Document:

mercury-indentureex41edg

ACTIVE/106960961.1                             MITEK SYSTEMS, INC.       and    UMB Bank, National Association      as Trustee    INDENTURE      Dated as of February 5, 2021        0.750% Convertible Senior Notes due 2026                                    

 

ACTIVE/106960961.1      i    TABLE OF CONTENTS  Page  ARTICLE 1 Definitions; Rules of Construction ............................................................................ 1  Section 1.01 Definitions. ......................................................................................................... 1  Section 1.02 Other Definitions. ............................................................................................. 12  Section 1.03 Rules of Construction. ...................................................................................... 13  ARTICLE 2 The Notes ................................................................................................................. 13  Section 2.01 Form, Dating and Denominations. .................................................................... 13  Section 2.02 Execution, Authentication and Delivery. .......................................................... 14  Section 2.03 Initial Notes and Additional Notes. .................................................................. 15  Section 2.04 Method of Payment. .......................................................................................... 15  Section 2.05 Accrual of Interest; Defaulted Amounts; When Payment Date is Not a Business  Day. ................................................................................................................... 16  Section 2.06 Registrar, Paying Agent and Conversion Agent. .............................................. 16  Section 2.07 Paying Agent and Conversion Agent to Hold Property in Trust. ..................... 17  Section 2.08 Holder Lists. ...................................................................................................... 18  Section 2.09 Legends. ............................................................................................................ 18  Section 2.10 Transfers and Exchanges; Certain Transfer Restrictions. ................................. 19  Section 2.11 Exchange and Cancellation of Notes to Be Converted or Repurchased. .......... 24  Section 2.12 Removal of Transfer Restrictions. .................................................................... 25  Section 2.13 Replacement Notes. .......................................................................................... 25  Section 2.14 Registered Holders; Certain Rights with Respect to Global Notes. ................. 25  Section 2.15 Cancellation. ..................................................................................................... 26  Section 2.16 Notes Held by the Company or its Affiliates. ................................................... 26  Section 2.17 Temporary Notes. ............................................................................................. 26  Section 2.18 Outstanding Notes. ............................................................................................ 26  Section 2.19 Repurchases by the Company. .......................................................................... 27  Section 2.20 CUSIP and ISIN Numbers. ............................................................................... 27  ARTICLE 3 Covenants ................................................................................................................. 27  Section 3.01 Payment on Notes. ............................................................................................ 27  Section 3.02 Exchange Act Reports. ..................................................................................... 28  Section 3.03 Rule 144A Information. .................................................................................... 28  Section 3.04 Additional Interest. ........................................................................................... 28  Section 3.05 Compliance and Default Certificates. ............................................................... 29  Section 3.06 Stay, Extension and Usury Laws. ..................................................................... 30  Section 3.07 Notes Acquired by the Company. ..................................................................... 30  Section 3.08 Existence. .......................................................................................................... 30  ARTICLE 4 Repurchase and Redemption .................................................................................... 30  Section 4.01 No Sinking Fund. .............................................................................................. 30  Section 4.02 Right of Holders to Require the Company to Repurchase Notes upon a  Fundamental Change. ....................................................................................... 30  Section 4.03 No Right of Redemption by the Company. ...................................................... 35  ARTICLE 5 Conversion ............................................................................................................... 35  Section 5.01 Right to Convert. ............................................................................................... 35  Section 5.02 Conversion Procedures. .................................................................................... 38  Section 5.03 Settlement upon Conversion. ............................................................................ 40  

 

ACTIVE/106960961.1      ii    Section 5.04 Reserve and Status of Common Stock Issued upon Conversion. ..................... 43  Section 5.05 Adjustments to the Conversion Rate. ............................................................... 43  Section 5.06 Voluntary Adjustments. .................................................................................... 53  Section 5.07 Adjustments to the Conversion Rate in Connection with a Make-Whole  Fundamental Change. ....................................................................................... 54  Section 5.08 Exchange in Lieu of Conversion. ..................................................................... 55  Section 5.09 Effect of Common Stock Change Event. .......................................................... 55  Section 5.10 Conversion Limitation. ..................................................................................... 57  Section 5.11 Conversion Agent. ............................................................................................ 58  ARTICLE 6 Successors ................................................................................................................ 59  Section 6.01 When the Company May Merge, Etc. .............................................................. 59  Section 6.02 Successor Corporation Substituted. .................................................................. 60  ARTICLE 7 Defaults and Remedies ............................................................................................. 60  Section 7.01 Events of Default. ............................................................................................. 60  Section 7.02 Acceleration. ..................................................................................................... 62  Section 7.03 Sole Remedy for a Failure to Report. ............................................................... 62  Section 7.04 Other Remedies. ................................................................................................ 63  Section 7.05 Waiver of Past Defaults. ................................................................................... 64  Section 7.06 Control by Majority. ......................................................................................... 64  Section 7.07 Limitation on Suits. ........................................................................................... 64  Section 7.08 Absolute Right of Holders to Institute Suit for the Enforcement of the Right to  Receive Payment and Conversion Consideration. ............................................ 65  Section 7.09 Collection Suit by Trustee. ............................................................................... 65  Section 7.10 Trustee May File Proofs of Claim. ................................................................... 65  Section 7.11 Priorities. ........................................................................................................... 66  Section 7.12 Undertaking for Costs. ...................................................................................... 66  ARTICLE 8 Amendments, Supplements and Waivers ................................................................ 66  Section 8.01 Without the Consent of Holders. ...................................................................... 66  Section 8.02 With the Consent of Holders. ........................................................................... 67  Section 8.03 Notice of Amendments, Supplements and Waivers. ........................................ 68  Section 8.04 Revocation, Effect and Solicitation of Consents; Special Record Dates; Etc. . 68  Section 8.05 Notations and Exchanges. ................................................................................. 69  Section 8.06 Trustee to Execute Supplemental Indentures. ................................................... 69  ARTICLE 9 Satisfaction and Discharge ....................................................................................... 70  Section 9.01 Termination of Company’s Obligations. .......................................................... 70  Section 9.02 Repayment to Company. ................................................................................... 70  Section 9.03 Reinstatement. ................................................................................................... 71  ARTICLE 10 Trustee .................................................................................................................... 71  Section 10.01 Duties of the Trustee. ........................................................................................ 71  Section 10.02 Rights of the Trustee. ........................................................................................ 72  Section 10.03 Individual Rights of the Trustee. ...................................................................... 73  Section 10.04 Trustee’s Disclaimer. ........................................................................................ 74  Section 10.05 Notice of Defaults. ............................................................................................ 74  Section 10.06 Compensation and Indemnity. .......................................................................... 74  Section 10.07 Replacement of the Trustee. ............................................................................. 75  Section 10.08 Successor Trustee by Merger, Etc. ................................................................... 76  

 

ACTIVE/106960961.1      iii    Section 10.09 Eligibility; Disqualification. ............................................................................. 76  ARTICLE 11 Miscellaneous......................................................................................................... 76  Section 11.01 Notices. ............................................................................................................. 76  Section 11.02 Delivery of Officer’s Certificate and Opinion of Counsel as to Conditions  Precedent. .......................................................................................................... 78  Section 11.03 Statements Required in Officer’s Certificate and Opinion of Counsel. ........... 78  Section 11.04 Rules by the Trustee, the Registrar and the Paying Agent. .............................. 79  Section 11.05 No Personal Liability of Directors, Officers, Employees and Stockholders. ... 79  Section 11.06 Governing Law; Waiver of Jury Trial. ............................................................. 79  Section 11.07 Submission to Jurisdiction. ............................................................................... 79  Section 11.08 No Adverse Interpretation of Other Agreements. ............................................. 80  Section 11.09 Successors. ........................................................................................................ 80  Section 11.10 Force Majeure. .................................................................................................. 80  Section 11.11 U.S.A. PATRIOT Act. ...................................................................................... 80  Section 11.12 Calculations. ..................................................................................................... 80  Section 11.13 Severability. ...................................................................................................... 81  Section 11.14 Counterparts. ..................................................................................................... 81  Section 11.15 Table of Contents, Headings, Etc. .................................................................... 81  Section 11.16 Withholding Taxes. ........................................................................................... 81  Section 11.17 Foreign Account Tax Compliance Act (FATCA). ........................................... 81  Section 11.18 Electronic Execution of Documents. ................................................................ 82  Exhibits  Exhibit A: Form of Note A-1  Exhibit B-1: Form of Restricted Note Legend B1-1  Exhibit B-2: Form of Global Note Legend B2-1  Exhibit B-3: Form of Non-Affiliate Legend B3-1    

 

ACTIVE/106718067.2      ACTIVE/106960961.1        INDENTURE, dated as of February 5, 2021, between Mitek, Systems, Inc., a Delaware  corporation, as issuer (the “Company”), and UMB Bank, National Association, as trustee (the  “Trustee”).  Each party to this Indenture (as defined below) agrees as follows for the benefit of the other  party and for the equal and ratable benefit of the Holders (as defined below) of the Notes (as  defined below).  ARTICLE 1  Definitions; Rules of Construction  Section 1.01 Definitions.  “Acquiring Person” has the meaning ascribed to it in the Rights Agreement.   “Additional Interest” means any interest that accrues on any Note pursuant to Section  3.04.  “Affiliate” has the meaning set forth in Rule 144 as in effect on the Issue Date.  “Authorized Denomination” means, with respect to a Note, a principal amount thereof  equal to $1,000 or any integral multiple of $1,000 in excess thereof.  “Bankruptcy Law” means Title 11, United States Code, or any similar U.S. federal or  state or non-U.S. law for the relief of debtors.  “Bid Solicitation Agent” means the Person who is required to obtain bids for the Trading  Price in accordance with Section 5.01(C)(i)(2) and the definition of “Trading Price.” The initial  Bid Solicitation Agent on the Issue Date will be the Company; provided, however, that the  Company may appoint any other Person (including itself or any of its Subsidiaries) to be the Bid  Solicitation Agent at any time after the Issue Date without prior notice to the Holders.  “Board of Directors” means the board of directors of the Company or a committee of such  board duly authorized to act on behalf of such board.  “Business Day” means any day other than a Saturday, a Sunday or any day on which the  Federal Reserve Bank of New York is authorized or required by law, regulation or executive order  to close or be closed.  “Capital Stock” of any Person means any and all shares of, interests in, rights to purchase,  warrants or options for, participations in, or other equivalents of, in each case however designated,  the equity of such Person, but excluding any debt securities convertible into such equity.  “Close of Business” means 5:00 p.m., New York City time.  “Common Stock” means the common stock, $0.001 par value per share, of the Company,  subject to Section 5.09.  

