Document:

AMENDED AND RESTATED RIGHTS AGREEMENT DATED NOVEMBER 17, 2003

 Exhibit 4.1 
  

AMENDED AND RESTATED RIGHTS AGREEMENT 
  
 This AMENDED AND RESTATED RIGHTS AGREEMENT, dated as of November 17, 2003 (the “Agreement”), between BJ’s Wholesale Club, Inc., a Delaware
corporation (the “Company”), and The Bank of New York, a New York corporation, as Rights Agent (the “Rights Agent”), hereby amends and restates the Rights Agreement, dated as of July 10, 1997, as amended by Amendment No. 1, dated
as of February 4, 1999, to the Rights Agreement between the Company and First Chicago Trust Company of New York (the “Original Agreement”). 
  
 W I T N E S S E T H 
  
 WHEREAS, on July 10, 1997 the Board of Directors of the Company (the “Board” or “Board of Directors”) authorized and declared a
dividend distribution of one Right for each share of Common Stock (as hereinafter defined) of the Company outstanding at the close of business on July 10, 1997 (the “Record Date”), and authorized the issuance of one Right (as such number
may hereinafter be adjusted pursuant to the provisions of Section 11(p) hereof) for each share of Common Stock of the Company issued between the Record Date (whether originally issued or delivered from the Company’s treasury) and the earlier of
the Distribution Date or the Expiration Date, each Right initially representing the right to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock of the Company having the rights, powers and preferences set forth
in the form of Certificate of Designations attached hereto as Exhibit A, upon the terms and subject to the conditions hereinafter set forth (the “Rights”); 
  
 WHEREAS, on February 4, 1999, the Company and First Chicago Trust Company of New York entered into Amendment No. 1 to the
Rights Agreement, dated as of July 10, 1997, to, among other things, (i) eliminate provisions related to “Continuing Directors,” (ii) eliminate provisions related to “Permitted Offers,” (iii) amend the time period during which
the Rights may be redeemed, and (iv) make certain other revisions; 
  
 WHEREAS, in accordance with Section 21 of the Original Agreement, the Company has appointed The Bank of New York to succeed First Chicago Trust Company of New York as Rights Agent, and The Bank of New York has agreed to be so appointed;

  
 NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereby agree as follows: 
  
 Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated: 
  
 (a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be
the Beneficial Owner of 20% or more of the shares of Common Stock then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the Company, or
(iv) any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan. Notwithstanding the foregoing, no Person shall become an “Acquiring Person” as the result of an acquisition of Common Stock
by the Company which, 

  

 
by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 20% or more of the shares of
Common Stock of the Company then outstanding; provided, however, that if a Person shall become the Beneficial owner of 20% or more of the shares of Common Stock of the Company then outstanding as the result of an acquisition of Common
Stock by the Company and shall, after such acquisition of Common Stock by the Company, become the Beneficial Owner of any additional Common Stock of the Company, then such Person shall be deemed to be an “Acquiring Person.” Notwithstanding
the foregoing, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph (a), has become such
inadvertently, and such Person divests as promptly as practicable a sufficient number of shares of Common Stock so that such Person would no longer be an “Acquiring Person,” as defined pursuant to the foregoing provisions of this paragraph
(a), then such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement unless and until such Person shall again become an “Acquiring Person.” Notwithstanding the foregoing, Waban Inc. shall not
be an “Acquiring Person” as a result of its ownership of shares of Common Stock prior to the distribution of shares of Common Stock to the stockholders of Waban Inc. pursuant to the Separation and Distribution Agreement between Waban Inc.
and the Company. 
  
 (b) “Act” shall
mean the Securities Act of 1933. 
  
 (c)
“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended and in effect on the date of this
Agreement (the “Exchange Act”). 
  
 (d)
A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own,” any securities: 
  
 (i) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, beneficially owns or has the right to
acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect
to a bona fide public offering of securities), whether or not in writing, or upon the exercise of conversion rights, exchange rights, other rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed
the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange, or (B) securities issuable upon exercise of Rights at any time prior to the occurrence of a Triggering Event, or (C) securities issuable upon exercise of Rights from and after the occurrence of a Triggering Event
which Rights were acquired by such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (the “Original Rights”) or pursuant to Section 11(i) hereof in
connection with an adjustment made with respect to any Original Rights; 
  
 (ii) which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as determined pursuant to Rule
13d-3 of the General Rules and Regulations under the Exchange 

  

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Act, or any comparable or successor rule), including pursuant to any agreement, arrangement or understanding (other than customary agreements with and
between underwriters and selling group members with respect to a bona fide public offering of securities), whether or not in writing; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to
“beneficially own,” any security under this subparagraph (ii) as a result of an agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding: (A) arises solely from a revocable proxy given
in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the General Rules and Regulations under the Exchange Act, and (B) is not then reportable by such Person on Schedule 13D
under the Exchange Act (or any comparable or successor report); or 
  
 (iii) which are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or Associates) has any agreement,
arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), whether or not in writing, for the purpose of acquiring, holding,
voting (except pursuant to a revocable proxy as described in the proviso to subparagraph (ii) of this paragraph (d)) or disposing of any voting securities of the Company. 
  
 For all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding at any particular
time, including for purposes of determining the particular percentage of such outstanding shares of Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(l)(i) of the General
Rules and Regulations under the Exchange Act. 
  
 (e) “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the Borough of Manhattan, The City of New York, are authorized or obligated by law or executive order to close.

  
 (f) “Close of business” on any
given date shall mean 5:00 p.m., New York City time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 p.m., New York City time, on the next succeeding Business Day. 
  
 (g) “Common Stock” shall mean the common stock,
$0.01 par value, of the Company, except that “Common Stock” when used with reference to any Person other than the Company shall mean the capital stock of such Person with the greatest voting power, or the equity securities or other equity
interest having power to control or direct the management, of such Person. 
  
 (h) “Common stock equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (i) Intentionally omitted. 
  
 (j) “Current market price” shall have the meaning set forth in Section 11(d)(i) hereof. 
  

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 (k) “Current Value” shall have the meaning set forth in Section 11(a)(iii)
hereof. 
  
 (l) “Distribution Date”
shall have the meaning set forth in Section 3(a) hereof. 
  
 (m) “Exchange Act” shall have the meaning set forth in Section 1(c) hereof. 
  
 (n) “Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 
  
 (o) “Final Expiration Date” shall mean the close
of business on July 10, 2007. 
  
 (p)
Intentionally omitted. 
  
 (q) “Person”
shall mean any individual, firm, corporation, partnership, trust, association or other entity. 
  
 (r) “Preferred Stock” shall mean shares of Series A Junior Participating Preferred Stock, $.01 par value, of the Company having
the rights and preferences set forth in the form of Certificate of Designations attached to this Agreement as Exhibit A and, to the extent that there is not a sufficient number of shares of Series A Junior Participating Preferred Stock
authorized to permit the full exercise of the Rights, any other series of Preferred Stock, $.01 par value, of the Company designated for such purpose containing terms substantially similar to the terms of the Series A Junior Participating Preferred
Stock. 
  
 (s) “Principal Party” shall
have the meaning set forth in Section 13(b) hereof. 
  
 (t) “Purchase Price” shall have the meaning set forth in Section 4(a) hereof. 
  
 (u) “Record Date” shall have the meaning set forth in the WHEREAS clause at the beginning of the Agreement. 
  
 (v) “Redemption Date” shall have the meaning set
forth in Section 7(a) hereof. 
  
 (w)
“Redemption Price” shall have the meaning set forth in Section 23(a) hereof. 
  
 (x) “Rights” shall have the meaning set forth in the WHEREAS clause at the beginning of the Agreement. 
  
 (y) “Rights Certificates” shall have the meaning
set forth in Section 3(a) hereof. 
  
 (z)
“Section 11(a)(ii) Event” shall mean an acquisition of Common Stock described in the first sentence of Section 11(a)(ii) hereof. 
  
 (aa) “Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  

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 (bb) “Section 13 Event” shall mean any event described in clauses (x), (y) or
(z) of Section 13(a) hereof. 
  
 (cc)
“Spread” shall have the meaning set forth in Section 11(a)(iii) hereof. 
  
 (dd) “Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall
include, without limitation, a report filed pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such. 
  
 (ee) “Subsidiary” shall mean, with reference to any Person, any corporation of which an amount of
voting securities sufficient to elect at least a majority of the directors of such corporation is beneficially owned, directly or indirectly, by such Person, or otherwise controlled by such Person. 
  
 (ff) “Substitution Period” shall have the meaning
set forth in Section 11(a)(iii) hereof. 
  
 (gg)
“Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof. 
  
 (hh) “Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event. 
  
 Section 2. Appointment of Rights Agent. The Company hereby appoints
the Rights Agent to act as agent for the Company and the holders of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the holders of the Common Stock) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such Co-Rights Agents as it may deem necessary or desirable upon ten (10) days’ prior written notice to the Rights Agent. The Rights Agent
shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any such co-Rights Agent. 
  
 Section 3. Issue of Rights. 
  
 (a) Until the earlier of (i) the close of business on the tenth Business Day (or such later date as may be determined by the Board of
Directors of the Company) after the Stock Acquisition Date (or, if the tenth Business Day after the Stock Acquisition Date occurs before the Record Date, the close of business on the Record Date), or (ii) the close of business on the tenth Business
Day (or such later date as may be determined by action of the Board of Directors of the Company) after the date that a tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the
Company or of any Subsidiary of the Company, or any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules
and Regulations under the Exchange Act, if upon consummation thereof, such Person would be the Beneficial Owner of 30% or more of the shares of Common Stock then outstanding (the earlier of (i) and (ii) being herein referred to as the 

  

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“Distribution Date”), (x) the Rights will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by the certificates for the
Common Stock registered in the names of the holders of the Common Stock (which certificates for Common Stock shall be deemed also to be certificates for Rights) and not by separate certificates, and (y) the Rights will be transferable only in
connection with the transfer of the underlying shares of Common Stock (including a transfer to the Company). As soon as practicable after the Distribution Date, the Rights Agent will send by first- class, insured, postage prepaid mail, to each
record holder of the Common Stock as of the close of business on the Distribution Date, at the address of such holder shown on the records of the Company, one or more rights certificates, in substantially the form of Exhibit B hereto (the
“Rights Certificates”), evidencing one Right for each share of Common Stock so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to
Sections 11(i) or 11(p) hereof, at the time of distribution of the Right Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only
whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates. 
  
 (b) As promptly as practicable following the Record Date,
the Company will send a copy of a Summary of Rights to Purchase Preferred Stock, in substantially the form attached hereto as Exhibit C, by first-class, postage prepaid mail, to each record holder of the Common Stock as of the close of
business on the Record Date, at the address of such holder shown on the records of the Company. With respect to certificates for the Common Stock outstanding as of the close of business on the Record Date, until the Distribution Date, the Rights
will be evidenced by such certificates for the Common Stock and the registered holders of the Common Stock shall also be the registered holders of the associated Rights. 
  
 (c) Rights shall be issued (i) in respect of all shares of Common Stock that are issued (either as an
original issuance or from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date and (ii) in connection with the issuance or sale of Common Stock following the Distribution Date
and prior to the Expiration Date upon the exercise of stock options, or upon the exercise, conversion or exchange of securities, granted or issued by the Company prior to the Distribution Date. Certificates representing such shares of Common Stock
(including, without limitation, certificates issued upon transfer or exchange of Common Stock) shall also be deemed to be certificates for Rights, and shall bear the following legend: 
  
 This certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Amended and Restated
Rights Agreement between BJ’s Wholesale Club, Inc. (the “Company”) and The Bank of New York (the “Rights Agent”) dated as of November         , 2003, as the same may be amended,
restated or renewed from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal offices of the Company. Under certain circumstances, as set
forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer 

  

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be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of
mailing, without charge promptly after receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights issued to, or held by, any Person who is, was or becomes an Acquiring Person or any Affiliate or
Associates thereof (as such terms are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void. 
  
 With respect to such certificates containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration
Date, the Rights associated with the Common Stock represented by such certificates shall be evidenced by such certificates alone and registered holders of Common Stock shall also be the registered holders of the associated Rights. 
  
 (d) Until the earlier of the Distribution Date or the
Expiration Date, the transfer of any certificates representing shares of Common Stock in respect of which Rights have been issued shall also constitute the transfer of the Rights associated with such shares of Common Stock. In the event that the
Company purchases or acquires any shares of Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such shares of Common Stock shall be deemed cancelled and retired so that the Company shall not be entitled
to exercise any Rights associated with the shares of Common Stock which are no longer outstanding. 
  
 Section 4. Form of Rights Certificates. 
  
 (a) The Rights Certificates (and the forms of election to purchase, certification and assignment to be printed on the reverse thereof)
shall each be substantially in the form set forth in Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or over-the-counter market on which
the Rights may from time to time be listed, or to conform to usage. Subject to the provisions of Section 11 and Section 22 hereof, the Rights Certificates, whenever distributed, shall entitle the holders thereof to purchase such number of one
one-thousandths of a share of Preferred Stock as shall be set forth therein at the price set forth therein (such exercise price per one one- thousandth of a share, the “Purchase Price”), but the amount and type of securities purchasable
upon the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as provided herein. 
  
 (b) Any Rights Certificate issued pursuant to Section 3, Section 11(i) or Section 22 hereof that represents Rights beneficially owned by
persons known to be: (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not
for consideration) 

  

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from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any continuing
agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding that has as a primary purpose or effect avoidance
of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent
feasible) the following legend: 
  
 The Rights represented by
this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate
and the Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of such Agreement. 
  
 Section 5. Countersignature and Registration. 
  
 (a) The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, President or any Vice President,
either manually or by facsimile signature, and shall have affixed thereto the Company’s seal or a facsimile thereof, which shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature.
The Rights Certificates shall be manually countersigned by the Rights Agent and shall not be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be
such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same
force and effect as though the person who signed such Rights Certificates had not ceased to be such officer of the Company; and any Rights Certificates may be signed on behalf of the Company by any person who, at the actual date of the execution of
such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the execution of this Rights Agreement any such person was not such an officer. 
  
 (b) Following the Distribution Date, the Rights Agent shall
keep or cause to be kept, at its office designated as the appropriate place for surrender of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the
names and addresses of the respective holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates, the Certificate number and the date of each of the Rights Certificates. 
  
 Section 6. Transfer, Split Up, Combination and Exchange of Rights
Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates. 
  
 (a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time after the close of business on the Distribution Date, and at or prior to the close of 

  

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business on the Expiration Date, any Rights Certificate or Certificates (other than Rights Certificates representing Rights that have become void pursuant to
Section 7(e) hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Rights Certificate or Certificates, entitling the registered holder to purchase a like number of one
one-thousandths of a share of Preferred Stock (or, following a Triggering Event, Common Stock, other securities, cash or other assets, as the case may be) as the Rights Certificate or Certificates surrendered then entitled such holder (or former
holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the
Rights Certificate or Certificates to be transferred, split up, combined or exchanged, with the form of assignment and certificate appropriately executed, at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor
the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered holder shall have completed and signed the certificate contained in the form of assignment on
the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. Thereupon
the Rights Agent shall, subject to Section 4(b), Section 7(e) and Section 14 hereof, countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates. 
  
 (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the
loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the Company will execute and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to
the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 
  
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 
  
 (a) Subject to Section 7(e) hereof, the registered holder of any Rights Certificate may exercise the Rights
evidenced thereby (except as otherwise provided herein including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or in part at any time after the Distribution
Date upon surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with
payment of the aggregate Purchase Price with respect to the total number of one one-thousandths of a share (or other shares, securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior
to the earliest of (i) the Final Expiration Date, (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”) or (iii) the time at which such Rights are 

  

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exchanged as provided in Section 24 hereof (the earliest of (i), (ii) and (iii) being herein referred to as the “Expiration Date”). 
  
 (b) The Purchase Price for each one one-thousandth of a
share of Preferred Stock pursuant to the exercise of a Right shall initially be $120, and shall be subject to adjustment from time to time as provided in Sections 11 and 13(a) hereof and shall be payable in accordance with paragraph (c) below.

  
 (c) Upon receipt of a Rights Certificate
representing exercisable Rights, with the form of election to purchase and the certificate duly executed, ac companied by payment, with respect to each Right so exercised, of the Purchase Price per one one-thousandth of a share of Preferred Stock
(or other shares, securities, cash or other assets, as the case may be) to be purchased as set forth below and an amount equal to any applicable transfer tax, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A)
requisition from any transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates for the total number of one one-thousandths of a share of Preferred Stock to be
purchased and the Company hereby authorizes its transfer agent to comply with such requests, or (B) if the Company shall have elected to deposit the total number of shares of Preferred Stock issuable upon exercise of the Rights hereunder with a
depositary agent, requisition from the depositary agent depositary receipts representing such number of one one-thousandths of a share of Preferred Stock as are to be purchased (in which case certificates for the shares of Preferred Stock
represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company hereby directs the depositary agent to comply with such requests, (ii) requisition from the Company the amount of cash, if any, to be
paid in lieu of fractional shares in accordance with Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate,
registered in such name or names as may be designated by such holder, and (iv) after receipt thereof, deliver such cash, if any, to or upon the order of the registered holder of such Rights Certificate. The payment of the Purchase Price (as such
amount may be reduced pursuant to Section 11(a)(iii) hereof) may be made in cash or by certified bank check or money order payable to the order of the Company. In the event that the Company is obligated to issue other securities (including Common
Stock) of the Company, pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company shall make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the
Rights Agent, if and when appropriate. 
  
 (d) In
case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and
delivered to, or upon the order of, the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, subject to the provisions of Section 14 hereof. 
  
 (e) Notwithstanding anything in this Agreement to the
contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee after the 

  

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Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person
with whom the Acquiring Person has any continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board of Directors has determined is part of a plan, arrangement or understanding that has as a
primary purpose or effect the avoidance of this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this
Agreement or otherwise. The Company shall use all reasonable efforts to insure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but shall have no liability to any holder of Rights Certificates or other Person as a
result of its failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. 
  
 (f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake
any action with respect to a registered holder upon the occurrence of any purported transfer or exercise as set forth in this Section 7 unless such registered holder shall have (i) completed and signed the certificate following the form of
assignment or election to purchase set forth on the reverse side of the Rights Certificate surrendered for such assignment or exercise, and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof as the Company shall reasonably request. 
  
 Section 8. Cancellation and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company
or any of its agents, be delivered to the Rights Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the Company otherwise
than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company. 
  
 Section 9.
Reservation and Availability of Capital Stock. 
  
 (a) The Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued shares of Preferred Stock (and, following the occurrence of a Triggering Event, out of its authorized and unissued
shares of Common Stock and/or other securities or out of its authorized and issued shares held in its treasury), the number of shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other securities)
that, as provided in this Agreement including Section 11(a)(iii) hereof, will be sufficient to permit the exercise in full of all outstanding Rights. 
  

 11 

 (b) So long as the shares of Preferred Stock (and, following the occurrence of a
Triggering Event, Common Stock and/or other securities) issuable and deliverable upon the exercise of the Rights are eligible for listing on the Nasdaq National Market or any national securities exchange, the Company shall use its best efforts to
cause, from and after such time as the Rights become exercisable, all shares reserved for such issuance to be so listed upon official notice of issuance upon such exercise. 
  
 (c) The Company shall use its best efforts to (i) file, as soon as practicable following the earliest date
after the first occurrence of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined in accordance with Section 11(a)(iii) hereof, or as soon as is required by law
following the Distribution Date, as the case may be, a registration statement under the Act, with respect to the securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as
soon as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer
exercisable for such securities, and (B) the Expiration Date. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws of the various states in connection with the
exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to
prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension is no longer in effect. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite registration or qualification in such
jurisdiction shall have been effected or obtained. 
  
 (d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all one one-thousandths of a share of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other
securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable. 
  
