Document:

ex10-1.htm

 

 

Exhibit 10.1

 

DATED 15 MAY 2013

  

  

  

	
(1)

	
SPARROW HOLDINGS, L.P. 

  

	
(2)

	
COSTAMARE VENTURES INC.

  

  

  

FRAMEWORK DEED

  

  

  

  

		r e e d s m i t h .com

 

 

 

 

 

  

CONTENTS

CLAUSE

  

  

	
1.

	
INTERPRETATION

	
1

	
2.

	
SCOPE OF BUSINESS

	
8

	
3.

	
CAPITAL COMMITMENTS

	
9

	
4.

	
INVESTMENT PROCEDURE

	
11

	
5.

	
OPERATION AND GOVERNANCE OF EACH SPV

	
13

	
6.

	
APPOINTMENT OF AUDITORS

	
16

	
7.

	
EXCLUDED MATTERS

	
16

	
8.

	
SPLIT OF THE JV FLEET

	
18

	
9.

	
FINANCIAL MATTERS

	
20

	
10.

	
ACCOUNTING MATTERS

	
21

	
11.

	
BUDGET AND BUSINESS PLAN

	
22

	
12.

	
DISTRIBUTIONS

	
23

	
13.

	
TAXATION

	
25

	
14.

	
TRANSFER OF SHARES

	
25

	
15.

	
STRATEGIC TRANSACTION

	
26

	
16.

	
EXCLUSIVITY, NON-COMPETE AND NON-SOLICITATION

	
27

	
17.

	
CONFIDENTIALITY

	
28

	
18.

	
TERMINATION AND WINDING UP

	
29

	
19.

	
GUARANTEES, INDEMNITIES AND OTHER ASSURANCE

	
30

	
20.

	
REPRESENTATION AND WARRANTIES

	
32

	
21.

	
POWER OF ATTORNEY BY WAY OF SECURITY

	
33

	
22.

	
GENERAL

	
33

	
23.

	
ENTIRE AGREEMENT

	
34

	
24.

	
SEVERABILITY

	
35

	
25.

	
COUNTERPARTS

	
35

	
26.

	
WAIVER

	
35

	
27.

	
FURTHER ASSURANCE

	
35

	
28.

	
RIGHTS OF THIRD PARTIES

	
35

	
29.

	
COSTS AND EXPENSES

	
35

	
30.

	
NON ADVISORY

	
36

	
31.

	
SERVICE OF NOTICES

	
36

	
32.

	
GOVERNING LAW AND JURISDICTION

	
37

  

	SCHEDULE 1-LIST OF YORK FUNDS	40 
	SCHEDULE 2-FORM OF BUSINESS PLAN 	41 
	SCHEDULE 3- FORM OF BUDGET	42 
	SCHEDULE 4- EXAMPLE OF IRR CALCULATION 	43 

  

 

 

 

 

 

THIS DEED dated 15 May 2013

BETWEEN:

	
  

	
1)

	
SPARROW HOLDINGS, L.P., a limited partnership formed under the laws of the Cayman Islands (“York”);

	
  

	
2)

	
YORK CAPITAL MANAGEMENT GLOBAL ADVISORS LLC, a limited liability company incorporated under the laws of the State of New York (the “Fund Manager”), on behalf of itself and the York Funds (as such term is defined below);

	
  

	
3)

	
COSTAMARE INC., a corporation incorporated under the laws of the Republic of the Marshall Islands and, as of the date of this Agreement, listed in the New York Stock Exchange under the symbol “CMRE” (the “Parent”); and

	
  

	
4)

	
COSTAMARE VENTURES INC., a corporation incorporated under the laws of the Republic of the Marshall Islands (“Costamare”).

For the avoidance of any doubt, this Agreement shall apply to the Fund Manager and the Parent only where explicitly stated so herein.

BACKGROUND

	
(A)

	
The Parties (as such term is defined in clause 1) intend to engage in the business (the “Business”) of co-investing in one or more limited liability corporations formed in the Republic of the Marshall Islands (each an “SPV” and collectively the “SPVs”) that will each have the exclusive purpose of acquiring, maintaining, operating and disposing of an ocean-going vessel (whether in its construction phase or operational) that is intended to be used to transport containerized cargoes (each, a “Vessel” and collectively, the “Vessels”).

	
(B)

	
The Parties (as such term is defined in clause 1) intend that they will co-invest in Vessels by each subscribing for Shares (as defined in clause 1) for cash in an SPV. Each Vessel will be acquired and shall be owned by a newly and separately incorporated SPV.

	
(C)

	
This framework agreement, executed as a deed (the “Agreement”) sets out the terms pursuant to which the Parties (as such term is defined in clause 1) will pursue the Business and co-invest in the SPVs.

IT IS AGREED as follows:

 

	
1.

	
INTERPRETATION

 

Definitions

 

In this Agreement:

	 	
Action

	
has the meaning ascribed thereto in clause 1.1K;

 

	 	
Affiliate

	
means, in respect of a non-natural person, any person Controlling, Controlled by or under common Control with that person;

 

  

  

 

 

 

1

 

  

  

 

	 	
Board

	
has, in respect of an SPV, the meaning ascribed thereto in clause 5.2;

 

	 	
Budget

	
means, in respect of an SPV and/or its Vessel, the budget prepared by Costamare Shipping in relation to such SPV and/or Vessel in accordance with clause 11;

 

	 	
Business Day

	
means a day on which banks in the city of London (England), the city of New York (USA), and the city of Athens (Greece) are open for business generally;

 

	 	
Business Plan

	
means, in respect of an SPV and/or its Vessel, the business plan prepared by Costamare in relation to such SPV and/or Vessel in accordance with clause 11;

 

	 	
Commitment Period

	
means the period commencing on the Effective Date and ending on the earlier of:

 

(a)   the date that the Commitments have been drawn down in full in accordance with the terms of this Agreement and no return of capital is any longer due under clause 4.6; 

 

(b)   the date that this Agreement is terminated pursuant to clause 18; and

 

(c)   the date that the Commitments have been reduced to zero pursuant to clause 3.10, clause 3.11 or clause 3.12;

 

	 	
Commitments

	
means, together, the Costamare Commitment and the York Commitment and Commitment means either of them;

 

	 	
Control

	
means in relation to a non-natural person, the ability of any person directly or indirectly to:

 

- appoint and/or remove: (a) a majority of the board of directors; or (b) any other body or entity that by operation of law or otherwise is entitled to direct the activities, of such non-natural person (including a general partner or trustee);

 

- exercise, or direct the exercise of, more than 50% of the voting rights of that body corporate or firm; or

 

- direct or otherwise control its day to day affairs,

 

and Controlling and Controlled shall be construed accordingly;

 

	 	
Costamare Commitment

 

	
means the aggregate of the Costamare Phase 1 Commitment and the Costamare Phase 2 Commitment;

 

	 	
Costamare Director

	
means, in relation to an SPV, a director of such SPV appointed by the relevant Costamare Shareholder of such SPV;

 

 

 

  

  

 

2

 

  

  

 

 

	 	
Costamare Option

	
has the meaning ascribed thereto in clause 3.6;

 

	 	
Costamare Option Notice

 

	
has the meaning ascribed thereto in clause 3.7;

 

	 	
Costamare Phase 1 Commitment

	
a minimum of US$50,000,000 and, subject to Costamare exercising its Costamare Option in respect of all SPVs created during Phase 1, a maximum of US$144,117,647.0588 (and for the avoidance of doubt, shall exclude any amount under the Costamare Phase 2 Commitment);

 

	 	
Costamare Phase 2 Commitment

	
a minimum of US$ 25,000,000 and, subject to Costamare exercising its Costamare Option in respect of all SPVs created during Phase 2, a maximum of US$96,078,431.3725 (and for the avoidance of doubt, shall exclude any amount under the Costamare Phase 1 Commitment);

 

	 	
Costamare Shareholder

	
means, in relation to an SPV, Costamare or any wholly-owned direct subsidiary of Costamare which Costamare elects by notice to York to be the shareholder of such SPV;

 

	 	
Costamare Shareholder Shares

 

	
means, in relation to an SPV, shares of all classes in the capital of such SPV created or in issue for the time being and registered in the name of the relevant Costamare Shareholder.

	 	
Costamare Shipping

	
means Costamare Shipping Co. S.A. of Panama City, Republic of Panama;

 

	 	
Costamare Split Right

 

	
has the meaning ascribed thereto in clause 8;

 

	 	
Deemed Sale

	
has the meaning ascribed thereto in clause 8.6;

 

	 	
Default Interest Rate

	
means 20 per cent, calculated on a daily basis and compounded quarterly;

 

	 	
Director

	
means, in relation to an SPV, a York Director or a Costamare Director of such SPV and Directors shall be construed accordingly;

 

	 	
Effective Date

	
means the later of:

 

(a)    the date of this Agreement; and

 

(b)    the date all conditions precedent set out in clause 21.7 have been satisfied.

 

	 	
Excluded Matters

	
means, together, the matters set out in clause 7;

 

	 	
Fund Manager

	
includes its successors in title;

 

 

 

  

  

 

3

 

  

  

 

 

	 	
Group

	
means, in relation to any person that is a non-natural person, that person and its Affiliates, and member of a Group shall be construed accordingly;

 

	 	
Investment Notice

	
means, in relation to an SPV, a written notice issued by the Board or, as the case may be, a Director of such SPV to the Shareholders of such SPV to contribute or procure the contribution of capital to such SPV;

 

	 	
Investment Opportunity

 

	
has the meaning ascribed thereto in clause 2.1;

 

	 	
IRR or Internal Rate of Return

	
means, at any relevant time in respect of a York Shareholder, the annualized internal rate of return in respect of such Shareholder’s Commitment actually invested at the time in accordance with this Agreement, calculated using the then most current version of Microsoft Excel software’s “XIRR” function (which for purposes of clarity shall be net of costs, fees and expenses, if any) computed from the dates of such Shareholder making such investment until the dates of such distributions in respect thereof under clause 12.3, which annualised internal rate when applied to the relevant cash flow streams produces a net present value equal to zero. For the avoidance of doubt, such calculations shall be made following the example set out in Schedule 4;

 

	 	
JV Fleet

	
means, at any relevant time, all Vessels which are owned by any SPV at that time;

 

	 	
LCIA Rules

	
means the rules of the London Court of International Arbitration;

 

	 	
Losses

	
has the meaning ascribed thereto in clause 1.1K

 

	 	
Management Agreement

	
means, in respect of an SPV and its Vessel, each agreement to be entered into by such SPV with the relevant Manager in respect of such Vessel in the agreed form and, if more than one for a Vessel, Management Agreements shall mean, together, both or all of them;

 

	 	
Manager

	
means, in respect of an SPV and its Vessel, Costamare Shipping and/or, if so directed by Costamare in accordance with clause 4.2E, V.Ships Greece Ltd. or, such other manager as shall be appointed by such SPV from time to time;

 

	 	
Manager Matters

	
means, in relation to an SPV and any relevant Management Agreement, the matters set out in such Management Agreement for the relevant Manager to decide in accordance with the terms of such Management Agreement;

 

	 	
Newbuild Vessel

	
a Vessel that is newly constructed and is acquired or ordered by an SPV prior to or simultaneously with completion of its construction;

 

	 	
Other Relevant Vessels

	
has the meaning ascribed thereto in clause 7.2;

 

 

 

  

  

 

4

 

  

  

 

 

	 	
Parent

	
includes its successors in title;

 

	 	
Party

	
means Costamare or York and “Parties” means, together, both of them;

 

	 	
Phase 1

	
has the meaning ascribed thereto in clause 2.4;

 

	 	
Phase 2

	
has the meaning ascribed thereto in clause 2.4;

 

	 	
Phases

	
means, together, Phase 1 and Phase 2 and Phase means either of them;

 

	 	
Public Offering

	
means an offering of securities to the public;

 

	 	
Relevant Sale

	
has the meaning ascribed thereto in clause 7.1;

 

	 	
Relevant Shares

	
has the meaning ascribed thereto in clause 7.2A;

 

	 	
Relevant Vessel

	
has the meaning ascribed thereto in clause 7.1;

 

	 	
Remaining Vessels

	
has the meaning ascribed thereto in clause 8.3B;

 

	 	
Replacement Value Period

 

	
has the meaning ascribed thereto in clause 7.1;

 

	 	
Sale Notice

	
has the meaning ascribed thereto in clause 7.1;

 

	 	
Sale Notice Period

	
has the meaning ascribed thereto in clause 7.1;

 

	 	
Service Providers

	
means such persons as may be appointed to act as service providers to an SPV;

 

	 	
Shares

	
means, in relation to an SPV, the York Shareholder Shares and the Costamare Shareholder Shares in such SPV;

 

	 	
Shareholders

	
means, in relation to an SPV, the York Shareholder and the Costamare Shareholder of such SPV for the time being and Shareholder, in relation to an SPV, shall mean either of them;

 

	 	
Shareholders’ Agreement

	
means, in relation to an SPV, the shareholders’ agreement to be entered into between the relevant Shareholders and, where the York Shareholder in not York or the Costamare Shareholder is not Costamare, York and/or Costamare, respectively, as guarantors;

 

 

 

  

  

 

5

 

  

  

 

 

	 	
Sister Vessel and Sister Vessels

 

	
have each the meaning ascribed thereto in clause 8.3A;

 

	 	
Sixth Anniversary

	
means the date falling six years after the Effective Date;

 

	 	
Split Proposal

	
has the meaning ascribed thereto in clause 8.2;

 

	 	
subsidiary

	
means a subsidiary undertaking (as defined in section 1162 of the Companies Act 2006) or a subsidiary (as defined in section 1159 of the Companies Act 2006);

 

	 	
Supervision Agreement

 

	
means, in respect of a Newbuild Vessel, a supervision agreement in the agreed form;

 

	 	
Strategic Transaction

	
means a Public Offering, a Trade Sale or other transaction agreed between the Parties whereby the Shareholders are able, directly or indirectly, to realise all or a majority of their investment in the Business;

 

	 	
Trade Sale

	
a sale of the Vessels or the Business to a buyer whether by means of an asset sale or the sale of the Shares of the SPVs or a combination thereof, in each case agreed by the relevant Shareholders unanimously;

 

	 	
Unallocated Sister Vessel

 

	
has the meaning ascribed thereto in clause 8.3A;

 

	 	
US GAAP

	
means generally accepted accounting principles in the United States of America;

 

	 	
York Commitment

	
means the aggregate of the York Phase 1 Commitment and the York Phase 2 Commitment;

 

	 	
York Director

	
means, in relation to an SPV, a director of such SPV appointed by York the relevant York Shareholder of such SPV;

 

	 	
York Funds

	
means together the investment funds managed or advised by the Fund Manager or one of its Affiliates and being detailed in Schedule 1, as amended from time to time;

 

	 	
York Phase 1 Commitment

 

	
US$150,000,000 (and for the avoidance of doubt, shall exclude any amount under the York Phase 2 Commitment);

 

	 	
York Phase 2 Commitment

 

	
US$100,000,000 (and for the avoidance of doubt, shall exclude any amount under the York Phase 1 Commitment);

 

	 	
York Shareholder

	
means, in relation to an SPV, York and/or a wholly owned direct subsidiary thereof; and

 

 

 

  

 

6

 

  

 

	 	
York Shareholder Shares

	
means, in relation to an SPV, shares of all classes in the capital of such SPV created or in issue for the time being and registered in the name of the relevant York Shareholder.

 

Interpretation

 

In this Agreement:

	
  

	
1.1

	
a reference to:

	
  

	
A.

	
a statute or statutory provision includes a reference to:

	
  

	
(i)

	
that statute or provision as amended, re-enacted, replaced or modified from time to time; and

	
  

	
(ii)

	
any order, statutory instrument, regulation or other subordinate legislation made from time to time under the relevant statute;

	
  

	
B.

	
“writing” is a reference to any mode of representing or reproducing words in a visible, non-transitory form (and includes a reference to e-mail or other mode of representing or reproducing words in electronic form);

	
  

	
C.

	
an agreement or obligation for a Party to “procure” any action or inaction of another person under this Agreement shall be construed as an agreement or obligation for such Party to exercise its voting rights, discretions and other powers in respect of its interest in that other person or otherwise under this Agreement, and the agreement pursuant to which that Party or its Affiliate is appointed in such manner so as to procure (insofar as possible) such action or inaction (as the case may be);

	
  

	
D.

	
a person shall include any natural person, legal person or other entity (whether or not having a legal personality) and a reference to a non-natural person is a reference to any person (as so defined) other than an individual;

	
  

	
E.

	
a “change of Control” shall occur if a person who Controls any company or undertaking ceases to do so, or if another person acquires Control of it;

	
  

	
F.

	
the singular includes the plural and vice versa;

	
  

	
G.

	
the masculine includes the feminine and vice versa;

	
  

	
H.

	
a clause or a Schedule is a reference to a clause of or a schedule to this Agreement;

	
  

	
I.

	
any phrase introduced by the terms ‘including’ or ‘in particular’, or any similar expression, shall be construed as illustrative and not limiting of any preceding words; and

	
  

	
J.

	
a month means a calendar month, a quarter means a calendar quarter and a year means a calendar year;

 

 

  

  

 

7

 

 

	
  

	
K.

	
indemnify any person against any circumstance shall mean indemnifying it and each of its Affiliates and keeping it and each of its Affiliates harmless, on an after-tax basis, from all Actions made against it or any of its Affiliates and all Losses suffered or incurred by it or any of its Affiliates as a consequence of that circumstance, and Action shall include any action, proceedings, claim, demand and other legal recourse brought against the party to whom such indemnity is given (the indemnified party) in respect of the subject matter in relation to which such indemnity is given and Losses shall include any liability, damage, loss, compensation, award, cost, expense, charge, fine, penalty and outgoing suffered or incurred by the indemnified party in respect thereof;

	
  

	
L.

	
“agreed form” means:

	
  

	
(i)

	
where a document has already been executed by all of the relevant parties, such document in its executed form;

	
  

	
(ii)

	
prior to the execution of a document, the form of such document separately agreed in writing between the Parties as the form in which that document is to be executed;

	
  

	
1.2

	
headings are used for convenience only and shall not affect the interpretation of this Agreement; and

	
  

	
1.3

	
each of the Schedules forms part of this Agreement.

  

	
2.

	
SCOPE OF BUSINESS

  

	
  

	
2.1

	
Costamare hereby undertakes during the Commitment Period to procure that Costamare Shipping shall present to York any opportunities for the acquisition of Vessels or shares in companies that own Vessels that Costamare Shipping has identified during such period (each an “Investment Opportunity” and together the “Investment Opportunities”).

	
  

	
2.2

	
The acquisition of a Vessel and, if relevant, the incorporation of the relevant SPV for all transactions that will be governed by this Agreement shall require the unanimous approval in writing of both Parties.

	
  

	
2.3

	
The business of each SPV shall be to acquire, maintain, operate, and/or dispose of a single Vessel with the objective of maximising the value of the relevant Shareholders’ investment in such SPV.

	
  

	
2.4

	
The Parties will invest in the Business in two phases. “Phase 1” shall commence upon the Effective Date and shall terminate on the earlier of (i) the last day of the Commitment Period and (ii) the date that the Costamare Phase 1 Commitment and the York Phase 1 Commitment have been advanced in full to the relevant SPVs after taking into account the provisions of clause 4.6. “Phase 2” shall commence upon the date that the Costamare Phase 1 Commitment and the York Phase 1 Commitment have been advanced in full (after taking into account the provisions of clause 4.6) and shall terminate on the last day of the Commitment Period.

 

 

8

 

 

  

	
3.

	
CAPITAL COMMITMENTS   

  

	
  

	
3.1

	
York agrees to invest up to the York Phase 1 Commitment during Phase 1 and up to the York Phase 2 Commitment during Phase 2, in accordance with the terms of this Agreement.

	
  

	
3.2

	
Costamare agrees to invest up to the Costamare Phase 1 Commitment during Phase 1 and up to the Costamare Phase 2 Commitment during Phase 2, in accordance with the terms of this Agreement, provided always that, if at the time a Phase ends Costamare still has time available to it to exercise a Costamare Option in relation to an SPV incorporated in connection with such Phase, Costamare shall continue to be entitled to invest in such SPV after such Phase ends such part of its relevant Commitment as is required for the purpose of exercising such Costamare Option and for us long as Costamare has time to exercise such Costamare Option.

	
  

	
3.3

	
Costamare and York will capitalize and own the SPVs directly or through wholly-owned direct subsidiaries, always in accordance with the terms of this Agreement. In the event that a York Shareholder of an SPV is a subsidiary of York, then York will be a party to the Shareholders’ Agreement of such SPV so as to guarantee the performance of such subsidiary under such Shareholders’ Agreement. In the event that a Costamare Shareholder of an SPV is a subsidiary of Costamare, then Costamare will be a party to the Shareholders’ Agreement of such SPV so as to guarantee the performance of such subsidiary under such Shareholders’ Agreement.

	
  

	
3.4

	
Subject to clauses 3.6 to 3.8, in relation to an SPV agreed to be incorporated in relation to Phase 1:

	
  

	
A.

	
York will, or will procure that another York Shareholder will, subscribe for Shares in such SPV representing in aggregate seventy-five percent (75%) of the equity required for the purchase of the Vessel to be acquired by such SPV; and

	
  

	
B.

	
Costamare will, or will procure that another Costamare Shareholder will, subscribe for Shares in such SPV representing the remaining twenty-five percent (25%) of the equity required for the purchase of such Vessel.

	
  

	
3.5

	
Subject to clauses 3.6 to 3.8, in relation to an SPV agreed to be incorporated in relation to Phase 2:

	
  

	
A.

	
York will, or will procure that another York Shareholder will, subscribe for Shares in such SPV representing in aggregate eighty percent (80%) of the equity required for the purchase of the Vessel to be acquired by such SPV; and

	
  

	
B.

	
Costamare will, or will procure that another Costamare Shareholder will, subscribe for Shares in such SPV representing the remaining twenty percent (20%) of the equity required for the purchase of such Vessel.

	
  

	
3.6

	
Costamare may at its sole discretion decide to increase the relevant Costamare Shareholder’s percentage participation in the Shares of an SPV up to a maximum percentage of forty-nine percent (49%) of the equity required for the purchase of the Vessel to be acquired by such SPV (the “Costamare Option”) by serving notice on York in accordance with clause 3.7.

 

 

 

9

 

 

 

	
  

	
3.7

	
Each time that Costamare wishes to exercise a Costamare Option under clause 3.6, Costamare shall send written notice to York specifying the exact percentage of Shares to which it wishes to increase the relevant Costamare Shareholder’s ownership of the respective SPV (the “Costamare Option Notice”). A Costamare Option Notice shall be transmitted:

	
  

	
A.

	
in the case of an SPV acquiring a Newbuild Vessel, within three (3) months from the date the SPV enters into a shipbuilding contract or, as the case may be, a memorandum of agreement for the acquisition of such Newbuild Vessel;

	
  

	
B.

	
in the case of an SPV acquiring a Vessel other than a Newbuild Vessel, within one (1) month from the date the SPV enters into the memorandum of agreement to acquire such Vessel.

In each case, Costamare shall procure that the relevant Costamare Shareholder shall complete the purchase of the relevant Shares within fifteen (15) Business Days of delivery of the relevant Costamare Option Notice. For the avoidance of doubt, no more than one Costamare Option Notice may be delivered with respect to each SPV.

	
  

	
3.8

	
In the event that Costamare exercises a Costamare Option in respect of an SPV:

	
  

	
A.

	
prior to the relevant Shareholders having subscribed for and been issued with Shares in such SPV in accordance with clauses 3.4 or 3.5, the Board of that SPV shall adjust the Shareholders’ respective capital contributions in the Investment Notice for that SPV so as to take into account the exercise of the Costamare Option for such SPV;

	
  

	
B.

	
after the relevant Shareholders having subscribed for and been issued with Shares in such SPV in accordance with clauses 3.4 or 3.5, then Costamare shall procure that the relevant Costamare Shareholder shall purchase, and York shall procure that the relevant York Shareholder shall sell, such number of the York Shareholder Shares in such SPV as required for such Costamare Shareholder to meet its respective percentage specified in the Costamare Option Notice, and at a purchase price equal to the relevant York Shareholder’s purchase price of the corresponding York Shareholder Shares.

	
  

	
3.9

	
Unless otherwise agreed between the Parties, all subscriptions for Shares in an SPV shall be in cash and each Shareholder of an SPV shall subscribe at the same price per Share for such SPV.

	
  

	
3.10

	
The Commitments (in respect of which no Investment Notice has been served on or before the relevant time (unless served and then revoked by agreement between the Parties)) shall be reduced to zero automatically if any of the following events occur:

	
  

	
A.

	
if no acquisition or binding commitment for an acquisition of a Vessel has been made, on the first anniversary of the Effective Date, unless extended to the second anniversary of the Effective Date with the agreement of both Parties; or

  

  

 

10

 

 

	
  

	
B.

	
on the second anniversary of the Effective Date unless extended up to the third anniversary of the Effective Date with the agreement of both Parties.

	
  

	
3.11

	
The Commitments shall be reduced to zero, if York serves notice to this effect on Costamare within ten (10) Business Days of York becoming aware that:

	
  

	
A.

	
Costamare Shipping has been subject to a change of Control;

	
  

	
B.

	
Mr. Konstantinos Konstantakopoulos ceases to be involved in the day to day operational activities of Costamare for a period exceeding 120 consecutive days; or

	
  

	
C.

	
it has the right to terminate this Agreement pursuant to clause 18.3.

	
  

	
3.12

	
The Commitments shall be reduced to zero, if Costamare serves notice to this effect on York within ten (10) Business Days of Costamare becoming aware that:

	
  

	
A.

	
the York Funds (either any one of them or all of them together) no longer own all the interests in York; or

	
  

	
B.

	
it has the right to terminate this Agreement pursuant to clause 18.3.

	
  

	
3.13

	
Subject always to clauses 3.11 and 3.12, to the extent that in relation to an Investment Opportunity which has been approved in accordance with this Agreement any part of the acquisition price of the Vessel relating to such Investment Opportunity remains outstanding at the end of the Commitment Period, then, notwithstanding the end of the Commitment Period, the relevant Commitments required to be invested for the purposes of such Investment Opportunity shall be available for investment even after the end of the Commitment Period for as long as it is needed for the relevant Investment Opportunity to be completed.

 

	
4.

	
INVESTMENT PROCEDURE

  

	
 

 

	
4.1

	
Within five (5) Business Days of presentation of an Investment Opportunity and the related Business Plan by Costamare, York will notify Costamare in writing if (i) it approves of the relevant Investment Opportunity and the relevant Business Plan, in which case the remaining of this clause 4 shall apply or (ii) it rejects the relevant Investment Opportunity and/or the relevant Business Plan, in which case clauses 16.4 and 16.5 shall apply (but for the purposes of clause 16.4, it shall be deemed that the five (5) Business Days period provided therein has lapsed when York rejects the relevant Investment Opportunity under this clause 4.1).

	
  

	
4.2

	
Within three (3) Business Days of approval of an Investment Opportunity and any Business Plan by York as set out in clause 4.1, the Parties shall promptly name the Shareholders to incorporate the SPV to implement the relevant Investment Opportunity and procure that such Shareholders shall:

	
  

	
A.

	
proceed with the incorporation of the relevant SPV;

	
  

	
B.

	
appoint in relation to such SPV a Board in accordance with the provisions of clause 5;

 

 

 

11

 

 

	
  

	
C.

	
enter into a Shareholders’ Agreement;

	
  

	
D.

	
procure that the relevant SPV’s constitutional documents reflect, to the extent permitted by law, the provisions of such Shareholders’ Agreement;

	
  

	
E.

	
procure that the relevant SPV enters into a Management Agreement with Costamare Shipping and/or, if directed by Costamare in writing, V.Ships Greece Ltd.; and

	
  

	
F.

	
if a Newbuild Vessel is to be acquired, procure that the relevant SPV enters into a Supervision Agreement with Costamare Shipping,

Provided however that any of the actions set out above may be omitted in respect of an Investment Opportunity to the extent any such action has been completed in connection with a previous non-finalised Investment Opportunity.

	
  

	
4.3

	
As soon as possible after the matters set out in clause 4.2 being implemented, (a) the Board of the relevant SPV shall procure that such SPV enters into a definitive agreement with the relevant counterparty in connection with the relevant Investment Opportunity in respect of which such SPV has been incorporated and (b) the Shareholders of such SPV or, as the context may require, the Board of such SPV shall prepare and/or obtain and/or provide any other documentation required for the execution of such Investment Opportunity as set out in its Business Plan.

	
  

	
4.4

	
Within three (3) Business Days of the relevant definitive agreement being entered into by an SPV in accordance with clause 4.3, the Board of such SPV or, failing that, any Director of such SPV, shall issue such SPV’s first Investment Notice setting out the capital contribution of the relevant Shareholders and the timing of such contribution. The Parties agree that:

	
  

	
A.

	
once the relevant SPV has been incorporated to acquire a Vessel:

	
  

	
(i)

	
the first Investment Notice issued in respect of such SPV shall:

	
  

	
(1)

	
be for the full amount of the first instalment of the acquisition price of such Vessel as set out in the Business Plan for such Vessel and which is not at the time of the relevant Investment Notice to be funded by funds other than the relevant Shareholders’ equity under this Agreement; and

	
  

	
(2)

	
require that the relevant contributions are paid to such SPV not later than five (5) Business Days after the relevant notice is delivered to the Parties;

	
  

	
(ii)

	
any subsequent Investment Notices in respect of such SPV shall:

	
  

	
(1)

	
be for the full amount of the instalment of the acquisition price of such Vessel then due and for which no other Investment Notice has been issued and which is not at the time of relevant Investment Notice to be funded by funds other than the relevant Shareholders’ equity under this Agreement; and

 

  

 

12

 

 

 

	
  

	
(2)

	
require that the relevant contributions are paid to such SPV not later than two (2) Business Days after the relevant notice is delivered to the Parties;

	
  

	
B.

	
in all other cases, any Investment Notice shall be issued by the relevant Board only and shall be in an amount and for a timing as such Board may unanimously agree; and

	
  

	
C.

	
upon an Investment Notice being issued, the Parties shall procure that the relevant Shareholders shall capitalize the relevant SPV in a proportion pro rata to their respective Commitments for that SPV at the relevant time and the relevant Phase in accordance with the terms of this Agreement and the applicable Shareholders’ Agreement.

	
  

	
4.5

	
In the event that a Shareholder fails to satisfy its required capital contribution pursuant to an Investment Notice (the “Non-Participating Shareholder”), within ten (10) Business Days of such failure, the other relevant Shareholder shall have the right, at its sole discretion and without prejudice to any rights it may have in respect of the Non-Participating Shareholder’s failure to perform its obligations in respect of the relevant SPV:

	
  

	
A.

	
to advance the corresponding amount in debt to the SPV, such advance to be subject to:

	
  

	
(i)

	
carrying interest at the Default Interest Rate;

	
  

	
(ii)

	
ranking ahead of any other Shareholder of such SPV or unsecured debt of such SPV; and

	
  

	
(iii)

	
being repaid prior to any distributions being made to the Shareholders of such SPV in accordance with the terms of this Agreement and the relevant Shareholders’ Agreement; or

	
  

	
B.

	
to terminate this Agreement in accordance with clause 18.3B; or

	
  

	
C.

	
to do nothing in relation to such failure.

	
  

	
4.6

	
Any capital contribution made to an SPV that has called for a Vessel acquisition and is not invested on or prior to thirty (30) days from the date of such capital contribution shall be returned to the relevant Shareholders within three (3) Business Days thereafter, unless the said Shareholders agree otherwise in writing. Any capital returned to the Shareholders in accordance with this clause, shall be added to the undrawn Commitments and shall not be distributed pursuant to clause 12.3.

  

	
5.

	
OPERATION AND GOVERNANCE OF EACH SPV 

  

	
  

	
5.1

	
An SPV will have no employees, other than the crew employed on its Vessel.

	
  

	
5.2

	
Each SPV shall have a five (5) person Board of Directors (in respect of such SPV, the “Board”), made up of three York Directors and two Costamare Directors.

 

  

 

13

 

 

	
  

	
5.3

	
The relevant York Shareholder shall have the right to appoint and maintain in office in each SPV, three York Directors.

	
  

	
5.4

	
The relevant Costamare Shareholder shall have the right to appoint and maintain in office in each SPV, two Costamare Directors.

	
  

	
5.5

	
Each of the Shareholders of an SPV shall procure that, at all times during the continuance of this Agreement, there shall be appointed by it and maintained in office as Directors the number of Directors set out in clauses 5.3 and 5.4 respectively. Each Shareholder of an SPV agrees not to appoint a Director under this clause 5 without the other Shareholder’s prior consent, unless the York Director to be appointed is an employee of the Fund Manager or the Costamare Director to be appointed is an employee of Costamare or the Manager. Save with the written consent of each of the Shareholders of an SPV, no Director of an SPV shall be appointed otherwise than pursuant to clause 5.3 or clause 5.4.

	
  

	
5.6

	
Each Shareholder of an SPV shall have the right to remove any Director of an SPV appointed by it and appoint another Director in his place. Any such appointment or removal shall be effected by giving notice in writing (signed by a director or the secretary of the Shareholder lodging the notice) to the secretary of the SPV at its registered office or at a Board meeting, and shall take effect (subject to any contrary intention expressed in the notice) when the notice is so delivered.

	
  

	
5.7

	
If a York Shareholder removes a York Director from his office, the York Shareholder shall be responsible for and shall indemnify the relevant Costamare Shareholder and the relevant SPV against any claim by such Director arising out of such removal, whether for unfair or wrongful dismissal or otherwise. The same provision shall apply, mutatis mutandis, if a Costamare Shareholder shall remove a Director appointed by it.

	
  

	
5.8

	
The Board of each SPV shall procure that such SPV obtains a market-standard Directors’ and Officers’ insurance policy that would cover all members of the Board of such SPV for their entire time in office.

	
  

	
5.9

	
The members of the Board of an SPV shall not be entitled to any remuneration in their capacity as Directors of such SPV or to any travel or other out-of-pocket expenses.

	
  

	
5.10

	
The Chairman of the Board shall be appointed by the York Directors (and, for the avoidance of doubt, shall be a York Director), but shall not have a second or casting vote.

	
  

	
5.11

	
A quorum of the Board of an SPV shall consist of two Directors, at least one of whom shall be a York Director of such SPV and at least one of whom shall be a Costamare Director of such SPV.

	
  

	
5.12

	
Board meetings shall be held at least once every quarter and may be attended via telephone. At least ten (10) Business Days’ written notice of a Board meeting of an SPV shall be given to each Director of such SPV, provided that a Board meeting of an SPV may be convened by giving not less than 48 hours’ notice if the interests of such SPV would be likely to be adversely affected to a material extent if the business to be transacted at such Board meeting were not dealt with as a matter of urgency, or on less than 48 hours’ notice if all Directors of the said SPV agree. An agenda identifying in reasonable detail the issues to be considered by the Directors of the relevant SPV at any such meeting (and copies of any relevant papers to be discussed at the meeting) shall be distributed in advance of the meeting to all such Directors not less than two (2) Business days prior to the date fixed for such meeting.

  

  

 

14

 

 

	
  

	
5.13

	
Any Director may call a meeting of the Board on which he holds office with reasonable advance notice.

	
  

	
5.14

	
The Board of each SPV shall have the sole authority to manage such SPV, except that all Manager Matters in respect of such SPV shall remain the responsibility of and at the discretion of the relevant Manager during its appointment, in accordance with the terms of the relevant Management Agreement relating to such SPV.

	
  

	
5.15

	
Except for decisions concerning Excluded Matters and Manager Matters, the Board of an SPV shall unanimously decide on all issues governing the affairs of such SPV. Only the Excluded Matters in connection with an SPV shall require a simple majority vote of its Board. The Manager Matters relating to an SPV shall be decided by the relevant Manager and not the Board of such SPV.

	
  

	
5.16

	
With respect to each SPV, the Parties shall or, if applicable, shall procure that each Shareholder of such SPV shall use all reasonable endeavours to procure that its respective appointees to the Board of such SPV shall ensure (to the extent that they are able) that the said SPV operates in compliance with:

	
  

	
A.

	
its Business Plan;

	
  

	
B.

	
its Budget;

	
  

	
C.

	
its Articles of Incorporation and by-laws;

	
  

	
D.

	
the relevant Management Agreement or, if applicable, Management Agreements;

	
  

	
E.

	
its Supervision Agreement, if any;

	
  

	
F.

	
its Shareholders’ Agreement; and

	
  

	
G.

	
this Agreement.

	
  

	
5.17

	
The Shareholders of an SPV shall use all reasonable endeavours to ensure that their respective appointees as Directors shall attend each Board meeting of such SPV and to procure that a quorum (in accordance with the provisions of this Agreement and the relevant Shareholders’ Agreement) is present throughout each such meeting.

	
  

	
5.18

	
In the event that a Director is of the opinion that there is a conflict between his fiduciary duties to the relevant SPV and his role as an appointed Director of a Shareholder of such SPV in voting on any particular matter being considered by the Board of such SPV, he may require that such matter is instead determined by the Shareholders of such SPV either in writing or at a meeting of the said Shareholders. In such circumstances the Directors of such SPV shall not be required to vote on that particular matter and shall await the determination of the Shareholders of such SPV, provided however that in respect of any Excluded Matter, the Shareholders of such SPV shall be voting in accordance with the same voting requirements applicable herein for such Excluded Matter.