 

ACTIVE/106960961.1      2    “Company” means the Person named as such in the first paragraph of this Indenture and,  subject to Article 6, its successors and assigns.  “Company Order” means a written request or order signed on behalf of the Company by  one (1) of its Officers and delivered to the Trustee.  “Conversion Date” means, with respect to a Note, the first Business Day on which the  requirements set forth in Section 5.02(A) to convert such Note are satisfied.  “Conversion Price” means, as of any time, an amount equal to (A) one thousand dollars  ($1,000) divided by (B) the Conversion Rate in effect at such time.  “Conversion Rate” initially means 47.9731 shares of Common Stock per $1,000 principal  amount of Notes; provided, however, that the Conversion Rate is subject to adjustment pursuant  to Article 5; provided, further, that whenever this Indenture refers to the Conversion Rate as of a  particular date without setting forth a particular time on such date, such reference will be deemed  to be to the Conversion Rate immediately after the Close of Business on such date.  “Conversion Share” means any share of Common Stock issued or issuable upon  conversion of any Note.  “Daily Cash Amount” means, with respect to any VWAP Trading Day, the lesser of  (A) the applicable Daily Maximum Cash Amount; and (B) the Daily Conversion Value for such  VWAP Trading Day.  “Daily Conversion Value” means, with respect to any VWAP Trading Day, one-fortieth  (1/40th) of the product of (A) the Conversion Rate on such VWAP Trading Day; and (B) the Daily  VWAP per share of Common Stock on such VWAP Trading Day.  “Daily Maximum Cash Amount” means, with respect to the conversion of any Note, the  quotient obtained by dividing (A) the Specified Dollar Amount applicable to such conversion by  (B) forty (40).  “Daily Share Amount” means, with respect to any VWAP Trading Day, the quotient  obtained by dividing (A) the excess, if any, of the Daily Conversion Value for such VWAP Trading  Day over the applicable Daily Maximum Cash Amount by (B) the Daily VWAP for such VWAP  Trading Day. For the avoidance of doubt, the Daily Share Amount will be zero for such VWAP  Trading Day if such Daily Conversion Value does not exceed such Daily Maximum Cash Amount.  “Daily VWAP” means, for any VWAP Trading Day, the per share volume-weighted  average price of the Common Stock as displayed under the heading “Bloomberg VWAP” on  Bloomberg page “MITK <EQUITY> AQR” (or, if such page is not available, its equivalent  successor page) in respect of the period from the scheduled open of trading until the scheduled  close of trading of the primary trading session on such VWAP Trading Day (or, if such volume- weighted average price is unavailable, the market value of one share of Common Stock on such  VWAP Trading Day, determined, using a volume-weighted average price method, by a nationally  recognized independent investment banking firm selected by the Company, which may include  

 

ACTIVE/106960961.1      3    any of the Initial Purchasers). The Daily VWAP will be determined without regard to after-hours  trading or any other trading outside of the regular trading session.  “De-Legending Deadline Date” means, with respect to any Note, the fifteenth (15th) day  after the Free Trade Date of such Note; provided, however, that if such fifteenth (15th) day is after  a Regular Record Date and on or before the next Interest Payment Date, then the De-Legending  Deadline Date for such Note will instead be the Business Day immediately after such Interest  Payment Date.  “Default” means any event that is (or, after notice, passage of time or both, would be) an  Event of Default.  “Default Settlement Method” means Cash Settlement; provided that after the Company  obtains Stockholder Approval, “Default Settlement Method” means Combination Settlement  with a Specified Dollar Amount of $1,000 per $1,000 principal amount of Notes; provided, further  however, that, (w) after we obtain Stockholder Approval and subject to Section 5.03(A)(iii), the  Company may, from time to time, change the Default Settlement Method by sending notice of the  new Default Settlement Method to the Holders, the Trustee and the Conversion Agent; (x) in no  event may the Company change the Default Settlement Method to Combination Settlement with a  Specified Dollar Amount that is less than $1,000 per $1,000 principal amount of Notes; (y) no  change to the Default Settlement Method will affect any Settlement Method theretofore elected  (or deemed to be elected) with respect to any Note pursuant to the provisions of Section 5.03(A)  and (z) the Default Settlement Method will be subject to Section 5.04(A)(ii).    “Depositary” means The Depository Trust Company or its successor.  “Depositary Participant” means any member of, or participant in, the Depositary.  “Depositary Procedures” means, with respect to any conversion, transfer, exchange or  transaction involving a Global Note or any beneficial interest therein, the rules and procedures of  the Depositary applicable to such conversion, transfer, exchange or transaction.  “Ex-Dividend Date” means, with respect to an issuance, dividend or distribution on the  Common Stock, the first date on which shares of Common Stock trade on the applicable exchange  or in the applicable market, regular way, without the right to receive such issuance, dividend or  distribution (including pursuant to due bills or similar arrangements required by the relevant stock  exchange). For the avoidance of doubt, any alternative trading convention on the applicable  exchange or market in respect of the Common Stock under a separate ticker symbol or CUSIP  number will not be considered “regular way” for this purpose.  “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.  “Exempted Fundamental Change” means any Fundamental Change with respect to  which, in accordance with Section 4.02(I), the Company does not offer to repurchase any Notes.  “Free Trade Date” means, with respect to any Note, the date that is one (1) year after the  Last Original Issue Date of such Note.  

 

ACTIVE/106960961.1      4    “Freely Tradable” means, with respect to any Note, that such Note would be eligible to  be offered, sold or otherwise transferred pursuant to Rule 144 if held by a Person that is not an  Affiliate of the Company, and that has not been an Affiliate of the Company during the  immediately preceding three (3) months, without any requirements as to volume, manner of sale,  availability of current public information or notice under the Securities Act (except that, during  the six (6) month period beginning on, and including, the date that is six (6) months after the Last  Original Issue Date of such Note, any such requirement as to the availability of current public  information will be disregarded if the same is satisfied at that time); provided, however, that from  and after the Free Trade Date of such Note, such Note will not be “Freely Tradable” unless such  Note (x) is not identified by a “restricted” CUSIP or ISIN number at any time; and (y) is not  represented by any certificate that bears a Restricted Note Legend or any similar restrictive note  legend described in Section 2.09. For the avoidance of doubt, whether a Note is deemed to be  identified by a “restricted” CUSIP or ISIN number or to bear the Restricted Note Legend is subject  to Section 2.12.  “Fundamental Change” means any of the following events:  (A) a “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange  Act), other than the Company or its Wholly Owned Subsidiaries, or their respective employee  benefit plans, files any report with the SEC indicating that such person or group has become the  direct or indirect “beneficial owner” (as defined below) of shares of the Company’s Common  Stock representing more than fifty percent (50%) of the voting power of all of the Company’s  then-outstanding Common Stock;  (B) the consummation of (i) any sale, lease or other transfer, in one transaction or a  series of transactions, of all or substantially all of the assets of the Company and its Subsidiaries,  taken as a whole, to any Person, other than solely to the Company or one or more of the Company’s  Wholly Owned Subsidiaries; or (ii) any transaction or series of related transactions in connection  with which (whether by means of merger, consolidation, share exchange, combination,  reclassification, recapitalization, acquisition, liquidation or otherwise) all of the Common Stock is  exchanged for, converted into, acquired for, or constitutes solely the right to receive, other  securities, cash or other property; provided, however, that any merger, consolidation, share  exchange or combination of the Company pursuant to which the Persons that directly or indirectly  “beneficially owned” (as defined below) all classes of the Company’s common equity immediately  before such transaction directly or indirectly “beneficially own,” immediately after such  transaction, more than fifty percent (50%) of all classes of common equity of the surviving,  continuing or acquiring company or other transferee, as applicable, or the parent thereof, in  substantially the same proportions vis-à-vis each other as immediately before such transaction will  be deemed not to be a Fundamental Change pursuant to this clause (B);  (C) the Company’s stockholders approve any plan or proposal for the liquidation or  dissolution of the Company; or  (D) the Common Stock ceases to be listed or traded on any of The New York Stock  Exchange, The NASDAQ Global Market, The NASDAQ Global Select Market or The NASDAQ  Capital Market (or any of their respective successors);  

 

ACTIVE/106960961.1      5    provided, however, that a transaction or event described in clause (A) or (B) above will not  constitute a Fundamental Change if at least ninety percent (90%) of the consideration received or  to be received by the holders of Common Stock (excluding cash payments for fractional shares or  pursuant to dissenters rights), in connection with such transaction or event, consists of shares of  common stock or other corporate common equity interests (other than depositary receipts  representing shares of common stock or other corporate common equity interests) listed or traded   on any of The New York Stock Exchange, The NASDAQ Global Market, The NASDAQ Global  Select Market or The NASDAQ Capital Market (or any of their respective successors), or that will  be so listed or traded when issued or exchanged in connection with such transaction or event, and  such transaction or event constitutes a Common Stock Change Event whose Reference Property  consists of such consideration.  For the purposes of this definition, (x) any transaction or event described in both clause (A)  and in clause (B)(ii) above (without regard to the proviso in clause (B)) will be deemed to occur  solely pursuant to clause (B) above (subject to such proviso); and (y) whether a Person is a  “beneficial owner,” whether shares are “beneficially owned,” and percentage beneficial  ownership, will be determined in accordance with Rule 13d-3 under the Exchange Act.  “Fundamental Change Repurchase Date” means the date fixed for the repurchase of any  Notes by the Company pursuant to a Repurchase Upon Fundamental Change.  “Fundamental Change Repurchase Notice” means a notice (including a notice  substantially in the form of the “Fundamental Change Repurchase Notice” set forth in Exhibit A)  containing the information, or otherwise complying with the requirements, set forth in Section  4.02(F)(i) and Section 4.02(F)(ii).  “Fundamental Change Repurchase Price” means the cash price payable by the Company  to repurchase any Note upon its Repurchase Upon Fundamental Change, calculated pursuant to  Section 4.02(D).  “Global Note” means a Note that is represented by a certificate substantially in the form  set forth in Exhibit A, registered in the name of the Depositary or its nominee, duly executed by  the Company and authenticated by the Trustee, and deposited with the Trustee, as custodian for  the Depositary.  “Global Note Legend” means a legend substantially in the form set forth in Exhibit B-2.  “Holder” means a person in whose name a Note is registered on the Registrar’s books.  “Indenture” means this Indenture, as amended or supplemented from time to time.  “Initial Purchasers” means Jefferies LLC, William Blair & Company, L.L.C., The  Benchmark Company, LLC and Northland Securities, Inc.  “Interest Payment Date” means, with respect to a Note, each February 1 and August 1 of  each year, commencing on August 1, 2021 (or such other date specified in the certificate  representing such Note). For the avoidance of doubt the Maturity Date is an Interest Payment Date.  

 

ACTIVE/106960961.1      6    “Issue Date” means February 5, 2021.  “Last Original Issue Date” means (A) with respect to any Notes issued pursuant to the  Purchase Agreement, and any Notes issued in exchange therefor or in substitution thereof, the  Issue Date; and (B) with respect to any Notes issued pursuant to Section 2.03(B), and any Notes  issued in exchange therefor or in substitution thereof, either (i) the later of (x) the date such Notes  are originally issued and (y) the last date any Notes are originally issued as part of the same offering  pursuant to the exercise of an option granted to the initial purchaser(s) of such Notes to purchase  additional Notes; or (ii) such other date as is specified in an Officer’s Certificate delivered to the  Trustee before the original issuance of such Notes.  “Last Reported Sale Price” of the Common Stock for any Trading Day means the closing  sale price per share (or, if no closing sale price is reported, the average of the last bid price and the  last ask price per share or, if more than one in either case, the average of the average last bid prices  and the average last ask prices per share) of Common Stock on such Trading Day as reported in  composite transactions for the principal U.S. national or regional securities exchange on which the  Common Stock is then listed. If the Common Stock is not listed on a U.S. national or regional  securities exchange on such Trading Day, then the Last Reported Sale Price will be the last quoted  bid price per share of Common Stock on such Trading Day in the over-the-counter market as  reported by OTC Markets Group Inc. or a similar organization. If the Common Stock is not so  quoted on such Trading Day, then the Last Reported Sale Price will be the average of the mid- point of the last bid price and the last ask price per share of Common Stock on such Trading Day  from a nationally recognized independent investment banking firm selected by the Company,  which may include any of the Initial Purchasers. Neither the Trustee nor the Conversion Agent  will have any duty to determine the Last Reported Sale Price.  “Make-Whole Fundamental Change” means a Fundamental Change (determined after  giving effect to the proviso immediately after clause (D) of the definition thereof, but without  regard to the proviso to clause (B)(ii) of the definition thereof).  “Make-Whole Fundamental Change Conversion Period” means, with respect to a  Make-Whole Fundamental Change, the period from, and including, the effective date of such  Make-Whole Fundamental Change to, and including, the thirty fifth (35th) Trading Day after such  effective date (or, if such Make-Whole Fundamental Change also constitutes a Fundamental  Change (other than an Exempted Fundamental Change), to, but excluding, the related Fundamental  Change Repurchase Date).  “Market Disruption Event” means, with respect to any date, the occurrence or existence,  during the one-half hour period ending at the scheduled close of trading on such date on the  principal U.S. national or regional securities exchange or other market on which the Common  Stock is listed for trading or trades, of any material suspension or limitation imposed on trading  (by reason of movements in price exceeding limits permitted by the relevant exchange or  otherwise) in the Common Stock or in any options contracts or futures contracts relating to the  Common Stock.  “Maturity Date” means February 1, 2026.  