 (e) The Company further covenants and agrees that it will
pay when due and payable any and all federal and state transfer taxes and charges that may be payable in respect of the issuance or delivery of the Rights Certificates and of any certificates for a number of one one-thousandths of a share of
Preferred Stock (or Common Stock and/or other securities, as the case may be) upon the exercise of Rights. The Company shall not, however, be required (i) to pay any transfer tax that may be payable in respect of any transfer or delivery of Rights
Certificates to a Person other than, or the issuance or delivery of a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) in respect of a name other than that of, the registered
holder of the Rights Certificate evidencing Rights surrendered for exercise or (ii) to issue or deliver any certificates for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, 

  

 12 

 
as the case may be) in a name other than that of the registered holder upon the exercise of any Rights until such tax shall have been paid (any such tax
being payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s satisfaction that no such tax is due. 
  
 Section 10. Preferred Stock Record Date. Each Person in whose name any certificate for a number of one
one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of such fractional shares of
Preferred Stock (or Common Stock and/or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the
Purchase Price (and all applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Stock (or Common Stock and/or other securities, as the case may be)
transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Stock
(or Common Stock and/or other securities, as the case may be) transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate, as such, shall not be entitled to any rights of a
stockholder of the Company with respect to securities for which the Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be
entitled to receive any notice of any proceedings of the Company, except as provided herein. 
  
 Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. The Purchase Price, the number and kind of shares covered by each Right and the number of Rights outstanding are subject
to adjustment from time to time as provided in this Section 11. 
  
 (a) (i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock,
(C) combine the outstanding Preferred Stock into a smaller number of shares, or (D) issue any shares of its capital stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a consolidation or merger
in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of
such subdivision, combination or reclassification, and the number and kind of shares of Preferred Stock or capital stock, as the case may be, issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after
such time shall be entitled to receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of shares of Preferred Stock or capital stock, as the case may be, which, if such Right had been exercised immediately prior to
such date and at a time when the Preferred Stock transfer books of the Company were open, he would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. If an event
occurs that would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 

  

 13 

 
11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof. 
  
 (ii) Subject to Section 24 of this Agreement, in the event
that any Person, alone or together with its Affiliates or Associates, becomes an Acquiring Person, then, promptly following the first occurrence of such event, proper provision shall be made so that each holder of a Right (except as provided below
and in Section 7(e) hereof) shall thereafter have the right to receive (subject to the last sentence of Section 23(a)), upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a number of
one one-thousandths of a share of Preferred Stock, such number of shares of Common Stock of the Company that equals the result obtained by (x) multiplying the then current Purchase Price by the then number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event, and (y) dividing that product (which, following such first occurrence, shall thereafter be referred to as the “Purchase
Price” for each Right and for all purposes of this Agreement) by 50% of the current market price (determined pursuant to Section 11(d) hereof) per share of Common Stock on the date of such first occurrence (such number of shares, the
“Adjustment Shares”). 
  
 (iii) In the
event that the number of shares of Common Stock that are authorized by the Company’s certificate of incorporation but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit the
exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a), the Company shall: (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current
Value”) over (2) the Purchase Price (such excess, the “Spread”), and (B) with respect to each Right, make adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a
reduction in the Purchase Price, (3) Common Stock or other equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock which the Board of Directors of the Company has deemed to have the same value
as shares of Common Stock (such shares of preferred stock, “common stock equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having an aggregate value equal to the Current Value,
where such aggregate value has been determined by the Board of Directors of the Company based upon the advice of a nationally recognized investment banking firm selected by the Board of Directors of the Company; provided, however, if
the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right
of redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and
without requiring payment of the Purchase Price, shares of Common Stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board of Directors of the Company shall
determine in good faith that it is likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, the thirty (30) day period set forth above may be extended to the extent necessary, but
not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek shareholder approval for the authorization of such additional shares (such period, as it may be extended, the “Substitution
Period”). To the extent that the Company determines that some 

  

 14 

 
action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e) hereof,
that such action shall apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Stock shall be the current market price (as determined pursuant to
Section 11(d) hereof) per share of the Common Stock on the Section 11(a)(ii) Trigger Date and the value of any “common stock equivalent” shall be deemed to have the same value as the Common Stock on such date. 
  
 (b) In case the Company shall fix a record date for the
issuance of rights, options or warrants to all holders of Preferred Stock entitling them to sub scribe for or purchase (for a period expiring within forty-five (45) calendar days after such record date) Preferred Stock (or shares having the same
rights, privileges and preferences as the shares of Preferred Stock (“equivalent preferred stock”)) or securities convertible into Preferred Stock or equivalent preferred stock at a price per share of Preferred Stock or per share of
equivalent preferred stock (or having a conversion price per share, if a security convertible into Preferred Stock or equivalent preferred stock) less than the current market price (as determined pursuant to Section 11(d) hereof) per share of
Preferred Stock on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the
number of shares of Preferred Stock outstanding on such record date, plus the number of shares of Preferred Stock which the aggregate offering price of the total number of shares of Preferred Stock and/or equivalent preferred stock so to be offered
(and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market price, and the denominator of which shall be the number of shares of Preferred Stock outstanding on such record
date, plus the number of additional shares of Preferred Stock and/or equivalent preferred stock to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible). In case such
subscription price may be paid by delivery of consideration part or all of which may be in a form other than cash, the value of such consideration shall be as deter mined in good faith by the Board of Directors of the Company, whose determination
shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. Shares of Preferred Stock owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be
in effect if such record date had not been fixed. 
  
 (c) In case the Company shall fix a record date for a distribution to all holders of Preferred Stock (including any such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of
evidences of indebtedness, cash (other than a regular quarterly cash dividend out of the earnings or retained earnings of the Company), assets (other than a dividend payable in Preferred Stock, but including any dividend 

  

 15 

 
payable in stock other than Preferred Stock) or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to
be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the current market price (as determined pursuant to Section
11(d) hereof) per share of Preferred Stock on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and
shall be conclusive for all purposes) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a share of Preferred Stock and the denominator of which shall be such
current market price (as determined pursuant to Section 11(d) hereof) per share of Preferred Stock on such record date. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such distribution is not
so made, the Purchase Price shall be adjusted to be the Purchase Price which would have been in effect if such record date had not been fixed. 
  
 (d) (i) For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the
“current market price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such Common Stock for the thirty (30) consecutive Trading Days (as such term is hereinafter defined)
immediately prior to such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, the “current market price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per
share of such Common Stock for the ten (10) consecutive Trading Days immediately following such date; provided, however, that in the event that the current market price per share of the Common Stock is determined during a period
following the announcement by the issuer of such Common Stock of (A) a dividend or distribution on such Common Stock payable in shares of such Common Stock or securities convertible into shares of such Common Stock (other than the Rights), or (B)
any subdivision, combination or reclassification of such Common Stock, and prior to the expiration of the requisite thirty (30) Trading Day or ten (10) Trading Day period, as set forth above, after the ex-dividend date for such dividend or
distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the “current market price” shall be properly adjusted to take into account ex-dividend trading. The closing price for each
day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading or, if the shares of Common Stock are not listed or admitted to trading on any
national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and the low asked prices in the over-the-counter market, as reported by the Nasdaq Stock Market (“Nasdaq”) or such other system then in
use, or, if on any such date the shares of Common Stock are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Stock selected by the Board of
Directors. If on any such date no market maker is making a market in the Common Stock, the fair value of such shares on such date as determined in good faith by the Board of Directors shall be used. The term “Trading Day” shall mean a day
on which Nasdaq or any national securities exchange on which the shares of Common Stock are listed or admitted to 

  

 16 

 
trading is open for the transaction of business or, if the shares of Common Stock are not listed or admitted to trading on Nasdaq or any national securities
exchange, a Business Day. If the Common Stock is not publicly held or not so listed or traded, “current market price” per share shall mean the fair value per share as determined in good faith by the Board of Directors, whose determination
shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
  
 (ii) For the purpose of any computation hereunder, the “current market price” per share of Preferred Stock shall be determined
in the same manner as set forth above for the Common Stock in clause (i) of this Section 11(d) (other than the last sentence thereof). If the current market price per share of Preferred Stock cannot be determined in the manner provided above or if
the Preferred Stock is not publicly held or listed or traded in a manner described in clause (i) of this Section 11(d), the “current market price” per share of Preferred Stock shall be conclusively deemed to be an amount equal to 1,000 (as
such number may be appropriately adjusted for such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock occurring after the date of this Agreement) multiplied by the current market price per share of the
Common Stock. If neither the Common Stock nor the Preferred Stock is publicly held or so listed or traded, “current market price” per share of the Preferred Stock shall mean the fair value per share as determined in good faith by the Board
of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. For all purposes of this Agreement, the “current market price” of one one-thousandth of a share of
Preferred Stock shall be equal to the “current market price” of one share of Preferred Stock divided by 1,000. 
  
 (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would
require an in crease or decrease of at least one percent (1%) in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest ten-millionth of a share of Preferred Stock, or hundred-thousandth of a share of Common Stock or other security, as the
case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction which mandates such adjustment, or (ii)
the Expiration Date. 
  
 (f) If as a result of an
adjustment made pursuant to Section 11(a)(ii) or Section 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any securities other than Preferred Stock, thereafter the number of such other securities so
receivable upon exercise of any Right and the Purchase Price thereof shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Stock contained in
Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k) and (m), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms to any such other securities; provided, however,
that the Company shall not be liable for its inability to reserve and keep available for issuance upon exercise of the Rights pursuant to Section 11(a)(ii) a number of shares of Common Stock greater than the 

  

 17 

 
number then authorized by the Company’s certificate of incorporation but not outstanding or reserved for other purposes. 
  
 (g) All Rights originally issued by the Company subsequent
to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of one one-thousandths of a share of Preferred Stock purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein. 
  
 (h) Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and (c), each Right outstanding
immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a share of Preferred Stock (calculated to the nearest ten-millionth) obtained
by (i) multiplying (x) the number of one one-thousandths of a share covered by a Right immediately prior to this adjustment, by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and (ii) dividing the
product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
  
 (i) The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in lieu of any
adjustment in the number of one one-thousandths of a share of Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of one
one-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the
nearest one-hundred-thousandth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a
public announcement of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but, if the Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights
pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional
Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed shall
be issued, executed and countersigned in the manner provided for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date
specified in the public announcement. 
  

 18 

 (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-thousandths of a share of Preferred Stock issuable upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per one one-thousandth of a share and the number of one
one-thousandths of a share which were expressed in the initial Rights Certificates issued hereunder. 
  
 (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the then stated value, if any, of the number
of one one-thousandths of a share of Preferred Stock issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue
such number of one one-thousandths of a share of fully paid and nonassessable Preferred Stock at such adjusted Purchase Price. 
  
 (l) In any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for
a specified event, the Company may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of one one-thousandths of a share of Preferred Stock and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above the number of one one-thousandths of a share of Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of
the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares
(fractional or otherwise) or securities upon the occurrence of the event requiring such adjustment. 
  
 (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase
Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that in their good faith judgment the Board of Directors of the Company shall determine to be advisable in order that any (i) consolidation or
subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less than the current market price, (iii) issuance wholly for cash of shares of Preferred Stock or securities which by their terms are convertible
into or exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such
stockholders. 
  
 (n) The Company covenants and
agrees that it shall not, at any time after the Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o) hereof), (ii) merge with or into any other Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions, assets or earning
power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o) hereof), if (x) at the time of or immediately after such consolidation, merger or sale there are any rights, warrants or other instruments or securities 

  

 19 

 
outstanding or agreements in effect that would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior
to, simultaneously with or immediately after such consolidation, merger or sale, the shareholders of the Person who constitutes, or would constitute, the “Principal Party” for purposes of Section 13(a) hereof shall have received a
distribution of Rights previously owned by such Person or any of its Affiliates and Associates. The Company shall not consummate any such consolidation, merger, sale or transfer unless prior thereto the Company and such other Person shall have
executed and delivered to the Rights Agent a supplemental agreement evidencing compliance with this Section 11(n). 
  
 (o) The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23, Section 24 or
Section 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the
Rights. 
  
 (p) Anything in this Agreement to the
contrary notwithstanding, in the event that the Company shall at any time after the Record Date and prior to the Distribution Date (i) declare or pay any dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii)
subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number of shares, the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered
thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying the number of
Rights associated with each share of Common Stock immediately prior to such event by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to the occurrence of such event and the denominator
of which shall be the number of shares of Common Stock outstanding immediately following the occurrence of such event. 
  
 Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or Section 13
hereof, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment, (b) promptly file with the Rights Agent, and with each transfer agent for the Preferred
Stock and the Common Stock, a copy of such certificate, and (c) mail a brief summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution Date, to each holder of a certificate representing shares of Common Stock) in
accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of any adjustment unless and until it shall have
received such certificate. 
  
 Section 13. Consolidation,
Merger or Sale or Transfer of Assets or Earning Power. 
  
 (a) In the event that, at any time after a Person has become an Acquiring Person, (x) the Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company in a
transaction that complies with Section 11(o) hereof), and the Company shall not be the continuing or surviving corporation of such consolidation or merger, 

  

 20 

 
(y) any Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o) hereof) shall consolidate with, or merge with or
into, the Company, and the Company shall be the continuing or surviving corporation of such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding shares of Common Stock shall be changed into or
exchanged for stock or other securities of any other Person or cash or any other property (other than a merger or consolidation in which the shares of Common Stock of the Company outstanding immediately prior to such merger or consolidation are
changed into or exchanged for shares of common stock representing more than 75% of the voting power of such other Person), or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in
one transaction or a series of related transactions, assets or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any
Subsidiary of the Company in one or more transactions each of which complies with Section 11(o) hereof), then, and in each such case, proper provision shall be made so that: (i) each holder of a Right, except as provided in Section 7(e) hereof,
shall thereafter have the right to receive, upon the exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, such number of validly authorized and issued, fully paid, non-assessable and freely tradable
shares of Common Stock of the Principal Party (as such term is hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying the then
current Purchase Price by the number of one one-thousandths of a share of Preferred Stock for which a Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the
first occurrence of a Section 13 Event, multiplying the number of such one one-thousandths of a share for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect
immediately prior to such first occurrence), and (2) dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement) by
50% of the current market price (determined pursuant to Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party on the date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for,
and shall assume, by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall thereafter be deemed to refer to such Principal Party, it being specifically
intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section 13 Event; (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a
sufficient number of shares of its Common Stock) in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its
shares of Common Stock thereafter deliverable upon the exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof shall be of no effect following the first occurrence of any Section 13 Event. 
  
 (b) “Principal Party” shall mean 
  
 (i) in the case of any transaction described in clause (x)
or (y) of the first sentence of Section 13(a), the Person that is the issuer of any securities into which shares of 

  

 21 

 
Common Stock of the Company are converted in such merger or consolidation, and if no securities are so issued, the Person that is the other party to such
merger or consolidation; and 
  
 (ii) in the case
of any transaction described in clause (z) of the first sentence of Section 13(a), the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions; provided,
however, that in any such case, (1) if the Common Stock of such Person is not at such time and has not been continuously over the preceding twelve (12) month period registered under Section 12 of the Exchange Act, and such Person is a direct
or indirect Subsidiary of another Person the Common Stock of which is and has been so registered, “Principal Party” shall refer to such other Person; (2) in case such Person is a Subsidiary, directly or indirectly, of more than one Person,
the Common Stocks of two or more of which are and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer of the Common Stock having the greatest aggregate market value; and (3) in case such Person
is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in (1) and (2) above shall apply to each of the chains of ownership having an
interest in such joint venture as if such party were a “Subsidiary” of both or all of such joint ventures and the Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in the same ratio as their
direct or indirect interests in such Person bear to the total of such interests. 
  
 (c) The Company shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient
number of authorized shares of its Common Stock which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and such Principal Party shall
have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this Section 13 and further providing that, as soon as practicable after the date of any consolidation, merger or
sale of assets mentioned in paragraph (a) of this Section 13, the Principal Party will: 
  
 (i) prepare and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon exercise of
the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements
of the Act) until the Expiration Date; 
  
 (ii)
use its best efforts to qualify or register the Rights and the securities purchasable upon exercise of the Rights under the blue sky laws of such jurisdictions as may be necessary or appropriate; and 
  
 (iii) deliver to holders of the Rights historical financial
statements for the Principal Party and each of its Affiliates that comply in all respects with the requirements for registration on Form 10 under the Exchange Act. 
  
 The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. In the event
that a Section 13 Event shall occur at any time after the 

  

 22 

 
occurrence of a Section 11(a)(ii) Event, the Rights which have not theretofore been exercised shall thereafter become exercisable in the manner described in
Section 13(a). 
  
 Section 14. Fractional Rights and Fractional
Shares. 
  
 (a) The Company shall not be
required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(i) or (p) hereof, or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to
the registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing price of the Rights for any day
shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the principal national securities exchange on which the Rights are listed or admitted to trading, or if the Rights are not listed or admitted to trading on any national securities exchange, the
last quoted price or, if not so quoted, the average of the high bid and the low asked prices in the over-the- counter market, as reported by Nasdaq or such other system then in use or, if on any such date the Rights are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board of Directors. If on any such date no such market maker is making a market in the Rights,
the fair value of the Rights on such date as determined in good faith by the Board of Directors shall be used. 
  
 (b) The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples
of one one- thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates that evidence fractional shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock). In lieu of fractional shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock), the Company shall pay to the registered holders of Rights Certificates at the
time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one one-thousandth of a share of Preferred Stock. For purposes of this Section 14(b), the current market value of one
one-thousandth of a share of Preferred Stock shall be one one-thousandth of the closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of such exercise.

  
 (c) Following the occurrence of a Triggering
Event, the Company shall not be required to issue fractions of shares of Common Stock upon exercise of the Rights or to distribute certificates which evidence fractional shares of Common Stock. In lieu of fractional shares of Common Stock, the
Company shall pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market price of one (1) share of Common Stock (as determined
pursuant to Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise. 
  

 23 

 (d) The holder of a Right by the acceptance of the Rights expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise of a Right, except as permitted by this Section 14. 
  
 Section 15. Rights of Action. All rights of action in respect of this Agreement, except the rights of action expressly given to the Rights Agent in
Section 18 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of the Common Stock); and any registered holder of any Rights Certificate (or, prior to the
Distribution Date, of the Common Stock), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the Common Stock), may, in his own behalf and for his own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in
this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and shall be
entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of any Person subject to this Agreement. 
  
 Section 16. Agreement of Rights Holders. Every holder of a Right by
accepting the same consents and agrees with the Company and the Rights Agent and with every other holder of a Right that: 
  
 (a) prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of Common Stock; 
  
 (b) after the Distribution Date, the Rights Certificates are
transferable only on the registry books of the Rights Agent if surrendered at the office of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and
certificates duly completed and fully executed; 
  
 (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the person in whose name a Rights Certificate (or, prior to the Distribution Date, the associated Common Stock certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby (not withstanding any notations of ownership or writing on the Rights Certificates or the associated Common Stock certificate made by anyone other than the Company or the
Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent, subject to the last sentence of Section 7(e) hereof, shall be required to be affected by any notice to the contrary; and 
  
 (d) notwithstanding anything in this Agreement to the
contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental 

  

 24 

 
authority, prohibiting or otherwise restraining performance of such obligation; provided, however, the Company must use its best efforts to
prevent the issuance of any such order, decree or ruling and to have any such order, decree or ruling lifted or otherwise overturned as soon as possible. 
  
 Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Rights Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the number of one one- thousandths of a share of Preferred Stock or any other securities of the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor
shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in accordance with the provisions hereof. 
  
 Section 18. Concerning the Rights Agent. 
  
 (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and disbursements and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of
its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability or expense, incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent, for
anything done or omitted by the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in the premises. 
  