  

  

 

15

 

 

	
  

	
5.19

	
For the avoidance of doubt, the foregoing provisions of this clause 5 shall apply equally to each SPV, as if references to the Board, to a Board meeting, to a York Director and to a Costamare Director were references to the board of directors of such SPV, to a meeting of such board, to a director of such SPV appointed by the relevant York Shareholder and to a director of such SPV appointed by the relevant Costamare Shareholder respectively.

	
  

	
5.20

	
The Parties will procure that the provisions of this Agreement are contained in the Shareholders’ Agreement for each SPV.

	
6.

	
APPOINTMENT OF AUDITORS

 

	
  

	
6.1

	
The Parties shall procure that each SPV shall appoint as its auditors Ernst & Young, Greece, but not any of its partners which is at the time of appointment acting for the Parent and its subsidiaries.

	
  

	
6.2

	
The Parties shall procure that all SPVs appoint the same auditor.

  

	
7.

	
EXCLUDED MATTERS

	
  

	
7.1

	
The following matters shall be deemed Excluded Matters and decided upon a simple majority of the Board of the relevant SPV:

	
  

	
A.

	
the sale of its Vessel to an independent third party at arm’s length terms, provided always that the period for Costamare exercising the Costamare Option or, as the case may be, the Costamare Split Right, for such SPV has expired, and that the following procedure is applied in the order set out below prior to any such decision being resolved:

	
  

	
(i)

	
first, upon the relevant York Shareholder’s transmittal of written notice (the “Sale Notice”) to the relevant Costamare Shareholder of its intent to demand that the Board of the relevant SPV procures the sale (the “Relevant Sale”) of its Vessel (the “Relevant Vessel”), the relevant Costamare Shareholder shall have five (5) Business Days to accept or reject the Sale Notice (the “Sale Notice Period”);

	
  

	
(ii)

	
second, if the relevant Costamare Shareholder rejects the Sale Notice or the Sale Notice Period lapses without response, then the Shareholders of the relevant SPV and, if applicable, the Parties shall work together for fifteen (15) Business Days following the earlier of the rejection of the Sale Notice and the end of the Sale Notice Period (the “Replacement Value Period”) to determine, to the extent possible and taking into account the parameters set forth in clause 7.2, the number of York Shareholder Shares in one or more of the remaining SPVs to be transferred to the relevant Costamare Shareholder (the “Relevant Shares”) in exchange for its Shares in such SPV; and

 

  

 

16

 

 

	
  

	
(iii)

	
third, if the Replacement Value Period lapses without the relevant Shareholders and, if applicable, the Parties agreeing the Relevant Shares in accordance with clause 7.1A(ii), then the Costamare Split Right under clause 8.1C shall be deemed as having been exercised by Costamare on the last day of the Replacement Value Period (without any action required on the part of Costamare), unless the Parties agree otherwise in writing;

	
  

	
B.

	
the termination of its Management Agreement in accordance with its terms for cause (as such term is defined in the Management Agreement); and

	
  

	
C.

	
the liquidation, dissolution or winding up of the affairs of such SPV in connection with the sale of its Vessel in accordance with clause 7.1A.

	
  

	
7.2

	
For purposes of determining the Relevant Shares, the Shareholders of the relevant SPV and, if applicable, the Parties will:

	
  

	
A.

	
attempt to allocate to the relevant Costamare Shareholder in the order set out below:

	
  

	
(i)

	
first, York Shareholder Shares in any SPVs owning Sister Vessels to the Relevant Vessel; and

	
  

	
(ii)

	
second, if there are no more York Shareholder Shares in SPVs owning Sister Vessels to allocate as per paragraph (i) above, York Shareholder Shares in any other SPVs;

	
  

	
B.

	
take into account, among other things:

	
  

	
(i)

	
the market value of the Relevant Vessel and of any other Vessel owned by an SPV the Shares of which form part of the Relevant Shares (the “Other Relevant Vessels”), in each case as determined by a valuation obtained by an independent and reputable third-party ship valuer jointly appointed by the Parties (each such valuation to take into account the value of any charter or other employment agreement of the relevant Vessel in excess of twelve months at the time such valuation is obtained (without taking into account any options of the charterer of the Relevant Vessel to extend contained therein));

	
  

	
(ii)

	
the counterparty risk of the charterer of the Relevant Vessel and of the Other Relevant Vessels; and

	
  

	
(iii)

	
the liabilities and/or any other assets of all relevant SPVs.

	
  

	
7.3

	
If the Costamare Split Right has been exercised pursuant to clause 7.1A(iii) or otherwise, the Board of an SPV shall not be entitled to resolve upon a simple majority for the sale of its Vessel.

	
  

	
7.4

	
If the Shareholders of the relevant SPV and, if applicable, the Parties agree the Relevant Shares in connection with a Relevant Sale, such Relevant Sale shall not take place prior to all steps necessary for such Relevant Shares to be transferred to the relevant Costamare Shareholder or as Costamare may otherwise direct have been completed.

 

  

 

17

 

 

	
  

	
7.5

	
The Parties will procure that the provisions of clauses 7.1, 7.2, 7.3, and 7.4 are contained in the Shareholders Agreement for each SPV.

	
8.

	
SPLIT OF THE JV FLEET

	
  

	
8.1

	
Notwithstanding clause 7.1, the Parties agree that:

	
  

	
A.

	
at any time that Costamare has the right to terminate this Agreement pursuant to clause 16.2;

	
  

	
B.

	
on the Sixth Anniversary;

	
  

	
C.

	
at any time that a Replacement Value Period lapses without the Shareholders of the relevant SPV and, if applicable, the Parties, reaching agreement on the Relevant Shares in respect of a Relevant Sale; or

	
  

	
D.

	
at any time that Costamare has the right to terminate this Agreement pursuant to clause 18.3,

Costamare will have ten (10) Business Days from:

	
  

	
(i)

	
in the case of clause 8.1A, the right under clause 16.2 accruing;

	
  

	
(ii)

	
in the case of clause 8.1B, the Sixth Anniversary;

	
  

	
(iii)

	
in the case of clause 8.1C, the last day of the relevant Replacement Value Period;

	
  

	
(iv)

	
in the case of clause 8.1D and in the event clause 18.3A applies, becoming aware of the right to terminate under clause 18.3A;

	
  

	
(v)

	
in the case of clause 8.1D and in the event clause 18.3B applies, the right under clause 18.3B accruing; or

	
  

	
(vi)

	
in the case of clause 8.1D and in the event clause 18.3C applies, the right under clause 18.3C accruing,

to elect to divide the JV Fleet in accordance with clauses 8.2 and 8.3 (the “Costamare Split Right”). For the avoidance of any doubt, in the event clause 7.1A(iii) is triggered, the Costamare Split Right shall be deemed as having been exercised by Costamare on the last day of the Replacement Value Period (without any action required on the part of Costamare and without the need for the ten (10) Business Days provided for in this clause to elapse). Also, for the avoidance of doubt, each Party shall be taking 100 percent ownership of its allocated SPV/Vessel after the allocation steps described in clause 8.3.

	
  

	
8.2

	
Costamare shall have forty five (45) days from the date it exercises the Costamare Split Right within which to prepare a proposal for consideration by York, specifying the value of each parcel and of each Vessel in such parcel (on terms consistent with clause 7.2B) (the “Split Proposal”). If Costamare fails to deliver to York the Split Proposal within such period, then the Board of each SPV shall be entitled to resolve the sale of its Vessel to an unrelated third party and on arm’s length terms, upon simple majority and without any further delay. Following delivery of the Split Proposal by Costamare to York, York shall then have forty five (45) days within which to respond to Costamare’s proposal and, in the case of clause 8.3B, choose a parcel. If York fails within such period to:

  

  

 

18

 

 

  

	
  

	
A.

	
respond in respect of Costamare’s allocation pursuant to clause 8.3A, York shall be deemed to have accepted such allocation; and

	
  

	
B.

	
choose a parcel under clause 8.3B within the above period Costamare may choose which parcel York is to receive.

	
  

	
8.3

	
In preparing the Split Proposal, Costamare shall apply the following procedure:

	
  

	
A.

	
First, with respect to vessels of same characteristics (i.e., vessels of same type, same year of construction, and with similar nature of charter and charterer) (together the “Sister Vessels” and each a “Sister Vessel”), Costamare will propose a split of such Sister Vessels in two parcels, each parcel to be prepared on the basis of the relevant Shareholders’ relevant cumulative percentage of shareholding in the SPVs owning the Sister Vessels to be split pursuant to this clause. To the extent that any Sister Vessel cannot be allocated in full as per this clause 8.3A to a parcel (such Sister Vessel, shall be referred to as the “Unallocated Sister Vessel”), the relevant Shareholders’ shareholding in the relevant SPV shall not be taken into account in deciding the split of the Sister Vessels under this clause 8.3 and Costamare shall include the Unallocated Sister Vessel in the parcels to be prepared in accordance with the principles set out in clause 8.3B.

	
  

	
B.

	
Second, with respect to any Vessels that are not Sister Vessels or are an Unallocated Sister Vessel (together the “Remaining Vessels”), Costamare shall divide them in two parcels as most nearly reflect a fifty percent share of the Remaining Vessels at the time, both in terms of value and type of Vessel and nature of charter and charterer.

	
  

	
8.4

	
To the extent that the value of the relevant percentage shareholding of the York Shareholders (the “York Shareholding”) or the Costamare Shareholders (the “Costamare Shareholding”), respectively, in the Remaining Vessels at the time (as if all SPVs owning Remaining Vessels at the time were held by a holding company and the Shareholders of each SPV were holding their share in the SPVs through such holding) is in excess of the value of the parcel that such Shareholders (the “reduced Shareholders”) are to receive pursuant to this clause 8.3B (the “excess value”), the other Shareholders (the “increased Shareholders”) shall in their sole discretion:

	
  

	
(i)

	
either pay to the reduced Shareholders an additional cash consideration in United States Dollars equal to the excess value (the “Cash Balancing Payment”); or

	
  

	
(ii)

	
satisfy the Cash Balancing Payment in kind by transferring to the reduced Shareholders ownership of a Vessel or Vessels of value equal to the Cash Balancing Payment and verified by an independent ship valuer appointed jointly by the Parties (the “In-Kind Balancing Payment”), provided however that any such transfer to effect an In-Kind Balancing Payment shall not result in the reduced Shareholder owning less than 100% of any Vessel or any Vessel-owning entity; or

  

  

 

19

 

 

	
  

	
(iii)

	
satisfy the Cash Balancing Payment partly in cash and party by an In-Kind Balancing Payment (the “Mixed Balancing Payment”, and together with the Cash Balancing Payment and the In-Kind Balancing Payment, the “Balancing Payments” and each a “Balancing Payment”), provided however that any Mixed Balancing Payment shall not result in the reduced Shareholder owning less than 100% of any Vessel or any Vessel-owning entity.

	
  

	
8.5

	
In the event that there is to be a split of the JV Fleet at the time in accordance with clause 8.1, then the Parties will promptly upon (and in any event within thirty days of) determination of which parcel each Party is to receive under clauses 8.1 and 8.3, procure that the relevant Shareholders complete such Share transfers as are required to ensure that after such transfers each Party or its nominees owns one hundred percent (100%) of the SPVs of the Vessels allocated to it and any Balancing Payments required under clause 8.4 shall be made.

	
  

	
8.6

	
Following the exercise by Costamare of the Costamare Split Right under clause 8.1, the Costamare Shareholders shall continue to be entitled to receive distributions pursuant to clause 12.3 attributed to the Costamare Incentive Allocations from the SPVs of the Vessels which have been allocated to York pursuant to this clause 8, always up to the Costamare Shareholding and until the earlier of (i) the sale to an unrelated third party on arm’s length terms of the last of the Vessels which have been allocated to York pursuant to this clause 8 and (ii) the Sixth Anniversary. If York sells a Vessel it has been allocated in accordance with the terms of this clause 8 prior to the Sixth Anniversary, the value of such Vessel for the purpose of calculating the Parties’ entitlements to distributions pursuant to clause 12.3 will be the purchase price provided for such Vessel in the relevant sale contract. To the extent that York fails to sell a Vessel it has been allocated in accordance with the terms of this clause 8 by the Sixth Anniversary, such Vessel shall be deemed as being sold to a third party on the Sixth Anniversary (a “Deemed Sale”) and the value of such Vessel for the purpose of calculating the Parties’ entitlements to distributions pursuant to clause 12.3 in respect of a Deemed Sale shall be the market value of such Vessel on the Sixth Anniversary as determined by an independent ship valuer (on terms consistent with clause 7.2B(i)) appointed jointly by the Parties for such purpose at the time.

	
  

	
8.7

	
Subject always to this Agreement being terminated pursuant to clause 18.2B, in the event that following the exercise of a Costamare Split Right, more Vessels are acquired by SPVs under this Agreement (such Vessels, the “post split Vessels”), the provisions of clauses 8.1, 8.2, 8.3, 8.4, 8.5 and 8.6 shall continue to apply for any such post split Vessels.

	
9.

	
FINANCIAL MATTERS

 

	
  

	
9.1

	
The Parties agree that an SPV, in addition to the proceeds of the subscriptions for Shares referred to in clause 3, shall use reasonable endeavours to obtain finance by way of commercial borrowing from third parties on an arm’s length basis for working capital, acquisition of Vessel or other purposes, in accordance with its Business Plan or Budget.

  

  

 

20

 

 

	
  

	
9.2

	
No Shareholder shall pledge, charge, create a mortgage or otherwise encumber its Shares in an SPV (other than pursuant to a floating charge granted over its entire assets and undertaking).

	
  

	
9.3

	
No Shareholder shall enter into any derivative arrangements pursuant to which it transfers some or all of the economic rights attaching to its Shares in an SPV or is required to make payments calculated by reference to the returns generated by the economic rights attaching to its Shares in an SPV.

	
  

	
9.4

	
The Parties will procure that the provisions of this clause 9 are contained in the Shareholders’ Agreement for each SPV.

 

	
10.

	
ACCOUNTING MATTERS

	
  

	
10.1

	
The Parties shall procure that each SPV shall at all times maintain accurate and complete accounting and other financial records in accordance with the requirements of all applicable laws and US GAAP.

	
  

	
10.2

	
In addition to the information required by clause 11.4, the Board shall procure that each SPV shall prepare and deliver (or cause to be prepared and delivered) to its respective Shareholders:

	
  

	
A.

	
unaudited financial statements of that SPV in respect of each quarter, without accompanying notes, in a format agreed by the relevant Shareholders within 60 days of the end of the quarter in question;

	
  

	
B.

	
a monthly cash flow statement in a form agreed by the relevant Shareholders within 15 days of the end of the month in question;

	
  

	
C.

	
audited financial statements of that SPV in respect of each fiscal year within 120 days of the end of such fiscal year; and

	
  

	
D.

	
such other information in relation to the financial position and affairs of that SPV as each Shareholder may from time to time reasonably require.

	
  

	
10.3

	
Each SPV shall have a financial year ending on 31 December.

	
  

	
10.4

	
Each Shareholder of an SPV and its authorised representatives shall be allowed access at all reasonable times to examine the books and records of such SPV.

	
  

	
10.5

	
Each Shareholders of an SPV shall have the right to arrange or conduct an audit or review of any financial information relating to such SPV (at such Shareholder’s own cost) at any time during the course of a financial year.

	
  

	
10.6

	
The Parties will procure that the provisions of this clause 10 are contained in the Shareholders’ Agreement for each SPV.

  

  

 

21

 

 

	
11.

	
BUDGET AND BUSINESS PLAN

	
  

	
11.1

	
Each time an Investment Opportunity is presented pursuant to clause 2.1, Costamare shall also prepare a Business Plan in relation to such Investment Opportunity in the form set out in Schedule 2 and deliver the same to York in accordance with the provisions of clause 4.1.

	
  

	
11.2

	
Once an SPV has been incorporated and a Vessel has been acquired, Costamare shall procure that the relevant Manager prepares a Budget for each financial year in relation to such SPV and its Vessel (starting from the calendar year the relevant Vessel is acquired) in the form set out in Schedule 3. The first Budget of an SPV shall be submitted to the Board of such SPV no later than the commencement of operations of the Vessel of such SPV, and shall require approval by way of a unanimous vote of the relevant Board. Each subsequent Budget of an SPV shall be submitted not later than 60 days before the commencement of the financial year for which the relevant Budget has been prepared for and shall also require approval by way of unanimous vote of the relevant Board.

	
  

	
11.3

	
Costamare shall also procure that the relevant Manager prepares when necessary a variance report on the then current Budget of the relevant SPV (indicating the actual current position of such SPV (accepting that such information is not prepared to an audit standard) in relation to each line item of such Budget) on a quarterly basis during each financial year. Any such variance report shall be submitted to the Board of such SPV as soon as it is available. Within 14 days of receipt of the relevant variance report, any Director shall be entitled to request such further information as may reasonably be required to enable him or her to reach an informed view as to the content, reasonableness and prudence of the variance report in question.

	
  

	
11.4

	
The Board of each SPV will regularly review the Budget for such SPV during the course of the financial year of such SPV. Each Board may propose changes to the Budget relevant to it during the course of the relevant financial year, any such changes shall require approval by way of a unanimous vote of the relevant Board. The Parties agree that the relevant Manager may revise the Budget of a Vessel at any time, provided that Costamare furnishes to the Board of the relevant SPV a revised Budget for such Vessel, as soon as practicable after the relevant revisions are determined by the relevant Manager.

	
  

	
11.5

	
The provisions of clause 30 shall be deemed incorporated mutatis mutandis in any Business Plan or Budget delivered under this Agreement and the person preparing any such Business Plan or Budget shall bear no responsibility whatsoever to any SPV, their respective Shareholders, the Parties or otherwise.

 

 

 

22

 

 

 

	
12.

	
DISTRIBUTIONS

 

	
  

	
12.1

	
Unless otherwise determined by unanimous consent of the Board of an SPV, upon the sale or total loss of its Vessel the relevant SPV shall declare and pay a cash dividend to its Shareholders as soon as reasonably practicable, and in any event within thirty (30) days after receipt of the relevant sale or insurance proceeds, equal to the maximum amount permitted by law after the Board deducts from the said proceeds all actual and contingent liabilities of such SPV at the time. Any other income of an SPV, net of reasonable reserves to be established by a unanimous decision of the Board, will be distributed to its Shareholders on the basis of such Shareholders’ agreement regarding dividend policy at the time of incorporating such SPV.

	
  

	
12.2

	
The Parties will establish a committee consisting of one appointee by each Party that will supervise any distribution of dividends or any other payments by an SPV to its Shareholders (the “Distributions Committee”). For purposes of calculating such distributions, the Distributions Committee will aggregate the financial results of all SPVs and will maintain an aggregate IRR calculation for the entire Business and all SPVs.

	
  

	
12.3

	
For all purposes, distributions from all SPVs will be aggregated and distributions will be made as follows:

	
  

	
A.

	
First, one hundred percent (100%) to the Shareholders on a pro rata basis until they have received an amount equal to their total drawn down and invested Commitments;

	
  

	
B.

	
Second, one hundred percent (100%) to the Shareholders on a pro rata basis until they have received a return equal to ten percent (10%) Internal Rate of Return (the “First Preferred Return”) on their total drawn down and invested Commitments;

	
  

	
C.

	
Third, with respect to any distributions after the First Preferred Return has been met and up to the Shareholders receiving a return equal to fifteen percent (15%) Internal Rate of Return on their total drawn down and invested Commitments (the “Second Preferred Return”), ninety percent (90%) to all the Shareholders on a pro rata basis and ten percent (10%) to the Costamare Shareholders (the “Costamare First Step Incentive Allocation”) on a pro rata basis;

	
  

	
D.

	
Fourth, with respect to any distributions after the Second Preferred Return has been met and up to the Shareholders receiving a return equal to twenty percent (20%) Internal Rate of Return on their total drawn down and invested Commitments (the “Third Preferred Return”), eighty-two and a half percent (82.5%) to all the Shareholders on a pro rata basis and seventeen and a half percent (17.5%) to the Costamare Shareholders (the “Costamare Second Step Incentive Allocation”) on a pro rata basis;

	
  

	
E.

	
Fifth, with respect to any distributions after the Third Preferred Return has been met and up to the Shareholders receiving a thirty-five percent (35%) Internal Rate of Return on their total drawn down and invested Commitments (the “Fourth Preferred Return”), eighty percent (80%) to all the Shareholders on a pro rata basis and twenty percent (20%) to the Costamare Shareholders (the “Costamare Third Step Incentive Allocation”) on a pro rata basis; and

 

  

 

23

 

 

	
  

	
F.

	
Finally, with respect to any distributions after the Fourth Preferred Return has been met (the “Fifth Preferred Return”; and, together with the Second Preferred Return, the Third Preferred Return and the Fourth Preferred Return, the “Preferred Returns”), seventy percent (70%) to all the Shareholders on a pro rata basis and thirty percent (30%) to the Costamare Shareholders (the “Costamare Fourth Step Incentive Allocation”, and together with the Costamare First Step Incentive Allocation, Costamare Second Step Incentive Allocation, and Costamare Third Step Incentive Allocation, the “Costamare Incentive Allocations”) on a pro rata basis.

	
  

	
12.4

	
The Parties will procure that the Shareholders and Directors of each SPV will take all necessary steps to ensure that the Costamare Incentive Allocations are properly allocated to the relevant Costamare Shareholders and that distributions to the relevant Costamare Shareholders in respect of the Costamare Incentive Allocations are paid simultaneously with any distributions paid to Shareholders in respect of their Preferred Returns.

	
  

	
12.5

	
Except as otherwise expressly provided herein, without the unanimous approval of the Board of an SPV, no distribution shall be made in any form other than cash prior to the dissolution of such SPV.

	
  

	
12.6

	
In the event that a Strategic Transaction is consummated, the net proceeds of such Strategic Transaction, after payment of all reasonable and documented fees and expenses incurred in connection with it, shall be distributed pursuant to clause 12.3. When the Strategic Transaction is a Public Offering and the York Shareholders do not receive cash for some or all of their Shares, the remaining shares held by the York Shareholders (or their substitutes pursuant to clause 15.2) shall be treated as being realised at the average of the closing price of such shares on the primary exchange on which they are listed for the ten trading days following such listing and a distribution under clause 12.3 in respect of all the shares held by the Shareholders (or any of their substitutes pursuant to clause 15.2) in the listed entity shall be deemed to accrue in addition to any cash that the York Shareholders may have received due to such Public Offering. To the extent that a payment attributed to the Costamare Incentive Allocations (the “Payment”) is due to the Costamare Shareholders under clause 12.3 after such Public Offering and any deemed realisation, then York and/or the York Shareholders shall make a “fraction” of such Payment in cash and the remainder of such Payment shall be made in shares of the listed entity immediately after the end of the ten trading days following such listing whereupon York and/or the York Shareholders shall deliver to Costamare or to its order such number of shares as their value equals such remainder. The Parties agree to procure that the Parties and all Shareholders at the time shall take whatever steps are required for the provisions of this clause 12.6 to be given full effect. For the purposes of this clause “fraction” shall mean a fraction having as numerator the number of shares sold by the York Shareholders in the relevant Public Offering and a denominator equal to the shares held by the York Shareholders immediately prior to such Public Offering being consummated.

	
  

	
12.7

	
Each time the Costamare Split Right is exercised pursuant to clause 8.1, the provisions of clause 8.6 shall apply as regards any payments to be made to the relevant Shareholders under clause 12.3, including any payments attributed to the Costamare Incentive Allocations, and such payments shall be made, as applicable, either at the time of the sale of a Vessel or at the time of the Deemed Sale of a Vessel.

  

  

 

24

 

 

	
  

	
12.8

	
On an annual basis following the termination of the Commitment Period, as well upon completion of a Strategic Transaction or termination of this Agreement, the Parties shall determine whether on an aggregate basis taking into account all amounts realised and distributed, they have received the correct amounts pursuant to clause 12.3, including with respect to any amounts owed to Costamare Shareholders pursuant to the Costamare Incentive Allocations, and if there has been any overpayment the Shareholders receiving such overpayment shall make such payments to the other Shareholders, as are required to ensure that after receipt of such payments each Shareholder has on an aggregate basis received the amounts it should have received under clause 12.3.

	
  

	
12.9

	
Notwithstanding anything to the contrary contained herein but always subject to clauses 12.7 and 12.8, no Distribution shall be made if, after giving effect to the Distribution, (i) the relevant SPV would not be able to pay its debts as they become due in the usual course of business; or (ii) such Distribution is otherwise contrary to applicable law.

 

	
13.

	
TAXATION

 

	
  

	
13.1

	
The Parties agree that each SPV shall be incorporated in the Republic of the Marshall Islands for so long as they may lawfully do so, subject to contrary tax advice.

	
  

	
13.2

	
The Board of each SPV shall procure that, to the extent possible, the auditors appointed pursuant to clause 6.1 shall be instructed for and on behalf of each SPV to (i) determine whether such SPV shall be treated as a “passive foreign investment company” for purposes of the United States Internal Revenue Code of 1986, as amended (the “Code”) and (ii) facilitate a Shareholder in seeking to make and maintain a valid qualified electing fund election (within the meaning of Section 1295 of the Code) for such SPV characterised as a passive foreign investment company (within the meaning of Section 1297 of the Code).

	
  

	
13.3

	
The Parties agree that, to the extent requested by any Shareholder, the Board of each SPV shall make on behalf of the SPV a protective “check-the-box” election to classify the SPV as a corporation for U.S. tax purposes.

 

	
14.

	
TRANSFER OF SHARES

 

	
  

	
14.1

	
Save as permitted by this clause, no Shareholder shall sell, transfer, or otherwise dispose of any Share, or any interest in any Share (including any voting right attached to it), enter into any agreement in respect of the votes attaching to any Share or enter into any agreement, conditional or otherwise, to do any of the foregoing. The SPV shall procure that the Board declines to approve for registration any transfer of Shares which does not comply with the provisions of this clause 14.

	
  

	
14.2

	
Subject always to clause 14.3, a Shareholder (the “Transferor”) may sell, transfer or otherwise dispose of any of its Shares:

	
  

	
A.

	
to an Affiliate of the Transferor (subject to clauses 14.4 and 14.5); or

  

  

 

25

 

 

	
  

	
B.

	
to any person with the written consent of the other Shareholder.

	
  

	
14.3

	
It shall be a condition of any allotment, issue or transfer of a Share in an SPV or any interest therein to a person who is not a party to this Agreement that such person (the “Transferee”) shall duly adhere to and become a party to the Shareholder Agreement of such SPV (as a Shareholder of such SPV) by executing a deed of adherence to the Shareholder Agreement, and the relevant SPV shall not register the Transferee or otherwise admit such Transferee as a Shareholder of such SPV unless and until such deed of adherence has been so executed by the Transferee to the reasonable satisfaction of the Parties to this Agreement.

	
  

	
14.4

	
Where a Shareholder (the “Original Shareholder”) has transferred Shares to an Affiliate pursuant to clause 14.2A, such Affiliate shall, if it ceases to be an Affiliate of the Original Shareholder, be obliged, as soon as practicable and in any case within five (5) Business Days after such cessation, to transfer its Shares in the SPV back to the Original Shareholder (or, if the Original Shareholder so notifies the SPV, to any continuing Affiliate of such Original Shareholder). As security for such obligation, each Affiliate which becomes a Shareholder irrevocably appoints the SPV (which accepts such appointment) as its attorney to execute any such transfer on its behalf (whether as transferor or transferee) at such consideration as the relevant Original Shareholder shall notify to the relevant SPV. In order that such SPV is able to monitor whether any obligations arise in relation to this clause 14.4, each Affiliate which has become a Shareholder shall notify the relevant SPV and the other Shareholders of such SPV forthwith if it ceases to be an Affiliate of the Original Shareholder or if its Transferee ceases to be an Affiliate of it, and the relevant Original Shareholder shall each provide the SPV and other Shareholders with such evidence as may be reasonably required to ensure that no obligations have arisen in relation to it pursuant to this clause 14.4.

	
  

	
14.5

	
Where an Affiliate has acquired Shares pursuant to a transfer (or subsequent transfer or a series of transfers) under clause 14.2A, the relevant Shareholder of whom the Transferee is an Affiliate shall remain liable for the performance by such Affiliate of its obligations under this Agreement and/or the relevant Shareholders’ Agreement, in the event that such Affiliate fails to perform any of them, as if such failure were its own.

	
  

	
14.6

	
Clause 14 shall not apply to any procedure pursuant to clause 8.

	
  

	
14.7

	
The Parties will procure that the provisions of this clause 14 are contained in the Shareholders’ Agreement of each SPV.

 

	
15.

	
STRATEGIC TRANSACTION

 

	
 

 

 

	
15.1

	
In connection with any proposed Strategic Transaction and to the extent necessary to facilitate such Strategic Transaction, the Parties may mutually agree to: (1) form a corporation (the assets of which would consist of interests in the SPVs) or amend this Agreement to provide for a conversion in accordance with the relevant laws of the SPVs to a corporation or such other capital structure as the Parties may determine; (2) distribute equity interests in the resulting company to the relevant Shareholders at the time in percentage interests consistent with such Shareholders’ respective interests in the SPVs; (3) form a subsidiary holding company and distribute its shares to the Parties; (4) move the SPVs or any successors to another jurisdiction to facilitate any of the foregoing; or (5) take such other steps as the Parties deem necessary to create a suitable vehicle for a Strategic Transaction, in each such case in accordance with the relevant laws of the SPVs, and in each case for the express purpose of a Strategic Transaction.

  

  

 

26

 

 

 

	
  

	
15.2

	
If the Parties undertake Strategic Transaction pursuant to clause 15.1, the Parties shall take such actions as may be reasonably required and otherwise cooperate in good faith with the relevant Shareholders and the Boards of the SPVs in connection with consummating the Strategic Transaction and to take any other actions required in order to effectuate the Strategic Transaction.

	
  

	
15.3

	
For the avoidance of doubt, no Strategic Transaction can be pursued unless the Parties and the relevant Shareholders at the time agree in writing that such Strategic Transaction may be pursued.

 

	
16.

	
EXCLUSIVITY, NON-COMPETE AND NON-SOLICITATION

 

	
  

	
16.1

	
The Parties’ relationship with respect to the Business will be on an exclusive basis during the Commitment Period and neither York and the York Shareholders nor Costamare and the Costamare Shareholders will be permitted to acquire Vessels in the container industry, whether directly or indirectly, with any other partner or co-investor during the Commitment Period, provided however, that nothing in this Agreement shall be interpreted to preclude the Parties from investing in non-controlling equity stakes of other container shipping companies (unless such investment is done in the form of arrangements of the nature described in the Background Section of this Agreement) or in the debt of other container shipping companies. No Party shall be in breach of this clause where it acquires an interest in a Vessel or relevant SPV upon enforcement of security or in satisfaction of a judgment.

 

	
  

	
16.2

	
If during this Agreement and in connection with its equity investment in a container shipping company (the “Investee”), York or the Fund Manager or their respective Affiliates or employees or officers is to become a member of the Investee’s board of directors, York will provide notice thereof to Costamare. If Costamare objects to such board membership and York nevertheless informs Costamare in writing that it intends for such person to join the Investee’s board, Costamare will have a period of up to two (2) weeks following such notification from York to terminate this Agreement. York will not be in breach of this clause merely by York or the Fund Manager exercising non-voting observer rights in respect of board meetings.

	
  

	
16.3

	
Notwithstanding anything in this Agreement, the Parties agree that after the Effective Date and until the end of the Commitment Period, neither Party will acquire a Vessel without first making it available, in accordance with the terms of this Agreement, for acquisition by the Business (the Party presenting such Vessel for acquisition, the “Offering Party” and the other Party, the “Non-Offering Party”).

	
  

	
16.4

	
The exercise of this right of first refusal shall be at the Non-Offering Party’s sole and absolute discretion. The Non-Offering Party shall exercise this right within five (5) Business Days, failing which such right will expire (and if the Offering Party acquires the Vessel prior to the expiry of the five (5) Business Day Period, it shall be deemed to have given the Non-Offering Party the option to have an SPV acquire the relevant Vessel for the Business on the same terms (including as to price) as the Offering Party, which shall be exercised within the same five (5) Business Day Period). In the event that the Non-Offering Party does not exercise its right of first refusal, the Offering Party shall be permitted to acquire the Vessel, provided however, that such acquisition is on terms no more favourable to the Offering Party than those offered to the Business.

 

  

 

27

 

 

	
  

	
16.5

	
Either Party to this Agreement shall retain the right to purchase any Vessel that the other Party has previously rejected under this Agreement upon the same terms as were rejected (including as to price), provided however that in the event that York is the purchaser of such Vessel, Costamare will agree to provide management services for that Vessel on materially the same terms as any relevant Management Agreement, should York elect to engage Costamare for such services.

	
  

	
16.6

	
During the term of the Agreement Costamare will, where it wishes to charter a vessel of the same type as a Vessel that is available for charter by the Business, provide the Business with an indicative arm’s length charter bid on prevailing market terms, and, unless York objects within five (5) Business Days, the Vessel shall be chartered to Costamare on such terms. Costamare shall provide York with such information as it may reasonably require to verify that the terms of the charter are arm’s length market terms.

	
  

	
16.7

	
All promises and obligations of a Party under this clause 16 shall equally apply to the Parent and the Fund Manager (for itself and on behalf of the York Funds), respectively, as if they are direct promises and obligations of the Parent and the Fund Manager and/or the York Funds, respectively.

	
  

	
16.8

	
The Parties will procure that the provisions of this clause 16 are contained in the Shareholders’ Agreement of each SPV.

 

	
17.

	
CONFIDENTIALITY

 

	
  

	
17.1

	
Each Party shall keep and treat as strictly confidential and not at any time disclose or make known in any way to any person who is not a Party, or use for a purpose other than the performance of its obligations under this Agreement, any information which it now possesses or which may come within its knowledge during the term of this Agreement, in relation to or connected with or arising out of this Agreement or the matters contained in it, the existence of this Agreement or the business, activities or affairs of any other Party (together “Confidential Information”) or, through any failure to exercise all due care, cause any unauthorised disclosure of any Confidential Information and will make every effort to prevent the use or disclosure of such information, except that these restrictions do not apply to the disclosure of Confidential Information if and to the extent that:

	
  

	
A.

	
disclosure is required by law or for the purpose of any judicial proceedings or requested by any regulatory authority, government body or recognised securities exchange, including the NYSE (each a “Disclosure”), provided however, that prior to such a Disclosure and to the extent permitted by law and, in the case of a Disclosure other than the Disclosure in relation to the entry into this Agreement, practicable, the Parties shall consult with each other and shall give due consideration to the other Party’s reasonable comments regarding the content, timing and manner of the Disclosure;

 

  

 

28

 

 

 

	
  

	
B.

	
the information is or becomes publicly available other than as a result of a breach of any undertaking or duty of confidentiality by any Party or Affiliate of a Party.

	
  

	
C.

	
the information is disclosed on a strictly confidential basis by a Party to its advisers, auditors and other professional service providers for the purposes of the Business;

	
  

	
D.

	
disclosure is by a Party to a member of its Group provided that it shall procure that such Group member shall keep such information confidential upon the terms of this clause 17; or

	
  

	
E.

	
the relevant Parties have given their prior written consent to the contents and manner of the disclosure.

	
  

	
17.2

	
The provisions of this clause 17, to the extent that they relate to general commercial information, shall continue in force in accordance with their terms until the termination of this Agreement.

	
  

	
17.3

	
The provisions of this clause 17, to the extent that they relate to confidential know-how or information in relation to a Party, shall continue in force in accordance with their terms for the continuance of this Agreement and following its termination.

	
  

	
17.4

	
All promises and obligations of a Party under this clause 17 shall equally apply to the Parent and the Fund Manager (for itself and on behalf of the York Funds), respectively, as if they are direct promises and obligations of the Parent and the Fund Manager and/or the York Funds, respectively.

	
  

	
17.5

	
The Parties will procure that the provisions of this clause 17 are contained in the Shareholders’ Agreement of each SPV.

 

	
18.

	
TERMINATION AND WINDING UP 

 

	
  

	
18.1

	
This Agreement shall automatically terminate:

	
  

	
A.

	
on the date falling fifteen (15) Business Days after the end of the Commitment Period, if no SPV has been incorporated or is in existence at the time;

	
  

	
B.

	
upon the last SPV being wound up in accordance with the terms of this Agreement, provided that the Commitment Period has in the meantime expired;

	
  

	
C.

	
upon the completion of a Strategic Transaction for all the Business; and

	
  

	
D.

	
upon all Shares in all SPVs being held only by York Shareholders or, as the case may be, Costamare Shareholders.

	
  

	
18.2

	
This Agreement may be terminated by Costamare by notice to York to this effect:

	
  

	
A.

	
in accordance with the provisions of clause 16.2; or

 

 

 

29

 

 

	
  

	
B.

	
in the event that Costamare has exercised its Costamare Split Right,

provided however, that in the case of clause 18.2A, it shall remain in effect until all then-existing SPVs are wound up.