 

ACTIVE/106960961.1      7    “Non-Affiliate Legend” means a legend substantially in the form set forth in Exhibit B-3.  “Note Agent” means any authentication agent, Registrar, Paying Agent or Conversion  Agent.  “Notes” means the 0.750% Convertible Senior Notes due 2026 issued by the Company  pursuant to this Indenture.  “Observation Period” means, with respect to any Note to be converted, (A) if the  Conversion Date for such Note occurs before August 1, 2025, the forty (40) consecutive VWAP  Trading Days beginning on, and including, the third (3rd) VWAP Trading Day immediately after  such Conversion Date; and (B), if such Conversion Date occurs on or after August 1, 2025, the  forty (40) consecutive VWAP Trading Days beginning on, and including, the forty-first (41st)  Scheduled Trading Day immediately before the Maturity Date.  “Officer” means the Chairman of the Board of Directors, the Chief Executive Officer, the  President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant  Treasurer, the Controller, the Secretary or any Vice-President of the Company.  “Officer’s Certificate” means a certificate that is signed on behalf of the Company by one  (1) of its Officers and that, unless otherwise expressly provided in this Indenture, meets the  requirements of Section 11.03.  “Open of Business” means 9:00 a.m., New York City time.  “Opinion of Counsel” means an opinion, from legal counsel (including an employee of,  or counsel to, the Company or any of its Subsidiaries) reasonably acceptable to the Trustee, that,  unless otherwise expressly provided in this Indenture, meets the requirements of Section 11.03,  subject to customary qualifications and exclusions.  “Person” or “person” means any individual, corporation, partnership, limited liability  company, joint venture, association, joint-stock company, trust, unincorporated organization or  government or other agency or political subdivision thereof. Any division or series of a limited  liability company, limited partnership or trust will constitute a separate “Person” under this  Indenture.  “Physical Note” means a Note (other than a Global Note) that is represented by a certificate  substantially in the form set forth in Exhibit A, registered in the name of the Holder of such Note  and duly executed by the Company and authenticated by the Trustee.  “Place of Payment” means the office or agency of the Paying Agent established pursuant  to Section 2.06(A) where Notes may be presented for payment, which office or agency, for the  avoidance of doubt, must be in the continental United States.  “Purchase Agreement” means that certain Purchase Agreement, dated February 2, 2021,  between the Company and the representatives of the Initial Purchasers.  

 

ACTIVE/106960961.1      8    “Regular Record Date” has the following meaning with respect to an Interest Payment  Date: (A) if such Interest Payment Date occurs on February 1, the immediately preceding January  15; and (B) if such Interest Payment Date occurs on August 1, the immediately preceding July 15.  “Repurchase Upon Fundamental Change” means the repurchase of any Note by the  Company pursuant to Section 4.02.   “Responsible Officer” means with respect to the Trustee, any officer assigned to the  corporate trust office of the Trustee customarily performing functions similar to those performed  by persons having direct responsibility for the administration of this Indenture, and also, with  respect to a particular matter, any other officer, to whom such matter is referred because of such  officer’s knowledge of and familiarity with the particular subject.  “Restricted Note Legend” means a legend substantially in the form set forth in Exhibit B- 1.  “Restricted Stock Legend” means, with respect to any Conversion Share, a legend  substantially to the effect that the offer and sale of such Conversion Share have not been registered  under the Securities Act and that such Conversion Share cannot be sold or otherwise transferred  except pursuant to a transaction that is registered under the Securities Act or that is exempt from,  or not subject to, the registration requirements of the Securities Act.  “Rights Agreement” means the Section 382 Rights Agreement, dated as of October 23,  2018, between the Company and Computershare Trust Company, N.A., as rights agent (the  “Rights Agent”), as amended by Amendment No. 1 to Section 382 Rights Agreement, dated as of  February 28, 2019, between the Company and the Rights Agent, and as further amended by  Amendment No. 2 to Section 382 Rights Agreement, dated February 2, 2021, between the  Company and the Rights Agent (as the same may be amended, supplemented or restated after the  Issue Date; provided that any such amendment, supplement or restatement does not adversely  affect the ability of any holder or beneficial owner (if the Notes are held in global form) of Notes  to convert its Notes or receive shares of Common Stock upon any such conversion, in each case,  compared to the ability of any Holder or beneficial owner (if the Notes are held in global form) of  Notes to convert its Notes or receive shares of Common Stock upon any such conversion  immediately prior to such amendment, supplement or restatement (it being understood that the  Company may extend the final expiration date of the Rights Agreement)).  “Rule 144” means Rule 144 under the Securities Act (or any successor rule thereto), as the  same may be amended from time to time.  “Rule 144A” means Rule 144A under the Securities Act (or any successor rule thereto), as  the same may be amended from time to time.  “Scheduled Trading Day” means any day that is scheduled to be a Trading Day on the  principal U.S. national or regional securities exchange on which the Common Stock is then listed  or, if the Common Stock is not then listed on a U.S. national or regional securities exchange, on  the principal other market on which the Common Stock is then traded. If the Common Stock is not  so listed or traded, then “Scheduled Trading Day” means a Business Day.  

 

ACTIVE/106960961.1      9    “SEC” means the U.S. Securities and Exchange Commission.  “Securities Act” means the U.S. Securities Act of 1933, as amended.  “Security” means any Note or Conversion Share.  “Settlement Method” means Cash Settlement or Combination Settlement.  “Shoe Option” means the Initial Purchasers’ option to purchase up to twenty million, two  hundred fifty thousand dollars ($20,250,000) aggregate principal amount of additional Notes as  provided for in the Purchase Agreement.  “Significant Subsidiary” means, with respect to any Person, any Subsidiary of such  Person that constitutes, or any group of Subsidiaries of that Person that, in the aggregate, would  constitute, a “significant subsidiary” (as defined in Rule 1-02(w) of Regulation S-X under the  Exchange Act) of such Person.  “Special Interest” means any interest that accrues on any Note pursuant to Section 7.03.  “Specified Dollar Amount” means, with respect to the conversion of a Note to which  Combination Settlement applies, the maximum cash amount per $1,000 principal amount of such  Note deliverable upon such conversion (excluding cash in lieu of any fractional share of Common  Stock); provided that in no event will the Specified Dollar Amount applicable to any conversion  of any Note be (and in no event will the Company elect a Specified Dollar Amount applicable to  any conversion of any Note that is) an amount that is less than $1,000 per $1,000 principal amount  of Notes.  “Stock Price” has the following meaning for any Make-Whole Fundamental Change:  (A) if the holders of Common Stock receive only cash in consideration for their shares of Common  Stock in such Make-Whole Fundamental Change and such Make-Whole Fundamental Change is  pursuant to clause (B) of the definition of “Fundamental Change,” then the Stock Price is the  amount of cash paid per share of Common Stock in such Make-Whole Fundamental Change; and  (B) in all other cases, the Stock Price is the average of the Last Reported Sale Prices per share of  Common Stock for the five (5) consecutive Trading Days ending on, and including, the Trading  Day immediately before the effective date of such Make-Whole Fundamental Change.  “Stockholder Approval” means when each of the following occurs: (i) the Company  amends its restated certificate of incorporation to increase the number of authorized shares of its  Common Stock to 73,250,000, which is to an amount sufficient, after taking account of all shares  of Common Stock reserved or necessary to satisfy our obligations (other than pursuant to this  Indenture) to issue shares of Common Stock in accordance with any of the Company’s contractual  or other enforceable obligations, (x) to settle the conversion of all then-outstanding Notes at the  conversion rate then applicable, after giving effect to the maximum number of Additional Shares  that may then be added to the conversion rate pursuant to Section 5.07 and (y) to deliver up to the  maximum number of shares (as may be adjusted for stock splits or combinations) of Common  Stock (the “Warrant Shares”) pursuant to the warrant transactions the Company entered into  concurrently with entry into of the Purchase Agreement, including any warrant transactions  subsequently entered into by the Company in connection with the exercise of the Shoe Option by  

 

ACTIVE/106960961.1      10    the Initial Purchasers) and (ii) the Company has reserved, out of its authorized but unissued and  unreserved shares of Common Stock, (x) the Warrant Shares and (y) a number of shares of its  Common Stock sufficient to permit the conversion of all then-outstanding Notes, assuming (I) the  Company elects, upon each conversion of Notes, a specified dollar amount of $1,000 per $1,000  principal amount of Notes; and (II) the Conversion Rate is increased by the maximum number of  Additional Shares pursuant to Section 5.07.  “Subsidiary” means, with respect to any Person, (A) any corporation, association or other  business entity (other than a partnership or limited liability company) of which more than fifty  percent (50%) of the total voting power of the Capital Stock entitled (without regard to the  occurrence of any contingency, but after giving effect to any voting agreement or stockholders’  agreement that effectively transfers voting power) to vote in the election of directors, managers or  trustees, as applicable, of such corporation, association or other business entity is owned or  controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such  Person; and (B) any partnership or limited liability company where (i) more than fifty percent  (50%) of the capital accounts, distribution rights, equity and voting interests, or of the general and  limited partnership interests, as applicable, of such partnership or limited liability company are  owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries  of such Person, whether in the form of membership, general, special or limited partnership or  limited liability company interests or otherwise; and (ii) such Person or any one or more of the  other Subsidiaries of such Person is a controlling general partner of, or otherwise controls, such  partnership or limited liability company.  “Trading Day” means any day on which (A) trading in the Common Stock generally  occurs on the principal U.S. national or regional securities exchange on which the Common Stock  is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities  exchange, on the principal other market on which the Common Stock is then traded; and (B) there  is no Market Disruption Event. If the Common Stock is not so listed or traded, then “Trading Day”  means a Business Day.  “Trading Price” of the Notes on any Trading Day means the average of the secondary  market bid quotations, expressed as a cash amount per $1,000 principal amount of Notes, obtained  by the Bid Solicitation Agent for five million dollars ($5,000,000) (or such lesser amount as may  then be outstanding) in principal amount of Notes at approximately 3:30 p.m., New York City  time, on such Trading Day from three (3) nationally recognized independent securities dealers  selected by the Company, which may include any of the Initial Purchasers; provided, however,  that, if three (3) such bids cannot reasonably be obtained by the Bid Solicitation Agent but two (2)  such bids are obtained, then the average of the two (2) bids will be used, and if only one (1) such  bid can reasonably be obtained by the Bid Solicitation Agent, then that one (1) bid will be used.  If, on any Trading Day, (A) the Bid Solicitation Agent cannot reasonably obtain at least one (1)  bid for five million dollars ($5,000,000) (or such lesser amount as may then be outstanding) in  principal amount of Notes from a nationally recognized independent securities dealer; (B) the  Company is not acting as the Bid Solicitation Agent and the Company fails to instruct the Bid  Solicitation Agent to obtain bids when required; or (C) the Bid Solicitation Agent fails to solicit  bids when required, then, in each case, the Trading Price per $1,000 principal amount of Notes on  such Trading Day will be deemed to be less than ninety eight percent (98%) of the product of the  

