Document:

First Supplemental

 Exhibit 4.2 
 EXECUTION VERSION 
 FIRST SUPPLEMENTAL INDENTURE

 by and between 
 AIRTRAN HOLDINGS, INC., 
 AS ISSUER 
 AND 
 U.S. BANK
NATIONAL ASSOCIATION, 
 AS TRUSTEE 
 5.25% CONVERTIBLE SENIOR NOTES DUE 2016 
 DATED AS OF OCTOBER 14, 2009 

SUPPLEMENTAL TO SENIOR INDENTURE FOR SENIOR DEBT SECURITIES 
 DATED AS OF OCTOBER 14, 2009 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE
	 ARTICLE 1 SCOPE; DEFINITIONS AND INCORPORATION BY REFERENCE
	  	1
			
	 Section 1.01.
	 	Scope of First Supplemental Indenture	  	1
	 Section 1.02.
	 	Definitions	  	1
		
	 ARTICLE 2 THE SECURITIES
	  	5
			
	 Section 2.01.
	 	Form and Dating	  	5
	 Section 2.02.
	 	Execution and Authentication	  	6
	 Section 2.03.
	 	Registrar, Paying Agent and Conversion Agent	  	7
	 Section 2.04.
	 	Paying Agent to Hold Money and Securities in Trust	  	7
	 Section 2.05.
	 	Transfer and Exchange	  	8
	 Section 2.06.
	 	Replacement Securities	  	9
	 Section 2.07.
	 	Outstanding Securities	  	9
	 Section 2.08.
	 	Treasury Securities	  	10
	 Section 2.09.
	 	Legend; Additional Transfer and Exchange Requirements	  	10
	 Section 2.10.
	 	CUSIP Numbers	  	11
		
	 ARTICLE 3 REPURCHASE OF SECURITIES AT OPTION OF HOLDERS
	  	12
			
	 Section 3.01.
	 	Purchase of Securities at Option of the Holder upon a Fundamental Change	  	12
	 Section 3.02.
	 	Effect of Fundamental Change Repurchase Notice	  	15
	 Section 3.03.
	 	Deposit of Fundamental Change Repurchase Price	  	16
	 Section 3.04.
	 	Securities Purchased in Part	  	16
	 Section 3.05.
	 	Repayment to the Company	  	17
	 Section 3.06.
	 	Compliance with Securities Laws upon Purchase of Securities	  	17
		
	 ARTICLE 4 CONVERSION
	  	17
			
	 Section 4.01.
	 	Conversion Privilege	  	17
	 Section 4.02.
	 	Conversion Rate	  	17
	 Section 4.03.
	 	Conversion Procedure	  	19
	 Section 4.04.
	 	Taxes on Conversion	  	20
	 Section 4.05.
	 	Company to Provide Stock	  	20
	 Section 4.06.
	 	Adjustment of Conversion Rate	  	21
	 Section 4.07.
	 	No Adjustment	  	26
	 Section 4.08.
	 	Shareholder Rights Agreements	  	27
	 Section 4.09.
	 	Effect of Reclassification, Consolidation, Merger or Sale on Conversion Privilege	  	27
	 Section 4.10.
	 	Other Adjustments	  	28
	 Section 4.11.
	 	Notice of Adjustment	  	28
	 Section 4.12.
	 	Trustee’s Disclaimer	  	29
	 Section 4.13.
	 	Settlement Upon Conversion	  	29
		
	 ARTICLE 5 COVENANTS
	  	29
			
	 Section 5.01.
	 	Payment of Securities	  	29
	 Section 5.02.
	 	Reports and Certain Information	  	30
	 Section 5.03.
	 	Compliance Certificates	  	30

  

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	 Section 5.04.
	 	Stay, Extension and Usury Laws	  	30
	 Section 5.05.
	 	Notice of Default	  	31
	 Section 5.06.
	 	Additional Interest Notice	  	31
		
	 ARTICLE 6 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	31
			
	 Section 6.01.
	 	Company May Consolidate, etc., Only on Certain Terms	  	31
	 Section 6.02.
	 	Successor Substituted	  	32
		
	 ARTICLE 7 DEFAULT AND REMEDIES
	  	32
			
	 Section 7.01.
	 	Events of Default	  	32
	 Section 7.02.
	 	Acceleration	  	33
	 Section 7.03.
	 	Other Remedies	  	33
	 Section 7.04.
	 	Waiver of Defaults and Events of Default	  	34
	 Section 7.05.
	 	Limitations on Suits	  	35
	 Section 7.06.
	 	Rights of Holders to Receive Payment and to Convert	  	35
	 Section 7.07.
	 	Collection Suit by Trustee.	  	35
	 Section 7.08.
	 	Priorities	  	35
	 Section 7.09.
	 	Expenses and Compensation of the Trustee.	  	36
		
	 ARTICLE 8 AMENDMENTS, SUPPLEMENTS AND WAIVERS
	  	36
			
	 Section 8.01.
	 	Without Consent of Holders	  	36
	 Section 8.02.
	 	With Consent of Holders	  	37
	 Section 8.03.
	 	Revocation and Effect of Consents	  	38
	 Section 8.04.
	 	Notation on or Exchange of Securities	  	38
		
	 ARTICLE 9 SATISFACTION AND DISCHARGE
	  	38
			
	 Section 9.01.
	 	Satisfaction and Discharge of the Indenture	  	38
	 Section 9.02.
	 	Repayment to the Company	  	39
		
	 ARTICLE 10 MISCELLANEOUS
	  	39
			
	 Section 10.01.
	 	Governing Law	  	39
	 Section 10.02.
	 	No Sinking Fund and No Defeasance	  	39
	 Section 10.03.
	 	No Adverse Interpretation of Other Agreements	  	40
	 Section 10.04.
	 	Multiple Counterparts	  	40
	 Section 10.05.
	 	Calculations in Respect of the Securities	  	40

  

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	Exhibit A	  	- Form of Security:
		  	- Assignment Form
		  	- Form of Conversion Notice
		  	- Form of Fundamental Change Repurchase Notice
		
	Exhibit B	  	Table showing the Increase in Conversion Rate in connection with a Make-Whole Fundamental Change

  

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 THIS FIRST SUPPLEMENTAL INDENTURE, dated as of October 14, 2009 (the “First
Supplemental Indenture”), is between AIRTRAN HOLDINGS, INC., a Nevada corporation (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association duly organized and existing under the laws of the United
States, as trustee (in such capacity and not in its individual capacity, the “Trustee”). 
 WHEREAS,
this First Supplemental Indenture is supplemental to the Base Indenture (as defined herein); and 
 WHEREAS, for its lawful
corporate purposes, the Company has duly authorized the issue of the Securities (as defined herein), and in order to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly
authorized the execution and delivery of this First Supplemental Indenture; and 
 WHEREAS, pursuant to Section 3.1 of the
Base Indenture, the Company may establish one or more series of Securities (as such term is defined in the Base Indenture) from time to time as authorized by a supplemental indenture, of which the Securities shall be one such series; and 

WHEREAS, the Form of Security, the certificate of authentication to be borne by each Security, the Assignment Form, the Form of
Conversion Notice and the Form of Fundamental Change Repurchase Notice to be borne by the Securities are to be substantially in the forms hereinafter provided for; and 
 WHEREAS, all acts and things necessary to make the Securities, when executed by the Company and authenticated and delivered hereunder, the valid, binding and legal obligations of the Company, and to
constitute these presents a valid agreement according to its terms, have been done and performed, and the execution of this First Supplemental Indenture and the issue hereunder of the Securities have in all respects been duly authorized. 

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 
 In consideration of the premises and the purchase of the Securities by the Holders thereof, the parties hereto agree as follows for the
equal and ratable benefit of the Holders of the Securities on the date hereof: 
 ARTICLE 1 
 SCOPE; DEFINITIONS AND INCORPORATION BY REFERENCE

 Section 1.01. Scope of First Supplemental Indenture. The changes, modifications and supplements to the Base
Indenture effected by this First Supplemental Indenture shall be applicable only with respect to, and shall only govern the terms of, the Securities, which shall initially be limited to $115,000,000 aggregate principal amount Outstanding and which
may be issued from time to time, and shall not apply to any other Securities (as defined in the Base Indenture) that may be issued under the Base Indenture unless a supplemental indenture with respect to such other Securities specifically
incorporates such changes, modifications and supplements. The provisions of this First Supplemental Indenture shall supersede any corresponding or inconsistent provisions in the Base Indenture. 
 Section 1.02. Definitions. The terms defined in this Section 1.02 (except as herein otherwise expressly provided or unless
the context otherwise requires) for all purposes of this First Supplemental Indenture and for purposes of the Base Indenture as it relates to the Securities shall have the respective meanings specified in this Section 1.02. Except as otherwise
provided in this First Supplemental Indenture, all words, terms and phrases defined in the Base Indenture (but not otherwise defined herein) shall have the

 
same meaning herein as in the Base Indenture. All other terms used in this First Supplemental Indenture that are defined in the Trust Indenture Act or that are by reference therein defined in the
Securities Act (except as herein otherwise expressly provided or unless the context otherwise requires) shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of
this First Supplemental Indenture. The words “herein,” “hereof,” “hereunder,” and words of similar import refer to this First Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision. 
 “Additional Interest” has the meaning specified in Section 7.03. 
 “Additional Securities” has the meaning specified in Section 2.02(d). 
 “Additional Shares” has the meaning specified in Section 4.02(b). 
 “Adjustment Date” has the meaning specified in Section 4.02(c). 
 “Agent” means any Registrar, Paying Agent or Conversion Agent. 
 “Applicable Procedures” means, with respect to any transfer or exchange of beneficial ownership interests in a Global
Security, the rules and procedures of the Depositary, in each case to the extent applicable to such transfer or exchange. 
 “Bankruptcy Law” has the meaning specified in Section 7.01. 
 “Base Indenture”
means the indenture dated as of October 14, 2009 by and between the Company and the Trustee. 
 “beneficial
owner” has the meaning specified in Section 3.01(a). 
 “Cash” means such coin or currency of the
United States as at any time of payment is legal tender for the payment of public and private debts. 
 “Certificated
Security” means a Security that is in substantially the form attached hereto as Exhibit A, except that such Security shall not bear any Global Security legends or notations. 
 “Close of Business” means 5:00 p.m. New York City time. 
 “Closing Price” means, on any Trading Day, the reported last sale price per share of the Common Stock or other security
(or, if no last sale price is reported, the average of the bid and ask prices per share or per security, as applicable, or, if more than one in either case, the average of the average bid and the average ask prices per share or per security, as
applicable) on such date reported by the NYSE or, if the Common Stock or such other security is not listed for trading on the NYSE, as reported by the principal national or regional securities exchange on which the Common Stock or such other
security is listed for trading or otherwise as provided in this First Supplemental Indenture. 
 “Common Stock”
means, subject to Section 4.09, shares of common stock of the Company, par value $0.001 per share, at the date of this First Supplemental Indenture or shares of any class or classes resulting from any reclassification or reclassifications
thereof and that have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and that are not subject to redemption by the Company;
provided that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable shall be substantially in the 
  

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proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such
reclassifications. 
 “Company” means the party named as such in the first paragraph of this First Supplemental
Indenture until a successor replaces it pursuant to the applicable provisions of this First Supplemental Indenture, and thereafter “Company” shall mean such successor Company. 
 “Conversion Agent” has the meaning specified in Section 2.03. 
 “Conversion Date” has the meaning specified in Section 4.03(a). 
 “Conversion Notice” has the meaning specified in Section 4.03(a). 
 “Conversion Rate” has the meaning specified in Section 4.02(a). 
 “Custodian” has the meaning specified in Section 7.01. 
 “Default” means, when used with respect to the Securities, any event which is or, after notice or passage of time or both,
would be an Event of Default. 
 “Depositary” has the meaning specified in Section 2.01(b). 
 “Distributed Property” has the meaning specified in Section 4.06(c). 
 “Event of Default” has the meaning specified in Section 7.01. 
 “Ex-Dividend Date” means the first date on which the Common Stock trades, regular way, on the relevant exchange, or in the
relevant market from which the Closing Price was obtained, without the right to receive such dividend or distribution. 
 “First Supplemental Indenture” means this First Supplemental Indenture as amended or supplemented from time to time. 
 “Fundamental Change” has the meaning specified in Section 3.01(a). 
 “Fundamental Change Company Notice” has the meaning specified in Section 3.01(c). 
 “Fundamental Change Repurchase Date” has the meaning specified in Section 3.01(a). 
 “Fundamental Change Repurchase Notice” has the meaning specified in Section 3.01(d). 
 “Fundamental Change Repurchase Price” has the meaning specified in Section 3.01(a). 
  

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 “Global Security” means a permanent Global Security that is in
substantially the form attached hereto as Exhibit A and which is deposited with the Depositary or its custodian and registered in the name of the Depositary or its nominee. 
 “Indenture” means the Base Indenture, as amended or supplemented by this First Supplemental Indenture, and, if further
amended or supplemented as herein provided, as so amended or supplemented. 
 “Initial Conversion Rate” has the
meaning specified in Section 4.02(a). 
 “Initial Securities” means the Securities issued on the date
hereof in the aggregate principal amount of $115,000,000 and any Securities issued in replacement thereof. 
 “Interest
Payment Record Date” has the meaning set forth in the Securities. 
 “Issue Date” means
October 14, 2009. 
 “Make-Whole Fundamental Change” has the meaning specified in Section 3.01(a).

 “Market Disruption Event” means (a) a failure by the primary exchange or quotation system on which the
Common Stock trades or is quoted to open for trading during its regular trading session or (b) the occurrence or existence prior to 1:00 p.m., New York City time, on any Trading Day for the Common Stock of an aggregate one half hour
period, of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or future contracts relating to the Common
Stock. 
 “Maturity Date” means November 1, 2016. 
 “Notice of Default” has the meaning specified in Section 7.01. 
 “NYSE” means the New York Stock Exchange. 
 “Officers’ Certificate” means a certificate signed by at least two Officers of the Company; provided, however,
that for purposes of Section 5.03 hereof, “Officers’ Certificate” means a certificate signed by the principal executive officer, principal financial officer or principal accounting officer of the Company and at least one other
Officer of the Company. 
 “Open of Business” means 9:00 a.m. New York City time. 
 “Paying Agent” has the meaning specified in Section 2.03. 
 “Principal Amount” of a Security means the Principal Amount as set forth on the face of the Security. 
 “Prospectus” means that final prospectus supplement dated October 8, 2009 relating to the Securities. 
  

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 “Record Date” means (i) with respect to any payment of interest on the
Securities, the Interest Payment Record Date and (ii) with respect to the events specified in Section 4.06 hereof, the meaning specified in Section 4.06. 
 “Reference Property” has the meaning specified in Section 4.09. 
 “Register” has the meaning specified in Section 2.03. 
 “Registrar” has the
meaning specified in Section 2.03. 
 “Reporting Obligations” has the meaning specified in
Section 7.03. 
 “Reorganization Event” has the meaning specified in Section 4.09. 
 “Scheduled Trading Day” means a day that is scheduled to be a Trading Day. 
 “Security” or “Securities” means the Company’s 5.25% Convertible Senior Notes due 2016, as amended or
supplemented from time to time pursuant to the terms of this First Supplemental Indenture, that are issued under this First Supplemental Indenture. 
 “Securities Custodian” means the Trustee, as custodian with respect to the Global Securities, or any successor thereto. 
 “Spin-Off” has the meaning specified in Section 4.06(c). 
 “Stock Price” has the meaning specified in Section 4.02(c). 
 “Trading Day” means a day during which (i) trading in the Common Stock generally occurs and (ii) there is no
Market Disruption Event. 
 “Trigger Event” has the meaning specified in Section 4.06(c). 
 “Trustee” means U.S. Bank National Association, not in its individual capacity, but solely in its capacity as trustee
hereunder, until a successor replaces it pursuant to the applicable provisions of the Indenture and, thereafter, shall mean such successor Trustee. 
 “Underwriters” means Morgan Stanley & Co. Incorporated and Raymond James & Associates, Inc. 
 “Underwriting Agreement” means the underwriting agreement dated as of October 7, 2009, among the Company and the
Underwriters relating to the initial purchase and sale of the Securities. 
 ARTICLE 2 
 THE SECURITIES 
 Section 2.01. Form and Dating. (a) The Securities and the corresponding Trustee’s certificate of authentication shall be substantially in the respective forms set forth in
Exhibit A, which Exhibit is incorporated in and made part of this First Supplemental Indenture. The Securities may have notations, legends or endorsements required by law, exchange rule, Applicable Procedures or usage. The Company shall
provide any such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated the date of its authentication. 
  

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 The terms and provisions contained in the Securities shall constitute, and are hereby
expressly made, a part of the Indenture and the Company and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby; provided , however ,
to the extent permitted by applicable law, if any provision of any Security conflicts with the express provisions of this First Supplemental Indenture, the provisions of this First Supplemental Indenture shall govern and be controlling. 

(b) Global Securities. All of the Securities shall be issued initially in the form of one or more Global Securities, which shall
be deposited on behalf of the purchasers of the Securities represented thereby with the Securities Custodian, as custodian for the depositary, The Depository Trust Company (such depositary, or any successor thereto, being hereinafter referred to as
the “Depositary”), and registered in the name of its nominee, Cede & Co., or as otherwise instructed by the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided.
The aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the Securities Custodian and the Depositary as hereinafter provided, subject in each case to compliance
with the Applicable Procedures and the provisions of this First Supplemental Indenture. 
 (c) Global Securities In
General. Each Global Security shall represent such of the outstanding Securities as shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Securities from time to time endorsed thereon and
that the aggregate amount of outstanding Securities represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, purchases or conversions of such Securities, in each case in accordance with this First
Supplemental Indenture. Any adjustment of the aggregate principal amount of a Global Security to reflect the amount of any increase or decrease in the amount of outstanding Securities represented thereby shall be made by the Trustee in accordance
with instructions given by the Holder thereof as required by Section 2.09 hereof, or otherwise in accordance with the Indenture, and shall be made on the records of the Trustee and the Depositary. 
 The Company shall issue and the Trustee shall, upon receipt of an Order from the Company, authenticate and deliver in accordance with
Section 2.02 hereof, initially one or more Global Securities that (i) shall be registered in the name of Cede & Co. or as otherwise instructed by the Depositary, (ii) shall be delivered by the Trustee to the Depositary or to
the Securities Custodian pursuant to the Depositary’s instructions and (iii) shall bear legends required for Global Securities as set forth in Exhibit A hereto. 
 (d) Certificated Securities. Certificated Securities shall be issued only under the circumstances provided in Section 2.09(a)(i)
hereof. 
 Section 2.02. Execution and Authentication. (a) A duly authorized Officer of the Company shall sign
the Securities for the Company by manual or facsimile signature. 
 (b) If an Officer of the Company whose signature is on a
Security no longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless. 
 (c) A Security shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Security. The signature shall be conclusive evidence that the Security has been authenticated under the
Indenture. 
 (d) The Trustee shall initially authenticate and make available for delivery Securities for original issue in the
aggregate principal amount of $115,000,000 upon receipt of an Order of the Company in accordance with Section 3.3 of the Base Indenture. The Company may, without the consent of the Holders, re-open the Securities and issue additional Securities
(the “Additional Securities”) with the same terms

  

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and with the same CUSIP number as the Securities in an unlimited aggregate principal amount; provided, however that no such Additional Securities may be issued unless fungible with the
Securities offered hereby for U.S. federal income tax purposes. The Trustee shall authenticate Additional Securities thereafter in unlimited aggregate principal amount (so long as permitted by the terms of the Indenture) for original issue upon an
Order of the Company in aggregate principal amount as specified in such order (except as provided in Section 2.06 hereof). Each such Order of the Company shall specify the amount of Securities to be authenticated and the date on which the
Securities are to be authenticated. Such Additional Securities shall have identical terms to the Initial Securities except for issuance dates and prices and with respect to interest accruing prior to their date of issuance, and will constitute the
same series as the Initial Securities for all purposes hereunder, including, without limitation, waivers, amendments and offers to purchase. 
 (e) 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 First Supplemental Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent shall have the same rights as an Agent to
deal with the Company or an Affiliate of the Company. 
 The Securities shall be issuable only in registered form without
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 an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or agency in the
United States where Securities may be presented for purchase or payment (“Paying Agent”), an office or agency where Securities may be presented for conversion (“Conversion Agent”),
and an office or agency where notices and demands to or upon the Company in respect of the Securities and the Indenture may be served. The Registrar shall keep a register of the Securities (“Register”) and of their transfer
and exchange. 
 The Company may have one or more co-registrars, one or more additional paying agents, and one or more
additional conversion agents. The term “Registrar” includes any co-registrar, including any named pursuant to Section 10.02 of the Base Indenture. The term “Paying Agent” includes any additional paying agent, including any
named pursuant to Section 10.02 of the Base Indenture. The term “Conversion Agent” includes any additional conversion agent, including any named pursuant to Section 10.02 of the Base Indenture. 
 The Company shall enter into an appropriate agency agreement with any Agent not a party to this First Supplemental Indenture. The agreement
shall implement the provisions of the 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 First Supplemental Indenture. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent or agent for service of notices and demands in any place required by the Indenture, or fails to give the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company may act as Paying
Agent. 
 The Company hereby initially appoints the Trustee as Registrar, Paying Agent and Conversion Agent in connection with
the Securities. 
 Section 2.04. Paying Agent to Hold Money and Securities in Trust. On or prior to 11:00 a.m.,
New York City time, on each due date of payments of Cash or shares of Common Stock in respect of the Securities, as applicable and as provided herein, the Company shall deposit with the Paying Agent Cash (in immediately available funds if
deposited on the due date) or with the Conversion Agent such number of shares of Common Stock, Cash or other consideration sufficient to make such payments or deliveries when so becoming due. The Company shall require each Paying Agent or Conversion
Agent, as applicable (other than

  

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the Trustee), to agree in writing that such Agent shall hold in trust for the benefit of Securityholders or the Trustee all Cash, Common Stock or other consideration, as applicable, held by such
Agent for the making of payments or deliveries in respect of the Securities and shall notify the Trustee in writing of any default by the Company in making any such payment or delivery. If the Company or an Affiliate of the Company acts as Paying
Agent or Conversion Agent, as applicable, it shall segregate the Cash, Common Stock and other consideration, as applicable, held by it as Paying Agent or Conversion Agent, as applicable, and hold it as a separate trust fund. 
 The Company at any time may require a Paying Agent or Conversion Agent, as applicable, to pay all Cash, Common Stock or other consideration,
as applicable, held by it to the Trustee, and the Trustee may at any time during the continuance of any Default, upon written request to the Paying Agent or the Conversion Agent, as applicable, require such Paying Agent or Conversion Agent, as
applicable, to pay forthwith to the Trustee all Cash, Common Stock or other consideration, as applicable, so held in trust by such Paying Agent or Conversion Agent. Upon doing so, the Paying Agent or the Conversion Agent, as applicable, shall have
no further liability for such Cash, Common Stock or other consideration, as applicable. 
 Section 2.05. Transfer and
Exchange. (a) Subject to compliance with any applicable additional requirements contained in Section 2.09 hereof, when a Security is presented to a Registrar with a request to register a transfer thereof or to exchange such Security
for an equal principal amount of Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested; provided , however , that every Security presented or surrendered for
registration of transfer or exchange shall, if such Security is a Certificated Security, be duly endorsed or accompanied by an assignment form, in the form included in Exhibit A attached hereto and, if applicable, a transfer certificate, in the
form included in Exhibit A attached hereto, and in form reasonably satisfactory to the Registrar duly executed by the Holder thereof or its attorney duly authorized in writing. To permit registration of transfers and exchanges, upon surrender
of any Security for registration of transfer or exchange at an office or agency maintained pursuant to Section 2.03 hereof, the Company shall execute and the Trustee shall, upon receipt of an Order of the Company, authenticate Securities of a
like aggregate principal amount at the Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or the Registrar may require payment of a sum sufficient to cover any tax, assessment or other governmental
charge that may be imposed in relation thereto, other than exchanges pursuant to Section 3.4 of the Base Indenture or Section 8.04, Article 3 or Article 4 of this First Supplemental Indenture, in each case, not involving any transfer.

 Neither the Company, any Registrar nor the Trustee shall be required to exchange or register a transfer of any Securities or
portions thereof in respect of which a Fundamental Change Repurchase Notice has been delivered and not validly withdrawn by the Holder thereof (except, in the case of the purchase of a Security in part, the portion thereof not to be purchased).

 All Securities issued upon any transfer or exchange of Securities shall be valid obligations of the Company, evidencing the
same debt and entitled to the same benefits under this Indenture as the Securities surrendered upon such transfer or exchange. 
 (b) Any Registrar appointed pursuant to Section 2.03 hereof or Section 10.2 of the Base Indenture shall provide to the Trustee such information as the Trustee may reasonably request in connection with the delivery by such
Registrar of Securities upon transfer or exchange of Securities. 
 The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed under the Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Agent Members or other
beneficial owners of interests in any Global Security) other than to require delivery of such opinions of counsel, certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by

  

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the terms of, the Indenture (including if so requested by the Company exercising a right to require the delivery of such items), and to examine the same to determine substantial compliance as to
form with the express requirements hereof. 
 Any Holder of a Global Security shall, by acceptance of such Global Security,
agree that transfers of beneficial interests in such Global Security may be effected only through a book-entry system maintained by the Depositary (or its agent), and that ownership of a beneficial interest in a Global Security shall be required to
be reflected in a book-entry system. 
 Section 2.06. Replacement Securities. If (a) any mutilated Security is
surrendered to the Company, a Registrar or the Trustee, or (b) the Company, the Registrar and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and, in either case, there is delivered to the
Company, the Registrar and the Trustee such security or indemnity as shall be reasonably required by them to save each of them harmless, then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has been
acquired by a bona fide or protected purchaser, the Company shall issue, and the Trustee shall, upon receipt of an Order of the Company (which the Company agrees to deliver promptly), authenticate and deliver, in exchange for any such mutilated
Security or in lieu of any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, or purchased by the Company pursuant to Article 3 hereof, the Company in its discretion
may, instead of issuing a new Security, pay or purchase such Security, as the case may be, in accordance herewith. 
 Upon the
issuance of any new Securities under this Section 2.06, the Company may require the payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other reasonable expenses
(including the reasonable fees and expenses of the Trustee or the Registrar) in connection therewith. 
 Every new Security
issued pursuant to this Section 2.06 in lieu of any mutilated, destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all benefits of the Indenture equally and proportionately with any and all other Securities duly issued and outstanding hereunder. 
 The provisions of this Section 2.06 are (to the extent lawful) exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 Section 2.07.
Outstanding Securities. Securities outstanding at any time are all Securities authenticated by the Trustee, except for those canceled by it, those paid or repurchased pursuant to Section 2.06 hereof, those delivered to it for cancellation
and those described in this Section 2.07 as not outstanding. 
 If a Security is replaced pursuant to Section 2.06
hereof (other than a mutilated Security surrendered for replacement), it ceases to be outstanding unless the Trustee receives, subsequent to the new Security’s authentication, proof satisfactory to the Company that the replaced Security is held
by a bona fide or protected purchaser. A mutilated Security ceases to be outstanding upon surrender and replacement thereof pursuant to Section 2.06 hereof. 
 If the Paying Agent holds, in accordance with the terms of the Indenture, at 11:00 a.m., New York City time, on the Maturity Date or on a Fundamental Change Repurchase Date, as the case may be,
Cash sufficient to pay all Initial Securities and all Additional Securities then payable, then on and after such Maturity Date or

  

 9 

 
Fundamental Change Repurchase Date, as the case may be, such Securities shall cease to be outstanding and interest on such Securities shall cease to accrue. 
 If a Security is converted in accordance with Article 4 hereof, then on the Conversion Date, such Security shall cease to be outstanding and
interest on such Security shall cease to accrue, unless there shall be a default in the delivery of the consideration payable hereunder upon such conversion. 
 Subject to the restrictions contained in Section 2.08 hereof, a Security does not cease to be outstanding solely because the Company or an Affiliate of the Company holds the Security. 
 Section 2.08. Treasury Securities. In determining whether the Holders of the required principal amount of Securities have given
or concurred in any notice, request, demand, authorization, direction, waiver or consent, Securities owned by the Company or any other obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be outstanding for such purposes, except that, for purposes of determining whether the Trustee shall be protected in relying on any such notice, request, demand, authorization, direction, waiver or consent, only Securities which a
Trust Officer actually knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act
with respect to the Securities and that the pledgee is not, and is not acting on the behalf of, the Company or any other obligor on the Securities or any Affiliate of the Company or of such other obligor. If requested by the Trustee, the Company
agrees to notify the Trustee in writing of the existence of any such Treasury Securities or Securities owned by the Company, any other obligor on the Securities, or, to the knowledge of the Company, any Affiliate of the Company. 
 Section 2.09. Legend; Additional Transfer and Exchange Requirements. (a) Transfer and Exchange of Global Securities.