	
  

	
18.3

	
This Agreement may be terminated by either Party at any time:

	
  

	
A.

	
after the other Party, the Parent, the Fund Manager, and/or any of the York Funds that at the relevant time is invested in York shall have a liquidator or trustee appointed or an administrative receiver, receiver or manager appointed over the whole or substantially the whole of its assets or undertaking or shall suffer any similar event in any jurisdiction (and, in the case of any York Funds formed as limited partnerships, if the relevant limited partnership agreement is terminated), and such event is continuing;

	
  

	
B.

	
the relevant Shareholder of an SPV fails to provide its capital contribution in such SPV in accordance with the relevant Investment Notice issued pursuant to clause 4.5; or

	
  

	
C.

	
the relevant Shareholder of an SPV fails to provide or procure the provision of the relevant Shareholder Support (as such term is defined below) pursuant to clause 19,

provided however, that, in each case, this Agreement shall remain in effect until all then-existing SPVs are wound up.

	
  

	
18.4

	
Each Party undertakes that it will notify the other Party promptly upon the occurrence of any of the events specified in clause 18.3A in relation to the notifying Party.

	
  

	
18.5

	
The provisions of this clause 18 shall be without prejudice to any right or obligation of any Party or a Shareholder arising under this Agreement or another agreement and shall not affect any provision of this Agreement which is expressly or by implication provided to come into effect upon, or to continue in effect after, such termination.

	
  

	
18.6

	
Save as otherwise agreed by the Parties by an instrument in writing and unless Costamare exercises its Costamare Split Right in accordance with clause 8.1A, on the Sixth Anniversary or in the event that this Agreement is terminated pursuant to clauses 18.2 and/or 18.3, all then existing SPVs shall be wound up immediately, except to the extent necessary to allow an orderly winding up of their affairs, including the liquidation of their assets as promptly as practicable and dissolution of the entities. In case of such dissolution, distributions will be made according to clause 12.

	
  

	
18.7

	
Without prejudice to clause 18.5, clauses 1, 12, 17.3, 18.7, 23, 26, 28, 31, and 32 shall survive termination of the Agreement.

 

	
19.

	
GUARANTEES, INDEMNITIES AND OTHER ASSURANCE

 

	
  

	
19.1

	

This clause ‎19 shall apply in respect of the provision of any guarantee, indemnity or other assurance which a third party may require in respect of the indebtedness or other obligations of any SPV (including such support by any other member of the Group of a Party as a Business Plan may set out or the Parties may have agreed in writing) (“Shareholder Support”).

  

  

 

30

 

 

 

 

	
  

	
19.2

	
If the Business Plan of an SPV or the financing in relation thereto or any other transaction agreed in either case by the Board of such SPV, requires that the Shareholders of such SPV should provide or procure the provision of any Shareholder Support, then such Board or, failing that, any Director of such SPV, may, by giving not less than 5 Business Days’ written notice to the Shareholders of such SPV, require that each of the relevant Shareholders provides or procures the provision of Shareholder Support pro rata to such Shareholders’ shareholding participation to such SPV (taking into account the exercise (if any) of a Costamare Option in relation to such SPV), but otherwise on the same terms and in the same manner.

	
  

	
19.3

	
Any Shareholder Support provided pursuant to this clause ‎19 shall be provided to the relevant SPV without charge and on such other terms as the requiring Shareholder may reasonably determine.

	
  

	
19.4

	
For so long as a Shareholder of an SPV has failed (such Shareholder, a “failing Shareholder”) to provide or procure the provision of the relevant Shareholder Support, and notwithstanding any other provisions of this Agreement, such Shareholder shall not be entitled to exercise any of its rights under this Agreement with respect to that SPV.

	
  

	
19.5

	
The Shareholders of an SPV shall bear the aggregate amount of any Actions or Losses suffered or incurred by them or either of them or by a member of a Shareholder’s Group pursuant to any Shareholder Support in respect of such SPV (irrespective of whether such Shareholder Support is given on a joint, several or joint and several basis) given by them or either of them or a member of such Shareholder’s Group pursuant to this clause ‎19, and each such Shareholder of an SPV shall, subject to clause ‎19.6, indemnify the other accordingly.

 

	
  

	
19.6

	
If any Actions or Losses as are referred to in clause ‎19.5 are suffered or incurred solely as a result of a default by one Shareholder of an SPV or by a member of the Group of such Shareholder, then the whole of any such Actions and Losses shall be borne by such Shareholder which shall indemnify the other Shareholder of such SPV and the relevant SPV accordingly.

  

	
  

	
19.7

	
Any payments to be made pursuant to clause ‎19.5 or clause ‎19.6 shall be made forthwith on demand.

	
  

	
19.8

	
Nothing in this Agreement shall operate to deprive either of the Shareholders of an SPV of any rights or remedies available to it at law against the other Shareholder of such SPV, except insofar as any rights or remedies are inconsistent with or expressly excluded by the terms of this Agreement.

  

	
  

	
19.9

	
Save as otherwise provided in this clause ‎19, neither of the Shareholders of an SPV shall be obliged to give any Shareholder Support in respect of the liabilities or obligations of such SPV.

	
  

	
19.10

	
References in this clause ‎19 to any Shareholder Support being given by a Shareholder of an SPV shall include any Shareholder Support which is still outstanding and was given or procured by a previous shareholder of such SPV through whom previous shareholder that Shareholder derives its title to its Shares in such SPV, and references in clause ‎19.6 to a default of a Shareholder of an SPV include a default by any such previous shareholder or a member of its Group.

 

  

 

31

 

 

 

	
  

	
19.11

	
The Parties will procure that the provisions of this clause 19 are contained in the Shareholders’ Agreement of each SPV.

 

	
20.

	
REPRESENTATION AND WARRANTIES

 

	
  

	
20.1

	
Each Party represents and warrants to the other that:

 

	
  

	
A.

	
it is duly organised, validly existing and (to such extent such concept isrelevant under its jurisdiction) in good standing under the laws of itsjurisdiction of incorporation or formation, with all requisite power and authority to enter into and perform its obligations under this Agreement;

 

	
  

	
B.

	
this Agreement has been duly authorised, executed and delivered by suchParty, constitutes the legal, binding obligations of such Party and isenforceable in accordance with its terms except insofar as enforcement may be limited by bankruptcy, insolvency or other laws relating to or affecting enforcement of creditors’ rights or general principles of equity;

 

	
  

	
C.

	
it has and shall maintain any authorisations, consents or approvals requiredfrom any governmental authority or other person for such Party to enter intoand perform its obligations as envisaged by this Agreement;

 

	
  

	
D.

	
all corporate, partnership or other actions on the part of such Party necessaryfor the authorisation, execution and delivery of this Agreement, and theconsummation of the transactions and agreements contemplated hereby, havebeen taken; and

 

	
  

	
E.

	
neither the execution and delivery of this Agreement by such Party nor theconsummation of the transactions or agreements contemplated herein, conflictwith or contravene the provisions of such Party’s organisational documents orany agreement or instrument by which it or its properties are bound, or any law, rule or regulation, order or decree to which its or its properties are subject.

 

	
  

	
20.2

	
The Fund Manager further represents and warrants to Costamare that:

	
  

	
A.

	
the York Funds are managed, sponsored or advised by the Fund Manager or its Affiliates and that they shall remain so throughout this Agreement;

	
  

	
B.

	
throughout the Commitment Period, it shall procure that the York Funds will invest in York and shall capitalize York when and as needed so that York invests its funds in the Business by co-investing with Costamare in SPVs in accordance with the terms of this Agreement; and

	
  

	
C.

	
it has full discretionary management authority to:

	
  

	
(i)

	
determine whether a York Fund will invest its funds in York and procure that York invests its funds in an SPV;

 

  

 

32

 

 

	
  

	
(ii)

	
to direct a York Fund to invest in York and procure that York subscribes in the Shares of an SPV and sign this Agreement and/or any of the relevant documents in respect of an SPV; and

	
  

	
(iii)

	
to procure the appointment of decision-making persons in York and procure that York appoints Directors in each SPV and to change the same as and when required in accordance with this Agreement and the relevant Shareholders’ Agreement,

 

	
  

	
 

	
and that it shall maintain such authority throughout this Agreement.

 

	
  

	
20.3

	
The Fund Manager further represents and warrants to Costamare that York will have no other shareholders, partners or members other than one or more of the York Funds.

	
  

	
20.4

	
The Parent further represents and warrants to York that it is, and will remain throughout the period of this Agreement, the sole shareholder of Costamare with full authority to appoint and/or change the directors of Costamare.

 

	
21.

	
POWER OF ATTORNEY BY WAY OF SECURITY

 

	
  

	
21.1

	
Costamare hereby irrevocably appoints York (and will procure that, to the extent required, any Costamare Shareholder also appoints York) as its respective attorney to execute and deliver the documents required to be executed and delivered pursuant to clauses 7.4, 8.5, 12.4 and 15.2 (as the case may be) and for the purposes set out therein and, if required, Costamare (or will procure that the relevant Costamare Shareholder) will ratify such signature or action by its attorney. The power of attorney in this clause is deemed to be coupled with an interest and given by way of security for the obligations of Costamare and/or the Costamare Shareholder of each SPV under this Agreement.

	
  

	
21.2

	
York hereby irrevocably appoints Costamare (and will procure that, to the extent required, any York Shareholder also appoints Costamare) as its respective attorney to execute and deliver the documents required to be executed and delivered pursuant to clauses 7.4, 8.5 and 15.2 (as the case may be) and for the purposes set out therein and, if required, York (or will procure that the relevant York Shareholder) will ratify such signature or action by its attorney. The power of attorney in this clause is deemed to be coupled with an interest and given by way of security for the obligations York and/or the York Shareholder of each SPV under this Agreement.

 

	
22.

	
GENERAL

 

	
  

	
22.1

	
The Parties shall not engage in any activity, practice or conduct which would constitute an offence under any anti-bribery or corruption law applicable to that Party, including, to the extent applicable, but not limited to the UK Bribery Act 2010 and the US Foreign Corrupt Practices Act 1977 (together “Applicable Law”).

	
  

	
22.2

	
The Parties have and shall maintain in place, adequate procedures designed to prevent any associated person from undertaking any conduct that may give rise to an offence under any Applicable Law.

	
  

	
22.3

	
Each Party undertakes to the other Party that all actions required of it under this Agreement shall be carried out in a timely manner.

  

 

 

33

 

 

 

	
  

	
22.4

	
If there shall be any conflict between the provisions of this Agreement and the provisions of the constitutional documents or the Shareholders’ Agreement of an SPV, then as between the Parties the provisions of this Agreement shall prevail.

	
  

	
22.5

	
Save as expressly contemplated by this Agreement, this Agreement is personal to the Parties, the Parent and the Fund Manager and none of them may assign, mortgage, charge or sub-license any of its rights under this Agreement, or sub-contract or otherwise delegate any of its obligations under this Agreement, except with the prior written consent of the other Party.

	
  

	
22.6

	
Nothing in this Agreement shall create, or be deemed to create, a partnership at law, or the relationship of principal and agent, between the Parties or any of them.

	
  

	
22.7

	
This Agreement shall come into force and effect upon all the following conditions precedent being satisfied by no later than 19 May 2013 or such other later date as may have been agreed by the Parties in writing (19 May 2013 or any agreed later date, the “Last Date”):

	
  

	
(A)

	
both Parties confirming in writing that they have taken all necessary corporate action to approve this Agreement and the matters contemplated herein;

	
  

	
(B)

	
Costamare confirming to York in writing that it has received satisfactory to it advice by U.S. and Marshall Islands counsel in connection with this Agreement and the matters contemplated herein;

	
  

	
(C)

	
York confirming to Costamare in writing that it has received satisfactory to it advice by Marshall Islands counsel in connection with this Agreement and the matters contemplated herein; and

	
  

	
(D)

	
the Parties agreeing the pro-forma Management Agreement, the pro-forma Supervision Agreement, the pro-forma Shareholders’ Agreement, the pro-forma constitutional documents of each SPV and any other documents that need to be agreed thereunder or in relation thereto.

In the event that any of the above conditions are not satisfied by 12:00 p.m. GMT on the Last Date, this Agreement shall never come into effect and neither the Parties nor the Parent nor the Fund Manager shall incur any liability or obligation against each other hereunder or in relation hereto.

 

	
23.

	
ENTIRE AGREEMENT

 

	
  

	
23.1

	
This Agreement, each Shareholders’ Agreement, the constitutional documents of each SPV and any other documents referred to in this Agreement constitute the entire agreement between the Parties and, as the case may be, the relevant Shareholders and supersede and extinguish all previous drafts, agreements, arrangements and understandings between them, whether written or oral, relating to its subject matter.

	
  

	
23.2

	
No amendment shall be made to this Agreement save by instrument in writing signed by the Parties and, to the extent it concerns, rights or obligations of the Parent and/or the Fund Manager (for itself and on behalf of the York Funds), the Parent and/or the Fund Manager, respectively.

 

 

 

34

 

 

 

	
24.

	
SEVERABILITY

 

If any provision of this Agreement is held by any court or other competent authority to be void, invalid or unenforceable in whole or in part, this Agreement shall continue to be valid as to its other provisions and the remainder of the affected provisions; and the Parties and, to the extent required, the Parent and the Fund Manager, agree to negotiate in good faith such suitable alternative provision replicating as nearly as possible the intention of such invalid provision, being in the case of a provision held void by a competent authority a provision which is acceptable to the relevant competent authority.

 

	
25.

	
COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute an original of this Agreement, but all the counterparts shall together constitute the same Agreement.

 

	
26.

	
WAIVER

 

No failure or delay by any Party in exercising any of its rights under this Agreement shall be deemed to be a waiver of such rights and no waiver of a breach of any provision of this Agreement shall be deemed to be a waiver of any subsequent breach of the same or any other provision.

 

	
27.

	
FURTHER ASSURANCE

 

Each Party shall from time to time (both during the continuance of this Agreement and after its termination) do all such acts and execute all such documents as may be reasonably necessary in order to give effect to the provisions of this Agreement.

 

	
28.

	
RIGHTS OF THIRD PARTIES

 

	
  

	
28.1

	
No term of this Agreement shall be enforceable under the Contracts (Rights of Third Parties) Act 1999 by any person (a “Third Party”) other than the Parties to this Agreement.

	
  

	
28.2

	
The consent of a Third Party shall not be required for any amendment to or termination of this Agreement.

 

	
29.

	
COSTS AND EXPENSES

 

	
  

	
29.1

	
Subject to clauses 29.2 and 29.3, Costamare and York shall bear on a pro rata basis in accordance with their respective shareholdings in the first SPV, the aggregate documented costs and expenses, including any advisors’ fees, legal or otherwise (the “Expenses”) incurred by the Parties in connection with the negotiation and execution of the Term Sheet dated 19 March 2013, this Agreement and any related documentation, including but not limited to any Management Agreement, any Supervision Agreement and any Shareholders’ Agreement in relation to the first SPV.

	
  

	
29.2

	
In the event that either Party (the “Overpaying Party”) has paid more than its share of the Expenses as provided in clause 29.1, then the other Party shall reimburse to the Overpaying Party such amount in dollars as is required for each Party to have borne the relevant Expenses at the time on the basis of the percentages set out in clause 29.1. Any such reconciliation shall be performed at the time this Agreement is executed and when a Vessel is acquired by the first SPV to be incorporated pursuant to this Agreement and the other Party shall promptly thereafter reimburse the Overpaying Party.

  

  

 

35

 

 

	
  

	
29.3

	
On the earlier of (i) the incorporation of the fifth SPV and (ii) the incorporation of the last SPV to be incorporated within the Commitment Period, the Parties shall re-calculate the allocation of the Expenses this time on the basis of their respective shareholdings as at such later date and as if all SPVs at the time were held by a holding company and the Shareholders of each SPV were holding their shares in the SPVs through such holding. In the event that either Party (the “Recalculation Overpaying Party”) following such recalculation has paid more than its share of the Expenses as provided in this clause 29.3, then the other Party shall promptly reimburse to the Recalculation Overpaying Party such amount in dollars as is required for each Party to have borne the relevant Expenses at the time on the basis of the percentages set out in this clause 29.3.

	
  

	
29.4

	
Following any re-calculation pursuant to clause 29.3, the Parties shall transfer the Expenses to be amortised across the SPVs incorporated at the time of such re-calculation.

	
  

	
29.5

	
With respect to common costs and expenses relating to SPVs other than the first SPV, the Parties will be responsible on a pro rata basis in accordance with their Commitments for that specific SPV and such amounts shall be included in the Investment Notices to Parties.

	
  

	
29.6

	
Without prejudice to the provisions of clauses 29.4 and 29.5, York shall be reimbursed by each SPV in connection with any due diligence expenses (including advisors’ fees, and any other applicable costs) incurred by it in relation to its evaluation of the formation of the relevant SPV and corresponding Vessel acquisition, as agreed with Costamare on a case by case basis but not in excess of US$100,000 per SPV.

	
30. 

	
NON ADVISORY 

 

Neither Party nor the Parent nor the Fund Manager assumes any responsibility to give, nor shall it give or be deemed to be giving, tax, regulatory or investment advice to the other Party or, as the case may be, the Parent and/or the Fund Manager in connection with any aspect of the Business. In particular, without prejudice to the generality of the foregoing no recommendation by Costamare, the Parent or any Manager in connection with the acquisition or disposal of a Vessel nor the preparation and/or contents of a Business Plan for an Investment Opportunity or the Budget for an SPV/Vessel shall constitute or be actionable as investment advice.

	
31.

	
SERVICE OF NOTICES

 

	
  

	
31.1

	
Any notice or other communication to be given or served under or in connection with this Agreement shall be in writing and transmitted by email, as well as in one of the following delivery methods:

	
  

	
A.

	
delivered by hand;

  

  

 

36

 

 

 

	
  

	
B.

	
sent by airmail or international courier (in each case, pre-paid); or

	
  

	
C.

	
sent by fax.

 

to the party due to receive the notice at the following address or fax number or email address:

 

in the case of York and the Fund Manager,

 

c/o York Capital Management Europe (UK) Advisors LLP

23 Saville Row, 4th Floor

London W1S 2ET

England

email: sparrow@yorkcapital.com

fax: +44(0) 20 7907 5601;

 

in the case of Costamare and the Parent,

 

c/o Costamare Shipping Co. S.A.

60 Zephyrou Street & Syngrou Avenue

175 64 Athens

Greece

email: ventures@costamare.com

fax: +30 210 940 9051,

 

or at such other address or fax number or email address as may previously have been specified by that party by notice given in accordance with this clause.

 

	
  

	
31.2

	
A notice is deemed to be given or served:

	
  

	
A.

	
if delivered by hand, at the time it is left at the address;

	
  

	
B.

	
if sent by pre-paid airmail or international courier, on the fourth Business Day after despatch;

	
  

	
C.

	
if sent by fax, on receipt of a clear transmission report; and

	
  

	
D.

	
if sent by email, when received.

	
  

	
31.3

	
In the case of a notice given or served by fax, email or by hand, where this occurs after 5.00pm on a Business Day, or on a day which is not a Business Day, the date of service shall be deemed to be the next Business Day.

	
32.

	
GOVERNING LAW AND JURISDICTION

 

	
  

	
32.1

	
This Agreement and any dispute or claim (whether contractual or otherwise) arising out of or in connection with it, including any question regarding its existence, validity or termination, is governed by and shall be construed in accordance with English law and shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause. The number of arbitrators shall be three and Costamare and, if a co-plaintiff or (as the case may be) co-defendant in the relevant proceedings, the Parent shall be entitled to jointly appoint one arbitrator and York and, if a co-plaintiff or (as the case may be) co-defendant in the relevant proceedings, the Fund Manager (as well as the York Funds) shall be entitled to jointly appoint one arbitrator, with the third arbitrator being appointed by the LCIA Court, in accordance with LCIA Rules. The seat, or legal place, of arbitration shall be London and the language to be used in the arbitral proceedings shall be English.

  

  

 

37

 

 

 

	
  

	
32.2

	
York and the Fund Manager each irrevocably appoints York Capital Management Europe (UK) Advisors LLP at present of 23 Saville Row, 4th Floor, London W1S 2ET, England and Costamare and the Parent each irrevocably appoints Mr Richard Coleman c/o H. Clarkson and Co. Ltd. at present of 3 Lower Thames Street, London EC3R 6HE, England to be its agent for the receipt of any claim form, application notice, order, judgment or other document (each, a “Service Document”) relating to any proceeding, suit or action arising out of or in connection with this Agreement (“Proceedings”). Each Party, the Parent, and the Fund Manager agree that any Service Document may be effectively served on it in connection with Proceedings in England and Wales by service on its agent effected in any manner permitted by this Agreement, the LCIA Rules or the Civil Procedure Rules (as applicable).

	
  

	
32.3

	
If the agent at any time ceases for any reason to act as such, the relevant party shall appoint a replacement agent having an address for service in England and shall notify the other parties to this Agreement of the name and address of the replacement agent. Failing such appointment and notification, a Party shall be entitled by notice to the other parties to this Agreement to appoint a replacement agent to act on behalf of such other party and shall notify the other parties of the appointment. The provisions of this clause applying to service on an agent apply equally to service on a replacement agent.

THIS AGREEMENT HAS BEEN EXECUTED AS A DEED ON THE DATE STATED AT THE BEGINNING OF THIS AGREEMENT.

  

	
Executed and delivered as a deed by

	
)

	 
	
SPARROW HOLDINGS, L.P.

	
)

	 
	
acting by York Global Finance Manager, LLC

	
)

	 
	
its General Partner acting by:

	
)

	 
	 	 	/s/ Richard P. Swanson
	 	 	
Managing Member

	 	 	Richard P. Swanson

General Counsel

	
Executed and delivered as a deed by

	
)

	 
	
COSTAMARE VENTURES INC.

	
)

	 
	
acting by:

	
)

	 
	 	 	/s/ Konstantinos Konstantakopoulos
	 	 	
Director

 

  

 

38

 

 

 

	
Executed and delivered as a deed solely

	
)

	 
	
with respect to provisions applicable to it by

	
)

	 
	
YORK CAPITAL MANAGEMENT

	
)

	 
	
GLOBAL ADVISORS, LLC (on behalf of

	
)

	 
	
itself and as agent for the York Funds) acting by:

	
)

	 
	 	 	/s/ Richard P. Swanson 
	 	 	
Managing Member

	 	 	Richard P. Swanson

General Counsel

  

	
Executed and delivered as a deed solely

	
)

	 
	
with respect to provisions applicable to it by

	
)

	 
	
COSTAMARE INC.

	
)

	 
	
acting by:

	
)

	 
	 	 	/s/ Konstantinos Konstantakopoulos 
	 	 	
Director

 

 

39

 

  

Schedule 1-List of York Funds

	
1

	
York Capital Management, L.P.

	
2

	
York Multi-Strategy Master Fund, L.P.

	
3

	
York Credit Opportunities Fund, L.P.

	
4

	
York Credit Opportunities Investments Master Fund, L.P.

	
5

	
York European Opportunities Investments Master Fund, L.P.

	
6

	
York European Focus Master Fund, L.P.

  

 

40

 

  

  

Schedule 2-Form of Business Plan

The Business Plan prepared in respect of an SPV and its Vessel shall include:

	
a)

	
summary of proposal e.g. funding or investment, trigger points, conditions, guarantees etc.;

  

	
b)

	
purchase price of such Vessel and payment terms thereof;

  

	
c)

	
details of such Vessel;

	
d)

	
any existing draft documentation with respect to the acquisition of the Vessel;

	
e)

	
in the event of a Newbuild Vessel, details of any documentation and arrangements with the relevant builder, including any performance guarantees that may be required;

	
f)

	
valuation report prepared by an independent shipbroker appointed by Costamare;

	
g)

	
details of any proposed financing and relevant documentation, including any performance guarantees that may be required;

	
h)

	
details of strategy for operating the Vessel including details of any charter contracts; and

	
i)

	
IRR / cashflow and assumptions.

 

41

 

 

 

Schedule 3- Form of Budget

The Budget prepared by Costamare Shipping for an SPV and its Vessel shall include:

	
a)

	
a breakdown of the projected operating costs of the Vessel and the relevant SPV;

	
b)

	
a schedule of all fees and expenses that may be charged to or be claimed from the SPV including the proposed fees and expenses of all Service Providers;

	
c)

	
an estimate of the working capital requirements of the SPV incorporated within a cash flow statement; and

	
d)

	
an estimate of all expected cash flows and revenues of the SPV prior to any applicable financing costs.

  

 

42

 

  

Schedule 4- Example of IRR calculation

	 	
A

	
B

	
C

	
D

	 
	
1

	
IRR Example

	 	 	 	 
	
2

	 	 	 	 	 
	
3

	
Date

	
Capital In

	
Distribution

	
Net Cash

	 
	
4

	
30/6/2013

	
-5.000.000,00

	 	
-5.000.000,00

	 
	
5

	
30/9/2013

	 	
300.000,00

	
300.000,00

	 
	
6

	
31/12/2013

	 	
300.000,00

	
300.000,00

	 
	
7

	
31/3/2014

	 	
300.000,00

	
300.000,00

	 
	
8

	
30/6/2014

	 	
300.000,00

	
300.000,00

	 
	
9

	
30/9/2014

	 	
300.000,00

	
300.000,00

	 
	
10

	
31/12/2014

	 	
5.000.000,00

	
5.000.000,00

	 
	
11

	 	 	 	 	 
	
12

	 	 	
IRR

	
22,0%

	 

	 	
A

	
B

	
C

	
D

	 
	
1

	
IRR Example

	 	 	 	 
	
2

	 	 	 	 	 
	
3

	
Date

	
Capital In

	
Distribution

	
Net Cash

	 
	
4

	
41455

	
-5000000

	 	
=+C4+B4

	 
	
5

	
41547

	 	
300000

	
=+C5+B5

	 
	
6

	
41639

	 	
300000

	
=+C6+B6

	 
	
7

	
41729

	 	
300000

	
=+C7+B7

	 
	
8

	
41820

	 	
300000

	
=+C8+B8

	 
	
9

	
41912

	 	
300000

	
=+C9+B9

	 
	
10

	
42004

	 	
5000000

	
=+C10+B10

	 
	
11

	 	 	 	 	 
	
12

	 	 	
IRR

	
=+XIRR(D4:D10;A4:A10)

	 

 

 

43EXHIBIT 4.1

 

EXECUTION VERSION

 

 

JAMES RIVER COAL COMPANY

 

Company

 

BDCC HOLDING COMPANY, INC.

BELL COUNTY COAL CORPORATION

BLEDSOE COAL CORPORATION

BLEDSOE COAL LEASING COMPANY

BLUE DIAMOND COAL COMPANY

EOLIA RESOURCES, INC.

IRP GP HOLDCO LLC

IRP LP HOLDCO INC.

JAMES RIVER COAL SALES, INC.

JAMES RIVER COAL SERVICE COMPANY

JAMES RIVER ESCROW INC.

JELLICO MINING, LLC

JOHNS CREEK COAL COMPANY

JOHNS CREEK ELKHORN COAL CORPORATION

JOHNS CREEK PROCESSING COMPANY

LEECO, INC.

MCCOY ELKHORN COAL CORPORATION

SHAMROCK COAL COMPANY, INCORPORATED

TRIAD MINING, INC.

TRIAD UNDERGROUND MINING, LLC

INTERNATIONAL RESOURCE PARTNERS LP

INTERNATIONAL RESOURCES HOLDINGS I LLC

IRP WV CORP.

INTERNATIONAL RESOURCES HOLDINGS II LLC

INTERNATIONAL RESOURCES, LLC

HAMPDEN COAL COMPANY, LLC

ROCKHOUSE CREEK DEVELOPMENT, LLC

CHAFIN BRANCH COAL COMPANY, LLC

SNAP CREEK MINING, LLC

LOGAN & KANAWHA COAL CO., LLC

IRP KENTUCKY LLC

LAUREL MOUNTAIN RESOURCES LLC

BUCK BRANCH RESOURCES LLC

 

Subsidiary Guarantors

 

and

 

U.S. BANK NATIONAL ASSOCIATION

 

as Trustee 

 

 

 

INDENTURE

 

Dated as of May 22, 2013

 

 

  

10.00% CONVERTIBLE SENIOR NOTES DUE 2018

 

 

 

    	 

    	 

    

 

 

TABLE OF CONTENTS

	Page(s)
	ARTICLE I
	 	 	 
	Definitions and Incorporation by Reference
	 
	SECTION 1.01.	Definitions	1
	SECTION 1.02.	Other Definitions	11
	SECTION 1.03.	Trust Indenture Act	12
	SECTION 1.04.	Rules of Construction	12
	 	 	 
	ARTICLE II
	 	 	 
	The Securities
	 	 	 
	SECTION 2.01.	Form and Dating	13
	SECTION 2.02.	Execution and Authentication	13
	SECTION 2.03.	Registrar, Paying Agent and Conversion Agent	14
	SECTION 2.04.	Paying Agent to Hold Money in Trust	15
	SECTION 2.05.	Securityholder Lists	15
	SECTION 2.06.	Transfer And Exchange	15
	SECTION 2.07.	Replacement Securities	16
	SECTION 2.08.	Outstanding Securities	16
	SECTION 2.09.	Securities Held by the Company or an Affiliate	17
	SECTION 2.10.	Temporary Securities	17
	SECTION 2.11.	Cancelation	17
	SECTION 2.12.	Defaulted Interest	18
	SECTION 2.13.	CUSIP Numbers	18
	SECTION 2.14.	Deposit of Moneys	18
	SECTION 2.15.	Book-Entry Provisions for Global Securities	18
	SECTION 2.16.	Special Transfer Provisions	19
	SECTION 2.17.	Restrictive Legends	21
	SECTION 2.18.	Ranking	21
	SECTION 2.19.	Sinking Fund	21
	 	 	 
	ARTICLE III
	 	 	 
	Redemption and Repurchase
	 	 	 
	SECTION 3.01.	No Redemption	21
	SECTION 3.02.	Repurchase at Option of Holder Upon a Fundamental Change	21

 

 

    	 

    	 

    

 

	ARTICLE IV
	 	 	 
	Covenants
	 	 	 
	SECTION 4.01.	Payment of Securities	26
	SECTION 4.02.	Maintenance of Office or Agency	26
	SECTION 4.03.	Rule 144A Information and Annual Reports	27
	SECTION 4.04.	Compliance Certificate	28
	SECTION 4.05.	Stay, Extension and Usury Laws	28
	SECTION 4.06.	Corporate Existence	28
	SECTION 4.07.	Notice of Default	28
	SECTION 4.08.	Further Instruments and Acts	28
	SECTION 4.09.	Additional Interest	28
	SECTION 4.10.	Limitation on Issuance of Guarantees by Restricted Subsidiaries	30
	 	 	 
	ARTICLE V
	 	 	 
	Successors
	 	 	 
	SECTION 5.01.	When Company May Merge, etc.	31
	SECTION 5.02.	Successor Substituted	32
	SECTION 5.03.	When a Subsidiary Guarantor May Merge or Transfer Assets	32
	 	 	 
	ARTICLE VI
	 	 	 
	Defaults and Remedies
	 	 	 
	SECTION 6.01.	Events of Default	33
	SECTION 6.02.	Acceleration	35
	SECTION 6.03.	Other Remedies	36
	SECTION 6.04.	Waiver of Past Defaults	36
	SECTION 6.05.	Control by Majority	36
	SECTION 6.06.	Limitation on Suits	36
	SECTION 6.07.	Rights Of Holders To Receive Payment And To Convert Securities	37
	SECTION 6.08.	Collection Suit by Trustee	37
	SECTION 6.09.	Trustee May File Proofs of Claim	37
	SECTION 6.10.	Priorities	37
	SECTION 6.11.	Undertaking For Costs	38
	 	 	 
	ARTICLE VII
	 	 	 
	Trustee
	 	 	 
	SECTION 7.01.	Duties of Trustee	38
	SECTION 7.02.	Rights of Trustee	39
	SECTION 7.03.	Individual Rights of Trustee	41
	SECTION 7.04.	Trustee’s Disclaimer	41

 

 

 

    	 

    	 

    

 

	SECTION 7.05.	Notice of Defaults	41
	SECTION 7.06.	Reports by Trustee to Holders	41
	SECTION 7.07.	Compensation and Indemnity	41
	SECTION 7.08.	Replacement of Trustee	42
	SECTION 7.09.	Successor trustee by Merger, Etc.	43
	SECTION 7.10.	Eligibility; Disqualification	43
	SECTION 7.11.	Preferential Collection of Claims Against Company	43
	 	 	 
	ARTICLE VIII
	 	 	 
	Discharge of Indenture
	 	 	 
	SECTION 8.01.	Termination of The Obligations of The Company	44
	SECTION 8.02.	Application of Trust Money	44
	SECTION 8.03.	Repayment To Company	44
	SECTION 8.04.	Reinstatement	45
	 	 	 
	ARTICLE IX
	 	 	 
	Amendments
	 	 	 
	SECTION 9.01.	Without Consent of Holders	45
	SECTION 9.02.	With Consent of Holders	46
	SECTION 9.03.	[Reserved]	47
	SECTION 9.04.	Revocation and Effect of Consents	47
	SECTION 9.05.	Notation on or Exchange of Securities	47
	SECTION 9.06.	Trustee Protected	47
	SECTION 9.07.	Effect of Supplemental Indentures	47
	 	 	 
	ARTICLE X
	 	 	 
	Conversion
	 	 	 
	SECTION 10.01.	Conversion Privilege	48
	SECTION 10.02.	Conversion Procedure and Payment upon Conversion	48
	SECTION 10.03.	Cash In Lieu of Fractional Shares	50
	SECTION 10.04.	Taxes on Conversion	50
	SECTION 10.05.	Company to Provide Common Stock	50
	SECTION 10.06.	Adjustment of Conversion Rate	50
	SECTION 10.07.	No Adjustment	58
	SECTION 10.08.	Other Adjustments	59
	SECTION 10.09.	Adjustments for Tax Purposes	59
	SECTION 10.10.	Notice Of Adjustment	59
	SECTION 10.11.	Notice Of Certain Transactions	59
	SECTION 10.12.	Effect of Reclassifications, Consolidations, Mergers, Binding Share Exchanges or Sales on Conversion Privilege	59

 

 

    	 

    	 

    

 

	SECTION 10.13.	Trustee’s Disclaimer	61
	SECTION 10.14.	Rights Distributions Pursuant to Shareholders’ Rights Plans	61
	SECTION 10.15.	Issuer’s Conversion Option	61
	 	 	 
	ARTICLE XI
	 	 	 
	Concerning The Holders
	 	 	 
	SECTION 11.01.	Action by Holders	64
	SECTION 11.02.	Proof of Execution by Holders	65
	SECTION 11.03.	Persons Deemed Absolute Owners	65
	 	 	 
	ARTICLE XII
	 	 	 
	Holders’ Meetings
	 	 	 
	SECTION 12.01.	Purpose of Meetings	65
	SECTION 12.02.	Call of Meetings by Trustee	66
	SECTION 12.03.	Call of Meetings by Company or Holders	66
	SECTION 12.04.	Qualifications for Voting	66
	SECTION 12.05.	Regulations	66
	SECTION 12.06.	Voting	67
	SECTION 12.07.	No Delay of Rights by Meeting	67
	 	 	 
	ARTICLE XIII
	 	 	 
	Subsidiary Guarantees
	 	 	 
	SECTION 13.01.	Subsidiary Guarantees	68
	SECTION 13.02.	Contribution	69
	SECTION 13.03.	Successors and Assigns	70
	SECTION 13.04.	No Waiver	70
	SECTION 13.05.	Modification	70
	SECTION 13.06.	Execution of Supplemental Indenture for Future Subsidiary Guarantors	70
	SECTION 13.07.	Effectiveness of Subsidiary Guarantees	70
	 	 	 
	ARTICLE XIV
	 	 	 
	Miscellaneous
	 	 	 
	SECTION 14.01.	[Reserved]	71
	SECTION 14.02.	Notices	71
	SECTION 14.03.	Communication by Holders With Other Holders	72
	SECTION 14.04.	Certificate and Opinion as to Conditions Precedent	72
	SECTION 14.05.	Statements Required in Certificate or Opinion	72
	SECTION 14.06.	Rules by Trustee and Agents	73
	SECTION 14.07.	Legal Holidays	73
	SECTION 14.08.	Duplicate Originals	73
	SECTION 14.09.	GOVERNING LAW	73

 

 

 

    	 

    	 

    

 

 

 

	SECTION 14.10.	No Adverse Interpretation of Other Agreements	73
	SECTION 14.11.	Successors	73
	SECTION 14.12.	Separability	73
	SECTION 14.13.	Table of Contents, Headings, Etc.	73
	SECTION 14.14.	Calculations In Respect Of The Securities	74
	SECTION 14.15.	No Personal Liability of Directors, Officers, Employees or Shareholders	74
	SECTION 14.16.	Force Majeure	74

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

 

 

 

INDENTURE, dated as of May 22,
2013, between JAMES RIVER COAL COMPANY, a Virginia corporation (the “Company”), the Subsidiary Guarantors (as
defined), and U.S. BANK NATIONAL ASSOCIATION, a banking association organized under the laws of the United States, as trustee (the
“Trustee”). Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit
of the Holders of the Company’s 10.00% Convertible Senior Notes due 2018 (the “Securities”).

 

ARTICLE
I

 

Definitions and Incorporation by Reference

 

SECTION
1.01.        Definitions.

 

“2015 Notes” means the
$172.5 million aggregate principal amount of the Company’s 4.5% Convertible Senior Notes due 2015 issued pursuant to the
indenture (the “2015 Indenture”) dated as of November 20, 2009 between the Company and the Trustee.