 

ACTIVE/106960961.1      11    Last Reported Sale Price per share of Common Stock on such Trading Day and the Conversion  Rate on such Trading Day.  “Transfer-Restricted Security” means any Security that constitutes a “restricted security”  (as defined in Rule 144); provided, however, that such Security will cease to be a Transfer- Restricted Security upon the earliest to occur of the following events:  (A) such Security is sold or otherwise transferred to a Person (other than the Company,  an Affiliate of the Company or a Person that was an Affiliate of the Company in the three months  immediately preceding) pursuant to a registration statement that was effective under the Securities  Act at the time of such sale or transfer;  (B) such Security is sold or otherwise transferred to a Person (other than the Company,  an Affiliate of the Company or a Person that was an Affiliate of the Company in the three months  immediately preceding) pursuant to an available exemption (including Rule 144) from the  registration and prospectus-delivery requirements of, or in a transaction not subject to, the  Securities Act and, immediately after such sale or transfer, such Security ceases to constitute a  “restricted security” (as defined in Rule 144); and  (C) such Security is eligible for resale, by a Person that is not an Affiliate of the  Company and that has not been an Affiliate of the Company during the immediately preceding  three (3) months, pursuant to Rule 144 without any limitations thereunder as to volume, manner  of sale, availability of current public information or notice.  The Trustee is under no obligation to determine whether any Security is a Transfer- Restricted Security and may conclusively rely on an Officer’s Certificate with respect thereto.  “Trust Indenture Act” means the U.S. Trust Indenture Act of 1939, as amended.  “Trustee” means the Person named as such in the first paragraph of this Indenture until a  successor replaces it in accordance with the provisions of this Indenture and, thereafter, means  such successor.  “VWAP Market Disruption Event” means, with respect to any date, (A) the failure by  the principal U.S. national or regional securities exchange on which the Common Stock is then  listed, or, if the Common Stock is not then listed on a U.S. national or regional securities exchange,  the principal other market on which the Common Stock is then traded, to open for trading during  its regular trading session on such date; or (B) the occurrence or existence, for more than one half  hour period in the aggregate, of any suspension or limitation imposed on trading (by reason of  movements in price exceeding limits permitted by the relevant exchange or otherwise) in the  Common Stock or in any options contracts or futures contracts relating to the Common Stock, and  such suspension or limitation occurs or exists at any time before 1:00 p.m., New York City time,  on such date.  “VWAP Trading Day” means a day on which (A) there is no VWAP Market Disruption  Event; and (B) trading in the Common Stock generally occurs on the principal U.S. national or  regional securities exchange on which the Common Stock is then listed or, if the Common Stock  is not then listed on a U.S. national or regional securities exchange, on the principal other market  

 

ACTIVE/106960961.1      12    on which the Common Stock is then traded. If the Common Stock is not so listed or traded, then  “VWAP Trading Day” means a Business Day.  “Wholly Owned Subsidiary” of a Person means any Subsidiary of such Person,  determined by reference to the definition of “Subsidiary” above but with each reference therein to  “more than fifty percent (50%)” deemed to be replaced with “one hundred percent (100%)” for  purposes of this definition; provided, however, that directors’ qualifying shares will be disregarded  for purposes of determining whether any Person is a Wholly Owned Subsidiary of another Person.  Section 1.02 Other Definitions.                  Term    Defined in Section  “Additional Shares”    Section 5.07(A)  “Applicable Tax Law”    Section 11.17  “Business Combination Event”    Section 6.01(A)  “Cash Settlement”    Section 5.03(A)  “Combination Settlement”    Section 5.03(A))  “Common Stock Change Event”    Section 5.09(A)  “Conversion Agent”    Section 2.06(A)  “Conversion Consideration”    Section 5.03(B)  “Default Interest”    Section 2.05(B)  “Defaulted Amount”    Section 2.05(B)  “Event of Default”    Section 7.01(A)  “Expiration Date”    Section 5.05(A)(v)  “Expiration Time”    Section 5.05(A)(v)  “Fundamental Change Notice”    Section 4.02(E)  “Fundamental Change Repurchase  Right”    Section 4.02(A)  “Initial Notes”    Section 2.03(A)  “Material Debt Acceleration”    Section 7.01(A)(vii)(2)  “Measurement Period”    Section 5.01(C)(i)(2)  “Paying Agent”    Section 2.06(A)  “Reference Property”    Section 5.09(A)  “Reference Property Unit”    Section 5.09(A)  “Register”    Section 2.06(B)  “Registrar”    Section 2.06(A)  “Reporting Event of Default”    Section 7.03(A)  “Section 382 Conversion Blocker”    5.10  “Specified Courts”    Section 11.07  “Spin-Off”    Section 5.05(A)(iii)(2)  

 

ACTIVE/106960961.1      13    “Spin-Off Valuation Period”    Section 5.05(A)(iii)(2)  “Stated Interest”    Section 2.05(A)  “Successor Corporation”    Section 6.01(A)  “Successor Person”    Section 5.09(A)  “Tender/Exchange Offer Valuation  Period”    Section 5.05(A)(v)  “Trading Price Condition”    Section 5.01(C)(i)(2)  “Trigger Event”    Section 5.05(A)(iii)(1)    Section 1.03 Rules of Construction.  For purposes of this Indenture:  (A) “or” is not exclusive;  (B) “including” means “including without limitation”;  (C) “will” expresses a command;  (D) the “average” of a set of numerical values refers to the arithmetic average of such  numerical values;  (E) a merger involving, or a transfer of assets by, a limited liability company, limited  partnership or trust will be deemed to include any division of or by, or an allocation of assets to a  series of, such limited liability company, limited partnership or trust, or any unwinding of any such  division or allocation;  (F) words in the singular include the plural and in the plural include the singular, unless  the context requires otherwise;  (G) “herein,” “hereof” and other words of similar import refer to this Indenture as a  whole and not to any particular Article, Section or other subdivision of this Indenture, unless the  context requires otherwise;  (H) references to currency mean the lawful currency of the United States of America,  unless the context requires otherwise;  (I) the exhibits, schedules and other attachments to this Indenture are deemed to form  part of this Indenture; and  (J) the term “interest,” when used with respect to a Note, includes any Additional  Interest and Special Interest, unless the context requires otherwise.  ARTICLE 2  The Notes  Section 2.01 Form, Dating and Denominations.  

 

ACTIVE/106960961.1      14    The Notes and the Trustee’s certificate of authentication will be substantially in the form  set forth in Exhibit A. The Notes will bear the legends required by Section 2.09 and may bear  notations, legends or endorsements required by law, stock exchange rule or usage or the  Depositary. Each Note will be dated as of the date of its authentication.  Except to the extent otherwise provided in a Company Order delivered to the Trustee in  connection with the issuance and authentication thereof, the Notes will be issued initially in the  form of one or more Global Notes. Global Notes may be exchanged for Physical Notes, and  Physical Notes may be exchanged for Global Notes, only as provided in Section 2.10.  The Notes will be issuable only in registered form without interest coupons and only in  Authorized Denominations.  Each certificate representing a Note will bear a unique registration number that is not  affixed to any other certificate representing another outstanding Note.  The terms contained in the Notes constitute part of this Indenture, and, to the extent  applicable, the Company and the Trustee, by their execution and delivery of this Indenture, agree  to such terms and to be bound thereby; provided, however, that, to the extent that any provision of  any Note conflicts with the provisions of this Indenture, the provisions of this Indenture will  control for purposes of this Indenture and such Note.  Section 2.02 Execution, Authentication and Delivery.  (A) Due Execution by the Company. At least one (1) duly authorized Officer will sign  the Notes on behalf of the Company by manual or facsimile signature or as otherwise provided for  by Section 11.18. A Note’s validity will not be affected by the failure of any Officer whose  signature is on any Note to hold, at the time such Note is authenticated, the same or any other  office at the Company.  (B) Authentication by the Trustee and Delivery.  (i) No Note will be valid until it is authenticated by the Trustee. A Note will  be deemed to be duly authenticated only when an authorized signatory of the Trustee (or a  duly appointed authenticating agent) manually signs the certificate of authentication of  such Note.  (ii) The Trustee will cause an authorized signatory of the Trustee (or a duly  appointed authenticating agent) to manually sign the certificate of authentication of a Note  only if (1) the Company delivers such Note to the Trustee; (2) such Note is executed by  the Company in accordance with Section 2.02(A); and (3) the Company delivers a  Company Order to the Trustee that (a) requests the Trustee to authenticate such Note; and  (b) sets forth the name of the Holder of such Note and the date as of which such Note is to  be authenticated. If such Company Order also requests the Trustee to deliver such Note to  any Holder or to the Depositary, then the Trustee will promptly deliver such Note in  accordance with such Company Order.  

 

ACTIVE/106960961.1      15    (iii) The Trustee may appoint an authenticating agent acceptable to the  Company to authenticate Notes. A duly appointed authenticating agent may authenticate  Notes whenever the Trustee may do so under this Indenture, and a Note authenticated as  provided in this Indenture by such an agent will be deemed, for purposes of this Indenture,  to be authenticated by the Trustee. Each duly appointed authenticating agent will have the  same rights to deal with the Company as the Trustee would have if it were performing the  duties that the authentication agent was validly appointed to undertake.  Section 2.03 Initial Notes and Additional Notes.  (A) Initial Notes. On the Issue Date, there will be originally issued one hundred fifty  five million, two hundred fifty thousand dollars ($155,250,000) aggregate principal amount of  Notes, subject to the provisions of this Indenture (including Section 2.02). Notes issued pursuant  to this Section 2.03(A), and any Notes issued in exchange therefor or in substitution thereof, are  referred to in this Indenture as the “Initial Notes.”  (B) Additional Notes. The Company may, subject to the provisions of this Indenture  (including Section 2.02), originally issue additional Notes with the same terms as the Initial Notes  (except, to the extent applicable, with respect to the date as of which interest begins to accrue on  such additional Notes and the first Interest Payment Date and the Last Original Issue Date of such  additional Notes), which additional Notes will, subject to the foregoing, be considered to be part  of the same series of, and rank equally and ratably with all other, Notes issued under this Indenture;  provided, however, that if any such additional Notes are not fungible with other Notes issued under  this Indenture for U.S. federal income tax or U.S. federal securities laws purposes, then such  additional Notes will be identified by a separate CUSIP number or by no CUSIP number.  Section 2.04 Method of Payment.  (A) Global Notes. The Company will pay, or cause the Paying Agent to pay, the  principal (whether due upon maturity on the Maturity Date or repurchase on a Fundamental  Change Repurchase Date or otherwise) of, interest on, and any cash Conversion Consideration for,  any Global Note to the Depositary by wire transfer of immediately available funds no later than  the time the same is due as provided in this Indenture.  (B) Physical Notes. The Company will pay, or cause the Paying Agent to pay, the  principal (whether due upon maturity on the Maturity Date or repurchase on a Fundamental  Change Repurchase Date or otherwise) of, interest on, and any cash Conversion Consideration for,  any Physical Note no later than the time the same is due as provided in this Indenture as follows:  (i) if the principal amount of such Physical Note is at least five million dollars ($5,000,000) (or  such lower amount as the Company may choose in its sole and absolute discretion) and the Holder  of such Physical Note entitled to such payment has delivered to the Paying Agent or the Trustee,  no later than the time set forth in the immediately following sentence, a written request that the  Company make such payment by wire transfer to an account of such Holder within the United  States, by wire transfer of immediately available funds to such account; and (ii) in all other cases,  by check mailed to the address of the Holder of such Physical Note entitled to such payment as set  forth in the Register. To be timely, such written request must be so delivered no later than the  Close of Business on the following date: (x) with respect to the payment of any interest due on an  