 (i) Certificated Securities shall be issued in exchange for interests in the Global Securities only (x) if the
Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the Global Securities or if it at any time ceases to be a “clearing agency” registered under the Exchange Act, if so required by applicable law or
regulation, and a successor Depositary is not appointed by the Company within 90 days of such notice, (y) the Company delivers to the Trustee and the Registrar an Officers’ Certificate stating that such Global Security shall be so
exchangeable or (z) if an Event of Default has occurred and is continuing, in each case in accordance with the Applicable Procedures. In any such case, the Company shall execute, and the Trustee shall, upon receipt of an Order of the Company
(which the Company agrees to deliver promptly), authenticate and deliver Certificated Securities in an aggregate principal amount equal to the principal amount of such Global Securities in exchange therefor. Certificated Securities issued in
exchange for beneficial interests in Global Securities shall be registered in such names and shall be in such authorized denominations as the Depositary, pursuant to instructions from its Agent Members or otherwise in accordance with the Applicable
Procedures, shall instruct the Trustee. The Trustee shall deliver or cause to be delivered such Certificated Securities to the Persons in whose name such Securities are so registered. Such exchange shall be effected in accordance with the Applicable
Procedures. In the event that the Certificated Securities are not issued to each such beneficial owner promptly after the Registrar has received a request from the Depositary to issue such Certificated Securities, the Company expressly acknowledges,
with respect to the right of any Holder to pursue a remedy pursuant to Section 7.05 or 7.06 hereof, the right of any beneficial holder of Securities to pursue such remedy pursuant to the terms of such sections with respect to the portion of the
Global Security that represents such beneficial owner’s Securities as if such Certificated Securities had been issued. 
 (ii) Notwithstanding any other provisions of the Indenture other than the provisions set forth in Section 2.09(a)(i) hereof, 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

  

 10 

 
Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. 
 (b) Transfer and Exchange of Certificated Securities. In the event that Certificated Securities are issued in exchange for beneficial
interests in Global Securities in accordance with Section 2.09(a)(i) hereof, and, on or after such event, Certificated Securities are presented by a Holder to the Registrar with a request: 
 (x) to register the transfer of the Certificated Securities to a person who shall take delivery thereof in the form of Certificated
Securities only; or 
 (y) to exchange such Certificated Securities for an equal principal amount of Certificated Securities of
other authorized denominations, 
 such Registrar shall register the transfer or make the exchange as requested; provided, however, that
the Certificated Securities presented or surrendered for register of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in accordance with the proviso to the first sentence of Section 2.05(a) hereof.

 (c) Transfers of Certificated Securities for Beneficial Interests in Global Securities. In the event that Certificated
Securities are issued in exchange for beneficial interests in Global Securities and, thereafter, the events or conditions specified in Section 2.09(a)(i) hereof which required such exchange shall cease to exist, the Company shall mail notice to
the Trustee and to the Holders (i) stating that Holders may exchange Certificated Securities for interests in Global Securities by complying with the procedures set forth in the Indenture and (ii) briefly describing such procedures and the
events or circumstances requiring that such notice be given. Thereafter, if Certificated Securities are presented by a Holder to a Registrar with a request: 
 (x) to register the transfer of such Certificated Securities to a Person who will take delivery thereof in the form of a beneficial interest in a Global Security; or 
 (y) to exchange such Certificated Securities for an equal principal amount of beneficial interests in a Global Security, which beneficial
interests will be owned by the Holder transferring such Certificated Securities, 
 the Registrar shall register the transfer or make the
exchange as requested by canceling such Certificated Security and causing the aggregate principal amount of the applicable Global Security to be increased accordingly and, if no such Global Security is then outstanding, the Company shall issue and
the Trustee shall, upon receipt of an Order of the Company (which the Company agrees to deliver promptly), authenticate and deliver a new Global Security; provided , however , that the Certificated Securities presented or surrendered
for registration of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in accordance with the proviso to the first sentence of Section 2.05(a) hereof. 
 (d) Transfers to the Company. Nothing contained in the Indenture or in the Securities shall prohibit the sale or other transfer of
any Securities (including beneficial interests in Global Securities) to the Company, or any of its Subsidiaries or any of its Affiliates. 
 Section 2.10. CUSIP Numbers. The Company in issuing the Securities may use one or more “CUSIP,” “ISIN” or other similar numbers (if then generally in use), and, if so, the
Trustee shall use “CUSIP,” “ISIN” or other similar numbers in notices of purchase as a convenience to Holders; provided , however , that any such notice may state that no representation is made as to the correctness
of such numbers either as printed on the Securities or as contained in any notice of a purchase and that reliance may be placed only on the other identification numbers printed on the Securities, and any such purchase shall not be affected by any
defect in or

  

 11 

 
omission of such numbers. The Company shall promptly notify the Trustee of any change in the “CUSIP,” “ISIN” or other similar numbers. 
 ARTICLE 3 
 REPURCHASE OF SECURITIES AT OPTION OF HOLDERS 
 Section 3.01. Purchase of Securities at Option of the Holder upon a Fundamental Change. Article 12 of the Base Indenture shall not apply to the Securities. (a) In the event a Fundamental
Change shall occur at any time when any Securities remain outstanding, each Holder shall have the right, at such Holder’s option, to require the Company to purchase all of such Holders’ Securities or any portion of the principal amount
thereof that is equal to $1,000 or an integral multiple thereof on a date specified by the Company (the “Fundamental Change Repurchase Date”) that is not less than 20 nor more than 30 Business Days after the date the
Company mails the Fundamental Change Company Notice pursuant to Section 3.01(b) below, at a purchase price in Cash equal to 100% of the principal amount of the Securities tendered for purchase, plus accrued and unpaid interest (including any
Additional Interest) (the “Fundamental Change Repurchase Price”) to, but not including, the Fundamental Change Repurchase Date, subject to satisfaction by or on behalf of any Holder of the requirements set forth in
Section 3.01(d) below. If the Fundamental Change Repurchase Date is after a Record Date and on or prior to the related Interest Payment Date, the interest payable on such Interest Payment Date will be paid to the Holder of record of the
Securities on the relevant Record Date (which may or may not be the same Person to whom the Company shall pay the Fundamental Change Repurchase Price) and the Fundamental Change Repurchase Price shall be equal to 100% of the principal amount of the
Securities tendered for purchase. No Securities may be purchased at the option of the Holders upon a Fundamental Change if there has occurred and is continuing an Event of Default other than an Event of Default that is cured by the payment of the
Fundamental Change Repurchase Price of the Securities. 
 A “Fundamental Change” shall be deemed to have
occurred upon the occurrence of any of the following: 
 (i) a “person” or “group” within the
meaning of Section 13(d)(3) of the Exchange Act becomes the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of shares of the Common Stock representing more than 50% of the voting power of the
Common Stock entitled to vote generally in the election of directors and (A) files a Schedule 13D or Schedule TO or any other schedule, form or report under the Exchange Act disclosing such beneficial ownership or (B) the Company otherwise
becomes aware of any such person or group; or 
 (ii) the Common Stock into which the Securities are then
convertible ceases to be listed for trading on the NYSE, the NASDAQ Global Select Market or NASDAQ Global Market or another national securities exchange and is not then quoted on an established automated over-the-counter trading market in the United
States; or 
 (iii) a consolidation, merger or binding share exchange, or any conveyance, transfer, sale, lease
or other disposition in a single transaction or a series of transactions of all or substantially all of the Company’s properties and assets other than: 
 (A) any transaction: 
 (1) that does not result in any reclassification, conversion, exchange or cancellation of outstanding shares of the Company’s Capital Stock; and 
 (2) pursuant to which holders of the Company’s Capital Stock immediately prior to the transaction have the entitlement
to exercise, directly or

  

 12 

 
indirectly, 50% or more of the total voting power of all shares of Capital Stock entitled to vote generally in elections of directors of the continuing or surviving or successor Person
immediately after giving effect to such transaction in substantially the same proportion as their entitlement to exercise, directly or indirectly, voting power of shares of the Company’s Capital Stock entitled to vote generally in elections of
the Company’s directors immediately prior to such transaction; or 
 (B) any transaction that is effected
solely for the purpose of changing the Company’s jurisdiction of incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock, if at all, solely into shares of common stock of the surviving
entity or a direct or indirect parent of the surviving corporation; or 
 (C) any transaction with any of the
Company’s wholly-owned subsidiaries, so long as such transaction is not part of a plan or a series of transactions designed with the intention of, or having the effect of merging or consolidating with, or conveying, transferring, selling,
leasing or disposing of all or substantially all of the Company’s properties and assets to any other Person or Persons. 
 (iv) the Company’s shareholders approve any plan or proposal for the Company’s liquidation or dissolution. 
 However, a fundamental change will be deemed not to have occurred if more than 90% of the consideration in the transaction or transactions (other than Cash payments for fractional shares and Cash payments
made in respect of dissenters’ appraisal rights) which otherwise would constitute a Fundamental Change under clause (iii) above consists of shares of common stock, depositary receipts or other certificates representing common equity
interests traded or to be traded immediately following such transaction on a U.S. national securities exchange and, as a result of the transaction or transactions, the Securities become convertible into such common stock, depositary receipts or
other certificates representing common equity interests (and any rights attached thereto) and other applicable consideration. 
 A “Make-Whole Fundamental Change” shall be deemed to have occurred upon the occurrence of a Fundamental Change described in clause (i) or clause (iii) of the definition of Fundamental Change above (including the
preceding paragraph). 
 For purposes of this Section 3.01, “person” includes any syndicate or group that
would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. 
 (b) Notice
of Make-Whole Fundamental Change. The Company will give notice of an anticipated Make-Whole Fundamental Change to each Holder (and to beneficial owners as required by applicable law) (to the extent the date of such Make-Whole Fundamental Change
may reasonably be anticipated) no later than the 15th
Scheduled Trading Day prior to the date on which a Make-Whole Fundamental Change is anticipated to become effective. 
 (c)
Notice of Fundamental Change. Within 15 Business Days after the effective date of each Fundamental Change, the Company shall notify the Trustee of the Fundamental Change Repurchase Date and shall mail or cause to be mailed a written
notice of the Fundamental Change (each such notice, a “Fundamental Change Company Notice”) to each Holder (and to beneficial owners as required by applicable law) in accordance with Section 1.8 of the Base Indenture. The notice
shall include the form of a Fundamental Change Repurchase Notice to be completed by the Holder and shall state, as applicable: 
  

 13 

 (i) the events causing such Fundamental Change, the Adjustment Date of the
Fundamental Change (in the case of a Make-Whole Fundamental Change) and the date of effectiveness of such Fundamental Change; 
 (ii) that the Holder has a right to require the Company to purchase the Holder’s Securities; 
 (iii) the date by which the Fundamental Change Repurchase Notice must be delivered to the Paying Agent in order for a Holder to exercise the Fundamental Change purchase right; 
 (iv) the Fundamental Change Repurchase Date; 
 (v) the Fundamental Change Repurchase Price; 
 (vi) the procedures that the Holder must follow to exercise its Fundamental Change purchase right under this
Section 3.01; 
 (vii) the names and addresses of the Paying Agent and the Conversion Agent; 
 (viii) that the Securities must be surrendered to the Paying Agent to collect payment of the Fundamental Change Repurchase
Price; 
 (ix) that the Fundamental Change Repurchase Price for any Security as to which a Fundamental Change
Repurchase Notice has been duly given and not withdrawn shall be paid promptly following the later of the Fundamental Change Repurchase Date and the time of surrender of such Security; 
 (x) the Conversion Rate (after giving effect to any change in the Conversion Rate that resulted from the Fundamental Change);

 (xi) that the Securities with respect to which a Fundamental Change Repurchase Notice has been given may be
converted pursuant to Article 4 of this First Supplemental Indenture only if either (i) the Fundamental Change Repurchase Notice has been withdrawn in accordance with the terms of this First Supplemental Indenture or (ii) there shall be a
default in the payment of the Fundamental Change Repurchase Price; 
 (xii) the procedures for withdrawing a
Fundamental Change Repurchase Notice; 
 (xiii) that, unless the Company defaults in making payment of such
Fundamental Change Repurchase Price, interest on Securities surrendered for purchase by the Company shall cease to accrue on and after the Fundamental Change Repurchase Date; and 
 (xiv) subject to Section 2.10 hereof, the CUSIP number(s) of the Securities. 
 If any of the Securities are in the form of a Global Security, then the Company shall modify such notice to the extent necessary to accord
with the Applicable Procedures for repurchases. 
 At the Company’s request, the Trustee shall give the Fundamental Change
Company Notice on behalf of the Company and at the Company’s expense; provided , however , that the Company makes such request at least three Business Days (unless a shorter period shall be consented to by the Trustee) prior to
the date by

  

 14 

 
which such Fundamental Change Company Notice must be given to the Holders in accordance with this Section 3.01(c); provided further, however, that the text of such notice shall
be prepared by the Company. 
 (d) Fundamental Change Repurchase Notice. A Holder may exercise its right specified in
Section 3.01(a) above upon delivery of a written notice (which shall be in substantially the form included in Exhibit A hereto and which may be delivered by letter, overnight courier, hand delivery, facsimile transmission or in any other
written form and, in the case of Global Securities, may be delivered electronically or by other means in accordance with the Applicable Procedures) of the exercise of such rights (a “Fundamental Change Repurchase Notice”) to,
and such Fundamental Change Repurchase Notice must be received by, the Paying Agent no later than the Close of Business on the Business Day immediately preceding the Fundamental Change Repurchase Date. The Fundamental Change Repurchase Notice must
state: 
 (i) if Certificated Securities are to be delivered, the certificate numbers of the Securities that the Holder shall
deliver to be purchased; 
 (ii) the portion of the principal amount of the Securities that the Holder shall deliver to be
purchased, which portion must be in principal amounts of $1,000 or an integral multiple thereof; and 
 (iii) that such
Securities are being tendered for and shall be purchased by the Company on the Fundamental Change Repurchase Date pursuant to the terms and conditions specified in this First Supplemental Indenture. 
 The book-entry transfer or delivery of such Security to the Paying Agent (together with all necessary endorsements) at the office of the
Paying Agent shall be a condition to the receipt by the Holder of the Fundamental Change Repurchase Price; provided , however , that such Fundamental Change Repurchase Price shall be paid pursuant to this Section 3.01 only if the
Security so transferred by book-entry or delivered to the Paying Agent shall conform in all material respects to the description thereof in the related Fundamental Change Repurchase Notice. 
 The Company shall purchase from the Holder thereof, pursuant to this Section 3.01, a portion of a Security if the principal amount of
such portion is $1,000 or an integral multiple of $1,000. Provisions of this Section 3.01 that apply to the purchase of all of a Security also apply to the purchase of such a portion of such Security. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Fundamental Change Repurchase Notice
contemplated by this Section 3.01(d) shall have the right to withdraw such Fundamental Change Repurchase Notice at any time prior to the Close of Business on the Business Day immediately preceding the Fundamental Change Repurchase Date by
delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.02(b) below. 
 The Paying
Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Repurchase Notices or written notices of withdrawal thereof. 
 (e) Notwithstanding anything herein to the contrary, in the case of Global Securities, any Fundamental Change Repurchase Notice may be delivered or withdrawn, and such Securities may be surrendered or
transferred by book-entry or delivered for purchase, in accordance with the Applicable Procedures. 
 Section 3.02.
Effect of Fundamental Change Repurchase Notice. (a) Upon receipt by the Paying Agent of a Fundamental Change Repurchase Notice, the Holder of the Security in respect of which such Fundamental Change Repurchase Notice was given shall (unless
such Fundamental Change Repurchase Notice

  

 15 

 
is withdrawn as specified below) thereafter be entitled to receive the Fundamental Change Repurchase Price with respect to such Security. Such Fundamental Change Repurchase Price shall be paid to
such Holder on the later of (i) the Fundamental Change Repurchase Date ( provided such Holder has satisfied the conditions in Section 3.01(d) above with respect to such Security) and (ii) the time of book-entry transfer or
delivery of such Security to the Paying Agent by the Holder thereof in the manner required by Section 3.01(d) above. A Security in respect of which a Fundamental Change Repurchase Notice has been given by the Holder thereof may not be converted
pursuant to Article 4 hereof on or after the date of the delivery of such Fundamental Change Repurchase Notice, unless either (i) such Fundamental Change Repurchase Notice has first been validly withdrawn in accordance with Section 3.02(b)
below; or (ii) there shall be a default in the payment of the Fundamental Change Repurchase Price, provided , that the conversion right with respect to such Security shall terminate at the Close of Business on the date such default is
cured and such Security is purchased in accordance herewith. 
 (b) A Fundamental Change Repurchase Notice may be withdrawn by
any Holder delivering such Fundamental Change Repurchase Notice upon delivery of a written notice of withdrawal (which may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any other written form and, in the case
of Global Securities, may be delivered electronically or by other means in accordance with the Applicable Procedures) to and such notice of withdrawal must be received by the Paying Agent at any time prior to the Close of Business on the Business
Day immediately preceding the Fundamental Change Repurchase Date, specifying: 
 (i) if Certificated Securities are to be
withdrawn, the certificate numbers of the Securities in respect of which such notice of withdrawal is being submitted; 
 (ii)
the principal amount of the Securities in respect of which such notice of withdrawal is being submitted, which principal amount must be $1,000 or an integral multiple thereof; and 
 (iii) the principal amount, if any, of the Securities that remains subject to the original Fundamental Change Repurchase Notice and that has
been or shall be delivered for purchase by the Company. 
 Section 3.03. Deposit of Fundamental Change Repurchase
Price. On or prior to 11:00 a.m., New York City time, on a Fundamental Change Repurchase Date, the Company shall deposit with the Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall
segregate and hold in trust as provided in Section 2.04 hereof) an amount in Cash (in immediately available funds if deposited on such Fundamental Change Repurchase Date) sufficient to pay the aggregate Fundamental Change Repurchase Price of
all the Securities or portions thereof that are to be purchased on that Fundamental Change Repurchase Date. 
 If the Paying
Agent holds, in accordance with the terms hereof, at 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date, Cash sufficient to pay the aggregate Fundamental Change Repurchase Price of all Securities for which a
Fundamental Change Repurchase Notice has been delivered and not validly withdrawn in accordance with this First Supplemental Indenture, then, on and after such Fundamental Change Repurchase Date, such Securities shall cease to be outstanding and
interest (including any Additional Interest) on such Securities shall cease to accrue, whether or not such Securities are transferred by book-entry or delivered to the Paying Agent, and the rights of the Holders in respect thereof shall terminate
(other than the right to receive the Fundamental Change Repurchase Price upon delivery of such Securities by their Holders to the Paying Agent). 
 Section 3.04. Securities Purchased in Part. Any Certificated Security that is to be purchased only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the
Trustee so requires, due

  

 16 

 
endorsement by, or a written instrument of transfer in form reasonably satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing), and promptly after a Fundamental Change Repurchase Date, the Company shall issue and the Trustee shall, upon receipt of an Order from the Company (which the Company agrees to deliver promptly), authenticate and deliver to the
Holder of such Security, without service charge, a new Security or Securities, of such authorized denomination or denominations as may be requested by such Holder, in aggregate principal amount equal to, and in exchange for, the portion of the
principal amount of the Security so surrendered that is not purchased. 
 Section 3.05. Repayment to the Company. To
the extent that the aggregate amount of Cash deposited by the Company pursuant to Section 3.03 above exceeds the aggregate Fundamental Change Repurchase Price of the Securities or portions thereof that the Company is obligated to purchase on
the Fundamental Change Repurchase Date, then, within one Business Day after the Fundamental Change Repurchase Date, the Paying Agent shall return any such excess Cash to the Company. 
 Section 3.06. Compliance with Securities Laws upon Purchase of Securities. When complying with the provisions of Article 3
hereof (provided that such offer or purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used herein, includes any successor provision thereto) under the Exchange Act at the time of such
offer or purchase), and subject to any exemptions available under applicable law, the Company shall: 
 (a) comply with
Rule 13e-4, Rule 14e-1 and any other tender offer rules under the Exchange Act that may then be applicable; and 
 (b)
otherwise comply with all federal and state securities laws so as to permit the rights and obligations in connection with any purchase pursuant to this Article 3 to be exercised in the time and in the manner specified herein. 
 ARTICLE 4 
 CONVERSION 
 Section 4.01. Conversion Privilege. The Securities shall be convertible
in accordance with their terms and in accordance with and subject to this Article 4 into a number of shares of Common Stock equal to the Conversion Rate, subject to the provisions of Section 4.02 below regarding fractional shares, at any time
prior to the Close of Business on the Business Day immediately preceding the Maturity Date. Securities may be converted only in denominations of $1,000 principal amount and integral multiples thereof. 
 Section 4.02. Conversion Rate. (a) The Securities shall be convertible into a number of shares of Common Stock at an
initial conversion rate (the “Initial Conversion Rate”) of 164.0420 shares of Common Stock (subject to adjustments as provided in Section 4.02(c), Section 4.06 and Section 4.11 of this First Supplemental Indenture, as
so adjusted from time to time, the “Conversion Rate”) per $1,000 principal amount of Securities. 
 A Holder of
a Security otherwise entitled to a fractional share will receive Cash in an amount equal to the value of such fractional share based on the Closing Price of the Common Stock on the related Conversion Date. 
 A Security for which a Holder has delivered a Fundamental Change Repurchase Notice requiring the Company to purchase the Securities may be
surrendered for conversion only if such notice is withdrawn in accordance with this First Supplemental Indenture. 
  

 17 

 (b) If a Holder elects to convert Securities in connection with a Make-Whole
Fundamental Change, then the Conversion Rate of the Securities being converted by such Holder shall be increased by an additional number of shares of Common Stock (the “Additional Shares”) set forth in Exhibit B. For the avoidance
of doubt, the increases provided for in this Section 4.02(b) shall only be made with respect to the Securities being converted in connection with such Make-Whole Fundamental Change and shall not be effective as to any Securities not so
converted. For purposes of this Section 4.02(b), a conversion shall be deemed to be “in connection” with a Make-Whole Fundamental Change if it occurs during the period that begins on (and includes) the 15th Scheduled Trading Day prior
to the anticipated effective date of such Make-Whole Fundamental Change, as specified pursuant to the notice provided pursuant to Section 3.01(b) hereof, and ends on (and includes) the Fundamental Change Repurchase Date relating to such
Make-Whole Fundamental Change as set forth in Article 3 hereof. 
 (c) The increase in the Conversion Rate, expressed as a
number of Additional Shares to be received per $1,000 principal amount of Securities, will be determined by the Company by reference to the table attached as Exhibit B hereto, based on the earliest of the date on which the Make-Whole
Fundamental Change is publicly announced, occurs or becomes effective (the “Adjustment Date”) and the price paid or deemed to be paid per share of Common Stock in the transaction constituting the Make-Whole Fundamental Change (the
“Stock Price”) subject to adjustment as set forth in the next paragraph; provided that if a Holder of the Common Stock receives only Cash in connection with such transaction, the Stock Price shall be the Cash amount paid per
share. In all other cases, the Stock Price will be the average of the Closing Prices of the Common Stock over the thirty consecutive Trading Days prior to, but not including, the date of effectiveness of the Make-Whole Fundamental Change. If the
Stock Price is between two Stock Prices in the table or the Adjustment Date is between two Adjustment Dates in the table, the number of Additional Shares will be determined by a straight-line interpolation between the number of Additional Shares set
forth for the higher and lower Stock Prices and the earlier and later Adjustment Dates based on a 365-day year, as applicable. If the Stock Price is in excess of $50.00 per share (subject to adjustment in the same manner as the Stock Price), no
increase in the Conversion Rate will be made and if the Stock Price is less than $5.08 per share (subject to adjustment in the same manner as the Stock Price), no increase in the Conversion Rate will be made. Notwithstanding anything to the
contrary, in no event will the number of Additional Shares to be added to the Conversion Rate pursuant to Section 4.02(b) above and this Section 4.02(c) exceed 32.8084 shares (subject to adjustment in the same manner in which the
Conversion Rate is adjusted, as set forth in Section 4.06 hereof) per $1,000 principal amount of Securities. 
 The Stock
Prices set forth in the first row of the table attached as Exhibit B hereto will be adjusted as of any date on which the Conversion Rate is adjusted, as set forth in Section 4.06 hereof. The adjusted Stock Prices will equal the Stock Prices
applicable immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion
Rate as so adjusted. The number of Additional Shares will be adjusted in the same manner as the Conversion Rate as set forth in Section 4.06 hereof. 
 Securities surrendered for conversion in connection with a Make-Whole Fundamental Change will be settled as follows: 
  

	 	•	 	 If the Conversion Date occurs prior to the date of effectiveness of such Make-Whole Fundamental Change, settlement shall occur on the third Trading Day
immediately following such date of effectiveness; and 

  

	 	•	 	 If the Conversion Date occurs on or following the date of effectiveness of such Make-Whole Fundamental Change, settlement shall occur on the third
Trading Day immediately following such Conversion Date. 

  

 18 

 The Company will settle such conversions by delivering Reference Property equivalent to shares of the Common
Stock based on the increased Conversion Rate resulting from such Make-Whole Fundamental Change. 
 Notwithstanding the
foregoing, if the Reference Property with respect to a Make-Whole Fundamental Change consists entirely of Cash, (i) the applicable Stock Price used to determine the amount of Cash payable upon conversion of the Securities in connection with a
Make-Whole Fundamental Change will be the actual amount of Cash paid per share of Common Stock in such Make-Whole Fundamental Change and (ii) Securities surrendered for conversion in connection with such Make-Whole Fundamental Change will be
settled as follows: 
  

	 	•	 	 If the Conversion Date occurs prior to the date of effectiveness of such Make-Whole Fundamental Change, settlement shall occur on the third Business
Day immediately following such date of effectiveness; and 

  

	 	•	 	 If the Conversion Date occurs on or following the date of effectiveness of such Make-Whole Fundamental Change, settlement shall occur on the third
Business Day following such Conversion Date. 