 

“2018 Notes” means the
$230.0 million aggregate principal amount of the Company’s 3.125% Convertible Senior Notes due 2018 issued pursuant to the
indenture (the “2018 Indenture”) dated as of March 29, 2011 between the Company and the Trustee.

 

“2019 Notes” means the
$275.0 million aggregate principal amount of the Company’s 7.875% Senior Notes due 2019 issued pursuant to the indenture
(the “2019 Indenture”) dated as of March 29, 2011 between the Company and the Trustee

 

“Additional Interest” means
all amounts, if any, payable pursuant to Sections 4.09(a), 4.09(b), 4.09(c) and 6.02(b), as applicable.

 

“Affiliate” means, with
respect to a specified Person, any Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For this purpose, “control” shall mean the power to direct the management and policies
of a Person through the ownership of securities, by contract or otherwise.

 

“Attributable Debt” in
respect of a Sale and Leaseback Transaction means, at the time of determination, the present value of the obligation of the lessee
for net rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction, including any period
for which such lease has been extended or may, at the option of the lessor, be extended. Such present value shall be calculated
using a discount rate equal to the rate of interest implicit in such Sale and Leaseback Transaction, determined in accordance with
GAAP.

 

“Board of Directors” means
the Board of Directors of the Company or any committee thereof authorized to act for it hereunder.

 

    	1

    	 

    

“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 Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.

 

“Capital Stock” of any
Person means any and all shares, interests, participations or other equivalents (however designated) of capital stock of such Person
and all warrants or options to acquire such capital stock.

 

“Capitalized Lease” means,
as applied to any Person, any lease of any property (whether real, personal or mixed) of which the discounted present value of
the rental obligations of such Person as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet of
such Person.

 

“Capitalized Lease Obligations”
means the discounted present value of the rental obligations under a Capitalized Lease.

 

“Change in Control” shall
be deemed to have occurred at such time as:

 

(a)               
any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the “beneficial owner” (as such term is used in Rule 13d-3 under the Exchange Act), directly or
indirectly, of fifty percent (50%) or more of the Company’s Voting Stock; or

 

(b)              
there occurs a sale, transfer, lease, conveyance or other disposition of all or substantially all of the consolidated property
or assets of the Company to any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act), including any group acting for the purpose of acquiring, holding, voting or disposing of securities within
the meaning of Rule 13d-5(b)(1) under the Exchange Act; or

 

(c)               
the Company consolidates with, or merges with or into, another Person or any Person consolidates with, or merges with or
into, the Company, unless either:

 

(i) the Persons that “beneficially
owned” (as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, the shares of the Company’s
Voting Stock immediately prior to such consolidation or merger, “beneficially own,” directly or indirectly, immediately
after such consolidation or merger, shares of the surviving or continuing corporation’s Voting Stock representing at least
a majority of the total outstanding voting power of all outstanding classes of the Voting Stock of the surviving or continuing
corporation in substantially the same proportion as such ownership immediately prior to such consolidation or merger; or

 

(ii) at least ninety percent (90%)
of the consideration (other than cash payments for fractional shares or pursuant to statutory appraisal rights) in such consolidation
or merger consists of common stock and any associated rights listed and traded on The New York Stock Exchange, The NASDAQ
Global Select Market or The NASDAQ Global Market (or any of their respective successors) (or which will be so listed and traded
when issued or exchanged in connection with such consolidation or merger), and, as a result of such consolidation or merger, the
Securities become convertible solely into such consideration (such a consolidation or merger that satisfies the conditions set
forth in this clause (2), a “Listed Stock Business Combination”); or

 

    	2

    	 

    

 

 

(d)              
the Company is liquidated or dissolved or the holders of the Company’s Capital Stock approve any plan or proposal
for the liquidation or dissolution of the Company.

 

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

 

“Closing Sale Price” on
any date means the per share price of the Common Stock on such date, determined (i) on the basis of the closing per share sale
price (or if no closing per share 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 such date on the principal U.S. national or regional securities
exchange on which the shares of Common Stock are listed; or (ii) if the shares of Common Stock are not listed on a U.S. national
or regional securities exchange, as reported by Pink OTC Markets Inc. or a similar organization; provided, however,
that in the absence of any such report or quotation, the Closing Sale Price shall be the price determined by a nationally recognized
independent investment banking firm retained by the Company for such purpose as most accurately reflecting the per share price
that a fully informed buyer, acting on his own accord, would pay to a fully informed seller, acting on his own accord in an arms-length
transaction, for a share of Common Stock.

 

“Commodity Agreement” means
any forward contract, commodity swap agreement, commodity option agreement or other similar agreement or arrangement.

 

“Common Stock” means the
common stock, par value $0.01 per share, of the Company at the date of this Indenture, subject to Section 10.12.

 

“Company” means the party
named as such above until a successor replaces it pursuant to the applicable provision hereof and thereafter means the successor.
The foregoing sentence shall likewise apply to any such successor or subsequent successor.

 

“Company Order” or “Company
Request” means a written request or order signed on behalf of the Company by (i) its Chairman of the Board, its Chief
Executive Officer, its President, its Chief Operating Officer, its Chief Accounting Officer or any Vice President and (ii) any
such other officer designated in clause (i) of this definition or its Treasurer or an Assistant Treasurer or its Secretary or an
Assistant Secretary, and delivered to the Trustee.

 

“Conversion Date” with
respect to a Security means the date on which a Holder satisfies all the requirements for such conversion specified in Section 10.02(a).

 

“Conversion Notice” means
the “Conversion Notice” attached to the Form of Security attached hereto as Exhibit A.

 

“Conversion Price” means,
as of any date of determination, the dollar amount derived by dividing one thousand dollars ($1,000) by the Conversion Rate in
effect on such date.

 

“Conversion Rate” shall
initially be 200 shares of Common Stock per $1,000 principal amount of Securities, subject to adjustment as provided in Article X.

 

“Corporate Trust Office of the Trustee”
means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office
as of the date hereof is located at 100 Wall Street, Suite 1600, New York, NY 10015, Attention: Corporate Trust Services,
or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal
corporate 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 and the Company).

 

    	3

    	 

    

“Currency Agreement” means
any foreign exchange contract, currency swap agreement or other similar agreement or arrangement.

 

“Default” means any event
which is, or after notice or passage of time or both would be, an Event of Default.

 

“Depositary” means The
Depository Trust Company, its nominees and successors.

 

“Disqualified Stock” means
any class or series of Capital Stock of any Person that by its terms or otherwise is (1) required to be redeemed prior to
the date that is 91 days after the Maturity Date of the Securities, (2) redeemable at the option of the holder of such class
or series of Capital Stock at any time prior to the date that is 91 days after the Maturity Date of the Securities or (3) convertible
into or exchangeable for Capital Stock referred to in clause (1) or (2) above or Indebtedness having a scheduled maturity
prior to the date that is 91 days after the Maturity Date of the Securities; provided that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to repurchase or redeem such
Capital Stock upon the occurrence of an “asset sale” or “change of control” shall not constitute Disqualified
Stock.

 

“Ex Date” means (i) when
used with respect to any issuance or distribution, means the first date on which the shares of Common Stock trade the regular way
on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive
such issuance or distribution from the Company or, if applicable, from the seller of Common Stock on such exchange or market (in
the form of due bills or otherwise) as determined by such exchange or market, (ii) when used with respect to any subdivision or
combination of Common Stock, means the first date on which the shares of Common Stock trade the regular way on such exchange or
in such market after the time at which such subdivision or combination becomes effective and (iii) when used with respect to any
tender offer or exchange offer means the first date on which the shares of Common Stock trade the regular way on such exchange
or in such market after the expiration time of such tender offer or exchange offer (as it may be amended or extended). For purposes
of determining the Ex Date with respect to an issuance or distribution under this Indenture, unless it has knowledge to the contrary,
the Company may conclusively assume (and such assumption shall be binding upon the Holders) that purchases and sales of the relevant
security with respect to which such issuance or distribution is being made will settle based on the customary settlement cycle
for purchases or sales of such security.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

    	4

    	 

    

“Exchange Agreements” means
the Exchange Agreements dated as of the Issue Date among the Company, the Subsidiary Guarantors party thereto and the respective
Holders named therein with respect to the Securities.

 

“Existing Notes” means,
collectively, the 2015 Notes, the 2018 Notes and the 2019 Notes.

 

“Existing Revolving Credit Facility”
means the revolving credit facility in the aggregate principal amount of up to $100.0 million made available to the Company pursuant
to that certain Second Amended and Restated Revolving Credit Agreement dated as of June 30, 2011, among the Company, certain of
its Subsidiaries, the lenders party thereto and General Electric Capital Corporation, as administrative agent and collateral agent,
including any related notes, Guarantees, collateral documents, instruments and agreements executed in connection therewith, and,
in each case, as amended, restated, modified, renewed, refunded, replaced (whether upon or after termination or otherwise) or refinanced
(including by means of sales of debt securities to institutional investors) in whole or in part from time to time.

 

“Foreign Subsidiary” means
any Subsidiary of the Company that is an entity which is a controlled foreign corporation under Section 957 of the Internal
Revenue Code.

 

“Fundamental Change” shall
be deemed to have occurred upon the occurrence of either a Change in Control or a Termination of Trading.

 

“GAAP” means generally
accepted accounting principles in the United States of America as in effect as of the Closing Date as determined by the Public
Company Accounting Oversight Board. All ratios and computations contained or referred to in this Indenture shall be computed in
conformity with GAAP applied on a consistent basis, except that calculations made for purposes of determining compliance with the
terms of the covenants and with other provisions of this Indenture shall be made without giving effect to (1) the amortization
of any expenses incurred in connection with the offering of the Securities and (2) except as otherwise provided, any non-cash
impairment charges required or permitted by Statement Nos. 141 and 142 of the Financial Accounting Standards Board or any successor
standards.

 

“Guarantee” means any obligation,
contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness of any other Person and, without limiting
the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (1) to purchase
or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by virtue
of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services (unless such purchase
arrangements are on arm’s-length terms and are entered into in the normal course of business), to take-or-pay, or to maintain
financial statement conditions or otherwise) or (2) entered into for purposes of assuring in any other manner the obligee
of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part); provided
that the term “Guarantee” shall not include endorsements for collection or deposit in the normal course of business.
The term “Guarantee” used as a verb has a corresponding meaning.

 

    	5

    	 

    

“Holder” or “Securityholder”
means a Person in whose name a Security is registered on the Registrar’s books.

 

“Indebtedness” means, with
respect to any Person at any date of determination (without duplication):

 

(1)
all indebtedness of such Person for borrowed money;

 

(2)
all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)
all obligations of such Person in respect of letters of credit or other similar instruments (including reimbursement
obligations with respect thereto, but excluding obligations with respect to letters of credit (including trade letters of credit)
securing obligations (other than obligations described in (1) or (2) above or (5), (6) or (7) below) entered into in the normal
course of business of such Person to the extent such letters of credit are not drawn upon or, if drawn upon, to the extent such
drawing is reimbursed no later than the third business day following receipt by such Person of a demand for reimbursement);

 

(4)
all obligations of such Person to pay the deferred and unpaid purchase price of property or services, which purchase
price is due more than six months after the date of placing such property in service or taking delivery and title thereto or the
completion of such services, except Trade Payables;

 

(5)
all Capitalized Lease Obligations and Attributable Debt;

 

(6)
all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such Indebtedness is
assumed by such Person; provided that the amount of such Indebtedness shall be the lesser of (A) the fair market value
(as determined by the Board of Directors) of such asset at such date of determination and (B) the amount of such Indebtedness;

 

(7)
all Indebtedness of other Persons Guaranteed by such Person to the extent such Indebtedness is Guaranteed by such Person;

 

(8)
to the extent not otherwise included in this definition, obligations under Commodity Agreements, Currency Agreements
and Interest Rate Agreements (other than Commodity Agreements, Currency Agreements and Interest Rate Agreements designed solely
to protect the Company or its Restricted Subsidiaries against fluctuations in commodity prices, foreign currency exchange rates
or interest rates and that do not increase the Indebtedness of the obligor outstanding at any time other than as a result of fluctuations
in commodity prices, foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable
thereunder); and

 

(9)
all Disqualified Stock issued by such Person with the amount of Indebtedness represented by such Disqualified Stock
being equal to the greater of its voluntary or involuntary liquidation preference and its maximum fixed repurchase price, but excluding
accrued dividends, if any.

 

    	6

    	 

    

For the avoidance of doubt, Indebtedness shall
not include:

 

(x)any liability for federal, state, local
or other taxes,

 

(y)performance, surety or appeal
bonds provided in the normal course of business, or

 

(z)agreements providing for indemnification,
adjustment of purchase price or similar obligations, or Guarantees or letters of credit, surety bonds or performance bonds securing
any obligations of the Company or any of its Restricted Subsidiaries pursuant to such agreements, in any case, incurred in connection
with the disposition of any business, assets or Restricted Subsidiary (other than Guarantees of Indebtedness incurred by any Person
acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose of financing such acquisition),
so long as the principal amount does not to exceed the gross proceeds actually received by the Company or any Restricted Subsidiary
in connection with such disposition.

 

“Indenture” means this
Indenture as amended or supplemented from time to time.

 

“Interest Payment Date”
means June 1 and December 1 of each year, beginning on December 1, 2013.

 

“Interest Rate Agreement”
means any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement, option or future contract
or other similar agreement or arrangement.

 

“Issue Date” means May
22, 2013.

 

“Lien” means any mortgage,
pledge, security interest, encumbrance, lien or charge of any kind (including, without limitation, any conditional sale or other
title retention agreement or lease in the nature thereof or any agreement to give any security interest).

 

“Market Disruption Event”
means (i) a failure by the primary United States national or regional securities exchange or market on which shares of Common Stock
or the relevant securities are listed or admitted to trading to open for trading during its regular trading session or (ii) the
occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for shares of Common Stock or
the relevant securities 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
shares of Common Stock (or the relevant securities) or in any options, contracts or future contracts relating to shares of Common
Stock (or the relevant securities).

 

“Maturity Date” means June
1, 2018.

 

    	7

    	 

    

“Officer” means the Chairman
of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Accounting Officer, any Vice President,
the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company.

 

“Officer’s Certificate”
means a certificate signed by one Officer of the Company.

 

“Opinion of Counsel” means
a written opinion from legal counsel who may be an employee of or counsel for the Company, or other counsel reasonably acceptable
to the Trustee.

 

“open of business” means
9:00 a.m., New York City time.

 

“Person” means any individual,
corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization
or government or other agency or political subdivision thereof.

 

“Purchase Notice” means
a Purchase Notice in the form set forth in the Securities.

 

“record date” means, unless
the context requires otherwise, with respect to any dividend, distribution or other transaction or event in which the holders of
Common Stock (or other security) have the right to receive any cash, securities or other property or in which Common Stock (or
other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed
for determination of shareholders entitled to receive such cash, securities or other property (whether such date is fixed by the
Board of Directors or by statute, contract or otherwise).

 

“Record Date” for interest
payable in respect of any Security on any Interest Payment Date means May 15 or November 15 (whether or not a Business Day), as
the case may be, immediately preceding such Interest Payment Date.

 

“Registration Statement”
means a shelf registration statement pursuant to Rule 415 under the Securities Act registering the resale of all shares of Common
Stock issued or issuable upon conversion of the Securities.

 

“Responsible Officer” shall
mean, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee
with direct responsibility for the administration of this Indenture and also means, with respect to a particular matter, any other
officer to whom such matter is referred because of such Person’s knowledge of and familiarity with the particular subject.

 

“Restricted Security” means
a Security that constitutes a “restricted security” within the meaning of Rule 144(a)(3) under the Securities
Act; provided, however, that the Trustee shall be entitled to request, and conclusively rely on, an Opinion of Counsel
with respect to whether any Security constitutes a Restricted Security.

 

“Restricted Subsidiary”
means any Subsidiary of the Company other than an Unrestricted Subsidiary.

 

    	8

    	 

    

“Rights Agreement” means
that certain Rights Agreement between the Company and Computershare Trust Company, N.A., as rights agent (successor to SunTrust
Bank), dated May 25, 2004, as amended on November 3, 2006, August 2, 2007 and November 3, 2009, and as the same may be further
amended, supplemented or superseded.

 

“Rule 144A” means
Rule 144A under the Securities Act.

 

“Sale and Leaseback Transaction”
means a transaction whereby a Person sells or otherwise transfers assets or properties and then or thereafter leases such assets
or properties or any part thereof or any other assets or properties which such Person intends to use for substantially the same
purpose or purposes as the assets or properties sold or otherwise transferred.

 

“Scheduled Trading Day”
means, with respect to shares of Common Stock or any other security, a day that is scheduled to be a Trading Day on the primary
United States national securities exchange or market on which shares of Common Stock or the relevant securities are listed or admitted
for trading. If shares of Common Stock or the relevant securities are not so listed or admitted for trading, “Scheduled Trading
Day” shall mean any Business Day.

 

“SEC” means the Securities
and Exchange Commission.

 

“Securities” means the
10.00% Convertible Senior Notes due 2018 issued by the Company pursuant to this Indenture.

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Securities Agent” means
any Registrar, Paying Agent, Conversion Agent or co-Registrar or co-agent.

 

“Significant Subsidiary”
with respect to any Person means any “subsidiary” (as defined in Rule 1-02(x) of Regulation S-X under the Exchange
Act) of such Person that constitutes a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation
S-X under the Exchange Act.

 

“Subsidiary” means (i)
a corporation a majority of whose Capital Stock with voting power, under ordinary circumstances, to elect directors is at the time,
directly or indirectly, owned by the Company, by one or more subsidiaries of the Company or by the Company and one or more of its
subsidiaries or (ii) any other Person (other than a corporation) in which the Company, one or more of its subsidiaries, or the
Company and one or more of its subsidiaries, directly or indirectly, at the date of determination thereof, own at least a majority
ownership interest.

 

“Subsidiary Guarantee”
means any Guarantee of the obligations of the Company under this Indenture and the Securities by any Subsidiary Guarantor.

 

“Subsidiary Guarantor”
means each Restricted Subsidiary (other than a Foreign Subsidiary) of the Company on the Issue Date, and any other Restricted Subsidiary
of the Company which provides a Subsidiary Guarantee of the Company’s obligations under this Indenture and the Securities
pursuant to Section 4.10 or otherwise.

 

    	9

    	 

    

“Termination of Trading”
shall be deemed to occur if shares of Common Stock (or other common stock into which the Securities are then convertible) are not
listed for trading on The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of
their respective successors).

 

“TIA” means the Trust Indenture
Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as amended and in effect from time to time.

 

“Trade Payables” means,
with respect to any Person, any accounts payable or any other indebtedness or monetary obligation to trade creditors created, assumed
or Guaranteed by such Person or any of its Subsidiaries arising in the ordinary course of business in connection with the acquisition
of goods or services.

 

“Trading Day” means, with
respect to shares of Common Stock or any other security, a day during which (i) trading in shares of Common Stock or such other
security generally occurs, and (ii) a Market Disruption Event has not occurred; provided that if shares of Common Stock
or such other security is not listed for trading or quotation on or by any exchange, bureau or other organization, “Trading
Day” shall mean any Business Day.

 

“Trustee” means the party
named as such in this Indenture until a successor replaces it in accordance with the provisions hereof and thereafter means the
successor.

 

“Unrestricted Subsidiary”
means (1) any Subsidiary of the Company that at the time of determination shall be designated an Unrestricted Subsidiary by
the Board of Directors in the manner provided below and (2) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors
may designate any Restricted Subsidiary (including any newly acquired or newly formed Subsidiary of the Company) to be an Unrestricted
Subsidiary unless (i) such Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property of, the Company or any
Restricted Subsidiary or (ii) such Subsidiary guarantees the 2019 Notes, the Existing Revolving Credit Facility or any refinancing
of such Indebtedness after any such designation. The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary. Any such designation by the Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee
a copy of the Board Resolution giving effect to such designation.

 

“Volume-Weighted Average Price”
per share of Common Stock on any Trading Day means such price as displayed on Bloomberg (or any successor service) page JRCC.UQ
<equity> AQR in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such Trading Day, or, if such
price is not available, the market value per share of Common Stock on such Trading Day as determined by a nationally recognized
investment banking firm retained for this purpose by the Company.

 

“Voting Stock” of any Person
means the total outstanding voting power of all classes of the Capital Stock of such Person entitled to vote generally in the election
of directors of such Person.

 

    	10

    	 

    

 

 

SECTION
1.02.        Other Definitions.

 

	Term	Defined in Section
	“Additional Interest Notice”	4.09(e)
	“Bankruptcy Law”	6.01
	“Business Day”	14.07
	“Claiming Guarantor”	13.02
	“Clause A Distribution”	10.06(c)
	“Clause B Distribution”	10.06(c)
	“Clause C Distribution”  	10.06(c)
	“Common Stock Private Placement Legend”	2.17
	“Contributing Party”	13.02
	“Conversion Agent”	2.03
	“Custodian”  	6.01
	“Distributed Property”	10.06(c)
	“Event of Default”	6.01
	“Equity Conditions”	10.5(c)
	“Equity Conditions Measuring Period”	10.15(c)
	“Fundamental Change Notice”	3.02(b)
	“Fundamental Change Repurchase Date”	3.02(a)
	“Fundamental Change Repurchase Price”	3.02(a)
	“Fundamental Change Repurchase Right”	3.02(a)
	“Guaranteed Indebtedness”	4.10
	“Global Security”	2.01
	“Issuer’s Conversion Date”	10.15(b)
	“Issuer’s Conversion Notice”	10.15(b)
	“Issuer’s Conversion Notice Date”	10.15(b)
	“Issuer’s Conversion Option”	10.15(a)
	“Issuer’s Conversion Price”	10.15(a)
	“Legal Holiday”	14.07
	“Listed Stock Business Combination”	1.01
	“Maximum Share Limitation”	10.02(a)
	“Merger Event”	10.12
	“Notice of Default”	6.01
	“Participants”	2.15(a)
	“Paying Agent”	2.03
	“Physical Securities”	2.01
	“Reference Property”	10.12
	“Registrar”	2.03
	“Registration Default”	4.09(c)
	“Registration Default Interest”	4.09(c)
	“Repurchase Upon Fundamental Change”	3.02(a)

    	11

    	 

    

 

 

	“Resale Restriction Termination Date”	2.17
	“Security Private Placement Legend”	2.17
	“Spin-Off”	10.06(c)
	“Trigger Event”	10.06(c)

 

 

SECTION
1.03.        Trust Indenture
Act.  (a) Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by reference in and made
a part of this Indenture. This Indenture shall also include those provisions of the TIA that would be required to be included herein
by the provisions of the TIA.

 

(b)              
The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC;

“indenture securities” means the
Securities;

“indenture security holder” means
a Securityholder or a Holder;

“indenture to be qualified” means
this Indenture;

“indenture trustee” or “institutional
trustee” means the Trustee; and

“obligor” on
the indenture securities means the Company or any successor.

 

(c)               
All other terms used in this Indenture that are defined by the TIA, defined by the TIA by reference to another statute or
defined by SEC rule under the TIA and not otherwise defined herein have the meanings so assigned to them.

 

SECTION
1.04.        Rules of
Construction. Unless the context otherwise requires:

 

(a)               
a term has the meaning assigned to it;

 

(b)              
an accounting term not otherwise defined has the meaning assigned to it in accordance with U.S. generally accepted accounting
principles in effect from time to time;

 

(c)               
“or” is not exclusive;

 

(d)              
“including” means “including without limitation”;

 

(e)               
words in the singular include the plural and in the plural include the singular;

 

(f)               
provisions apply to successive events and transactions;

 

(g)              
the term “interest” means any interest payable under the terms of the Securities, including Additional
Interest, if any, payable pursuant to Sections 4.09(a), 4.09(b), 4.09(c) and 6.02(b), unless the context otherwise
requires;

 

(h)              
the term “principal” means the principal of any Security payable under the terms of such Securities,
unless the context otherwise requires;

 

    	12

    	 

    

 

 

(i)                
“herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not
to any particular Article, Section or other subdivision of this Indenture; and

 

(j)                
references to currency shall mean the lawful currency of the United States of America, unless the context requires otherwise.

 

ARTICLE
II

The Securities

 

SECTION
2.01.        Form and
Dating. The Securities and the Trustee’s certificate of authentication shall be substantially in the form set forth in
Exhibit A, which is incorporated in and forms a part of this Indenture. The Securities may have notations, legends or
endorsements required by law, stock exchange rule or usage; provided that such notations, legends or endorsements are in
a form reasonably acceptable to the Company. Each Security shall be dated the date of its authentication.

 

Securities offered and sold in reliance on
Rule 144A shall be issued initially in the form of one or more Global Securities, substantially in the form set forth in
Exhibit A (the “Global Security”), deposited with the Trustee, as custodian for the Depositary, registered
in the name of the Depositary or a nominee thereof, duly executed by the Company and authenticated by the Trustee as hereinafter
provided and bearing the legends set forth in Exhibits B-1A and B-2. The aggregate principal amount of the Global
Security may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the
Depositary, as hereinafter provided; provided that except as set forth in Section 2.02, the aggregate principal
amount of the Global Security or Securities shall not exceed $123,261,000.

 

Securities issued in exchange for interests
in a Global Security pursuant to Section 2.15 may be issued in the form of permanent certificated Securities in registered
form in substantially the form set forth in Exhibit A (the “Physical Securities”) and, if applicable, bearing
any legends required by Section 2.17.

 

SECTION
2.02.        Execution
and Authentication. One duly authorized Officer shall sign the Securities for the Company by manual or facsimile signature.

 

A Security’s validity shall not be affected
by the failure of an Officer whose signature is on such Security to hold, at the time the Security is authenticated, the same office
at the Company.

 

A Security shall not be valid until duly authenticated
by the manual or facsimile signature of the Trustee. The signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

 

Upon a written order of the Company signed
by one Officer of the Company, the Trustee shall authenticate Securities for original issue in the aggregate principal amount of
$123,261,000. The aggregate principal amount of Securities outstanding at any time may not exceed $123,261,000 except as provided
in this Section 2.02.

 

    	13

    	 

    

The Company may, without the consent of Holders
of the Securities, increase the aggregate principal amount of Securities by issuing additional Securities in the future on the
same terms and conditions, except for any difference in (i) the issue date, (ii) the issue price, (iii) the initial date from which
interest begins to accrue and (iv) if applicable, the existence of transfer restrictions pursuant to the Securities Act; provided
that if such additional Securities have the same CUSIP number as the Securities initially issued hereunder, such additional Securities
must constitute part of the same issue as the Securities initially issued hereunder for U.S. Federal income tax purposes. The Securities
initially issued hereunder and any such additional Securities shall rank equally and ratably and shall be treated as a single series
of debt securities for all purposes under this Indenture; and provided further, that the Company shall not issue such additional
Securities if, after giving effect to such issuance, the number of shares of Common Stock required to settle conversion of all
outstanding Securities would exceed the Maximum Share Limitation unless, prior to or concurrently with such issuance, the Company
amends or supplements this Indenture (which amendment or supplement, for the avoidance of doubt, shall not require the consent
of the Holders) to increase the Maximum Share Limitation to an amount sufficient to accommodate conversion of all outstanding Securities
after giving effect to such issuance.

 

Upon a written order of the Company signed
by two (2) Officers or by an Officer and an Assistant Treasurer of the Company, the Trustee shall authenticate Securities not bearing
the Security Private Placement Legend to be issued to the transferees when sold pursuant to an effective registration statement
under the Securities Act as set forth in Section 2.16(b).

 

The Trustee shall act as the initial authenticating
agent. Thereafter, the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating
agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee
includes authentication by such authenticating agent. An authenticating agent so appointed has the same rights as a Securities
Agent to deal with the Company and its Affiliates.

 

If a written order of the Company pursuant
to this Section 2.02 has been, or simultaneously is, delivered, any instructions by the Company to the Trustee with
respect to endorsement, delivery or redelivery of a Security issued in global form shall be in writing but need not comply with
Section 14.04 hereof and need not be accompanied by an Opinion of Counsel.

 

The Securities shall be issuable only in registered
form without interest coupons and only in denominations of $1,000 principal amount and any integral multiple thereof.

 

SECTION
2.03.        Registrar,
Paying Agent and Conversion Agent. The Company shall maintain, or shall cause to be maintained, (i) an office or agency in
The Borough of Manhattan, The City of New York, where Securities may be presented for registration of transfer or for exchange
(“Registrar”), (ii) an office or agency in The Borough of Manhattan, The City of New York, where Securities
may be presented for payment (“Paying Agent”) and (iii) an office or agency in The Borough of Manhattan, The
City of New York, where Securities may be presented for conversion (“Conversion Agent”). The Registrar
shall keep a register of the Securities and of their transfer and exchange. The Company may appoint or change one or more co-Registrars,
one or more additional paying agents and one or more additional conversion agents without notice and may act in any such capacity
on its own behalf. The term “Registrar” includes any co-Registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Conversion Agent” includes any additional conversion agent.

 

    	14

    	 

    

The Company shall enter into an appropriate
agency agreement with any agent not a party to this Indenture. Such agency agreement shall implement the provisions of this Indenture
that relate to such agent. The Company shall notify the Trustee of the name and address of any agent not a party to this Indenture.
If the Company fails to maintain a Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such.

 

The Company initially appoints the Trustee
as Paying Agent, Registrar and Conversion Agent.

 

SECTION
2.04.        Paying
Agent to Hold Money in Trust. Each Paying Agent shall hold in trust for the benefit of the Securityholders or the Trustee all
moneys held by the Paying Agent for the payment of the Securities, and shall notify the Trustee of any Default by the Company in
making any such payment. While any such Default continues, the Trustee may require a Paying Agent to pay all money held by it to
the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and account for any
funds so paid by it. Upon payment over to the Trustee, the Paying Agent shall have no further liability for such money. If the
Company acts as Paying Agent, it shall segregate and hold as a separate trust fund all money held by it as Paying Agent.

 

SECTION
2.05.        Securityholder
Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of
the names and addresses of Securityholders. If the Trustee is not the Registrar, the Company shall furnish, or shall cause to be
furnished, to the Trustee before each Interest Payment Date and at such other times as the Trustee may request in writing a list,
in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders appearing
in the security register of the Registrar.

 

SECTION
2.06.        Transfer
And Exchange. Subject to Sections 2.15 and 2.16 hereof, where Securities are presented to the Registrar
with a request to register their transfer or to exchange them for an equal principal amount of Securities of other authorized denominations,
the Registrar shall register the transfer or make the exchange if its requirements for such transaction are met. To permit registrations
of transfer and exchanges, the Trustee shall authenticate Securities at the Registrar’s request or upon the Trustee’s
receipt of a Company Order therefor. The Company, the Registrar or the Trustee, as the case may be, shall not be required to register
the transfer of or exchange any Security for which a Purchase Notice has been delivered, and not withdrawn, in accordance with
this Indenture, except to the unrepurchased portion of Securities being repurchased in part.

 

No service charge shall be made for any transfer,
exchange or conversion of Securities, but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge that may be imposed in connection with any transfer, exchange or conversion of Securities, other than exchanges
pursuant to Sections 2.10, 3.02, 9.05 or 10.02, not involving any transfer.

 

    	15

    	 

    

 

 

SECTION
2.07.        Replacement
Securities. If the Holder of a Security claims that the Security has been mutilated, lost, destroyed or wrongfully taken, the
Company shall issue and the Trustee shall authenticate, at the Holder’s expense, a replacement Security upon surrender to
the Trustee of the mutilated Security, or upon delivery to the Trustee of evidence of the loss, destruction or theft of the Security
satisfactory to the Trustee and the Company. In the case of a lost, destroyed or wrongfully taken Security, if required by the
Trustee or the Company, indemnity (including in the form of a bond) must be provided by the Holder that is reasonably satisfactory
to the Trustee and the Company to indemnify and hold harmless the Company, the Trustee or any Securities Agent from any loss which
any of them may suffer if such Security is replaced.

 

In case any such mutilated, lost, destroyed
or wrongfully taken Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing
a new Security, pay such Security when due.

 

Every replacement Security is an additional
obligation of the Company only as provided in Section 2.08.

 

SECTION
2.08.        Outstanding
Securities. Securities outstanding at any time are all the Securities authenticated by the Trustee except for those converted,
those canceled by it, those delivered to it for cancelation and those described in this Section 2.08 as not outstanding.
Except to the extent provided in Section 2.09, a Security does not cease to be outstanding because the Company or one
of its Subsidiaries or Affiliates holds the Security.

 

If a Security is replaced pursuant to Section 2.07,
it ceases to be outstanding unless the Trustee receives proof satisfactory to it, or a court holds, that the replaced Security
is held by a protected purchaser.

 

If the Paying Agent (other than the Company)
holds on a Fundamental Change Repurchase Date or Maturity Date, money sufficient to pay the aggregate Fundamental Change Repurchase
Price or principal amount (plus accrued and unpaid interest, if any) as the case may be, with respect to all Securities to be purchased
or paid on such Fundamental Change Repurchase Date or Maturity Date, as the case may be, in each case, payable as herein provided
on such Fundamental Change Repurchase Date or Maturity Date, then (unless there shall be a Default in the payment of such aggregate
Fundamental Change Repurchase Price or principal amount, or of such accrued and unpaid interest), except as otherwise provided
herein, on and after such date such Securities shall be deemed to be no longer outstanding, interest on such Securities shall cease
to accrue, and such Securities shall be deemed paid whether or not such Securities are delivered to the Paying Agent. Thereafter,
all rights of the Holders of such Securities shall terminate with respect to such Securities, other than the right to receive the
Fundamental Change Repurchase Price or principal amount, as the case may be, plus, if applicable, such accrued and unpaid interest,
in accordance with this Indenture.

 

    	16

    	 

    

 

If a Security is converted in accordance with
Article X then, from and after the time of such conversion on the Conversion Date, such Security shall cease to be outstanding,
and interest, if any, shall cease to accrue on such Security unless there shall be a Default in the delivery of the consideration
deliverable hereunder upon such conversion.

 

SECTION
2.09.        Securities
Held by the Company or an Affiliate. In determining whether the Holders of the required aggregate principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the Company or any of its Subsidiaries or Affiliates shall
be considered as though not outstanding, except that, for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Securities which a Responsible Officer of the Trustee actually knows are
so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be considered to be outstanding
for purposes of this Section 2.09 if the pledgee establishes, to the satisfaction of the Trustee, the pledgee’s
right so to concur with respect to such Securities and that the pledgee is not, and is not acting at the direction or on behalf
of, the Company, any other obligor on the Securities, an Affiliate of the Company or an Affiliate of any such other obligor. In
case of a dispute as to whether the pledgee has established the foregoing, any decision by the Trustee taken upon the advice of
counsel shall provide full protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly
an Officer’s Certificate listing and identifying all Securities, if any, known by the Company to be owned or held by or for
the account of any of the above described Persons; and, subject to Section 7.01 and Section 7.02,
the Trustee shall be entitled to accept such Officer’s Certificate as conclusive evidence of the facts therein set forth
and of the fact that all Securities not listed therein are outstanding for the purpose of any such determination.

 

SECTION
2.10.        Temporary
Securities. Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall, upon receipt
of a Company Order therefor, authenticate temporary Securities. Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay,
the Company shall prepare and the Trustee, upon receipt of a Company Order therefor, shall authenticate definitive Securities in
exchange for temporary Securities. Until so exchanged, each temporary Security shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities, and such temporary Security shall be exchangeable for definitive Securities in accordance
with the terms of this Indenture.

 

SECTION
2.11.        Cancelation.
The Company at any time may deliver Securities to the Trustee for cancelation. The Registrar, Paying Agent and Conversion Agent
shall forward to the Trustee any Securities surrendered to them for transfer, exchange, payment or conversion. The Trustee shall
promptly cancel all Securities surrendered for transfer, exchange, payment, conversion or cancelation in accordance with its customary
procedures. The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancelation
or that any Securityholder has converted pursuant to Article X. All canceled Securities held by the Trustee shall be
disposed of in accordance with its customary procedure for the disposal of canceled securities, and certification of such disposal
shall be delivered by the Trustee to the Company unless the Company shall, by a Company Order, direct that canceled Securities
be returned to it.

 

    	17

    	 

    

  

SECTION
2.12.        Defaulted
Interest. If and to the extent the Company defaults in a payment of interest on the Securities, the Company shall pay in cash
the defaulted interest in any lawful manner plus, to the extent not prohibited by applicable statute or case law, interest on
such defaulted interest at the rate provided in the Securities. The Company may pay the defaulted interest (plus interest on such
defaulted interest) to the Persons who are Securityholders on a subsequent special record date. The Company shall fix such special
record date and payment date. At least fifteen (15) calendar days before the special record date, the Company shall mail to Securityholders
a notice that states the special record date, payment date and amount of interest to be paid. Upon the due payment in full, interest
shall no longer accrue on such defaulted interest pursuant to this Section 2.12.

 

SECTION
2.13.        CUSIP Numbers.
The Company in issuing the Securities may use one or more “CUSIP” numbers, and, if so, the Trustee shall use the CUSIP
numbers in notices as a convenience to Holders; provided, however, that no representation is hereby deemed to be
made by the Trustee as to the correctness or accuracy of the CUSIP numbers printed on the notice or on the Securities; provided
further that reliance may be placed only on the other identification numbers printed on the Securities, and the effectiveness
of any such notice shall not be affected by any defect in, or omission of, such CUSIP numbers. The Company shall promptly notify
the Trustee of any change in the CUSIP numbers.