 (b) The Rights Agent shall be protected and shall incur no
liability for or in respect of any action taken, suffered or omitted by it in connection with its administration of this Agreement in reliance upon any Rights Certificate or certificate for Common Stock or for other securities of the Company,
instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary,
verified or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20 hereof. 
  
 Section 19. Merger or Consolidation or Change of Name of Rights Agent. 
  
 (a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it
may be consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any corporation succeeding to the corporate trust or stock transfer business of the
Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of 

  

 25 

 
the parties hereto; provided, however, that such corporation would be eligible for appointment as a successor Rights Agent under the provisions
of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt
the countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such
Rights Certificates either in the name of the predecessor or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

 
 (b) In case at any time the name of the Rights Agent
shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at
that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full
force provided in the Rights Certificates and in this Agreement. 
  
 Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the holders of Rights Certificates, by
their acceptance thereof, shall be bound: 
  
 (a)
The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good
faith and in accordance with such opinion. 
  
 (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of
“current market price”) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by the Chairman of the Board, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights
Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate. 
  
 (c) The Rights Agent shall be liable hereunder only for its
own gross negligence, bad faith or willful misconduct. 
  
 (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates or be required to verify the same (except as to its countersignature on such
Rights Certificates), but all such statements and recitals are and shall be deemed to have been made by the Company only. 
  

 26 

 (e) The Rights Agent shall not be under any responsibility in respect of the validity of
this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment required under the provisions of Section 11, Section 13 or Section 24 hereof or responsible
for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates after receipt of a
certificate describing any such adjustment, delivered pursuant to Section 12); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock or Preferred Stock
to be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Common Stock or Preferred Stock will, when so issued, be validly authorized and issued, fully paid and nonassessable. 
  
 (f) The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights
Agent of the provisions of this Agreement. 
  
 (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from the Chairman of the Board, the President, any Vice President, the Secretary, any Assistant Secretary,
the Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered to be taken by it in good faith in
accordance with instructions of any such officer. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights
Agent with respect to its duties or obligations under this Rights Agreement and the date on and/or after which such action shall be taken or omitted and the Rights Agent shall not be liable for any action taken or omitted in accordance with a
proposal included in any such application on or after the date specified therein (which date shall not be less than five Business Days after the date any such officer actually receives such application, unless any such officer shall have consented
in writing to an earlier date) unless, prior to taking or omitting any such action, the Rights Agent has received written instructions in response to such application specifying the action to be taken or omitted. 
  
 (h) The Rights Agent and any stockholder, director, officer
or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company
or otherwise act as fully and freely as though it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity. 
  
 (i) The Rights Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or 

  

 27 

 
agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any
loss to the Company resulting from any such act, default, neglect or misconduct; provided, however, reasonable care was exercised in the selection and continued employment thereof. 
  
 (j) No provision of this Agreement shall require the Rights
Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or
adequate indemnification against such risk or liability is not reasonably assured to it. 
  
 (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the
form of assignment or form of election to purchase, as the case may be, has not been completed, the Company and the Rights Agent will deem the beneficial owner of the rights evidenced by such Rights Certificate to be an Acquiring Person or an
Affiliate or Associate thereof and such assignment or election to purchase will not be honored. 
  
 Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this
Agreement upon thirty (30) days’ notice in writing mailed to the Company, and to each transfer agent of the Common Stock and Preferred Stock, by registered or certified mail, and to the holders of the Rights Certificates by first-class mail.
The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock and
Preferred Stock, by registered or certified mail, and to the holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor
to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by the Company), then any registered holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a corporation organized and doing business under the laws of the United States (or of any state of
the United States) in good standing, which is authorized under such laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as
Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an affiliate of a corporation described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and
deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent
of the Common Stock and the Preferred Stock, and mail a notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any 

  

 28 

 
notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be. 
  
 Section 22. Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates
evidencing Rights in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Rights Certificates
made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to the redemption or expiration of the Rights, the Company (a) shall,
with respect to shares of Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement, or upon the exercise, conversion or exchange of securities issued by the Company prior to the Distribution
Date, and (b) may, in any other case, if deemed necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided,
however, that (i) no such Rights Certificate shall be issued if, and to the extent that, the Company shall be advised by counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the
Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
  
 Section 23. Redemption and Termination. 
  
 (a) The Board of Directors of the Company may, at its
option, at any time prior to the earlier of (i) the close of business on the tenth Business Day (or such later date as may be determined by the Board of Directors of the Company pursuant to clause (i) of the first sentence of Section 3(a) with
respect to the Distribution Date) following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the close of business on the tenth Business Day following the Record Date) or (ii) the Final
Expiration Date, redeem all but not less than all the then outstanding Rights at a redemption price of $.01 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the
date hereof (such redemption price being hereinafter referred to as the “Redemption Price”). The redemption of the Rights by the Board may be made effective at such time, on such basis and with such conditions as the Board of Directors in
its sole discretion may establish. The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the “current market price,” as defined in Section 11(d)(i) hereof, of the Common Stock at the time of
redemption) or any other form of consideration, or any combination of any of the foregoing, deemed appropriate by the Board of Directors of the Company. Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be
exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company’s right of redemption hereunder has expired. 
  
 (b) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights, evidence of which shall
have been filed with the Rights 

  

 29 

 
Agent and without any further action and without any notice, the right to exercise the Rights shall terminate and the only right thereafter of the holders of
Rights shall be to receive the Redemption Price for each Right so held. Promptly after the action of the Board of Directors ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders
of the then outstanding Rights by mailing such notice to all such holders at each holder’s last address as it appears upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the Transfer Agent
for the Common Stock. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price
will be made. 
  
 (c) In the event of a
redemption of the Rights in accordance with this Agreement, the Company may, at its option, discharge all of its obligations with respect to the Rights by (i) issuing a press release announcing the manner of redemption of the Rights in accordance
with this Agreement and (ii) mailing payment of the Redemption Price to the registered holders of the Rights at their last addresses as they appear on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books
of the Transfer Agent of the Common Shares, and upon such action, all outstanding Rights and Right Certificates shall be null and void without any further action by the Company. 
  
 Section 24. Exchange. 
  
 (a) The Board of Directors of the Company may, at its option, at any time after a Section 11(a)(ii) Event, exchange all or part of the
then outstanding and exercisable Rights (which (i) shall not include Rights that have become void pursuant to the provisions of Section 7(e) hereof, and (ii) shall include, without limitation, any Rights issued after the Distribution Date) for
shares of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter
referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at any time after any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan of the Company or any such Subsidiary, or any entity holding Common Stock for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or
more of the shares of Common Stock then outstanding. 
  
 (b) Immediately upon the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to subsection (a) of this Section 24, evidence of which shall have been filed with the Rights Agent, and without any
further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of shares of Common Stock equal to the number of such Rights held by
such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity of such
exchange. The Company promptly shall mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is 

  

 30 

 
mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange shall state the
method by which the exchange of shares of Common Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights
(other than Rights which have become void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights. 
  
 (c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Stock (or equivalent preferred
stock, as such term is defined in Section 11(b) hereof) for shares of Common Stock exchangeable for Rights, at the initial rate of one one-thousandth of a share of Preferred Stock (or equivalent preferred stock) for each share of Common Stock, as
appropriately adjusted to reflect adjustments in the voting rights of the Preferred Stock pursuant to Section 3(A) of the Certificate of Designations attached hereto as Exhibit A, so that the fraction of a share of Preferred Stock (or
equivalent preferred stock) delivered in lieu of each share of Common Stock shall have the same voting rights as one share of Common Stock. 
  
 (d) In the event that there shall not be sufficient shares of Common Stock or Preferred Stock issued but not outstanding or authorized but
unissued to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional shares of Common Stock or Preferred Stock for issuance upon exchange of
the Rights. 
  
 (e) The Company shall not be
required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional shares of Common Stock. In lieu of such fractional shares of Common Stock, there shall be paid to the registered holders of the Right
Certificates with regard to which such fractional shares of Common Stock would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole share of Common Stock. For the purposes of this subsection (e),
the current market value of a whole share of Common Stock shall be the closing price per share of Common Stock (as determined pursuant to the second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange
pursuant to this Section 24. 
  
 Section 25. Notice of Certain
Events. 
  
 (a) In case the Company shall
propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of any class to the holders of Preferred Stock or to make any other distribution to the holders of Preferred Stock (other than a regular quarterly cash
dividend out of earnings or retained earnings of the Company), or (ii) to offer to the holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or shares of stock of any class or any
other securities, rights or options, or (iii) to effect any reclassification of its Preferred Stock (other than a reclassification involving only the subdivision of outstanding shares of Preferred Stock), or (iv) to effect any consolidation or
merger into or with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or
other transfer), in one transaction or a series 

  

 31 

 
of related transactions, of more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies with Section 11(o) hereof), or (v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the
Company shall give to each holder of a Rights Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution
of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the shares of Preferred Stock,
if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least twenty (20) days prior to the record date for determining holders of the shares of Preferred Stock for purposes
of such action, and in the case of any such other action, at least twenty (20) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of the shares of Preferred Stock, whichever shall be the
earlier. 
  
 (b) In case a Section 11(a)(ii)
Event shall occur, then, in any such case, (i) the Company shall as soon as practicable thereafter give to each holder of a Rights Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of the occurrence of such
event, which shall specify the event and the consequences of the event to holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Stock shall be deemed thereafter to refer also to Common
Stock and/or, if appropriate, other securities. 
  
 Section 26.
Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Rights Agent) as follows: 
  
 BJ’s Wholesale Club, Inc. 
 One Mercer Road 
 Natick, MA 01760 
 Attention: President

  
 Subject to the provisions of Section 21, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in
writing with the Company) as follows: 
  
 The Bank of New York

 (a NY Trust company) 
 Tenders
and Exchange Administration 
 101 Barclay Street (11E) 
 New York, NY 10286 
  

 32 

 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of
any Rights Certificate (or, if prior to the Distribution Date, to the holder of certificates representing shares of Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the
address of such holder as shown on the registry books of the Company. 
  
 Section 27. Supplements and Amendments. Except as provided in the penultimate sentence of this Section 27, for so long as the Rights are then redeemable, the Company may, in its sole and absolute discretion, and the Rights Agent
shall, if the Company so directs, supplement or amend any provision of this Agreement in any respect without the approval of any holders of the Rights. At any time when the Rights are no longer redeemable, except as provided in the penultimate
sentence of this Section 27, the Company may, and the Rights Agent shall, if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights in order (i) to cure any ambiguity or (ii) to correct or supplement
any provision contained herein which may be defective or inconsistent with any other provisions herein, provided that no such supplement or amendment shall adversely affect the interests of the holders of Rights as such (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of this
Section 27, the Rights Agent shall execute such supplement or amendment. Notwithstanding anything contained in this Agreement to the contrary, no supplement or amendment shall be made which changes the Redemption Price or the Final Expiration Date.
Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock. 
  
 Section 28. Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and
inure to the benefit of their respective successors and assigns hereunder. 
  
 Section 29. Actions by the Board of Directors, etc. The Board of Directors of the Company shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers
specifically granted to the Board or to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all
determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend this Agreement). All such actions, calculations, interpretations and determinations
(including, for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and
all other parties, and (y) not subject the Board to any liability to the holders of the Rights. 
  
 Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of 

  

 33 

 
the Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Stock). 
  
 Section 31. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court or
authority to be invalid, void or unenforceable and the Board determines in its good faith judgment that severing the invalid, void or unenforceable language from this Agreement would adversely affect the purpose or effect of this Agreement, the
right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until the close of business on the tenth day following the date of such determination by the Board of Directors of the Company. 
  
 Section 32. Governing Law. This Agreement, each Right and each Rights
Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts made and to be
performed entirely within such State. 
  
 Section 33.
Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

  
 Section 34. Descriptive Headings. Descriptive headings
of the several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  
 [remainder of page intentionally left blank] 
  

 34 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and their
respective corporate seals to be hereunto affixed and attested, all as of the day and year first above written. 
  

	 Attest:
	 	 	 	 BJ’S WHOLESALE CLUB, INC.

					
	By:	 	/s/    KELLYE L. WALKER        	 	 	 	By:	 	/s/    MICHAEL T. WEDGE        
	 	
	 	 	 	 	

	 Name:
	 	Kellye L. Walker	 	 	 	 Name:
	 	Michael T. Wedge
	 Title:
	 	Secretary	 	 	 	 Title:
	 	President

  

	 Attest:
	 	 	 	 THE BANK OF NEW YORK

					
	By:	 	/s/    LUIS C. ORTIZ        	 	 	 	By:	 	/s/    EON CANZIUS        
	 	
	 	 	 	 	

	 Name:
	 	Luis C. Ortiz	 	 	 	 Name:
	 	Eon Canzius
	 Title:
	 	Vice President	 	 	 	 Title:
	 	Vice President

  

 35 

 EXHIBIT A 
  

FORM OF 
 CERTIFICATE OF DESIGNATIONS OF

 SERIES A JUNIOR PARTICIPATING PREFERRED STOCK 
 OF 
  
 BJ’S WHOLESALE CLUB,
INC. 
  
 BJ’s Wholesale Club, Inc., a corporation
organized and existing under the laws of the State of Delaware (hereinafter called the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation by unanimous written consent in
lieu of a meeting on July 10, 1997: 
  
 RESOLVED: That pursuant to
the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors” or the “Board”) in accordance with the provisions of the Certificate of Incorporation, as amended, the
Board of Directors hereby creates a series of Preferred Stock, $.01 par value per share (the “Preferred Stock”), of the Corporation and hereby states the designation and number of shares, and fixes the relative rights, preferences and
limitations thereof as follows: 
  
 Series A Junior Participating
Preferred Stock: 
  
 Section 1. Designation and Amount. The
shares of such series shall be designated as “Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock”) and the number of shares constituting the Series A Preferred Stock shall be one hundred thousand
(100,000). Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares
then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series A Preferred Stock.

  
 Section 2. Dividends and Distributions. 
  
 (A) Subject to the rights of the holders of any shares of any series of
Preferred Stock (or any similar stock) ranking prior and superior to the Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock, in preference to the holders of Common Stock, par value $.01 per share
(the “Common Stock”), of the Corporation, and of any other junior stock, shall be entitled to receive, when, as and if declared by the Board of Directors 

  

 
out of funds of the Corporation legally available for the payment of dividends, quarterly dividends payable in cash on the last day of each fiscal quarter of
the Corporation in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A
Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $10 or (b) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000
times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or
otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A
Preferred Stock. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled
immediately prior to such event under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. In the event the Corporation shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of
Series A Preferred Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a
greater or lesser number of shares of Series A Preferred Stock, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under clause (b) of the first sentence of this
Section 2(A) shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred Stock that were outstanding immediately prior to such event and the denominator of which is the number of
shares of Series A Preferred Stock outstanding immediately after such event. 
  
 (B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section immediately after it declares a dividend or distribution on the Common Stock
(other than a dividend payable in shares of Common Stock) and the Corporation shall pay such dividend or distribution on the Series A Preferred Stock before the dividend or distribution declared on the Common Stock is paid or set apart;
provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of
$10 per share on the Series A Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 
  
 (C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first 

  

 2 

 
Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of
issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than
the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 
  
 Section 3. Voting Rights. The holders of shares of Series A Preferred
Stock shall have the following voting rights: 
  
 (A) Subject to
the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall
at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a
dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event
shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. In the event the Corporation shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of Series A Preferred Stock, or effect a subdivision, combination or
consolidation of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a greater or lesser number of shares of Series A Preferred Stock, then in
each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of
shares of Series A Preferred Stock that were outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred Stock outstanding immediately after such event. 
  
 (B) Except as otherwise provided herein, in the Certificate of Incorporation
or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of
stockholders of the Corporation. 
  
 (C) (i) If at any time
dividends on any Series A Preferred Stock shall be in arrears in an amount equal to six quarterly dividends thereon, the holders of the Series A Preferred Stock, voting as a separate series from all other series of Preferred Stock and classes of
capital stock, shall be entitled to elect two members of the Board of Directors in addition to any Directors elected by any other series, class or classes of securities and the authorized number of 

  

 3 

 
Directors will automatically be increased by two. Promptly thereafter, the Board of Directors of this Corporation shall, as soon as may be practicable, call
a special meeting of holders of Series A Preferred Stock for the purpose of electing such members of the Board of Directors. Said special meeting shall in any event be held within 45 days of the occurrence of such arrearage. 
  
 (ii) During any period when the holders of Series A
Preferred Stock, voting as a separate series, shall be entitled and shall have exercised their right to elect two Directors, then and during such time as such right continues (a) the then authorized number of Directors shall be increased by two, and
the holders of Series A Preferred Stock, voting as a separate series, shall be entitled to elect the additional Directors so provided for, and (b) each such additional Director shall not be a member of any existing class of the Board of Directors,
but shall serve until the next annual meeting of stockholders for the election of Directors, or until his successor shall be elected and shall qualify, or until his right to hold such office terminates pursuant to the provisions of this Section
3(C). 
  
 (iii) A Director elected pursuant to
the terms hereof may be removed with or without cause by the holders of Series A Preferred Stock entitled to vote in an election of such Director. 
  
 (iv) If, during any interval between annual meetings of stockholders for the election of Directors and while the holders of Series A
Preferred Stock shall be entitled to elect two Directors, there is no such Director in office by reason of resignation, death or removal, then, promptly thereafter, the Board of Directors shall call a special meeting of the holders of Series A
Preferred Stock for the purpose of filling such vacancy and such vacancy shall be filled at such special meeting. Such special meeting shall in any event be held within 45 days of the occurrence of such vacancy. 
  
 (v) At such time as the arrearage is fully cured, and all
dividends accumulated and unpaid on any shares of Series A Preferred Stock outstanding are paid, and, in addition thereto, at least one regular dividend has been paid subsequent to curing such arrearage, the term of office of any Director elected
pursuant to this Section 3(C), or his successor, shall automatically terminate, and the authorized number of Directors shall automatically decrease by two, the rights of the holders of the shares of the Series A Preferred Stock to vote as provided
in this Section 3(C) shall cease, subject to renewal from time to time upon the same terms and conditions, and the holders of shares of the Series A Preferred Stock shall have only the limited voting rights elsewhere herein set forth. 
  
 (D) Except as set forth herein, or as otherwise provided by law, holders of
Series A Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action. 
  

 4 

 Section 4. Certain Restrictions. 
  
 (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation shall not: 
  
 (i) declare or pay dividends, or make any other
distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock; 
  

(ii) declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or
upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts
to which the holders of all such shares are then entitled; 
  
 (iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock,
provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon dissolution,
liquidation or winding up) to the Series A Preferred Stock; or 
  
 (iv) redeem or purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity with the Series A Preferred Stock, except in accordance with a purchase
offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and
preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes. 
  
 (B) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration
any shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 
  
 Section 5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or otherwise acquired by the
Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new
series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation, or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as
otherwise required by law. 
  
 Section 6. Liquidation,
Dissolution or Winding Up. 
  
 (A) Upon any liquidation,
dissolution or winding up of the Corporation, no distribution shall be made (1) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior
thereto, the holders of shares of Series A Preferred Stock shall have received $1000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, provided
that the holders of shares of Series A Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for 

  

 5 

 
adjustment hereinafter set forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (2) to the
holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock and all such parity stock in
proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. 
  
 (B) Neither the consolidation, merger or other business combination of the Corporation with or into any other corporation nor the sale, lease, exchange or
conveyance of all or any part of the property, assets or business of the Corporation shall be deemed to be a liquidation, dissolution or winding up of the Corporation for purposes of this Section 6. 
  
 (C) In the event the Corporation shall at any time declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the proviso in clause (1) of
paragraph (A) of this Section 6 shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares
of Common Stock that were outstanding immediately prior to such event. In the event the Corporation shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of Series A Preferred Stock, or effect a subdivision,
combination or consolidation of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a greater or lesser number of shares of Series A Preferred
Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the proviso in clause (1) of paragraph (A) of this Section 6 shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred Stock that were outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred Stock
outstanding immediately after such event. 
  