 

ACTIVE/106960961.1      16    Interest Payment Date, the immediately preceding Regular Record Date; (y) with respect to any  cash Conversion Consideration, the relevant Conversion Date; and (z) with respect to any other  payment, the date that is fifteen (15) calendar days immediately before the date such payment is  due.  Section 2.05 Accrual of Interest; Defaulted Amounts; When Payment Date is Not a  Business Day.  (A) Accrual of Interest. Each Note will accrue interest at a rate per annum equal to  0.750% (the “Stated Interest”), plus any Additional Interest and Special Interest that may accrue  pursuant to Section 3.04 and 7.03, respectively. Stated Interest on each Note will (i) accrue from,  and including, the most recent date to which Stated Interest has been paid or duly provided for (or,  if no Stated Interest has theretofore been paid or duly provided for, the date set forth in the  certificate representing such Note as the date from, and including, which Stated Interest will begin  to accrue in such circumstance) to, but excluding, the date of payment of such Stated Interest; and  (ii) be, subject to Sections 4.02(D) and 5.02(D) (but without duplication of any payment of  interest), payable semi-annually in arrears on each Interest Payment Date, beginning on the first  Interest Payment Date set forth in the certificate representing such Note, to the Holder of such  Note as of the Close of Business on the immediately preceding Regular Record Date. Stated  Interest, and, if applicable, Additional Interest and Special Interest, on the Notes will be computed  on the basis of a 360-day year comprised of twelve 30-day months.  (B) Defaulted Amounts. If the Company fails to pay any amount (a “Defaulted  Amount”) payable on a Note on or before the due date therefor as provided in this Indenture, then,  regardless of whether such failure constitutes an Event of Default, (i) such Defaulted Amount will  forthwith cease to be payable to the Holder of such Note otherwise entitled to such payment; (ii)  to the extent lawful, interest (“Default Interest”) will accrue on such Defaulted Amount at a rate  per annum equal to the rate per annum at which Stated Interest accrues, from, and including, such  due date to, but excluding, the date of payment of such Defaulted Amount and Default Interest;  (iii) such Defaulted Amount and Default Interest will be paid on a payment date selected by the  Company to the Holder of such Note as of the Close of Business on a special record date selected  by the Company, provided that such special record date must be no more than fifteen (15), nor less  than ten (10), calendar days before such payment date; and (iv) at least fifteen (15) calendar days  before such special record date, the Company will send notice to the Trustee and the Holders that  states such special record date, such payment date and the amount of such Defaulted Amount and  Default Interest to be paid on such payment date.  (C) Delay of Payment when Payment Date is Not a Business Day. If the due date for a  payment on a Note as provided in this Indenture is not a Business Day, then, notwithstanding  anything to the contrary in this Indenture or the Notes, such payment may be made on the  immediately following Business Day and no interest will accrue on such payment as a result of the  related delay. Solely for purposes of the immediately preceding sentence, a day on which the  applicable Place of Payment is authorized or required by law or executive order to close or be  closed will be deemed not to be a “Business Day.”  Section 2.06 Registrar, Paying Agent and Conversion Agent.  

 

ACTIVE/106960961.1      17    (A) Generally. The Company will maintain (i) an office or agency in the continental  United States where Notes may be presented for registration of transfer or for exchange (the  “Registrar”); (ii) an office or agency in the continental United States where Notes may be  presented for payment (the “Paying Agent”); and (iii) an office or agency in the continental United  States where Notes may be presented for conversion (the “Conversion Agent”). If the Company  fails to maintain a Registrar, Paying Agent or Conversion Agent, then the Trustee will act as such.  For the avoidance of doubt, the Company or any of its Subsidiaries may act as Registrar, Paying  Agent or Conversion Agent without prior notice to Holders. The Company initially names the  corporate trust office of the Trustee at 100 William Street, Suite 1850, New York, New York  10038, Attention:  Corporate Trust & Escrow Services as the initial office for purposes of this  Section 2.06(A).  (B) Duties of the Registrar. The Registrar will keep a record (the “Register”) of the  names and addresses of the Holders, the Notes held by each Holder and the transfer, exchange,  repurchase and conversion of Notes. Absent manifest error, the entries in the Register will be  conclusive and the Company and the Trustee may treat each Person whose name is recorded as a  Holder in the Register as a Holder for all purposes. The Register will be in written form or in any  form capable of being converted into written form reasonably promptly.  (C) Co-Agents; Company’s Right to Appoint Successor Registrars, Paying Agents and  Conversion Agents. The Company may appoint one or more co-Registrars, co-Paying Agents and  co-Conversion Agents, each of whom will be deemed to be a Registrar, Paying Agent or  Conversion Agent, as applicable, under this Indenture. Subject to Section 2.06(A), the Company  may change any Registrar, Paying Agent or Conversion Agent (including appointing itself or any  of its Subsidiaries to act in such capacity) without notice to any Holder. The Company will notify  the Trustee (and, upon request, any Holder) of the name and address of each Note Agent, if any,  not a party to this Indenture and will enter into an appropriate agency agreement with each such  Note Agent, which agreement will implement the provisions of this Indenture that relate to such  Note Agent.  (D) Initial Appointments. The Company appoints the Trustee as the initial Paying  Agent, the initial Registrar and the initial Conversion Agent.  Section 2.07 Paying Agent and Conversion Agent to Hold Property in Trust.  The Company will require each Paying Agent or Conversion Agent that is not the Trustee  to agree in writing that such Note Agent will (A) hold in trust for the benefit of Holders or the  Trustee all money and other property held by such Note Agent for payment or delivery due on the  Notes; and (B) notify the Trustee of any default by the Company in making any such payment or  delivery. The Company, at any time, may, and the Trustee, while any Default continues, may,  require a Paying Agent or Conversion Agent to pay or deliver, as applicable, all money and other  property held by it to the Trustee, after which payment or delivery, as applicable, such Note Agent  (if not the Company or any of its Subsidiaries) will have no further liability for such money or  property. If the Company or any of its Subsidiaries acts as Paying Agent or Conversion Agent,  then (A) it will segregate and hold in a separate trust fund for the benefit of the Holders or the  Trustee all money and other property held by it as Paying Agent or Conversion Agent; and (B)  references in this Indenture or the Notes to the Paying Agent or Conversion Agent holding cash or  

 

ACTIVE/106960961.1      18    other property, or to the delivery of cash or other property to the Paying Agent or Conversion  Agent, in each case for payment or delivery to any Holders or the Trustee or with respect to the  Notes, will be deemed to refer to cash or other property so segregated and held separately, or to  the segregation and separate holding of such cash or other property, respectively. Upon the  occurrence of any event pursuant to in clause(ix) or (x) of Section 7.01(A) with respect to the  Company (or with respect to any Subsidiary of the Company acting as Paying Agent or Conversion  Agent), the Trustee will serve as the Paying Agent and Conversion Agent, as applicable, for the  Notes.  Section 2.08 Holder Lists.  If the Trustee is not the Registrar, the Company will furnish to the Trustee, no later than  seven (7) Business Days before each Interest Payment Date, and at such other times as the Trustee  may request, a list, in such form and as of such date or time as the Trustee may reasonably require,  of the names and addresses of the Holders.  Section 2.09 Legends.  (A) Global Note Legend. Each Global Note will bear the Global Note Legend (or any  similar legend, not inconsistent with this Indenture, required by the Depositary for such Global  Note).  (B) Non-Affiliate Legend. Each Note will bear the Non-Affiliate Legend.  (C) Restricted Note Legend. Subject to Section 2.12,  (i) each Note that is a Transfer-Restricted Security will bear the Restricted  Note Legend; and  (ii) if a Note is issued in exchange for, in substitution of, or to effect a partial  conversion of, another Note (such other Note being referred to as the “old Note” for  purposes of this (ii)), including pursuant to Section 2.10(B), 2.10(C), 2.11 or 2.13, such  Note will bear the Restricted Note Legend if such old Note bore the Restricted Note Legend  at the time of such exchange or substitution, or on the related Conversion Date with respect  to such conversion, as applicable; provided, however, that such Note need not bear the  Restricted Note Legend if such Note does not constitute a Transfer-Restricted Security  immediately after such exchange or substitution, or as of such Conversion Date, as  applicable.  (D) Other Legends. A Note may bear any other legend or text, not inconsistent with this  Indenture, as may be required by applicable law or by any securities exchange or automated  quotation system on which such Note is traded or quoted.  (E) Acknowledgement and Agreement by the Holders. A Holder’s acceptance of any  Note bearing any legend required by this Section 2.09 will constitute such Holder’s  acknowledgement of, and agreement to comply with, the restrictions set forth in such legend.  (F) Restricted Stock Legend.  