 

SECTION
2.14.        Deposit
of Moneys. Prior to 11:00 A.M., New York City time, on each Interest Payment Date, the Maturity Date or any Fundamental
Change Repurchase Date, the Company shall deposit with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust in accordance with Section 2.04) money, in funds immediately available on such date, sufficient to
make cash payments, if any, due on such Interest Payment Date, the Maturity Date or such Fundamental Change Repurchase Date, as
the case may be, in a timely manner which permits the Paying Agent to remit payment to the Holders on such Interest Payment Date,
the Maturity Date or such Fundamental Change Repurchase Date, as the case may be.

 

If any Interest Payment Date, the Maturity
Date or any Fundamental Change Repurchase Date falls on a date that is not a Business Day, the payment due on such Interest Payment
Date, the Maturity Date or such Fundamental Change Repurchase Date, as the case may be, shall be postponed until the next succeeding
Business Day, and no interest or other amount shall accrue as a result of such postponement.

 

SECTION
2.15.        Book-Entry
Provisions for Global Securities. (a) The Global Securities initially shall (1) be registered in the name of the Depositary
or the nominee of the Depositary, (2) be delivered to the Trustee as custodian for the Depositary and (3) bear legends as set forth
in Section 2.17.

 

    	18

    	 

    

Members of, or participants in, the Depositary
(“Participants”) shall have no rights under this Indenture with respect to any Global Security held on their
behalf by the Depositary, or the Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or
the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair,
as between the Depositary and Participants, the operation of customary practices governing the exercise of the rights of a Holder
of any Security.

 

(b)              
Transfers of Global Securities shall be limited to transfers in whole, but not in part, to the Depositary, its successors
or their respective nominees. In addition, one or more Physical Securities shall be transferred to beneficial owners, as identified
by the Depositary, in exchange for their beneficial interests in Global Securities only if (4) the Depositary notifies the Company
that the Depositary is unwilling or unable to continue as depositary for any Global Security, or the Depositary ceases to be a
“clearing agency” registered under Section 17A of the Exchange Act, and, in either case, a successor Depositary
is not appointed by the Company within ninety (90) days of such notice or cessation or (5) an Event of Default has occurred and
is continuing and the Registrar has received a written request from the beneficial owner of the relevant Securities to issue Physical
Securities.

 

(c)               
In connection with the transfer of a Global Security in its entirety to beneficial owners pursuant to Section 2.15(b),
such Global Security shall be deemed to be surrendered to the Trustee for cancelation, and the Company shall execute, and the Trustee
shall upon written instructions from the Company authenticate and deliver, to each beneficial owner identified by the Depositary
in exchange for its beneficial interest in such Global Security, an equal aggregate principal amount of Physical Securities of
authorized denominations.

 

(d)              
Any Physical Security delivered in exchange for an interest in a Global Security that bears the Security Private Placement
Legend pursuant to Section 2.15(b) shall, except as otherwise provided by Section 2.16, bear the Security
Private Placement Legend.

 

(e)               
The Holder of any Global Security may grant proxies and otherwise authorize any Person, including Participants and Persons
that may hold interests through Participants, to take any action which a Holder is entitled to take under this Indenture or the
Securities.

 

(f)               
The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on
the transfer of any interest in any Securities imposed under this Indenture or under applicable law (including any transfers between
or among Participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates
and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of,
this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

(g)              
Neither the Trustee nor any Securities Agent shall have any responsibility for any actions taken or not taken by the Depositary.

 

SECTION
2.16.        Special
Transfer Provisions. (a) Restrictions on Transfer and Exchange of Global Securities. Notwithstanding any other provisions
of this Indenture, but except as provided in Section 2.15(b), a Global Security may not be transferred except as a
whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of
the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.

 

    	19

    	 

    

 

 

(b)              
Security Private Placement Legend. Upon the transfer, exchange or replacement of Securities not bearing the Security
Private Placement Legend, the Registrar or co-Registrar shall deliver Securities that do not bear the Security Private Placement
Legend. Upon the transfer, exchange or replacement of Securities bearing the Security Private Placement Legend, the Registrar or
co-Registrar shall deliver only Securities that bear the Security Private Placement Legend unless (1) the requested transfer is
after the Resale Restriction Termination Date, (2) there is delivered to the Trustee and the Company an opinion of counsel reasonably
satisfactory to the Company and addressed to the Company to the effect that neither such legend nor the related restrictions on
transfer are required in order to maintain compliance with the provisions of the Securities Act or (3) such Security has been sold
pursuant to an effective registration statement under the Securities Act and the Holder selling such Securities has delivered to
the Registrar or co-Registrar a notice in the form of Exhibit C hereto. Upon any sale or transfer of a beneficial interest
in the Securities in connection with which the Security Private Placement Legend will be removed in accordance with this Indenture,
the Trustee shall increase the principal amount of the Global Security that does not constitute a Restricted Security by the principal
amount of such sale or transfer and likewise reduce the principal amount of the Global Security that does constitute a Restricted
Security.

 

(c)               
General. By its acceptance of any Security or share of Common Stock bearing the Security Private Placement Legend
or the Common Stock Private Placement Legend, each holder thereof acknowledges the restrictions on transfer of such security set
forth in this Indenture and in the Security Private Placement Legend or Common Stock Private Placement Legend, as applicable, and
agrees that it will transfer such security only as provided in this Indenture and as permitted by applicable law.

 

The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 2.15 or this Section 2.16. The Company
shall have the right to inspect and make copies of all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable written notice to the Registrar.

 

(d)              
Transfers of Securities Held by the Company or its Affiliates. Any Securities or shares of Common Stock issued upon
the conversion of Securities that are purchased or owned by the Company or any Affiliate thereof may not be resold by the Company
or such Affiliate unless registered under the Securities Act or resold pursuant to an exemption from the registration requirements
of the Securities Act in a transaction that results in such Securities or shares of Common Stock, as the case may be, no longer
being Restricted Securities.

 

(e)               
Repurchases. The Company may, to the extent permitted by law, repurchase the Securities in the open market
or by tender offer at any price or by private agreement without giving prior notice to Holders. Securities surrendered to the Trustee
for cancelation may not be reissued or resold and shall be promptly canceled pursuant to Section 2.11.

 

    	20

    	 

    

      
  

SECTION
2.17.        Restrictive
Legends. Each Global Security and Physical Security that constitutes a Restricted Security shall bear the legend (the “Security
Private Placement Legend”) as set forth in Exhibit B-1A on the face thereof until the later of (i) the date
that is one year after the last date of original issuance of such Securities, or such other period of time as permitted by Rule 144
under the Securities Act or any successor provision thereto, and (ii) such later date, if any, as may be required by applicable
law (such date, the “Resale Restriction Termination Date”). Each certificate representing shares of Common Stock
issued upon conversion of any Security, shall, if such shares constitute Restricted Securities, bear the legend (the “Common
Stock Private Placement Legend”) as set forth in Exhibit B-1B on the face thereof until (1) the Resale Restriction
Termination Date, (2) if requested by the Company, there is delivered to the Company an opinion of counsel reasonably acceptable
to the Company and addressed to the Company to the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with provision of the Securities Act or (3) there is an effective registration statement
under the Securities Act in respect of such shares of Common Stock.

 

Each Global Security shall also bear the legend
as set forth in Exhibit B-2.

 

SECTION
2.18.        Ranking.
The indebtedness of the Company arising under or in connection with this Indenture and every outstanding Security issued under
this Indenture from time to time constitutes and will constitute a senior unsecured obligation of the Company, ranking equally
with other existing and future senior unsecured indebtedness of the Company and ranking senior to any existing or future subordinated
indebtedness of the Company.

 

SECTION
2.19.        Sinking
Fund. No sinking fund is provided for the Securities.

 

ARTICLE III

Redemption and Repurchase

 

SECTION
3.01.        No Redemption.
The Securities shall not be redeemable at the option of the Company prior to the Maturity Date, and no sinking fund is provided
for the Securities.

 

SECTION
3.02.        Repurchase
at Option of Holder Upon a Fundamental Change.   (a) If a Fundamental Change occurs, each Holder of Securities shall have the
right (the “Fundamental Change Repurchase Right”), at such Holder’s option, to require the Company to
repurchase (a “Repurchase Upon Fundamental Change”) all of such Holder’s Securities (or portions thereof
that are integral multiples of $1,000 in principal amount), on a date selected by the Company (the “Fundamental Change
Repurchase Date”), which shall be no later than thirty five (35) days, nor earlier than twenty (20) days, after the
date the Fundamental Change Notice is mailed in accordance with Section 3.02(b), at a price, payable in cash, equal
to one hundred percent (100%) of the principal amount of the Securities (or portions thereof) to be so repurchased, plus accrued
and unpaid interest, if any, to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase
Price”), upon:

 

    	21

    	 

    

 

 

(i) delivery to the Company (if
it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for such purpose in the Fundamental Change
Notice, no later than the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, of
a Purchase Notice, in the form set forth in the Securities or any other form of written notice substantially similar thereto, in
each case, duly completed and signed, with appropriate signature guarantee, stating:

 

(1)
the certificate number(s) of the Securities which the Holder will deliver to be repurchased, if such Securities are Physical
Securities;

 

(2)
the principal amount of Securities to be repurchased, which must be $1,000 or an integral multiple thereof; and

 

(3)
that such principal amount of Securities are to be repurchased pursuant to the terms and conditions specified in this
Section 3.02; and

 

(ii) delivery to the Company (if
it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for such purpose in the Fundamental Change
Notice, at any time after the delivery of such Purchase Notice, of such Securities (together with all necessary endorsements) with
respect to which the Fundamental Change Repurchase Right is being exercised;

 

provided, however, that if such Fundamental Change
Repurchase Date is after a Record Date for the payment of an installment of interest and on or before the related Interest Payment
Date, then the full amount of accrued and unpaid interest, if any, to, but excluding, such Interest Payment Date shall be paid
on such Interest Payment Date to the Holder of record of such Securities at the close of business on such Record Date (without
any surrender of such Securities by such Holder), and the Fundamental Change Repurchase Price shall not include any accrued but
unpaid interest.

 

If such Securities are held in book-entry
form through the Depositary, the delivery of any Purchase Notice, Fundamental Change Notice or notice of withdrawal pursuant to
Section 3.02(b)(x) shall comply with applicable procedures of the Depositary.

 

Upon such delivery of Securities to the Company
(if it is acting as its own Paying Agent) or such Paying Agent, such Holder shall be entitled to receive, upon request, from the
Company or such Paying Agent, as the case may be, a nontransferable receipt of deposit evidencing such delivery.

 

Notwithstanding anything herein to the contrary,
any Holder that has delivered the Purchase Notice contemplated by this Section 3.02(a) to the Company (if it
is acting as its own Paying Agent) or to a Paying Agent designated by the Company for such purpose in the Fundamental Change Notice
shall have the right to withdraw such Purchase Notice by delivery, at any time prior to the close of business on the Business Day
immediately preceding the Fundamental Change Repurchase Date (or, if there shall be a Default in the payment of the Fundamental
Change Repurchase, at any time during which such Default is continuing), of a written notice of withdrawal to the Company (if acting
as its own Paying Agent) or the Paying Agent, which notice shall contain the information specified in Section 3.02(b)(x).

 

    	22

    	 

    

 

The Paying Agent shall promptly notify the
Company of the receipt by it of any Purchase Notice or written notice of withdrawal thereof.

 

(b)              
Within twenty (20) Business Days after the occurrence of a Fundamental Change, the Company shall mail, or cause to be mailed,
to all Holders of the Securities at their addresses shown in the register of the Registrar, and to beneficial owners as required
by applicable law, a notice (the “Fundamental Change Notice”) of the occurrence of such Fundamental Change and
the Fundamental Change Repurchase Right arising as a result thereof. The Company shall deliver a copy of the Fundamental Change
Notice to the Trustee and shall publicly release, through a reputable national newswire service, such Fundamental Change Notice.
Each Fundamental Change Notice shall state:

 

(i) the events causing the Fundamental
Change;

 

(ii) the date of such Fundamental
Change;

 

(iii) the Fundamental Change Repurchase
Date;

 

(iv) the last date on which the
Fundamental Change Repurchase Right may be exercised, which shall be the Business Day immediately preceding the Fundamental Change
Repurchase Date;

 

(v) the Fundamental Change Repurchase
Price;

 

(vi) the names and addresses of
the Paying Agent and the Conversion Agent;

 

(vii) the procedures which a Holder
must follow to exercise the Fundamental Change Repurchase Right;

 

(viii) that the Fundamental Change
Repurchase Price for any Security as to which a Purchase Notice has been given and not withdrawn will be paid as promptly as practicable,
but in no event after the later of such Fundamental Change Repurchase Date and the time of book-entry transfer or delivery of the
Security (together with all necessary endorsements); provided, however, that if such Fundamental Change Repurchase
Date is after a Record Date for the payment of an installment of interest and on or before the related Interest Payment Date, then
the accrued and unpaid interest, if any, to, but excluding, such Interest Payment Date will be paid on such Interest Payment Date
to the Holder of record of such Security at the close of business on such Record Date (without any surrender of such Securities
by such Holder) and the Fundamental Change Repurchase Price shall not include any accrued and unpaid interest;

 

(ix) that, except as otherwise
provided herein with respect to a Fundamental Change Repurchase Date that is after a Record Date for the payment of an installment
of interest and on or before the related Interest Payment Date, on and after such Fundamental Change Repurchase Date (unless there
shall be a Default in the payment of the Fundamental Change Repurchase Price), interest on Securities subject to Repurchase Upon
Fundamental Change will cease to accrue, and all rights of the Holders of such Securities shall terminate, other than the right
to receive, in accordance herewith, the Fundamental Change Repurchase Price;

 

    	23

    	 

    

 

 

(x) that a Holder will be entitled
to withdraw its election in the Purchase Notice prior to the close of business on the Business Day immediately preceding the Fundamental
Change Repurchase Date, or such longer period as may be required by law, by means of a letter or telegram, telex or facsimile transmission
(receipt of which is confirmed and promptly followed by a letter) setting forth (I) the name of such Holder, (II) a statement that
such Holder is withdrawing its election to have Securities purchased by the Company on such Fundamental Change Repurchase Date
pursuant to a Repurchase Upon Fundamental Change, (III) the certificate number(s) of such Securities to be so withdrawn, if such
Securities are Physical Securities, (IV) the principal amount of the Securities of such Holder to be so withdrawn, which amount
must be $1,000 or an integral multiple thereof and (V) the principal amount, if any, of the Securities of such Holder that remain
subject to the Purchase Notice delivered by such Holder in accordance with this Section 3.02, which amount must be
$1,000 or an integral multiple thereof; provided, however, that if there shall be a Default in the payment
of the Fundamental Change Repurchase Price, a Holder shall be entitled to withdraw its election in the Purchase Notice at any time
during which such Default is continuing;

 

(xi) the Conversion Rate and any
adjustments to the Conversion Rate that will result from such Fundamental Change;

 

(xii) that Securities with respect
to which a Purchase Notice is given by a Holder may be converted pursuant to Article X only if such Purchase Notice
has been withdrawn in accordance with this Section 3.02; and

 

(xiii) the CUSIP number or numbers,
as the case may be, of the Securities.

 

At the Company’s request, upon prior
notice reasonably acceptable to the Trustee, the Trustee shall mail such Fundamental Change Notice in the Company’s name
and at the Company’s expense; provided, however, that the form and content of such Fundamental Change
Notice shall be prepared by the Company.

 

No failure of the Company to give a Fundamental
Change Notice shall limit any Holder’s right pursuant hereto to exercise a Fundamental Change Repurchase Right.

 

(c)               
Subject to the provisions of this Section 3.02, the Company shall pay, or cause to be paid, the Fundamental
Change Repurchase Price with respect to each Security as to which the Fundamental Change Repurchase Right shall have been exercised
to the Holder thereof as promptly as practicable, but in no event later than the later of the Fundamental Change Repurchase Date
and the time of book-entry transfer or when such Security is surrendered to the Paying Agent; provided, however,
that if such Fundamental Change Repurchase Date is after a Record Date for the payment of an installment of interest and on or
before the related Interest Payment Date, then the accrued and unpaid interest, if any, to, but excluding, such Interest Payment
Date will be paid on such Interest Payment Date to the Holder of record of such Security at the close of business on such Record
Date and the Fundamental Change Repurchase Price shall not include any accrued and unpaid interest.

 

    	24

    	 

    

 

 

(d)              
The Company shall, in accordance with Section 2.14, deposit with a Paying Agent (or, if the Company is
acting as its own Paying Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds immediately
available on the Fundamental Change Repurchase Date, sufficient to pay the Fundamental Change Repurchase Price upon Repurchase
Upon Fundamental Change for all of the Securities that are to be repurchased by the Company on such Fundamental Change Repurchase
Date pursuant to a Repurchase Upon Fundamental Change. The Paying Agent shall return to the Company, as soon as practicable, any
money not required for that purpose.

 

(e)               
Once the Fundamental Change Notice and the Purchase Notice have been duly given in accordance with this Section 3.02,
the Securities to be repurchased pursuant to a Repurchase Upon Fundamental Change shall, on the Fundamental Change Repurchase Date,
become due and payable in accordance herewith, and, on and after such date (unless there shall be a Default in the payment of the
Fundamental Change Repurchase Price), except as otherwise provided herein with respect to a Fundamental Change Repurchase Date
that is after a Record Date for the payment of an installment of interest and on or before the related Interest Payment Date, such
Securities shall cease to bear interest (whether or not book-entry transfer of the Securities has been made or the Securities have
been delivered to the Paying Agent), and all rights of the relevant Holders of such Securities shall terminate, other than the
right to receive, in accordance herewith, such consideration and any other applicable rights under those sections set forth in
the proviso in Section 8.01.

 

(f)               
Securities with respect to which a Purchase Notice has been duly delivered in accordance with this Section 3.02
may be converted pursuant to Article X only if such Purchase Notice has been withdrawn in accordance with this Section 3.02.

 

(g)              
If any Security shall not be paid upon book-entry transfer or surrender thereof for Repurchase Upon Fundamental Change,
the principal of, and accrued and unpaid interest on, such Security shall, until paid, bear interest, payable in cash, at the rate
borne by such Security on the principal amount of such Security, and such Security shall be convertible pursuant to Article X
if any Purchase Notice with respect to such Security is withdrawn pursuant to this Section 3.02.

 

(h)              
Any Security which is to be submitted for Repurchase Upon Fundamental Change only in part shall be delivered pursuant to
this Section 3.02 (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or its attorney duly authorized
in writing, with a medallion guarantee), and the Company shall promptly execute, and the Trustee shall promptly authenticate and
make available for delivery to the Holder of such Security without service charge, a new Security or Securities, of any authorized
denomination as requested by such Holder, of the same tenor and in aggregate principal amount equal to the portion of such Security
not duly submitted for Repurchase Upon Fundamental Change.

 

    	25

    	 

    

 

 

(i)                
Notwithstanding anything herein to the contrary, except in the case of an acceleration resulting from a Default by the Company
in the payment of the Fundamental Change Repurchase Price, there shall be no purchase of any Securities pursuant to this Section 3.02
on a Fundamental Change Repurchase Date if, on such date, the principal amount of the Securities shall have been accelerated in
accordance with this Indenture and such acceleration shall not have been rescinded on or prior to such date in accordance with
this Indenture. The Paying Agent will promptly return to the respective Holders thereof any Securities held by it during the continuance
of such an acceleration.

 

(j)                
In connection with any Repurchase Upon Fundamental Change, the Company shall, to the extent applicable (i) comply with all
applicable tender offer rules under the Exchange Act, including Rule 13e-4 and Regulation 14E thereunder, and with all other
applicable laws; (ii) file a Schedule TO or any other schedules required under the Exchange Act or any other applicable laws; and
(iii) otherwise comply with all applicable United States Federal and state securities laws in connection with any offer by the
Company to purchase the Securities.

 

ARTICLE IV

Covenants

 

SECTION
4.01.        Payment
of Securities. The Company shall pay all amounts due with respect to the Securities on the dates and in the manner provided
in the Securities and this Indenture. All such amounts shall be considered paid on the date due if the Paying Agent holds (or,
if the Company is acting as Paying Agent, the Company has segregated and holds in trust in accordance with Section 2.04)
on that date money sufficient to pay the amount then due with respect to the Securities (unless there shall be a Default in the
payment of such amounts to the respective Holder(s)). The Company will pay, in money of the United States that at the time of payment
is legal tender for payment of public and private debts, all amounts due in cash with respect to the Securities, which amounts
shall be paid (i) in the case of a Global Security, by wire transfer of immediately available funds to the account designated by
the Depositary or its nominee; (ii) in the case of a Physical Security by a Holder of more than five million dollars ($5,000,000)
in aggregate principal amount of Securities, by wire transfer of immediately available funds to the account specified by such Holder
or, if such Holder does not specify an account, by mailing a check to the address of such Holder set forth in the register of the
Registrar; and iii) in the case of a Physical Security that is held by a Holder of five million dollars ($5,000,000) or less in
aggregate principal amount of Securities, by mailing a check to the address of such Holder set forth in the register of the Registrar.

 

The Company shall pay, in cash, interest on
any overdue amount (including, to the extent permitted by applicable law, overdue interest) at the rate borne by the Securities.

 

SECTION
4.02.        Maintenance
of Office or Agency. The Company will maintain, or cause to be maintained, in The Borough of Manhattan, The City of New York,
an office or agency (which may be an office of the Trustee or an Affiliate of the Trustee, Registrar or co-Registrar) where Securities
may be surrendered for registration of transfer or exchange, payment or conversion. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail
to maintain, or fail to cause to maintain, any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations and surrenders may be made or served at the Corporate Trust Office of the Trustee. The Company will
maintain, or cause to be maintained, in The Borough of Manhattan, The City of New York, an office or agency where notices
and demands to or upon the Company in respect of the Securities and this Indenture may be served, provided that such office or
agency may instead be at the principal office of the Company located in the United States.

 

    	26

    	 

    

The Company may also from time to time designate
one or more other offices or agencies where the Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain an office or agency in The Borough of Manhattan, The City of New York
for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency.

 

The Company hereby designates the Corporate
Trust Office of the Trustee as an agency of the Company in accordance with Section 2.03.

 

SECTION
4.03.        Rule 144A
Information and Annual Reports. (a) At any time when the Company is not subject to the reporting requirements of the Exchange
Act, the Company shall promptly provide to the Trustee and shall, upon request, provide to any Holder, beneficial owner or prospective
purchaser of Securities or shares of Common Stock issued upon conversion of any Securities, the information required to be delivered
pursuant to Rule 144A(d)(4) under the Securities Act to facilitate the resale of such Securities or shares of Common Stock
pursuant to Rule 144A. The Company shall take such further action as any Holder or beneficial holder of such Securities or
shares of Common Stock may reasonably request in writing to the extent required from time to time to enable such Holder or beneficial
holder to sell its Securities or shares of Common Stock in accordance with Rule 144A, as such rule may be amended from time
to time.

 

(b)              
The Company shall deliver to the Trustee, no later than the time such report is required to be filed with the SEC pursuant
to the Exchange Act, a copy of each report the Company is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act (after giving effect to any grace period provided by Rule 12b-25 under the Exchange Act), and shall otherwise
comply with the requirements of TIA § 314(a); provided, however, that each such report will be deemed
to be so delivered to the Trustee if the Company files such report with the SEC through the SEC’s EDGAR database no later
than the time such report is required to be filed with the SEC pursuant to the Exchange Act (taking into account any applicable
grace periods provided thereunder).

 

(c)               
The Company shall promptly furnish to the Trustee copies of its annual report to shareholders, containing audited financial
statements, and any other financial reports which it furnishes to its shareholders.

 

(d)              
Delivery of such reports, information and documents to the Trustee pursuant to this Section 4.03 is for informational
purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).

 

    	27

    	 

    

 

 

SECTION
4.04.        Compliance
Certificate. The Company shall deliver to the Trustee, within one hundred and twenty (120) calendar days after the end of each
fiscal year of the Company, a certificate of two (2) or more Officers stating whether or not the signatories to such Officer’s
Certificate have actual knowledge of any Default or Event of Default by the Company in performing any of its obligations under
this Indenture or the Securities. If such signatories do know of any such Default or Event of Default, then such certificate shall
describe the Default or Event of Default and its status.

 

SECTION
4.05.        Stay, Extension
and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it will 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 wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities; and
the Company (in each case, to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, 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 has been enacted.

 

SECTION
4.06.        Corporate
Existence. Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence, in accordance with its organizational documents, and the rights (charter and
statutory), licenses and franchises of the Company; provided, however, that the Company shall not be required
to preserve any such right, license or franchise if in the judgment of the Board of Directors such preservation or existence is
not material to the conduct of business of the Company.

 

SECTION
4.07.        Notice
of Default. Upon the Company becoming aware of the occurrence of any Default or Event of Default, the Company shall give prompt
written notice of such Default or Event of Default, and any remedial action proposed to be taken, to the Trustee.

 

SECTION
4.08.        Further
Instruments and Acts. Upon request of the Trustee, the Company shall execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture.

 

SECTION
4.09.        Additional
Interest. (a) If, at any time during the six-month period beginning on, and including, the date which is six months after
the last date of original issuance of the Securities, the Company fails to timely file any document or report that the Company
is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect to
all applicable grace periods thereunder and other than current reports on Form 8-K), or the Securities are not otherwise freely
tradable by Holders, other than the Company’s Affiliates (as a result of restrictions pursuant to U.S. securities law or
the terms of this Indenture or the Securities), the Company shall pay Additional Interest on the Securities at a rate of 0.50%
per annum of the principal amount of Securities outstanding for each day during such period for which the Company’s failure
to file has occurred and is continuing or the Securities are not otherwise freely tradable by Holders, other than the Company’s
Affiliates.

 

    	28

    	 

    

 

 

(b)              
If, and for so long as, the Securities are not freely tradable by Holders other than the Company’s Affiliates (without
restrictions pursuant to U.S. securities laws or the terms of this Indenture or the Securities), as of the 365th day after the
last date of original issuance of the Securities, the Company shall pay Additional Interest on the Securities at a rate of 0.50%
per annum of the principal amount of Securities outstanding for each day after the 365th day after the last date of original issuance
of the Securities until the Securities are freely tradable by Holders other than the Company’s Affiliates (without restrictions
pursuant to U.S. securities law or the terms of this Indenture or the Securities).

 

(c)               
If any of the following events shall occur (each such event, a “Registration Default”), then the Company
shall pay Additional Interest to the Holders of Securities (“Registration Default Interest”) in respect of the
Securities as follows:

 

(i) If the Registration Statement
is not filed within 10 Business Days after the Issue Date, Registration Default Interest shall accrue on the Securities at a rate
of 1.00% per annum on the principal amount of such Securities for the first 20 days from and including such specified date, and
increasing to 2.50% per annum thereafter; provided that such Registration Default Interest shall cease to accrue on the
earlier of (a) the date on which the Registration Statement is filed and (b) the first anniversary of the Issue Date;

 

(ii) If the Registration Statement
is not declared effective within 180 days after the Issue Date, Registration Default Interest shall accrue on the Securities at
a rate of 2.50% per annum on the principal amount of such Securities (in addition to any amounts accruing pursuant to clause (i)
above, if applicable); provided that such Registration Default Interest shall cease to accrue on the earlier of (a) the
date on which the Registration Statement is declared effective and (b) the first anniversary of the Issue Date; and

 

(iii) If the Registration Statement
has been declared effective but thereafter ceases to be effective or available for the resale of all shares of Common Stock issued
or issuable upon conversion of the Securities at any time prior to the first anniversary of the Issue Date and such failure exists
for more than 30 consecutive days or more than 60 days (whether or not consecutive) during the period prior to the first anniversary
of the Issue Date, then commencing on the 31st day or 61st day, as applicable, following the date on which
such Registration Statement ceases to be effective, Registration Default Interest shall accrue on the Securities at a rate of 2.50%
per annum of the principal amount of such Securities from and including such 31st day or 61st day, as applicable;
provided that such Registration Default Interest shall cease to accrue on the earlier of (a) the date on which the Registration
Statement is available for the resale of all shares of Common Stock issued or issuable upon conversion of the Securities and (b)
the first anniversary of the Issue Date. The provisions of this clause (iii) shall apply to successive failures (as described in
the immediately preceding sentence) to maintain effectiveness of the Registration Statement.

 

    	29

    	 

    

 

 

(d)              
Additional Interest payable in accordance with Sections 4.09(a), 4.09(b) and 4.09(c) shall be payable in arrears
on each Interest Payment Date for the Securities following accrual in the same manner as regular interest on the Securities and
shall be in addition to, not in lieu of, any Additional Interest that may accrue under Section 6.02(b) as the sole
remedy relating to the Company’s failure to comply with Section 4.03(b).

 

(e)               
In the event that the Company is required to pay Additional Interest to Holders of Securities (whether pursuant to this
Section 4.09 or Section 6.02(b)), the Company shall provide written notice (“Additional Interest Notice”)
to the Trustee of its obligation to pay Additional Interest no later than fifteen (15) calendar days prior to the proposed payment
date for the Additional Interest. Each Additional Interest Notice shall set forth the amount of Additional Interest to be paid
by the Company on such payment date. The Trustee shall not at any time be under any duty or responsibility to any Holder to determine
the amount of Additional Interest, or with respect to the nature, extent or calculation of the amount of Additional Interest owed,
or with respect to the method employed in such calculation of the Additional Interest. Notwithstanding any other provision of this
Indenture, the sole remedy for failure of the Registration Statement to be filed or to be declared or kept effective shall be the
payment of Registration Default Interest.

 

SECTION
4.10.        Limitation
on Issuance of Guarantees by Restricted Subsidiaries. The Company will cause each Restricted Subsidiary other than a Foreign
Subsidiary to execute and deliver a supplemental indenture to this Indenture providing for a Subsidiary Guarantee of payment of
the Securities by such Restricted Subsidiary.

 

The Company will not permit any Restricted
Subsidiary which is not a Subsidiary Guarantor (other than a Foreign Subsidiary), directly or indirectly, to Guarantee any Indebtedness
(“Guaranteed Indebtedness”) of the Company or any other Restricted Subsidiary, unless (a) such Restricted
Subsidiary simultaneously executes and delivers a supplemental indenture to this Indenture providing for a Subsidiary Guarantee
of payment of the Securities by such Restricted Subsidiary and (b) such Restricted Subsidiary waives and will not in any manner
whatsoever claim or take the benefit or advantage of, any rights of reimbursement, indemnity or subrogation or any other rights
against the Company or any other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Subsidiary
Guarantee until the Securities have been paid in full.

 

If the Guaranteed Indebtedness is (A) pari
passu in right of payment with the Securities or any Subsidiary Guarantee, then the Guarantee of such Guaranteed Indebtedness
shall be pari passu in right of payment with, or subordinated to, the Subsidiary Guarantee or (B) subordinated in right
of payment to the Securities or any Subsidiary Guarantee, then the Guarantee of such Guaranteed Indebtedness shall be subordinated
in right of payment to the Subsidiary Guarantee at least to the extent that the Guaranteed Indebtedness is subordinated to the
Securities or the Subsidiary Guarantee. For the avoidance of doubt, Subsidiary Guarantees of the Securities are pari passu
with guarantees under the Existing Revolving Credit Facility and the 2019 Notes.

 

    	30

    	 

    

Notwithstanding the foregoing, any Subsidiary
Guarantee by a Restricted Subsidiary may provide by its terms that it shall be automatically and unconditionally released and discharged
upon:

 

(a)               
any sale, exchange or transfer, to any Person not an Affiliate of the Company, of all of the Company’s and each Restricted
Subsidiary’s Capital Stock in, or all or substantially all the assets of, such Restricted Subsidiary (which sale, exchange
or transfer is not prohibited by this Indenture) or upon the designation of such Restricted Subsidiary as an Unrestricted Subsidiary
in accordance with the terms of this Indenture; or

 

(b)              
the release or discharge of the Guarantee which resulted in the creation of such Subsidiary Guarantee, except a discharge
or release by or as a result of payment under such Guarantee.

 

ARTICLE V

Successors

 

SECTION
5.01.        When Company
May Merge, etc. The Company shall not consolidate with, or merge with or into, or sell, transfer, lease, convey or otherwise
dispose of all or substantially all of the consolidated property or assets of the Company to another Person, whether in a single
transaction or series of related transactions, unless (i) the Company is the continuing corporation or such other Person is a corporation
organized and existing under the laws of the United States of America, any state of the United States of America or the District
of Columbia, and such other Person assumes by supplemental indenture all the obligations of the Company under the Securities and
this Indenture and (ii) immediately after giving effect to such transaction or series of transactions, no Default or Event of Default
shall exist.

 

For purposes of this Section 5.01,
the sale, transfer, lease, conveyance or disposition of all or substantially all of the properties or assets of one or more Subsidiaries
of the Company to another Person, which properties or assets, if held by the Company instead of such Subsidiaries, would constitute
all or substantially all of the properties or assets of the Company on a consolidated basis, shall be deemed to be the sale, transfer,
lease, conveyance or disposition of all or substantially all of the consolidated properties or assets of the Company to another
Person.

 

The Company shall deliver to the Trustee prior
to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and an Opinion of Counsel
(which may rely upon such Officer’s Certificate as to the absence of Defaults and Events of Default) stating that the proposed
transaction and such supplemental indenture will, upon consummation of the proposed transaction, comply with this Indenture.

 

    	31

    	 

    

 

 

SECTION
5.02.        Successor
Substituted. In case of any such consolidation, merger or any sale, transfer, lease, conveyance or other disposition of all
or substantially all of the consolidated property or assets of the Company and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual
payment of the principal of and accrued and unpaid interest on all of the Securities, the due and punctual payment of the Fundamental
Change Repurchase Price with respect to all Securities repurchased on each Fundamental Change Repurchase Date, the due and punctual
delivery or payment, as the case may be, of any consideration due upon conversion of the Securities and the due and punctual performance
of all of the covenants and conditions of this Indenture and the Securities to be performed by the Company, such successor Person
shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the party of the first
part, except in the case of a lease of all or substantially all of the Company’s consolidated properties or assets. Such
successor Person 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 Securities issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee;
and, upon the order of such successor Person instead of the Company and subject to all the terms, conditions and limitations in
this Indenture prescribed, the Trustee shall authenticate and shall deliver, or cause to be authenticated and delivered, any Securities
that previously shall have been signed and delivered by the Officers of the Company to the Trustee for authentication, and any
Securities that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the
Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Securities theretofore
or thereafter issued in accordance with the terms of this Indenture as though all of such Securities had been issued at the date
of the execution hereof. In the event of any such consolidation, merger or any sale, transfer, conveyance or other disposition
(but not in the case of a lease), upon compliance with this Article V the Person named as the “Company”
in the first paragraph of this Indenture or any successor that shall thereafter have become such in the manner prescribed in this
Article V 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 Securities and its obligations under this Indenture shall terminate.

 

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

 

SECTION
5.03.        When a
Subsidiary Guarantor May Merge or Transfer Assets. No Subsidiary Guarantor will consolidate with, merge with or into, or sell,
convey, transfer, lease or otherwise dispose of all or substantially all of its property and assets) as an entirety or substantially
an entirety in one transaction or a series of related transactions) to, any Person or permit any Person to merge with or into it
unless (i) it shall be the continuing Person, or such other Person is a corporation organized and existing under the laws of the
United States of America, any state of the United States of America or the District of Columbia, and such other Person assumes
by supplemental indenture all of such Subsidiary Guarantor’s obligations under its Subsidiary Guarantee; and (ii) immediately
after giving effect to such transaction or series of transactions, no Default or Event of Default shall exist

 

The foregoing requirements of this Section 5.03
shall not apply to a consolidation or merger of any Subsidiary Guarantor with and into the Company or any other Subsidiary Guarantor,
so long as the Company or such Subsidiary Guarantor survives such consolidation or merger.