 For the avoidance of doubt, in the event Securities are
surrendered for conversion in connection with an anticipated Make-Whole Fundamental Change and such Make-Whole Fundamental Change does not in fact occur, no Additional Shares will be added to the Conversion Rate and no additional Cash or Reference
Property will be paid as a result of the related anticipated Make-Whole Fundamental Change, and settlement shall occur on the third Business Day following the date on which the transaction giving rise to the anticipated Make-Whole Fundamental Change
is terminated or abandoned. 
 Section 4.03. Conversion Procedure. (a) The right of conversion attaching to any
Security may be exercised at any time during which conversion is permitted in accordance with Section 4.01 hereof (i) if such Security is represented by a Global Security, by book-entry transfer to the Conversion Agent through the
facilities of the Depositary in accordance with the Applicable Procedures, or (ii) if such Security is represented by a Certificated Security, by delivery of such Security at the specified office of the Conversion Agent, accompanied, in either
case, by: (1) a duly signed and completed conversion notice, in the form as set forth on the reverse of Security attached hereto as Exhibit A (a “Conversion Notice”); (2) if such Certificated Security has been lost,
stolen, destroyed or mutilated, a notice to the Conversion Agent in accordance with Section 2.06 hereof regarding the loss, theft, destruction or mutilation of the Security and such security or indemnity as required pursuant to
Section 2.06 hereof; (3) appropriate endorsements and transfer documents if required by the Conversion Agent; and (4) payment of any tax or duty, in accordance with Section 4.04 hereof, which may be payable in respect of any
transfer involving the issue or delivery of the Common Stock in the name of a Person other than the Holder of the Security. The date on which the Holder satisfies all of those requirements is the “Conversion Date.” The Securities
will be deemed to be converted immediately prior to the Close of Business on the Conversion Date. The Company shall deliver the shares to the Holder through a Conversion Agent in the form of a certificate for the number of whole shares of Common
Stock issuable upon the conversion or, in the case of holders of Securities in book-entry form with DTC, in accordance with DTC customary practices. In each case, the Company shall also deliver to such holder Cash in lieu of any fractional shares
pursuant to Section 4.02(a) of this First Supplemental Indenture. The Company shall deliver such shares and Cash, except as set forth in Section 4.02(c) and subject to Section 4.04 of this First Supplemental Indenture, in any event no
later than the third Trading Day immediately following the Conversion Date. 
  

 19 

 (b) The Person in whose name the Security is registered shall be deemed to be a shareholder
of record immediately prior to the Close of Business on the Conversion Date; provided , however , that no surrender of a Security or satisfaction of the other conditions in Section 4.03(a) above on any date when the stock transfer
books of the Company shall be closed shall be effective to constitute the Person or Persons entitled to receive the shares of Common Stock upon such conversion as the record holder or holders of such shares of Common Stock on such date, but such
surrender shall, provided that all such conditions have been satisfied, be effective to constitute the Person or Persons entitled to receive such shares of Common Stock as the record holder or holders thereof for all purposes at the Close of
Business on the next succeeding day on which such stock transfer books are open. Upon conversion of a Security, such person shall no longer be a Holder of such Security. 
 (c) The Company’s delivery to the Holder of the full number of shares of Common Stock into which the Security is convertible, together with any Cash payment for such holder’s fractional shares,
will be deemed to satisfy the Company’s obligation to pay the principal amount of the Security and to satisfy the Company’s obligation to pay accrued and unpaid interest (including Additional Interest, if any) to, but not including, the
Conversion Date. As a result, accrued interest is deemed paid in full rather than cancelled, extinguished or forfeited. 
 (d)
Upon surrender of a Security that is converted in part, the Company shall execute, and the Trustee shall, upon receipt of an Order of the Company, authenticate and deliver to the Holder, a new Security equal in principal amount of the unconverted
portion of the Security surrendered. 
 Section 4.04. Taxes on Conversion. If a Holder converts a Security, the
Company shall pay any documentary, stamp or similar issue or transfer taxes or duties relating to the issuance or delivery of shares of Common Stock upon exercise of such conversion rights. However, the Holder shall pay any tax or duty which may be
payable relating to any transfer involving the issuance or delivery of shares of Common Stock or Cash in a name other than the Holder’s name. The Conversion Agent may refuse to deliver the certificate representing shares of Common Stock being
issued in a name other than the Holder’s name or Cash payable to a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax or duties which will be due because the shares are to be issued or the
Cash is to be paid in a name other than the Holder’s name. Nothing herein shall preclude any tax withholding required by law or regulation. 
 Section 4.05. Company to Provide Stock. (a) The Company shall, prior to the issuance of any Securities hereunder, and from time to time as may be necessary, reserve at all times and keep
available, free from preemptive rights, out of its authorized but unissued Common Stock, a sufficient number of shares of Common Stock deliverable upon conversion of all of the Securities. 
 (b) All shares of Common Stock that may be issued upon conversion of the Securities shall be newly issued shares or shares held in the
treasury of the Company, shall be duly authorized, validly issued, fully paid and nonassessable and shall be free of any preemptive rights and free of any lien or adverse claim other than a lien or claim created by or with respect to the Holder of
the Securities being converted. 
 (c) The Company shall comply with all applicable securities laws regulating the offer and
delivery of any Common Stock upon conversion of Securities and, if the Common Stock is then listed or quoted on the NYSE, the NASDAQ Global Select Market, NASDAQ Global Market or any other United States national or regional securities exchange or
other market, shall list or cause to have quoted and keep listed and quoted the shares of Common Stock issuable upon conversion of the Securities to the extent permitted or required by the rules of such exchange or market; provided ,
however , that, if the rules of such automated quotation system or exchange permit the Company to defer the listing of such Common Stock until the first conversion of the Securities into Common Stock in accordance with the provisions of this
First Supplemental Indenture, the

  

 20 

 
Company covenants to list such Common Stock issuable upon conversion of the Securities in accordance with the requirements of such automated quotation system or exchange at such time. 

Section 4.06. Adjustment of Conversion Rate. This Section 4.06 describes adjustments to the Conversion Rate to be made
in connection with the events described below, as well as events that will not result in adjustment of the Conversion Rate, treatment of rights and treatment of Reference Property. 
 (a) If the Company, at any time or from time to time while any of the Securities are outstanding, issues shares of Common Stock as a
dividend or distribution on shares of Common Stock, or if the Company effects a share split or share combination in respect of the Common Stock, then the Conversion Rate shall be adjusted based on the following formula: 
 

 
  

					
	where
			
	CR0	 	=	  	the Conversion Rate in effect immediately prior to the Open of Business on the Record Date for such dividend or distribution, or the Open of Business on the effective date of such
share split or combination, as applicable;
			
	CR'	 	=	  	the new Conversion Rate in effect immediately after the Open 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 applicable;
			
	OS0	 	=	  	the number of shares of Common Stock outstanding immediately prior to the Open 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 applicable; and
			
	OS'	 	=	  	the number of shares of Common Stock outstanding immediately after such dividend or distribution, or the Open of Business on the effective date of such share split or share
combination, as applicable.

 The Company will not pay any dividend or make any distribution on shares of Common
Stock held in treasury by the Company. If any dividend or distribution of the type described in this Section 4.06(a) is declared but not so paid or made, or the outstanding shares of Common Stock are not split or combined, as the case may be,
the Conversion Rate shall again be adjusted to the Conversion Rate which would then be in effect if such dividend, distribution, share split or share combination had not been declared. 
 (b) Except as otherwise provided for by Section 4.06(d) below, if the Company, at any time or from time to time while any of the
Securities are outstanding, distributes to all or substantially all holders of its outstanding shares of Common Stock any rights or warrants entitling them for a period of not more than 45 calendar days from the Record Date of such distribution to
subscribe for or purchase shares of Common Stock at a price per share less than the Closing Price of the Common Stock on the Trading Day immediately preceding the Record Date of such distribution, the Conversion Rate shall be adjusted based on the
following formula: 
 

 
  

 21 

					
	where
			
	CR0	 	=	  	the Conversion Rate in effect immediately prior to the Open of Business on the Record Date for such distribution;
			
	CR'	 	=	  	the new Conversion Rate in effect immediately after the Open of Business on the Record Date for such distribution;
			
	OS0	 	=	  	the number of shares of Common Stock outstanding immediately prior to the Open of Business on the Record Date for such distribution;
			
	X	 	=	  	the total number of shares of Common Stock issuable pursuant to such rights or warrants; and
			
	Y	 	=	  	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights or warrants divided by the average of the Closing Prices of the Common Stock over
the ten consecutive Trading Day period ending on the Trading Day immediately preceding the Ex-Dividend Date for such distribution.

 To the extent that shares of Common Stock are not delivered pursuant to such rights
or warrants upon the expiration or termination of such rights or warrants, the Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect had the adjustments made upon the distribution of such rights or warrants been
made on the basis of the delivery of only the number of shares of Common Stock actually delivered. In the event that such rights or warrants are not so distributed, the Conversion Rate shall again be adjusted to be the Conversion Rate which would
then be in effect if the announcement with respect to such rights, warrants or convertible securities had not been made. 
 In
determining the aggregate price payable to exercise such rights or warrants, there shall be taken into account any amount payable on exercise thereof, with the value of such consideration, if other than Cash, to be determined in good faith by the
Company’s Board of Directors. 
 (c) If the Company, at any time or from time to time while any of the Securities are
outstanding, shall, by dividend or otherwise, distribute to all or substantially all holders of its Common Stock shares of any class of Capital Stock of the Company (other than Common Stock as covered by Section 4.06(a) above), evidences of its
indebtedness, assets, property or rights or warrants to acquire the Company’s Capital Stock or other securities, but excluding (i) dividends or distributions as to which an adjustment under Section 4.06(a), Section 4.06(b) or
Section 4.06(d) hereof shall apply, (ii) dividends or distributions paid exclusively in Cash and (iii) Spin-Offs to which the provision set forth below in this Section 4.06(c) shall apply (any of such shares of Capital Stock,
indebtedness, assets, property or rights or warrants to acquire the Company’s Common Stock or other securities, hereinafter in this Section 4.06(c) called the “Distributed Property”), then, in each such case the Conversion
Rate shall be adjusted based on the following formula: 
 

 
  

					
	where
			
	CR0	 	=	  	the Conversion Rate in effect immediately prior to the Open of Business on the Record Date for such distribution;

  

 22 

					
	CR'	 	=	  	the new Conversion Rate in effect immediately after the Open of Business on the Record Date for such distribution;
			
	SP0	 	=	  	the average of the Closing Prices of the Common Stock over the ten consecutive Trading Day period ending on the Trading Day immediately preceding the Ex-Dividend Date for such
distribution; and
			
	FMV	 	=	  	the fair market value (as determined in good faith by the Company’s Board of Directors) of the portion of Distributed Property with respect to each outstanding share of Common
Stock on the Record Date for such distribution.

 Notwithstanding the foregoing, if the then fair market value (as
so determined) of the portion of the Distributed Property so distributed applicable to one share of Common Stock is equal to or greater than SP 0 as set forth above, in lieu of the foregoing adjustment, the Company shall distribute to each Holder on the date the
Distributed Property is distributed to holders of Common Stock, but without requiring such Holder to convert its Securities, the amount of Distributed Property such Holder would have received had such Holder owned a number of shares of Common Stock
equal to the Conversion Rate on the record date fixed for determination for stockholders entitled to receive such distribution. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such Record Date had not been fixed. If the Board of Directors determines the fair market value of any distribution for purposes of this Section 4.06(c) by reference to the actual or when issued trading
market for any securities, it shall in doing so consider the prices in such market over the same period used in computing the average of the Closing Prices of the Common Stock for purposes of calculating SP 0 in the formula in this Section 4.06(c). 
 With respect to an adjustment pursuant to this Section 4.06(c) where there has been a payment of a dividend or other distribution on
the Common Stock consisting 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 (a “Spin-Off”), the Conversion Rate in effect
immediately before the Close of Business on the tenth Trading Day immediately following, and including, the effective date of the Spin-Off shall be increased based on the following formula: 
 

 
  

					
	where
			
	CR0	 	=	  	the Conversion Rate in effect immediately prior to the Close of Business on the 10th Trading Day immediately following, and including, the effective date of the Spin-Off;
			
	CR'	 	=	  	the new Conversion Rate in effect from and after the Close of Business on the 10th Trading Day immediately following, and including, the effective date of the Spin-Off;
			
	FMV	 	=	  	the average of the Closing Prices of the Capital Stock or similar equity interest distributed to holders of Common Stock applicable to one share of Common Stock over the 10
consecutive Trading Day period immediately following, and including, the effective date of the Spin-Off; and
			
	MP0	 	=	  	the average of the Closing Prices of Common Stock over the 10 consecutive Trading Day period immediately following, and including, the effective date of the
Spin-Off.

  

 23 

 Such adjustment shall occur on the 10th Trading Day immediately following, and including, the effective date
of the Spin-Off; provided that, for purposes of determining the Conversion Rate, in respect of any conversion during the 10 Trading Days following the effective date of any Spin-Off, references to 10 Trading Days within the portion of this
Section 4.06(c) related to “Spin-Offs” shall be deemed replaced with such lesser number of Trading Days as have elapsed between the effective date of such Spin-Off and the relevant Conversion Date. 
 For purposes of this Section 4.06(c), Section 4.06(a) and Section 4.06(b) hereof, any dividend or distribution to which this
Section 4.06(c) is applicable that also includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock to which Section 4.06(a) or 4.06(b) hereof applies (or both), shall be deemed instead to be
(1) a dividend or distribution of the evidences of indebtedness, assets or shares of Capital Stock other than such shares of Common Stock or rights or warrants to which Section 4.06(a) or 4.06(b) hereof applies (and any Conversion Rate
adjustment required by this Section 4.06(c) with respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants to which
Section 4.06(a) or 4.06(b) hereof applies (and any further Conversion Rate adjustment required by Section 4.06(a) and 4.06(b) hereof with respect to such dividend or distribution shall then be made), except (A) the Open of Business on
the Record Date of such dividend or distribution shall be substituted for “the Open of Business on the Record Date,” “the Open of Business on the Record Date or the Open of Business on the effective date,” “after the Open 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” and “the Open of Business on the Record Date for such distribution” within the
meaning of Section 4.06(a) and Section 4.06(b) hereof and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding immediately prior to the Open of Business on the Record Date or
the Open of Business on the effective date” within the meaning of Section 4.06(a) hereof. 
 (d) If the Company, at
any time or from time to time while any of the Securities are outstanding, distributes rights or warrants to all holders of Common Stock entitling the holders thereof to subscribe for, purchase or convert into shares of the Company’s Capital
Stock (either initially or under certain circumstances), which rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (x) are deemed to be transferred with such shares of Common Stock;
(y) are not exercisable; and (z) are also issued in respect of future issuances of Common Stock, shall be deemed not to have been distributed for purposes of Section 4.06(c) above, (and no adjustment to the Conversion Rate under
Section 4.06(c) above will be required) until the occurrence of the earliest Trigger Event and a distribution or deemed distribution under the terms of such rights or warrants and an appropriate adjustment (if any is required) to the Conversion
Rate shall be made in the same manner as provided for under Section 4.06(c) above. If any such right or warrant are subject to events, upon the occurrence of which such rights or warrants become exercisable to purchase different securities,
evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and Record Date with respect to new rights or warrants with such rights (and a termination or
expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants (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 4.06(d) was made, (1) in the case of any such rights or warrants that shall all have been
redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a Cash
distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that shall have expired or been terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights
or warrants had not been issued. 
  

 24 

 (e) If the Company, at any time or from time to time while any of the Securities are
outstanding, makes a Cash dividend or distribution to all or substantially all holders of Common Stock, the Conversion Rate shall be adjusted based on the following formula: 
 

 
  

					
	where	 		  	
			
	CR0	 	=	  	the Conversion Rate in effect immediately prior to the Open of Business on the Business Day immediately prior to the Record Date for such dividend or distribution;
			
	CR'	 	=	  	the new Conversion Rate in effect immediately after the Open of Business on the Record Date for such dividend or distribution;
			
	SP0	 	=	  	the average Closing Price of the Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution; and
			
	C	 	=	  	the amount in Cash per share the Company distributes or dividends to holders of Common Stock.

 Notwithstanding the foregoing, if the portion of the Cash so
distributed applicable to one share of Common Stock is equal to or greater than SP0 as set forth above, in lieu of the foregoing adjustment, the Company shall distribute to each Holder on the date the Cash dividend or distribution is paid to holders of Common Stock, but without
requiring such Holder to convert its Securities, for each $1,000 principal amount of Securities, the amount of Cash such Holder would have received had such Holder owned a number of shares of Common Stock equal to the Conversion Rate on the Record
Date for such dividend or distribution. If such dividend or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been
declared. 
 For the avoidance of doubt, for purposes of this Section 4.06(e), in the event of any reclassification of the
Common Stock, as a result of which the Securities become convertible into more than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to this Section 4.06(e), references in this Section to one share of
Common Stock or Closing Price of one share of Common Stock shall be deemed to refer to a unit or to the price of a unit consisting of the number of shares of each class of Common Stock into which the Securities are then convertible equal to the
numbers of shares of such class issued in respect of one share of Common Stock in such reclassification. The above provisions of this paragraph shall similarly apply to successive reclassifications. 
 (f) If the Company or any of its Subsidiaries makes a payment of Cash or other consideration in respect of a tender offer or exchange offer
for all or any portion of the Common Stock, where such Cash and the value of any such other consideration included in the payment per share of Common Stock validly tendered or exchanged exceeds the Closing Price of the Common Stock on the Trading
Day next succeeding the last date (the “expiration date”) on which tenders or exchanges may be made pursuant to such tender or exchange offer (as it may be amended), the Conversion Rate shall be increased based on the following formula:

 

 
  

 25 

					
	where	 		  	
			
	CR0	 	=	  	the Conversion Rate in effect immediately prior to the Close of Business on the Trading Day next succeeding the expiration date;
			
	CR'	 	=	  	the new Conversion Rate in effect immediately after the Close of Business on the Trading Day next succeeding the expiration date;
			
	AC	 	=	  	the aggregate value of all Cash and any other consideration (as determined in good faith by the Company’s Board of Directors) paid or payable for shares 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;
			
	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 Closing Price of Common Stock on the Trading Day next succeeding the expiration date.

 If the Company or a Subsidiary is obligated to purchase shares of Common Stock
pursuant to any such tender or exchange offer, but the Company or such Subsidiary is permanently prevented by applicable law from effecting any such purchases or all or any portion of such purchases are rescinded, then the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer had not been made or had only been made in respect of the purchases that had been effected. Except as set forth in the preceding sentence, if
an adjustment to the Conversion Rate pursuant to this Section 4.06(f) with respect to any tender offer or exchange offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer or exchange offer
under this Section 4.06(f). 
 (g) For purposes of this Section 4.06 the term “Record Date” shall
mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any Cash, securities or other property or in which the Common Stock (or other applicable security) is
exchanged for or converted into any combination of Cash, securities or other property, the date fixed for determination of shareholders entitled to receive such Cash, securities or other property (whether such date is fixed by the Board of Directors
or by statute, contract or otherwise). 
 (h) If application of the formulas provided in Sections 4.06(a), 4.06(b), 4.06(c),
4.06(d), 4.06(e) or 4.06(f) above would result in a decrease in the Conversion Rate, no adjustment (other than a readjustment as described in such sections) to the Conversion Rate shall be made except in the case of a share split or combination of
the Common Stock. 
 (i) If one or more events occur requiring an adjustment be made to the Conversion Rate for a particular
period, adjustments to the Conversion Rate shall be determined by the Company’s Board of Directors to reflect the combined impact of such Conversion Rate adjustments, as set out in this Section 4.06, during such period. 
 Section 4.07. No Adjustment. No adjustment in the Conversion Rate shall be required unless the adjustment would result in a
change in the Conversion Rate of at least 1.00%; provided , however , that any adjustment which by reason of this Section 4.07 is not required to be made shall be carried forward and the

  

 26 

 
Company shall make such adjustment, regardless of whether the aggregate adjustment is less than 1.00%, within one year of the first such adjustment carried forward or in connection with any
conversion of Securities. All calculations under this Article 4 shall be made to the nearest one-ten thousandth (1/10,000) of a cent or to the nearest one-ten thousandth (1/10,000) of a share, as the case may be. 
 No adjustment in the Conversion Rate need be made for (i) issuances of Common Stock pursuant to any present or future Company plan for
reinvestment of dividends or interest payable on the Company’s securities or the investment of additional optional amounts thereunder in shares of Common Stock, (ii) upon the issuance of any shares of Common Stock or options or 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 under (ii) above and outstanding as of the date the Securities were first issued, (iii) a change in the par value of the Common Stock,
(iv) upon the issuance of any shares of Common Stock pursuant to the Common Stock offering made concurrently with the offering of the Securities (including upon the initial issuance and subsequent issuance of shares of Common Stock if the
over-allotment option is exercised by one or more of the underwriters thereunder) or (v) accrued and unpaid interest, including Additional Interest, if any. 
 No adjustment to the Conversion Rate need be made pursuant to Section 4.06 above for a transaction if Holders are permitted to participate in the transaction without conversion, concurrently with the
holders of Common Stock, on a basis and with notice that the Board of Directors of the Company determines in good faith to be fair and appropriate in light of the basis and notice to holders of Common Stock participating in the transaction.

 Whenever a provision of this First Supplemental Indenture requires the calculation of an average of the Closing Price over a
span of multiple days, the Company will make appropriate adjustments to account for any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion Rate that becomes effective, or any event
requiring an adjustment to the Conversion Rate where the Ex-Dividend Date of the event occurs, at any time during the period from which the average is to be calculated. 
 Section 4.08. Shareholder Rights Agreements. Upon conversion of the Securities, the Holders shall receive, in addition to any shares of Common Stock issuable upon such conversion, any
associated rights issued under any shareholder rights agreement the Company adopts or implements that provides that each share of Common Stock issued upon conversion of the Securities at any time prior to the distribution of separate certificates
representing such rights will be entitled to receive such rights unless, prior to conversion, the rights have separated from the Common Stock, expired, terminated or been redeemed or exchanged in accordance with such rights plan, and no adjustment
shall be made to the Conversion Rate pursuant to Section 4.06(d) hereof. If, prior to any conversion, the rights have separated from the Common Stock, the Conversion Rate shall be adjusted at the time of separation as if the Company distributed
to all holders of Common Stock, shares of Capital Stock, evidences of indebtedness, assets, property or rights or warrants as described in Section 4.06(d) hereof, subject to readjustment in the event of the expiration, termination or redemption
of such rights. 
 Section 4.09. Effect of Reclassification, Consolidation, Merger or Sale on Conversion Privilege.
If (1) there shall occur (a) any reclassification of 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 a change as a result of a subdivision or combination of
Common Stock); (b) a statutory share exchange, consolidation, merger or combination involving the Company other than a merger in which the Company is the continuing corporation and which does not result in any reclassification of, or change
(other than in par value, or from par value to no par value, or from no par value to par value, or a change as a result of a subdivision or combination of Common Stock) in, outstanding shares of Common Stock; or (c) a sale or conveyance as an
entirety or substantially as an entirety of the property and assets of the Company, directly or indirectly, to another Person; and (2) pursuant to such

  

 27 

 
reclassification, statutory share exchange, consolidation, merger, combination, sale or conveyance, holders of outstanding shares of Common Stock would be entitled to receive stock (other than
Common Stock), other securities, other property, assets or Cash (or any combination thereof) for such shares of Common Stock (any such event a “Reorganization Event”), then the Company, or such successor or surviving, purchasing or
transferee Person, as the case may be, shall, as a condition precedent to such Reorganization Event, execute and deliver to the Trustee a supplemental indenture signed by the principal executive officer, principal financial officer or principal
accounting officer of the Company and at least one other Officer of the Company and providing that, at the effective time of the Reorganization Event, the settlement of the Securities tendered for conversion will be based on, and the property
deliverable in respect of any such settlement will consist of, the kind and amount of shares of stock, other securities or other property or assets (including Cash or any combination thereof) that holders of shares of Common Stock are entitled to
receive in respect of each share of Common Stock upon such Reorganization Event (the “Reference Property”). If the Reorganization Event causes the Common Stock to be converted into the right to receive more than a single type of
consideration (determined based in part upon any form of shareholder election), the Reference Property into which the Securities will be convertible will 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. None of the foregoing provisions shall affect the right of a holder of Securities to convert its Securities in accordance with the provisions of this Article 4 prior to the effective
date of such Reorganization Event. Such supplemental indenture 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 4.
The provisions of this Section 4.09 shall similarly apply to successive Reorganization Events. 
 Section 4.10.
Other Adjustments. Subject to applicable stock exchange rules and listing standards, the Company shall be entitled to increase the Conversion Rate by any amount for a period of at least 20 Business Days if the Board of Directors determines that
such increase would be in the best interests in the Company; provided the Company has given to Holders and the Trustee at least 15 days’ prior notice, in accordance with Sections 1.7 and 1.8 of the Base Indenture, of any such increase in
the Conversion Rate and the period during which it will be in effect. Subject to applicable stock exchange rules and listing standards, the Company shall be entitled to increase the Conversion Rate, in addition to the events requiring an increase in
the Conversion Rate pursuant to Section 4.06 hereof, as it in its discretion shall determine to be advisable in order to avoid or diminish any tax to shareholders in connection with any stock dividends, subdivisions of shares, distributions of
rights to purchase stock or securities or distributions of securities convertible into or exchangeable for stock hereafter made by the Company to its shareholders. 
 Section 4.11. Notice of Adjustment. Whenever the Conversion Rate or conversion privilege is adjusted, the Company shall promptly mail to Securityholders a notice of the adjustment in
accordance with Section 1.8 of the Base Indenture, and file with the Trustee an Officers’ Certificate briefly stating the Conversion Rate, the facts giving rise to the adjustment and the manner of computing it. Unless and until the

  