 

ACTIVE/106960961.1      19    (i) Each Conversion Share will bear the Restricted Stock Legend if the Note  upon the conversion of which such Conversion Share was issued was (or would have been  had it not been converted) a Transfer-Restricted Security at the time such Conversion Share  was issued; provided, however, that such Conversion Share need not bear the Restricted  Stock Legend if the Company determines, in its reasonable discretion, that such  Conversion Share need not bear the Restricted Stock Legend.  (ii) Notwithstanding anything to the contrary in this Section 2.09(F), a  Conversion Share need not bear a Restricted Stock Legend if such Conversion Share is  issued in an uncertificated form that does not permit affixing legends thereto, provided the  Company takes measures (including the assignment thereto of a “restricted” CUSIP  number) that it reasonably deems appropriate to enforce the transfer restrictions referred to  in the Restricted Stock Legend.  Section 2.10 Transfers and Exchanges; Certain Transfer Restrictions.  (A) Provisions Applicable to All Transfers and Exchanges.  (i) Subject to this Section 2.10, Physical Notes and beneficial interests in  Global Notes may be transferred or exchanged from time to time and the Registrar will  record each such transfer or exchange in the Register.  (ii) Each Note issued upon transfer or exchange of any other Note (such other  Note being referred to as the “old Note” for purposes of this Section 2.10(A)(ii)) or portion  thereof in accordance with this Indenture will be the valid obligation of the Company,  evidencing the same indebtedness, and entitled to the same benefits under this Indenture,  as such old Note or portion thereof, as applicable.  (iii) The Company, the Trustee and the Note Agents will not impose any service  charge on any Holder for any exchange or registration of transfer of Notes as a result of  the name of the Holder of new Notes issued upon such exchange or registration of transfer  being different from the name of the Holder of the old Notes surrendered for exchange or  registration of transfer, or in connection with any conversion of Notes, but the Company,  the Trustee, the Registrar and the Conversion Agent may require payment of a sum  sufficient to cover any transfer tax or similar governmental charge that may be imposed in  connection with any transfer, exchange or conversion of Notes, other than exchanges  pursuant to Section 2.11, 2.17 or 8.05 not involving any transfer.  (iv) Notwithstanding anything to the contrary in this Indenture or the Notes, a  Note may not be transferred or exchanged in part unless the portion to be so transferred or  exchanged is in an Authorized Denomination.  (v) Neither the Trustee nor the Registrar shall have any obligation or duty to  monitor, determine or inquire as to compliance with any restrictions on transfer or  exchange imposed under this Indenture or under applicable law with respect to any transfer  or exchange of any interest in any Note (including any transfers between or among  participants or other beneficial owners of interests in any Global Note), other than to  require the delivery of such certificates and other documentation or evidence as are  

 

ACTIVE/106960961.1      20    expressly required by, and to do so if and when expressly required by the terms of this  Indenture, and to examine the same to determine substantial compliance as to form with  the express requirements of this Indenture.  (vi) Each Note issued upon transfer of, or in exchange for, another Note will  bear each legend, if any, required by Section 2.09.  (vii) Upon satisfaction of the requirements of this Indenture to effect a transfer  or exchange of any Note, the Company will cause such transfer or exchange to be effected  as soon as reasonably practicable but in no event later than the second (2nd) Business Day  after the date of such satisfaction.  (viii) For the avoidance of doubt, and subject to the terms of this Indenture, as  used in this Section 2.10, an “exchange” of a Global Note or a Physical Note includes (x)  an exchange effected for the sole purpose of removing any Restricted Note Legend affixed  to such Global Note or Physical Note; and (y) if such Global Note or a Physical Note is  identified by a “restricted” CUSIP number, an exchange effected for the sole purpose of  causing such Global Note or a Physical Note to be identified by an “unrestricted” CUSIP  number.  (ix) Neither the Company, the Trustee nor any Note Agent will have any  responsibility for any action taken or not taken by the Depositary.  (B) Transfers and Exchanges of Global Notes.  (i) Subject to the immediately following sentence, no Global Note may be  transferred or exchanged in whole except (x) by the Depositary to a nominee of the  Depositary; (y) by a nominee of the Depositary to the Depositary or to another nominee of  the Depositary; or (z) by the Depositary or any such nominee to a successor Depositary or  a nominee of such successor Depositary. No Global Note (or any portion thereof) may be  transferred to, or exchanged for, a Physical Note; provided, however, that a Global Note  will be exchanged, pursuant to customary procedures, for one or more Physical Notes if:  (1) (x) the Depositary notifies the Company or the Trustee that the  Depositary is unwilling or unable to continue as depositary for such Global Note or  (y) the Depositary ceases to be a “clearing agency” registered under Section 17A  of the Exchange Act and, in each case, the Company fails to appoint a successor  Depositary within ninety (90) days of such notice or cessation;  (2) an Event of Default has occurred and is continuing and the  Company, the Trustee or the Registrar has received a written request from the  Depositary, or from a holder of a beneficial interest in such Global Note, to  exchange such Global Note or beneficial interest, as applicable, for one or more  Physical Notes; or  (3) the Company, in its sole discretion, permits the exchange of any  beneficial interest in such Global Note for one or more Physical Notes at the request  of the owner of such beneficial interest.  

 

ACTIVE/106960961.1      21    (ii) Upon satisfaction of the requirements of this Indenture to effect a transfer  or exchange of any Global Note (or any portion thereof):  (1) the Trustee will reflect any resulting decrease of the principal  amount of such Global Note by notation on the “Schedule of Exchanges of Interests  in the Global Note” forming part of such Global Note (and, if such notation results  in such Global Note having a principal amount of zero, the Company may (but is  not required to) instruct the Trustee to cancel such Global Note pursuant to Section  2.15);  (2) if required to effect such transfer or exchange, then the Trustee will  reflect any resulting increase of the principal amount of any other Global Note by  notation on the “Schedule of Exchanges of Interests in the Global Note” forming  part of such other Global Note;  (3) if required to effect such transfer or exchange, then the Company  will issue, execute and deliver, and the Trustee will authenticate, in each case in  accordance with Section 2.02, a new Global Note bearing each legend, if any,  required by Section 2.09; and  (4) if such Global Note (or such portion thereof), or any beneficial  interest therein, is to be exchanged for one or more Physical Notes, then the  Company will issue, execute and deliver, and the Trustee will authenticate, in each  case in accordance with Section 2.02, one or more Physical Notes that are in  Authorized Denominations (not to exceed, in the aggregate, the principal amount  of such Global Note to be so exchanged), are registered in such name(s) as the  Depositary specifies (or as otherwise determined pursuant to customary  procedures) and bear each legend, if any, required by Section 2.09.  (iii) Each transfer or exchange of a beneficial interest in any Global Note will  be made in accordance with the Depositary Procedures.  (C) Transfers and Exchanges of Physical Notes.  (i) Subject to this Section 2.10, a Holder of a Physical Note may (x) transfer  such Physical Note (or any portion thereof in an Authorized Denomination) to one or more  other Person(s); (y) exchange such Physical Note (or any portion thereof in an Authorized  Denomination) for one or more other Physical Notes in Authorized Denominations having  an aggregate principal amount equal to the aggregate principal amount of the Physical Note  (or portion thereof) to be so exchanged; and (z) if then permitted by the Depositary  Procedures, transfer such Physical Note (or any portion thereof in an Authorized  Denomination) in exchange for a beneficial interest in one or more Global Notes; provided,  however, that, to effect any such transfer or exchange, such Holder must:  (1) surrender such Physical Note to be transferred or exchanged to the  office of the Registrar, together with any endorsements or transfer instruments  reasonably required by the Company, the Trustee or the Registrar; and  

 

ACTIVE/106960961.1      22    (2) deliver such certificates, documentation or evidence as may be  required pursuant to Section 2.09(D).  (ii) Upon the satisfaction of the requirements of this Indenture to effect a  transfer or exchange of any Physical Note (such Physical Note being referred to as the “old  Physical Note” for purposes of this Section 2.10(C)(ii)) of a Holder (or any portion of such  old Physical Note in an Authorized Denomination):  (1) such old Physical Note will be promptly cancelled pursuant to  Section 2.15;  (2) if such old Physical Note is to be transferred or exchanged only in  part, then the Company will issue, execute and deliver, and the Trustee will  authenticate, in each case in accordance with Section 2.02, one or more Physical  Notes that (x) are in Authorized Denominations and have an aggregate principal  amount equal to the principal amount of such old Physical Note not to be transferred  or exchanged; (y) are registered in the name of such Holder; and (z) bear each  legend, if any, required by Section 2.09;  (3) in the case of a transfer:  (a) to the Depositary or a nominee thereof that will hold its  interest in such old Physical Note (or such portion thereof) to be so  transferred in the form of one or more Global Notes, the Trustee will reflect  an increase of the principal amount of one or more existing Global Notes  by notation on the “Schedule of Exchanges of Interests in the Global Note”  forming part of such Global Note(s), which increase(s) are in Authorized  Denominations and aggregate to the principal amount to be so transferred,  and which Global Note(s) bear each legend, if any, required by Section  2.09; provided, however, that if such transfer cannot be so effected by  notation on one or more existing Global Notes (whether because no Global  Notes bearing each legend, if any, required by Section 2.09 then exist,  because any such increase will result in any Global Note having an  aggregate principal amount exceeding the maximum aggregate principal  amount permitted by the Depositary or otherwise), then the Company will  issue, execute and deliver, and the Trustee will authenticate, in each case in  accordance with Section 2.02, one or more Global Notes that (x) are in  Authorized Denominations and have an aggregate principal amount equal  to the principal amount to be so transferred; and (y) bear each legend, if any,  required by Section 2.09; and  (b) to a transferee that will hold its interest in such old Physical  Note (or such portion thereof) to be so transferred in the form of one or more  Physical Notes, the Company will issue, execute and deliver, and the  Trustee will authenticate, in each case in accordance with Section 2.02, one  or more Physical Notes that (x) are in Authorized Denominations and have  an aggregate principal amount equal to the principal amount to be so  

 

ACTIVE/106960961.1      23    transferred; (y) are registered in the name of such transferee; and (z) bear  each legend, if any, required by Section 2.09; and  (4) in the case of an exchange, the Company will issue, execute and  deliver, and the Trustee will authenticate, in each case in accordance with Section  2.02, one or more Physical Notes that (x) are in Authorized Denominations and  have an aggregate principal amount equal to the principal amount to be so  exchanged; (y) are registered in the name of the Person to whom such old Physical  Note was registered; and (z) bear each legend, if any, required by Section 2.09.  (D) Requirement to Deliver Documentation and Other Evidence. If a Holder of any  Note that is identified by a “restricted” CUSIP number or that bears a Restricted Note Legend or  is a Transfer-Restricted Security requests to:  (i) cause such Note to be identified by an “unrestricted” CUSIP number;  (ii) remove such Restricted Note Legend; or  (iii) register the transfer of such Note to the name of another Person, then the  Company, the Trustee and the Registrar may refuse to effect such identification, removal  or transfer, as applicable, unless there is delivered to the Company, the Trustee and the  Registrar such certificates or other documentation or evidence as the Company may  reasonably require to determine that such identification, removal or transfer, as applicable,  complies with the Securities Act and other applicable securities laws; provided, however,  that no such certificates, documentation or evidence need be so delivered (w) on and after  the Free Trade Date with respect to such Note unless the Company determines, in its  reasonable discretion, that such Note is not eligible to be offered, sold or otherwise  transferred pursuant to Rule 144 or otherwise without any requirements as to volume,  manner of sale, availability of current public information or notice under the Securities  Act; (x) in connection with any transfer of such Note pursuant to Rule 144A; (y) in  connection with any transfer of such Note to the Company or one of its Subsidiaries; or (z)  in connection with any transfer of such Note pursuant to an effective registration statement  under the Securities Act. All Notes presented or surrendered for registration of transfer or  exchange will be duly endorsed, or accompanied by a written instrument or instruments of  transfer in accordance with the Trustee’s customary procedures, and such Notes will be  duly endorsed by the Holder thereof or his attorney duly authorized in writing, in each case  subject to the Depositary Procedures in the case of any Global Note. Except as otherwise  provided in this Indenture, and in addition to the requirements set forth in the Restricted  Note Legend, in connection with any transfer of a Transfer-Restricted Security, any request  for transfer thereof will be accompanied by a certification to the Trustee relating to the  manner of such transfer substantially in the form of the “Transferor Acknowledgement”  set forth in Exhibit A.  (E) Transfers of Notes Subject to Repurchase or Conversion. Notwithstanding anything  to the contrary in this Indenture or the Notes, the Company, the Trustee and the Registrar will not  be required to register the transfer of or exchange any Note that (i) has been surrendered for  conversion, except to the extent that any portion of such Note is not subject to conversion; or (ii)  

 