 

    	32

    	 

    

 

 

ARTICLE VI

Defaults and Remedies

 

SECTION
6.01.        Events
of Default. An “Event of Default” occurs if:

 

(a)               
the Company fails to pay the principal or the Fundamental Change Repurchase Price of any Security when the same becomes
due and payable, whether on the Maturity Date, on a Fundamental Change Repurchase Date, upon acceleration or otherwise;

 

(b)              
the Company fails to pay an installment of interest on any Security when due, if such failure continues for thirty (30)
days after the date when due;

 

(c)               
the Company fails to satisfy its conversion obligations upon exercise of a Holder’s conversion rights pursuant hereto;

 

(d)              
the Company fails to timely provide pursuant to Section 3.02(b) a Fundamental Change Notice, as required
by the provisions of this Indenture;

 

(e)               
the Company fails to comply with its obligations under Article V;

 

(f)               
the Company fails to comply with any other term, covenant or agreement set forth in the Securities or this Indenture and
such failure continues for the period, and after the notice, specified in the last paragraph of this Section 6.01;

 

(g)              
the Company or any of its Subsidiaries defaults in the payment when due, after the expiration of any applicable grace period,
of principal of, or premium, if any, or interest on, indebtedness for money borrowed, in the aggregate principal amount then outstanding
of twenty million dollars ($20,000,000) or more, or the acceleration of indebtedness of the Company or any of its Subsidiaries
for money borrowed in such aggregate principal amount or more so that it becomes due and payable before the date on which it would
otherwise become due and payable and such default is not cured or waived, or such acceleration is not rescinded for the period,
and after the notice, specified in the last paragraph of this Section 6.01;

 

(h)              
the Company or any of its Subsidiaries fails, within thirty (30) days, to pay, bond or otherwise discharge any final, non-appealable
judgments or orders for the payment of money the total uninsured amount of which for the Company or any of its Subsidiaries exceeds
twenty million dollars ($20,000,000), which are not stayed on appeal;

 

(i)                
the Company or any of its Significant Subsidiaries or any group of Subsidiaries that in the aggregate would constitute a
Significant Subsidiary of the Company, pursuant to, or within the meaning of, any Bankruptcy Law, insolvency law, or other similar
law now or hereafter in effect or otherwise, either:

 

(i) commences a voluntary case,

 

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

 

    	33

    	 

    

 

 

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

 

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

 

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

 

(i) is for relief against the
Company or any of its Significant Subsidiaries or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company in an involuntary case or proceeding, or adjudicates the Company or any of its Significant Subsidiaries
or any group of Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company insolvent or bankrupt,

 

(ii) appoints a Custodian of the
Company or any of its Significant Subsidiaries or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company for all or substantially all of the consolidated property of the Company or any such Significant Subsidiary
or any group of Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company, as the case may be,
or

 

(iii) orders the winding up or
liquidation of the Company or any of its Significant Subsidiaries or any group of Subsidiaries that in the aggregate would constitute
a Significant Subsidiary of the Company,

 

and, in the case of each of the foregoing clauses
(i), (ii) and (iii) of this Section 6.01(j), the order or decree remains unstayed and in effect for at least thirty
(30) consecutive days; or

 

(k)              
any Subsidiary Guarantor repudiates its obligations under its Subsidiary Guarantee or, except as permitted by this Indenture,
any Subsidiary Guarantee is determined to be unenforceable or invalid or shall for any reason cease to be in full force and effect
and such default continues for 10 days.

 

The term “Bankruptcy Law”
means Title 11, U.S. Code or any similar U.S. Federal or State law for the relief of debtors, or any analogous foreign law
applicable to the Company or its Subsidiaries, as the case may be. The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

A Default under clause (f) or (g)
above shall not be an Event of Default until (I) the Trustee notifies the Company, or the Holders of at least twenty five percent
(25%) in aggregate principal amount of the Securities then outstanding notify the Company and the Trustee in writing, of the Default
and (II) the Default is not cured within ninety (90) days in the case of clause (f), or within thirty (30) days in the case
of clause (g), after receipt of such notice. Such notice must specify the Default, demand that it be remedied and
state that the notice is a “Notice of Default.” If the Holders of at least twenty five percent (25%) in aggregate
principal amount of the outstanding Securities request the Trustee to give such notice on their behalf, the Trustee shall do so.
When a Default is cured, it ceases to exist for all purposes under this Indenture.

 

    	34

    	 

    

 

 

SECTION
6.02.        Acceleration.
  (a) If an Event of Default (excluding an Event of Default specified in Section 6.01(i) or (j) with
respect to the Company, but including an Event of Default specified in Section 6.01(i) or (j) solely
with respect to a Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least twenty five
percent (25%) in aggregate principal amount of the Securities then outstanding by notice to the Company and the Trustee, may declare
the Securities to be immediately due and payable in full. Upon such declaration, the principal of, and any accrued and unpaid interest
on, all Securities shall be due and payable immediately. If an Event of Default specified in Section 6.01(i) or
(j) with respect to the Company (excluding, for purposes of this sentence, an Event of Default specified in Section 6.01(i)
or (j) solely with respect to a Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate
would constitute a Significant Subsidiary of the Company) occurs, the principal of, and accrued and unpaid interest on, all the
Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder. The Holders of a majority in aggregate principal amount of the Securities then outstanding by written
notice to the Trustee may rescind or annul an acceleration and its consequences if (A) the rescission would not conflict with any
order or decree, (B) all existing Events of Default, except the nonpayment of principal or interest that has become due solely
because of the acceleration, have been cured or waived and (C) all amounts due to the Trustee under Section 7.07 have
been paid.

 

(b)              
Notwithstanding the foregoing, the sole remedy for an Event of Default relating to failure to comply with Section 4.03(b)
shall, for the first 180 days immediately following the occurrence of such an Event of Default, consist exclusively of the right
to receive Additional Interest on the Securities at a rate per year equal to (i) 0.25% of the outstanding principal amount of Securities
for the first 90 days following the occurrence of such Event of Default and (ii) 0.50% of the outstanding principal amount of Securities
for the next 90 days after the first 90 days following the occurrence of such Event of Default, in each case, payable in the same
manner and at the same time as the stated interest payable on the Securities. Such Additional Interest shall accrue on all outstanding
Securities from, and including, the date on which such Event of Default first occurs to, and including, the 180th day thereafter
(or such earlier date on which such Event of Default shall have been cured or waived). Additional Interest payable pursuant to
this Section 6.02(b) shall be in addition to, not in lieu of, any Additional Interest payable pursuant to Section 4.09(a),
Section 4.09(b) and Section 4.09(c). In addition to the accrual of Additional Interest pursuant to this Section 6.02(b),
on and after the 181st day immediately following an Event of Default relating to a failure to comply with Section 4.03(b),
such Additional Interest will cease to accrue and, if such Event of Default has not been cured or waived prior to such 181st day,
the Securities will be subject to acceleration as provided above. The provisions of this Section 6.02(b) shall
not affect the rights of Holders in the event of the occurrence of any other Event of Default. Notwithstanding any other provision
of this Indenture, the sole remedy for failure of the Registration Statement to be filed or to be declared or kept effective shall
be the payment of Registration Default Interest.

 

    	35

    	 

    

 

 

SECTION
6.03.        Other Remedies.
Notwithstanding any other provision of this Indenture, if an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy by proceeding at law or in equity to collect the payment of amounts due with respect to the Securities or
to enforce the performance of any provision of the Securities or this Indenture.

 

The Trustee may maintain a proceeding even
if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee
or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute
a waiver of or acquiescence in the Event of Default. All remedies are cumulative.

 

SECTION
6.04.        Waiver
of Past Defaults. Subject to Sections 6.07 and 9.02, the Holders of a majority in aggregate principal amount of
the Securities then outstanding may, by notice to the Trustee, waive any past Default or Event of Default and its consequences,
other than (i) a Default or Event of Default in the payment of the principal of, or interest on, any Security, or in the payment
of the Fundamental Change Repurchase Price, (ii) a Default or Event of Default arising from a failure by the Company to convert
any Securities in accordance with this Indenture or (iii) any Default or Event of Default in respect of any provision of this Indenture
or the Securities which, under Section 9.02, cannot be modified or amended without the consent of the Holder of each outstanding
Security affected. When a Default or an Event of Default is waived, it is cured and ceases to exist for all purposes under this
Indenture.

 

SECTION
6.05.        Control
by Majority. The Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred
on it. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, is unduly prejudicial
to the rights of other Holders or would involve the Trustee in personal liability unless the Trustee is offered indemnity reasonably
satisfactory to it; provided that the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

 

SECTION
6.06.        Limitation
on Suits. Except with respect to any proceeding instituted in accordance with Section 6.07, a Securityholder shall
not have any right to institute any proceeding under this Indenture, or for the appointment of a receiver or a trustee, or for
any other remedy under this Indenture unless:

 

(a)               
the Holder gives to the Trustee written notice of a continuing Event of Default;

 

(b)              
the Holders of at least twenty five percent (25%) in aggregate principal amount of the Securities then outstanding make
a written request to the Trustee to pursue the remedy;

 

(c)               
such Holder or Holders offer and, if requested, provide to the Trustee indemnity reasonably satisfactory to the Trustee
against any loss, liability or expense to or of the Trustee in connection with pursuing such remedy; and

 

    	36

    	 

    

 

 

(d)              
the Trustee does not comply with the request within sixty (60) days after receipt of such notice, request and offer of indemnity,
and during such sixty (60) day period, the Holders of a majority in aggregate principal amount of the Securities then outstanding
do not give the Trustee a direction inconsistent with the request.

 

A Securityholder may not use this Indenture
to prejudice the rights of another Securityholder or to obtain a preference or priority over another Securityholder.

 

SECTION
6.07.        Rights
Of Holders To Receive Payment And To Convert Securities. Notwithstanding any other provision of this Indenture, the right of
any Holder to receive payment of all amounts (including any principal, interest or the Fundamental Change Repurchase Price) due
with respect to the Securities, on or after the respective due dates as provided herein, or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or affected without the consent of the Holder.

 

In addition, notwithstanding any other provision
of this Indenture, the right of any Holder to convert the Security in accordance with this Indenture, or to bring suit for the
enforcement of such right, shall not be impaired or affected without the consent of the Holder.

 

SECTION
6.08.        Collection
Suit by Trustee. If an Event of Default specified in Section 6.01(a) or (b) occurs and is continuing, the Trustee
may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount due with respect
to the Securities, including any unpaid and accrued interest.

 

SECTION
6.09.        Trustee
May File Proofs of Claim. The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee, any predecessor Trustee and the Securityholders allowed in any judicial proceedings
relative to the Company or its creditors or properties.

 

The Trustee may collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or similar official in any judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders,
to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.07.

 

Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

 

SECTION
6.10.        Priorities.
If the Trustee collects any money pursuant to this Article VI, it shall pay out the money in the following order:

 

First: to the Trustee for amounts due
under Section 7.07;

 

    	37

    	 

    

Second: to Securityholders for all
amounts due and unpaid on the Securities, without preference or priority of any kind, according to the amounts due and payable
on the Securities; and

 

Third: the balance, if any, to the
Company.

 

The Trustee, upon prior written notice to
the Company, may fix a record date and payment date for any payment by it to Securityholders pursuant to this Section 6.10.
At least fifteen (15) days before each such record date, the Trustee shall mail to each Holder and the Company a written notice
that states such record date and payment date and the amount of such payment.

 

SECTION
6.11.        Undertaking
For Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for
any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
other than the Trustee of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith
of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the Trustee, a
suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than ten percent (10%) in aggregate principal
amount of the outstanding Securities.

 

ARTICLE VII

Trustee

 

SECTION
7.01.        Duties
of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent Person would exercise
or use under the circumstances in the conduct of his or her own affairs.

 

(b)              
Except during the continuance of an Event of Default:

 

(i) the Trustee need perform only
those duties that are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

 

(ii) in the absence of bad faith,
willful misconduct or negligence on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of
this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to
be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to
the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

 

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(c)               
The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own
willful misconduct, except that:

 

(i) this paragraph does not limit
the effect of paragraph (b) of this Section;

 

(ii) the Trustee shall not be
liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent
in ascertaining the pertinent facts; and

 

(iii) the Trustee shall not be
liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant
to Section 6.05.

 

(d)              
Every provision of this Indenture that in any way relates to the Trustee is subject to the provisions of this Section 7.01.

 

(e)               
The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with
the Company. Money held in trust by the Trustee shall be segregated from other funds as directed in writing by the Company or as
required by law and shall be invested by the Trustee pursuant to the written instructions of the Company reasonably satisfactory
to the Trustee.

 

(f)               
No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, or to take or omit
to take any action hereunder or to take any action at the request or direction of Securityholders, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured
to it.

 

(g)              
 The provisions of this Article VII shall apply to the Trustee in its role as Registrar, Paying Agent and custodian for
the Depositary.

 

(h)              
The Trustee shall not be deemed to have notice of a Default or an Event of Default unless (a) the Trustee has received written
notice thereof from the Company or any Holder or (b) a Responsible Officer shall have actual knowledge thereof.

 

(i)                
In the absence of bad faith, negligence or willful misconduct on the part of the Trustee, the Trustee shall not be responsible
for the application of any money by any Paying Agent other than the Trustee.

 

SECTION
7.02.        Rights
of Trustee. (a) Subject to Section 7.01, the Trustee may conclusively rely on any document believed by it to
be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated
in the document; if, however, the Trustee shall determine to make such further inquiry or investigation, it shall be entitled during
normal business hours to examine the relevant books, records and premises of the Company, personally or by agent or attorney upon
reasonable prior notice, at the sole cost of the Company, and shall incur no liability or additional liability of any kind by reason
of such inquiry or investigation.

 

    	39

    	 

    

 

 

(b)              
Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate and/or an Opinion of Counsel.
The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate
or Opinion of Counsel.

 

(c)               
Any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company
Order, and any resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution.

 

(d)              
The Trustee may consult with counsel of its own selection, and the advice of such counsel or any Opinion of Counsel shall
be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.

 

(e)               
The Trustee may act through agents or attorneys and shall not be responsible for the misconduct or negligence of any agent
or attorney appointed with due care.

 

(f)               
The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized
or within its discretion, rights or powers conferred upon it by this Indenture; provided, that the Trustee’s action
does not constitute willful misconduct or negligence.

 

(g)              
Except with respect to Section 4.01, the Trustee shall have no duty to inquire as to the performance of the
Company with respect to the covenants contained in Article IV. In addition, the Trustee shall not be deemed to have
knowledge of an Event of Default except (1) any Default or Event of Default occurring pursuant to Sections 6.01(i) or (ii)
or (2) any Default or Event of Default of which a Responsible Officer of the Trustee who shall have direct responsibility for the
administration of this Indenture shall have received written notification or obtained actual knowledge. Delivery of reports, information
and documents to the Trustee under Article IV (other than Sections 4.04 and 4.07) is for informational purposes only
and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely on Officer’s Certificates).

 

(h)              
Subject to Section 7.01(a), the Trustee shall be under no obligation to exercise any of the rights or powers
vested by this Indenture at the request or direction of any of the Holders pursuant to this Indenture unless such Holders shall
have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction.

 

(i)                
The rights, privileges, protections, immunities and benefits given to the Trustee, including without limitation, its right
to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed to act hereunder.

 

(j)                
The Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate
may be signed by any Person authorized to sign an Officer’s Certificate, including any Person specified as so authorized
in any such certificate previously delivered and not superseded.

 

    	40

    	 

    

 

 

(k)              
The permissive rights of the Trustee to do things enumerated in this Indenture shall not be construed as a duty unless so
specified herein.

 

SECTION
7.03.        Individual
Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may
otherwise deal with the Company or any of its Affiliates with the same rights the Trustee would have if it were not Trustee. Any
Securities Agent may do the same with like rights. The Trustee, however, must comply with Sections 7.10 and 7.11.

 

SECTION
7.04.        Trustee’s
Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities; the Trustee
shall not be accountable for the Company’s use of the proceeds from the Securities; and the Trustee shall not be responsible
for any statement in the Securities other than its certificate of authentication.

 

SECTION
7.05.        Notice
of Defaults. If a Default or Event of Default occurs and is continuing as to which the Trustee has received notice pursuant
to the provisions of this Indenture, or as to which a Responsible Officer of the Trustee who shall have direct responsibility for
the administration of this Indenture shall have actual knowledge, then the Trustee shall mail to each Holder a notice of the Default
or Event of Default within thirty (30) days after receipt of such notice or after acquiring such knowledge, as applicable, unless
such Default or Event of Default has been cured or waived; provided, however, that, except in the case of
a Default or Event of Default in payment or delivery of any amounts due (including principal, interest, the Fundamental Change
Repurchase Price or the consideration due upon conversion with respect to any Security, the Trustee may withhold such notice if,
and so long as it in good faith determines that, withholding such notice is in the best interests of Holders.

 

SECTION
7.06.        Reports
by Trustee to Holders. Within sixty (60) days after each January 1, beginning with January 1, 2014, the Trustee shall mail
to each Securityholder if required by TIA § 313(a) a brief report dated as of such January 1 that complies with TIA § 313(a).
In such event, the Trustee also shall comply with TIA § 313(b).

 

A copy of each report at the time of its mailing
to Securityholders shall be mailed by first class mail to the Company and filed by the Trustee with the SEC and each stock exchange,
if any, on which the Securities are listed. The Company shall promptly notify the Trustee of the listing or delisting of the Securities
on or from any stock exchange.

 

SECTION
7.07.        Compensation
and Indemnity. The Company shall pay to the Trustee from time to time such compensation for its services as shall be agreed
upon in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.
The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it pursuant to, and
in accordance with, any provision hereof, except for any such expenses as shall have been caused by the Trustee’s own negligence,
bad faith or willful misconduct. Such expenses shall include the reasonable compensation and out-of-pocket expenses of the Trustee’s
agents and counsel. The Trustee shall provide the Company with reasonable notice of any expense not in the ordinary course of business.

 

    	41

    	 

    

The Company shall indemnify each of the Trustee,
each predecessor Trustee and their respective agents for, and hold each of them harmless against, any and all loss, liability,
damage, claim or expense (including the reasonable fees and expenses of counsel and taxes other than those based upon the income
of the Trustee) incurred by it in connection with the acceptance or administration of this Indenture and the performance of its
duties hereunder or in connection with enforcing the provisions of this Section 7.07, including the reasonable costs
and expenses of defending itself against any claim (whether asserted by the Company, any Holder or any other Person) or liability
in connection with the exercise or performance of any of its powers and duties hereunder. The Company need not pay for any settlement
made without its consent. The Trustee shall notify the Company promptly of any claim for which it may seek indemnification. The
Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee through the Trustee’s
negligence, bad faith or wilful misconduct.

 

To secure the Company’s payment obligations
in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected
by the Trustee, except that held in trust to pay amounts due on particular Securities.

 

The indemnity obligations of the Company with
respect to the Trustee provided for in this Section 7.07 shall survive any resignation or removal of the Trustee.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.01(i) or (j) occurs, the expenses and the compensation
for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

SECTION
7.08.        Replacement
of Trustee. A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon
the successor Trustee’s acceptance of appointment as provided in this Section 7.08.

 

The Trustee may resign by so notifying the
Company in writing thirty (30) days prior to such resignation. The Holders of a majority in aggregate principal amount of the Securities
then outstanding may remove the Trustee by so notifying the Trustee and the Company in writing and may appoint a successor Trustee
with the Company’s consent. The Company may remove the Trustee if:

 

(a)               
the Trustee fails to comply with Section 7.10;

 

(b)              
the Trustee is adjudged a bankrupt or an insolvent;

 

(c)               
a receiver or other public officer takes charge of the Trustee or its property; or

 

(d)              
the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if
a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.

 

If a successor Trustee does not take office
within thirty (30) days after the retiring Trustee resigns or is removed, the retiring Trustee (at the Company’s expense),
the Company or the Holders of at least ten percent (10%) in aggregate principal amount of the outstanding Securities may petition
any court of competent jurisdiction for the appointment of a successor Trustee.

 

    	42

    	 

    

If the Trustee fails to comply with Section 7.10,
the Company or any Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of
a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly
transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07.

 

SECTION
7.09.        Successor
trustee by Merger, Etc. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor
Trustee, if such successor corporation is otherwise eligible (i) hereunder and (ii) under the TIA.

 

SECTION
7.10.        Eligibility;
Disqualification. There shall at all times be a Trustee hereunder which (a) is an entity organized and doing business under
the laws of the United States of America or of any state thereof or the District of Columbia, (b) is authorized under such laws
to exercise corporate trustee power, (c) is subject to supervision or examination by Federal or state authorities and (d) has a
combined capital and surplus of at least $50 million as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA § 310(b). Nothing in this Indenture shall prevent the Trustee from filing with the SEC
the application referred to in the penultimate paragraph of TIA § 310(b).

 

SECTION
7.11.        Preferential
Collection of Claims Against Company. The Trustee shall comply with TIA § 311(a), excluding any creditor relationship
listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated.

 

    	43

    	 

    

 

 

ARTICLE VIII

Discharge of Indenture

 

SECTION
8.01.        Termination
of The Obligations of The Company. This Indenture shall cease to be of further effect, and the Trustee shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, if (a) either (i) all outstanding Securities (other than
Securities replaced pursuant to Section 2.07 hereof) have been delivered to the Trustee for cancelation or (ii) all
outstanding Securities have become due and payable at their scheduled maturity, upon conversion, upon Repurchase Upon Fundamental
Change, and in either case the Company irrevocably deposits, prior to the applicable due date, with the Trustee or the Paying Agent
(if the Paying Agent is not the Company or any of its Affiliates) cash or, in the case of conversion, shares of Common Stock sufficient
to pay all amounts due and owing on all outstanding Securities (other than Securities replaced pursuant to Section 2.07
hereof) on the Maturity Date, the relevant settlement date of any conversion or the Fundamental Change Repurchase Date, as the
case may be; (b) the Company pays to the Trustee all other sums payable hereunder by the Company; (c) no Default or Event of Default
with respect to the Securities shall exist on the date of such deposit under clause (a)(ii) above; (d) such deposit
under clause (a)(ii) above shall not result in a breach or violation of, or constitute a Default or Event of Default under,
this Indenture; and (e) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each
stating that all conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture have been
complied with; provided, however, that Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.15, 2.16,
2.17, 3.02, 4.01, 4.02, 4.05, 4.09, 7.07, 7.08, 7.10, 7.11, 13.02, 13.09 and 13.14 and Article VIII, X,
XI and XII shall survive any discharge of this Indenture until such time as the Securities have been paid in
full and there are no Securities outstanding.

 

SECTION
8.02.        Application
of Trust Money. The Trustee shall hold in trust all money deposited with it pursuant to Section 8.01 and shall
apply such deposited money through the Paying Agent and in accordance with this Indenture to the payment of amounts due on the
Securities.

 

SECTION
8.03.        Repayment
To Company. The Trustee and the Paying Agent shall promptly notify the Company of, and pay to the Company upon the request
of the Company, any excess money held by them at any time. The Trustee or the Paying Agent, as the case may be, shall provide written
notice to the Company of any money that has been held by it and has, for a period of two (2) years, remained unclaimed for the
payment of the principal of, or any accrued and unpaid interest on, the Securities. The Trustee and the Paying Agent shall pay
to the Company upon the written request of the Company any money held by them for the payment of the principal of, or any accrued
and unpaid interest on, the Securities that remains unclaimed for two (2) years; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment, may, at the expense of the Company, cause to be
published (in no event later than five (5) days after the Company requests repayment) once in a newspaper of general circulation
in the City of New York or cause to be mailed to each Holder, notice stating that such money remains unclaimed and that, after
a date specified therein, which shall not be less than thirty (30) days from the date of such publication or mailing, any unclaimed
balance of such money then remaining will be repaid to the Company. After payment to the Company, Securityholders entitled to the
money must look to the Company for payment as general creditors, subject to applicable law, and all liability of the Trustee and
the Paying Agent with respect to such money and payment shall, subject to applicable law, cease.

 

    	44

    	 

    

 

 

SECTION
8.04.        Reinstatement.
If the Trustee or Paying Agent is unable to apply any money in accordance with Sections 8.01 and 8.02 by reason of
any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the obligations of the Company under this Indenture and the Securities shall be revived and reinstated
as though no deposit had occurred pursuant to Sections 8.01 and 8.02 until such time as the Trustee or Paying Agent
is permitted to apply all such money in accordance with Sections 8.01 and 8.02; provided, however, that
if the Company has made any payment of amounts due with respect to any Securities because of the reinstatement of its obligations,
then the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held
by the Trustee or Paying Agent.

 

ARTICLE IX

Amendments

 

SECTION
9.01.        Without
Consent of Holders. The Company, with the consent of the Trustee, may amend or supplement this Indenture or the Securities
without notice to or the consent of any Securityholder:

 

(a)               
to comply with Section 5.01 or Section 10.12;

 

(b)              
to secure the obligations of the Company in respect of the Securities;

 

(c)               
to evidence and provide for the appointment of a successor Trustee in accordance with Section 7.08;

 

(d)              
to comply with the provisions of any clearing agency, clearing corporation or clearing system, or the requirements of the
Trustee or the Registrar, relating to transfers and exchanges of the Securities pursuant to this Indenture;

 

(e)               
to add to the covenants of the Company described in this Indenture for the benefit of Securityholders or to surrender any
right or power conferred upon the Company;

 

(f)               
to make provision with respect to adjustments to the Conversion Rate as required by this Indenture or to increase the Conversion
Rate in accordance with this Indenture;

 

(g)              
to add or remove a Subsidiary Guarantor in accordance with Section 4.10; or

 

(h)              
to add or modify any other provision herein with respect to matters or questions arising hereunder which the Company may
deem necessary or desirable and which does not materially and adversely affect the rights of any Holder.

 

In addition, the Company and the Trustee may enter into a supplemental
indenture without the consent of Holders of the Securities to cure any ambiguity, defect, omission or inconsistency in this Indenture
in a manner that does not, individually or in the aggregate with all other changes, materially and adversely affect the rights
of any Holder in any respect.

 

    	45

    	 

    

 

 

SECTION
9.02.        With Consent
of Holders. The Company may amend or supplement this Indenture or the Securities with the written consent of the Trustee and
the Holders of at least a majority in aggregate principal amount of the outstanding Securities (including, without limitation,
consents obtained from Holders in connection with a purchase of, or tender or exchange offer for, Securities). Subject to Sections 6.04
and 6.07, the Holders of a majority in aggregate principal amount of the outstanding Securities may, by notice to the Trustee,
waive by consent (including, without limitation, consents obtained from Holders in connection with a purchase of, or tender or
exchange offer for, Securities) compliance by the Company with any provision of this Indenture or the Securities without notice
to any other Securityholder. Notwithstanding the foregoing or anything herein to the contrary, without the consent of the Holder
of each outstanding Security affected, an amendment, supplement or waiver, including a waiver pursuant to Section 6.04,
may not:

 

(a)               
change the stated maturity of the principal of, or the payment date of any installment of interest on, any Security;

 

(b)              
reduce the principal amount of, or any interest on, any Security;

 

(c)               
change the place, manner or currency of payment of principal of, or any interest on, any Security;

 

(d)              
impair the right to institute suit for the enforcement of any delivery or payment on, or with respect to, or due upon the
conversion of, any Security;

 

(e)               
modify, in a manner adverse to Holders, the provisions with respect to the right of Holders pursuant to Section 3.02
to require the Company to repurchase Securities upon the occurrence of a Fundamental Change;

 

(f)               
modify the provisions of Section 2.18 in a manner adverse to Holders;

 

(g)              
adversely affect the right of Holders to convert Securities in accordance with Article X;

 

(h)              
reduce the percentage in aggregate principal amount of outstanding Securities whose Holders must consent to a modification
to or amendment of any provision of this Indenture or the Securities;

 

(i)                
reduce the percentage in aggregate principal amount of outstanding Securities whose Holders must consent to a waiver of
compliance with any provision of this Indenture or the Securities or a waiver of any Default or Event of Default; or

 

(j)                
modify the provisions of this Indenture with respect to modification and waiver (including waiver of a Default or an Event
of Default), except to increase the percentage required for modification or waiver or to provide for the consent of each affected
Holder.

 

Promptly after an amendment, supplement or
waiver under Section 9.01 or this Section 9.02 becomes effective, the Company shall mail, or cause to be
mailed, to Securityholders a notice briefly describing such amendment, supplement or waiver. Any failure of the Company to mail
such notice shall not in any way impair or affect the validity of such amendment, supplement or waiver.

 

    	46

    	 

    

It shall not be necessary for the consent
of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but
it shall be sufficient if such consent approves the substance thereof.

 

SECTION
9.03.        [Reserved].

 

SECTION
9.04.        Revocation
and Effect of Consents. Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing
consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting
Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder
may revoke the consent as to its Security or portion of a Security if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective.

 

After an amendment, supplement or waiver becomes
effective with respect to the Securities, it shall bind every Holder unless such amendment, supplement or waiver makes a change
that requires, pursuant to Section 9.02, the consent of each Holder affected. In that case, the amendment, supplement
or waiver shall bind each Holder of a Security who has consented to it and, provided that notice of such amendment, supplement
or waiver is reflected on a Security that evidences the same debt as the consenting Holder’s Security, every subsequent Holder
of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Nothing in this Section 9.04 shall
impair the Company’s rights pursuant to Section 9.01 to amend this Indenture or the Securities without the consent of
any Securityholder in the manner set forth in, and permitted by, such Section 9.01.

 

SECTION
9.05.        Notation
on or Exchange of Securities. If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security as directed
and prepared by the Company about the changed terms and return it to the Holder. Alternatively, if the Company so determines, the
Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms.

 

SECTION
9.06.        Trustee
Protected. The Trustee shall sign any amendment, supplemental indenture or waiver authorized pursuant to this Article IX;
provided, however, that the Trustee need not sign any amendment, supplement or waiver authorized pursuant to
this Article IX that adversely affects the Trustee’s rights, duties, liabilities or immunities. The Trustee shall
be entitled to receive and conclusively rely upon an Opinion of Counsel as to legal matters and an Officer’s Certificate
as to factual matters that any supplemental indenture, amendment or waiver is permitted or authorized pursuant to this Indenture.

 

SECTION
9.07.        Effect
of Supplemental Indentures. Upon the due execution and delivery of any supplemental indenture in accordance with this Article IX,
this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for
all purposes, and, except as set forth in Sections 9.02 and 9.04, every Holder of Securities shall be
bound thereby.

 

    	47

    	 

    

 

 

ARTICLE X

Conversion

 

SECTION
10.01.    Conversion Privilege. (a)
Subject to the provisions of Section 3.01, Section 3.02 and Section 10.02, the Securities shall be convertible
at any time prior to the close of business on the Business Day immediately preceding the Maturity Date into shares of Common Stock,
as described in Section 10.02, in accordance with this Article X.

 

(b)              
The initial Conversion Rate shall be 200 shares of Common Stock per $1,000 principal amount of Securities. The Conversion
Rate shall be subject to adjustment in accordance with Sections 10.06 through 10.14.

 

(c)               
A Holder may convert a portion of the principal amount of a Security if such portion is $1,000 principal amount or an integral
multiple of $1,000 principal amount. Provisions of this Indenture that apply to conversion of all of a Security also apply to conversion
of a portion of such Security.

 

SECTION
10.02.    Conversion Procedure and Payment
upon Conversion. (a) To convert a Security, a Holder must (1) complete and manually sign the Conversion Notice, with appropriate
signature guarantee, or facsimile of the Conversion Notice and deliver the completed Conversion Notice to the Conversion Agent,
(2) surrender the Security to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by
the Registrar or Conversion Agent, (4) pay the amount of interest, if any, required by Section 10.02(c) and (5) pay
any tax or duty if required pursuant to Section 10.04. If a Holder holds a beneficial interest in a Global Security,
to convert such Security, the Holder must comply with clauses (4) and (5) above and the Depositary’s procedures for converting
a beneficial interest in a Global Security.

 

Upon conversion of a Holder’s Security,
the Company shall deliver, through the Conversion Agent, shares of Common Stock (together with cash in lieu of any fractional share
and any accrued and unpaid interest to, but excluding, the Conversion Date) within three Business Days of the relevant Conversion
Date, unless such Conversion Date occurs immediately following the regular Record Date immediately preceding the Maturity Date,
in which case the Company shall make such delivery (and payment, if applicable) on the Maturity Date.

 

Notwithstanding any other provision of this
Indenture or the Securities, if necessary to comply with the listing requirements of The NASDAQ Global Select Market, the Company
shall not issue more than 40,000,000 shares in the aggregate of its outstanding Common Stock (as adjusted pursuant to Section 10.06(a)
in the event of any share split or share combination) to settle any conversion of Securities hereunder (the “Maximum Share
Limitation”). Any principal that is not permitted to be converted as the result of the Maximum Share Limitation will
be deemed satisfied in full upon conversion. Such principal not permitted to be converted, if any, shall be deemed to be paid in
full rather than canceled, extinguished or forfeited. In the event of a conversion that would cause in excess of 40,000,000 shares
to be issued, the Company will promptly notify such converting Holder, and such Holder will be permitted to withdraw or modify
its request to convert its Securities within three Business Days after receiving such notice from the Company. If any such converting
Holder does not withdraw or amend its request to convert its Securities within such three Business Day period, such Holder’s
original request to convert will be fulfilled, with any principal not permitted to be converted as a result of the Maximum Share
Limitation deemed satisfied in full in accordance with the fourth sentence of this paragraph. The Company shall also promptly give
notice to the Trustee and the other Holders at any time additional conversions of the Securities will not be permitted as a result
of the Maximum Share Limitation.

 

    	48

    	 

    

The number of shares of Common Stock due upon
conversion of Securities shall be determined as follows: the Company shall deliver to each converting Holder a number of shares
of Common Stock equal to (i) (A) the aggregate principal amount of Securities to be converted, divided by (B) $1,000
multiplied by (ii) the Conversion Rate in effect on the relevant Conversion Date (provided that the Company shall
deliver cash in lieu of fractional shares as described in Section 10.03).

 

(b)              
A Holder receiving shares of Common Stock upon conversion shall not be entitled to any rights as a holder of Common Stock,
including, among other things, the right to vote and receive dividends and notices of shareholder meetings, until the close of
business on the Conversion Date. On and after the Conversion Date with respect to a conversion of a Security pursuant hereto, all
rights of the Holder of such Security shall terminate, other than the right to receive the consideration deliverable upon conversion
of such Security as provided herein.

 

(c)               
Upon conversion, the Company shall pay to the Holder, in cash, accrued and unpaid interest to, but excluding, the Conversion
Date, on the Securities being converted.

 

(d)              
If a Holder converts more than one Security at the same time, the number of full shares of Common Stock issuable upon such
conversion shall be based on the total principal amount of all Securities converted.

 

(e)               
Upon surrender of a Security that is converted in part, the Trustee shall authenticate for the Holder a new Security equal
in principal amount to the unconverted portion of the Security surrendered.

 

(f)               
If the last day on which a Security may be converted is a Legal Holiday in a place where a Conversion Agent is located,
the Security may be surrendered to that Conversion Agent on the next succeeding day that is not a Legal Holiday.

 

(g)              
Notwithstanding anything to the contrary in this Indenture, (i) any Security for which a Holder has delivered an appropriate
instruction form for conversion to the Depositary or a Conversion Notice pursuant to Section 10.02 on or after the date of mailing
of an Issuer’s Conversion Notice will be converted pursuant to Section 10.15 and will not be voluntarily converted pursuant
to Sections 10.01 and 10.02 and (ii) any Security for which a Holder has delivered an appropriate instruction form for conversion
to the Depositary or a Conversion Notice pursuant to Section 10.02 prior to the date of mailing of an Issuer’s Conversion
Notice will not be converted pursuant to Section 10.15 and will be voluntarily converted pursuant to Sections 10.01 and 10.02.

 

    	49

    	 

    

 

 

SECTION
10.03.    Cash In Lieu of Fractional Shares.
The Company will not issue a fractional share of Common Stock upon conversion of a Security. Instead, the Company shall pay cash
in lieu of fractional shares based on the Closing Sale Price of Common Stock on the Conversion Date.

 

SECTION
10.04.    Taxes on Conversion. If a
Holder converts its Security, the Company shall pay any documentary, stamp or similar issue or transfer tax or duty due on the
issue of Common Stock upon the conversion. However, such Holder shall pay any such tax or duty which is due because such shares
are issued in a name other than such Holder’s name. The Conversion Agent may refuse to deliver a certificate representing
the Common Stock to be issued in a name other than such Holder’s name until the Conversion Agent receives a sum sufficient
to pay any tax or duty which will be due because such shares are to be issued in a name other than such Holder’s name.

 

SECTION
10.05.    Company to Provide Common Stock.
The Company shall at all times reserve out of its authorized but unissued Common Stock or Common Stock held in its treasury enough
shares of Common Stock to permit the conversion, in accordance herewith, of all of the Securities. The shares of Common Stock due
upon conversion of a Global Security shall be delivered by the Company in accordance with the Depositary’s customary practices.

 

All shares of Common Stock which may be issued
upon conversion of the Securities shall be validly issued, fully paid and non-assessable and shall be free of preemptive or similar
rights and free of any lien or adverse claim.

 

The Company shall comply with all securities
laws regulating the offer and delivery of shares of Common Stock upon conversion of Securities and shall list such shares on each
national securities exchange or automated quotation system on which the shares of Common Stock are listed.

 

SECTION
10.06.    Adjustment of Conversion Rate.
The Conversion Rate shall be subject to adjustment from time to time, without duplication, upon the occurrence of any of the following
events:

 

(a)               
If the Company issues shares of Common Stock as a dividend or distribution on the shares of Common Stock, 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 close of business on the record date for such dividend or distribution,
or the open of business on the effective date of such share split or share combination, as the case may be;

 

 

    	50

    	 

    

	CR’   =	the Conversion Rate in effect immediately after the close of business on the record date for such dividend or distribution, or
the open of business on the effective date of such share split or share combination, as the case may be;

 

	OS0   =	the number of shares of Common Stock outstanding immediately prior to the close of business on the record date for such dividend
or distribution, or the open of business on the effective date of such share split or share combination, as the case may be; and

 

	OS ́   =	the number of shares of Common Stock outstanding immediately after such dividend or distribution, or such share split or share
combination, as the case may be.

 

Any adjustment made under this Section 10.06(a)
shall become effective immediately after the close of business on the record 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 the case may be. If any dividend
or distribution of the type described in this Section 10.06(a) is declared but not so paid or made, or any share split
or combination of the type described in this Section 10.06(a) is announced but the outstanding shares of Common
Stock are not split or combined, as the case may be, the Conversion Rate shall be immediately readjusted, effective as of the date
the Board of Directors determines not to pay such dividend or distribution, or not to split or combine the outstanding shares of
Common Stock, as the case may be, to the Conversion Rate that would then be in effect if such dividend, distribution, share split
or share combination had not been declared or announced.