 28 

 
Trustee shall receive an Officers’ Certificate setting forth an adjustment of the Conversion Rate, the Trustee may assume without inquiry that the Conversion Rate has not been adjusted and
that the last Conversion Rate of which it has knowledge remains in effect. 
 Section 4.12. Trustee’s
Disclaimer. The Trustee shall have no duty to determine when an adjustment under this Article 4 should be made, how it should be made or what such adjustment should be, but may accept as conclusive evidence of that fact or the correctness of any
such adjustment set forth in, and shall be protected in relying upon, an Officers’ Certificate, including the Officers’ Certificate with respect thereto which the Company is obligated to file with the Trustee pursuant to Section 4.11
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 Company’s failure to comply with any provisions of this
Article 4. 
 The Trustee shall not be under any responsibility to determine the correctness of any provisions contained in any
supplemental indenture executed pursuant to Section 4.09, but may accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying upon, the Officers’ Certificate and Opinion of Counsel with respect thereto
which the Company is obligated to file with the Trustee pursuant to Section 4.09. 
 Section 4.13. Settlement Upon
Conversion. Except as described in this Section 4.13, the Company will not make any payment in Cash or Common Stock or other adjustment for accrued and unpaid interest (including Additional Interest, if any) on any Securities when they are
converted. If Securities are surrendered for conversion after the Close of Business on a Record Date for the payment of interest but prior to the Open of Business on the corresponding Interest Payment Date, a Holder of such Securities at the Close
of Business, on such Record Date will receive the interest payable on such Securities on the corresponding Interest Payment Date notwithstanding the conversion of those Securities prior to that Interest Payment Date; provided , however
, that each Holder agrees, by accepting a Security, that if the Holder surrenders any Securities for conversion during such period, such Holder must pay the Company at the time such Holder surrenders its Securities for conversion interest (including
Additional Interest) in accordance with the next sentence. Securities surrendered for conversion during the period from the Close of Business on any Record Date to the Open of Business on the immediately following Interest Payment Date, must be
accompanied by funds equal to the amount of interest (including Additional Interest, if any) payable on such Interest Payment Date on the Securities so converted; provided that no such payment need be made (a) if the Company has
specified a Fundamental Change Repurchase Date in respect of the Securities that is after the Close of Business on a Record Date and on or prior to the Open of Business on the next Interest Payment Date; or (b) to the extent of any overdue
interest, if any such amount exists at the time of conversion with respect to such Security. 
 ARTICLE 5 
 COVENANTS 
 Section 5.01. Payment of Securities. The Company shall promptly make all payments in respect of the Securities on the dates and in the manner provided in the Securities and this First
Supplemental Indenture, including payments of Cash and shares of Common Stock due upon conversion. The principal amount, Fundamental Change Repurchase Price and accrued and unpaid interest shall be considered paid on the date it is due if the Paying
Agent holds on or prior to 11:00 a.m., New York City time, on such date, in accordance with the Indenture, Cash designated and sufficient for the payment of all such amounts then due. The Company shall, to the fullest extent permitted by
law, pay interest

  

 29 

 
on overdue principal and overdue installments of interest and Additional Interest, if any, at the rate borne by the Securities per annum. 
 The Company shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue amounts from time to
time on demand at the rate then in effect; it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Additional Interest, if any (in each case, without regard to any
applicable grace periods), from time to time on demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 
 Each installment of accrued and unpaid interest and Additional Interest, if any, on the Securities due on any Interest Payment Date may be
paid by mailing checks for the amount payable to or upon the written order of the Securityholders entitled thereto as they shall appear on the registry books of the Company, provided that, with respect to any Securityholder with an aggregate
principal amount in excess of $2,000,000, at the application of such Holder in writing to the Registrar not later than the relevant Record Date accrued and unpaid interest and Additional Interest, if any, on such Holder’s Securities shall be
paid by wire transfer in immediately available funds to such Holder’s account in the United States supplied by such Holder from time to time to the Trustee and Paying Agent (if different from Trustee); provided further that payment of
accrued and unpaid interest and Additional Interest, if any, shall be made to the Depositary by wire transfer in immediately available funds in accordance with such wire transfer instructions and other procedures provided by the Depositary from time
to time. 
 Section 5.02. Reports and Certain Information. The Company shall file with the Trustee, within 15 days
after it is required to file them with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, copies of its annual report and the information, documents and other reports which the Company is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act; provided that any such reports, information or documents filed with the SEC pursuant to its Electronic Date Gathering, Analysis and Retrieval (or EDGAR) system shall be deemed filed with the
Trustee and provided further that the Company shall not be required to deliver to the Trustee any material for which the Company has sought and received confidential treatment from the SEC. The Company shall comply with the provisions of TIA
Section 314(a), whether or not the Company is required to file reports with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. Notwithstanding anything to the contrary herein, the Trustee shall have no duty to review such
documents for purposes of determining compliance with any provisions of this First Supplemental Indenture or any applicable law. 
 Section 5.03. Compliance Certificates. The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an Officers’ Certificate signed by the
principal executive officer, principal financial officer or principal accounting officer of the Company and at least one other Officer of the Company, as to his or her knowledge of the Company’s compliance with all terms, conditions and
covenants under this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which he or she may have
knowledge. 
 Section 5.04. Stay, Extension and Usury Laws. The Company covenants, to the extent it may lawfully do
so, that it shall not at any time insist upon, plead or in any manner whatsoever claim or take the benefit or advantage of any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of
the principal amount or Fundamental Change Repurchase Price in respect of Securities or any interest (including any Additional Interest) on the Securities as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of the Indenture, and the Company, to the extent it may lawfully do so, hereby expressly waives all benefit or advantage of any such law and covenants, to the extent it may lawfully do so, that it shall not,
by resort to any such law, hinder, delay or impede the execution of any power herein granted to

  

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the Trustee or any Agent, but shall suffer and permit the execution of every such power as though no such law had been enacted. 
 Section 5.05. Notice of Default. In the event that any Default or Event of Default shall occur, the Company shall give prompt
(and in any event within thirty (30) days after the Company becomes aware of such Default or Event of Default) written notice by an Officers’ Certificate of such Default or Event of Default, and any remedial action proposed to be taken, to
the Trustee. 
 Section 5.06. Additional Interest Notice. In the event that the Company elects to pay Additional
Interest to the Securityholders pursuant to Section 7.03, the Company will provide written notice to the Trustee as set forth in Section 7.03 hereof. 
 ARTICLE 6 
 CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFEROR LEASE 
 Section 6.01. Company May Consolidate,
etc., Only on Certain Terms. Article 8 of the Base Indenture shall not apply to the Securities. The Company shall not consolidate with, or merge into, any other Person or convey, transfer or lease all or substantially all of the Company’s
properties and assets to any other Person in a single transaction or series of transactions, unless: 
 (a) either:

  

	 	•	 	 the resulting, continuing, surviving or transferee Person is the Company; or 

  

	 	•	 	 the resulting, continuing, surviving or transferee Person is a corporation or limited liability company (provided, that the successor may be a
limited liability company only if the Securities remain convertible into common stock of a corporation) organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all of the obligations of the Company under the Securities and the Indenture; 

 (b) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; 

(c) if, as a result of such transaction, the Securities become convertible into Common Stock or other securities issued by a third party,
such third party fully and unconditionally guarantees all obligations of the Company, or such other Person under the Securities and the Indenture; and 
 (d) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel (upon which the Trustee may conclusively rely), each stating that such consolidation, merger,
conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture complies with this Article and that all conditions precedent herein provided for relating to such
transaction have been complied with. 
  

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 Section 6.02. Successor Substituted. Upon any consolidation of the Company with,
or merger of the Company into, any other Person or any conveyance, transfer or lease of all or substantially all of the properties and assets of the Company in accordance with Section 6.01 hereof, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture with the same effect as if
such successor Person had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all obligations and covenants under the Indenture and the Securities. 
 ARTICLE 7 
 DEFAULT AND REMEDIES 
 Section 7.01. Events of
Default. An “Event of Default” shall occur if: 
 (a) the Company defaults in the payment of any principal
of the Securities when the same becomes due and payable (whether at maturity, on a Fundamental Change Repurchase Date or otherwise); 
 (b) the Company defaults in the payment of any accrued and unpaid interest (including Additional Interest, if any) on any of the Securities when the same becomes due and payable, and such default continues for a period of 30 days;

 (c) the Company fails to deliver all shares of Common Stock when such Common Stock is required to be delivered upon
conversion of any Securities, and such default continues for ten Business Days; 
 (d) the Company fails to provide the
Fundamental Change Company Notice when required by this First Supplemental Indenture and such default continues for ten Business Days; 
 (e) the Company fails to comply with any of its other agreements contained in the Securities or in the Indenture (other than a covenant or warranty or default whose performance or breach is elsewhere in this Section 7.01 specifically
provided for) and such failure continues for 60 days after receipt by the Company of a Notice of Default; 
 (f) the Company, or
any Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy Law, commences a voluntary case or proceeding; consents to the entry of an order for relief against it in an involuntary case or proceeding or the commencement of any
case against it; consents to the appointment of a Custodian of it or for any substantial part of its property; or makes a general assignment for the benefit of its creditors; or 
 (g) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that is for relief against the Company or a
Significant Subsidiary in an involuntary case or proceeding; appoints a Custodian of the Company or a Significant Subsidiary for any substantial part of the property of the Company or such Significant Subsidiary; or orders the winding up or
liquidation of the Company or a Significant

  

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Subsidiary; and in each case of this clause (g) the order or decree remains unstayed and in effect for 60 consecutive days. 
 The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any similar federal
or state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 
 A default under clause (e) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding notify the Company and the Trustee, in writing of the Default, and the Company does not cure the Default (or such Default is not waived) within the time period specified in
clause (e) above, as applicable, after actual receipt of such notice. The notice given pursuant to this Section 7.01 must be in writing, specify the Default, demand that it be remedied and state that the notice is a “Notice of
Default.” When any Default under this Section 7.01 is cured in accordance herewith, it shall cease to be a Default. 
 The Trustee shall not be charged with knowledge of any Event of Default unless written notice thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by the Company (including, without limitation,
pursuant to Section 5.03), a Paying Agent, any Holder or any agent of any Holder, which notice references the Securities and the Indenture. 
 Section 7.02. Acceleration. If an Event of Default (other than an Event of Default with respect to the Company specified in clauses (f) or (g) of Section 7.01 hereof) occurs and
is continuing, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding may, by notice to the Company and the Trustee, declare all unpaid principal of, plus interest
(including Additional Interest, if any) accrued and unpaid through the date of such declaration on, all the Securities then outstanding to be due and payable upon any such declaration, and the same shall thereupon become and be immediately due and
payable. 
 If an Event of Default with respect to the Company specified in clauses (f) or (g) of Section 7.01
hereof occurs, all unpaid principal of, plus interest (including Additional Interest, if any) accrued and unpaid through the date of such default on, all the Securities then outstanding 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 or the Holders originally causing the acceleration by notice to the Trustee may rescind an acceleration of Securities and its consequences before a judgment or decree for the payment of money has
been obtained by the Trustee if (a) the rescission would not conflict with any existing order or decree, (b) all existing Events of Default, other than the nonpayment of the principal of, plus accrued and unpaid interest (including
Additional Interest, if any) on, the Securities that has become due solely by such declaration of acceleration, have been cured or waived and (c) all payments due to the Trustee and any predecessor Trustee under Section 6.7 of the Base
Indenture have been made. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 The
provisions of Sections 7.01 and 7.02 of this First Supplemental Indenture shall supersede and replace the provisions, respectively, of Sections 5.1 and 5.2 of the Base Indenture for purposes of the Securities. 
 Section 7.03. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated to,
pursue any available remedy by proceeding at law or in equity to collect the payment

  

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of the principal of or accrued and unpaid interest on the Securities, the payment of Cash and, if applicable, shares of Common Stock upon conversion or to enforce the performance of any provision
of the Securities or the 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 Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or
acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by law. 
 Notwithstanding anything to the contrary in the Indenture, to the extent elected by the Company, the sole remedy for an Event of Default relating to the Company’s failure to comply with the covenant
set forth in Section 5.02 hereof, for the failure to file any documents or reports that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act or for any failure to comply with the requirements of
Section 314(a)(1) of the TIA (any such obligation, the “Reporting Obligations”), shall for the first 90 days after the occurrence of such an Event of Default consist exclusively of the right to receive additional interest on
the Securities at an annual rate of 0.25% of the principal amount of the Securities (the “Additional Interest”). If the Company so elects, such Additional Interest will accrue on all outstanding Securities from, and including, the
date on which an Event of Default relating to a failure to comply with the Reporting Obligations hereof first occurs to, but not including, the 91st day thereafter (or such earlier date on which the Event of Default relating to the Reporting
Obligations shall have been cured or waived). On such 91st day (or earlier, if such Event of Default is cured or waived prior to such 91st day), such Additional Interest will cease to accrue and, if such Event of Default has not been cured or waived
prior to such 91st day, the Securities will be subject to acceleration as provided above. The provisions set forth in this paragraph will not affect the rights of Holders of Securities in the event of the occurrence of any other Event of Default.
For the avoidance of doubt, the Additional Interest shall not begin accruing until the Company fails to comply with the Reporting Obligations for a period of 60 calendar days after written notice of such failure is given to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Securities then outstanding. In the event Company does not elect to pay the Additional Interest in accordance with this paragraph, the
Securities will be subject to acceleration as provided above. In order to elect to pay the Additional Interest as the sole remedy during the first 90 days after the occurrence of an Event of Default relating to failure to comply with the Reporting
Obligations, the Company must notify the Trustee and the Paying Agent of such election on or before the Close of Business on the date on which such Event of Default occurs. Upon the Company’s failure to timely give such notice or pay the
Additional Interest, the Securities will be subject to acceleration as provided above. 
 Section 7.04. Waiver of
Defaults and Events of Default. Subject to Section 7.06 and Section 8.02 hereof, the Holders of a majority in aggregate principal amount of the Securities then outstanding by notice to the Trustee may waive an existing or future
Default or Event of Default and its consequences, except a Default or Event of Default in the payment of the principal of, or any interest (including Additional Interest, if any) on any Security, or the payment of any applicable Fundamental Change
Repurchase Price or a failure by the Company to deliver shares of Common Stock (and Cash in lieu of any fractional shares) upon conversion in accordance with Article 4 or any Default or Event of Default in respect of any provision of the Indenture
or the Securities that, under Section 8.02 hereof, cannot be modified or amended without the consent of the Holders of each outstanding Security. When a Default or Event of Default is waived, it is deemed cured, but no such waiver shall extend
to any subsequent or other Default or impair any consequent right. This Section 7.04 shall be in lieu of Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) is hereby expressly excluded from the Indenture, as permitted by
the TIA. 
  

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 Section 7.05. Limitations on Suits. The provisions of this Section 7.05
shall supersede and replace the provision of Section 5.7 of the Base Indenture for purposes of the Securities. Subject to Section 7.06 hereof, a Holder of a Security may not pursue any remedy with respect to the Indenture or the Securities
unless: 
 (a) the Holder gives to the Trustee written notice of a continuing Event of Default; 
 (b) the Holders of at least 25% in aggregate principal amount of the then outstanding Securities make a written request to the Trustee to
pursue the remedy; 
 (c) such Holder or Holders offer to the Trustee security or indemnity reasonably satisfactory to the
Trustee against any loss, liability or expense; 
 (d) the Trustee does not comply with the request to pursue the remedy within
60 days after receipt of the notice, request and the offer of security or indemnity; and 
 (e) no direction inconsistent with
such written request has been given to the Trustee during such 60-day period by the Holders of a majority in aggregate principal amount of the Securities then outstanding. 
 A Securityholder may not use the Indenture to prejudice the rights of another Securityholder or to obtain a preference or priority over such
other Securityholder. 
 Section 7.06. Rights of Holders to Receive Payment and to Convert. The provisions of this
Section 7.06 shall supersede and replace the provision of Section 5.8 of the Base Indenture for purposes of the Securities. Notwithstanding any other provision of the Indenture, the right of any Holder of a Security to receive payment in
Cash of the principal amount, Fundamental Change Repurchase Price or interest (including Additional Interest, if any) on any Security, on or after the respective due dates expressed in the Security and this First Supplemental Indenture or receive
shares of Common Stock (and Cash in lieu of fractional shares) upon conversion in accordance with Article 4 and to bring suit for the enforcement of any such payment on or after such respective dates or the right to convert, is absolute and
unconditional and shall not be impaired or affected without the consent of the Holder. 
 Section 7.07. Collection Suit
by Trustee. The provisions of this Section 7.07 shall supersede and replace the provision of Section 5.3 of the Base Indenture for purposes of the Securities. If an Event of Default in the payment of principal or interest (including
Additional Interest, if any) or Fundamental Change Repurchase Price specified in clauses (a) or (b) of Section 7.01 hereof occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or another obligor on the Securities for the whole amount owing with respect to the Securities and the amounts provided for in Section 6.7 of the Base Indenture. 
 Section 7.08. Priorities. The provisions of this Section 7.08 shall supersede and replace the provision of Section 5.6
of the Base Indenture for purposes of the Securities. Any money or property collected by the Trustee pursuant to this Article 7, and after an Event of Default, any money or other property distributable in respect of the Company’s obligations
under the Indenture shall be paid out in the following order: 
 First, to the Trustee (including any predecessor Trustee) for
amounts due under Section 6.7 of the Base Indenture; 
 Second, to Securityholders for amounts due and unpaid on the
Securities for the principal amount, interest (including Additional Interest, if any), the Fundamental Change Repurchase Price, amounts due upon conversion (including amounts resulting from a Make-Whole Fundamental Change)

  

 35 

 
as the case may be, ratably, without preference or priority of any kind, according to such amounts due and payable on the Securities; and 
 Third, the balance, if any, to the Company. 
 The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 7.08. At least 15 days before such record date, the Trustee shall mail to each Holder and the
Company a notice that states the record date, the payment date and the amount to be paid. 
 Section 7.09. Expenses and
Compensation of the Trustee. Without limiting any rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 7.01(f) or
Section 7.01(g) above, the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services are intended to constitute expenses of administration under any applicable federal or state bankruptcy,
insolvency or other similar law. 
 ARTICLE 8 
 AMENDMENTS, SUPPLEMENTS AND WAIVERS 
 Section 8.01. Without Consent of Holders. The Company and the Trustee may amend or supplement the Indenture or the Securities without notice to, or consent of, any Securityholder: 

(a) to cure any ambiguity, omission, defect or inconsistency, to correct or supplement any provision herein which may be inconsistent
with any other provision herein, or to make any other provisions with respect to matters or questions arising under the Indenture which shall not be inconsistent with the provisions of the Indenture, provided that such action pursuant to this
clause (a) shall not adversely affect the interests of the Holders in any material respect; 
 (b) to provide for
uncertificated Securities in addition to or in place of Certificated Securities; 
 (c) to provide for the assumption of the
Company’s obligations to Holders of Securities in the case of a share exchange, merger or consolidation or sale of all or substantially all of the Company’s assets; 
 (d) to add a guarantor; 
 (e) to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA; 
 (f) to secure the Securities; 
 (g) to increase the Conversion Rate; 

(h) to comply with the rules of any applicable securities depositary, including the Depositary; 
 (i) to conform the text of the Indenture or the Securities to any provision of the “Description of the Notes” contained in the
Prospectus to the extent that the text of the “Description of the Notes” was intended by the Company and the Underwriters to be a recitation of the text of the Indenture or the Securities as represented by the Company to the Trustee in an
Officers’ Certificate; 
 (j) to provide for a successor Trustee in accordance with the terms of the Indenture or to
otherwise comply with any requirement of the Indenture; 
  

 36 

 (k) to provide for the issuance of Additional Securities, to the extent that the Company and
the Trustee deem such amendment or supplement necessary or advisable in connection with such issuance; provided that no such amendment or supplement shall impair the rights or interests of any Holder of outstanding Securities; or 

(l) to add to the covenants listed in Article 5 of this First Supplemental Indenture and Article 10 of the Base Indenture or Events of
Default listed in Article 7 of this First Supplemental Indenture for the benefit of the Holders or surrender any right or power conferred upon the Company; 
 (m) to establish the forms or terms of the Securities if issued in certificated form; 
 (n) make any change to the Indenture or forms or terms of the Securities that would provide any additional rights or benefits to the Holders of Securities or that does not adversely affect in any material respect the legal rights under the
Indenture or the Securities of any such Holder; or 
 (o) to execute a supplemental indenture in accordance with
Section 4.09 hereof. 
 Section 8.02. With Consent of Holders. The Company and the Trustee may amend or
supplement the Securities or the Indenture with the consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding. Subject to Section 7.04 and Section 7.06 hereof, the Holders of at least a
majority in aggregate principal amount of the Securities then outstanding may, without notice to the Holders of Securities, waive compliance in any instance by the Company with any provision of the Securities or the Indenture or waive any past
default under the Indenture and its consequences, except a default in the payment of any amount due, or in the obligation to deliver Common Stock, with respect to any Security or in respect of any provision which under the Indenture cannot be
modified or amended without the consent of the Holder of each Security affected. However, notwithstanding the foregoing but subject to Section 8.03 hereof, without the consent of the Holders of each Security then outstanding, an amendment,
supplement or waiver may not: 
 (a) change the stated maturity of the principal of or the payment date of any installment of
interest (including Additional Interest, if any) on or with respect to the Securities; 
 (b) reduce the principal amount of,
the Fundamental Change Repurchase Price of, or the Conversion Rate (except as may be provided in this First Supplemental Indenture) or rate of interest or Additional Interest on, any Security; 
 (c) reduce the amount of principal payable upon acceleration of the maturity of any Security; 
 (d) change the currency in which payment of principal of, the Fundamental Change Repurchase Price of, or interest with respect to, the
Securities is payable; 
 (e) impair the right to institute suit for the enforcement of any payment on, or with respect to, the
Securities; 
 (f) modify the provisions with respect to the repurchase rights of Holders as provided in Article 3 hereof in a
manner adverse to Holders; 
 (g) adversely affect the right of Holders to convert Securities in any material respect, other
than as may be provided in the Indenture; 
  

 37 

 (h) reduce the percentage in principal amount of the outstanding Securities, the consent of
whose Holders is required to take specific actions including, but not limited to, the waiver of past defaults or the modification or amendment of the Indenture; or 
 (i) alter the manner of calculation or rate of accrual of interest or Additional Interest or Fundamental Change Repurchase Price or the Conversion Rate (except as permitted under Section 8.01(g)
hereof) on any Security or extend the time for payment of any such amount. 
 It shall not be necessary for the consent of the
Holders under this Section 8.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof. 
 After an amendment, supplement or waiver under Section 8.01 above or this Section 8.02 becomes effective, the Company shall mail
to the Holders affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such
amendment, supplement or waiver. 
 The provisions of Sections Section 8.01 and Section 8.02 of this First
Supplemental Indenture shall supersede and replace the provisions, respectively, of Sections 9.01 and 9.02 of the Base Indenture for purposes of the Securities. 
 Section 8.03. 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 any amendment, supplement or waiver becomes effective, it shall bind every applicable Securityholder. 
 Section 8.04. 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 about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. 
 ARTICLE 9 
 SATISFACTION AND
DISCHARGE 
 Section 9.01. Satisfaction and Discharge of the Indenture. Article 4 of the Base
Indenture shall not apply to the Securities. The Indenture shall cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Securities herein expressly provided for), and the Trustee, on demand of and
at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of the Indenture, when: 
 (a) either: 
  

 38 

 (i) all Securities theretofore authenticated and delivered (other than Securities that have
been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.06 hereof) have been delivered to the Trustee for cancellation; or 
 (ii) all such Securities not theretofore delivered to the Trustee for cancellation have become due and payable whether at the Maturity Date, upon acceleration, with respect to any Fundamental Change
Repurchase Date, upon conversion or otherwise and the Company deposits with the Paying Agent or Conversion Agent, as the case may be, Cash, Common Stock or other consideration, or a combination thereof, as applicable hereunder, sufficient to pay on
such date all amounts due and owing on all outstanding Securities on such date; 
 (b) the Company has paid or caused to be paid
all other sums payable hereunder by the Company; and 
 (c) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of the Indenture have been complied with. 
 Notwithstanding the satisfaction and discharge of the Indenture, the obligations of the Company to the Trustee under Section 6.7 of the
Base Indenture and, if money shall have been deposited with the Trustee pursuant to Section 9.01(a)(ii) above, the obligations of the Trustee under Section 9.02 below shall survive such satisfaction and discharge. 
 Notwithstanding anything herein to the contrary, Article 4, Article 9, Section 2.04, Section 2.05, Section 2.06,
Section 2.07, Section 5.01, Section 5.04 and Section 5.05 of this First Supplemental Indenture and Section 6.7 and Section 10.2 of the Base Indenture shall survive any discharge of the Indenture until such time as there
are no Securities outstanding. 
 Section 9.02. Repayment to the Company. This Section 9.02 shall supersede and
replace the provisions of the last paragraph of Section 10.3 of the Base Indenture for purposes of the Securities. The Trustee, the Paying Agent and the Conversion Agent shall return to the Company upon written request any Cash or securities
held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the Cash or securities must look to the
Company for payment as general creditors unless an applicable abandoned property law designates another person and the Trustee, the Paying Agent and the Conversion Agent shall have no further liability to the Securityholders with respect to such
Cash or securities for that period commencing after the return thereof. 
 ARTICLE 10 
 MISCELLANEOUS 
 Section 10.01. Governing Law. THIS FIRST SUPPLEMENTAL INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

Section 10.02. No Sinking Fund and No Defeasance. The provisions of Article 13 and Article 14 of the Base Indenture shall not
apply to any Securities issued under this First Supplemental Indenture. 
  

 39 

 Section 10.03. No Adverse Interpretation of Other Agreements. This First
Supplemental Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company other than the Base Indenture for purposes of the Securities. Any such indenture, loan or debt agreement may
not be used to interpret this First Supplemental Indenture. 
 Section 10.04. Multiple Counterparts. The parties may
sign multiple counterparts of this First Supplemental Indenture. Each signed counterpart shall be deemed an original, but all of them together shall represent the same agreement. 
 Section 10.05. Calculations in Respect of the Securities. The Company or its agents shall make all calculations under the
Indenture and the Securities in good faith, and the Trustee shall have no duties in respect of such calculations. In the absence of manifest error, such calculations shall be final and binding on all Holders. The Company or its agents shall provide
a copy of such calculations to the Trustee as required hereunder, and the Trustee shall be entitled to rely on the accuracy of any such calculation without independent verification. 
 [SIGNATURE PAGE FOLLOWS] 
  

 40 

 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written. 
  

							
	AIRTRAN HOLDINGS, INC.
			
	By:	 		 	
		 		 	Name:	 	Richard P. Magurno
		 		 	Title:	 	Senior Vice President, General Counsel and Secretary
	
	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Trustee,
				
	By:	 		 		 	
		 		 	Name:	 	Susan Freedman
		 		 	Title:	 	Vice President

 EXHIBIT A 
 [FORM OF FACE OF SECURITY] 
 [Global Security
Legend] 
 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 THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS 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. 
 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. 

 AIRTRAN HOLDINGS, INC. 
 5.25% Convertible Senior Notes due November 1, 2016 
  

									
	No.     	  	CUSIP:	  	00949P AD0	  	U.S. $            	  	
		  	ISIN:	  	US00949PAD06	  		  	

 AirTran Holdings, Inc., a Nevada corporation (the “Company,” which
term shall include any successor Person under the Indenture (as hereinafter defined) referred to on the attached “Terms of the Notes”), promises to pay to Cede & Co., or registered assigns, the principal amount of
             Dollars ($             ), subject to modification as set forth on the attached Schedule of Exchanges
of Securities, on November 1, 2016, and to pay interest thereon, in arrears, from and including the most recent interest payment date to which interest has been paid or duly provided for (or if no interest has been paid, from, and including
October 14, 2009), to, but excluding, May 1 and November 1 of each year (each, an “Interest Payment Date”), beginning on May 1, 2010, at a rate of 5.25% per annum until the principal hereof is paid or made
available for payment at November 1, 2016, or upon acceleration, or until such date on which this security is converted or purchased as provided herein. The interest so payable and punctually paid or duly provided for on any Interest Payment
Date shall, as provided in the Indenture, be paid to the Person in whose name this Security is registered at the close of business on the regular record date for such interest, which shall be the April 15 or October 15 (whether or not a
Business Day), as the case may be, immediately preceding the relevant Interest Payment Date (each, an “Interest Payment Record Date”); provided, however , that interest shall be paid to a Person other than the Person
in whose name this Security is registered at the Close of Business on the Interest Payment Record Date as provided herein. 
 Reference is hereby made to the further provisions of this Security set forth on the attached “Terms of the Notes,” which further provisions shall for all purposes have the same effect as if set forth at this place. 
 [Signature page follows] 
  

 2 

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

Dated: 
  

					
	AIRTRAN HOLDINGS, INC.,
			
	By:	 		 	
		 		 	Name:
		 		 	Title:

  

 3 

 Trustee’s Certificate of Authentication: This is one of the Securities referred to in the
within-mentioned Indenture. 
  