ACTIVE/106960961.1      24    is subject to a Fundamental Change Repurchase Notice validly delivered, and not withdrawn,  pursuant to Section 4.02(F), except to the extent that any portion of such Note is not subject to  such notice or the Company fails to pay the applicable Fundamental Change Repurchase Price  when due.  Section 2.11 Exchange and Cancellation of Notes to Be Converted or Repurchased.  (A) Partial Conversions and Repurchases of Physical Notes. If only a portion of a  Physical Note of a Holder is to be converted pursuant to Article 5 or repurchased pursuant to a  Repurchase Upon Fundamental Change, then, as soon as reasonably practicable after such Physical  Note is surrendered for such conversion or repurchase, the Company will cause such Physical Note  to be exchanged, pursuant and subject to Section 2.10(C), for (i) one or more Physical Notes that  are in Authorized Denominations and have an aggregate principal amount equal to the principal  amount of such Physical Note that is not to be so converted or repurchased, as applicable, and  deliver such Physical Note(s) to such Holder; and (ii) a Physical Note having a principal amount  equal to the principal amount to be so converted or repurchased, as applicable, which Physical  Note will be converted or repurchased, as applicable, pursuant to the terms of this Indenture;  provided, however, that the Physical Note referred to in this clause (ii) need not be issued at any  time after which such principal amount subject to such conversion or repurchase, as applicable, is  deemed to cease to be outstanding pursuant to Section 2.18.  (B) Cancellation of Converted and Repurchased Notes.  (i) Physical Notes. If a Physical Note (or any portion thereof that has not  theretofore been exchanged pursuant to Section 2.11(A)) of a Holder is to be converted  pursuant to Article 5 or repurchased pursuant to a Repurchase Upon Fundamental Change,  then, promptly after the later of the time such Physical Note (or such portion) is deemed to  cease to be outstanding pursuant to Section 2.18 and the time such Physical Note is  surrendered for such conversion or repurchase, as applicable, (1) such Physical Note will  be cancelled pursuant to Section 2.15; and (2) in the case of a partial conversion or  repurchase, the Company will issue, execute and deliver to such Holder, and the Trustee  will authenticate, in each case in accordance with Section 2.02, one or more Physical Notes  that (x) are in Authorized Denominations and have an aggregate principal amount equal to  the principal amount of such Physical Note that is not to be so converted or repurchased;  (y) are registered in the name of such Holder; and (z) bear each legend, if any, required by  Section 2.09.  (ii) Global Notes. If a Global Note (or any portion thereof) is to be converted  pursuant to Article 5 or repurchased pursuant to a Repurchase Upon Fundamental Change,  then, promptly after the time such Note (or such portion) is deemed to cease to be  outstanding pursuant to Section 2.18, the Trustee will reflect a decrease of the principal  amount of such Global Note in an amount equal to the principal amount of such Global  Note to be so converted or repurchased, as applicable, by notation on the “Schedule of  Exchanges of Interests in the Global Note” forming part of such Global Note (and, if the  principal amount of such Global Note is zero following such notation, cancel such Global  Note pursuant to Section 2.15).  

 

ACTIVE/106960961.1      25    Section 2.12 Removal of Transfer Restrictions.  Without limiting the generality of any other provision of this Indenture (including Section  3.04), the Restricted Note Legend affixed to any Note will be deemed, pursuant to this Section  2.12 and the footnote to such Restricted Note Legend, to be removed therefrom upon the  Company’s delivery to the Trustee of notice, signed on behalf of the Company by one (1) of its  Officers, to such effect (and, for the avoidance of doubt, such notice need not be accompanied by  an Officer’s Certificate or an Opinion of Counsel in order to be effective to cause such Restricted  Note Legend to be deemed to be removed from such Note). If such Note bears a “restricted” CUSIP  or ISIN number at the time of such delivery, then, upon such delivery, such Note will be deemed,  pursuant to this Section 2.12 and the footnotes to the CUSIP and ISIN numbers set forth on the  face of the certificate representing such Note, to thereafter bear the “unrestricted” CUSIP and ISIN  numbers identified in such footnotes; provided, however, that if such Note is a Global Note and  the Depositary thereof requires a mandatory exchange or other procedure to cause such Global  Note to be identified by “unrestricted” CUSIP and ISIN numbers in the facilities of such  Depositary, then (i) the Company will effect such exchange or procedure as soon as reasonably  practicable; and (ii) for purposes of Section 3.04 and the definition of Freely Tradable, such Global  Note will not be deemed to be identified by “unrestricted” CUSIP and ISIN numbers until such  time as such exchange or procedure is effected.  Section 2.13 Replacement Notes.  If a Holder of any Note claims that such Note has been mutilated, lost, destroyed or  wrongfully taken, then the Company will issue, execute and deliver, and the Trustee will  authenticate, in each case in accordance with Section 2.02, a replacement Note upon surrender to  the Trustee of such mutilated Note, or upon delivery to the Trustee of evidence of such loss,  destruction or wrongful taking reasonably satisfactory to the Trustee and the Company. In the case  of a lost, destroyed or wrongfully taken Note, the Company and the Trustee may require the Holder  thereof to provide such security or indemnity that is reasonably satisfactory to the Company and  the Trustee to protect the Company and the Trustee from any loss that any of them may suffer if  such Note is replaced.  Every replacement Note issued pursuant to this Section 2.13 will be an additional  obligation of the Company and will be entitled to all of the benefits of this Indenture equally and  ratably with all other Notes issued under this Indenture.  Section 2.14 Registered Holders; Certain Rights with Respect to Global Notes.  Only the Holder of a Note will have rights under this Indenture as the owner of such Note.  Without limiting the generality of the foregoing, Depositary Participants will have no rights as  such under this Indenture with respect to any Global Note held on their behalf by the Depositary  or its nominee, or by the Trustee as its custodian, and the Company, the Trustee and the Note  Agents, and their respective agents, may treat the Depositary as the absolute owner of such Global  Note for all purposes whatsoever; provided, however, that (A) the Holder of any Global Note may  grant proxies and otherwise authorize any Person, including Depositary Participants and Persons  that hold interests in Notes through Depositary Participants, to take any action that such Holder is  entitled to take with respect to such Global Note under this Indenture or the Notes; and (B) the  

 

ACTIVE/106960961.1      26    Company and the Trustee, and their respective agents, may give effect to any written certification,  proxy or other authorization furnished by the Depositary.  Section 2.15 Cancellation.  Without limiting the generality of Section 3.07, the Company may at any time deliver  Notes to the Trustee for cancellation. The Registrar, the Paying Agent and the Conversion Agent  will forward to the Trustee each Note duly surrendered to them for transfer, exchange, payment or  conversion. The Trustee will promptly cancel all Notes so surrendered to it accordance with its  customary procedures. Without limiting the generality of Section 2.03(B), the Company may not  originally issue new Notes to replace Notes that it has paid or that have been cancelled upon  transfer, exchange, payment or conversion.  Section 2.16 Notes Held by the Company or its Affiliates.  Without limiting the generality of Section 3.07, in determining whether the Holders of the  required aggregate principal amount of Notes have concurred in any direction, waiver or consent,  Notes owned by the Company or any of its Affiliates will be deemed not to be outstanding;  provided, however, that, for purposes of determining whether the Trustee is protected in relying  on any such direction, waiver or consent, only Notes that a Responsible Officer of the Trustee  knows are so owned will be so disregarded.  Section 2.17 Temporary Notes.  Until definitive Notes are ready for delivery, the Company may issue, execute and deliver,  and the Trustee will authenticate, in each case in accordance with Section 2.02, temporary Notes.  Temporary Notes will be substantially in the form of definitive Notes but may have variations that  the Company considers appropriate for temporary Notes. The Company will promptly prepare,  issue, execute and deliver, and the Trustee will authenticate, in each case in accordance with  Section 2.02, definitive Notes in exchange for temporary Notes. Until so exchanged, each  temporary Note will in all respects be entitled to the same benefits under this Indenture as definitive  Notes.  Section 2.18 Outstanding Notes.  (A) Generally. The Notes that are outstanding at any time will be deemed to be those  Notes that, at such time, have been duly executed and authenticated, excluding those Notes (or  portions thereof) that have theretofore been (i) cancelled by the Trustee or delivered to the Trustee  for cancellation in accordance with Section 2.15; (ii) assigned a principal amount of zero by  notation on the “Schedule of Exchanges of Interests in the Global Note” forming part of any a  Global Note representing such Note; (iii) paid in full in accordance with this Indenture; or  (iv) deemed to cease to be outstanding to the extent provided in, and subject to, clause (B), (C) or  (D) of this Section 2.18.  (B) Replaced Notes. If a Note is replaced pursuant to Section 2.13, then such Note will  cease to be outstanding at the time of its replacement, unless the Trustee and the Company receive  proof reasonably satisfactory to them that such Note is held by a “bona fide purchaser” under  applicable law.  

 

ACTIVE/106960961.1      27    (C) Maturing Notes and Notes Subject to Repurchase. If, on a Fundamental Change  Repurchase Date or the Maturity Date, the Paying Agent holds money sufficient to pay the  aggregate Fundamental Change Repurchase Price or principal amount, respectively, together, in  each case, with the aggregate interest, in each case due on such date, then (unless there occurs a  Default in the payment of any such amount) (i) the Notes (or portions thereof) to be repurchased,  or that mature, on such date will be deemed, as of such date, to cease to be outstanding, except to  the extent provided in Sections 4.02(D) or 5.02(D); and (ii) the rights of the Holders of such Notes  (or such portions thereof), as such, will terminate with respect to such Notes (or such portions  thereof), other than the right to receive the Fundamental Change Repurchase Price or principal  amount, as applicable, of, and accrued and unpaid interest on, such Notes (or such portions  thereof), in each case as provided in this Indenture.  (D) Notes to Be Converted. At the Close of Business on the Conversion Date for any  Note (or any portion thereof) to be converted, such Note (or such portion) will (unless there occurs  a Default in the delivery of the Conversion Consideration or interest due, pursuant to Section  5.03(B) or Section 5.02(D), upon such conversion) be deemed to cease to be outstanding, except  to the extent provided in Section 5.02(D) or Section 5.08.  (E) Cessation of Accrual of Interest. Except as provided in Section 4.02(D) or Section  5.02(D), interest will cease to accrue on each Note from, and including, the date that such Note is  deemed, pursuant to this Section 2.18, to cease to be outstanding, unless there occurs a default in  the payment or delivery of any cash or other property due on such Note.  Section 2.19 Repurchases by the Company.  Without limiting the generality of Section 2.15, the Company may, from time to time,  directly or indirectly repurchase Notes in open market purchases or in negotiated transactions  without delivering prior notice to Holders.  Section 2.20 CUSIP and ISIN Numbers.  Subject to Section 2.12, the Company may use one or more CUSIP or ISIN numbers to  identify any of the Notes, and, if so, the Company and the Trustee will use such CUSIP or ISIN  number(s) in notices to Holders; provided, however, that (i) each such notice will state that no  representation is made by the Trustee as to the correctness or accuracy of any such CUSIP or ISIN  number; and (ii) the effectiveness of any such notice will not be affected by any defect in, or  omission of, any such CUSIP or ISIN number. The Company will promptly notify the Trustee of  any change in the CUSIP or ISIN number(s) identifying any Notes.  ARTICLE 3  Covenants  Section 3.01 Payment on Notes.  (A) Generally. The Company will pay or cause to be paid all the principal of, the  Fundamental Change Repurchase Price for, interest on, and other amounts due with respect to, the  Notes on the dates and in the manner set forth in this Indenture.  

