise settled shall be subject to the
exclusive jurisdiction of the Tribunal de Commerce de Paris. 
 Each of the Parties to this Agreement hereby acknowledges that the
liability of the limited partners (if any) in the New E Investor for the purposes of this Agreement and otherwise is limited and notwithstanding this Article 23, shall be regulated in accordance with the law of the jurisdiction in which that
partnership is registered or otherwise constituted. 
 Article 24 – Miscellaneous provisions 

 

	24.1	 The Parties recognize having been informed that each of SGAM Al’s activity and Société Générale Group’s
banking activity are independent from each other. It is thus agreed that, in order to avoid any conflict of interests between Société Générale and the individuals’ accounts managed by SGAM Al, the management company
which represents the fund 

  
 35 

 Shareholders’ Agreement – Sequans E round 

 

	 	 
FCPI Soge Innovation 7, the Company undertakes to inform SGAM Al in writing of any business relations, which it could initiate or be aware of, between the Company and Société
Générale Group, which notably includes classic banking services (opening of accounts and bookkeeping) and credit arrangements. 

 The provisions of this Article 24.1 shall not prevent the implementation or enforcement of any other relevant provision of this Agreement. 

 

	24.2	The Parties agree that the provisions contained in the preamble and the exhibits form an integral part of the Agreement. 

 

	24.3	Except as otherwise expressly set forth herein, all references to a number of days shall be to calendar days. 

 

	24.4	Further, except as otherwise expressly set forth herein, all references to the Company’s share capital or voting rights shall be on a non-diluted basis.

  

	24.5	The Agreement replaces and supersedes any and all agreements previously entered into between some or all of the Parties with respect to the subject matter
hereof, including but not limited to (i) the term sheets of September 24, 2007, October 17, 2007 and November 12, 2007 and (ii) the D Round Shareholders’ Agreement of July 17, 2006 (as amended by the Deeds of
Adherences executed on November 17, 2006, December 1st, 2006). As a consequence, each Party hereby irrevocably waives any and all rights which it may have under any and all such previous agreements. 

 

	24.6	In the event any of the provisions hereof were held to be null or inapplicable, in any form and for any reason, the Parties undertake to consult each other to
remedy the cause of such nullity, so that, except where impossible, the Agreement remain in full force without disruption. 

  

	24.7	The Parties – except Corporate Investors - undertake to communicate, execute and deliver any information and any document, as well as to take any action or
decision which may be necessary to the performance of the Agreement. 

  

	24.8	The Parties hereby agree that any Party may require in justice for specific performance (execution forcée) against any defaulting Party and that
there exists no physical, legal nor moral obstacle that would prevent such specific performance (exécution forcée) to take place. 

 In addition to the foregoing, it is specified that Parties are not entitled to request specific performance against Corporate Investors, except in order to obtain a vote from such Corporate Investors in a
general – or a special - meeting of shareholders or have said Corporate Investors refrain from Transfering their Shares in contravention of this Agreement or the Investment Agreement or to compel them to Transfer their Shares as required under
this Agreement or the Investment Agreement, as the case may be and subject to the terms and conditions of this Agreement or the Investment Agreement. 
  

	24.9	The Parties acknowledge that Corporate Investors’ adhesion to this Agreement shall be subject to the following principles of interpretation:

  

	 	(i)	Corporate Investors will have no obligation, with regard to the application of the Agreement, (x) to conduct independent verification of the situation of other
Parties or third parties and/or (y) to enforce the terms of the Agreement or to ensure the compliance of other Parties or third parties. 

  

	 	(ii)	Corporate Investors’ obligations under this Agreement are several and in no case should be construed as joint (solidaires) with other Parties or third parties.

  

	24.10	The Agreement will benefit to and be binding on the heirs, legatees, assignees, and legal representatives of each of the Parties. 

  
 36 

 Shareholders’ Agreement – Sequans E round 

 

 Executed in La Défense, on January 31, 2008, 

in twenty six (26) original copies, 
 one
(1) copy being signed and initialed on each page for the Company, and twenty-five (25) copies being signed and bound by use of the “assembl’act’ device (one for each other Parties). Any party represented by virtue of a power
of attorney shall provide the Company with an original copy of such power of attorney, a copy of all powers of attorney being attached under Exhibit 0 thereto. 
  