 

(b)              
If the Company distributes to all or substantially all holders of the Common Stock any rights, options or warrants entitling
them, for a period expiring not more than sixty (60) days immediately following the record date of such distribution, to purchase
or subscribe for shares of Common Stock, at a price per share less than the average of the Closing Sale Prices of the Common Stock
over the ten (10) consecutive Trading Day period ending on the Trading Day immediately preceding the Ex Date for such distribution,
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 record date for such distribution;

 

	CR’	=	the Conversion Rate in effect immediately after the close of business on the record date for such distribution;

 

	OS0	=	the number of shares of Common Stock that are outstanding immediately prior to the close of business on the record date for such
distribution;

 

    	51

    	 

    

	X 	=	the total number of shares of Common Stock issuable pursuant to such rights, options or warrants; and

 

	Y 	=	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided
by the average of the Closing Sale Prices of the Common Stock over the ten (10) consecutive Trading Day period ending on the
Trading Day immediately preceding the announcement date for such distribution.

 

Any increase made under this Section 10.06(b)
shall be made successively whenever any such rights, options or warrants are distributed and shall become effective immediately
after the close of business on the record date for such distribution. The Company shall not issue any such rights, options, or
warrants in respect of Common Stock held in treasury by the Company. To the extent that shares of Common Stock are not delivered
after the expiration of such rights, options or warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would
then be in effect had the increase with respect to the distribution of such rights, options or warrants been made on the basis
of delivery of only the number of shares of Common Stock actually delivered. If such rights, options or warrants are not so distributed,
the Conversion Rate shall be decreased to be the Conversion Rate that would then be in effect if such record date for such distribution
had not occurred.

 

In determining whether any rights, options
or warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than such average of the Closing
Sale Prices for the ten (10) consecutive Trading Day period ending on the Trading Day immediately preceding the Ex Date for such
distribution, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account
any consideration received by the Company for such rights, options or warrants and any amount payable on exercise or conversion
thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors. In no event shall the
Conversion Rate be decreased pursuant to this Section 10.06(b).

 

(c)               
If the Company distributes shares of its Capital Stock, evidences of its indebtedness or other of its assets, securities
or property, but excluding (i) dividends or distributions covered by Sections 10.06(a) and 10.06(b),
(ii) dividends or distributions paid exclusively in cash covered by Section 10.06(d), and (iii) Spin-Offs to which
the provisions set forth in the latter portion of this Section 10.06(c) shall apply (any of such shares of Capital
Stock, indebtedness or other assets, securities or property, the “Distributed Property”), to all or substantially
all holders of Common Stock, then, in each such case the Conversion Rate shall be increased based on the following formula:

 

 

where

 

 

 

    	52

    	 

    

 

 

	CR0 	=	
        the Conversion Rate in effect immediately prior to
the close of business on the record date for such distribution;  

	 	 	 
	CR’	=	the Conversion Rate in effect immediately after the close of business on the record date for such distribution;
	 	 	 
	SP0	=	the average of the Closing Sale Prices of the Common Stock over the ten (10) consecutive Trading Day period ending on the Trading Day immediately preceding the Ex Date for such distribution; and
	 	 	 
	FMV	=	the fair market value (as determined by the Board of Directors) of the shares of Capital Stock, evidences of indebtedness, assets, securities or property distributable with respect to each outstanding share of Common Stock as of the open of business on the Ex Date for such distribution.

 

 

If the Board of Directors determines “FMV”
for purposes of this Section 10.06(c) by reference to the actual or when issued trading market for any securities,
it must in doing so consider the prices in such market over the same period used in computing the Closing Sale Prices of the Common
Stock over the ten (10) consecutive Trading Day period ending on the Trading Day immediately preceding the Ex Date for such distribution.

 

Notwithstanding the foregoing, if “FMV”
(as defined above) is equal to or greater than the “SP0” (as defined above), in lieu of the foregoing increase,
each Holder of a Security shall receive, for each $1,000 principal amount of Securities, at the same time and upon the same terms
as the holders of the Common Stock, the amount and kind of Distributed Property that such Holder would have received as if such
Holder owned a number of shares of Common Stock equal to the Conversion Rate in effect on the Ex Date for such distribution.

 

Any increase made under the portion of this
Section 10.06(c) above shall become effective immediately after the close of business on the record date for such distribution.
If such distribution is not so paid or made, the Conversion Rate shall be decreased to be the Conversion Rate that would then be
in effect if such dividend or distribution had not been declared.

 

With respect to an adjustment pursuant to
this Section 10.06(c) where there has been a payment of a dividend or other distribution on the Common Stock 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, where such Capital Stock or similar equity interest is listed or quoted (or will be listed or quoted upon consummation
of the Spin-Off) on a U.S. national securities exchange (a “Spin-Off”), the Conversion Rate in effect immediately
before the close of business on the tenth (10th) Trading Day immediately following, and including, the Ex Date of the Spin-Off
shall be increased based on the following formula:

 

 

where

 

 

 

    	53

    	 

    

 

 

	CR0	=	the Conversion Rate in effect immediately prior to the close of business on the tenth (10th) Trading Day immediately following, and including, the Ex Date for the Spin-Off;
	 	 	 
	CR’	=	
        the Conversion Rate in effect immediately after the close of
        business on the tenth (10th) Trading Day immediately following, and including, the Ex Date for the Spin-Off;

        

	 	 	 
	FMV0	=	the average of the Closing Sale Prices of the Capital Stock or similar equity interest distributed to holders of the Common Stock applicable to one share of Common Stock over the first ten (10) consecutive Trading Day period immediately following, and including, the Ex Date for the Spin-Off; and
	 	 	 
	MP0	=	
        the average of the Closing Sale Prices of the Common
Stock over the first ten (10) consecutive Trading Day period immediately following, and including, the Ex Date for the Spin-Off. 

 

 

The increase to the Conversion Rate under
the preceding paragraph shall become effective at the close of business on the tenth (10th) Trading Day immediately following,
and including, the Ex Date for the Spin-Off; provided that, for purposes of determining the Conversion Rate, in respect
of any conversion during the ten (10) Trading Days immediately following and including, the Ex Date of any Spin-Off, references
in the portion of this Section 10.06(c) related to Spin-Offs to ten (10) consecutive Trading Days shall be deemed replaced
with such lesser number of consecutive Trading Days as have elapsed between the Ex Date of such Spin-Off and the Conversion Date
for such conversion.

 

Subject in all respects to Section 10.14,
rights, options or warrants distributed by the Company to all holders of its Common Stock entitling the holders thereof to subscribe
for or purchase shares of the Company’s Capital Stock, including Common Stock (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 Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances
of the Common Stock, shall be deemed not to have been distributed for purposes of this Section 10.06(c) (and no adjustment
to the Conversion Rate under this Section 10.06(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 10.06(c). If any such right, option or warrant, including any
such existing rights, options or warrants distributed prior to the date of this 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 record date
with respect to new rights, options or warrants with such rights (and a termination or expiration of the existing rights, options
or warrants 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 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 10.06(c) was made, (1) in the case of any such rights, options or warrants that shall all have been redeemed
or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase
to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per
share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights, options or warrants
(assuming such holder had retained such rights, options or warrants), made to all holders of Common Stock as of the date of such
redemption or repurchase, and (2) in the case of such rights, 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 or warrants had not been issued.

 

    	54

    	 

    

For purposes of Section 10.06(a),
Section 10.06(b) and this Section 10.06(c), any dividend or distribution to which this Section 10.06(c)
is applicable that also includes one or both of:

 

(i) a dividend or distribution
of shares of Common Stock to which Section 10.06(a) is applicable (the “Clause A Distribution”);
or

 

(ii) a dividend or distribution
of rights, options or warrants to which Section 10.06(b) is applicable (the “Clause B Distribution”),
then (1) such dividend or distribution, other than the Clause A Distribution and Clause B Distribution,
shall be deemed to be a dividend or distribution to which this Section 10.06(c) is applicable (the “Clause
C Distribution”) and any Conversion Rate adjustment required by this Section 10.06(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 10.06(a) and
Section 10.06(b) with respect thereto shall then be made, except that, if determined by the Board of Directors
(I) the record date of the Clause A Distribution and the Clause B Distribution shall be deemed to be the record date of the Clause
C Distribution and (II) any shares of Common Stock included in the Clause A Distribution or Clause B Distribution shall be deemed
not to be “outstanding immediately prior to the close of business on the record date for such dividend or distribution, or
the open of business on the effective date of such share split or share combination, as the case may be” within the meaning
of Section 10.06(a) or “outstanding immediately prior to the close of business on the record date for such distribution”
within the meaning of Section 10.06(b).

 

In no event shall the Conversion Rate be decreased
pursuant to this Section 10.06(c).

 

(d)              
If any cash dividend or distribution is made to all or substantially all holders of the Common Stock, the Conversion Rate
shall be increased based on the following formula:

 

 

    	55

    	 

    

where

 

	CR0	=	
        the Conversion Rate in effect immediately prior to the close
        of business on the record date for such dividend or distribution;

        

        

	 	 	 
	CR’	=	
        the Conversion Rate in effect immediately after the close of
        business on the record date for such dividend or distribution;

        

	 	 	 
	SP0	=	the average of the Closing Sale Prices of the Common Stock over the ten (10) consecutive Trading Day period immediately preceding the Ex Date for such dividend or distribution; and
	 	 	 
	C	=	the amount in cash per share of Common Stock the Company distributes to holders of its Common Stock.

 

Such increase shall become effective immediately
after the close of business on the record date for such dividend or distribution. If such dividend or distribution is not so paid,
the Conversion Rate shall be decreased to be 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 Security shall receive, for each $1,000 principal amount of Securities, at the same time and upon the same terms
as holders of the Common Stock, the amount of cash such Holder would have received as if such Holder owned a number of shares of
Common Stock equal to the Conversion Rate on the Ex Date for such dividend or distribution.

 

In no event shall the Conversion Rate be decreased
pursuant to this Section 10.06(d).

 

(e)               
If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or exchange offer for the Common
Stock, if the cash and value of any other consideration included in the payment per share of Common Stock exceeds the average of
the Closing Sale Prices of the Common Stock over the ten (10) consecutive Trading-Day period commencing on, and including, 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 last Trading Day of the ten (10) consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the date such tender or exchange offer expires;

    	56

    	 

    

 

 

	CR’	=	the Conversion Rate in effect immediately after the close of business on the last Trading Day of the ten (10) consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the date such tender or exchange offer expires;
	 	 	 
	AC	=	the aggregate value of all cash and any other consideration (as determined by the Board of Directors) paid or payable for shares of Common Stock purchased in such tender or exchange offer;
	 	 	 
	OS0	=	the number of shares of Common Stock outstanding immediately prior to the date such tender or exchange offer expires (prior to giving effect to such tender offer or exchange offer);
	 	 	 
	OS’	=	the number of shares of Common Stock outstanding immediately after the date such tender or exchange offer expires (after giving effect to such tender offer or exchange offer); and
	 	 	 
	SP’	=	the average of the Closing Sale Prices of the Common Stock over the ten (10) consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the date such tender or exchange offer expires.

 

 

The increase to the Conversion Rate under
this Section 10.06(e) shall occur at the close of business on the tenth (10th) Trading Day immediately following, but
excluding, the date such tender or exchange offer expires; provided that, for purposes of determining the Conversion
Rate, in respect of any conversion during the ten (10) Trading Days immediately following, but excluding, the date that any such
tender or exchange offer expires, references in this Section 10.06(e) to ten (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 for such conversion.

 

(f)               
In addition to the foregoing adjustments in subsections (a), (b), (c), (d) and (e) above, the Company may,
from time to time and to the extent permitted by law and the continued listing requirements of The NASDAQ Global Select Market,
increase the Conversion Rate by any amount for a period of at least twenty (20) Business Days or any longer period as may be permitted
or required by law, if the Board of Directors has made a determination, which determination shall be conclusive, that such increase
would be in the best interests of the Company. Such Conversion Rate increase shall be irrevocable during such period. The Company
shall give notice to the Trustee and cause notice of such increase to be mailed to each Holder of Securities at such Holder’s
address as the same appears on the registry books of the Registrar, at least fifteen (15) days prior to the date on which such
increase commences.

 

(g)              
All calculations under this Article X shall be made to the nearest cent or to the nearest one-millionth
of a share, as the case may be. Adjustments to the Conversion Rate will be calculated to the nearest 1/10,000th.

 

    	57

    	 

    

 

 

SECTION
10.07.    No Adjustment. Notwithstanding
anything herein or in the Securities to the contrary, in no event shall the Conversion Rate be adjusted:

 

(i) upon the issuance of any shares
of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Company’s
securities;

 

(ii) upon the issuance of any
shares of Common Stock or restricted stock, restricted stock units, non-qualified stock options, incentive stock options or any
other options or rights (including stock appreciation rights) to purchase shares of Common Stock pursuant to any present or future
employee, director or consultant benefit plan or program of, or assumed by, the Company or any of its Subsidiaries;

 

(iii) upon the issuance of any
shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security not described
in clause (ii) above and outstanding as of the date the Securities were first issued;

 

(iv) for accrued and unpaid interest,
if any, including Additional Interest, if any;

 

(v) upon the repurchase of any
shares of Common Stock pursuant to an open-market share repurchase program or other buy-back transaction that is not a tender offer
or exchange offer of the nature described in Section 10.06; or

 

(vi) for a change in the par value
of shares of Common Stock.

 

No adjustment in the Conversion Rate pursuant
to Section 10.06 shall be required until cumulative adjustments amount to one percent (1%) or more of the Conversion
Rate as last adjusted (or, if never adjusted, the initial Conversion Rate); provided, however, that
any adjustments to the Conversion Rate which by reason of this paragraph are not required to be made shall be carried forward and
taken into account in any subsequent adjustment to the Conversion Rate; provided further that (i) on December 31
of each year and (ii) if the Securities have been converted pursuant to Section 10.01, then, in each case, any adjustments
to the Conversion Rate that have been, and at such time remain, deferred pursuant to this Section 10.07 shall
be given effect, and such adjustments, if any, shall no longer be carried forward and taken into account in any subsequent adjustment
to the Conversion Rate.

 

No adjustment to the Conversion Rate need
be made pursuant to Section 10.06 for a transaction (other than for share splits or share combinations pursuant to
Section 10.06(a)) if the Company provides for each Holder to participate in the transaction, at the same time that holders
of Common Stock participate in such transaction, without conversion, as if such Holder held a number of shares of Common Stock
equal to a fraction whose numerator is the product of the Conversion Rate in effect on the Ex Date or effective date, as applicable,
of the transaction (without giving effect to any adjustment pursuant to Section 10.06 on account of such transaction)
and the aggregate principal amount of Securities held by such Holder and whose denominator is one thousand dollars ($1,000).

 

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SECTION
10.08.    Other Adjustments. In the
event that, as a result of an adjustment made pursuant to Section 10.06 hereof, the Holder of any Security thereafter
surrendered for conversion shall become entitled to receive any shares of Capital Stock other than Common Stock, thereafter the
Conversion Rate of such other shares so receivable upon conversion of any Security shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to Common Stock contained in this
Article X.

 

SECTION
10.09.    Adjustments for Tax Purposes.
Except as prohibited by law and the continued listing requirements of The NASDAQ Global Select Market the Company may (but is not
obligated to) increase the Conversion Rate, in addition to those required by Section 10.06 hereof, as it determines
to be advisable in order that any stock dividend, subdivision of shares, distribution of rights to purchase stock or securities
or distribution of securities convertible into or exchangeable for stock made by the Company or to its shareholders will not be
taxable to the recipients thereof or in order to avoid or diminish any such taxation.

 

SECTION
10.10.    Notice Of Adjustment. Whenever
the Conversion Rate is adjusted, the Company shall promptly mail to Holders at the addresses appearing on the Registrar’s
books a notice of the adjustment and file with the Trustee an Officer’s Certificate briefly stating the facts requiring the
adjustment and the manner of computing it. The certificate shall be conclusive evidence of the correctness of such adjustment.

 

SECTION
10.11.    Notice Of Certain Transactions.

 

In the event that:

 

(a)               
the Company takes any action, or becomes aware of any event, which would require an adjustment in the Conversion Rate,

 

(b)              
the Company takes any action that would require a supplemental indenture pursuant to Section 10.12, or

 

(c)               
there is a dissolution or liquidation of the Company,

 

the Company shall mail to Holders at the addresses appearing
on the Registrar’s books and the Trustee a written notice stating the proposed record, effective or expiration date, as the
case may be, of any transaction referred to in clause (a), (b) or (c) of this Section 10.11. The Company shall
mail such notice at least twenty (20) calendar days (or, in the case of any event that would require an adjustment in the Conversion
Rate pursuant to Section 10.06(b), 10.06(c), 10.06(d) or 10.06(e), thirty (30) Business Days) before such date; however,
failure to mail such notice or any defect therein shall not affect the validity of any transaction referred to in clause
(a), (b) or (c) of this Section 10.11.

 

SECTION
10.12.    Effect of Reclassifications, Consolidations,
Mergers, Binding Share Exchanges or Sales on Conversion Privilege.

 

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If the Company:

 

(a)               
reclassifies the Common Stock (other than a change only in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination of Common Stock to which Section 10.06 applies);

 

(b)              
is a party to a consolidation, merger or binding share exchange; or

 

(c)               
sells, transfers, leases, conveys or otherwise disposes of all or substantially all of the consolidated property or assets
of the Company,

 

in each case pursuant to which the Common Stock would be converted
into or exchanged for, or would constitute solely the right to receive, cash, securities or other property (any such event, a “Merger
Event”) then, if a Holder converts its Securities on or after the effective date of any such transaction, the Securities
will be convertible into the same type (and same proportions) of consideration received by holders of Common Stock in such transaction
(“Reference Property”) and, prior to or at the effective time of such Merger Event, the Company or the successor
or purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture permitted under Section 9.01(a)
providing for such change in the right to convert the Securities; provided, however, that at and
after the effective time of the Merger Event, the number of shares of Common Stock otherwise deliverable upon conversion of the
Securities 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 shares of Common Stock would have received in such Merger Event.

 

If the Merger Event causes the Common Stock
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 Securities will be convertible shall be
deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively
make such an election 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 share of Common Stock. The Company shall notify Holders, the Trustee
and the Conversion Agent (if other than the Trustee) of such weighted average as soon as practicable after such determination is
made.

 

The supplemental indenture referred to in
the first sentence of this Section 10.12 shall provide for adjustments of the Conversion Rate which shall be as nearly
equivalent as may be practicable to the adjustments of the Conversion Rate provided for in this Article X. If, in the
case of any such consolidation, merger, binding share exchange, sale, transfer, lease, conveyance or disposition, the stock or
other securities and property (including cash) receivable thereupon by a holder of Common Stock includes shares of stock or other
securities and property of a Person other than the successor or purchasing Person, as the case may be, in such consolidation, merger,
binding share exchange, sale, transfer, lease, conveyance or disposition, 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 Securities as
the Board of Directors in good faith shall reasonably determine necessary by reason of the foregoing (which determination shall
be described in a Board Resolution). The provisions of this Section 10.12 shall similarly apply to successive consolidations,
mergers, binding share exchanges, sales, transfers, leases, conveyances or dispositions.

 

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The Company shall not become a party to any
Merger Event unless its terms are consistent with this Section 10.12.

 

None of the foregoing provisions shall affect
the right of a Holder to convert its Securities into shares of Common Stock as set forth in Section 10.01 and Section 10.02
prior to the effective date of such Merger Event.

 

In the event the Company shall execute a supplemental
indenture pursuant to this Section 10.12, the Company shall promptly file with the Trustee an Officer’s Certificate
briefly stating the reasons therefor, the kind or amount of shares of stock or securities or property (including cash) receivable
by Holders of the Securities upon the conversion of their Securities after any such Merger Event and any adjustment to be made
with respect thereto.

 

SECTION
10.13.    Trustee’s Disclaimer.
The Trustee has no duty to determine when an adjustment under this Article X should be made, how it should be made
or what such adjustment should be, but may accept as conclusive evidence of the correctness of any such adjustment, and shall be
protected in relying upon, the Officer’s Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 10.10 hereof. The Trustee makes no representation as to the validity or value of any securities
or assets issued upon conversion of Securities, and the Trustee shall not be responsible for the failure by the Company to comply
with any provisions of this Article X.

 

The Trustee shall not be under any responsibility
to determine the correctness of any provisions contained in any supplemental indenture executed pursuant to Section 10.12,
but may accept as conclusive evidence of the correctness thereof, and shall be protected in relying upon, the Officer’s Certificate
with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 10.12 hereof.

 

SECTION
10.14.    Rights Distributions Pursuant
to Shareholders’ Rights Plans. Upon conversion of any Security or a portion thereof, the Company shall make provision
such that the Holder thereof shall receive, in addition to, and concurrently with the delivery of, shares of Common Stock upon
conversion, the rights described in the Rights Agreement and any future shareholders’ rights plan(s) of the Company then
in effect, unless the rights have separated from the Common Stock prior to the time of conversion, in which case the Conversion
Rate shall be adjusted at the time of separation as if the Company distributed to all holders of Common Stock, Distributed Property
as described in Section 10.06(c), subject to readjustment in the event of the expiration, termination or redemption
of such rights.

 

SECTION
10.15.    Issuer’s Conversion Option.

 

(a)               
The Company may, at its option, elect to convert the Securities in whole or in part (an “Issuer’s Conversion
Option”) at any time if the Volume-Weighted Average Price of the Common Stock has equaled or exceeded 150% of the Conversion
Price then in effect for at least 20 Trading Days in any 30 Trading Day period, ending within five Trading Days prior to the date
of the Issuer’s Conversion Notice (the “Issuer’s Conversion Price”).

 

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(b)              
If the Company elects to exercise its Issuer’s Conversion Option pursuant to Section 10.15(a), the Company or, at
the written request and expense of the Company, the Trustee, shall mail or cause to be delivered to each Holder subject to such
Issuer’s Conversion Option a notice (an “Issuer’s Conversion Notice”) of an Issuer’s Conversion
Option not more than 30 Trading Days but not less than 10 Trading Days prior to the Issuer’s Conversion Date. If the Company
gives such notice, it shall also deliver a copy of such Issuer’s Conversion Notice to the Trustee. If such notice is to be
given by the Trustee, the Company shall prepare and provide the form and content of such Issuer’s Conversion Notice to the
Trustee. Such mailing shall be by first class mail or delivered electronically pursuant to the applicable procedures of the Depositary.
The notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not any
Holder receives such notice. The Issuer’s Conversion Option will occur on a date (the “Issuer’s Conversion
Date”) selected by the Company that is not less than 10 Trading Days or more than 30 Trading Days after the date (the
“Issuer’s Conversion Notice Date”) on which such Issuer’s Conversion Notice is mailed to such Holders
in the manner herein provided.

 

Each Issuer’s Conversion Notice shall
state:

 

(i) the Issuer’s Conversion
Notice Date;

 

(ii) the aggregate principal amount
of Securities to be converted;

 

(iii) the CUSIP or similar number
or numbers of the Securities being converted;

 

(iv) the Issuer’s Conversion
Date;

 

(v) that on and after the Issuer’s
Conversion Date interest on the Securities to be converted will cease to accrue;

 

(vi) the name and address of each
Paying Agent and Conversion Agent and the place or places where such Securities are to be surrendered for conversion; and

 

(vii) the Conversion Price then
in effect.

 

(c)               
Notwithstanding the foregoing, the Company may only exercise its Issuer’s Conversion Option pursuant to Section 10.15(a)
if, as evidenced by an Officers’ Certificate, all of the conditions listed below (the “Equity Conditions”)
are satisfied on each day during the period (x) commencing ten days prior to the date an Issuer’s Conversion Notice is mailed
to Holders and (y) ending on the Issuer’s Conversion Date (the “Equity Conditions Measuring Period”).
The Equity Conditions are as follows:

 

(i) either (1) all shares of Common
Stock issuable upon conversion of the Securities and held by a non-Affiliate of the Company shall be eligible for sale without
the need for registration under any applicable federal or state securities laws or (2) a shelf registration statement registering
the resale of the shares of Common Stock issuable upon conversion of the Securities has been filed by the Company and been declared
effective by the SEC or is automatically effective and is available for use, and the Company expects such shelf registration statement
to remain effective and available for use from the Issuer’s Conversion Notice Date until thirty (30) days following the Issuer’s
Conversion Date;

 

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(ii) during the Equity Conditions
Measuring Period, the Common Stock is listed or traded on The New York Stock Exchange, The NASDAQ Global Select Market or
The NASDAQ Global Market (or any of their respective successors) and shall not have been suspended from trading on such exchange
or market (other than suspensions of not more than two Trading Days and occurring prior to the applicable date of determination
due to business announcements by the Company) nor shall delisting or suspension by such exchange or market been threatened or pending
either (A) in writing by such exchange or market or (B) by falling below the then effective minimum listing maintenance requirements
of such exchange or market;

 

(iii) prior to the date of mailing
of an Issuer’s Conversion Option, to the extent any Securities have been delivered to the Company for conversion in accordance
with the terms of the Securities, the Company shall have delivered shares of Common Stock upon conversion of the Securities to
the Holders in accordance with Section 10.02;

 

(iv) any applicable shares of
Common Stock to be issued upon conversion may be issued in full without violating the rules or regulations of The New York
Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) on which the
Common Stock delivered upon conversion is then listed or trading; and

 

(v) no Default or Event of Default
under this Indenture shall have occurred and be continuing.

 

(d)              
If fewer than all of the Securities are to be converted at the option of the Company, the Issuer’s Conversion Notice
shall identify the Securities to be converted (including the CUSIP or similar number or numbers, if any). In case any Security
is to be converted in part only, the Issuer’s Conversion Notice shall state the portion of the principal amount thereof to
be converted and shall state that, on and after the Issuer’s Conversion Date, upon surrender of such Security, a new Security
or Securities in principal amount equal to the unconverted portion thereof will be issued.

 

(e)               
If the Company opts to convert less than all of the outstanding Securities, the Trustee shall (subject, in the case of conversion
of any Global Security, to the applicable procedures of the Depositary) select or cause to be selected the Securities or portions
thereof of the Global Securities or the Securities in certificated form to be converted (in principal amounts of $1,000 or an integral
multiple thereof) by lot, on a pro rata basis or by another method the Trustee deems fair and appropriate. To the extent any Security
or part thereof selected for Issuer’s Conversion Option is submitted for a voluntary conversion to be given effect pursuant
to Section 10.02(g), the portion of such Security submitted for a voluntary conversion shall be deemed (so far as may be possible)
to be from the portion selected for Issuer’s Conversion Option for all purposes hereof; provided, however that any such Security
submitted for a voluntary conversion to be given effect pursuant to Section 10.02(g) shall be voluntarily converted pursuant to
Sections 10.01 and 10.02 hereof.

 

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(f)               
Each Holder of a Security, by the Holder’s acceptance thereof, agrees to take the following actions prior to the Issuer’s
Conversion Date in respect of the portion of its Securities subject to an Issuer’s Conversion Option: (i) surrendering the
converted Security, or portion thereof, to the Conversion Agent, (ii) furnishing appropriate endorsements and transfer documents
if required by the Security Registrar or the Conversion Agent, (iii) if the Security is held in book-entry form, completing and
delivering to the Depositary appropriate instructions pursuant to the Depositary’s book-entry conversion programs, and (iv)
paying the funds, if any, required by Section 10.02(c) and, if required, all taxes or duties. In the event that a Holder does not
take any of the actions set forth in the immediately preceding sentence prior to the Issuer’s Conversion Date, each Holder
of a Security, by the Holder’s acceptance thereof, authorizes and directs the Company to take any action on the Holder’s
behalf to effect the Issuer’s Conversion Option and appoints the Company such Holder’s attorney-in-fact for any and
all such purposes. Such appointment as attorney-in-fact is coupled with an interest and is irrevocable so long as any Security
is outstanding.

 

Upon presentation of any Security converted
in part only, the Company shall execute, and the Trustee shall authenticate and make available for delivery to the Holder thereof,
at the expense of the Company, a new Security or Securities, of authorized denominations, in principal amount equal to the unconverted
portion of the Security or Securities so presented (subject to the applicable procedures of the Depositary in the case of Global
Securities).

 

(g)              
Upon conversion, interest on the Security or portion of Securities so called for Issuer’s Conversion Option shall
cease to accrue, and such Securities shall cease to be entitled to any benefit under the Indenture, and the Holders thereof shall
have no right in respect of such Securities except the right to receive the shares of Common Stock and cash, if any, to which they
are entitled pursuant to Section 10.02 (other than Section 10.02(c)) and this Section 10.15.

 

(h)              
The Trustee has no duty to verify whether the Equity Conditions have been satisfied and may conclusively rely on the Officers’
Certificate delivered in connection therewith.

 

(i)                
If any of the provisions of this Section 10.15 are inconsistent with applicable law at the time of such Issuer’s Conversion
Option, such law shall govern.

 

ARTICLE XI

Concerning The Holders

 

SECTION
11.01.    Action by Holders. Whenever
in this Indenture it is provided that the Holders of a specified percentage in aggregate principal amount of the Securities may
take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action, the Holders of such specified percentage have joined therein
may be evidenced (i) by any instrument or any number of instruments of similar tenor executed by Holders in person or by agent
or proxy appointed in writing, (ii) by the record of the Holders voting in favor thereof at any meeting of Holders duly called
and held in accordance with the provisions of Article XII or (iii) by a combination of such instrument or instruments
and any such record of such a meeting of Holders. Whenever the Company or the Trustee solicits the taking of any action by the
Holders of the Securities, the Company or the Trustee may fix, but shall not be required to, in advance of such solicitation, a
date as the record date for determining Holders entitled to take such action. The record date if one is selected shall be not more
than fifteen (15) days prior to the date of commencement of solicitation of such action.

 

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SECTION
11.02.    Proof of Execution by Holders.
Subject to the provisions of Section 7.01, Section 7.02 and Section 12.05, proof of the execution
of any instrument by a Holder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations
as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The holding of Securities shall
be proved by the security register of the Registrar or by a certificate of the Registrar. The record of any Holders’ meeting
shall be proved in the manner provided in Section 12.06.

 

SECTION
11.03.    Persons Deemed Absolute Owners.
The Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion Agent and any Registrar may deem the Person
in whose name a Security shall be registered upon the security register of the Registrar to be, and may treat it as, the absolute
owner of such Security (whether or not such Security shall be overdue and notwithstanding any notation of ownership or other writing
thereon made by any Person other than the Company or any Registrar) for the purpose of receiving payment of or on account of the
principal of and (subject to Section 2.12 and Section 4.01) accrued and unpaid interest on such Security,
for conversion of such Security and for all other purposes; and neither the Company nor the Trustee nor any authenticating agent
nor any Paying Agent nor any Conversion Agent nor any Registrar shall be affected by any notice to the contrary. All such payments
so made to any Holder for the time being, or upon its order, shall be valid, and, to the extent of the sum or sums so paid, effectual
to satisfy and discharge the liability for monies payable upon any such Security. Notwithstanding anything to the contrary in this
Indenture or the Securities following an Event of Default, any Holder of a beneficial interest in a Global Security may directly
enforce against the Company, without the consent, solicitation, proxy, authorization or any other action of the Depositary or any
other Person, such Holder’s right to exchange such beneficial interest for a Physical Security in accordance with the provisions
of this Indenture.

 

ARTICLE XII

Holders’ Meetings

 

SECTION
12.01.    Purpose of Meetings. A meeting
of Holders may be called at any time and from time to time pursuant to the provisions of this Article XII for any of
the following purposes:

 

(a)               
to give any notice to the Company or to the Trustee or to give any directions to the Trustee permitted under this Indenture,
or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized
to be taken by Holders pursuant to any of the provisions of Article VI;

 

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(b)              
to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article VII;

 

(c)               
to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 9.02;
or

 

(d)              
to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount
of the Securities under any other provision of this Indenture or under applicable law.

 

SECTION
12.02.    Call of Meetings by Trustee.
The Trustee may at any time call a meeting of Holders to take any action specified in Section 12.01, to be held at
such time and at such place as the Trustee shall determine. Notice of every meeting of the Holders, 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 11.01, shall be mailed to Holders of such Securities at their addresses as they shall appear
on the security register of the Registrar. Such notice shall also be mailed to the Company. Such notices shall be mailed not less
than twenty (20) nor more than ninety (90) days prior to the date fixed for the meeting.

 

Any meeting of Holders shall be valid without
notice if the Holders of all Securities then outstanding are present in person or by proxy or if notice is waived before or after
the meeting by the Holders of all Securities 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
12.03.    Call of Meetings by Company or
Holders. 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 Securities then outstanding, shall have requested the Trustee to call a meeting of Holders, 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 twenty (20) days after receipt of such request, then the Company or such Holders may determine the time and
the place for such meeting and may call such meeting to take any action authorized in Section 12.01, by mailing notice
thereof as provided in Section 12.02.

 

SECTION
12.04.    Qualifications for Voting.
To be entitled to vote at any meeting of Holders a Person shall (a) be a Holder of one or more Securities 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 Securities 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
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
12.05.    Regulations. Notwithstanding
any other provision of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting
of Holders, in regard to proof of the holding of Securities and of the appointment of proxies, and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall think fit.

 

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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 as provided
in Section 12.03, in which case the Company or the Holders 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 Securities represented at the meeting and entitled to vote at the meeting.

 

Subject to the provisions of Section 2.09,
at any meeting of Holders each Holder or proxyholder shall be entitled to one vote for each $1,000 principal amount of Securities
held or represented by such Holder or proxyholder, as the case may be; provided, however, that no vote shall
be cast or counted at any meeting in respect of any Security challenged as not outstanding and ruled by the chairman of the meeting
to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Securities held by it or
instruments in writing as aforesaid duly designating it as the proxy to vote on behalf of other Holders. Any meeting of Holders
duly called pursuant to the provisions of Section 12.02 or Section 12.03 may be adjourned from time to
time by the Holders of a majority of the aggregate principal amount of Securities represented at the meeting, whether or not constituting
a quorum, and the meeting may be held as so adjourned without further notice.

 

SECTION
12.06.    Voting. The vote upon any
resolution submitted to any meeting of Holders shall be by written ballot on which shall be subscribed the signatures of the Holders
or of their representatives by proxy and the outstanding principal amount of the Securities held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their verified written reports in duplicate of all votes
cast at the meeting. A record in duplicate of the proceedings of each meeting of Holders 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 12.02. The record shall show the principal amount of the
Securities 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
12.07.    No Delay of Rights by Meeting.
Nothing contained in this Article XII shall be deemed or construed to authorize or permit, by reason of any call of
a meeting of Holders 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 under any of the provisions of this
Indenture or of the Securities.

 

    	67

    	 

    

 

 

ARTICLE
XIII

 

Subsidiary Guarantees

 

SECTION
13.01.    Subsidiary Guarantees. Each
Subsidiary Guarantor hereby unconditionally guarantees, jointly and severally, to each Holder and to the Trustee and its successors
and assigns (a) the full and punctual payment of principal of, premium, if any, and interest on the Securities when due, whether
at maturity, by acceleration, by redemption or otherwise, and all other monetary obligations of the Company under this Indenture
and the Securities and (b) the full and punctual performance within applicable grace periods of all other obligations of the
Company under this Indenture and the Securities (all the foregoing being hereinafter collectively called the “Obligations”).
Each Subsidiary Guarantor further agrees that the Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Subsidiary Guarantor, and that such Subsidiary Guarantor will remain bound under this Article XIII
notwithstanding any extension or renewal of any Obligation.

 

Each Subsidiary Guarantor waives presentation
to, demand of, payment from and protest to the Company of any of the Obligations and also waives notice of protest for nonpayment.
Each Subsidiary Guarantor waives notice of any default under the Securities or the Obligations. The obligations of each Subsidiary
Guarantor hereunder shall not be affected by (a) the failure of any Holder or the Trustee to assert any claim or demand or
to enforce any right or remedy against the Company or any other Person under this Indenture, the Securities or any other agreement
or otherwise; (b) any extension or renewal of any thereof; (c) any rescission, waiver, amendment or modification of any
of the terms or provisions of this Indenture, the Securities or any other agreement; (d) the release of any security held
by any Holder or the Trustee for the Obligations or any of them; (e) the failure of any Holder or the Trustee to exercise
any right or remedy against any other guarantor of the Obligations; or (f) any change in the ownership of such Subsidiary
Guarantor.

 

Each Subsidiary Guarantor further agrees that
its Subsidiary Guarantee herein constitutes a guarantee of payment, performance and compliance when due (and not a guarantee of
collection) and waives any right to require that any resort be had by any Holder or the Trustee to any security held for payment
of the Obligations.

 

Except as expressly set forth in Section 5.03,
the obligations of each Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination
for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense
of setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability of
the Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of each Subsidiary Guarantor herein
shall not be discharged or impaired or otherwise affected by the failure of any Holder or the Trustee to assert any claim or demand
or to enforce any remedy under this Indenture, the Securities or any other agreement, by any waiver or modification of any thereof,
by any default, failure or delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or
omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of such Subsidiary
Guarantor or would otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law or equity.

 

    	68

    	 

    

Each Subsidiary Guarantor further agrees that
its Subsidiary Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or
any part thereof, of principal of or interest on any Obligation is rescinded or must otherwise be restored by any Holder or the
Trustee upon the bankruptcy or reorganization of the Company or otherwise.