 Section 7.
Consolidation, Merger, etc. Notwithstanding anything to the contrary contained herein, in case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for
or changed into other stock or securities, cash and/or any other property, then in any such case each share of Series A Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for
adjustment hereinafter set forth, equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In
the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of
Series A Preferred Stock shall be adjusted by 

  

 6 

 
multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. In the event the Corporation shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of
Series A Preferred Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a
greater or lesser number of shares of Series A Preferred Stock, then in each such case the amount set forth in the first sentence of this Section 7 with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred Stock that were outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred Stock
outstanding immediately after such event. 
  
 Section 8. No
Redemption. The shares of Series A Preferred Stock shall not be redeemable. 
  
 Section 9. Rank. The Series A Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets, junior to all series of any other class of the Preferred Stock issued either
before or after the issuance of the Series A Preferred Stock, unless the terms of any such series shall provide otherwise. 
  
 Section 10. Amendment. At such time as any shares of Series A Preferred Stock are outstanding, the Certificate of Incorporation, as amended, of the
Corporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least
two-thirds of the outstanding shares of Series A Preferred Stock, voting together as a single class. 
  
 Section 11. Fractional Shares. Series A Preferred Stock may be issued in fractions of a share which shall entitle the holder, in proportion to such
holder’s fractional shares, to exercise voting rights, receive dividends, participate in distributions and have the benefit of all other rights of holders of Series A Preferred Stock. 
  
  

 7 

 EXHIBIT B 
  

[Form of Rights Certificate] 
  

	 Certificate No. R-
	 	 	 	             Rights

  
 NOT EXERCISABLE AFTER JULY 10, 2007 OR
EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS
SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR
AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF
SUCH AGREEMENT.]1 
  
 BJ’S WHOLESALE CLUB, INC. 
  
 Rights Certificate 
  
 This certifies that
                                        
    , or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Amended and Restated Rights
Agreement, dated as of November         , 2003 (the “Rights Agreement”), between BJ’s Wholesale Club, Inc., a Delaware corporation (the “Company”), and The Bank of New York, a
national banking association (the “Rights Agent”), to purchase from the Company after the Distribution Date (as such term is defined on the Rights Agreement) and at any time prior to 5:00 p.m. (New York City time) on July 10, 2007 at the
office of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth of a fully paid, non-assessable share of Series A Junior Participating Preferred Stock (the “Preferred Stock”) of the Company,
$.01 par value per share, at a purchase price of $120 in cash per one one-thousandth of a share (the “Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related
Certificate duly executed. The number of Rights evidenced by this Rights Certificate (and the number of one one-thousandth of a share of Preferred Stock which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth
above, are the number and Purchase Price as of the close of business on July 10, 1997, based on the Preferred Stock as constituted at such date. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such
terms in the Rights Agreement. 

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

  

 Front Side of Rights Certificate 

 Upon the occurrence of a Section 11(a)(ii) Event, if the Rights evidenced by this Rights Certificate are
beneficially owned by (i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Associate or Affiliate who becomes a
transferee after the Acquiring Person becomes an Acquiring Person, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a person who, concurrently with or after such transfer, became an Acquiring Person, or an
Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event. 
  
 As provided in the Rights Agreement, the Purchase Price and the number and
kind of shares of Preferred Stock or other securities which may be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the happening of certain events, including Section
11(a)(ii) Events. 
  
 This Rights Certificate is subject to all of
the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of
the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such
Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal offices of the Company and are available upon written request to the Company. 
  
 This Rights Certificate, with or without other Rights Certificates, upon
surrender at the office of the Rights Agent designated for such purpose, with the Form of Election and Certificate set forth on the reverse side duly executed, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and
date evidencing Rights entitling the holder to purchase a like aggregate number of one one-thousandths of a share of Preferred Stock as the Rights evidenced by the Rights Certificate or Rights Certificates surrendered shall have entitled such holder
to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 
  
 Subject to the provisions of the Rights Agreement, the Rights evidenced by
this Certificate may be redeemed by the Company at its option at a redemption price of $.01 per Right at any time prior to the earlier of (i) the Distribution Date or (ii) the Final Expiration Date. 
  
 Subject to the provisions of the Rights Agreement, the Company may, at its
option, at any time after a Section 11(a)(ii) Event, exchange all or part of the Rights evidenced by this Certificate for shares of the Company’s Common Stock or for Preferred Stock (or shares of a class or series of the Company’s
preferred stock having the same rights, privileges and preferences as the Preferred Stock). 
  
 No fractional shares of Preferred Stock will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock,
which may, at the election of the Company, be evidenced by 
  

 2 
 Front Side of Rights Certificate 

 
depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
  
 No holder of this Rights Certificate, as such, shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of shares of Preferred Stock or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced
by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 
  
 This Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
  
 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. 
  
 Dated as of
                             ,
             
  

	 ATTEST:
	 	 	 	 BJ’S WHOLESALE CLUB, INC.

					
	By:	 	 	 	 	 	By:	 	 
	 	
	 	 	 	 	

	 	 	Secretary	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	

  

	 COUNTERSIGNED:
	 	 	 	 
			
	 The Bank of New York, as Rights Agent
	 	 	 	 
					
	By:	 	 	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 	 	Authorized Signature	 	 	 	 	 	 

  

 3 
 Front Side of Rights Certificate 

 FORM OF ASSIGNMENT 
  
 (To be executed by the registered holder if such holder desires to transfer the Rights Certificate.) 
  
 FOR VALUE RECEIVED
                                        
                     hereby sells, assigns and transfers unto 
                                       
                                        
                                        
                                        
                                        
                                        
                    
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Please print name and
address of transferee) 
                                       
                                        
                                        
                                        
                                        
                                        
                    
 this Rights Certificate, together
with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                             Attorney, to transfer the within Rights Certificate on the books of the
within-named Company, with full power of substitution. 
  

					
	 Dated:
	 	                                 
        ,             ,
	 	 	 	 	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Signature

  
 Signature Guaranteed: 
  
 Certificate 
  
 The undersigned hereby certifies that the Rights evidenced by this Rights
Certificate are not being beneficially owned by an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined pursuant to the Rights Agreement). 
  

					
	 Dated:
	 	                                 
        ,             
	 	 	 	 	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Signature

  
 Signature Guaranteed: 
  
 NOTICE 
  
 The signature to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this
Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 
  

 4 
 Reverse Side of Rights Certificate 

 FORM OF ELECTION TO PURCHASE 
  
 (To be executed if holder desires to exercise Rights represented by the Rights Certificate.) 
  

	To:	The Bank of New York 

  
 The undersigned hereby irrevocably elects to exercise
                     Rights represented by this Rights Certificate to purchase the shares of Preferred Stock issuable upon the exercise of the
Rights (or such other securities of the Company or of any other person which may be issuable upon the exercise of the Rights) and requests that certificates for such shares be issued in the name of and delivered to: 
  
 Please insert social security 
 or other identifying number
                                        
                                        
                                        
                                        
                                        
    
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Please print name and
address) 
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of such Rights shall
be registered in the name of and delivered to: 
  
 Please insert social security

 or other identifying number
                                        
                                        
                                        
                                        
                                        
    
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (Please print name and
address) 
                                       
                                        
                                        
                                        
                                        
                                        
                    
  

					
	 Dated:
	 	                                 
        ,             
	 	 	 	 	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Signature

  
 Signature Guaranteed: 
  

 5 
 Reverse Side of Rights Certificate 

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

					
	 Dated:
	 	                                 
        ,             
	 	 	 	 	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Signature

  
 Signature Guaranteed: 
  
 NOTICE 
  
 The signature to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face of
this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever. 
  

 6 
 Reverse Side of Rights Certificate 

 EXHIBIT C 
  

SUMMARY OF RIGHTS TO PURCHASE 
 PREFERRED
STOCK1 
  
 On July 10, 1997, the Board of Directors of BJ’s Wholesale Club, Inc. (the “Company”), declared a dividend of one preferred stock purchase
right (a “Right”) for each outstanding share of the Company’s Common Stock to stockholders of record at the close of business on July 10, 1997 (the “Record Date”). Each Right entitles the registered holder to purchase from
the Company a unit consisting of one one-thousandth of a share (a “Unit”) of Series A Junior Participating Preferred Stock, $.01 par value per share (the “Preferred Stock”), at a purchase price of $120 in cash per Unit (the
“Purchase Price”), subject to adjustment. The description and terms of the Rights are set forth in a Rights Agreement dated as of July 10, 1997 (the “Rights Agreement”) between the Company and First Chicago Trust Company of New
York, as Rights Agent. 
  
 Initially, the Rights will be attached
to all Common Stock certificates representing shares then outstanding, and no separate Rights Certificates will be distributed. The Rights will separate from the Common Stock and a Distribution Date will occur upon the earlier of (i) 10 business
days (or such later date as may be determined by the Board of Directors of the Company) following a public announcement that a person or group of affiliated or associated persons (an “Acquiring Person”) has acquired, or obtained the right
to acquire, beneficial ownership of 20% or more of the outstanding shares of Common Stock (the “Stock Acquisition Date”), or (ii) 10 business days (or such later date as may be determined by the Board of Directors of the Company) following
the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 30% or more of such outstanding shares of Common Stock. Until the Distribution Date (or earlier redemption or expiration of the rights),
(i) the Rights will be evidenced by the Common Stock certificates and will be transferred with and only with such Common Stock certificates, (ii) new Common Stock certificates issued after the Record Date will contain a notation incorporating the
Rights Agreement by reference and (iii) the surrender for transfer of any certificates for Common Stock outstanding, even without such notation, will also constitute the transfer of the Rights associated with the Common Stock represented by such
certificate. 
  
 The Rights are not exercisable until the
Distribution Date and will expire upon the earliest of the close of business on July 10, 2007 (the “Final Expiration Date”) or the redemption or exchange of the Rights as described below. 
  
 As soon as practicable after the Distribution Date, separate certificates
evidencing the Rights (“Rights Certificates”) will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date and, thereafter, such separate Rights Certificates alone will represent the Rights.

	1	This Exhibit C (Summary of Rights to Purchase Preferred Stock) is in the form as sent to each record holder of the common stock of BJ’s Wholesale Club,
Inc. as of the close of business on the record date (July 10, 1997) pursuant to Section 3(b) of the Rights Agreement between BJ’s Wholesale Club, Inc. and First Chicago Trust Company of New York, dated as of July 10, 1997, and has not been
revised to reflect subsequent amendments of (i) Amendment No. 1, dated as of February 4, 1999, to the Rights Agreement or (ii) the Amended and Restated Rights Agreement, dated as of November         ,
2003, between BJ’s Wholesale Club, Inc. and The Bank of New York. 

  

 In the event that any Person becomes an Acquiring Person, unless the event causing the 20% threshold to
be crossed is a Permitted Offer (as defined in the Rights Agreement), then, promptly following the first occurrence of such event, proper provision shall be made so that each holder of a Right (except as provided below and in Section 7(e) of the
Rights Agreement) shall thereafter have the right to receive, upon exercise thereof at the then current Purchase Price, in lieu of a number of one one-thousandths of a share of Preferred Stock, such number of shares of Common Stock of the Company
that equals the result obtained by (x) multiplying the then current Purchase Price by the then number of one one-thousandths of a share of Preferred Stock for which a Right is then exercisable, and (y) dividing that product by 50% of the current
market price per share of Common Stock on the date of such first occurrence. Notwithstanding any of the foregoing, following the occurrence of the event set forth in this paragraph, all Rights that are, or (under certain circumstances specified in
the Rights Agreement) were, beneficially owned by any Acquiring Person will be null and void. The event summarized in this paragraph is referred to as “Section 11(a)(ii) Event.” 
  
 In the event that, at any time after any Person becomes an Acquiring Person, (i) the Company is acquired in certain merger
or other business combination transactions in which the Company is not the surviving corporation or its Common Stock is changed or exchanged (other than a merger which follows a Permitted Offer), or (ii) 50% or more of the Company’s assets or
earning power is sold or transferred, each holder of a Right (except Rights which previously have been voided as set forth above) shall thereafter have the right to receive, upon exercise, that number of shares of common stock of the acquiring
company which equals the exercise price of the Right divided by one-half of the current market price of such common stock at the date of the occurrence of the event. The events summarized in this paragraph are referred to as “Section 13
Events.” Section 11(a)(ii) Events and Section 13 Events are collectively referred to as “Triggering Events.” 
  
 At any time after the occurrence of a Section 11(a)(ii) Event, subject to certain conditions, the Board of Directors of the Company may exchange the
Rights (other than Rights owned by such Acquiring Person which have become void), in whole or in part, at an exchange ratio of one share of Common Stock, or one one-thousandth of a share of Preferred Stock (or of a share of a class or series of the
Company’s preferred stock having equivalent rights, preferences and privileges), per Right (subject to adjustment). 
  
 The Purchase Price payable, and the number of Units of Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock are granted certain rights or warrants to
subscribe for Preferred Stock or convertible securities at less than the then-current market price of the Preferred Stock, or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness or assets (excluding regular
periodic cash dividends paid out of earnings or retained earnings) or of subscription rights or warrants (other than those referred to above). 
  
 The number of Rights associated with each share of Common Stock is also subject to adjustment in the event of a stock split of the Common Stock or a stock
dividend on the Common Stock payable in Common Stock or subdivisions, consolidations or combinations of the Common Stock occurring, in any such case, prior to the Distribution Date. 
  

 2 

 Preferred Stock purchasable upon exercise of the Rights will not be redeemable. Each share of Preferred
Stock will be entitled to a minimum preferential quarterly dividend payment of $10 per share and will be entitled to an aggregate dividend of 1000 times the dividend declared per share of Common Stock. In the event of liquidation, the holders of the
Preferred Stock will be entitled to a minimum preferential liquidation payment of $1000 per share and will be entitled to an aggregate payment of 1000 times the payment made per share of Common Stock. Each share of Preferred Stock will have 1000
votes, voting together with the Common Stock. In the event of any merger, consolidation or other transaction in which Common Stock is exchanged, each share of Preferred Stock will be entitled to receive 1000 times the amount received per share of
Common Stock. These rights are protected by customary antidilution provisions. 
  
 Because of the nature of the Preferred Stock’s dividend, liquidation and voting rights, the value of one one-thousandth of a share of Preferred Stock purchasable upon exercise of each Right should approximate the
value of one share of Common Stock. 
  
 With certain exceptions,
no adjustment in the Purchase Price will be required until cumulative adjustments amount to at least 1% of the Purchase Price. No fractional Units will be issued and, in lieu thereof, an adjustment in cash will be made based on the market price of
the Preferred Stock on the last trading date prior to the date of exercise. 
  
 At any time prior to the earlier of (i) the Distribution Date, or (ii) the Final Expiration Date, the Company may redeem the Rights in whole, but not in part, at a price of $.01 per Right (the “Redemption
Price”), payable in cash, provided, however, that from and after the time that any Person shall become an Acquiring Person (other than pursuant to a Permitted Offer) and prior to the expiration of the Company’s redemption
right, the Company may redeem the Rights only if at the time of the action of the Board of Directors there are then in office not less than two Continuing Directors (as defined in the Rights Agreement) and such redemption is approved by a majority
of the Continuing Directors then in office. Immediately upon the action of the Board of Directors ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

  
 Until a Right is exercised, the holder thereof, as such, will
have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends. While the distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may, depending upon
the circumstances, recognize taxable income in the event that the Rights become exercisable for Common Stock (or other consideration) of the Company or for common stock of the acquiring company as set forth above. 
  
 Subject to certain exceptions, any of the provisions of the Rights Agreement
may be amended by the Board of Directors of the Company prior to such time as the Rights are no longer redeemable. 
  
 A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A dated July
10, 1997. A copy of the Rights Agreement is available free of charge from the Company. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference. 
  

 3Second Supplemental Indenture

 EXHIBIT 4.4 
  

  
 HANOVER COMPRESSOR COMPANY, 
  
 as Issuer

  
 and 
  
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
  
 as Trustee 
  

  
 Second Supplemental Indenture 
  
 Dated as of
December 15, 2003 
  
 to 
  
 Senior Indenture 
  
 Dated as of December 15, 2003 
  

  
 4.75% Convertible Senior Notes due 2014 
  

 TABLE OF CONTENTS 
  

	 	  	Page

	 ARTICLE ONE. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	2
		
	 SECTION 101. Definitions.
	  	2
		
	 SECTION 102. Effect of Headings and Table of Contents.
	  	7
		
	 SECTION 103. Successors and Assigns.
	  	7
		
	 SECTION 104. Separability Clause.
	  	7
		
	 SECTION 105. Benefits of Supplemental Indenture.
	  	7
		
	 SECTION 106. Governing Law.
	  	7
		
	 SECTION 107. No Personal Liability of Directors, Officers, Employees, Stockholders or Incorporators.
	  	7
		
	 SECTION 108. Priority of Supplemental Indenture.
	  	7
		
	 SECTION 109. Counterparts.
	  	8
		
	 ARTICLE TWO. SECURITY FORMS
	  	8
		
	 SECTION 201. Forms Generally.
	  	8
		
	 SECTION 202. Global Security Legend.
	  	8
		
	 SECTION 203. Form of Trustee’s Certificate of Authentication.
	  	10
		
	 ARTICLE THREE. THE SECURITIES
	  	11
		
	 SECTION 301. Title and Terms.
	  	11
		
	 SECTION 302. CUSIP Numbers.
	  	11
		
	 ARTICLE FOUR. REMEDIES
	  	12
		
	 SECTION 401. Events of Default.
	  	12
		
	 SECTION 402. Acceleration of Maturity.
	  	14
		
	 ARTICLE FIVE. MERGER AND CONSOLIDATION
	  	15
		
	 SECTION 501. Company May Consolidate, Etc., Only on Certain Terms.
	  	15
		
	 SECTION 502. Successor Substituted.
	  	16

	 ARTICLE SIX. SUPPLEMENTS AND AMENDMENTS TO INDENTURE
	  	16
		
	 SECTION 601. Supplemental Indentures Without Consent of Holders.
	  	16
		
	 SECTION 602. Supplemental Indentures with Consent of Holders.
	  	17
		
	 SECTION 603. Execution of Supplemental Indentures.
	  	18
		
	 SECTION 604. Effect of Supplemental Indentures.
	  	18
		
	 SECTION 605. Conformity with Trust Indenture Act.
	  	18
		
	 SECTION 606. Reference in Securities to Supplemental Indentures.
	  	18
		
	 SECTION 607. Notice of Supplemental Indentures.
	  	18
		
	 ARTICLE SEVEN. COVENANTS
	  	19
		
	 SECTION 701. Corporate Existence.
	  	19
		
	 SECTION 702. Compliance with Laws.
	  	19
		
	 SECTION 703. Statement by Officers as to Default.
	  	19
		
	 SECTION 704. Reporting Requirements.
	  	20
		
	 SECTION 705. Additional Covenants.
	  	20
		
	 ARTICLE EIGHT. REDEMPTION OF SECURITIES
	  	20
		
	 SECTION 801. Optional Redemption.
	  	20
		
	 SECTION 802. Applicability of Article.
	  	21
		
	 ARTICLE NINE. REPURCHASE OF SECURITIES UPON A CHANGE IN CONTROL
	  	21
		
	 SECTION 901. Right to Require Repurchase.
	  	21
		
	 SECTION 902. Notices; Method of Exercising Repurchase Rights.
	  	21
		
	 SECTION 903. Compliance with Law.
	  	22
		
	 SECTION 904. Payment.
	  	22
		
	 SECTION 905. Certain Definitions.
	  	23
		
	 ARTICLE TEN. CONVERSION
	  	24
		
	 SECTION 1001. Conversion Privilege.
	  	24

	 SECTION 1002. Adjustment of Conversion Rate.
	  	24
		
	 SECTION 1003. Notice of Adjustment of the Conversion Rate.
	  	29
		
	 SECTION 1004. Listing of Common Stock; Par Value of Stock.
	  	29
		
	 SECTION 1005. Company Determination Final.
	  	30
		
	 ARTICLE ELEVEN. LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	  	30
		
	 SECTION 1101. Company’s Option to Effect Legal Defeasance or Covenant Defeasance.
	  	30
		
	 SECTION 1102. Legal Defeasance and Discharge.
	  	30
		
	 SECTION 1103. Covenant Defeasance.
	  	31
		
	 SECTION 1104. Conditions to Legal Defeasance or Covenant Defeasance.
	  	31
		
	 SECTION 1105. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions.
	  	33
		
	 SECTION 1106. Reinstatement.
	  	33
		
	 Exhibit A—Form of Securities
	  	 

  

 SECOND SUPPLEMENTAL INDENTURE, dated as of December 15, 2003 (this “Supplemental Indenture”),
between Hanover Compressor Company, a Delaware corporation (the “Company”), having its principal office at 12001 North Houston Rosslyn, Houston, Texas 77086, and Wachovia Bank, National Association, a national banking association, as
trustee (the “Trustee”), having its Corporate Trust Office at 5847 San Felipe, Suite 1050, Houston, Texas 77057. 
  