					
	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Trustee,
			
	By:	 		 	
		 		 	Name:
		 		 	Title:

  

 4 

 [FORM OF REVERSE SIDE OF SECURITY] 
 AIRTRAN HOLDINGS, INC. 
 5.25% CONVERTIBLE SENIOR NOTES DUE NOVEMBER 1, 2016 
 This Security is one of a duly authorized issue of 5.25%
Convertible Senior Notes due November 1, 2016 (the “Securities”) of the Company issued under an Indenture, dated as of October 14, 2009 (the “Base Indenture”) as supplemented by the First Supplemental
Indenture dated as of October 14, 2009 (the “First Supplemental Indenture” and, the Base Indenture as supplemented by the First Supplemental Indenture, the “Indenture”), each between the Company and U.S. Bank
National Association, as trustee (the “Trustee”). The terms of the Security include those stated in the Indenture, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the
“TIA”), and those set forth in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of all such terms. To the extent permitted by applicable law, if any
provision of this Security conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. Capitalized terms used but not defined herein have the meanings assigned to them in the Indenture
unless otherwise indicated. 
  

	1.	Interest. 

 The Company,
promises to pay interest (including any Additional Interest) on the principal amount of this Security at the rate per annum shown above. The Company will pay interest (including any Additional Interest), payable semi-annually in arrears, on
May 1 and November 1 of each year, with the first payment to be made on May 1, 2010, subject to limited exceptions if the Securities are converted prior to the relevant Interest Payment Date. Interest will be paid to the Holders of
record on the Interest Payment Record Date. 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, October 14, 2009, 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. 
  

	2.	Method of Payment. 

 Payment of the principal of, and interest (including any Additional Interest), and the Fundamental Change Repurchase Price on, the Securities shall be made at the office of the Paying Agent in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts. The Holder must surrender this Security to a Paying Agent to collect payment of principal. Payment of interest on Certificated Securities shall be made by
check mailed to the address of the Person entitled thereto as such address appears in the Register; provided, however, that Holders with Securities in an aggregate principal amount in excess of $2.0 million shall be paid, in accordance
with Section 5.01 of the First Supplemental Indenture, by wire transfer of immediately available funds. Notwithstanding the foregoing, so long as the Securities are registered in the name of a Depositary or its nominee, all payments with
respect to the Securities shall be made by wire transfer of immediately available funds to the account of the Depositary or its nominee. 
  

	3.	Paying Agent, Registrar, Conversion Agent. 

 Initially, the Trustee shall act as Paying Agent, Registrar and Conversion Agent. The Company or any Affiliate of the Company may act as Paying Agent, Registrar or Conversion Agent, subject to the terms
of the Indenture. 
  

 5 

	4.	Indenture. 

 The
Securities are general unsecured obligations of the Company initially limited to $115,000,000. The Company may, without consent of the Securityholders, issue Additional Securities under the Indenture with the same terms as the Securities in an
unlimited aggregate principal amount. The Indenture does not limit other debt of the Company, secured or unsecured. 
  

	5.	Purchase by the Company Upon a Fundamental Change. 

 Subject to the terms and conditions set forth in Article 3 of the First Supplemental Indenture, each Holder shall have the option to require the Company to repurchase its Securities upon the occurrence of
a Fundamental Change. 
  

	6.	Conversion. 

 Subject to
the terms and conditions set forth in Article 4 of the First Supplemental Indenture, a Holder of a Security may convert the principal amount of such Security into shares of Common Stock at any time prior to the Close of Business on the Business Day
immediately preceding the Maturity Date, at the Conversion Rate in effect on the Conversion Date; provided, however, that, if such Security is submitted or presented for repurchase pursuant to Article 3 of the First Supplemental
Indenture, such conversion right shall terminate at the Close of Business on the Fundamental Change Repurchase Date for such Security (unless the Company shall default in making the Fundamental Change Repurchase Price payment when due, in which case
the conversion right shall terminate at the Close of Business on the date such default is cured and such Security is repurchased). 
  

	7.	Denominations; Transfer; Exchange. 

 The Securities are in registered form, without coupons, in denominations of $1,000 and integral multiples of $1,000. A Holder may register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain taxes, assessments or other governmental charges that may be imposed in relation thereto by law or
permitted by the Indenture. 
  

	8.	Persons Deemed Owners. 

 The registered Holder of a Security may be treated as the owner of such Security for all purposes. 
  

	9.	Unclaimed Money or Securities. 

 The Trustee and the Paying Agent shall return to the Company upon written request any Cash or securities held by them for the payment of any amount with respect to the Securities that remains unclaimed for two years, subject to applicable
unclaimed property law. After return to the Company, Holders entitled to the Cash or securities must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person. 
  

	10.	Amendment, Supplement and Waiver. 

 Subject to certain exceptions, the Securities or the Indenture may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the Securities then

  

 6 

 
outstanding, and, subject to certain exceptions, an existing or future Default or Event of Default with respect to the Securities and its consequences or compliance with any provision of the
Securities or the Indenture may be waived with the consent of the Holders of at least a majority in aggregate principal amount of the Securities then outstanding. Subject to the terms of the Indenture, without the consent of or notice to any Holder,
the Company and the Trustee may amend or supplement the Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency or make any change that does not adversely affect in any material respect the interests under the
Indenture of any Holder. 
  

	11.	Defaults and Remedies. 

 Subject to certain exceptions set forth in the First Supplemental Indenture, if an Event of Default (excluding an Event of Default specified in Sections 7.01(f) or 7.01(g) of the First Supplemental Indenture with respect to 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 accrued and unpaid interest (including any Additional Interest) on, all Securities shall be due and payable immediately. If an Event of Default specified in Sections 7.01(f) or 7.01(g) of
the First Supplemental Indenture with respect to 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. 
  

	12.	Trustee Dealings with the Company. 

 Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and
collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not the Trustee. 
  

	13.	No Recourse Against Others. 

 No recourse under or upon any obligation, covenant or agreement of the Company contained in the Indenture, or in this Security, or because of any indebtedness evidenced thereby or hereby, shall be had against any incorporator, as such, or
against any past, present or future employee, stockholder, officer or director, as such, of the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by
the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders and as part of the consideration for the issuance of
the Securities. 
  

	14.	Authentication. 

 This
Security shall not be valid until the Trustee or an authenticating agent manually signs the certificate of authentication on the other side of this Security. 
  

	15.	Abbreviations. 

 Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian) and UGMA (= Uniform Gifts to Minors Act). 
  

 7 

	16.	Indenture to Control; Governing Law. 

 TO THE EXTENT PERMITTED BY APPLICABLE LAW, IF ANY PROVISION OF THIS SECURITY CONFLICTS WITH THE EXPRESS PROVISIONS OF THE INDENTURE, THE PROVISIONS OF THE INDENTURE SHALL GOVERN AND BE CONTROLLING. THIS
SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  

	17	Copies of Indenture. 

 The Company shall furnish to any Holder, upon written or oral request and without charge, a copy of the Indenture. Requests may be made to: AirTran Holdings, Inc., 9955 Airtran Boulevard, Orlando, Florida 32827, Telephone No.: 407-318-5600,
Attention: Investor Relations. 
  

 8 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to:

  
 (Insert assignee’s social security or tax I.D.
number)               
  
  

	
	 (Print or type assignee’s name, address and zip code) and irrevocably appoint

	  
	 agent to transfer this Security on the books of the Company. The agent may substitute another to act for him or
her.

  

					
	Date:	 		 	Your Signature:
			
		 		 	(Sign exactly as your name appears on the other side of this Security)
			
	* Signature guaranteed by:	 		 	
			
	By:	 		 	

  

	*	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee. 

  

 9 

 CONVERSION NOTICE 
 To convert this Security into Common Stock of the Company, check the box:   ̈ 
 To convert only part of this Security, state the principal amount to be converted (must be $1,000 or a integral multiple of $1,000): $ 
 If you want the stock certificate made out in another person’s name, fill in the form below: 
  
 (Insert assignee’s social security or tax I.D. number) 
  
 (Print or type assignee’s name, address and zip code) 

 

					
	Date:	 		 	Your Signature:
			
		 		 	(Sign exactly as your name appears on the other side of this Security)
			
	* Signature guaranteed by:	 		 	
			
	By:	 		 	

  

	*	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee. 

  

 10 

 REPURCHASE EXERCISE NOTICE 
 UPON A FUNDAMENTAL CHANGE 
 To: AirTran Holdings, Inc. 
 The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a notice from AirTran Holdings, Inc. (the
“Company”) as to the occurrence of a Fundamental Change with respect to the Company. The undersigned registered owner of this Security hereby requests and instructs the Company to repurchase the entire principal amount of this
Security, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Security at the Fundamental Change Repurchase Price, together with accrued
interest to, but excluding, the Repurchase Date, to the registered Holder hereof. This request and instruction is irrevocable except as provided in the Indenture. 
 Dated: 
  

			
		 	Signature(s)
	
	Signature(s) must be guaranteed by a qualified guarantor institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the
Securities Exchange Act of 1934.
		
		 	Signature Guaranty

 Principal amount to be repurchased 
 (in an integral multiple of $1,000, if less than all): 
 NOTICE: The signature to the foregoing Election must correspond to the name as written upon the face of the Security in every particular, without alteration or any change whatsoever. 
  

 11 

 SCHEDULE OF EXCHANGES OF SECURITIES 
 The following exchanges, repurchases or conversions of a part of this Global Security have been made: 
  

									
	 Date of
 Exchange,
 Repurchase or
 Conversion
	 	 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
 Securities
 Custodian

  

 12 

 EXHIBIT B 
 The following table sets forth the increase in the Conversion Rate, expressed as a number of additional shares of Common Stock to be
received per $1,000 principal amount of Securities, upon a conversion in connection with a Make-Whole Fundamental Change that occurs in the corresponding period. 
 Stock Price 
  

																													
	 Adjustment Date
	  	$5.08	  	$5.50	  	$6.00	  	$7.00	  	$8.00	  	$9.00	  	$10.00	  	$12.50	  	$15.00	  	$20.00	  	$25.00	  	$30.00	  	$40.00	  	$50.00
	 October 14, 2009
	  	32.8084	  	30.3030	  	27.7778	  	23.8095	  	20.8333	  	18.5185	  	16.6667	  	13.3333	  	11.0067	  	7.5821	  	5.5832	  	4.2809	  	2.7070	  	1.8124
	 November 1, 2010
	  	32.8084	  	30.3030	  	27.7778	  	23.8095	  	20.8333	  	18.5185	  	16.6667	  	12.6716	  	10.0794	  	6.9474	  	5.1206	  	3.9294	  	2.4844	  	1.6606
	 November 1, 2011
	  	32.8084	  	30.3030	  	27.7778	  	23.8095	  	20.2306	  	17.3637	  	15.1751	  	11.4578	  	9.1065	  	6.2870	  	4.6453	  	3.5718	  	2.2645	  	1.5141
	 November 1, 2012
	  	32.8084	  	30.3030	  	27.5208	  	21.8670	  	18.0732	  	15.3701	  	13.3571	  	10.0189	  	7.9535	  	5.5045	  	4.0834	  	3.1508	  	2.0071	  	1.3459
	 November 1, 2013
	  	32.8084	  	29.2860	  	25.0377	  	19.2132	  	15.5034	  	12.9808	  	11.1654	  	8.2865	  	6.5684	  	4.5665	  	3.4067	  	2.6429	  	1.6993	  	1.1460
	 November 1, 2014
	  	32.8084	  	26.7617	  	21.9578	  	15.7535	  	12.1301	  	9.8587	  	8.3323	  	6.0919	  	4.8299	  	3.3842	  	2.5440	  	1.9874	  	1.2941	  	0.8821
	 November 1, 2015
	  	32.8084	  	23.4980	  	17.5471	  	10.6508	  	7.3001	  	5.5651	  	4.5751	  	3.3320	  	2.6716	  	1.8977	  	1.4382	  	1.1319	  	0.7489	  	0.5194
	 November 1, 2016
	  	32.8084	  	17.7762	  	2.6247	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000ICP Solar Technologies, Inc.: Exhibit 4.2 - Prepared by TNT Filings Inc.

Exhibit 4.2

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE"ACT") OR APPLICABLE
STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY
SATISFACTORY TO COUNSEL TO THE BORROWER THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. 

Original Issue Date: ________________ 
Initial
Conversion Price (subject to adjustment herein): $0.10 

SENIOR SECURED CONVERTIBLE GRID NOTE 
DUE OCTOBER 1, 2010

FOR VALUE RECEIVED, ICP Solar Technologies, Inc., a
Nevada corporation (hereinafter called the "Borrower" or
“Company”), hereby promises to pay to the order of
________________________________or its registered assigns (the "Holder")
the sum of up to ________________________________, or so much thereof as shall
constitute the Principal Amount (as defined below), calculated as described
below, based upon the amount advanced (each an “Advance”) by the Holder to the
Company hereunder and not repaid by October 1, 2010 (the "Maturity
Date"), or such earlier date as this Grid Note is required or permitted to
be repaid as provided hereunder, in accordance with the provisions hereof. This
Grid Note (including all Grid Notes issued in exchange, transfer or replacement
hereof, this "Grid Note") is one of an issue of Grid Notes issued
pursuant to the Line of Credit Agreement (as defined in Section 1 below) on the
Closing Date (collectively, the "Grid Notes" and such other Grid Notes,
the "Other Grid Notes").

Except as otherwise expressly provided herein, including but
not limited to Section 7(c) below, this Grid Note may not be prepaid by the
Borrower. All payments due hereunder (to the extent not converted into Common
Stock, par value $0.00001 per share, of the Borrower (the "Common
Stock") in accordance with the terms hereof) shall be made in lawful money
of the United States of America. All payments shall be made at the address of
the Holder as set forth in the Line of Credit Agreement (as defined in Section 1
below) or at such address as the Holder shall hereafter give to the Borrower by
written notice made in accordance with the provisions of this Grid Note.
Whenever any amount expressed to be due by the terms of this Grid Note is due on
any day which is not a Business Day (as defined below), the same shall instead
be due on the next succeeding day which is a Business Day.

This Note evidences loans made by Holder to Borrower from time
to time, subject to, and as provided in the Line of Credit Agreement. The unpaid
principal balance of this Note at any time shall be the difference of (i) the total
amount advanced by Holder to Borrower, divided by 0.9009 (the “Original Issuance
Discount”), less (ii) the sum of (a) the total amount of principal payments made
hereon by Borrower and (b) the total amounts of this Grid Note that have been
converted into Common Stock (such difference is defined as the “Principal
Amount”). The date and amount of each Advance and each payment on account of
principal thereof may be endorsed by Holder on the grid attached to and made a
part of this Note, and when so endorsed shall represent evidence thereof binding
upon Borrower in the absence of manifest error. Any failure by Holder to so
endorse shall in no way mitigate or discharge the obligation of Borrower to
repay any loans actually made. Borrower may prepay this Note in whole or in part
at any time with all accrued interest to the date of prepayment.

1 

Advances hereunder may be made, at the option of the Holder,
subject to the limitations as to time and amount set forth in the Line of Credit
Agreement. Any such Advance so made shall be conclusively presumed to have been
made to or for the benefit of Borrower, and Borrower shall be liable in respect
thereof when any such Advance is made in accordance with any such request or
direction, or when deposited to any account of Borrower. Upon each Advance,
Borrower shall deliver to Holder a certificate signed by its CEO and CFO
representing to Holder that (i) all of the representations and warranties of
Borrower set forth in this Note and in the Line of Credit Agreement are true and
correct as of the date of such request as if made on and as of such date and
(ii) on such date Borrower is not in breach of any of its covenants to Holder
set forth in this Note, the Line of Credit Agreement, the Security Agreement or
in any other document or instrument of Borrower to Holder and no Event of
Default has occurred. 

Except as expressly otherwise provided herein with respect to
prepayments, all payments on this Note shall be applied to the payment of
accrued interest and accrued reimbursement obligations with respect to Holder’s
attorneys’ fees and expenses before being applied to the payment of principal.
In the event that any other Required Cash Payment is due at any time that Holder
receives a payment from Borrower on account of this Note or any such other
Obligations, Holder may apply such payment to amounts due under this Note or any
such other Required Cash Payments in such manner as Holder, in its discretion,
elects, regardless of any instructions from Borrower to the contrary. The
obligations of Borrower to Holder evidenced by this Note are secured by that
certain Security Agreement (as defined in the Line of Credit Agreement) dated as
of the date hereof. 

This Grid Note is subject to the following additional
provisions: 

Section 1. Certain Definitions.
Capitalized terms used and not otherwise defined herein that are defined in that
certain Line of Credit Agreement, of date even herewith, pursuant to which the
Grid Note was originally issued (the "Line of Credit Agreement" or the
“Purchase Agreement”), shall have the meanings given such terms in the
Line of Credit Agreement. For the purposes hereof, the following terms shall
have the following meanings: 

2 

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

“1934 Act” means the Securities Exchange Act of 1934, as
amended. 

“Bankruptcy Event” means any of the following events:
(a) the Company or any Significant Subsidiary (as such term is defined in Rule
1-02(w) of Regulation S-X) thereof commences a case or other proceeding under
any bankruptcy, reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction relating to the Company or any Significant Subsidiary thereof; (b)
there is commenced against the Company or any Significant Subsidiary thereof any
such case or proceeding that is not dismissed within sixty (60) days after
commencement; (c) the Company or any Significant Subsidiary thereof is
adjudicated insolvent or bankrupt or any order of relief or other order
approving any such case or proceeding is entered; (d) the Company or any
Significant Subsidiary thereof suffers any appointment of any custodian or the
like for it or any substantial part of its property that is not discharged or
stayed within sixty (60) calendar days after such appointment; (e) the Company
or any Significant Subsidiary thereof makes a general assignment for the benefit
of creditors; (f) the Company or any Significant Subsidiary thereof calls a
meeting of its creditors with a view to arranging a composition, adjustment or
restructuring of its debts; or (g) the Company or any Significant Subsidiary
thereof, by any act or failure to act, expressly indicates its consent to,
approval of or acquiescence in any of the foregoing or takes any corporate or
other action for the purpose of effecting any of the foregoing. 

The "Black-Scholes" value of a warrant or other Option
shall be determined by use of the Black Scholes Option Pricing Model reflecting
(A) a risk-free interest rate corresponding to the U.S. Treasury rate for a
period equal to the remaining term of the Warrant or other Option as of such
date of request and (B) an expected volatility equal to the greater of 100% and
the 100 day volatility obtained from the HVT function on Bloomberg.

“Bloomberg” shall mean Bloomberg L.P. 

"Business Day" shall mean any day other than a Saturday,
Sunday or a day on which commercial banks in the City of New York, New York are
authorized or required by law or executive order to remain closed.

“Closing Date” means the Trading Day when (i) all of the
Holder’s Transaction Documents have been executed and delivered by the
applicable parties thereto, (ii) all conditions precedent to (a) each Holder’s
obligations to pay the Subscription Amount and (b) the Company’s obligations to
deliver the Grid Notes, and (iii) Holder shall have delivered the purchase price
for the Grid Note to the Company in accordance with the Line of Credit
Agreement. 

3 

"Closing Bid Price," as of any date, means the last bid
price of the Common Stock on the Principal Market as reported by Bloomberg or,
if the Principal Market is not the principal trading market for such security,
the last bid price of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg,
or if no last bid price of such security is available on the Principal Market
for such security or in any of the foregoing manners, the average of the bid
prices of any market makers for such security that are listed in the "pink
sheets" by the National Quotation Bureau, Inc. If the Closing Bid Price cannot
be calculated for such security on such date in the manner provided above, the
Closing Bid Price shall be the fair market value as mutually determined by the
Company and the Holder. 

"Closing Price," as of any date, means the last sale
price of the Common Stock on the Principal Market as reported by Bloomberg or,
if the Principal Market is not the principal trading market for such security,
the last sale price of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg,
or if no last sale price of such security is available on a securities exchange
or trading market where such security is listed or traded as reported by
Bloomberg or in any of the foregoing manners, the average of the bid prices of
any market makers for such security that are listed in the "pink sheets" by the
National Quotation Bureau, Inc. If the Closing Price cannot be calculated for
such security on such date in the manner provided above, the Closing Price shall
be the fair market value as mutually determined by the Company and the Holder.

“Commission” means the Securities and Exchange
Commission. 

“Common Stock Equivalents” shall have the meaning
ascribed to it in the Line of Credit Agreement. 

"Conversion Amount" shall have the meaning set forth in
Section 3(a)(iv) below. 

"Convertible Securities" means any stock or securities
(other than Options) directly or indirectly convertible into or exercisable or
exchangeable for Common Stock. 

"Grid Notes" shall be deemed to refer to this Grid Note,
as originally executed, or if later amended or supplemented, then as so amended
or supplemented, all other convertible notes issued pursuant to the Line of
Credit Agreement and all convertible debentures issued in replacement hereof or
thereof or otherwise with respect hereto or thereto.

“Default Conversion Sum” shall have the meaning set
forth in Section 11(a) below. 

"Eligible Market" shall have the meaning ascribed to it
in the Line of Credit Agreement by and between the Company and the Holder. 

4 

“Event of Default” shall have the meaning set forth in
Section 10. 

“Event of Failure” shall mean the occurrence of any
event(s) which trigger the accrual of Liquidated Damages. 

 “Holders” shall mean the Holder, and the holders
of Other Grid Notes issued pursuant to the Line of Credit Agreement. 

"Indebtedness" shall have the meaning ascribed to it in
the Line of Credit Agreement.

“Issuable Shares” shall heave the meaning set forth in
Section 3(a)(iii) below. 

“Late Payment Fees” shall have the meaning set forth in
Section 13 below. 

“Late Share Delivery Liquidated Damages” shall have the
meaning set forth in Section 3(d)(iv) below. 

“Legend Removal Failure Liquidated Damages” shall have
the meaning ascribed to it in the Line of Credit Agreement. 

“Liquidated Damages” means any liquidated damages due
hereunder, or under the other Transaction Documents, including but not limited
to the Late Share Delivery Liquidated Damages, the Legend Removal Failure
Liquidated Damages, and the Late Payment Fees. 

"Market Price," as of any date, means the Volume
Weighted Average Price (as defined herein) of the Common Stock during the five
(5) consecutive Trading Day period immediately preceding the date in question.

“Major Transaction Redemption Premium” shall mean 125%.

“Mandatory Redemption Premium” shall mean 125%.

“Ongoing Share Reservation Requirement” shall have the
meaning ascribed to it in the Line of Credit Agreement. 

"Options" means any rights, warrants or options to
subscribe for or purchase Common Stock or Convertible Securities. 

“Original Issue Date” shall mean the date of the first
issuance of any Grid Note regardless of the number of transfers of any
particular Grid Note. 

5 

"Parent Entity" of a Person means an entity that,
directly or indirectly, controls the applicable Person and whose common stock or
equivalent equity security is quoted or listed on an Eligible Market, or, if
there is more than one such Person or Parent Entity, the Person or Parent Entity
with the largest public market capitalization as of the date of consummation of
the Fundamental Transaction. 

“Permitted Indebtedness” means (a) Indebtedness
evidenced by the Grid Notes or issuances to the Holders as contemplated by the
Transaction Documents; (b) the Indebtedness existing on the Original Issue Date
as set forth on Schedule 3(cc) attached to the Line of Credit Agreement,
provided that the principal amount thereof is not increased or the terms thereof
are not otherwise amended or modified after the Closing Date; (c) Indebtedness
to trade creditors incurred in the ordinary course of business and (d)
indebtedness that (i) is expressly junior and subordinated to the Grid Notes
pursuant to a written subordination agreement with the Buyers that is acceptable
to each Buyer in its sole and absolute discretion, and (ii) matures at a date
later than the Maturity Date, (iii) has no prepayments or amortization payments
prior to the maturity of the Grid Notes, and (iv) has a rate of interest no
greater than the interest rate of the Grid Notes. For purposes of clarification,
it is expressly agreed and understood that the classification of Indebtedness as
“Permitted Indebtedness” does not cause such Indebtedness to be exempted
from the Subsequent Issuance Adjustments (as defined in Section 6 below), the
prohibition against the issuance of Variable Equity Securities (as defined in
Section 4(d)(ii) of the Line of Credit Agreement), the Buyer’s Rights of
Participation (as defined in Section 4(d)(iii) of the Line of Credit Agreement)
or from any other provisions of the Transaction Documents, except that Permitted
Indebtedness does constitute an exception to the Indebtedness Negative Covenant
specified in Section 9(d) hereof. 

“Permitted Liens” shall have the meaning ascribed to it
in the Line of Credit Agreement. 

"Person" means an individual, a limited liability
company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization, any other entity and a government or any department
or agency thereof. 

“Principal Market” shall have the meaning ascribed to it
in the Line of Credit Agreement by and between the Company and the Holder. 

“Redemption” shall mean any redemption of the Grid Note
hereunder, including but not limited to a Redemption Upon Major Transaction, a
Mandatory Redemption, a Capital Raising Redemption and an Automatic Redemption.

“Redemption Amount” shall mean any amount that is
payable to the Holder pursuant to a Redemption. 

6 

“Redemption Date” shall mean the date of any Redemption
of the Grid Note hereunder. 

“Required Cash Payment” shall have the meaning set forth
in Section 10(a) below. 

“Required Holders” shall mean Holders holding greater
than seventy five percent (75%) of the then outstanding principal amount of Grid
Notes. 

“Shares” shall mean the shares of Common Stock issuable
upon Conversion of the Grid Notes.

“Subscription Amount” shall mean, as to each Buyer, the
amount to be paid for the Grid Note purchased pursuant to the Line of Credit
Agreement as specified in Section 10 of the Line of Credit Agreement, in United
States Dollars and in immediately available funds. 

“Subsidiaries” shall have the meaning ascribed to it in
the Line of Credit Agreement. 

"Trading Day" shall mean any day on which the Common
Sock is traded for any period on the Principal Market, or on the principal
securities exchange or other securities market on which the Common Stock is then
being traded.

“Transaction Documents” shall have the meaning ascribed
to it in the Securities Purchase Agreement. 

“Variable Equity Securities” shall have the meaning
ascribed to it in the Line of Credit Agreement. 

The "Volume Weighted Average Price" or “VWAP” for
any security as of any date means the volume weighted average sale price on the
Principal Market, as reported by, or as calculated based upon data reported by,
Bloomberg or an equivalent, reliable reporting service mutually acceptable to
and hereafter designated by holders of a majority in interest of the Grid Notes
and the Company or, if no volume weighted average sale price is reported for
such security, then the last closing trade price of such security as reported by
Bloomberg, or, if no last closing trade price is reported for such security by
Bloomberg, the average of the closing trade prices of any market makers for such
security that are listed in the "pink sheets" by the National Quotation Bureau,
Inc. If the Volume Weighted Average Price is to be determined over a period of
more than one Trading Day, then “Volume Weighted Average Price” for the
period shall mean the volume weighted average of the daily Volume Weighted
Average Prices, determined as set forth above, for each Business Day during the
period. If the volume weighted average price cannot be calculated for such
security on such date in the manner provided above, the volume weighted average
price shall be the fair market value as mutually determined by the Company and the holders of a majority in interest of the
Grid Notes being converted for which the calculation of the volume weighted
average price is required in order to determine the Conversion Price of such
Grid Notes.