 

In furtherance of the foregoing and not in
limitation of any other right which any Holder or the Trustee has at law or in equity against any Subsidiary Guarantor by virtue
hereof, upon the failure of the Company to pay the principal of or interest on any Obligation when and as the same shall become
due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Obligation, each
Subsidiary Guarantor hereby promises to and will, upon receipt of written demand by the Trustee, forthwith pay, or cause to be
paid, in cash, to the Holders or the Trustee an amount equal to the sum of (i) the unpaid amount of such Obligations, (ii) accrued
and unpaid interest on such Obligations (but only to the extent not prohibited by law) and (iii) all other monetary Obligations
of the Company to the Holders and the Trustee.

 

Each Subsidiary Guarantor agrees that it shall
not be entitled to any right of subrogation in respect of any Obligations guaranteed hereby until payment in full in cash of all
Obligations. Each Subsidiary Guarantor further agrees that, as between it, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article VI for
the purposes of such Subsidiary Guarantor’s Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Obligations guaranteed hereby, and (y) in the event of any declaration of acceleration
of such Obligations as provided in Article VI, such Obligations (whether or not due and payable) shall forthwith become due
and payable by such Subsidiary Guarantor for the purposes of this Section.

 

Each Subsidiary Guarantor also agrees to pay
any and all costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing
any rights under this Section 13.01.

 

The Subsidiary Guarantee issued by any Subsidiary
Guarantor will be automatically and unconditionally released and discharged upon (1) any sale, exchange or transfer to any
Person (other than an Affiliate of the Company) of all of the Capital Stock of such Subsidiary Guarantor or (2) the designation
of such Subsidiary Guarantor as an Unrestricted Subsidiary, in each case, in compliance with the terms of this Indenture.

 

SECTION
13.02.    Contribution. Each of the
Company and any Subsidiary Guarantor (a “Contributing Party”) agrees that, in the event a payment shall be made
by any other Subsidiary Guarantor under any Subsidiary Guarantee (the “Claiming Guarantor”), the Contributing
Party shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment multiplied by a fraction, the numerator
of which shall be the net worth of the Contributing Party on the date hereof and the denominator of which shall be the aggregate
net worth of the Company and all the Subsidiary Guarantors on the date hereof (or, in the case of any Subsidiary Guarantor becoming
a party hereto pursuant to Section 9.01, the date of the supplemental indenture executed and delivered by such Subsidiary
Guarantor).

 

    	69

    	 

    

 

 

SECTION
13.03.    Successors and Assigns. This
Article XIII shall be binding upon each Subsidiary Guarantor and its successors and assigns and shall inure to the benefit
of the successors and assigns of the Trustee and the Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this Indenture and in the Securities shall automatically
extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Indenture.

 

SECTION
13.04.    No Waiver. Neither a failure
nor a delay on the part of either the Trustee or the Holders in exercising any right, power or privilege under this Article XIII
shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any
right, power or privilege. The rights, remedies and benefits of the Trustee and the Holders herein expressly specified are cumulative
and not exclusive of any other rights, remedies or benefits which either may have under this Article XIII at law, in equity,
by statute or otherwise.

 

SECTION
13.05.    Modification. No modification,
amendment or waiver of any provision of this Article XIII, nor the consent to any departure by any Subsidiary Guarantor therefrom,
shall in any event be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on any Subsidiary
Guarantor in any case shall entitle such Subsidiary Guarantor to any other or further notice or demand in the same, similar or
other circumstances.

 

SECTION
13.06.    Execution of Supplemental Indenture
for Future Subsidiary Guarantors. Each Subsidiary which is required to become a Subsidiary Guarantor pursuant to Section 4.10
shall promptly execute and deliver to the Trustee a supplemental indenture in the form of Exhibit D hereto pursuant to which
such Subsidiary shall become a Subsidiary Guarantor under this Article XIII and shall guarantee the Obligations. Concurrently
with the execution and delivery of such supplemental indenture, the Company shall deliver to the Trustee an Opinion of Counsel
to the effect that such supplemental indenture has been duly authorized, executed and delivered by such Subsidiary and that, subject
to the application of bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other similar laws relating to
creditors’ rights generally and to the principles of equity, whether considered in a proceeding at law or in equity, the
Subsidiary Guarantee of such Subsidiary Guarantor is a legal, valid and binding obligation of such Subsidiary Guarantor, enforceable
against such Subsidiary Guarantor in accordance with its terms.

 

SECTION
13.07.    Effectiveness of Subsidiary Guarantees.
This Article XIII shall only become effective upon the execution of the supplemental indenture included as Exhibit D by the initial
Subsidiary Guarantors on the Issue Date.

 

    	70

    	 

    

 

 

ARTICLE XIV

Miscellaneous

 

SECTION
14.01.    [Reserved].

 

SECTION
14.02.    Notices. Any notice or communication
by the Company or the Trustee to the other shall be deemed to be duly given if made in writing and delivered:

 

(a)               
by hand (in which case such notice shall be effective upon delivery);

 

(b)              
by facsimile (in which case such notice shall be effective upon receipt of confirmation of good transmission thereof); or

 

(c)               
by overnight delivery by a nationally recognized courier service (in which case such notice shall be effective on the Business
Day immediately after being deposited with such courier service), in each case to the recipient party’s address or facsimile
number, as applicable, set forth in this Section 14.02. The Company or the Trustee by notice to the other may designate
additional or different addresses or facsimile numbers for subsequent notices or communications.

 

Any notice or communication to a Holder shall
be mailed to its address shown on the register kept by the Registrar. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in
the manner provided above, it is duly given, whether or not the addressee receives it.

 

If the Company mails a notice or communication
to Holders, it shall mail a copy to the Trustee and each Securities Agent at the same time. If the Trustee or the Securities Agent
is required, pursuant to the express terms of this Indenture or the Securities, to mail a notice or communication to Holders, the
Trustee or the Securities Agent, as the case may be, shall also mail a copy of such notice or communication to the Company.

 

All notices or communications shall be in
writing.

 

The Company’s address is:

 

James River Coal Company

901 E. Byrd Street, Suite 1600

Richmond, Virginia 23219

Attention of Chief Accounting Officer

Facsimile: (804) 780-0643

 

    	71

    	 

    

with a copy to:

 

Kilpatrick Townsend & Stockton
LLP

Suite 2800

1100 Peachtree Street

Atlanta, Georgia 30309

Attention of David A. Stockton

Facsimile: (404) 541-3402

 

The Trustee’s address is:

 

U.S. Bank National Association

1349 West Peachtree Street, Suite 1050

Atlanta, GA 30309

Attention of Corporate Trust Services

Facsimile: (404) 898-8844

 

SECTION
14.03.    Communication by Holders With
Other Holders. Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under
this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

SECTION
14.04.    Certificate and Opinion as to
Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture,
the Company shall furnish to the Trustee:

 

(a)               
an Officer’s Certificate stating that, in the opinion of the signatories to such Officer’s Certificate, all
conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b)              
an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Each signatory to an Officer’s Certificate
or an Opinion of Counsel may (if so stated) rely, effectively, upon an Opinion of Counsel as to legal matters and an Officer’s
Certificate or certificates of public officials as to factual matters if such signatory reasonably and in good faith believes in
the accuracy of the document relied upon.

 

SECTION
14.05.    Statements Required in Certificate
or Opinion. Each Officer’s Certificate or Opinion of Counsel with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

 

(a)               
a statement that the Person making such certificate or opinion has read such covenant or condition;

 

(b)              
a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

    	72

    	 

    

 

 

(c)               
a statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to
enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d)              
a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

 

SECTION
14.06.    Rules by Trustee and Agents.
The Registrar, Paying Agent or Conversion Agent may make reasonable rules and set reasonable requirements for their respective
functions.

 

SECTION
14.07.    Legal Holidays.

 

A “Legal Holiday” is a
Saturday, a Sunday or a day on which banking institutions are not required to be open in the City of New York, in the State
of New York. If a payment date is a Legal Holiday, payment may be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue on that payment for the intervening period.

 

A “Business Day” is a day
other than a Legal Holiday.

 

SECTION
14.08.    Duplicate Originals. The parties
may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the
same agreement. Delivery of an executed counterpart by facsimile shall be effective as delivery of a manually executed counterpart
thereof.

 

SECTION
14.09.    GOVERNING LAW. THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW, SHALL GOVERN THIS INDENTURE AND THE SECURITIES AND ANY
CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER, OR RELATING TO, THIS INDENTURE OR THE SECURITIES.

 

SECTION
14.10.    No Adverse Interpretation of Other
Agreements. This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or any of
its Subsidiaries. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

SECTION
14.11.    Successors. All agreements
of the Company in this Indenture and the Securities shall bind its successors and assigns. All agreements of the Trustee in this
Indenture shall bind its successors.

 

SECTION
14.12.    Separability. In case any
provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired thereby and a Holder shall have no claim therefor against
any party hereto.

 

SECTION
14.13.    Table of Contents, Headings, Etc.
The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or
provisions hereof.

 

    	73

    	 

    

 

 

SECTION
14.14.    Calculations In Respect Of The
Securities. The Company and its agents shall make all calculations under this Indenture and the Securities. These calculations
include, but are not limited to, determinations of the Volume-Weighted Average Price and the Closing Sale Price of the Common Stock,
the number of shares deliverable upon conversion of the Securities and amounts of interest (including Additional Interest) payable
on the Securities. The Company and its agents shall make all of these calculations in good faith, and, absent manifest error, such
calculations shall be final and binding on all Holders. The Company shall provide a copy of such calculations to the Trustee as
required hereunder, and, absent such manifest error, the Trustee shall be entitled to conclusively rely on the accuracy of any
such calculation without independent verification.

 

SECTION
14.15.    No Personal Liability of Directors,
Officers, Employees or Shareholders. None of the Company’s past, present or future directors, officers, employees or
shareholders, as such, shall have any liability for any of the Company’s obligations under this Indenture or the Securities
or for any claim based on, or in respect or by reason of, such obligations or their creation. By accepting a Security, each holder
waives and releases all such liability. This waiver and release is part of the consideration for the issue of the Securities.

 

SECTION
14.16.    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 which are consistent with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

[The Remainder of This Page Intentionally
Left Blank; Signature Page Follows]

 

 

    	74

    	 

    

 

 

 

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

	JAMES RIVER COAL COMPANY,
	 
	by	/s/Samuel M. Hopkins II
	 	Name:  Samuel M. Hopkins II
	 	Title:  Vice President

 

 

 

 

 

 

 

 

[Signature page to Indenture]

 

    	 

    	 

    

 

 

 

	
        SUBSIDIARY GUARANTORS:

        BDCC HOLDING COMPANY, INC.

        BELL COUNTY COAL CORPORATION

        BLEDSOE COAL CORPORATION

        BLEDSOE COAL LEASING COMPANY

        BLUE DIAMOND COAL COMPANY

        EOLIA RESOURCES, INC.

        IRP GP HOLDCO LLC

        IRP LP HOLDCO INC.

        JAMES RIVER COAL SALES, INC.

        JAMES RIVER COAL SERVICE COMPANY

        JAMES RIVER ESCROW INC.

        JELLICO MINING, LLC

        JOHNS CREEK COAL COMPANY

        JOHNS CREEK ELKHORN COAL CORPORATION

        JOHNS CREEK PROCESSING COMPANY

        LEECO, INC.

        MCCOY ELKHORN COAL CORPORATION

        SHAMROCK COAL COMPANY, INCORPORATED

        TRIAD MINING, INC.

        TRIAD UNDERGROUND MINING, LLC

        INTERNATIONAL RESOURCE PARTNERS LP

        INTERNATIONAL RESOURCES HOLDINGS I LLC

        IRP WV CORP.

        INTERNATIONAL RESOURCES HOLDINGS II LLC

        INTERNATIONAL RESOURCES, LLC

        HAMPDEN COAL COMPANY, LLC

        ROCKHOUSE CREEK DEVELOPMENT, LLC

        CHAFIN BRANCH COAL COMPANY, LLC

        SNAP CREEK MINING, LLC

        LOGAN & KANAWHA COAL CO., LLC

        IRP KENTUCKY LLC

        LAUREL MOUNTAIN RESOURCES LLC

        BUCK BRANCH RESOURCES LLC

        On behalf of each of the above named entities

	 
	by	/s/Samuel M. Hopkins II
	 	Name:  Samuel M. Hopkins II
	 	Title:  Vice President

 

 

 

 

[Signature page to Indenture]

    	 

    	 

    

 

 

 

	U.S. BANK NATIONAL ASSOCIATION, as Trustee,
	 
	by	/s/Muriel Shaw
	 	Name:  Muriel Shaw
	 	Title:    Assistant Vice President

 

 

 

 

 

 

[Signature page to Indenture]

 

 

 

    	 

    	 

    

 

 

 

EXHIBIT A

 

[Face of Security]

 

JAMES RIVER
COAL COMPANY

 

Certificate No. _______

 

[INSERT SECURITY PRIVATE
PLACEMENT LEGEND (SECURITIES) AND GLOBAL SECURITY LEGEND AS REQUIRED]

 

10.00% Convertible Senior Notes due 2018
(the “Securities”)

 

CUSIP No. [●]

 

James River Coal Company, a Virginia corporation
(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 its registered assigns, the principal
sum [of [___________] dollars ($[___________])]1 [as set forth in the “Schedule
of Exchanges of Interests in the Global Security” attached hereto, which amount, taken together with the principal amounts
of all other outstanding Securities, shall not, unless permitted by the Indenture, exceed [___________] dollars ($[___________])
in aggregate at any time, in accordance with the rules and procedures of the Depositary]2,
on June 1, 2018, and to pay interest thereon, as provided on the reverse hereof, until the principal and any unpaid and accrued
interest are paid or duly provided for.

 

Interest Payment Dates: June 1 and December
1, with the first payment to be made on December 1, 2013.

 

Record Dates: May 15 and November 15.

 

The provisions on the back of this certificate
are incorporated as if set forth on the face hereof.

 

1
This is included for Physical Securities.

 

2
This is included for Global Securities.

 

    	A-1

    	 

    

 

IN WITNESS WHEREOF, James River Coal
Company has caused this instrument to be duly signed.

 

	JAMES RIVER COAL COMPANY
	 
	by	 
	 	Name: Samuel M. Hopkins II
	 	Title: Vice President

 

 

 

 

Dated: ________________

 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities referred to

in the within-mentioned Indenture.

 

	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 
	by	 
	 	Authorized Signatory
	 	 

 

 

Dated: __________________

 

 

 

 

[Signature Page to Global Note]

 

    	A-2

    	 

    

 

[REVERSE OF SECURITY]

 

JAMES
RIVER COAL COMPANY

 

10.00%
Convertible Senior Notes due 2018

 

1.     
Interest. James River Coal Company, a Virginia corporation (the “Company”), promises to pay interest
on the principal amount of this Security at the rate per annum shown above. The Company will pay interest, payable semi-annually
in arrears, on June 1 and December 1 of each year, with the first payment to be made on December 1, 2013. Interest on the Securities
will accrue on the principal amount from, and including, the most recent date to which interest has been paid or provided for or,
if no interest has been paid, from, and including, May 22, 2013, in each case to, but excluding, the next Interest Payment Date
or Maturity Date, as the case may be. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Company
shall pay, in cash, interest on any overdue amount (including, to the extent permitted by applicable law, overdue interest) at
the rate borne by the Securities. In certain circumstances, Additional Interest will be payable in accordance with Section 4.09(a),
Section 4.09(b), Section 4.09(c) and Section 6.02(b) of the Indenture and any reference to “interest” shall
be deemed to include any such Additional Interest.

 

2.     
Maturity. The Securities will mature on June 1, 2018.

 

3.     
Method of Payment. Except as provided in the Indenture (as defined below), the Company will pay interest on the Securities
to the Persons who are Holders of record of Securities at the close of business on the Record Date set forth on the face of this
Security immediately preceding the applicable Interest Payment Date. Holders must surrender Securities to a Paying Agent to collect
the principal amount plus, if applicable, accrued and unpaid interest, if any, or the Fundamental Change Repurchase Price, payable
as herein provided on the Maturity Date or Fundamental Change Repurchase Date, as applicable. The Company will pay, in money of
the United States that at the time of payment is legal tender for payment of public and private debts, all amounts due in cash
with respect to the Securities, which amounts shall be paid (A) in the case this Security is a Global Security, by wire transfer
of immediately available funds to the account designated by the Depositary or its nominee; (B) in the case this Security is a Physical
Security held by a Holder of more than five million dollars ($5,000,000) in aggregate principal amount of Securities, by wire transfer
of immediately available funds to the account specified by such Holder or, if such Holder does not specify an account, by mailing
a check to the address of such Holder set forth in the register of the Registrar; and (C) in the case this Security is a Physical
Security held by a Holder of five million dollars ($5,000,000) or less in aggregate principal amount of Securities, by mailing
a check to the address of such Holder set forth in the register of the Registrar.

 

4.     
Paying Agent, Registrar, Conversion Agent. Initially, U.S. Bank National Association (the “Trustee”)
will act as Paying Agent, Registrar and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent
without prior notice.

 

5.     
Indenture. The Company issued the Securities under an Indenture dated as of May 22, 2013 (the “Indenture”)
between the Company and the Trustee. The terms of the Securities include those stated in the Indenture and those required to be
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”)
as amended and in effect from time to time. The Securities are subject to all such terms, and Holders are referred to the Indenture
and the TIA for a statement of such terms. The Securities are general unsecured senior obligations of the Company limited to $123,261,000
aggregate principal amount, except as otherwise provided in the Indenture (except for Securities issued in substitution for destroyed,
mutilated, lost or stolen Securities). Terms used herein without definition and which are defined in the Indenture have the meanings
assigned to them in the Indenture. In the event of any inconsistency between the terms of this Security and the terms of the Indenture,
the terms of the Indenture shall control.

 

 

    	A-3

    	 

    

 

 

 

6.     
Redemption. The Securities are not redeemable at the option of the Company prior to the Maturity Date, and no sinking
fund is provided for the Securities.

 

7.     
Repurchase at Option of Holder Upon a Fundamental Change. Subject to the terms and conditions of the Indenture, in
the event of a Fundamental Change, each Holder of the Securities shall have the right, at the Holder’s option, to require
the Company to repurchase such Holder’s Securities including any portion thereof which is $1,000 in principal amount or any
integral multiple thereof on a date selected by the Company (the “Fundamental Change Repurchase Date”), which
date is no later than thirty five (35) days, nor earlier than twenty (20) days, after the date on which notice of such Fundamental
Change is mailed in accordance with the Indenture, at a price payable in cash equal to one hundred percent (100%) of the principal
amount of such Security, plus accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental
Change Repurchase Price”); provided, however, that if such Fundamental Change Repurchase Date is after
a Record Date for the payment of an installment of interest and on or before the related Interest Payment Date, then the full amount
of accrued and unpaid interest, if any, to, but excluding, such Interest Payment Date will be paid on such Interest Payment Date
to the Holder of record of such Securities at the close of business on such Record Date (without any surrender of such Securities
by such Holder), and the Fundamental Change Repurchase Price shall not include any accrued but unpaid interest.

 

8.     
Conversion. Subject to the provisions of the Indenture, the Securities shall be convertible into shares of Common
Stock in accordance with Article X of the Indenture. To convert a Security, a Holder must satisfy the requirements
of Section 10.02(a) of the Indenture. A Holder may convert a portion of a Security if the portion is $1,000 principal amount
or an integral multiple of $1,000 principal amount.

 

Notwithstanding anything herein to the contrary,
no Security may be converted after the close of business on the Business Day immediately preceding the Maturity Date.

 

Upon conversion of a Security, the Holder
thereof shall be entitled to receive the shares of Common Stock issuable upon conversion in accordance with Article X
of the Indenture, plus accrued and unpaid interest to the Conversion Date.

 

The initial Conversion Rate is 200 shares
of Common Stock per $1,000 principal amount of Securities (which results in an effective initial Conversion Price of approximately
$5.00 per share) subject to adjustment in the event of certain circumstances as specified in the Indenture. The Company will deliver
cash in lieu of any fractional share.

 

    	A-4

    	 

    

 

 

The Company may elect to optionally convert
the Securities in whole or in part at any time if the Volume-Weighted Average Price of the Common Stock
has equaled or exceeded 150% of the Conversion Price then in effect for at least 20 Trading Days in any 30 Trading Day period,
ending within five Trading Days prior to the date of the Issuer’s Conversion Notice, upon the terms and conditions set forth
in Section 10.15 of the Indenture.

 

9.     
Denominations, Transfer, Exchange. The Securities are in registered form, without coupons, in denominations of $1,000
principal amount and integral multiples of $1,000 principal amount. The transfer of Securities may be registered and Securities
may be exchanged as provided in the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents. No service charge shall be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge that may be imposed in connection
with certain transfers or exchanges as set forth in the Indenture. The Company or the Trustee, as the case may be, shall not be
required to register the transfer of or exchange any Security for which a Purchase Notice has been delivered, and not withdrawn,
in accordance with the Indenture, except the unrepurchased portion of Securities being repurchased in part.

 

10.     
Persons Deemed Owners. The registered Holder of a Security may be treated as the owner of such Security for all purposes.

 

11.     
Merger or Consolidation. The Company shall not consolidate with, or merge with or into, or sell, transfer, lease,
convey or otherwise dispose of all or substantially all of the consolidated property or assets of the Company to, another Person,
whether in a single transaction or series of related transactions, unless (i) the Company is the continuing corporation or such
other Person is a corporation organized and existing under the laws of the United States of America, any State thereof or the District
of Columbia and such other Person assumes by supplemental indenture all the obligations of the Company under the Securities and
the Indenture and (ii) immediately after giving effect to the transaction or series of transactions, no Default or Event of Default
shall exist, as set forth in Article V of the Indenture.

 

12.     
Amendments, Supplements and Waivers. Subject to certain exceptions, the Indenture or the Securities may be amended
or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the outstanding Securities,
and certain existing Defaults or Events of Default may be waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. In accordance with the terms of the Indenture, the Company, with the consent of the
Trustee, may amend or supplement this Indenture or the Securities without notice to or the consent of any Securityholder: (i) to
comply with Section 5.01 or Section 10.12 of the Indenture; (ii) to secure the obligations of the Company in respect
of the Securities; (iii) to evidence and provide for the appointment of a successor Trustee in accordance with Section 7.08
of the Indenture; (iv) to comply with the provisions of any clearing agency, clearing corporation or clearing system, or the requirements
of the Trustee or the Registrar, relating to transfers and exchanges of the Securities pursuant to the Indenture; (v) to add to
the covenants of the Company described in the Indenture for the benefit of Securityholders or to surrender any right or power conferred
upon the Company; (vi) to make provisions with respect to adjustments to the Conversion Rate as required by the Indenture or to
increase the Conversion Rate in accordance with the Indenture, (vii) to add or remove a Subsidiary Guarantor in accordance with
Section 4.10 of the Indenture and (viii) to add or modify any other provision of the Indenture with respect to matters or questions
arising hereunder which the Company may deem necessary or desirable and which does not materially and adversely affect the rights
of any Holder. In addition, the Company and the Trustee may enter into a supplemental indenture without the consent of Holders
of the Securities to cure any ambiguity, defect, omission or inconsistency in the Indenture in a manner that does not, individually
or in the aggregate with all other changes, adversely affect the rights of any Holder in any respect.

 

    	A-5

    	 

    

 

 

13.     
Defaults and Remedies. If an Event of Default (excluding an Event of Default specified in Section 6.01(i) or
(j) of the Indenture with respect to the Company (but including an Event of Default specified in Section 6.01(i) or (j) of
the Indenture solely with respect to a Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate
would constitute a Significant Subsidiary of the Company)) occurs and is continuing, the Trustee by notice to the Company or the
Holders of at least twenty five percent (25%) in principal amount of the Securities then outstanding by notice to the Company and
the Trustee may declare the Securities to be due and payable. Upon such declaration, the principal of, and any accrued and unpaid
interest on, all Securities shall be due and payable immediately. If an Event of Default specified in Section 6.01(i) or (j)
of the Indenture with respect to the Company (excluding, for purposes of this sentence, an Event of Default specified in Section 6.01(i)
or (j) of the Indenture solely with respect to a Significant Subsidiary of the Company or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company) occurs, the principal of, and accrued and unpaid interest on,
all the Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder. Subject to certain exceptions, the Holders of a majority in aggregate principal amount of the
Securities then outstanding by written notice to the Trustee may rescind or annul an acceleration and its consequences if (A) the
rescission would not conflict with any order or decree, (B) all existing Events of Default, except the nonpayment of principal
or interest that has become due solely because of the acceleration, have been cured or waived and (C) all amounts due to the Trustee
under Section 7.07 of the Indenture have been paid.

 

If a Default or Event of Default occurs and
is continuing as to which the Trustee has received written notice pursuant to the provisions of the Indenture, or as to which a
Responsible Officer of the Trustee shall have actual knowledge, the Trustee shall mail to each Holder a notice of the Default or
Event of Default within thirty (30) days after it occurs unless such Default or Event of Default has been cured or waived. Except
in the case of a Default or Event of Default in payment or delivery of any amounts due (including principal, interest, the Fundamental
Change Repurchase Price or the consideration due upon conversion) with respect to any Security, the Trustee may withhold the notice
if, and so long as it in good faith determines that, withholding the notice is in the best interests of Holders. The Company must
deliver to the Trustee an annual compliance certificate.

 

    	A-6

    	 

    

 

 

14.     
Registration Rights. The Holders are entitled to the benefits of the Exchange Agreements. In the event of a Registration
Default, the Holder shall be entitled to Additional Interest as specified in Section 4.09(c) until the Registration Default is
cured.

 

15. 
Trustee Dealings with the Company. The Trustee under the Indenture, or any banking institution serving as successor
Trustee thereunder, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for,
the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not Trustee.

 

16. 
Authentication. This Security shall not be valid until authenticated by the manual or facsimile signature of the
Trustee or an authenticating agent in accordance with the Indenture.

 

17. 
Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants
in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

THE COMPANY WILL FURNISH TO ANY HOLDER UPON
WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE INDENTURE. REQUESTS MAY BE MADE TO:

 

James River Coal Company

901 E. Byrd Street, Suite 1600

Richmond, Virginia 23219

Attn: Chief Accounting Officer

 

 

    	A-7

    	 

    

 

FORM OF ASSIGNMENT

	 
	I or we assign to	 
	
        PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING
        NUMBER

         

         
	 
	
        (please print or type name and address)

         

	 
	
         

        the within Security and all rights thereunder, and hereby irrevocably
        constitute and appoint

         

	
         

        Attorney to transfer the Security on the books
        of the Company with full power of substitution in the premises.

         

	Dated:  	
         

        NOTICE: The signature on this assignment must
        correspond with the name as it appears upon the face of the within Security in every particular without alteration or enlargement
        or any change whatsoever and be guaranteed by a guarantor institution participating in the Securities Transfer Agents Medallion
        Program or in such other guarantee program acceptable to the Registrar.

	 	 
	Signature Guarantee:

 

    	A-8

    	 

    

 

In connection with any transfer of this Security occurring prior
to the Resale Restriction Termination Date, the undersigned confirms that it is making, and it has not utilized any general solicitation
or general advertising in connection with, the transfer:

 

[Check One]

 

	(1)	____	to James River Coal Company or any Subsidiary thereof; or
	(2)	____	pursuant to a registration statement which has become effective under the Securities Act of 1933, as amended (the “Securities Act”); or
	(3)	____	to a Qualified Institutional Buyer in compliance with Rule 144A under the Securities Act; or
	(4)	____	pursuant to an exemption from registration provided by Rule 144 under the Securities Act (if available) or any other available exemption from the registration requirements of the Securities Act.

 

Unless one of the items (1) through (4) is checked, the Registrar
will refuse to register any of the Securities evidenced by this certificate in the name of any person other than the registered
Holder thereof; provided, however, that if item (4) is checked, the Company, the transfer agent or
the Registrar may require, prior to registering any such transfer of the Securities, in their sole discretion, such written legal
opinions, certifications and other evidence as the Registrar or the Company have reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities
Act of 1933, as amended. If item (3) is checked, the purchaser must complete the certification below.

 

If none of the foregoing items are checked, the Trustee or Registrar
shall not be obligated to register this Security in the name of any person other than the Holder hereof unless and until the conditions
to any such transfer of registration set forth herein and in the Indenture shall have been satisfied.

 

	Dated: ____________________	Signed:	 
	 	 	(Sign exactly as name appears on the other side of this Security)
	Signature Guarantee:	 	 

 

 

 

    	A-9

    	 

    

 

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED

 

The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933,
as amended, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received
such information regarding the Company as the undersigned has requested pursuant to Rule 144A and acknowledges that the transferor
is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by
Rule 144A.

 

	Dated: ____________________	 	____________________
	 	 	NOTICE:  To be executed by an executive officer

 

 

 

 

 

 

 

 

 

 

 

    	A-10

    	 

    

 

CONVERSION NOTICE

 

To convert this Security in accordance with the Indenture, check the box:  ̈

 

To convert only part of this Security, state the principal amount to be converted (must be in multiples of $1,000):

 

$__________________

 

If you want the stock certificate representing the Common Stock issuable upon conversion made out in another person’s name, fill in the form below:  

 

 

(Insert other person’s soc.
sec. or tax I.D. no.)  

 

 

 

 

  

 

  

 

 

 

(Print or type other person’s name,
address and zip code)

 

	Date:____________	Signature(s): 	 _______________________________________________

 

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

 

	Signature(s) guaranteed by:	 
		(All signatures must be guaranteed by a guarantor institution participating in the Securities Transfer Agents Medallion Program or in such other guarantee program acceptable to the Trustee.)

 

 

 

    	A-11

    	 

    

 

 

PURCHASE NOTICE

 

Certificate No. of Security: ___________

 

If you want to elect to have this Security purchased
by the Company pursuant to Section 3.02 of the Indenture, check the box:

 

If you want to elect to have only part of this
Security purchased by the Company pursuant to Section 3.02 of the Indenture, state the principal amount to be so purchased
by the Company:

 

$ __________________________________

(in an integral multiple of $1,000)

 

	Date:__________________	
        Signature(s):

         

         

	 	(Sign exactly as your name(s) appear(s) on the
        other side of this Security)
	Signature(s) guaranteed by:	
          

        

	 	(All signatures must be guaranteed by a guarantor
        institution participating in the Securities Transfer Agents Medallion Program or in such other guarantee program acceptable to
        the Trustee.)

 

 

 

 

 

 

    	A-12

    	 

    

 

 

SCHEDULE A3

SCHEDULE OF EXCHANGES OF INTERESTS IN
THE GLOBAL SECURITY

James River Coal Company

10.00% Convertible Senior Notes due 2018

The initial principal amount of this Global
Security is _______ DOLLARS ($[_________]). The following increases or decreases in this Global Security have been made:

	Date of Exchange	 	
        Amount of

        decrease in

        Principal Amount

        of this Global

        Security
	 	
        Amount of

        increase in

        Principal Amount

        of this Global

        Security
	 	
        Principal Amount

        of this Global

        Security following

        such decrease or

        increase
	 	
        Signature of

        authorized

        signatory of

        Trustee or

        Custodian

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

__________

3  This is included for Global Securities.

    	A-13

    	 

    

 

EXHIBIT B-1A

 

FORM OF PRIVATE PLACEMENT LEGEND (SECURITIES)

 

THIS SECURITY AND ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION
OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS. NEITHER THIS SECURITY, ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

 

BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN,
THE ACQUIRER AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR
ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR
SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AND (Y) SUCH
LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT ONLY:

 

	 	(A)	TO THE JAMES RIVER COAL COMPANY OR ANY SUBSIDIARY THEREOF; OR	 
	 	(B)	PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT; OR
	 	(C)	TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT; OR
	 	(D)	PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH
CLAUSE (D) ABOVE, THE COMPANY, THE TRUSTEE AND THE TRANSFER AGENT RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN
COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

    	B-1A-1

    	 

    

EXHIBIT B-1B

 

FORM OF PRIVATE
PLACEMENT LEGEND (COMMON STOCK)

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

 

BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN,
THE ACQUIRER AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR
ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR
SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AND (Y) SUCH
LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT ONLY:

 

	 	(A)	TO THE JAMES RIVER COAL COMPANY OR ANY SUBSIDIARY THEREOF; OR	 
	 	(B)	PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT; OR
	 	(C)	TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT; OR
	 	(D)	PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

 

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH
CLAUSE (D) ABOVE, THE COMPANY, THE TRUSTEE AND THE TRANSFER AGENT RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS,
CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN
COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

    	B-1B-1

    	 

    

 

 

EXHIBIT B-2

 

FORM OF LEGEND FOR GLOBAL SECURITY

 

Any Global Security authenticated and delivered
hereunder shall bear a legend (which would be in addition to any other legends required in the case of a Restricted Security) in
substantially the following form:

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR
DEPOSITARY. THIS SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS
NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER
OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. 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 SECTION 2.16 OF THE INDENTURE.

 

 

 

    	B-2-1

    	 

    

 

 

EXHIBIT C

 

Form of Notice of Transfer Pursuant to Registration
Statement

 

James River Coal Company

901 E. Byrd Street, Suite 1600

Richmond, Virginia 23219

Attention: Chief Accounting Officer

 

U.S. Bank National Association

100 Wall Street, Suite 1600

New York, NY 10005

Attention: Corporate Trust Services

Facsimile: (212) 809-4993

 

		Re:	James River Coal Company (the “Company”) 10.00%
Convertible Senior Notes due 2018 (the “ Securities”)

 

Ladies and Gentlemen:

 

Please be advised that _____________ has transferred
$___________ aggregate principal amount of the Securities and ________ shares of Common Stock, par value $0.01 per share, of the
Company issued on conversion of the Securities (“Common Stock”) pursuant to an effective Shelf Registration
Statement on Form S-3 (File No. 333-________).

 

We hereby certify that the prospectus delivery
requirements, if any, of the Securities Act of 1933 as amended, have been satisfied with respect to the transfer described above
and that the above-named beneficial owner of the Securities or Common Stock is named as a “Selling Security Holder”
in the Prospectus dated _________, or in amendments or supplements thereto (the “Prospectus”), and that the
aggregate principal amount of the Securities and the number of shares of Common Stock transferred are [a portion of] the Securities
and Common Stock listed in such Prospectus, as amended or supplemented, opposite such owner’s name.

 

	 	
        Very truly yours,

         

        _________________________

        

        (Name)

        

 

 

    	C-1

    	 

    

EXHIBIT D

 

 

 

Form of Additional Guarantor Supplemental
Indenture

 

SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”) dated as of ,  , among [GUARANTOR] (the “New Subsidiary Guarantor”), a subsidiary of JAMES RIVER
COAL COMPANY (or its successor), a Virginia corporation (the “Company”), JAMES RIVER COAL COMPANY, on behalf of itself
and the Subsidiary Guarantors (the “Existing Subsidiary Guarantors”) under the indenture referred to below, and U.S.
BANK NATIONAL ASSOCIATION, a banking association, as trustee under the indenture referred to below (the “Trustee”).

 

W I T N E S S E T H :

 

WHEREAS the Company and the Existing Subsidiary
Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”) dated as of May 22,
2013, providing for the issuance of an unlimited amount of 10.00% Convertible Senior Notes Due 2018 (the “Securities”);

 

WHEREAS Section 4.10 of the Indenture
provides that under certain circumstances the Company is required to cause the New Subsidiary Guarantor to execute and deliver
to the Trustee a supplemental indenture pursuant to which the New Subsidiary Guarantor shall unconditionally guarantee all the
Company’s obligations under the Securities pursuant to a Subsidiary Guarantee on the terms and conditions set forth herein;
and

 

WHEREAS pursuant to Section 9.01 of the
Indenture, the Trustee, the Company and the Existing Subsidiary Guarantors are authorized to execute and deliver this Supplemental
Indenture;

 

NOW THEREFORE, in consideration of the foregoing
and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Subsidiary Guarantor, the Company,
the Existing Subsidiary Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders
of the Securities as follows:

 

1. Agreement to Guarantee. The New
Subsidiary Guarantor hereby agrees, jointly and severally with all other Subsidiary Guarantors, to unconditionally guarantee the
Company’s obligations under the Securities on the terms and subject to the conditions set forth in Article XIII of the
Indenture and to be bound by all other applicable provisions of the Indenture.

 

2. Ratification of Indenture; Supplemental
Indentures Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and
all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form
a part of the Indenture for all purposes, and every holder of Securities heretofore or hereafter authenticated and delivered shall
be bound hereby.

 

    	D-1

    	 

    

 

 

3. Governing Law. THIS SUPPLEMENTAL
INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT
TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

 

4. Trustee Makes No Representation.
The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture.

 

5. Counterparts. The parties may sign
any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent
the same agreement.

 

6. Effect of Headings. The Section
headings herein are for convenience only and shall not effect the construction thereof.

 

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

 

 

	[NEW SUBSIDIARY GUARANTOR],

                                                             

	by
	 	 
	 	Name:
	 	Title:  

 

	JAMES RIVER COAL COMPANY,

                                                             

	by
	 	 
	 	Name:
	 	Title:  

 

	[EXISTING SUBSIDIARY GUARANTORS],

                                                                              

	By
	 	 
	 	Name:
	 	Title:  

 

 

 

    	D-2

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