 RECITALS 
  
 WHEREAS, the Company deems it necessary to issue from time to time for its lawful purposes unsecured debt securities evidencing its indebtedness,
including the 4.75% Convertible Senior Notes due 2014 issued hereunder (the “Securities”), and has duly authorized the execution and delivery of this Supplemental Indenture; 
  
 WHEREAS, the Company has heretofore entered into a Senior Indenture, dated as of December 15, 2003, among the Company, the
Subsidiary Guarantors party thereto and the Trustee (the “Original Indenture,” as may be amended and supplemented in respect of provisions relating to the Securities, and as further supplemented by this Supplemental Indenture, the
“Indenture”); 
  
 WHEREAS, the Original Indenture
provides for the issuance from time to time of a new series of securities, unlimited as to principal amount, to bear such rates of interest, to mature at such times and to have such other provisions as shall be fixed in accordance with the
provisions of the Original Indenture, and the form and terms of such series may be described by a supplemental indenture executed by the Company and the Trustee; 
  
 WHEREAS, the Company hereby proposes to create under the Indenture a series of securities; 
  
 WHEREAS, additional securities of other series hereafter established, except
as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Original Indenture as at the time supplemented and modified; 
  
 WHEREAS, the Indenture is subject to the provisions of the Trust Indenture
Act of 1939, as amended, that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions; and 
  
 WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the Company, and a valid amendment and supplement to the Original
Indenture, have been done. 

 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: 
  
 For and in consideration of the premises and the purchase of the Securities
by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities, as follows: 
  
 ARTICLE ONE. 
  
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
  
 SECTION 101. Definitions. 
  
 For all purposes of this Supplemental Indenture and any Securities issued under the Indenture, except as otherwise expressly provided or unless the
context otherwise requires: 
  
 (a) capitalized
terms used herein without definition shall have the meanings specified in the Original Indenture; 
  
 (b) each reference to “Indenture” in this Supplemental Indenture shall mean the provisions of the Original Indenture and future
amendments and supplements to the Original Indenture, including this Supplemental Indenture, applicable to the Securities and exclusive of amendments and supplements that relate to future issuances of the series of securities issued at a later date
under the Original Indenture and, for the avoidance of doubt, the First Supplemental Indenture, dated as of December 15, 2003, among the Company, Hanover Compression Limited Partnership and the Trustee shall have no force and effect for the
Securities; 
  
 (c) all references in this
Supplemental Indenture to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Supplemental Indenture and, where so specified, to the Articles and Sections of the Original Indenture as
supplemented, amended or modified by this Supplemental Indenture; 
  
 (d) all references in the Original Indenture to Articles and Sections in the Original Indenture shall for purposes of the Securities be deemed references to the Articles and Sections of the Original Indenture as
supplemented, amended or modified by this Supplemental Indenture, including a deemed reference to a different Section number in this Supplemental Indenture that supplements, amends or modifies a Section in the Original Indenture; 
  
 (e) the terms defined in this Article have the meanings
assigned to them in this Article which shall supersede any such definitions of the same terms in the Original Indenture, and words in the singular include the plural as well as the singular, and words in the plural include the singular as well as
the plural; 
  
 (f) all other terms used herein
which are defined in the Trust Indenture Act, either directly or by reference therein, or defined by Commission rule and not otherwise 
  

 2 

 defined herein have the meanings assigned to them therein, and the terms “cash transaction” and
“self-liquidating paper”, as used in Trust Indenture Act Section 311, shall have the meanings assigned to them in the rules of the Commission adopted under the Trust Indenture Act; 
  
 (g) all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with GAAP (as defined herein); 
  
 (h) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision; 
  
 (i) the word “or” is
not exclusive; and 
  
 (j) provisions of the
Indenture apply to successive events and transactions. 
  
 “Aggregate Tender Distribution Amount” has the meaning specified in Section 1002(5). 
  
 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 
  
 “Capital Stock” means, with respect to any Person, any and
all shares, interests, participations, warrants, rights, options or other equivalents (however designated) of capital stock or any other equity interests of such Person, including each class of common stock and preferred stock. 
  
 “Change in Control” has the meaning specified in Section
905(b). 
  
 “Common Stock” means the common
stock, par value $.001 per share, of the Company authorized at the date of this instrument as originally executed. Subject to the provisions of Section 1705 of the Original Indenture, shares issuable on conversion of Securities shall include only
shares of such common stock or shares of any class or classes of common stock resulting from any reclassification or reclassifications thereof; provided, however, that if at any time there shall be more than one such resulting class,
the shares so issuable upon conversion of Securities shall include shares of all such classes, and the shares of each class then so issuable shall be substantially in the proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
  
 “Company” means the Person named as the “Company” in the first paragraph of this Supplemental Indenture until a successor
Person shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Company” shall mean such successor Person. 
  
 “Conversion Agent” means any Person authorized by the Company to convert Securities in accordance with Article Ten. 
  

 3 

 “Conversion Price” means $1,000 divided by the Conversion Rate. 
  
 “Conversion Rate” means, initially, 66.6667 shares of Common
Stock per $1,000 principal amount of Securities, subject to adjustment pursuant to Section 1002. 
  
 “Current Market Price” means the average of the daily Last Reported Sale Prices of the Common Stock for the ten consecutive Trading Days
ending on the earlier of the date of determination and the day before the ex-dividend date with respect to the transaction requiring such determination. 
  
 “default” means, when used with respect to the Securities, any event or condition that is, or after notice or passage of time or both
would be, an Event of Default. 
  
 “Depositary”
means The Depository Trust Company, its nominees and their respective successors and assigns, or such other depository institution hereinafter appointed by the Company. 
  
 “Dollars” and “$” means lawful money of the United States of America. 
  
 “Event of Default” has the meaning specified in Section 401.

  
 “Expiration Time” has the meaning specified
in Section 1002(5). 
  
 “GAAP” means generally
accepted accounting principles in the United States of America as in effect on the Issue Date, including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants
and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment of the accounting profession. All computations based on GAAP contained in the
Indenture shall be computed in conformity with GAAP. 
  
 “Issue Date” means the first date on which the Securities are originally issued, which date is December 15, 2003. 
  
 “Last Reported Sale Price” of Capital Stock on any date means the closing sale price per share (or, if no closing sale price is reported,
the average of the bid and ask prices per share or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions for the principal U.S. securities exchange on which
the Capital Stock is traded (which, in the case of the Common Stock, as of the date hereof, is the New York Stock Exchange under the symbol “HC”) or, if the Capital Stock is not listed on a U.S. national or regional securities exchange, as
reported by the Nasdaq National Market; provided, however, the Capital Stock is not listed for trading on a U.S. national or regional securities exchange and not reported by the Nasdaq National Market on the relevant date, the Last
Reported Sale Price shall be the last quoted bid price per share for the Capital Stock in the over-the-counter market on the relevant date as reported by the National Quotation Bureau or similar organization; provided, further, the
Capital Stock is not so quoted, the Last Reported Sale Price shall be the average of the mid-point of the last bid and ask prices per share 
  

 4 

 for the Capital Stock on the relevant date from each of at least three nationally recognized independent investment
banking firms selected by the Company for this purpose. 
  
 “Officer” means the Chief Executive Officer, the President, any Vice President, the Controller, the Secretary or the Treasurer of the Company, as applicable. 
  
 “Officer’s Certificate” means a certificate signed by the Chairman of the Board, a Vice Chairman of
the Board, the President or a Vice President, of the Company or a Subsidiary Guarantor, as the case may be, and delivered to the Trustee. The officer signing the Company’s Officer’s Certificate given pursuant to Section 703(a) shall
be the principal executive, financial or accounting officer of the Company. 
  
 “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization, government or any agency or
political subdivision thereof or any other entity. 
  
 “Regular Record Date” means, with respect to any Interest Payment Date, the January 1 or July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. 
  
 “Repurchase Date” means, when used with respect to any
Security to be repurchased at the option of the Holder, the date fixed for such repurchase by or pursuant to the Indenture. 
  
 “Repurchase Price” means, when used with respect to any Security to be repurchased at the option of the Holder, the price at which it is
to be repurchased pursuant to the Indenture. 
  
 “Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter acquired whereby the Company or a Subsidiary transfers such property to a Person and the Company or a Subsidiary leases it from
such Person. 
  
 “Securities” has the meaning
stated in the first recital of this Supplemental Indenture and more particularly means any Securities authenticated and delivered under the Indenture. 
  
 “Spin-off Market Price” means, with respect to any Capital Stock (including, without limitation, the Common Stock), the average Last
Reported Sale Price of such Capital Stock (where such Last Reported Sale Price is available) for each of the ten Trading Days commencing on and including the fifth Trading Day after the date on which the ex-dividend trading commences for such
distribution on the principal U.S. national or regional exchange or other market on which such Capital Stock are then listed or quoted. 
  
 “Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date on which the payment of
principal of such security is due and payable, including pursuant to any mandatory redemption provision, but shall not include any contingent obligations to repay, redeem or repurchase any such principal prior to the date originally scheduled for
the payment thereof. 
  

 5 

 “Subsidiary” of any Person means any corporation, association, partnership, joint
venture, limited liability company or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership and joint venture interests) entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one or more
Subsidiaries of such Person. Unless otherwise specified herein, each reference to a Subsidiary will refer to a Subsidiary of the Company. 
  
 “Supplemental Indenture” means this Second Supplemental Indenture, dated as of December 15, 2003, between the Company and the Trustee.

  
 “Trading Day” means (i) if the Common Stock
is listed or admitted for trading on any national or regional securities exchange, days on which such national or regional securities exchange is open for business, (ii) if the Common Stock is quoted on the Nasdaq National Market or any other system
of automated dissemination of quotations of security prices, days on which trades may be effected through such system, or (iii) if the Common Stock is not listed on a national or regional securities exchange or quoted on the National Nasdaq Market
or any other system of automated dissemination of quotations of security prices, days on which the Common Stock is traded regular way in the over-the-counter market and for which a closing bid and a closing asked price for the Common Stock are
available. 
  
 “Trust Officer” means, when used
with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of the Indenture. 
  
 “U.S. Government Obligations” means securities that are (i) direct obligations of the United States of America for the payment of which
its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America which, in either case, are not callable or redeemable at the option of the issuer thereof or otherwise subject to prepayment, and shall also include a depository receipt issued by a New York Clearing
House bank or trust company as custodian with respect to any such U.S. Government Obligation, or a specific payment of principal of or interest on any such U.S. Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt or from any amount held by the custodian in respect of the
U.S. Government Obligations or the specific payment of principal of or interest on the U.S. Government Obligations evidenced by such depository receipt. 
  

 6 

 SECTION 102. Effect of Headings and Table of Contents. 
  
 The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof. 
  
 SECTION 103. Successors and Assigns. 
  
 All
covenants and agreements in this Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 
  
 SECTION 104. Separability Clause. 
  
 In case any provision in this Supplemental Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 SECTION 105. Benefits of Supplemental Indenture. 
  
 Nothing in this Supplemental Indenture or in the Securities, express or implied, shall give to any Person any benefit or any legal or equitable right,
remedy or claim under this Supplemental Indenture. 
  
 SECTION
106. Governing Law. 
  
 THE INDENTURE AND THE SECURITIES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 SECTION 107. No Personal Liability of Directors, Officers, Employees, Stockholders or Incorporators. 
  
 No director, officer, employee, incorporator, limited partner, member or stockholders, as such, of the Company shall have any liability for any
obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Security waives and releases all such liability. Such waiver
and release are part of the consideration for the issuance of the Securities. 
  
 SECTION 108. Priority of Supplemental Indenture. 
  
 In the event any conflict arises between the terms of the Original Indenture and the terms of this Supplemental Indenture, the terms of this Supplemental Indenture shall be controlling and supersede such conflicting
terms of the Original Indenture. Unless otherwise specifically modified or amended hereby, the terms of the Original Indenture shall remain in full force and effect with respect to the Securities. 
  

 7 

 SECTION 109. Counterparts. 
  
 This Supplemental Indenture may be executed in any number of counterparts, each of which shall be original; but such
counterparts shall together constitute but one and the same instrument. 
  
 ARTICLE TWO. 
  
 SECURITY FORMS 

SECTION 201. Forms Generally. 
  
 The Securities shall be in substantially the forms set forth in Exhibit A hereto, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with applicable laws or the rules of any
securities exchange or Depositary or as may, consistently with the Indenture, be determined by the officers executing such Securities, as evidenced by their execution of the Securities. Any portion of the text of any Security may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the Security. Each Security shall be dated the date of its authentication. 
  
 The Securities will be issued on the date of this Supplemental Indenture in the form of one or more permanent global Securities substantially in the form
set forth in Exhibit A hereto (each, a “Global Security”) deposited with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided. The Global Securities may be
represented by more than one certificate, if so required by the Depositary’s rules regarding the maximum principal amount to be represented by a single certificate. 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 Trustee, as custodian for the Depositary or its nominee, as hereinafter provided. 
  
 The definitive Securities shall be printed, lithographed or engraved on steel-engraved borders or may be produced in any other manner, all as determined
by the officers of the Company executing such Securities, as evidenced by their execution of such Securities. 
  
 SECTION 202. Global Security Legend. 
  
 The Global Securities shall bear the following legend on the face thereof: 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“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 SUCH OTHER REPRESENTATIVE OF DTC AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT HEREON IS MADE TO 
  

 8 

 CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR
TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE. 
  

 9 

 SECTION 203. Form of Trustee’s Certificate of Authentication. 
  
 The Trustee’s certificate of authentication shall be in substantially
the following form: 
  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION. 
  
 This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture. 
  

	WACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 
	 	

	 	 	 Authorized Signatory

  

 10 

 ARTICLE THREE. 
  
 THE SECURITIES 
  
 SECTION 301. Title and Terms. 
  
 The aggregate principal amount of Securities which may be authenticated and delivered under this Supplemental Indenture shall be limited to $143,750,000
aggregate principal amount. 
  
 The Securities shall be known and
designated as the “4.75% Convertible Senior Notes due 2014” of the Company. The Stated Maturity of the Securities shall be January 15, 2014, and they shall bear interest at the rate of 4.75% per annum from December 15, 2003, or from the
most recent Interest Payment Date to which interest has been paid or duly provided for, payable semiannually in cash and in arrears to the Person in whose name the Security (or any Predecessor Security) is registered at the close of business on the
January 1 and July 1 immediately preceding the Interest Payment Date on January 15 and July 15 of each year, commencing on July 15, 2004. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months, until the principal
thereof is paid or duly provided for. Interest on any overdue principal, interest (to the extent lawful), if any, shall be payable on demand. 
  
 The principal of and interest on the Securities shall be payable at the office or agency of the Company maintained for such purpose in The City of New
York, or at such other office or agency of the Company as may be maintained for such purpose, all as provided in Section 1002 of the Original Indenture; provided, however, that, at the option of the Company, interest may be paid on Securities
in definitive form by check mailed to addresses of the Persons entitled thereto as such addresses shall appear on the Security Register. Upon written application by the Holder of Securities aggregating more than $2.0 million in principal amount to
the Paying Agent not later than the relevant Regular Record Date, the Company will pay interest on such Securities by transfer of immediately available funds to a Dollar account maintained by such Holder with a bank in the United States. 

 
 Holders shall have the right to require the Company to purchase their
Securities, in whole or in part, in the event of a Change in Control pursuant to Article Nine. 
  
 The Securities shall be redeemable as provided in Article Eight and in the Securities. 
  
 SECTION 302. CUSIP Numbers. 
  
 The Company in issuing Securities may use “CUSIP” numbers (if then generally in use) in addition to serial numbers; if so, the Trustee shall use
such “CUSIP” numbers in addition to serial numbers in notices of redemption and repurchase as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such CUSIP
numbers, either as printed on the Securities or as contained in any notice of a redemption or repurchase and that reliance may be placed only on the serial or other 
  

 11 

 identification numbers printed on the Securities, and any such redemption or repurchase shall not be affected by any
defect in or omission of such CUSIP numbers. The Company will promptly notify the Trustee of any change in the CUSIP numbers. 
  
 ARTICLE FOUR. 
  
 REMEDIES 
  
 SECTION 401. Events of Default. 
  
 “Event of
Default,” wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body): 
  
 (i) default in any payment of interest on any Security when the same becomes due and such default continues for a period of 30 days;

  
 (ii) default in the payment of the principal
of any Security when the same becomes due and payable at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise; 
  
 (iii) the Company fails 
  
 (A) to give any notice required by Section 902; 
  
 (B) to make any Change of Control Payment required by
Section 904; or 
  
 (C) to comply with Section
501; 
  
 (iv) the Company fails to observe or
perform any of its other covenants, warranties or agreements in the Securities or the Indenture (other than a covenant, agreement or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and
such failure continues for 60 days after the notice specified below; 
  
 (v) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company or any of its Subsidiaries (or
the payment of which is guaranteed by the Company or any of its Subsidiaries), other than indebtedness owed to the Company or a Subsidiary, whether such indebtedness or guarantee now exists, or is created after the date of the Indenture, which
default: 
  
 (A) is caused by a failure to pay
principal of, or interest, if any, on such indebtedness prior to the expiration of any grace period provided in such indebtedness; or 
  

 12 

 (B) results in the acceleration of such indebtedness prior to its Stated Maturity;

  
 and, in each case, the principal amount of any such indebtedness, together
with the principal amount of any other such indebtedness under which there has been a payment default or the maturity of which has been so accelerated, aggregates $20.0 million or more; 
  
 (vi) the Company, any Significant Subsidiary or any group of Subsidiaries that, taken together (as of the
latest audited consolidated financial statements of the Company and its Subsidiaries), would constitute a Significant Subsidiary, pursuant to or within the meaning of any Bankruptcy Law: 
  
 (A) commences a voluntary case; 
  
 (B) consents to the entry of an order for relief against it in an involuntary case; 
  
 (C) consents to the appointment of a custodian of it or for
any substantial part of its property; 
  
 (D)
makes a general assignment for the benefit of its creditors; or takes any comparable action under any foreign laws relating to insolvency; or 
  
 (vii) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
  
 (A) is for relief against the Company, any Significant
Subsidiary or any group of Subsidiaries that, taken together (as of the latest audited consolidated financial statements of the Company and its Subsidiaries), would constitute a Significant Subsidiary, in an involuntary case; 
  
 (B) appoints a custodian of the Company, any Significant
Subsidiary or any such group or for any substantial part of its property; or 
  
 (C) orders the winding up or liquidation of the Company, any Significant Subsidiary or any such group; 
  
 or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 90 days; or 
  
 (viii) any judgment or decree for the payment of money in
excess of $20 million (net of any insurance or indemnity payments actually received in respect thereof prior to or within 90 days from the entry thereof, or to be received in respect thereof in the event any appeal thereof shall be unsuccessful) is
rendered against the Company or any Significant Subsidiary that is not discharged, or bonded or insured by a third Person 
  

 13 

 and either (A) an enforcement proceeding has been commenced upon such judgment or decree or (B) such
judgment or decree remains outstanding for a period of 60 days following the entry of such judgment or decree and is not discharged, waived or stayed. 
  