7 

Section 2. Interest. This Grid Note shall
be issued with the Original Issue Discount, but shall not accrue any interest on
the Principal Amount after issuance, except for Late Payment Fees or interest
payable hereunder following a default.

Furthermore, upon the occurrence of an Event of Default (as
defined in Section 10 hereof) which, if curable, has remained uncured for ten
(10) Trading Days, the Company will pay interest to the Holder, payable on
demand, on the outstanding principal balance of the Grid Note from the date of
the Event of Default until such Event of Default is cured at the rate of the
lesser of eighteen percent (18%) and the maximum applicable legal rate per
annum.

Section 3. Conversion.

(a) Conversion Right. 

(i) Conversion Timing and Amount. Subject to the
limitations on Conversion contained herein, the record Holder of this Grid Note
shall have the right (a “Conversion Right”) from time to time, and at any
time on or after the Original Issue Date hereof to convert any of all of the
Grid Notes (plus any accrued and unpaid Liquidated Damages and other Required
Cash Payments) into fully paid and non-assessable shares of Common Stock, or any
shares of capital stock or other securities of the Company into which such
Common Stock shall hereafter be changed or reclassified, at the Conversion Price
(as defined in Section 3(b) below, subject to adjustment as provided herein)
determined as provided herein (a "Conversion"). The Conversion Rights set
forth in this Section 3 shall remain in full force and effect immediately from
the Original Issue Date until the Grid Note is paid in full regardless of the
occurrence of an Event of Default. 

(ii) Limitation On Conversion. Notwithstanding
the above, in no event shall the Holder be entitled to convert any portion of
this Grid Note in excess of that portion of this Grid Note upon Conversion of
which the sum of (1) the number of shares of Common Stock beneficially owned by
the Holder and any applicable affiliates (other than shares of Common Stock
which may be deemed beneficially owned through the ownership of the unconverted
portion of the Grid Note or the unexercised or unconverted portion of any other
security of the Company subject to a limitation on Conversion or exercise
analogous to the limitations contained herein)(the “Beneficially Owned
Shares”) and (2) the number of shares of Common Stock issuable upon the
Conversion of the portion of the Grid Note with respect to which the
determination of this proviso is being made would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% (the “Maximum
Percentage”) of the number of shares of the Common Stock outstanding immediately after giving effect to
the issuance of shares of Common Stock issuable upon conversion of this Grid
Note held by the Holder (the “Beneficial Ownership Limitation”). For
purposes of the proviso to the immediately preceding sentence, beneficial
ownership shall be determined by the Holder in accordance with Section 13(d) of
the Exchange Act and Regulations 13D-G thereunder, except as otherwise provided
in clause (1) of such proviso in the immediately preceding sentence, and
PROVIDED THAT the Beneficial Ownership Limitation shall be conclusively
satisfied if the applicable Notice of Conversion includes a signed
representation by the Holder, if requested by the Company, that the issuance of
the shares in such Notice of Conversion will not violate the Beneficial
Ownership Limitation, and the Company shall not be entitled to require
additional documentation of such satisfaction.

8 

The parties agree that, in the event that the Company receives
any tender offer or any offer to enter into a merger with another entity whereby
the Company shall not be the surviving entity (an “Offer”), or in the
event that Default Shares are being issued to the Holder pursuant to Section 11
hereof, then the Maximum Percentage shall be automatically increased immediately
after such Offer to read “9.99%” each place that “4.99%” occurs in the first
paragraph of this Section 3(a)(ii) above. Notwithstanding the above, Holder
shall retain the option to either exercise or not exercise its option(s) to
acquire Common Stock pursuant to the terms hereof after an Offer. The Beneficial
Ownership Limitation provisions of this Section 3(a)(ii) may be waived by such
Holder, at the election of such Holder, upon not less than sixty-one (61) days’
prior notice to the Company, to change the Maximum Percentage to any other
percentage not less than 4.99% and not in excess of 9.99% of the number of
shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock upon conversion of this Grid Note held by the
Holder and the provisions of this Section 3(a)(ii) shall continue to apply. Any
such increase or decrease to the Maximum Percentage will apply only to the
Holder and not to any other holder of Grid Notes. Upon such a change by a Holder
of the Beneficial Ownership Limitation from such 4.99% limitation to such 9.99%
limitation, the Beneficial Ownership Limitation may not be further waived by
such Holder, provided that, if an Event of Default occurs, thereafter the
Beneficial Ownership Limitation provisions of this Section 3(a)(ii) may be
waived by such Holder, at the election of such Holder, upon not less than 61
days’ prior notice to the Company, to change the Maximum Percentage to any other
percentage not less than 4.99% (and not limited to 9.99%) of the number of
shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock upon conversion of this Grid Note held by the
Holder and the provisions of this Section 3(a)(ii) shall continue to apply. The
provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 3(a)(ii) to
correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect
to such limitation.

9 

(iii) Maximum Exercise of Rights. In the event the
Holder notifies the Company that the exercise of the rights described in this
Section 3 or the issuance of Interim Conversion Shares (as defined in Section
6(d) hereof), Payment Shares (as defined in the Line of Credit Agreement) or
other shares of Common Stock issuable to the Holder under the terms of the
Transaction Documents (collectively, “Issuable Shares”) would result in
the issuance of an amount of Common Stock that would exceed the maximum amount
that may be issued to a Holder calculated in the manner described in Section
3(a)(ii) of this Agreement, then the issuance of such additional shares of
Common Stock to such Holder will be deferred in whole or in part until such time
as such Holder is able to beneficially own such Common Stock without exceeding
the maximum amount calculated in the manner described in Section 3(a)(ii) of
this Agreement. The determination of when such Common Stock may be issued
without violating the Beneficial Ownership Limitations shall be made by each
Holder as to only such Holder. 

(iv) Calculation of Conversion Amount. The number of
shares of Common Stock to be issued upon each Conversion of this Grid Note shall
be determined by dividing the Conversion Amount (as defined herein) by the
applicable Conversion Price. The term "Conversion Amount" means, with
respect to any Conversion of the Grid Note, the sum of (1) the Principal Amount
of the Grid Note to be converted in such Conversion, PLUS (2) at the Holder's
option, any Liquidated Damages and other Required Cash Payment owed to the
Holder.

(b) Conversion Price. The "Conversion Price"
shall initially equal ten cents ($0.10) (the
"Initial Conversion Price") (subject to adjustments pursuant to the terms
of this Grid Note and subject to equitable adjustments for stock splits, stock
dividends or rights offerings by the Company relating to the Company's
securities or the securities of any Subsidiary of the Company, combinations,
recapitalization, reclassifications, extraordinary distributions and similar
events).

(c) Reservation of Shares.

(i) Increase and Maintenance of Authorized and Reserved
Amount. The Company represents that the aggregate number of its
authorized shares of Common Stock is at least 100,000,000 shares and
covenants that it will initially reserve (the “Initial Share
Reservation”) from its authorized and unissued Common Stock a number of
shares of Common Stock equal to at least 150% of the initial principal
amount of this Grid Note, divided by the Conversion Price in effect on the
Original Issue Date of this Grid Note, free from preemptive rights, to provide
for the issuance of Common Stock upon the Conversion of this Grid Note.

Company further covenants that, beginning on the Original Issue
Date hereof, and continuing until all of the Grid Notes have been converted,
redeemed or otherwise satisfied in accordance with their terms, the Company will
reserve from its authorized and unissued Common Stock a sufficient number of
shares (the “Required Grid Note Reserve Amount”), free from preemptive rights,
equal to 150% of the number of shares as shall from time to time be necessary to
provide for the issuance of Common Stock upon the full Conversion of all of the
Grid Notes (without regard to any limitations on conversions). The Company shall
authorize and reserve such additional amounts (together with the Required Grid
Note Reserve Amount, collectively referred to as the “Required Reserve
Amount”) of shares from time to time as necessary to comply with the
Company's obligations to meet the Ongoing Share Reservation Requirements (as
defined in the Line of Credit Agreement) pursuant to Section 4(e) of the Line of
Credit Agreement. The Company represents that upon issuance, such Shares will be
duly and validly issued, fully paid and non-assessable. In addition, if the
Company shall issue any securities or make any change to its capital structure
which would change the number of shares of Common Stock into which the Grid Note
shall be convertible at the then applicable Conversion Price, or if the
Conversion Price shall be adjusted, the Company shall at the same time make
proper provision so that thereafter there shall be a sufficient number of shares
of Common Stock authorized and reserved, free from preemptive rights, for
Conversion of the outstanding portion of this Grid Note.

10 

(ii) Insufficient Authorized Shares. If at any
time while any of the Grid Notes remain outstanding the Company does not have a
sufficient number of authorized and unreserved shares of Common Stock to satisfy
its obligation to reserve for issuance upon conversion of the Grid Notes at
least a number of shares of Common Stock equal to the Required Reserve Amount
(an "Authorized Share Failure"), then the Company shall immediately take
all action necessary to increase the Company's authorized shares of Common Stock
to an amount sufficient to allow the Company to reserve the Required Reserve
Amount for the Grid Notes then outstanding. Without limiting the generality of
the foregoing sentence, as soon as practicable after the date of the occurrence
of an Authorized Share Failure, but in no event later than sixty (60)
days after the occurrence of such Authorized Share Failure, the Company
shall hold a meeting of its stockholders for the approval of an increase in the
number of authorized shares of Common Stock. In connection with such meeting,
the Company shall provide each stockholder with a proxy statement and shall use
its best efforts to solicit its stockholders' approval of such increase in
authorized shares of Common Stock and to cause its board of directors to
recommend to the stockholders that they approve such proposal. 

The Company shall use its best efforts to authorize and reserve
a sufficient number of shares of Common Stock as soon as practicable following
the earlier of (i) such time that the Holder notifies the Company or that the
Company otherwise becomes aware that there are or likely will be insufficient
authorized, reserved and unissued shares to allow full Conversion of the
outstanding amount of the Grid Note. The Company shall send notice to the Holder
of the authorization of additional shares of Common Stock, the date of such
authorization and the amount of the Holder's accrued Liquidated Damages. 

(iii) Allocations of Reserve Amount. The initial
number of shares of Common Stock authorized and reserved for conversions of the
Grid Notes and each increase in the number of shares so reserved (collectively,
the “Actual Reserved Amount”) shall be allocated pro rata among the
Holders (the "Reserved Share Allocation") of the Grid Notes based
on the aggregate number of Shares into which each Holder’s outstanding Grid
Note would be convertible (collectively, the “Fully Diluted Holdings”) as a
percentage of the aggregate Fully Diluted Holdings of all of the Holders. In the
event a holder shall sell or otherwise transfer such Holder’s Debenture, each
transferee shall immediately be allocated a pro rata portion of such
transferor’s Reserved Share Allocation. Any portion of the Reserved Share
Allocation which remains allocated to any Person or entity which does not hold
any Grid Notes shall be allocated to the remaining holders of Grid Notes, pro
rata based on the Holder’s Fully Diluted Holdings at the time of such
allocation.

11 

(d) Method of Conversion. 

(i) Mechanics of Conversion. Subject to Section 3(a) and
the other provisions of this Grid Note, this Grid Note may be converted into
Common Stock by the Holder in whole or in part at any time and from time to time
after the Original Issue Date, by (A) submitting to the Company a duly executed
notice of Conversion in the form attached hereto as Exhibit A ("Notice
of Conversion") by facsimile dispatched prior to Midnight, New York City
time (the "Conversion Notice Deadline") on the date specified therein as
the Conversion Date (as defined herein) (or by other means resulting in written
notice to the Company on the date specified therein as the Conversion Date) to
the office of the Company; which notice shall specify the principal amount of
this Grid Note to be converted (plus the dollar amount of any Liquidated
Damages, and other Required Cash Payments that the Holder elects to convert into
Common Stock), the applicable Conversion Price, and the number of shares of
Common Stock issuable upon such Conversion; and (B) subject to Section
3(d)(vii), surrendering the Grid Note at the principal office of the Company.

(ii) Conversion Date. The "Conversion
Date" shall be the date specified in the Notice of Conversion, provided that
the Notice of Conversion is submitted by facsimile (or by other means resulting
in, or reasonably expected to result in, written notice) to the Company or its
transfer agent (“Transfer Agent”) before Midnight, New York City time, on
the date so specified, otherwise the Conversion Date shall be the date that the
Notice of Conversion (or a facsimile thereof) is first received by the Company
or its Transfer Agent. The Person or Persons entitled to receive the shares of
Common Stock issuable upon Conversion shall be treated for all purposes as the
record holder or holders of such securities as of the Conversion Date. 

(iii) Delivery of Common Stock Upon Conversion.
Upon submission of a Notice of Conversion, the Company shall, by no later
than the third (3rd) Business Day after the Conversion Date (the "Conversion
Shares Delivery Deadline"), issue and deliver (or cause its Transfer Agent
so to issue and deliver) in accordance with the terms hereof and the Line of
Credit Agreement to or upon the order of the Holder that number of shares of
Common Stock (“Conversion Shares”) for the principal amount of this Grid
Note (plus the dollar amount of any Liquidated Damages, and other Required Cash Payments that the Holder elects to convert into Common
Stock) converted as shall be determined in accordance herewith. Upon the
Conversion of this Grid Note, the Company shall, at its own cost and expense,
take all necessary action, including obtaining and delivering an opinion of
counsel to assure that the Company's Transfer Agent shall issue stock
certificates in the name of Holder (or its nominee) or such other Persons as
designated by Holder and in such denominations to be specified at Conversion
representing the number of shares of Common Stock issuable upon such Conversion.
The Company warrants that no instructions other than these instructions have
been or will be given to the Transfer Agent of the Common Stock and that the
Shares will be free-trading, and freely transferable, and will not contain a
legend restricting the resale or transferability of the Shares provided the
Shares are eligible for immediate resale, without volume limitations, pursuant
to Rule 144 or another exemption from registration.

12 

(iv) Delivery Failure; Partial Liquidated Damages;
Revocation of Conversion. If the Company fails for any reason to
deliver to the Holder a certificate or certificates representing the Conversion
Shares pursuant to Section 3(d)(iii) by the fifth (5th) Trading Day after the
Conversion Date, the Company shall pay to such Holder, in cash, as liquidated
damages and not as a penalty, for each $1,000 of principal amount being
converted, $10 per Trading Day (increasing to $20 per Trading Day on the fifth
Trading Day after such liquidated damages begin to accrue) for each Trading Day
after such fifth (5th) Trading Day until such certificates are delivered (the
“Late Share Delivery Liquidated Damages”). Nothing herein shall limit a
Holder’s right to pursue actual damages or damages for an Event of Default
pursuant to the terms hereof for the Company’s failure to deliver Conversion
Shares within the period specified herein and such Holder shall have the right
to pursue all remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief.
The exercise of any such rights shall not prohibit the Holder from seeking to
enforce damages pursuant to any other Section hereof or under applicable law.

In addition to any other remedies which may be available to the
Holder, in the event that the Company fails for any reason to effect delivery of
the Conversion Shares by the Conversion Shares Delivery Deadline, or fails to
effect delivery of Default Shares by the Default Share Delivery Deadline (as
defined in Section 11 hereof) (each, a “Delivery Failure”), the Holder,
at its option, will be entitled to revoke all or part of the relevant Notice of
Conversion (a “Conversion Revocation”) or rescind all or part of a
Default Conversion Notice (as defined in Section 11) (a “Default Conversion
Revocation”) or rescind all or part of a Major Transaction Conversion Notice
(as defined in Section 4) (a “Major Transaction Conversion Revocation”)
or rescind all or part of the notice of Redemption, including but not limited to
a notice of Mandatory Redemption (a “Redemption Revocation”), as
applicable, by delivery of a notice to such effect to the Company whereupon the
Holder shall regain the rights of a Holder of this Grid Note with respect to
such unconverted portions of this Grid Note and the Company and the Holder shall
each be restored to their respective positions immediately prior to the delivery
of such notice, except that the liquidated damages described herein shall be payable through the date notice of
revocation or rescission is given to the Company.

13 

(v) Compensation for Buy-In on Failure to Timely Deliver
Certificates Upon Conversion, or Upon Submission for Legend
Removal. In addition to any other rights available to the Holder, if
the Company fails for any reason to deliver to the Holder such certificate or
certificates (without legends, if the Unrestricted Conditions have been met) by
the Conversion Shares Deliver Deadline pursuant to Section 3(d)(iii), or if at
any time the Holder submits shares of Common Stock for legend removal when the
Unrestricted Conditions have been met, and the Company fails to deliver or cause
to be delivered to such Holder a certificate representing such shares that is
free from all restrictive and other legends by the applicable Legend Removal
Date, and if after such Conversion Shares Deliver Deadline or Legend Removal
Date, as applicable, the Holder is required by its brokerage firm to purchase
(in an open market transaction or otherwise), or the Holder’s brokerage firm
otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale
by such Holder of the Conversion Shares which the Holder was entitled to receive
upon the conversion relating to such Conversion Shares Deliver Deadline or
Legend Removal Date, as applicable (each, a “Buy-In”), then the Company
shall (A) pay in cash to the Holder (in addition to any other remedies available
to or elected by the Holder) the amount by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased
exceeds (y) the product of (1) the aggregate number of shares of Common Stock so
purchased multiplied by (2) the actual sale price at which the sell order giving
rise to such purchase obligation was executed (including any brokerage
commissions) and (B) at the option of the Holder, if applicable, either
reinstate (or if necessary, reissue) the portion of the Grid Note for which such
conversion was not honored or deliver to the Holder the number of shares of
Common Stock that would have been issued if the Company had timely complied with
its delivery requirements under Section 3(d)(iii). For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted conversion of the Grid Note with respect to
which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000
under clause (A) of the immediately preceding sentence, the Company shall be
required to pay the Holder $1,000. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In
and, upon request of the Company, evidence of the amount of such loss. Nothing
herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon
conversion of the Grid Note as required pursuant to the terms hereof. 

(vi) Surrender of Grid Note Upon Conversion; Book-Entry. Notwithstanding anything to the contrary set forth
herein, upon Conversion of this Grid Note in accordance with the terms hereof,
the Holder shall not be required to physically surrender the Grid Note to the
Company unless all of this Grid Note is converted, in which case such Holder shall deliver the Grid Note being
converted to the Company promptly following the Conversion Date at issue. The
Holder and the Company shall maintain records showing the amount of this Grid
Note that is so converted and the dates of such Conversions or shall use such
other method, reasonably satisfactory to the Holder and the Company, so as not
to require physical surrender of this Grid Note upon each such Conversion. In
the event of any dispute or discrepancy, such records of the Company shall be
controlling and determinative in the absence of manifest error.

14 

(vii) No Fractional Shares. If any Conversion of
this Grid Note would result in a fractional share of Common Stock or the right
to acquire a fractional share of Common Stock, such fractional share shall be
disregarded and the number of shares of Common Stock issuable upon Conversion of
this Grid Note shall be the next higher number of shares. 

(xiii) Lost or Stolen Grid Notes. Upon receipt by
the Company of evidence of the loss, theft, destruction or mutilation of a Grid
Note, and (in the case of loss, theft or destruction) of indemnity reasonably
satisfactory to the Company, and upon surrender and cancellation of the Grid
Note, if mutilated, the Company shall execute and deliver a new Grid Note of
like tenor and date. 

(e) Legends.

(i) Restrictive Legends. The Holder understands
that the Grid Notes and, until such time as Conversion Shares and any other
Issued Common Shares (as defined in the Line of Credit Agreement) may be sold
pursuant to Rule 144 without any restriction as to the number of securities as
of a particular date that can then be immediately sold, the Conversion Shares
and any other Issued Common Shares may bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed
against transfer of the certificates for such Securities): 

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER SAID
ACT, OR AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY
SATISFACTORY TO COUNSEL TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT." 

(ii) Removal of Legends. The Company will issue
and deliver the Conversion Shares without restrictive legends (including the
legend set forth above in this Section 3(e)), and will remove, or cause its
Transfer Agent to remove at the Company’s expense, any restrictive legends on any Conversion
Shares that contain restrictive legends (including the legend set forth above in
this Section 3(e)), in each case when and as required under Section 6(a) of the
Line of Credit Agreement. The Holder agrees to sell all Securities, including
those represented by a certificate(s) from which the legend has been removed, in
compliance with applicable prospectus delivery requirements, if any. 

15 

(f) DTC Delivery. In lieu of delivering physical
certificates representing the unlegended shares of Common Stock (the
“Unlegended Shares”), provided the Company’s Transfer Agent is
participating in the Depository Trust Company ("DTC") Fast Automated
Securities Transfer ("FAST") program, upon request of the Holder, so long
as the certificates therefor are not required to bear a legend and the Holder is
not obligated to return such certificate for the placement of a legend thereon,
the Company shall cause its Transfer Agent to electronically transmit the
Unlegended Shares to the Holder by crediting the account of the Holder's prime
broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC")
system. The time periods for delivery and penalties described herein shall
likewise apply to the electronic transmittals described herein.

(g) Status as Shareholder. Upon submission of a Notice
of Conversion by a Holder, (i) the portion of the Grid Note covered thereby
(other than the portion, if any, pursuant to the Conversion of which shares
cannot be issued because their issuance would exceed such Holder's allocated
portion of the Required Reserve Amount) shall be deemed converted into shares of
Common Stock and (ii) the Holder's rights as a Holder of such converted portion
of this Grid Note shall cease and terminate, excepting only the right to receive
certificates for such shares of Common Stock and to any Liquidated Damages or
other remedies provided herein or in the Transaction Documents or otherwise
available at law or in equity to such Holder because of a failure by the Company
to comply with the terms of this Grid Note, including but not limited to the
remedies provided in Section 3(d)(iv), Section 3(d)(vi), Section 11 and Section
14 hereof. Notwithstanding the foregoing, if a Holder initiates a Conversion
Revocation, a Default Conversion Revocation or a Redemption Revocation pursuant
to Section 3(d)(iv) hereof, the Holder shall regain the rights of a Holder of
this Grid Note with respect to such unconverted portion of this Grid Note as
specified in Section 3(d)(iv) and the Company shall, as soon as practicable,
return such unconverted portion of this Grid Note to the Holder or, if the Grid
Note has not been surrendered, adjust its records to reflect that such portion
of the Grid Note has not been converted. In all cases, the Holder shall retain
all of its rights and remedies (including, without limitation, the right to
receive Liquidated Damages to the extent required hereby for such Event of
Failure and any subsequent Event of Failure and the right to receive the Default
Amount pursuant to Section 11 to the extent required thereby) for the Company's
failure to convert this Grid Note. 

(h) Pro Rata Conversion. In the event that the Company
receives a Conversion Notice from more than one holder of Grid Notes for the
same Conversion Date and the Company can convert some, but not all, of such
portions of the Grid Notes submitted for conversion, the Company shall convert from each
holder of Grid Notes electing to have Grid Notes converted on such date a pro
rata amount of such holder's portion of its Grid Notes submitted for conversion
based on the principal amount of Grid Notes submitted for conversion on such
date by such holder relative to the aggregate principal amount of all Grid Notes
submitted for conversion on such date.

16 

Section 4. Rights Upon Major Transaction or Change
of Entity Transaction. 

(a) Definitions. For purposes hereof,

“Change of Entity Transaction” means (i) a
consolidation, merger, exchange of shares, recapitalization, reorganization,
business combination or other similar event, in one or a series of transactions
(A) following which the holders of Common Stock immediately preceding such
consolidation, merger, change of shares, recapitalization, reorganization,
business combination or event either (1) no longer hold a majority of the shares
of Common Stock of the Company or (2) no longer have the ability to elect a
majority of the board of directors of the Company or (B) as a result of which
shares of Common Stock shall be changed into (or the shares of Common Stock
become entitled to receive) the same or a different number of shares of the same
or another class or classes of stock or securities of the Company or another
entity. 

“Sufficient Trading Characteristics” shall mean that the
average daily dollar trading volume of the common stock of such entity on its
primary exchange or market is equal to or in excess of $100,000 for the 90th
through the 31st day prior to the public announcement of the transaction in
respect of which this definition shall be applied. 

“Permissible Change of Entity Transaction” shall mean a
Change of Entity Transaction where the Successor Entity (as defined below) (A)
is a publicly traded Company whose common stock is quoted on or listed for
trading on an Eligible Market, (B) has Sufficient Trading Characteristics (as
defined above) and (C) meets the Assumption Requirements (as required in Section
4(b) below), or any other Change of Entity Transaction with respect to which the
Holder provides the Company with a Major Transaction Approval Notice (as defined
in subsection (d) immediately below). 

“Impermissible Change of Entity Transaction” shall mean
a Change of Entity Transaction which does not qualify as a Permissible Change of
Entity Transaction. 

17 

“Major Transaction” means

(i) an Impermissible Change of Entity Transaction; and 

 (ii) the sale or transfer of more than 40%, in the
aggregate, of the properties or assets of the Company to another Person or
Persons in any rolling 12 month period (an “Asset Sale”); and 

(iii) a purchase, tender or exchange offer made to and accepted
by the holders of more than the 50% of the outstanding shares of Common Stock.

(b) Assumption Upon Permissible Change of Entity
Transaction. The Company shall not, so long as any of the Grid Notes remain
outstanding, enter into or be party to a Change of Entity Transaction unless any
Person purchasing the Company’s assets or Common Stock, or any successor entity
resulting from such Change of Entity Transaction (in each case, an “Successor
Entity”), assumes (an “Assumption”) in writing all of the obligations
of the Company under the Grid Note and the other Transaction Documents in
accordance with the provisions of this Section 4(b) pursuant to written
agreements in form and substance satisfactory to the Required Holders and
approved by the Required Holders prior to such Change of Entity Transaction,
including agreements to deliver to each holder of Grid Notes in exchange for
such Grid Notes a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to the Grid Note,
including, without limitation, having a principal amount and interest rate equal
to the principal amount and interest rate of the Grid Notes held by such holder,
having similar conversion rights as the Grid Notes (including but not limited to
a similar Conversion Price and similar Conversion Price adjustment provisions)
and having similar priority to the Grid Notes, and satisfactory to the Required
Holders. Upon the occurrence of any Change of Entity Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and after the date
of such Change of Entity Transaction, the provisions of the Grid Note referring
to the "Company" shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of
the Company under the Grid Note with the same effect as if such Successor Entity
had been named as the Company herein. Upon consummation of a Change of Entity
Transaction, the Successor Entity shall deliver to the Holder confirmation that
there shall be issued upon conversion or redemption of the Grid Notes at any
time after the consummation of the Change of Entity Transaction, in lieu of the
shares of Common Stock (or other securities, cash, assets or other property)
issuable upon the conversion of the Grid Notes prior to such Change of Entity
Transaction, such shares of publicly traded common stock (or their equivalent)
of the Successor Entity, as adjusted in accordance with the provisions of the
Grid Note. The provisions of this Section shall apply similarly and equally to
successive Change of Entity Transactions and shall be applied without regard to
any limitations on the conversion of the Grid Note. The requirements of this
Section 4(b) are referred to herein as the “Assumption Requirements.”