					
	
 

	 		 	
 

	 By: Mr. Georges Karam 
	 		 	By: Mr. Bertrand Debray
	Acting on his	 		 	Rep. by G. Karam
			
	
 

	 		 	
 

	 By: Mr. Fabien Buda 
	 		 	By: Mr. Jerôme Bertorelle
	 Represented by : Georges Karam
	 		 	Represented by: Georges Karam
			
	
 

	 		 	
 

	 By: Mr. Ambroise Popper 
	 		 	By: Mr. Laurent Sibony
	 Represented by: Georges Karam
	 		 	Represented by: Georges Karam
	
 

	 		 	
	 By: Mr. Emmanuel Lemois
	 		 	
	 Represented by: Georges Karam
	 		 	
	
 

	 		 	
 

	 By. FCPR T-SOURCE 
	 		 	By. FCPI CAAM INNOVATION 6
	 Represented François-Renė Letourneur
	 		 	Represented By: François-Renė Letourneur

  
 37 

 Shareholders’ Agreement – Sequans E round 

 

					
	 [ILLEGIBLE]
	 		 	 [ILLEGIBLE]

	 By: CAP DECISIF SAS
	 		 	By: VISION CAPITAL III LP
	 Represented by: Olivier Dubuisson
	 		 	Represented by: Jean-Philippe Sala-Martin
			
	 [ILLEGIBLE]
	 		 	 [ILLEGIBLE]

	 By: ADD ONE L.P.
	 		 	By: ADD ONE GmbH & CO. K.G.
	 Represented by: Jean-Philippe Sala-Martin
	 		 	Represented by: Jean-Philippe Sala-Martin
	
 

	 		 	
 

	 By: FCPI SOGE INNOVATION 7
	 		 	By: FCPI GEN-l 2
	 Represented by: Xavier Lorphelin
	 		 	Represented by: Xavier Lorphelin
	
 

	 		 	
 

	 By: FCPI GEN-I
	 		 	By: FCPI SOGE INNOVATION EVOLUTION 3
	 Represented by: Xavier Lorphelin
	 		 	Represented by: Xavier Lorphelin
			
	 [ILLEGIBLE]
	 		 	 [ILLEGIBLE]

	 By: KENNET II L.P.
	 		 	By: KING STREET PARTNERS L.P.
	 acting by its manager KENNET CAPITAL
 MANAGEMENT (JERSEY) LIMITED, itself
 represented by: Jean-Philippe Sala-Martin
	 		 	 acting by its manager KENNET CAPITAL
 MANAGEMENT (JERSEY) LIMITED, itself
 represented by: Jean-Philippe Sala-Martin

	
 

	 		 	 [ILLEGIBLE]

	 By: Motorola Inc.
	 		 	By: ALCATEL-LUCENT PARTICIPATIONS
	 represented by: Bruce Tuch
	 		 	represented by: Jean-Philippe Sala-Martin

  
 38 

 Shareholders’ Agreement – Sequans E round 

 

					
		 		 	
 

		 		 	By: GATEWAY NET TRADING PTE. LIMITED
		 		 	 represented by: Nicolas von Bülow

			
	
 

	 		 	
 

	 By: Fonds de Co-lnvestissement Direct (FCID)
	 		 	By: SWISSCOM AG
	 acting by its manager CDC Entreprises

Represented by: Nadia Sarri
	 		 	 Represented by: Mr. Dominique Megret and
 Mr. Daniel Ritz,
 themselves represented by Frank Lipworth

			
	
 

	 		 	
 

	 By: HANTECH INTERNATIONAL VENTURE
	 		 	By: SEQUANS COMMUNICATIONS
	CAPITAL CORPORATION	 		 	Represented by: Georges Karam
	 acting by its manager H & Q Co. Ltd.
 Represented by: Nicolas von Bülow
	 		 	

  
 39

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