 A default under clause (iv) above shall not constitute an Event of Default until the Trustee or the Holders of at least 25% in principal amount of the
Outstanding Securities notify the Company of the default and the Company does not cure such default within the time specified in clause (iv) after receipt of such notice. Such notice must specify the default, demand that it be remedied and state
that such notice is a “Notice of Default”. 
  
 This
Section 401 shall be applicable with respect to the Securities in lieu of Section 501 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 SECTION 402. Acceleration of Maturity. 
  
 If an Event of Default (other than by reason of an Event of Default specified in Section 401(vi) or 401(vii)) occurs and is
continuing, the Trustee by written notice to the Company, or the Holders of at least 25% in principal amount of the Outstanding Securities, by written notice to the Company and the Trustee, may, and the Trustee at the request of such Holders by
written notice to the Company shall, declare the principal and accrued and unpaid interest on all such then Outstanding Securities to be due and payable immediately. In the event of a declaration of acceleration of the Securities because an Event of
Default described in clause (v) under Section 401 has occurred and is continuing, the declaration of acceleration of the Securities shall be automatically annulled if the event of default or payment default triggering such Event of Default pursuant
to clause (v) shall be remedied or cured by the Company or Subsidiary or waived by the holders of the relevant indebtedness within 20 days after the declaration of acceleration with respect thereto and if (x) the annulment of the acceleration of the
Securities would not conflict with any judgment or decree of a court of competent jurisdiction and (y) all existing Events of Default, except nonpayment of principal or interest on the Securities that became due solely because of the acceleration of
the Securities, have been cured or waived. Notwithstanding the foregoing, in the case of an Event of Default specified in Section 401(vi) or 401(vii) occurs and is continuing, then the principal amount 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. 
  
 This Section 402 shall be applicable with respect to the Securities in lieu of the first paragraph of Section 502 of the
Original Indenture (which shall be of no force and effect for the Securities). 
  

 14 

 ARTICLE FIVE. 
  
 MERGER AND CONSOLIDATION 
  
 SECTION 501. Company May Consolidate, Etc., Only on Certain Terms. 
  
 The Company shall not, in a single transaction or series of related transactions, consolidate with or merge with or into, or
sell, lease, convey, assign, transfer or otherwise dispose of all or substantially all its assets to any Person, unless: 
  
 (i) the resulting, surviving or transferee Person (the “Successor Company”) shall be a corporation, partnership, trust or
limited liability company organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and the Successor Company (if not the Company) shall expressly assume, by supplemental indenture,
executed and delivered to the Trustee, in form satisfactory to the Trustee, all the obligations of the Company under the Securities and under the Indenture; 
  
 (ii) immediately after giving effect to such transaction (and treating any indebtedness that becomes an obligation of the Successor
Company or any Subsidiary of the Successor Company as a result of such transaction as having been Incurred by the Successor Company or such Subsidiary at the time of such transaction), no default or Event of Default shall have occurred and be
continuing; and 
  
 (iii) the Company shall have
delivered to the Trustee (A) an Officer’s Certificate, stating that (1) the Officer is not aware of any default or Event of Default that shall have happened and be continuing and (2) such consolidation, merger or disposition and such
supplemental indenture comply with the Indenture, and (B) an Opinion of Counsel, stating that such consolidation, merger or disposition and such supplemental indenture comply with the Indenture; provided that in giving such opinion such
counsel may rely on such Officer’s Certificate as to any matters of fact (including without limitation as to compliance with the foregoing clause (ii)). 
  
 For purposes of this Section 501 the sale, lease, conveyance, assignment, transfer, or other disposition of all or substantially all of the assets of one
or more Subsidiaries of the Company, which assets, if held by the Company instead of such Subsidiaries, would constitute all or substantially all of the assets of the Company on a consolidated basis, shall be deemed to be the disposition of all or
substantially all of the assets of the Company; provided, however, that a Sale/Leaseback Transaction involving all or substantially all of the assets of the Company or of one or more Subsidiaries of the Company, which assets, if held
by the Company instead of such Subsidiaries, would constitute all or substantially all of the assets of the Company on a consolidated basis, shall not be deemed to be the disposition of all or substantially all of the assets of the Company.

  
 The Company shall be subject to this Section 501 in lieu of
Sections 801 and 802 of the Original Indenture (which shall be of no force and effect for the Securities). 
  

 15 

 SECTION 502. Successor Substituted. 
  
 Upon any consolidation of the Company with or merger of the Company into any other Person or any sale, lease, conveyance,
assignment, transfer or other disposition of all or substantially all of the assets of the Company to any Person in accordance with Section 501, the Successor Company will succeed to, and be substituted for, and may exercise every right and power
of, the Company under the Indenture and thereafter the predecessor Company shall be released from all obligations and covenants under the Indenture, but, in the case of a lease of all or substantially all its assets, the predecessor Company will not
be released from the obligation to pay the principal of and interest on the Securities. 
  
 The Company shall be subject to this Section 502 in lieu of Section 803 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 ARTICLE SIX. 
  
 SUPPLEMENTS AND AMENDMENTS TO INDENTURE 
  
 SECTION 601. Supplemental Indentures Without Consent of Holders.

  
 Without the consent of any Holders, the Company and the
Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
  
 (i) to cure any ambiguity, omission, defect or inconsistency; provided that such action pursuant to
this clause (i) shall not adversely affect the interest of the Holders of the Securities in any material respect; or 
  
 (ii) to provide for uncertificated Securities in addition to or in place of certificated Securities (provided that the
uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code); or 
  
 (iii) to add guarantees of the Securities; or 
  
 (iv) to provide for the assumption by a successor
corporation, partnership, trust or limited liability company of the obligations of the Company under the Indenture; or 
  
 (v) to secure the Securities; or 
  
 (vi) to add to the covenants of the Company or additional Events of Default for the benefit of the Holders or to surrender any right or
power conferred upon the Company; or 
  
 (vii) to
make any other change that does not adversely affect the rights of any Holder; or 
  

 16 

 (viii) to comply with any requirement of the Commission in connection with the
qualification of the Indenture under the Trust Indenture Act; or 
  
 (ix) to evidence and provide the acceptance and appointment of a successor trustee under the Indenture. 
  
 This Section 601 shall be applicable with respect to the Securities in lieu of Section 901 of the Original Indenture (which shall be of no force and
effect for the Securities). 
  
 SECTION 602. Supplemental
Indentures with Consent of Holders. 
  
 With the consent of
the Holders of not less than a majority in principal amount of the Outstanding Securities (including consents obtained in connection with a tender offer or exchange offer for the Securities), the Company and the Trustee may enter into an indenture
or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner the rights of the Holders under the Indenture; provided,
however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby (with respect to any Securities held by a nonconsenting Holder of the Securities): 
  
 (i) reduce the principal amount of Securities whose Holders
must consent to an amendment; or 
  
 (ii) reduce
the stated rate of or extend the stated time for payment of interest on any Security; or 
  
 (iii) reduce the principal of or extend the Stated Maturity of any Security; or 
  
 (iv) change the time at which any Security may be redeemed
as described in Section 801 or Article Nine; or 
  
 (v) make any Security payable in money other than that stated in the Security or change the Place of Payment where, or the coin or currency in which, any Security or interest thereon is payable; or 
  
 (vi) impair the right of any Holder to receive payment of
principal of and interest on such Holder’s Securities on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Securities or for the right to convert such Securities in
accordance with the Indenture; or 
  
 (vii)
adversely affect the right of a Holder of a Security to require the Company to repurchase such Security pursuant to Article Nine or to convert such Security, except as otherwise allowed or contemplated by Section 501 or Section 1705 of the Original
Indenture, or modify the Conversion Rate other than pursuant to Section 1002; or 
  

 17 

 (viii) make any change in the amendment provisions of the Indenture which require each
Holder’s consent or in the waiver provisions of the Indenture. 
  
 The consent of the Holders is not necessary under the Indenture to approve the particular form of any proposed supplemental indenture. It is sufficient if such consent approves the substance of the proposed supplemental indenture.

  
 This Section 602 shall be applicable with respect to the
Securities in lieu of Section 902 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 SECTION 603. Execution of Supplemental Indentures. 
  
 The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights, duties or
immunities, as determined by the Trustee in its sole discretion under the Indenture or otherwise. In signing or refusing to sign any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by the
Indenture, the Trustee shall be provided with, and shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by the
Indenture. 
  
 SECTION 604. Effect of Supplemental
Indentures. 
  
 Upon the execution of any supplemental
indenture under this Article, the Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of the Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and
delivered under the Indenture shall be bound thereby (except as provided in Section 602). 
  
 SECTION 605. Conformity with Trust Indenture Act. 
  
 Every supplemental indenture executed pursuant to the Article shall conform to the requirements of the Trust Indenture Act as then in effect. 
  
 SECTION 606. Reference in Securities to Supplemental Indentures. 
  
 Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new
Securities so modified as to conform to any such supplemental indenture may be prepared and executed by the Company, and the Company shall issue and the Trustee shall authenticate a new Security that reflects the changed terms, the cost and expense
of which will be borne by the Company in exchange for Outstanding Securities. 
  
 SECTION 607. Notice of Supplemental Indentures. 
  
 Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of Section 602, the Company shall give notice thereof to the Holders of each Outstanding Security
affected, in the manner provided for in 
  

 18 

 Section 106 of the Original Indenture, setting forth in general terms the substance of such supplemental indenture. The
failure to give such notice to all the Holders, or any defect therein, will not impair or affect the validity of the supplemental indenture. 
  
 ARTICLE SEVEN. 
  
 COVENANTS 
  
 SECTION 701. Corporate Existence. 
  
 Subject to
Article Five, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect the corporate existence of the Company and the corporate rights (charter and statutory), licenses and franchises of the Company;
provided, however, that the Company shall not be required to preserve any such right, license or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and
each of its Subsidiaries, taken as a whole, and that the loss thereof is not, and will not be, disadvantageous in any material respect to the Holders. The Company shall be subject to this Section 701 in lieu of Section 1005 of the Original Indenture
(which shall be of no force and effect for the Securities). 
  
 SECTION 702. Compliance with Laws. 
  
 The Company
shall comply, and shall cause each of its Subsidiaries to comply, with all applicable statutes, rules, regulations, orders and restrictions of the United States of America, all states and municipalities thereof, and of any governmental regulatory
authority, in respect of the conduct of their respective businesses and the ownership of their respective properties, except for such noncompliances as would not in the aggregate have a material adverse effect on the financial condition or results
of operations of the Company and its Subsidiaries, taken as a whole. 
  
 SECTION 703. Statement by Officers as to Default. 
  
 (a) The Company will deliver to the Trustee, within 90 days after the end of each fiscal year of the Company ending after the date hereof, an Officer’s Certificate, stating whether or not to the best knowledge of
the signer thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of the Indenture (without regard to any period of grace or requirement of notice provided under the Indenture) and, if the
Company shall be in default, specifying all such defaults and the nature and status thereof of which he may have knowledge. 
  
 (b) The Company shall deliver to the Trustee, as soon as possible and in any event within five days after the Company becomes aware or
should reasonably become aware of the occurrence or existence of a default or an Event of Default, an Officer’s Certificate setting forth the details of such default or Event of Default, and the action which the Company proposes to take with
respect thereto. 
  

 19 

 The Company shall be subject to this Section 703 in lieu of Section 1004 of the Original Indenture (which
shall be of no force and effect for the Securities). 
  
 SECTION
704. Reporting Requirements. 
  
 (a)
Notwithstanding that the Company may not be subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, to the extent permitted by the Exchange Act, the Company will file with the Commission, and provide the Trustee with, the
annual reports and the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may by rules and regulations prescribe) that are specified in Sections 13 and 15(d) of the Exchange Act within the
time periods specified therein. In the event that the Company is not permitted to file such reports, documents and information with the Commission pursuant to the Exchange Act, the Company will nevertheless provide such Exchange Act information to
the Trustee as if the Company were subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act within the time periods specified therein. 
  

(b) So long as the Securities remain outstanding, the Company shall cause its annual report to stockholders and any other financial
reports furnished by it to stockholders generally, to be mailed to the Holders at their addresses appearing in the register of Securities maintained by the Security Registrar in each case at the time of such mailing or furnishing to stockholders.

  
 The Company shall provide the Trustee with a sufficient number
of copies of all reports and other documents and information that the Company may be required to deliver to the Holders under this Section 704. 
  
 SECTION 705. Additional Covenants. 
  
 The Company will be subject to the covenants set forth in Sections 1001, 1002, 1003, 1006, 1007 and 1008 of the Original Indenture with respect to the
Securities in addition to the covenants set forth in this Supplemental Indenture. 
  
 ARTICLE EIGHT. 
  
 REDEMPTION OF SECURITIES 
  
 SECTION 801.
Optional Redemption. 
  
 (a) Any time on or
after January 15, 2011 and prior to January 15, 2013, the Company may, at its option, redeem the Securities, in whole at any time or in part from time to time, upon notice given at least 20 days but not more than 60 days prior to the Redemption Date
and otherwise in accordance with Section 1104 of the Original Indenture, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, to but excluding the Redemption Date, if
the Last Reported Sale Price of the Common Stock has exceeded 135% of the Conversion Price then in effect for at least 20 Trading Days within a period of 30 consecutive Trading Days ending on the Trading Day prior to the 
  

 20 

 date on which the Company mails the notice of redemption pursuant to Section 1104 of the Original Indenture. 

 
 (b) Except as set forth in Section 801(a), the Securities
may not be redeemed at the option of the Company prior to January 15, 2013. On and after January 15, 2013, the Company may, at its option, redeem the Securities, in whole at any time or in part from time to time, on any date prior to the Stated
Maturity, upon notice given at least 20 days but not more than 60 days prior to the Redemption Date and otherwise in accordance with Section 1104 of the Original Indenture, at a Redemption Price equal to 100% of the principal amount of the
Securities to be redeemed, plus accrued and unpaid interest, if any, to but excluding Redemption Date. 
  
 (c) If a Redemption Date is an Interest Payment Date, the semiannual interest on the Securities payable on such Interest Payment Date will
be payable to the Holder of record as of the relevant Regular Record Date, and the Redemption Price will not include such interest payment. 
  
 SECTION 802. Applicability of Article. 
  
 Redemption of Securities at the election of the Company, as permitted by Section 801, shall be made in accordance with such Section and Article Eleven of
the Original Indenture. 
  
 ARTICLE NINE. 
  
 REPURCHASE OF SECURITIES UPON A CHANGE IN CONTROL 
  
 SECTION 901. Right to Require Repurchase. 
  
 Upon the occurrence of a Change in Control, each Holder will have the right
to require the Company to repurchase all or any part of such Holder’s Securities at a Repurchase Price in cash equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the Repurchase Date (subject to the right
of Holders of record on the relevant Regular Record Date to receive interest due on the relevant Interest Payment Date) (the “Change in Control Offer”); provided, however, that notwithstanding the occurrence of a Change in
Control, the Company shall not be obligated to purchase the Securities pursuant to this Article Nine in the event that it has exercised its right to redeem all of the Securities pursuant to Section 801. 
  
 SECTION 902. Notices; Method of Exercising Repurchase Rights.

  
 Within 30 days following any Change in Control (or at the
Company’s option, prior to such Change in Control but after the public announcement thereof), unless the Company has mailed a redemption notice in connection with such Change in Control as described in Section 1104 of the Original Indenture,
the Company shall mail a notice to each holder with a copy to the Trustee stating: 
  
 (i) that a Change in Control has occurred or will occur and that such Holder has (or upon such occurrence will have) the right to require
the Company to 
  

 21 

 purchase such Holder’s Securities at a Repurchase Price in cash equal to 100% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the Repurchase Date (subject to the right of Holders of record on a Regular Record Date to receive interest on the relevant Interest Payment Date) (the “Change in Control Payment”); 
  
 (ii) the circumstances and relevant facts and financial
information regarding such Change in Control; 
  
 (iii) the Conversion Rate then in effect, the date on which the right to convert the Securities will terminate and the place where such Securities may be surrendered for conversion; 
  
 (iv) the Repurchase Date (which shall be no later than 30
days from the date such notice is mailed); 
  
 (v)
the instructions determined by the Company, consistent with this Article Nine, that a Holder must follow in order to have its Securities purchased or to withdraw such election; and 
  
 (vi) that, if such offer is made prior to such Change in Control, payment is conditioned on the occurrence
of such Change in Control. 
  
 Any Holder who has exercised its
election to have its Securities repurchased pursuant to this Article Nine shall have the right to withdraw such election at any time prior to the close of business on the Business Day next preceding the Repurchase Date by delivery of a written
notice of withdrawal to the Payment Agent. Until its election has been so withdrawn, such Holder may not surrender any of such Securities for conversion. 
  
 SECTION 903. Compliance with Law. 
  
 The Company will comply, to the extent applicable, with the requirements of Section 14(e) of the Exchange Act and any other securities laws or regulations
in connection with the repurchase of Securities pursuant to this Article Nine. To the extent that the provisions of any securities laws or regulations conflict with provisions of the Indenture, the Company will comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations described in the Indenture by virtue thereof. 
  
 SECTION 904. Payment. 
  
 On the Repurchase Date, the Company shall, to the extent lawful: 
  

(i) accept for payment all Securities or portions thereof properly tendered and not withdrawn pursuant to the Change in Control Offer;

  
 (ii) deposit by 11:00 a.m., New York City
time, with the Paying Agent an amount equal to the Change in Control Payment in respect of all Securities or portions thereof so tendered; and 
  

 22 

 (iii) deliver or cause to be delivered to the Trustee the Securities so accepted together
with an Officer’s Certificate stating the aggregate principal amount of Securities or portions thereof being purchased by the Company. 
  
 SECTION 905. Certain Definitions. 
  
 For purposes of this Article Nine, 
  
 (a) the term “beneficial owner” shall be determined in accordance with Rule 13d-3 of the Exchange
Act            , as in effect on the date of the original execution of the Indenture, promulgated by the Commission pursuant to the Exchange Act; and 
  
 (b) a “Change in Control” shall be deemed to have occurred at the
time, after the Issue Date, of: 
  
 (i) the
acquisition by any Person (including any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act as in effect on the date of the original execution of this Supplemental Indenture) of beneficial ownership,
directly or indirectly, through a purchase, merger or other acquisition transaction or series of transactions, of shares of Capital Stock of the Company entitling such Person to exercise 50% or more of the total voting power of all shares of Capital
Stock of the Company entitled to vote generally in the election of directors (or persons holding a similar function), other than any such acquisition by the Company, any Subsidiary of the Company or any employee benefit plan of the Company; or

  
 (ii) any consolidation of the Company with, or
a merger of the Company into, any other Person, any merger of another Person into the Company, or any conveyance, sale, transfer, lease or other disposition of all or substantially all of the assets of the Company to another Person (other than (A)
any transaction (x) which does not result in any reclassification, conversion, exchange or cancellation of outstanding shares of Capital Stock of the Company and (y) pursuant to which the holders of the Common Stock immediately prior to such
transaction have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all shares of Capital Stock entitled to vote generally in the election of directors (or persons holding a similar function) of the
continuing or surviving entity immediately after such transaction and (B) any merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares
of Common Stock solely into shares of common stock of the surviving entity; 
  
 provided, however, that a Change in Control shall not be deemed to have occurred if (I) the Last Reported Sale Price of the Common Stock for any five Trading Days within the period of 10 consecutive Trading Days ending
immediately after the later of the Change in Control or the public announcement of the Change in Control (in the case of a Change in Control under clause (i) above) or the period of 10 consecutive Trading Days ending immediately before the Change in
Control (in the case of a Change in Control under clause (ii) above) shall equal or exceed 105% of the Conversion Price of the Securities in effect on such Trading Day or (II) all of the consideration (excluding cash payments for fractional shares
and cash payments made pursuant 
  

 23 

 to dissenters’ appraisal rights) in a merger or consolidation otherwise constituting a Change in Control under
clause (i) and/or clause (ii) above consists of shares of common stock traded on a national securities exchange or quoted on the Nasdaq National Market (or will be so traded or quoted immediately following such merger or consolidation), and as a
result of such merger or consolidation, the Securities become convertible solely into such common stock. 
  