18 

(c) Notice of Transaction. At least thirty (30) days
prior to the consummation of a Major Transaction or Change of Entity
Transaction, but not prior to the public announcement of such transaction, the
Company shall deliver written notice thereof via facsimile and overnight courier
to the Holder (a "Transaction Notice"), which notice shall specify the
nature and terms of the proposed transaction (including notice of whether or not
such transaction constitutes a Major Transaction) and nature of the Successor
Entity (if any).

(d) Redemption Right Upon Major Transaction. At any time
during the period beginning after the Holder's receipt of a Transaction Notice
and ending on the Trading Day immediately prior to the consummation of such
Major Transaction, the Holder may require the Company to redeem (a
“Redemption Upon Major Transaction”) all or any portion of the Holder’s
Grid Note by delivering written notice thereof ("Major Transaction Redemption
Notice") to the Company, which Major Transaction Redemption Notice shall
indicate the aggregate principal amount of Grid Notes (the “Redemption
Principal Amount”) that the Holder is electing to be redeemed. Unless
otherwise indicated by the Holder to the Company in writing, in the event that
the holder does not provide a Major Transaction Redemption Notice to the
Company, the Holder shall be deemed to have delivered a Major Transaction
Redemption Notice, on the last day such notice is allowable, requiring the
Company to redeem 100% of the Holder’s Grid Note. The Redemption Principal
Amount of Grid Notes subject to redemption pursuant to this Section 4(d) shall
be redeemed by the Company in cash at a price (the "Major Transaction
Redemption Price") equal to the greater of: 

(i) the product of (A) the sum of the Redemption Principal
Amount being redeemed and any accrued and unpaid Liquidated Damages and any
other Required Cash Payments (such amounts in addition to the Redemption
Principal Amount are referred to herein as the “Supplementary Amounts”),
and (B) the quotient determined by dividing (x) the greater of (I) the Market
Price of the Common Stock immediately following the public announcement of such
proposed Major Transaction and (II) the Market Price on the date that the Major
Transaction Redemption Price is paid to the Holder, by (y) the Conversion
Price,

and

(ii) the sum of (A) the Major Transaction Redemption Premium
multiplied by the Redemption Principal Amount being redeemed, plus (B) the
Supplementary Amounts.

(e) Escrow; Payment of Major Transaction Redemption
Price. The Company shall not effect a Major Transaction unless it shall
first place, or shall cause the Successor Entity to place, into an escrow
account with an independent escrow agent, at least three (3) Business Days prior
to the closing the Major Transaction (the “Major Transaction Escrow Deadline”), an amount equal to the
Major Transaction Redemption Price. Concurrently upon closing of any Major
Transaction, the Company shall pay or shall instruct the escrow agent to pay the
Major Transaction Redemption Price to the Holder, which payment shall constitute
a Redemption Upon Major Transaction of the Grid Note.

19 

(f) Injunction. In the event that the Company attempts
to consummate a Major Transaction without placing the Major Transaction
Redemption Price in escrow in accordance with subsection (e) above or without
payment of the Major Transaction Redemption Price to the Holder upon
consummation of such Major Transaction, the Buyer shall have the right to apply
for an injunction in any state or federal courts sitting in the City of New
York, borough of Manhattan to prevent the closing of such Major Transaction
until the Major Transaction Redemption Price is paid to the Holder, in full.

(g) Mechanics of Redemptions Upon Major Transactions.
Redemptions required by this Section 4 shall be made in accordance with the
provisions of Section 12 and shall have priority to payments to shareholders in
connection with a Major Transaction. To the extent redemptions required by this
Section 4(g) are deemed or determined by a court of competent jurisdiction to be
prepayments of the Grid Note by the Company, such redemptions shall be deemed to
be voluntary prepayments. Notwithstanding anything to the contrary in this
Section 4, until the Major Transaction Redemption Price (together with any
Supplementary Amounts thereon) is paid in full, the Redemption Principal Amount
submitted for redemption under this Section and the Supplementary Amounts may be
converted (a “Major Transaction Conversion”), in whole or in part, by the
Holder into shares of Common Stock upon written notice (“Major Transaction
Conversion Notice”) to the Company (or the Successor Entity, if applicable),
or in the event the Conversion Date is after the consummation of a Change of
Entity Transaction (as defined above), into shares of publicly traded common
stock (or their equivalent) of the Successor Entity pursuant to Section 4(b).
Unless otherwise indicated by the Holder in the applicable Notice of Conversion,
any principal amount of this Grid Note converted during the period from the date
of the Major Transaction Redemption Notice until the date the Major Transaction
Redemption Price is paid in full shall be considered to be a conversion (instead
of a Redemption) of a portion of the Grid Note that would have been subject to
such Redemption, and any amounts of this Grid Note converted from time to time
during such period shall be converted in full into Common Stock at the
Conversion Price then in effect, and the dollar amount so converted into Common
Stock shall be deducted from the Redemption Principal Amount (as defined above)
and any Supplementary Amounts that are subject to such redemption. The parties
hereto agree that in the event of the Company's redemption of any portion of the
Grid Note under Section 4(d), the Holder's damages would be uncertain and
difficult to estimate because of the parties' inability to predict future
interest rates and the uncertainty of the availability of a suitable substitute
investment opportunity for the Holder. Accordingly, any redemption premium due
under Section 4(d) is intended by the parties to be, and shall be deemed, a
reasonable estimate of the Holder's actual loss of its investment opportunity
and not as a penalty. 

20 

Section 5. Effect of Certain
Events.

(a) Participation. The Holder, as the holder of the Grid
Note, shall be entitled to receive such dividends paid and distributions made to
the holders of Common Stock to the same extent as if the Holder had completely
converted the Grid Note into Common Stock (without regard to any limitations on
Conversion herein or elsewhere and without regard to whether or not a sufficient
number of shares are authorized and reserved to effect any such exercise and
issuance) and had held such shares of Common Stock on the record date for such
dividends and distributions. Payments under the preceding sentence shall be made
concurrently with the dividend or distribution to the holders of Common
Stock.

(b) Voting Rights. The Holder shall obtain common
shareholder voting rights with respect to the number of shares of Common Stock
held by the Holder plus the number of shares of Common Stock issuable pursuant
to Conversions of the Grid Note at any given time (subject to the Beneficial
Ownership Limitations). 

(c) Rights Upon Issuance of Purchase Rights. If at any
time the Company grants, issues or sells any Options, Convertible Securities or
rights to purchase shares, warrants, securities or other property pro rata to
the record holders of any class of Common Shares (the “Purchase Rights”),
then the Holders will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder could have
acquired if such Holder had held the number of Common Shares acquirable upon
complete Conversion of the Grid Note (without taking into account any
limitations or restrictions on the convertibility of the Grid Note) immediately
before the date on which a record is taken for the grant, issuance or sale of
such Purchase Rights, or, if no such record is taken, the date as of which the
record holders of Common Shares are to be determined for the grant, issue or
sale of such Purchase Rights. 

Section 6. Adjustment Upon Issuance of Shares of
Common Stock or Common Stock Equivalents and Certain Other
Events; Notice of Adjustment; Notice Failure
Adjustment. If the Company issues or sells, or in accordance with this
Section 6 is deemed to have issued or sold, any shares of Common Stock
(including the issuance or sale of shares of Common Stock owned or held by or
for the account of the Company) for a consideration per share (the "New
Issuance Price") less than a price (the "Applicable Price") equal to
the Conversion Price in effect immediately prior to such issue or sale or deemed
issuance or sale (the foregoing a "Dilutive Issuance"), then immediately
after such Dilutive Issuance, the Conversion Price then in effect shall be
reduced to an amount equal to the New Issuance Price. The adjustments required
by this paragraph and by Sections 6(a) – 6(d) below are referred to in the
singular, as a “Subsequent Issuance Adjustment,“ and collectively as
“Subsequent Issuance Adjustments.” For purposes of determining the
adjusted Conversion Price under this Section 6, the following shall be
applicable: 

21 

(a) Issuance of Options. If the Company in any manner
grants any Options and the lowest price per share for which one share of Common
Stock is issuable upon the exercise of any such Option or upon conversion,
exercise or exchange of any Convertible Securities issuable upon exercise of any
such Option is less than the Applicable Price, then such share of Common Stock
shall be deemed to be outstanding and to have been issued and sold by the
Company at the time of the granting or sale of such Option for such price per
share. For purposes of this Section 6(a), the "lowest price per share for which
one share of Common Stock is issuable upon exercise of such Options or upon
conversion, exercise or exchange of such Convertible Securities" shall be equal
to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to any one share of Common Stock upon the
granting or sale of the Option, upon exercise of the Option and upon conversion,
exercise or exchange of any Convertible Security issuable upon exercise of such
Option.

(b) Issuance of Convertible Securities. If the Company
in any manner issues or sells any Convertible Securities and the lowest price
per share for which one share of Common Stock is issuable upon the conversion,
exercise or exchange thereof is less than the Applicable Price, then such share
of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Company at the time of the issuance or sale of such Convertible
Securities for such price per share. For the purposes of this Section 6(b), the
"lowest price per share for which one share of Common Stock is issuable upon the
conversion, exercise or exchange" shall be equal to the sum of the lowest
amounts of consideration (if any) received or receivable by the Company with
respect to one share of Common Stock upon the issuance or sale of the
Convertible Security and upon conversion, exercise or exchange of such
Convertible Security. In the case of a Convertible Security which is accompanied
by Options (collectively, a “Unit”), the "lowest price per share for
which one share of Common Stock is issuable upon the conversion, exercise or
exchange of such Convertible Security” shall equal (i) the consideration deemed
received in exchange for the Convertible Security, as determined in accordance
with subsection 6(d) below, divided by (ii) the total number of shares into
which such Convertible Security is convertible or exchangeable (notwithstanding
any contractual limitation on the timing or amount of conversions).

(c) Change in Option Price or Rate of Conversion. If the
purchase price provided for in any Options, the additional consideration, if
any, payable upon the issue, conversion, exercise or exchange of any Convertible
Securities, or the rate at which any Convertible Securities are convertible into
or exercisable or exchangeable for shares of Common Stock increases or decreases
at any time, the Conversion Price and the number of Conversion Shares in effect
at the time of such increase or decrease shall be adjusted to the Conversion
Price and the number of Conversion Shares which would have been in effect at
such time had such Options or Convertible Securities provided for such increased
or decreased purchase price, additional consideration or increased or decreased
conversion rate, as the case may be, at the time initially granted, issued or
sold. For purposes of this Section 6(c), if the terms of any Option or
Convertible Security that was outstanding as of the date of issuance of this
Grid Note are increased or decreased in the manner described in the immediately preceding sentence, then
such Option or Convertible Security and the shares of Common Stock deemed
issuable upon exercise, conversion or exchange thereof shall be deemed to have
been issued as of the date of such increase or decrease. No adjustment pursuant
to this Section 6 shall be made if such adjustment would result in an increase
of the Conversion Price then in effect or a decrease in the number of Conversion
Shares. 

22 

(d) Calculation of Consideration Received. In case any
Option is issued in connection with the issue or sale of other securities of the
Company, together comprising one integrated transaction, the Options will be
deemed to have been issued for their Black Scholes value, and the other
securities issued or sold in such integrated transaction will be deemed to have
been issued or sold for the balance of the consideration received by the
Company. If any shares of Common Stock, Options or Convertible Securities are
issued or sold or deemed to have been issued or sold for cash, the consideration
received therefor will be deemed to be the net amount received by the Company
therefor. If any shares of Common Stock, Options or Convertible Securities are
issued or sold for a consideration other than cash, the amount of such
consideration received by the Company will be the fair value of such
consideration, except where such consideration consists of securities, in which
case the amount of consideration received by the Company will be the Weighted
Average Price of such security on the date of receipt. If any shares of Common
Stock, Options or Convertible Securities are issued to the owners of the
non-surviving entity in connection with any merger in which the Company is the
surviving entity, the amount of consideration therefor will be deemed to be the
fair value of such portion of the net assets and business of the non-surviving
entity as is attributable to such shares of Common Stock, Options or Convertible
Securities, as the case may be. The fair value of any consideration other than
cash or securities will be determined jointly by the Company and the Required
Holders. If such parties are unable to reach agreement within ten (10) days
after the occurrence of an event requiring valuation (the "Valuation Event"),
the fair value of such consideration will be determined within five (5) Business
Days after the tenth day following the Valuation Event by an independent,
reputable appraiser jointly selected by the Company and the Required Holders.
The determination of such appraiser shall be final and binding upon all parties
absent manifest error and the fees and expenses of such appraiser shall be borne
by the Company. 

(e) Record Date. If the Company takes a record of the
holders of shares of Common Stock for the purpose of entitling them (i) to
receive a dividend or other distribution payable in shares of Common Stock,
Options or in Convertible Securities or (ii) to subscribe for or purchase shares
of Common Stock, Options or Convertible Securities, then such record date will
be deemed to be the date of the issue or sale of the shares of Common Stock
deemed to have been issued or sold upon the declaration of such dividend or the
making of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

23 

(f) Subsequent Rights Offerings. If the Company, at any
time prior to the date that all of the Grid Notes have been converted, redeemed
or otherwise satisfied in accordance with their terms, shall issue rights,
options or warrants to all holders of Common Stock (and not to Holders)
entitling them to subscribe for or purchase shares of Common Stock at a price
per share (the “Base Rights Offering Price”) that is lower than the
Conversion Price then in effect, then the Conversion Price shall be reduced (but
not increased) to the Base Rights Offering Price. Such adjustment shall be made
whenever such rights or warrants are issued, and shall become effective
immediately after the record date for the determination of stockholders entitled
to receive such rights, options or warrants. No adjustment shall be made
hereunder if such adjustment would result in an increase of the Conversion Price
then in effect. 

(g) Pro Rata Distributions. If the Company, at any time
prior to the date that all of the Grid Notes have been converted, redeemed or
otherwise satisfied in accordance with their terms, distributes to all holders
of Common Stock (and not to the Holders) evidences of its indebtedness or assets
(including cash and cash dividends) or rights or warrants to subscribe for or
purchase any security (other than the Common Stock, which shall be subject to
Section 6(a) – 6(d) above), then in each such case the Conversion Price shall be
adjusted by multiplying such Conversion Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then fair market value at such record date of
the portion of such assets or evidence of indebtedness so distributed applicable
to 1 outstanding share of the Common Stock as determined by the Board of
Directors of the Company in good faith. In either case the adjustments shall be
described in a statement delivered to the Holder describing the portion of
assets or evidences of indebtedness so distributed or such subscription rights
applicable to 1 share of Common Stock. Such adjustment shall be made whenever
any such distribution is made and shall become effective immediately after the
record date mentioned above. 

(h) Subdivision or Combination of Common Stock. If the
Company at any time subdivides (by any stock split, stock dividend,
recapitalization, reorganization, reclassification or otherwise) the shares of
Common Stock acquirable hereunder into a greater number of shares, then, after
the date of record for effecting such subdivision, the Conversion Price in
effect immediately prior to such subdivision will be proportionately reduced. If
the Company at any time combines (by reverse stock split, recapitalization,
reorganization, reclassification or otherwise) the shares of Common Stock
acquirable hereunder into a smaller number of shares, then, after the date of
record for effecting such combination, the Conversion Price in effect
immediately prior to such combination will be proportionately increased. 

(i) Notice of Dilutive Issuances and Adjustments; Notice
Failure Adjustment. The Company shall notify the Holder in writing, no later
than one (1) Business Day following any Dilutive Issuance, indicating therein
the applicable issuance price, or applicable reset price, exchange price, conversion
price, exercise price and other pricing terms (such notice, the “Dilutive
Issuance Notice”). In the event that the Company fails to provide the Holder
with a Dilutive Issuance Notice within five (5) Business Days of any Dilutive
Issuance (the “Dilutive Issuance Notice Deadline”), the Conversion Price
shall be permanently reduced (but not increased) on the Dilutive Issuance Notice
Deadline, and on the same day of each calendar month thereafter until such
notice is given (each, a “Notice Failure Adjustment Date”), or in each
case if not a business day, then on the next business day (each, a “Notice
Failure Adjustment”) to a price equal to the lesser of (a) the Conversion
Price then in effect or (b) 100% of the VWAP for five (5) trading day period
immediately preceding the applicable Notice Failure Adjustment Date
(collectively, the “Notice Failure Adjustment Price”). 

24 

(j) Notice to Allow Conversion by Holder. If (i) the
Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (ii) the Company shall declare a special nonrecurring cash
dividend on or a redemption of the Common Stock, (iii) the Company shall
authorize the granting to all holders of the Common Stock of rights or warrants
to subscribe for or purchase any shares of capital stock of any class or of any
rights, (iv) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of all or
substantially all of the assets of the Company, of any compulsory share exchange
whereby the Common Stock is converted into other securities, cash or property or
(v) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the
Company shall cause to be filed at each office or agency maintained for the
purpose of conversion of this Grid Note, and shall cause to be delivered to the
Holder at its last address as it shall appear upon the Grid Note Register, at
least 20 calendar days prior to the applicable record date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution, redemption, rights or warrants, or
if a record is not to be taken, the date as of which the holders of the Common
Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected
that holders of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share
exchange, provided that the failure to deliver such notice or any defect therein
or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. The Holder is entitled to convert this
Grid Note during the 20-day period commencing on the date of such notice through
the effective date of the event triggering such notice. 

Section 7. Automatic Redemption at End of
Term 

(a) Automatic Redemption at End of Term. Any Grid Note
that has not been submitted for Conversion into Common Stock and has not been
subjected to a Default Notice by midnight, New York City time, on the Maturity
Date (the “Automatic Redemption Date”), shall be automatically redeemed
(“Automatic Redemption”) for a redemption price, in cash, equal to the
outstanding Principal Amount of this Grid Note and any Liquidated Damages (the
“Automatic Redemption Amount”). The Automatic Redemption Amount shall be
due and payable within five (5) Trading Days of the Automatic Redemption
Date.

25 

Section 8. Senior Debt; Secured
Obligation. 

(a) Senior Debt; Priority. The Grid Notes shall
constitute senior debt of the Company. There is no debt currently outstanding
that is senior to the Grid Notes except as otherwise set forth on Schedule
8(a). All future debt issued by the Company or any Subsidiary shall be
subordinated and junior to the Grid Notes. Neither the Company nor any
Subsidiary shall, without the written permission of the Holder, issue any other
debt that is senior to, or pari passu with, the Grid Notes. From the Original
Issue Date of the Grid Notes through the date that all of the Grid Notes have
been paid in full or converted in full, before entering into, or permitting any
Subsidiary to enter into, any future debt with a third party, the Company shall
first obtain a subordination agreement, satisfactory to Holder, from the
proposed debt holder.

(b) Secured Obligation. The obligations of the Company
under this Grid Note are secured by all assets of the Company and its
Subsidiaries pursuant to the Security Agreement (“Security Agreement”) of
date even herewith, between the Company, certain of the Subsidiaries of the
Company and the Secured Parties (as defined therein). 

Section 9. Certain Negative Covenants;
Misc. Without the prior written consent of the Required Holders,
for so long as any of the Grid Notes remain Outstanding, the Company shall not,
and shall not permit any of its Subsidiaries to, directly or indirectly: 

(a) (i) pay, declare or set apart for such payment, any
dividend or other distribution (whether in cash, property or other securities)
on shares of capital stock or (ii) directly or indirectly or through any
Subsidiary of the Company make any other payment or distribution in respect of
its capital stock. For purposes hereof, each Grid Note or any portion thereof
shall be deemed to be “Outstanding” until such time as it has been
converted, redeemed or otherwise satisfied in accordance with its terms. 

(b) redeem, repay, repurchase or otherwise acquire (whether for
cash or in exchange for property or other securities or otherwise) in any one
transaction or series of related transactions any shares of capital stock of the
Company or any warrants, rights or options to purchase or acquire any such
shares, other than as to the Conversion Shares as permitted under the
Transaction Documents. 

(c) by amendment of its charter documents, including but not
limited to the Articles of Incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities, or
any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of the Grid Note, and will at all times in good faith carry out
all of the provisions of the Grid Note and take all action as may be required to
protect the rights of the Holder of the Grid Note. 

26 

(d) other than Permitted Indebtedness (as defined herein),
enter into, create, incur, assume, guarantee or suffer to exist any indebtedness
for borrowed money of any kind, including but not limited to, a guarantee, on or
with respect to any of its property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom (the “Indebtedness
Negative Covenant”);

(e) other than Permitted Liens, enter into, create, incur,
assume or suffer to exist any mortgage, lien, pledge, charge, security interest
or other encumbrance upon or in any property or assets (including accounts and
contract rights) owned by the Company or any of its Subsidiaries (collectively,
"Liens") of any kind, on or with respect to any of its property or assets
now owned or hereafter acquired or any interest therein or any income or profits
therefrom; 

(f) enter into any transaction with any Affiliate (as defined
in the Line of Credit Agreement) of the Company, except with respect to standard
employment arrangements with officers and directors and employees of the
Company;

(g) redeem, defease, repurchase, repay or make any payments in
respect of, by the payment of cash or cash equivalents (in whole or in part,
whether by way of open market purchases, tender offers, private transactions or
otherwise), all or any portion of any Indebtedness, whether by way of payment in
respect of principal of (or premium, if any) or interest on such Indebtedness,
if at the time such payment is due or is otherwise made or after giving effect
to such payment, an event constituting, or that with the passage of time and
without being cured would constitute, an Event of Default has occurred and is
continuing; 

(h) make any payment on any indebtedness owed to officers,
directors or Affiliates; or 

(i) enter into any agreement with respect to any of the
foregoing. 

Section 10. Events of Default. 

Unless waived by the Required Holders, each of the following
events shall be considered to be an "Event Of Default": 

(a) Failure to Make Cash Payments When Due. The Company
fails to pay (each, a “Payment Failure”) any cash payments due to the
Holder under the terms of this Grid Note when due under this Grid Note, whether
at maturity, upon mandatory prepayment, upon acceleration, upon an Event of
Failure, or upon any Redemption (including but not limited to a Capital Raising Redemption) or
otherwise or fails to pay any Liquidated Damages or other cash payments that are
due and owing under this Grid Note, the Line of Credit Agreement, or any other
Transaction Document when due, including but not limited to all Redemption
Amounts, (each cash payment referred to above is referred to as a “Required
Cash Payment”), or fails to pay any late fees accrued on any of the above,
and such Payment Failure continues for a period of ten (10) days after the
applicable due date; or 

27 

(b) Conversion and Delivery of the Shares. The Company
(i) fails to issue and deliver shares of Common Stock to the Holder upon
exercise by the Holder of the Conversion Rights of the Holder in accordance with
the terms of this Grid Note by the fifteenth (15th) Business Day
after the Conversion Date, or (ii) fails for a period of ten (10) Business days
to transfer or cause its Transfer Agent to transfer (electronically or in
certificated form) any certificate for shares of Common Stock issued or issuable
to the Holder upon Conversion of the Grid Note as and when required by the terms
of this Grid Note; or 

(c) Breach of Covenants. The Company breaches any
material representation, warranty, covenant or other term or condition of this
Grid Note, the Line of Credit Agreement or any of the other Transaction
Documents in any material respect, such breach has a material adverse effect on
the Buyer and such breach is not cured by the earlier to occur of (i) five (5)
Trading Days after written notice of such breach to the Company from the Holder
and (ii) ten (10) Trading Days after the Company has become or should have
become aware of such breach; or 

(d) Breach of Representations and Warranties. Any
material representation or warranty of the Company made herein, in any of the
Transaction Documents or in any agreement, statement or certificate given in
writing pursuant hereto (including, without limitation, pursuant to the Line of
Credit Agreement and the Security Agreement), shall be false or misleading in
any material respect when made and the breach of which has a material adverse
effect on the rights of the Holder with respect to this Grid Note, the Line of
Credit Agreement or the Security Agreement; or 

(e) Receiver or Trustee. The Company or any
Subsidiary of the Company shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or
for a substantial part of its property or business, or such a receiver or
trustee shall otherwise be appointed; or 

(f) Bankruptcy. Bankruptcy, insolvency, reorganization
or liquidation proceedings or other proceedings for relief under any bankruptcy
law or any law for the relief of debtors shall be instituted by or against the
Company or any "significant Subsidiary" (as defined in Rule 1-02(w) of
Regulation S-X promulgated under the 1933 Act) of the Company, or the Company or
any Significant Subsidiary shall otherwise be subject to a Bankruptcy Event; or

28 

(g) Delisting of Common Stock. A Delisting Event (as
defined below) occurs and remains uncured for a period of 10 Trading days, where
a “Delisting Event” means that the Common Stock is not listed or traded
with an Eligible Market; or 

(h) Failure to Authorize and Reserve Common Stock. The
Holder's Reserved Share Allocation is less than the number of shares of Common
Stock that the Holder would be entitled to receive upon a conversion of the full
Conversion Amount of this Grid Note (without regard to any Beneficial Ownership
Limitations on conversion set forth in Section 3(a)(ii)), and such shortfall is
not cured within ten (10) Business Days;

(i) Legend Removal Failure. A Legend Removal Failure (as
defined below) occurs and remains uncured for a period of fifteen (15) Business
days, where “Legend Removal Failure” means a failure by the Company to
issue Conversion Shares or Payment Shares without restrictive legends or to
remove restrictive legends from Conversion Shares or Payment Shares when so
required (or to withdraw any stop transfer instructions in respect thereof), in
each case pursuant to Section 3(e) hereof, Section 6 of the Line of Credit
Agreement or otherwise pursuant to this Grid Note, the Line of Credit Agreement
or any of the other Transaction Documents; or 

(j) Corporate Existence; Major Transaction. The
Company has effected a Major Transaction without paying the Major Transaction
Redemption Price to the Holder pursuant to Section 4(d) or, if the Holder did
not elect a Redemption Upon Major Transaction (if applicable), the Company has
failed to meet the Assumption Requirements of Section 4(b) prior to effecting a
Change of Entity Transaction; or 

(k) Breach of Securities Issuance Restrictions, Limited
Issuances, Rights of Participation or Securities Exchange Rights. A breach
of any of Section 4(d)(i – iv) of the Line of Credit Agreement occurs; or 

(l) Security; Impermissible Liens. Any security
interest in the Collateral (as defined in the Security Agreement) ceases to be
in effect or properly perfected as and when required by the terms of this Grid
Note or the Security Agreement, or the Company creates or suffers to exist any
Lien upon any of its properties, except for Permitted Liens; or 

(m) Failure to Comply With Dispute Resolution
Procedures. The Company has failed to comply in good faith with the Dispute
Resolution Procedures (as defined herein) or has failed to adjust the Conversion
Price as required hereunder following a Dilutive Issuance, or otherwise (after
any applicable Dispute Resolution Procedure required herein), and such failure
continues for an additional ten (10) days after the Holder provides written
notice (a “Dispute Resolution Procedure Demand”) to the Company that such
performance by the Company is required; or 

(n) Cross-Default. A default in the payment when due on
any Indebtedness of the Company in excess of $100,000, in the aggregate, not
involving a legitimate business dispute as to the Company’s obligation to
pay, which is not cured within ten (10) Business Days; or 

29 

(p) Failure to Perfect Security Interest. The Company
shall fail to take all necessary action, if and whenever required, to continue
the perfection of the Holders’ existing security interest, perfected pursuant to
the Initial Transaction Documents (as defined in the line of Credit Agreement)
for as long as any Grid Note or any portion thereof remains outstanding, or if
the Company fails to make any and all required filings in any issued or pending
patents or trademarks, pursuant to such Initial Transaction Documents for as
long as any Grid Note or any portion thereof remains outstanding.