 ARTICLE TEN. 
  
 CONVERSION 
  
 SECTION 1001. Conversion
Privilege. 
  
 A Holder may convert its Securities, at any
time following the Issue Date and before the close of business on the Business Day immediately preceding the Stated Maturity, in whole or in part (in a denomination of $1,000 in principal amount or any integral multiple thereof), into shares of
Common Stock at the Conversion Rate; provided that in the case of a Security all or part of which has been called for redemption pursuant to Article Eight or delivered for repurchase pursuant to Article Nine, such conversion right in respect
to such Security or portion thereof so called or delivered shall expire at the close of business on the Business Day immediately preceding the Redemption Date or Repurchase Date, as the case may be (unless the Company shall default in the payment of
the Redemption Price or Repurchase Price, as applicable, in which case such conversion right shall not terminate at such time). Except as otherwise set forth herein, the terms and provisions of Article Seventeen of the Original Indenture shall be
applicable with respect to the Securities. 
  
 SECTION 1002.
Adjustment of Conversion Rate. 
  
 The Conversion Rate with
respect to any Security which is convertible into Common Stock shall be adjusted from time to time as follows: 
  
 (1) In case the Company shall, at any time or from time to time while any of such Securities are outstanding, (i) pay a dividend in shares
of its Common Stock to holders of Common Stock, (ii) combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock, (iii) subdivide its outstanding shares of Common Stock into a greater number of shares of Common
Stock or (iv) make a distribution in shares of Common Stock to holders of Common Stock, then the Conversion Rate in effect immediately before such action shall be adjusted so that the Holders of the Securities, upon conversion thereof into Common
Stock immediately following such event, shall be entitled to receive the kind and amount of shares of Capital Stock of the Company which they would have owned or been entitled to receive upon or by reason of such event if such Securities had been
converted immediately before the record date (or, if no record date, the effective date) for such event. An adjustment made pursuant to this Section 1002(1) shall become effective retroactively immediately after the record date in the case of a
dividend or distribution and shall become effective retroactively immediately after the effective date in the case of a subdivision or combination. For the purposes of this Section 1002(1), each Holder of Securities shall be deemed to have failed to
exercise any right to elect the kind or amount of securities 
  

 24 

 receivable upon the payment of any such dividend, subdivision, combination or distribution (provided that if the kind or
amount of securities receivable upon such dividend, subdivision, combination or distribution is not the same for each non-electing share, then the kind and amount of securities or other property receivable upon such dividend, subdivision,
combination or distribution for each non-electing share shall be deemed to be the kind and amount so receivable per share by a plurality of the non-electing shares). 
  
 (2) In case the Company shall, at any time or from time to time while any of such Securities are
outstanding, issue rights or warrants to all holders of shares of its Common Stock entitling them (for a period expiring within 45 days after the record date for such issuance) to subscribe for or purchase shares of Common Stock (or securities
convertible into shares of Common Stock) at a price per share less than the Current Market Price of the Common Stock at such record date (treating the price per share of the securities convertible into Common Stock as equal to (x) the sum of (i) the
price for a unit of the security convertible into Common Stock and (ii) any additional consideration initially payable upon the conversion of such security into Common Stock divided by (y) the number of shares of Common Stock initially underlying
such convertible security), the Conversion Rate with respect to such Securities shall be adjusted so that it shall equal the rate determined by dividing the Conversion Rate in effect immediately prior to the date of issuance of such rights or
warrants by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the number of shares or securities which the aggregate offering price of the total
number of shares or securities so offered for subscription or purchase (or the aggregate purchase price of the convertible securities so offered plus the aggregate amount of any additional consideration initially payable upon conversion of such
securities into Common Stock) would purchase at such Current Market Price of the Common Stock, and the denominator of which shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the number
of additional shares of Common Stock offered for subscription or purchase (or into which the convertible securities so offered are initially convertible). Such adjustment shall become effective retroactively immediately after the record date for the
determination of stockholders entitled to receive such rights or warrants. 
  
 (3) In case the Company shall, at any time or from time to time while any of such Securities are outstanding, distribute to all holders of shares of its Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the Successor Company and the Common Stock is not changed or exchanged) cash, evidences of its indebtedness, securities or other assets (excluding (i) dividends payable in shares of Common Stock
for which adjustment is made under Section 1002(1), (ii) rights or warrants to subscribe for or purchase securities of the Company for which adjustment is made under Section 1002(2), and (iii) dividends or distributions paid exclusively in cash
referred to in Section 1002(4)), then in each such case the Conversion Rate with respect to such Securities shall be adjusted so that it shall equal the rate determined by dividing the Conversion Rate in effect immediately prior to the close of
business on the date fixed for determination of holders of shares of Common Stock entitled to receive such distribution by a fraction, the numerator of which shall be 
  

 25 

 the Current Market Price of the Common Stock on the date fixed for determination of holders of shares of Common Stock
entitled to receive such distribution less an amount equal to the quotient of (A) the then-fair market value (as determined by the Board of Directors of the Company, whose determination shall be conclusive and described in a Board Resolution filed
with the Trustee) of the portion of the cash or evidences of indebtedness or securities or other assets so distributed divided by (B) the number of shares of Common Stock outstanding on the date fixed for such determination, and the denominator of
which shall be such Current Market Price; provided, however, in the event that the Company makes any distribution to all holders of Common Stock consisting of Capital Stock in a Subsidiary or other business unit of the Company, the Conversion
Rate shall be adjusted so that it shall equal the rate determined by dividing the Conversion Rate in effect immediately prior to the close of business on the record date fixed for the determination of holders of Common Stock entitled to receive such
distribution by a fraction, the numerator of which shall be the Spin-off Market Price of the Common Stock, and the denominator of which shall be (A) the Spin-off Market Price of the Common Stock plus (B) the Spin-off Market Price of the Capital
Stock of the Subsidiary or other business unit of the Company; provided further, however, that no adjustment shall be made with respect to any distribution of rights to purchase securities of the Company if a Holder of Securities would
otherwise be entitled to receive such rights upon conversion at any time of such Securities into Common Stock unless such rights are subsequently redeemed by the Company, in which case such redemption shall be treated for purposes of this Section as
a dividend on the Common Stock. Such adjustment shall become effective retroactively immediately after the record date for the determination of stockholders entitled to receive such distribution; and in the event that such distribution is not so
made, the Conversion Rate shall again be adjusted to the Conversion Rate which would then be in effect if such record date had not been fixed. 
  
 (4) In case the Company shall, at any time or from time to time while any of such Securities are outstanding, by dividend or otherwise,
distribute to all holders of its Common Stock cash (excluding any cash that is distributed upon a merger or consolidation to which Section 1705 of the Original Indenture applies or as part of a distribution referred to in Section 1002(3)), then and
in each such case, immediately after the close of business on the date fixed for determination of holders of shares of Common Stock entitled to receive such distribution, the Conversion Rate with respect to such Securities shall be adjusted so that
it shall equal the rate determined by dividing the Conversion Rate in effect immediately prior to the close of business on the date fixed for such determination by a fraction, the numerator of which shall be the Current Market Price of the Common
Stock on the date fixed for such determination less an amount equal to the quotient of (A) aggregate amount of such cash distribution divided by (B) the number of shares of Common Stock outstanding on the date fixed for such determination, and the
denominator of which shall be the Current Market Price of the Common Stock on the date fixed for such determination. 
  
 (5) In case a tender offer made by the Company or any of its Subsidiaries for all or any portion of the Common Stock shall expire and any
such tender offer (as amended upon the expiration thereof) shall require the payment to stockholders (based upon the acceptance (up to any maximum specified in the terms of the tender offer) of 
  

 26 

 purchased shares) of an aggregate consideration having a fair market value (as determined by the Board of Directors,
whose determination shall be conclusive) that, combined together with: 
  
 (i) the aggregate of cash plus the fair market value (as determined by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution filed with the Trustee), as of the expiration
of such tender offer, of consideration payable in respect of any other tender offer by the Company or any of its Subsidiaries for all or any portion of the Common Stock concluded within the 12 months preceding the expiration of such tender offer and
in respect of which no adjustment pursuant to Section 1002(4) has been made, and 
  
 (ii) the aggregate amount of any distributions to all holders of the Common Stock made exclusively in cash within the 12 months preceding
the expiration of such tender offer and in respect of which no adjustment pursuant to Section 1002(4) has been made (the amount of such cash distribution together with the amounts described in clause (i) above and this clause (ii) being referred to
herein as the “Aggregate Tender Distribution Amount”), 
  
 exceeds 10% of the product of (x) the Current Market Price of the Common Stock as of the last time (the “Expiration Time”) tenders could have been made pursuant to such tender offer (as it may be amended), times (y) the number of
shares of Common Stock outstanding (including any tendered shares) on the Expiration Time, then, and in each such case, immediately prior to the opening of business on the day after the date of the Expiration Time, the Conversion Rate with respect
to such Securities shall be adjusted so that it shall equal the rate determined by dividing the Conversion Rate in effect immediately prior to the close of business on the date of the Expiration Time by a fraction, the numerator of which shall be
equal to the product of (A) the Current Market Price of the Common Stock on the date of the Expiration Time multiplied by (B) the number of shares of Common Stock outstanding (including any tendered shares) on the date of the Expiration Time, less
the Aggregate Tender Distribution Amount, and the denominator of which shall be equal to the product of (A) the Current Market Price of the Common Stock on the date of the Expiration Time multiplied by (B) the difference between the number of shares
of Common Stock outstanding (including any tendered shares) on the date of the Expiration Time and the number of all shares validly tendered and not withdrawn as of the Expiration Time. 
  
 (6) The Company shall be entitled to make such additional adjustments in the Conversion Rate, in addition to
those required by subsections 1002(1), 1002(2), 1002(3), 1002(4) and 1002(5), as it shall consider necessary in order that any dividend or distribution of Common Stock, any subdivision, reclassification or combination of shares of Common Stock or
any issuance of rights or warrants referred to above shall not be taxable to the holders of Common Stock for United States Federal income tax purposes. 
  

 27 

 (7) In any case in which this Section 1002 shall require that any adjustment be made
effective as of or retroactively immediately following a record date, the Company may elect to defer (but only for five (5) Trading Days following the filing of the statement referred to in Section 1003) issuing to the Holder of any Securities
converted after such record date the shares of Common Stock and other capital stock of the Company issuable upon such conversion over and above the shares of Common Stock and other capital stock of the company issuable upon such conversion on the
basis of the Conversion Rate prior to adjustment; provided, however, that the Company shall deliver to such Holder a due bill or other appropriate instrument evidencing such Holder’s right to receive such additional shares upon
the occurrence of the event requiring such adjustment. 
  
 (8) All calculations under this Section 1002 shall be made to the nearest cent or one-hundredth of a share or security, with one-half cent and 0.005 of a share, respectively, being rounded upward. Notwithstanding any other provision of this
Section 1002, the Company shall not be required to make any adjustment of the Conversion Rate unless such adjustment would require an increase or decrease of at least 1.0% of such rate. Any lesser adjustment shall be carried forward and shall be
made at the time of and together with the next subsequent adjustment which, together with any adjustment or adjustments so carried forward, shall amount to an increase or decrease of at least 1.0% in such rate. Any adjustments under this Section
1002 shall be made successively whenever an event requiring such an adjustment occurs. 
  
 (9) In the event that at any time, as a result of an adjustment made pursuant to this Section 1002, the Holder of any Security thereafter
surrendered for conversion shall become entitled to receive any shares of stock of the Company other than shares of Common Stock into which the Securities originally were convertible, the Conversion Rate of such other shares so receivable upon
conversion of any such Security shall be subject to adjustment from time to tine in a manner and on terms as nearly equivalent as practicable to the provisions with respect to Common Stock contained in this Article Ten with respect to the Common
Stock shall apply on like or similar terms to any such other shares and the determination of the Board of Directors as to any such adjustment shall be conclusive. 
  
 (10) No adjustment shall be made pursuant to this Section, subject to Section 1002(7) hereof, with respect
to any Security that is converted prior to the time such adjustment otherwise would be made. No such adjustment need be made if Holders will otherwise participate in the transaction without conversion on a basis and with notice that the Board of
Directors determines to be fair and appropriate in light of the basis and notice on which holders of Common Stock participate in the transaction. No such adjustment need be made for rights to purchase Common Stock pursuant to a Company plan for
reinvestment of dividends or interest or additional optional cash amounts. No such adjustment need be made upon the issuance of any Common Stock or options or rights to purchase Common Stock pursuant to any current or future employee, director or
consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries. No such adjustment need be made upon the issuance of any Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible
security 
  

 28 

 not described in the preceding sentence and outstanding as of the Issue Date, including the
Company’s 4.75% Convertible Senior Notes due 2008 and the 71⁄4% Mandatorily Redeemable Convertible Preferred Securities of its Subsidiary, Hanover Compressor Capital Trust. 
  
 (11) To the extent permitted by applicable law, the Company from time to time may increase the Conversion
Rate by any amount for any period of time if the period is at least 20 days, the increase is irrevocable during such period, and the Board of Directors shall have made a determination that such increase would be in the best interests of the Company,
which determination shall be conclusive and described in a Board Resolution filed with the Trustee; provided, however, that no such increase shall be taken into account for purposes of determining whether the Last Reported Sale Price
of the Common Stock exceeds the Conversion Price by 105% in connection with an event which would otherwise be a Change in Control. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company shall give notice of the
increase to the Holders in the manner provided in Section 106 of the Original Indenture at least 15 days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the period during
which it will be in effect. 
  
 This Section 1002 shall be
applicable with respect to the Securities in lieu of Section 1704 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 SECTION 1003. Notice of Adjustment of the Conversion Rate. 
  

Whenever an adjustment in the Conversion Rate with respect to a series of Securities is required: 
  
 (1) the Company shall compute the adjusted Conversion Rate in
accordance with Section 1002 and forthwith place on file with the Trustee and any Conversion Agent for such Securities a certificate of the Treasurer or chief financial or accounting officer of the Company, stating the adjusted Conversion Rate
determined as provided herein and setting forth in reasonable detail such facts as shall be necessary to show the reason for and the manner of computing such adjustment, such certificate to be conclusive evidence that the adjustment is correct,
absent manifest error; and 
  
 (2) a notice
stating that the Conversion Rate has been adjusted and setting forth the adjusted Conversion Rate shall forthwith be required, and as soon as practicable after it is required, such notice shall be mailed, first class postage prepaid, by the Company
to the Holders of such Outstanding Securities at their last addresses as they shall appear in the Security Register. 
  
 SECTION 1004. Listing of Common Stock; Par Value of Stock. 
  

(a) The Company will endeavor to list the shares of Common stock required to be delivered upon conversion of the Securities prior to
such delivery upon the principal national securities exchange upon which the outstanding Common Stock is listed at the time of such delivery. 
  

 29 

 (b) The Company agrees that all shares of Common Stock which may be issued upon
conversion of the Securities will, upon issuance, have been duly authorized and validly issued and will be fully paid and nonassessable and, except as provided in Section 1707 of the Original Indenture, the Company will pay all taxes, liens and
charges with respect to the issue thereof. 
  
 SECTION 1005.
Company Determination Final. 
  
 Any determination that the
Company or the Board of Directors must make pursuant to this Article is conclusive and binding upon the Holders, absent manifest error. 
  
 ARTICLE ELEVEN. 
  
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE 
  
 SECTION 1101. Company’s Option to Effect Legal Defeasance or Covenant Defeasance. 
  
 The Company may, at its option, at any time, with respect to the Securities,
elect to have either Section 1102 or Section 1103 be applied to all Outstanding Securities upon compliance with the conditions set forth in this Article Eleven. 
  

SECTION 1102. Legal Defeasance and Discharge. 
  
 Upon the Company’s exercise under Section 1101 of the option applicable to this Section 1102, the Company shall be deemed to have been discharged
from its obligations with respect to all Outstanding Securities on the date the conditions set forth in Section 1104 are satisfied (hereinafter, “Legal Defeasance”). For this purpose, such Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by the Outstanding Securities, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section 1105 and the other Sections of the Indenture
referred to in (i) and (ii) below, and to have satisfied all its other obligations under such Securities and the Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until otherwise terminated or discharged under the Indenture: (i) the rights of Holders of Outstanding Securities to receive, solely from the trust fund described in Section 1104
and as more fully set forth in such Section, payments in respect of the principal of, and interest on, such Securities when such payments are due, (ii) the Company’s obligations with respect to such Securities under Sections 304, 305, 306, 1002
and 1003 of the Original Indenture, (iii) the rights of the Holders of Outstanding Securities to convert such Securities into Common Stock pursuant to Article Ten, (iv) the rights, powers, trusts, duties and immunities of the Trustee under the
Indenture, and the Company’s obligations in connection therewith, and (v) this Article Eleven. 
  

 30 

 If the Company exercises its Legal Defeasance Option, payment of the Securities may not be accelerated
because of an Event of Default. 
  
 Subject to compliance with
this Article Eleven, the Company may exercise its option under this Section 1102 notwithstanding the prior exercise of its option under Section 1103 with respect to the Securities. 
  
 This Section 1102 shall be applicable with respect to the Securities in lieu of Section 1502 of the Original Indenture
(which shall be of no force and effect for the Securities). 
  
 SECTION 1103. Covenant Defeasance. 
  
 Upon the
Company’s exercise under Section 1101 of the option applicable to this Section 1103, the Company may terminate (a) its obligations under any covenant contained in Sections 701 through 704, except Section 703(a), and (b) the operation of Section
401(v), Section 401(vi) (with respect only to Significant Subsidiaries), Section 401(vii) (with respect only to Significant Subsidiaries), and Section 401(viii), with respect to the Outstanding Securities on and after the date the conditions set
forth below are satisfied (hereinafter, “Covenant Defeasance”), and the Securities shall thereafter be deemed not to be “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed “Outstanding” for all other purposes under the Indenture (it being understood that such Securities will not be outstanding for accounting
purposes). If the Company exercises its Covenant Defeasance option, payment of the Securities may not be accelerated because of an Event of Default specified under Section 401(iv), (v), (vi) (with respect only to Significant Subsidiaries), (vii)
(with respect only to Significant Subsidiaries), or (viii). For this purpose, such Covenant Defeasance means that, with respect to the Outstanding Securities, the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere in the Indenture to any such covenant or by reason of any reference in any such covenant to any other provision therein or
in any other document and such omission to comply shall not constitute a default or an Event of Default under Section 401(iv), but, except as specified above, the remainder of the Indenture and such Securities shall be unaffected thereby.

  
 This Section 1103 shall be applicable with respect to the
Securities in lieu of Section 1503 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 SECTION 1104. Conditions to Legal Defeasance or Covenant Defeasance. 
  
 The following shall be the conditions to application of either Section 1102 or Section 1103 to the Outstanding Securities:

  
 (i) The Company shall irrevocably have
deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements of Section 609 of the Original Indenture who shall agree to comply with the provisions of this Article Eleven applicable to it) as trust funds,
money or U.S. Government Obligations, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants selected by the Company, to pay the principal of, and 
  

 31 

 interest due on, the Outstanding Securities on the Stated Maturity or on the applicable Redemption Date
as the case may be, of such principal, or interest on, the Outstanding Securities; 
  
 (ii) in the case of Legal Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee (which opinion may be subject to customary assumptions and exclusions) confirming that (A) the Company has received from, or there has been published by, the United States Internal Revenue Service a ruling or (B)
since the date of this Supplemental Indenture, there has been a change in the applicable U.S. Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel in the United States (which opinion may be subject to
customary assumptions and exclusions) shall confirm that, the Holders of the Outstanding Securities will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such Legal Defeasance and will be subject to U.S. Federal
income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 
  
 (iii) in the case of Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee (which opinion may be subject to customary assumptions and exclusions) confirming that the Holders of the Outstanding Securities will not recognize income, gain or loss for U.S. Federal income tax purposes as a
result of such Covenant Defeasance and will be subject to such tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
  
 (iv) no default or Event of Default shall have occurred and
be continuing on the date of such deposit or insofar as Events of Default from bankruptcy or insolvency events are concerned, at any time in the period ending on the 121st day after the date of deposit; 
  
 (v) such Legal Defeasance or Covenant Defeasance shall not
result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than the Indenture) to which the Company is a party or by which the Company is bound; 
  
 (vi) the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that, as of the date of such opinion and subject to customary assumptions and exclusions following the deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally under any applicable U.S. Federal or state law, and that the Trustee has a perfected security interest in such trust funds for the ratable benefit of the Holders; 

 
 (vii) the Company shall have delivered to the Trustee an
Officer’s Certificate stating that the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any creditors of the Company or others; 
  

 32 

 (viii) the Company shall have delivered to the Trustee an Officer’s Certificate and
an Opinion of Counsel in the United States (which Opinion of Counsel may be subject to customary assumptions and exclusions) each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance, as
the case may be, have been complied with; and 
  
 (ix) the Company shall have delivered to the Trustee the opinion of a nationally recognized firm of independent public accountants stating the matters set forth in paragraph (i) above. 
  
 This Section 1104 shall be applicable with respect to the Securities in lieu
of Section 1504 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 SECTION 1105. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions. 
  
 Subject to the provisions of the last paragraph of Section 1003 of the
Original Indenture, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 1105, the “Trustee”) pursuant to Section 1104
in respect of the Outstanding Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and the Indenture, to the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal and interest, but such money need not be segregated from other funds except to the
extent required by law. 
  
 The Company shall pay and indemnify
the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 1104 or the principal and interest received in respect thereof. 
  
 Anything in this Article Eleven to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any money or U.S. Government Obligations held by it as provided in Section 1104 which, in the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance, as applicable, in accordance
with this Article. 
  
 This Section 1105 shall be applicable with
respect to the Securities in lieu of Section 1505 of the Original Indenture (which shall be of no force and effect for the Securities). 
  
 SECTION 1106. Reinstatement. 
  
 If the Trustee or any Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with Section 1105 by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under the Indenture and the Securities shall be 
  

 33 

 revived and reinstated as though no deposit had occurred pursuant to Section 1102 or 1103, as the case may be, until such
time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with Section 1105; provided, however, that if the Company makes any payment of principal of, or interest on, any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money and U.S. Government Obligations held by the Trustee or Paying Agent. 

 
 This Section 1106 shall be applicable with respect to the Securities in
lieu of Section 1506 of the Original Indenture (which shall be of no force and effect for the Securities). 
  

 34 

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

	HANOVER COMPRESSOR COMPANY
	
	By    /s/ John E. Jackson
	

	 Name: John E. Jackson

	 Title: Senior Vice President and Chief Financial Officer

	
	 WACHOVIA BANK, NATIONAL
ASSOCIATION, as Trustee

	
	By    /s/ R. Douglas Milner
	

	 Name: R. Douglas Milner

	 Title: Vice President

	

  

 35 

 EXHIBIT A 
  
 FORM OF SECURITY 
  
 [Global Legend, if applicable] 
  

	 No. [        ] 
	 $[                                    ]

  
 CUSIP NO.
                                 
  
 HANOVER COMPRESSOR COMPANY

  
 4.75% CONVERTIBLE SENIOR
NOTE DUE 2014 
  
 Hanover Compressor
Company, a corporation duly organized and existing under the laws of Delaware (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay
to
[                                       
 ], or registered assigns, the principal sum of
[                                        
    ] Dollars on January 15, 2014, and to pay interest thereon from December 15, 2003 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually on January 15 and July 15
in each year, commencing July 15, 2004, at the rate of 4.75% per annum, until the principal hereof is paid or made available for payment, provided that any principal, and any such installment of interest, which is overdue shall bear interest
at the rate of 4.75% per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment, and such interest shall be payable on demand. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which shall be the January 1 or July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 
  
 Payment of the principal of and interest on this Security will be made at the
office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, 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; provided, however, that at the option of the Company payment of interest on Securities in definitive form may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register. 
  

 A-1 

 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  
 IN WITNESS Whereof, the Company has caused this instrument to be duly executed. 
  

	HANOVER COMPRESSOR COMPANY
	
	By:
	

	 Title:

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

	 WACHOVIA BANK, NATIONAL
ASSOCIATION, as Trustee

	
	By:
	

	 Authorized Signatory

  
 Dated:
                         , 200   
  

 A-2 

 [FORM OF REVERSE SIDE OF SECURITY] 
  
 4.75% CONVERTIBLE SENIOR NOTE DUE 2014 
  
 1. Interest 
  
 Hanover Compressor Company, a Delaware corporation (such corporation, and its successors and assigns under the Indenture
hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum shown above. 
  
 The Company will pay interest semiannually in cash and in arrears to Holders of record at the close of business on the
January 1 and July 1 immediately preceding the Interest Payment Date on January 15 and July 15 of each year, commencing on July 15, 2004. Interest on the Securities will accrue from the most recent date to which interest has been paid on the
Securities or, if no interest has been paid, from December 15, 2003. The Company shall pay interest on overdue principal (plus interest on such interest to the extent lawful), at the rate borne by the Securities to the extent lawful. Interest will
be computed on the basis of a 360-day year of twelve 30-day months. 
  
 2.
Method of Payment 
  
 By at least 11:00 a.m. (New York
City time) on the date on which any principal of or interest on the Securities is due and payable, the Company shall irrevocably deposit with the Trustee or the Paying Agent money sufficient to pay such principal and/or interest. The Company will
pay interest (except Defaulted Interest) to the Persons who are registered Holders of Securities at the close of business on the January 1 or July 1 next preceding the Interest Payment Date even if the Securities are cancelled, repurchased or
redeemed after the record date and on or before the Interest Payment Date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United States that at the time
of payment is legal tender for payment of public and private debts. However, the Company may pay interest on any Security in definitive form by check payable in such money. It may mail an interest check to a Holder’s registered address. Upon
written application by the Holder of Securities aggregating more than $2.0 million in principal amount to the Paying Agent not later than the relevant record date, the Company will pay interest on such Securities by transfer of immediately available
funds to a Dollar account maintained by such Holder with a bank in the United States. 
  
 3. Trustee, Paying Agent, Conversion Agent and Security Registrar 
  
 Initially, Wachovia Bank, National Association, a national banking association (the “Trustee”), will act as Trustee, Paying Agent, Conversion Agent and Security Registrar. The Company may appoint and change
any Paying Agent, Conversion Agent, Security Registrar or co-registrar without notice to any Holder. The Company may act as Paying Agent, Security Registrar or co-registrar. 
  

 A-3 

 4. Indenture 
  
 The Company issued the Securities under the Second Supplemental Indenture dated as of December 15, 2003 (as it may be amended or supplemented from time to
time in accordance with the terms thereof, the “Supplemental Indenture”), between the Company and the Trustee to the Senior Indenture dated as of December 15, 2003 (as it may be amended or supplemented from time to time in accordance with
the terms thereof, the “Original Indenture” and, as amended and supplemented by the Supplemental Indenture, the “Indenture”). For the sake of clarity, each reference to the Indenture shall mean the Original Indenture as amended
by the Supplemental Indenture, and future amendments and supplements, the provisions of which relate to the Securities and not future issuances of debt securities under the Original Indenture other than these Securities. The terms of the Securities
include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Capitalized
terms used herein and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Holders are referred to the Indenture and the Act for a statement of those terms. 
  
 The Securities are general unsecured senior obligations of the Company and
are limited to an aggregate principal amount of $143,750,000. 
  
 5. Optional
Redemption 
  
 At any time on or after January 15, 2011 and
prior to January 15, 2013, the Company may, at its option, redeem the Securities, in whole at any time or in part from time to time, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and
unpaid interest, if any, to but excluding the Redemption Date, if the Last Reported Sale Price of the Common Stock has exceeded 135% of the Conversion Price then in effect for at least 20 Trading Days within a period of 30 consecutive Trading Days
ending on the Trading Day prior to the date on which the Company mails the notice of redemption pursuant to Section 1104 of the Original Indenture. 
  
 Except as set forth in the previous paragraph, the Securities may not be redeemed at the option of the Company prior to January 15, 2013. On and
after January 15, 2013, the Company may, at its option, redeem the Securities, in whole at any time or in part from time to time, on any date prior to the Stated Maturity, at a Redemption Price equal to 100% of the principal amount of the Securities
to be redeemed, plus accrued and unpaid interest, if any, to but excluding Redemption Date. 
  
 If a Redemption Date is an Interest Payment Date, the semiannual interest on the Securities payable on such Interest Payment Date will be payable to the Holder of record as of the relevant Regular Record Date, and the
Redemption Price will not include such interest payment. 
  
 6. Notice of
Redemption 
  
 Notice of redemption will be mailed at least
20 days but not more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at his registered 
  

 A-4 

 address. Securities in denominations of principal amount larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000. If money sufficient to pay the Redemption Price of and accrued and unpaid interest on all Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the Paying Agent on or before the Redemption Date
and certain other conditions are satisfied, on and after such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
  
 7. Put Provisions 
  
 Upon a Change in Control, any Holder of Securities will have the right to cause the Company to repurchase all or any part of the Securities of such Holder
at a Repurchase Price equal to 100% of the principal amount thereof plus accrued and unpaid interest to the Repurchase Date as provided in, and subject to the terms of, the Indenture. 
  
 8. Conversion 
  
 A Holder may convert its Securities, at any time following the Issue Date and before the close of business on the Business Day immediately preceding the
Stated Maturity, in whole or in part (in a denomination of $1,000 in principal amount or any integral multiple thereof), into shares of Common Stock at the Conversion Rate; provided that in the case of a Security all or part of which has been
called for redemption as described in paragraph 5 above or delivered for repurchase pursuant to paragraph 7 above, such conversion right in respect to such Security or portion thereof so called or delivered shall expire at the close of business on
the Business Day immediately preceding the Redemption Date or Repurchase Date, as the case may be (unless the Company shall default in the payment of the Redemption Price or Repurchase Price, as applicable, in which case such conversion right shall
not terminate at such time). 
  
 The Conversion Rate is initially
equal to 66.6667 shares of Common Stock per $1,000 principal amount of Securities, subject to adjustment in certain events described in the Indenture. In addition the Company may increase the Conversion Rate for any period of at least 20 days upon
at least 15 days’ notice. The Company shall deliver cash or a check in lieu of any fractional share of Common Stock. 
  
 If the Company is a party to a consolidation, merger or sale of assets, then at the effective time of such transaction the right to convert a Security
into Common Stock may be changed into a right to convert it into securities, cash or other assets of the Company or another Person. 
  
 9. Denominations; Transfer; Exchange 
  
 The Securities are in registered form without coupons in denominations of principal amount of $1,000 and whole multiples of $1,000. A Holder may transfer
or exchange Securities in accordance with the Indenture. The Security Registrar may require a Holder, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes required by law. The Security Registrar need not
register the transfer of or exchange of any Security selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities during a period beginning 15 days before a
selection of Securities to be redeemed and ending on the date of such selection. 
  

 A-5 

 10. Persons Deemed Owners 
  
 The registered holder of this Security may be treated as the owner of it for all purposes. 
  
 11. Unclaimed Money 
  
 If money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the
money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Company and not to the Trustee for payment. 
  
 12. Defeasance 
  
 Subject to certain conditions set forth in the Indenture, the Company at any time may terminate some or all of its
obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of principal and interest on the Securities to redemption or Stated Maturity, as the case may be.

  
 13. Amendment, Waiver 
  
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at least a majority in principal amount of the Outstanding Securities and (ii) any default or noncompliance with any provision may be waived with the written consent of the
Holders of a majority in principal amount of the Outstanding Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the Company and the Trustee may amend the Indenture or the Securities to, among
other things, cure any ambiguity, omission, defect or inconsistency, or to comply with Article Four of the Supplemental Indenture, or to provide for uncertificated Securities in addition to or in place of certificated Securities, or to add
guarantees with respect to the Securities or to secure the Securities, or to add additional covenants or Events of Default or surrender rights and powers conferred on the Company, or to comply with any requirement of the Commission in connection
with qualifying the Indenture under the Trust Indenture Act, or to make any other change that does not adversely affect the rights of any Holder. 
  
 14. Defaults and Remedies 
  
 Under the Indenture, Events of Default include (i) a default in any payment of interest on any Security when due, continued for 30 days, (ii) a default in
the payment of principal of any Security when due at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise, (iii) the failure by the Company to comply with its obligations under Section 501 of the
Supplemental Indenture, (iv) the failure by the Company (A) to give away notice required by Section 902 of the Supplemental Indenture, (B) to make any required Change of Control Payment or (C) to comply for 60 days after notice with its other
agreements contained in the Securities or the Indenture, (v) the failure by the Company or any Subsidiary to pay any indebtedness for money borrowed within any applicable grace period after final maturity or the acceleration of any such indebtedness
by the holders thereof because of a default if the total amount of such indebtedness unpaid or accelerated exceeds $20.0 million, 
  

 A-6 

 (vi) certain events of bankruptcy, insolvency or reorganization of the Company, a Significant Subsidiary or any group of
Subsidiaries that, taken together (as of the latest audited consolidated financial statements of the Company and its Subsidiaries), would constitute a Significant Subsidiary, or (vii) the rendering of any judgment or decree for the payment of money
in an amount (net of any insurance or indemnity payments actually received in respect thereof prior to or within 90 days from the entry thereof, or to be received in respect thereof in the event any appeal thereof shall be unsuccessful) in excess of
$20.0 million against the Company or a Significant Subsidiary that is not discharged, bonded or insured by a third Person if (A) an enforcement proceeding thereon is commenced or (B) such judgment or decree remains outstanding for a period of 60
days following such judgment or decree and is not discharged, waived or stayed. If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Outstanding Securities may declare all the
Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 
  
 Holders may not enforce the Indenture or the Securities except as provided in
the Indenture. The Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee
in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing default or Event of Default (except a default or Event of Default in payment of principal or interest) if it determines that withholding notice is
in their interests. 
  
 15. Trustee Dealings with the Company 

 
 Subject to certain limitations set forth in the Indenture, 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 Trustee. 
  
 16.
Calculations in Respect of the Securities 
  
 The Company
shall be responsible for making all calculations called for under the Securities. These calculations shall include, without limitation, determination of accrued interest payable, the Last Reported Sale Price of Common Stock and the Conversion Price
or Rate. The Company shall make such calculations in good faith and, absent manifest error, such calculations shall be final and binding on the Holders. The Company shall provide a schedule of such calculations to the Trustee, Paying Agent and
Conversion Agent, who may conclusively rely on such calculations without independent verification. The Trustee will forward such calculations to any Holder upon its request. 
  
 17. No Recourse Against Others 
  
 A director, officer, employee, incorporator, limited partner, member or stockholder, as such, of the Company shall not have any liability for any
obligations of the 
  

 A-7 

 Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations
or their creation. By accepting a Security, each Holder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
  
 18. Authentication 
  
 This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent acting on its behalf) manually signs the
certificate of authentication on the other side of this Security. 
  
 19.
Abbreviations 
  
 Customary abbreviations may be used in
the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entirety), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian) and U/G/M/A (=Uniform Gift to Minors
Act). 
  
 20. CUSIP Numbers 
  
 Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 21. Governing Law 
  
 THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

 
 The Company will furnish to any Holder upon written request and without
charge to the Holder a copy of the Indenture. Requests may be made to: 
  
 Hanover Compressor Company 
 12001 North Houston Rosslyn 
 Houston, Texas 77086 
 Attention: Treasurer 
  

 A-8 

 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below: 
  
 I or we assign and transfer this Security to 
  
 (Print or type assignee’s name, address and zip code) 
  
 (Insert assignee’s soc. sec. or tax I.D. No.) 
  
 and irrevocably appoint
                         agent to transfer this Security on the books of the Company. The agent may substitute another to
act for him. 
  

  

	 Date:
	  	Your Signature:                                   
                              
	
	  	

	
	 Signature Guarantee:

	

	                        (Signature
must be guaranteed)
	
	

	Sign exactly as your name appears on the other side of this Security.

  
 The signature(s) should be guaranteed
by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in the Securities Transfer Agents Medallion Program (“STAMP”) or such other signature guarantee medallion program as
may be approved by the Security Registrar in addition to or substitution for, STAMP), pursuant to S.E.C. Rule 17Ad-15. 
  

 A-9 

 [TO BE ATTACHED TO GLOBAL SECURITIES] 
  
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
  
 The following increases or decreases in this Global Security have been made: 
  

	 Date of Exchange

	  	Amount of decrease in
Principal Amount of
this Global Security

	  	Amount of increase in
Principal Amount of
this Global Security

	  	Principal Amount of this
Global Security following
such decrease or increase

	  	Signature of authorized
signatory of Trustee or
Securities Custodian

  

 A-10 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Security purchased by the Company pursuant to Article Nine of the Supplemental Indenture,
check the box: 
  
  ̈ 
  
 If you want to elect to have only part of this Security purchased by the Company pursuant to Article Nine of the Supplemental Indenture, state the amount in principal amount (must be integral multiple of $1,000): 
  
 $                                      
   
  

	Date:	                                      
           Your Signature
                                        
                                        
                                        
         

 (Sign exactly as your name appears on the other side of the
Security)                                       
      
  
 Signature Guarantee:
                                        
                                        
     
 (Signature must be guaranteed) 
  
 The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit
unions) with membership in the Securities Transfer Agents Medallion Program (“STAMP”) or such other signature guarantee medallion program as may be approved by the Security Registrar in addition to or substitution for STAMP, pursuant to
S.E.C. Rule 17Ad-15. 
  

 A-11 

 CONVERSION NOTICE 
  
 To: Hanover Compressor Company 
  
 The undersigned owner of this Security hereby: (i) irrevocably exercises the option to convert this Security, or the portion hereof below designated, for
shares of Common Stock of Hanover Compressor Company in accordance with the terms of the Indenture referred to in this Security and (ii) directs that such shares of Common Stock deliverable upon the conversion, together with any check in payment for
fractional shares and any Security(ies) representing any unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless a different name has been indicated below. If shares are to be delivered registered in the
name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. Any amount required to be paid by the undersigned on account of interest accompanies this Security. 
  

	 	 	 	 	 	 	 	 	 	 	 
						
	 	 	Date	 	  

	 	 	 	 	 	  

	 	 	 	 	 	 	 	 	 	 	 Signature

  
 Fill in for
registration of shares if to be delivered, and of Securities if to be issued, otherwise than to and in the name of the registered holder. 
  

	 
		
	 	 	 
	 	

	 	 	 Social Security or other
 Taxpayer Identification Number

  

	 
	
	  
	

	 (Name)

  

	 
	
	  
	

	 (Street Address)

  

	 
	
	  
	

	 (City, State and Zip Code)
 (Please print name and address)

  
 Principal amount to be converted: (if less than all) 
  
 $                         
  
 Signature Guarantee* 
  

 *Participant in a recognized Signature Guarantee Medallion Program (or other signature acceptable to the Trustee). 
  

 A-12

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