(q) Loss of Key Person. Sass Peress fails to devote
substantially all of his professional time to the operations of the Company
during any time that any Grid Note or any portion thereof is outstanding.

(p) Failure to Make Timely Public Filings. The Company
shall fail to Timely File any reports, schedules, forms, statements and other
documents required to be filed by it with the Commission pursuant to the
reporting requirements of the 1934 Act. For purposes of this Agreement,
“Timely Filed” shall mean that the applicable document was filed (i)
within five (5) days of its original due date under the 1934 Act, or, (ii) if a
request for an extension was timely filed in accordance with Section 12b-25 of
the 1934 Act, by such extended due date.

Section 11. Mandatory Redemption; Posting of
Bond. 

(a) Mandatory Redemption. The Company shall promptly
notify the Holder, in writing, anytime the Company becomes aware of events which
constitute an Event of Default. If any Events of Default shall occur then, upon
the occurrence and during the continuation of any Event of Default, at the
option of the Holder, such option exercisable through the delivery of written
notice to the Company by such Holders (the "Default Notice"), the Grid
Note shall become immediately due and payable and the Company shall pay to the
Holder (a “Mandatory Redemption”), in full satisfaction of its
obligations hereunder, an amount (such amount referred to herein as the
"Default Amount" or the “Mandatory Redemption Amount”) equal to
the greater of (i) and (ii) immediately below: 

(i) the Mandatory Redemption Premium, multiplied by the sum
(such sum of (x), plus (y), plus (z) immediately below shall be referred to
herein as the "Default Conversion Sum") of

(x) the aggregate outstanding Principal Amount of this Grid
Note, PLUS

30 

(y) all accrued and unpaid Liquidated Damages and other
Required Cash Payments, if any,

and

(ii) the Conversion Value of the Default Conversion Sum to be
prepaid, where ”Conversion Value” means

(x) the Default Conversion Sum divided by the Conversion Price
in effect on the date that the Company pays the Default Amount;

MULTIPLIED BY

(y) the greater of (i) the Market Price (as defined herein) for
the Common Stock on the Default Notice Date or (ii) the Market Price on the date
that the Company pays the Default Amount.

Notwithstanding the occurrence of an Event of Default,
Liquidated Damages and any other Required Cash Payments shall continue to
accrue. Five (5) Business Days after the Company’s receipt of the Holder’s
Default Notice (the “Default Amount Due Date”), the Default Amount,
together with all other amounts payable hereunder, shall immediately become due
and payable, all without demand, presentment or notice, all of which hereby are
expressly waived, together with all costs, including, without limitation, legal
fees and expenses, of collection, and the Holder shall be entitled to exercise
all other rights and remedies available at law or in equity. If the Company
fails to pay the Default Amount by the Default Amount Due Date, (i) the
Conversion Price shall be permanently decreased (but not increased)(each, a
“Default Adjustment”) on the first Trading Day of each calendar month
thereafter (each a “Default Adjustment Date”) until the Default Amount is
paid in full, to a price equal to the lesser of (x) 90% of the Conversion Price
in effect on the first such Default Adjustment Date, or (y) the lowest Market
Price that has occurred on any Default Adjustment Date since the date that the
Event of Default began and (ii) at any time thereafter, the Holder shall have
the right at any time, and from time to time, so long as the Company remains in
default (and so long and to the extent that there are sufficient authorized
shares), to require the Company, upon written notice (“Default Conversion
Notice”) (which may be given one or more times, from time to time anytime
after the Default Amount Due Date), to immediately issue, in lieu of all or any
specified portion (the “Specified Portion”) of the unpaid portion (the
“Unpaid Portion”) of the Default Amount (together with any Late Payment
Fees accrued thereon), a number of shares (the “Default Shares”) of
Common Stock, subject to the Beneficial Ownership Limitation then in effect,
equal to the Specified Portion of the Default Amount (together with any accrued
Late Payment Fees thereon) divided by the Conversion Price in effect on the date
such shares are issued to the Holder, PROVIDED THAT, the Holder may require that
such payment of shares be made in one or more installments at such time and in such amounts as Holder
chooses. The Default shares are due within five (5) Business Days of the date
that the Holder delivers a Default Conversion Notice to the Company (the
“Default Share Delivery Deadline”).  

31 

To the extent redemptions required by this Section 11 are
deemed or determined by a court of competent jurisdiction to be prepayments of
the Grid Note by the Company, such redemptions shall be deemed to be voluntary
prepayments. If the Company is unable to redeem all of the Grid Note submitted
for redemption, the Company shall redeem a pro rata amount from each Holder
based on the principal amount of the Grid Note submitted for redemption by such
Holder relative to the total principal amount of Grid Notes submitted for
redemption by all Holders. The parties hereto agree that in the event of the
Company's redemption of any portion of the Grid Note under this Section 11, the
Holder's damages would be uncertain and difficult to estimate because of the
parties' inability to predict future interest rates and the uncertainty of the
availability of a suitable substitute investment opportunity for the Holder.
Accordingly, any Mandatory Redemption Amount due under this Section 11 is
intended by the parties to be, and shall be deemed, a reasonable estimate of the
Holder's actual loss of its investment opportunity and not as a penalty. 

The Holder shall not be entitled to receive Default Shares on a
given date if and to the extent that such issuance would cause the Beneficial
Ownership Limitation then in effect to be exceeded. If and to the extent that
the issuance of Default Shares with respect to a given Specified Portion would
result in a violation of the Beneficial Ownership Limitation, then that
particular Specified Portion shall be automatically reduced to a value that
would cause the number of Default Shares to be issued to equal the Maximum
Percentage, and the amount of such reduction shall be added back to the Unpaid
Portion of the Default Amount. 

Upon the payment in full of the Mandatory Redemption Amount,
the Holder shall promptly surrender this Grid Note to or as directed by the
Company (or, if applicable, shall submit a signed notice that such Grid Note has
been lost, stolen or destroyed). In connection with such acceleration described
herein, the Holder need not provide, and the Company hereby waives, any
presentment, demand, protest or other notice of any kind, and the Holder may
immediately and without expiration of any grace period enforce any and all of
its rights and remedies hereunder and all other remedies available to it under
applicable law. Such acceleration may be rescinded and annulled by Holder at any
time prior to payment hereunder and the Holder shall have all rights as a holder
of the Grid Note until such time, if any, as the Holder receives full payment
pursuant to this Section 11. No such rescission or annulment shall affect any
subsequent Event of Default or impair any right consequent thereon. 

(b) Posting of Bond. In the event that any Event
of Default occurs hereunder or any Event of Default occurs under any of the
Transaction Documents (as defined in the Line of Credit Agreement), then the
Company may not raise as a legal defense (in any Lawsuit, as defined below, or
otherwise) or justification to such Event of Default any claim that such Holder or anyone associated or
affiliated with such Holder has been engaged in any violation of law, unless the
Company has posted a surety bond (a “Surety Bond”) for the benefit of
such Holder in an amount equal to the aggregate Surety Bond Value (as defined
below) of all of the Holder’s Grid Note (the “Bond Amount”), which Surety
Bond shall remain in effect until the completion of litigation of the dispute
and the proceeds of which shall be payable to such Holder to the extent Holder
obtains judgment.

32 

For purposes hereof, a “Lawsuit” shall mean any lawsuit,
arbitration or other dispute resolution filed by either party herein pertaining
to any of the Transaction Documents (as defined in the Line of Credit
Agreement).

“Grid Note Market Value” shall mean the outstanding
principal amount of this Grid Note, plus any accrued and unpaid, Liquidated
Damages and other Required Cash Payments, divided by the lowest Conversion Price
in effect at any time during the period between the applicable Event of Default
and the filing of the Surety Bond required by this subsection (the “Surety
Bond Pricing Period”), all multiplied by the highest Closing Price during
the Surety Bond Pricing Period. 

“Surety Bond Value,” for each Grid Note, shall mean 130%
of the highest Grid Note Market Value (as defined above) of each of the Holder’s
Grid Note (where, in each case, such highest market value represents the highest
value determined during the period from the date of the subject Event of Default
through the Trading Day preceding the date that such Surety Bond goes into
effect). 

(c) Injunction and Posting of Bond. In the event that
the Event of Default referred to in subsection 11(b) above pertains to the
Company’s failure to deliver unlegended shares of Common Stock to the Holder
pursuant to a Grid Note Conversion, , legend removal request, or otherwise, the
Company may not refuse such unlegended share delivery based on any claim that
such Holder or any one associated or affiliated with such Holder has been
engaged in any violation of law, unless an injunction from a court, on prior
notice to Holder, restraining and or enjoining Conversion of all or part of said
Grid Note shall have been sought and obtained by the Company and the Company has
posted a Surety Bond for the benefit of such Holder in the amount of the Bond
Amount (as described above), which bond shall remain in effect until the
completion of litigation of the dispute and the proceeds of which shall be
payable to such Holder to the extent Holder obtains judgment.

(d) Redemption by Other Holders. Upon the Company's
receipt of notice from any of the holders of the Other Grid Notes for redemption
or repayment as a result of an event or occurrence of an Event of Default or a
Major Transaction (each, an "Other Redemption Notice"), the Company shall
immediately, but no later than one (1) Business Day of its receipt thereof,
forward to the Holder by facsimile a copy of such notice. If the Company
receives a Redemption Notice and one or more Other Redemption Notices, during
the seven (7) Business Day period beginning on and including the date which is three (3) Business Days prior to
the Company's receipt of the Holder's Redemption Notice and ending on and
including the date which is three (3) Business Days after the Company's receipt
of the Holder's Redemption Notice and the Company is unable to redeem all
principal and other amounts designated in such Redemption Notice and such Other
Redemption Notices received during such seven (7) Business Day period, then the
Company shall redeem a pro rata amount from each holder of the Grid Notes
(including the Holder) based on the principal amount of the Grid Notes submitted
for redemption pursuant to such Redemption Notice and such Other Redemption
Notices received by the Company during such seven (7) Business Day period. 

33 

Section 12. Holder’s
Redemptions.

(a) Mechanics of Holder’s Redemptions. In the event that
the Holder has sent a Major Transaction Redemption Notice to the Company
pursuant to Section 4(d) or a Default Notice pursuant to Section 11(a),
respectively (each, a “Redemption Notice”), the Holder shall promptly
submit this Grid Note to the Company. In the event of a redemption of less than
all of the outstanding principal amount of this Grid Note, the Company shall
promptly cause to be issued and delivered to the Holder a new Grid Note
representing the outstanding principal amount which has not been redeemed.

(b) Maximum Interest Rate. To the extent that the
redemption premium for any Redemption is deemed to constitute a payment of
interest under applicable law, the amount of such premium shall not exceed the
maximum rate permitted by applicable law. 

Section 13. Late Payment Fees. 

Any accrued amount under the Transaction Documents, whether
principal, , Liquidated Damages, a Redemption Amount, Default Amount, or
otherwise, which is not paid when within three Business Days of the date due
shall result in a late charge being incurred and payable by the Company in an
amount equal to interest on such amount at the rate of eighteen (18%) per annum
or the maximum rate permitted by applicable law which shall accrued from the
date such amount was due until the same is paid in full ("Late Payment
Fees"). 

Section 14. Liquidated Damages;
Injunction. 

(a) Payment of Liquidated Damages. The accrued
Liquidated Damages for each Event of Failure shall be paid in cash on or before
the fifth (5th) day of each month following a month in which Liquidated Damages
accrued, PROVIDED that, at the option of the Holder (by written notice to the
Company), if such payments are not paid within the time period specified, at the
option of the Holder, such payments shall be added to the outstanding principal
amount of this Grid Note, in which event interest shall accrue thereon in
accordance with the terms of this Grid Note and such additional principal amount shall be convertible into Common Stock at the
applicable Conversion Price in accordance with the terms of this Grid Note.
Nothing herein shall limit the Holder's right to pursue actual damages (to the
extent in excess of the Liquidated Damages) for the Company's Event of Failure,
and the Holder shall have the right to pursue all remedies available at law or
in equity (including a decree of specific performance and/or injunctive relief).
). The parties hereto acknowledge and agree that the sums payable as Liquidated
Damages or pursuant to a Redemption shall give rise to liquidated damages and
not penalties. The parties further acknowledge that (i) the amount of loss or
damages likely to be incurred by the Holder is incapable or is difficult to
precisely estimate, (ii) the amounts specified bear a reasonable proportion and
are not plainly or grossly disproportionate to the probable loss likely to be
incurred by the Holder, and (iii) the parties are sophisticated business parties
and have been represented by sophisticated and able legal and financial counsel
and negotiated this Agreement at arm’s length. Liquidated Damages are in
addition to any other payments that are or become due hereunder and any Shares
that the Holder is entitled to receive upon Conversion of this Grid Note.

34 

(b) Maximum Rate of Interest. Nothing contained herein
or in any document referred to herein or delivered in connection herewith shall
be deemed to establish or require the payment of a rate of interest or other
charges in excess of the maximum permitted by applicable law. In the event that
the rate of interest or dividends required to be paid or other charges hereunder
exceed the maximum permitted by such law, any payments in excess of such maximum
shall be credited against amounts owed by the Company to the Holder and thus
refunded to the Company. 

Section 15. Dispute Resolution.  In the
case of a dispute as to the determination of the Conversion Price or the
arithmetic calculation of the number of Conversion Shares issuable upon any
conversion of this Grid Note, the Company shall promptly issue to the Holder the
number of Conversion Shares that are not disputed and resolve such dispute in
accordance with this section. In the case of a dispute as to the determination
of the Closing Price, Closing Bid Price or the Volume Weighted Average Price or
the arithmetic calculation of the Conversion Price, Conversion Price Adjustment,
the amount of any Required Cash Payment amount or dividend calculation, or any
redemption price, redemption amount, Default Amount or similar calculation, or
the determination of whether or not a Dilutive Issuance, any other event which
would lead to an adjustment or the Conversion Price, or any issuance of Variable
Equity Securities (as defined in the Line of Credit Agreement) has occurred, the
Company shall submit the disputed determinations or arithmetic calculations via
facsimile within two (2) Business Days of receipt, or deemed receipt, of the
Conversion Notice, any redemption notice, Default Notice or other event giving
rise to such dispute, as the case may be, to the Holder. If the Holder and the
Company are unable to agree upon such determination or calculation within two
(2) Business Days of such disputed determination or arithmetic calculation being
submitted to the Holder, then the Company shall, within two (2) Business Days
submit via facsimile (a) the disputed determination of the Closing Price,
Closing Bid Price or the Volume Weighted Average Price to an independent,
reputable investment bank selected by the Company and approved by the Holder, which
approval shall not be unreasonably withheld, (b) the disputed arithmetic
calculation of the Conversion Price, Conversion Price Adjustment or any
redemption price, redemption amount or Default Amount to the Company’s
independent, outside accountant or (c) the disputed facts regarding the
occurrence of a Dilutive Issuance, or issuance of Variable Equity Securities (or
any other matter mentioned above which is not specifically required to be
submitted to the investment bank or the accountant) to an expert attorney from a
nationally recognized outside law firm (having at least 100 attorneys and having
with no prior relationship with the Company) selected by the Company and
approved by the Lead Investor as defined in the Line of Credit Agreement). The
Company, at the Company’s expense, shall cause the investment bank, the
accountant, the law firm, or other expert, as the case may be, to perform the
determinations or calculations and notify the Company and the Holder of the
results no later than five (5) Business Days from the time it receives the
disputed determinations or calculations. Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error (collectively, the “Dispute Resolution
Procedures”). 

35 

Section 16. Miscellaneous. 

(a) Failure or Indulgence Not Waiver. No failure
or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges. All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights
or remedies otherwise available. 

(b) Notices. Any notice herein required or
permitted to be given shall be in writing and may be personally served or
delivered by courier or sent by United States mail and shall be deemed to have
been given upon receipt if personally served (which shall include telephone line
facsimile transmission) or sent by courier or five (5) days after being
deposited in the United States mail, certified, with postage pre-paid and
properly addressed, if sent by mail. For the purposes hereof, the address of the
Holder shall be as shown on the records of the Company; and the address of the
Company shall be as follows: Attn: Sass Peress, President, CEO &
Chairman, ICP Solar Technologies, Inc. 7075 Place Robert-Joncas, Montreal
H4M272, Phone: 514-270-5770. Both the Holder and the Company may change the
address for service by service of written notice to the other as herein
provided. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Grid Note, including in reasonable detail a
description of such action and the reason therefore. Without limiting the
generality of the foregoing, the Company will give written notice to the Holder
(i) immediately upon any adjustment of the Conversion Price, setting forth in
reasonable detail, and certifying, the calculation of such adjustment and (ii)
at least twenty (20) days prior to the date on which the Company closes its
books or takes a record (A) with respect to any dividend or distribution upon
the Common Stock, (B) with respect to any pro rata subscription offer to holders
of Common Stock or (C) for determining rights to vote with respect to any Major Transaction, dissolution or
liquidation, provided in each case that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the
Holder. 

36 

(c) Payments. Whenever any payment of cash is to be made
by the Company to any Person pursuant to this Grid Note or otherwise pursuant to
the Transaction Documents, such payment shall be made in lawful money of the
United States of America by a check drawn on the account of the Company and sent
via overnight courier service to such Person at such address as previously
provided to the Company in writing (which address, in the case of each of the
Buyers, shall initially be as set forth on the Schedule of Buyers attached to
the Line of Credit Agreement); provided that the Holder may elect to receive a
payment of cash via wire transfer of immediately available funds by providing
the Company with prior written notice setting out such request and the Holder's
wire transfer instructions. Whenever any amount expressed to be due by the terms
of this Grid Note is due on any day which is not a Business Day, the same shall
instead be due on the next succeeding day which is a Business Day.

(d) Amendments. Except as
otherwise expressly provided herein, the Grid
Notes, the Other Grid Notes, and any provision hereof or thereof may only be
amended by an instrument in writing signed by the Required Holders and the
Holder of each Grid Note individually. 

(e) Assignability. This Grid Note shall be binding upon
the Company and its successors and assigns, and shall inure to be the benefit of
the Holder and its successors and assigns. 

(f) Payment of Collection, Enforcement and Other Costs.
If (i) this Grid Note is placed in the hands of an attorney for collection
or enforcement or is collected or enforced through any legal proceeding or the
Holder otherwise takes action to collect amounts due under this Grid Note or to
enforce the provisions of this Grid Note or (ii) there occurs any bankruptcy,
reorganization, receivership of the Company or other proceedings affecting
Company creditors' rights and involving a claim under this Grid Note, then the
Company shall pay the costs incurred by the Holder for such collection,
enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, but not limited to, attorneys' fees
and disbursements. 

(g) Governing Law; Equitable Relief. All questions
concerning the construction, validity, enforcement and interpretation of this
Grid Note or the Transaction Documents shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York, without
regard to the principles of conflicts of law thereof. Each party agrees that all
legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement and any other Transaction Documents
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced exclusively in
the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, borough of Manhattan
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper or is an inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other
manner permitted by law. The parties hereby waive all rights to a trial by jury.
If either party shall commence an action or proceeding to enforce any provisions
of the Transaction Documents, then the prevailing party in such action or
proceeding shall be reimbursed by the other party for its reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding. 

37 

(h) Certain Amounts. Whenever pursuant to this Grid Note
the Company is required to pay an amount in excess of the Principal Amount of
the outstanding Grid Note (or the portion thereof required to be paid at that
time) plus any accrued and unpaid Liquidated Damages or other Required Cash
Payments, the Company and the Holder agree that the actual damages to the Holder
from the receipt of cash payment on this Grid Note may be difficult to determine
and the amount to be so paid by the Company represents stipulated damages and
not a penalty and is intended to compensate the Holder in part for loss of the
opportunity to convert this Grid Note and to earn a return from the sale of
shares of Common Stock acquired upon Conversion of this Grid Note at a price in
excess of the price paid for such Shares pursuant to this Grid Note. The Company
and the Holder hereby agree that such amount of stipulated damages is not
plainly disproportionate to the possible loss to the Holder from the receipt of
a cash payment without the opportunity to convert this Grid Note into shares of
Common Stock. 

(i) Rule 144 Hold Period. For purposes of Rule 144, it
is intended, understood and acknowledged that the Common Stock issuable upon
Conversion of this Grid Note shall be deemed to have been acquired at the time
the Grid Note was issued. Moreover, it is intended, understood and acknowledged
that the holding period for the Common Stock issuable upon Conversion of this
Grid Note shall be deemed to have commenced on the date this Grid Note was
issued.

(j) Purchase Agreement. By its acceptance of the Grid
Note, the Holder agrees to be bound by the applicable terms of the Line of
Credit Agreement. 

38 

(k) Notice of Corporate Events. Except as
otherwise provided in this Grid Note, the Holder of this Grid Note shall have no
rights as a Holder of Common Stock unless and only to the extent that it
converts this Grid Note into Common Stock. The Company shall provide the Holder
with prior notification of any meeting of the Company's shareholders (and copies
of proxy materials and other information sent to shareholders). In the event the
Company takes a record of its shareholders for the purpose of determining
shareholders who are entitled to receive payment of any dividend or other
distribution, any right to subscribe for, purchase or otherwise acquire
(including by way of merger, consolidation, reclassification or
recapitalization) any share of any class or any other securities or property, or
to receive any other right, or for the purpose of determining shareholders who
are entitled to vote in connection with any proposed sale, lease or conveyance
of all or substantially all of the assets of the Company or any proposed
liquidation, dissolution or winding up of the Company, the Company shall mail a
notice to the Holder, at least twenty (20) days prior to the record date
specified therein (or thirty (30) days prior to the consummation of the
transaction or event, whichever is earlier), of the date on which any such
record is to be taken for the purpose of such dividend, distribution, right or
other event, and a brief statement regarding the amount and character of such
dividend, distribution, right or other event to the extent known at such time.
The Company shall make a public announcement of any event requiring notification
to the Holder hereunder substantially simultaneously with the notification to
the Holder in accordance with the terms of this Section 16(k). 

(l) Remedies. The remedies provided in this Grid
Note shall be cumulative and in addition to all other remedies available under
this Grid Note and the other Transaction Documents, at law or in equity
(including a decree of specific performance and/or other injunctive relief), and
nothing herein shall limit the right of the Holder right to pursue actual
damages for any failure by the Company to comply with the terms of this Grid
Note or the Transaction Documents. The Company acknowledges that a breach by it
of its obligations hereunder will cause irreparable harm to the Holder, by
vitiating the intent and purpose of the transaction contemplated hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of its
obligations under this Grid Note will be inadequate and agrees, in the event of
a breach or threatened breach by the Company of the provisions of this Grid Note
or the other Transaction Documents, that the Holder shall be entitled, in
addition to all other available remedies at law or in equity, to an injunction
or injunctions restraining, preventing or curing any breach of the Grid Note and
the other Transaction Documents and to enforce specifically the terms and
provisions thereof, without the necessity of showing economic loss and without
any bond or other security being required. 

(m) Construction; Headings. This Grid Note shall be
deemed to be jointly drafted by the Company and all the Purchasers and shall not
be construed against any person as the drafter hereof. The headings of this Grid
Note are for convenience of reference and shall not form part of, or affect the
interpretation of, this Grid Note. 

39 

IN WITNESS WHEREOF, Company has caused the Amended and Restated
Grid Note to be signed in its name by its duly authorized officer this
8th day of October, 2009. 

COMPANY:

ICP Solar Technologies, Inc. 

By:__________________________________
      Sass Peress,
President, CEO & Chairman

40 

EXHIBIT A 

NOTICE OF CONVERSION 

(To be Executed by the Registered Holder in order to Convert
the Grid Note) 

The undersigned hereby irrevocably elects to convert
$__________in principal amount of the Grid Note (defined herein) into shares of
Common Stock, par value $0.00001 per share ("Common Stock"), of ICP
Solar Technologies, Inc., a Nevada corporation (the "Company"), plus:

- $_________in accrued and unpaid Liquidated Damages, plus 

- $_________in other
Required Cash Payments (specify):
___________________________________________________________________. 

all according to the conditions of the Grid Note of the Company
dated as of October ___, 2009 (the "Grid Note"), as of the date written
below. If securities are to be issued in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates. No fee will be charged to
the Holder for any Conversion, except for transfer taxes, if any. By submitting
this Notice of Conversion, the Holder certifies that the issuance of the number
of shares of Common Stock requested hereby will not result in a violation of the
Beneficial Ownership Limitation. 

The Company shall electronically transmit the Common Stock
issuable pursuant to this Notice of Conversion to the account of the undersigned
or its nominee with DTC through its Deposit Withdrawal Agent Commission system
("DWAC Transfer"). 

Name of DTC Prime
Broker:______________________________       
Account
Number:________________________________________

In lieu of receiving shares of Common Stock issuable pursuant
to this Notice of Conversion by way of a DWAC Transfer, the undersigned hereby
requests that the Company issue a certificate or certificates for the number of
shares of Common Stock set forth above (which numbers are based on the Holder's
calculation attached hereto) in the name(s) specified immediately below or, if
additional space is necessary, on an attachment hereto: 

Name:
_________________________________________________

Address:
_______________________________________________

The undersigned represents and warrants that all offers and
sales by the undersigned of the securities issuable to the undersigned upon
Conversion of the Grid Note shall be made pursuant to an exemption from registration under the
Securities Act of 1933, as amended (the "ACT"). 

41 

(i) Date of
Conversion:_______________________________
Applicable Conversion
Price:________________________
Number of Shares of
Common______________________
Stock to be Issued Pursuant to (i):
____________________
Conversion of the Grid
Note:_______________________

(ii) Conversion of accrued and unpaid Liquidated Damages,
and/or other Required Cash Payments:

______________________________________________________________. 

Signature:
______________________________________________________
Name:
_________________________________________________________
Address:
_______________________________________________________

Upon Conversion of the Grid Note in accordance with the terms
thereof, the Holder shall not be required to physically surrender the Grid Note
(or evidence of loss, theft or destruction thereof) to the Company unless all of
the Grid Note is converted, in which case such Holder shall deliver the Grid
Note being converted to the Company promptly following the Conversion Date at
issue. The Company shall issue and deliver shares of Common Stock to an
overnight courier not later than the third Business Days following receipt of
the Notice of Conversion with respect to the Grid Note(s) to be converted, and
shall make payments pursuant to the Grid Note for the number of Business Days
such issuance and delivery is late. 

42 

ADVANCES AND PAYMENTS OF
PRINCIPAL FOR SECURED CONVERTIBLE GRID
NOTE DUE OCTOBER 1, 2010 OF ICP SOLAR
TECHNOLOGIES, INC. 

Name of Holder: ________________________________ 

	

Date 	

Advance No. 
(or
      Payment 
No.) 	

Amount of Advance
      (or 
Amount of Payment) 	
      

Amount of Added 
Principal Balance* 
(in
      the Case of an 
Advance) 
	Aggregate 
Outstanding
      
Principal 
Amount After 
Accounting for
      
All Advances 
and Payments 	

Company
      
Signature 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

* = Which shall equal the amount advanced, divided by 0.9009,
to accounting for the Original Issue Discount. 

43

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