 

ACTIVE/106960961.1      28    (B) Deposit of Funds. Before 11:00 A.M., New York City time, on each Fundamental  Change Repurchase Date or Interest Payment Date, and on the Maturity Date or any other date on  which any cash amount is due on the Notes, the Company will deposit, or will cause there to be  deposited, with the Paying Agent cash, in funds immediately available on such date, sufficient to  pay the cash amount due on the applicable Notes on such date. The Paying Agent will return to  the Company, as soon as practicable, any money not required for such purpose.  Section 3.02 Exchange Act Reports.  (A) Generally. The Company will send to the Trustee copies of all reports that the  Company is required to file with the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act  within fifteen (15) calendar days after the date that the Company is required to file the same with  the SEC (after giving effect to all applicable grace periods under the Exchange Act); provided,  however, that the Company need not send to the Trustee any material for which the Company has  received, or is seeking in good faith and has not been denied, confidential treatment by the SEC.  Any report that the Company files with the SEC through the EDGAR system (or any successor  thereto) will be deemed to be sent to the Trustee at the time such report is so filed via the EDGAR  system (or such successor). Upon the request of any Holder, the Trustee will provide to such  Holder a copy of any report that the Company has sent the Trustee pursuant to this Section 3.02(A),  other than a report that is deemed to be sent to the Trustee pursuant to the preceding sentence.   (B) Trustee’s Disclaimer. The Trustee need not determine whether the Company has  filed any material via the EDGAR system (or such successor). The delivery, sending or filing of  reports pursuant to Section 3.01(A) will not be deemed to constitute constructive notice to the  Trustee of any information contained, or determinable from information contained, therein,  including the Company’s compliance with any of its covenants under this Indenture (as to which  the Trustee is entitled to conclusively rely on one or more Officer’s Certificates).  The Trustee  shall have no liability or responsibility for filing, timeliness or contents of such reports.  Section 3.03 Rule 144A Information.  If the Company is not subject to Section 13 or 15(d) of the Exchange Act at any time when  any Notes or Conversion Shares are outstanding and constitute “restricted securities” (as defined  in Rule 144), then the Company (or its successor) will promptly provide, to the Trustee and, upon  written request, to any Holder, beneficial owner or prospective purchaser of such Notes or  Conversion Shares, the information required to be delivered pursuant to Rule 144A(d)(4) under  the Securities Act to facilitate the resale of such Notes or Conversion Shares pursuant to Rule  144A. The Company (or its successor) will take such further action as any Holder or beneficial  owner of such Notes or Conversion Shares may reasonably request to enable such Holder or  beneficial owner to sell such Notes or Conversion Shares pursuant to Rule 144A.  Section 3.04 Additional Interest.  (A) Accrual of Additional Interest.  (i) If, at any time during the six (6) month period beginning on, and including,  the date that is six (6) months after the Last Original Issue Date of any Note,  

 

ACTIVE/106960961.1      29    (1) the Company fails to timely file any report (other than Form 8-K  reports) that the Company is required to file with the SEC pursuant to Section 13  or 15(d) of the Exchange Act (after giving effect to all applicable grace periods  thereunder); or  (2) such Note is not otherwise Freely Tradable, then Additional Interest  will accrue on such Note for each day during such period on which such failure is  continuing or such Note is not Freely Tradable.  (ii) In addition, Additional Interest will accrue on a Note on each day on which  such Note is not Freely Tradable on or after the De-Legending Deadline Date of such Note.  (B) Amount and Payment of Additional Interest. Any Additional Interest that accrues  on a Note pursuant to Section 3.04(A) will be payable on the same dates and in the same manner  as the Stated Interest on such Note and will accrue at a rate per annum equal to one quarter of one  percent (0.25%) of the principal amount thereof for the first ninety (90) days on which Additional  Interest accrues and, thereafter, at a rate per annum equal to one half of one percent (0.50%) of the  principal amount thereof; provided, however, that in no event will Additional Interest that may  accrue as a result of the Company’s failure to timely file any report (other than Form 8-K reports)  that it is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, together  with any Special Interest, accrue on any day on a Note at a combined rate per annum that exceeds  one half of one percent (0.50%). For the avoidance of doubt, any Additional Interest that accrues  on a Note will be in addition to the Stated Interest that accrues on such Note and, subject to the  proviso of the immediately preceding sentence, in addition to any Special Interest that accrues on  such Note.  (C) Notice of Accrual of Additional Interest; Trustee’s Disclaimer. The Company will  send notice to the Holder of each Note, and to the Trustee, of the commencement and termination  of any period in which Additional Interest accrues on such Note. In addition, if Additional Interest  accrues on any Note, then, no later than five (5) Business Days before each date on which such  Additional Interest is to be paid, the Company will deliver an Officer’s Certificate to the Trustee  and the Paying Agent stating (i) that the Company is obligated to pay Additional Interest on such  Note on such date of payment; and (ii) the amount of such Additional Interest that is payable on  such date of payment. The Trustee will have no duty to determine whether any Additional Interest  is payable or the amount thereof.  (D) The accrual of Additional Interest will be the exclusive remedy available to Holders  for the failure of their Notes to become Freely Tradable.  Section 3.05 Compliance and Default Certificates.  (A) Annual Compliance Certificate. Within one hundred and twenty (120) days after  September 30, 2021 and each fiscal year of the Company ending thereafter, the Company will  deliver an Officer’s Certificate to the Trustee stating (i) that the signatory thereto has supervised a  review of the activities of the Company and its Subsidiaries during such fiscal year with a view  towards determining whether any Default or Event of Default has occurred; and (ii) whether a  Default or Event of Default has occurred during the previous year or is continuing (and, if so,  

 

ACTIVE/106960961.1      30    describing all such Defaults or Events of Default and what action the Company is taking or  proposes to take with respect thereto).   (B) Default Certificate. If a Default or Event of Default occurs, then the Company will  promptly deliver an Officer’s Certificate to the Trustee describing the same and what action the  Company is taking or proposes to take with respect thereto.  Section 3.06 Stay, Extension and Usury Laws.  To the extent that it may lawfully do so, the Company (A) agrees that it will not at any time  insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay,  extension or usury law (wherever or whenever enacted or in force) that may affect the covenants  or the performance of this Indenture; and (B) expressly waives all benefits or advantages of any  such law and agrees that it will not, by resort to any such law, hinder, delay or impede the execution  of any power granted to the Trustee by this Indenture, but will suffer and permit the execution of  every such power as though no such law has been enacted.  Section 3.07 Notes Acquired by the Company.  The Company will as soon as practicable deliver to the Trustee for cancellation all Notes  that the Company or any of its Subsidiaries has purchased or otherwise acquired; provided,  however, that the Company may instead reissue or resell any such Notes so long as such Notes (A)  will not constitute “restricted securities” (as defined in Rule 144) upon such reissuance or resale;  and (B) will be fungible with all other Notes then outstanding for federal income tax purposes.  Section 3.08 Existence.  Subject to Article 6, the Company will do or cause to be done all things necessary to  preserve and keep in full force and effect its corporate existence.  ARTICLE 4  Repurchase and Redemption  Section 4.01 No Sinking Fund.  No sinking fund is required to be provided for the Notes.  Section 4.02 Right of Holders to Require the Company to Repurchase Notes upon a  Fundamental Change.  (A) Right of Holders to Require the Company to Repurchase Notes Upon a  Fundamental Change. Subject to the other terms of this Section 4.02, if a Fundamental Change  occurs, then each Holder will have the right (the “Fundamental Change Repurchase Right”) to  require the Company to repurchase such Holder’s Notes (or any portion thereof in an Authorized  Denomination) on the Fundamental Change Repurchase Date for such Fundamental Change for a  cash purchase price equal to the Fundamental Change Repurchase Price.  (B) Repurchase Prohibited in Certain Circumstances. If the principal amount of the  Notes has been accelerated and such acceleration has not been rescinded on or before the  

 

ACTIVE/106960961.1      31    Fundamental Change Repurchase Date for a Repurchase Upon Fundamental Change (including as  a result of the payment of the related Fundamental Change Repurchase Price, and any related  interest pursuant to the proviso to Section 4.02(D), on such Fundamental Change Repurchase  Date), then (i) the Company may not repurchase any Notes pursuant to this Section 4.02; and (ii)  the Company will cause any Notes theretofore surrendered for such Repurchase Upon  Fundamental Change to be returned to the Holders thereof (or, if applicable with respect to Global  Notes, cancel any instructions for book-entry transfer to the Company, the Trustee or the Paying  Agent of the applicable beneficial interest in such Notes in accordance with the Depositary  Procedures).  (C) Fundamental Change Repurchase Date. The Fundamental Change Repurchase  Date for any Fundamental Change will be a Business Day of the Company’s choosing that is no  more than thirty five (35), nor less than twenty (20), Business Days after the date the Company  sends the related Fundamental Change Notice pursuant to Section 4.02(E).  (D) Fundamental Change Repurchase Price. The Fundamental Change Repurchase  Price for any Note to be repurchased upon a Repurchase Upon Fundamental Change following a  Fundamental Change is an amount in cash equal to the principal amount of such Note plus accrued  and unpaid interest on such Note to, but excluding, the Fundamental Change Repurchase Date for  such Fundamental Change; provided, however, that if such Fundamental Change Repurchase Date  is after a Regular Record Date and on or before the next Interest Payment Date, then (i) the Holder  of such Note at the Close of Business on such Regular Record Date will be entitled,  notwithstanding such Repurchase Upon Fundamental Change, to receive, on or, at the Company’s  election, before such Interest Payment Date, the unpaid interest that would have accrued on such  Note to, but excluding, such Interest Payment Date (assuming, solely for these purposes, that such  Note remained outstanding through such Interest Payment Date, if such Fundamental Change  Repurchase Date is before such Interest Payment Date); and (ii) the Fundamental Change  Repurchase Price will not include accrued and unpaid interest on such Note to, but excluding, such  Fundamental Change Repurchase Date. For the avoidance of doubt, if an Interest Payment Date is  not a Business Day within the meaning of Section 2.05(C) and such Fundamental Change  Repurchase Date occurs on the Business Day immediately after such Interest Payment Date, then  (x) accrued and unpaid interest on Notes to, but excluding, such Interest Payment Date will be  paid, in accordance with Section 2.05(C), on the next Business Day to Holders at of the Close of  Business on the immediately preceding Regular Record Date; and (y) the Fundamental Change  Repurchase Price will include interest on Notes to be repurchased from, and including, such  Interest Payment Date.  (E) Fundamental Change Notice. On or before the twentieth (20th) calendar day after  the occurrence of a Fundamental Change, the Company will send to each Holder (and to any  beneficial owner of a Global Note, if required by applicable law), the Trustee and the Paying Agent  a notice of such Fundamental Change (a “Fundamental Change Notice”).  Such Fundamental Change Notice must state:  (i) briefly, the events causing such Fundamental Change;  (ii) the effective date of such Fundamental Change;  

 

ACTIVE/106960961.1      32    (iii) the procedures that a Holder must follow to require the Company to  repurchase its Notes pursuant to this Section 4.02, including the deadline for exercising  the Fundamental Change Repurchase Right and the procedures for submitting and  withdrawing a Fundamental Change Repurchase Notice;  (iv) the Fundamental Change Repurchase Date for such Fundamental Change;  (v) the Fundamental Change Repurchase Price per $1,000 principal amount of  Notes for such Fundamental Change (and, if such Fundamental Change Repurchase Date  is after a Regular Record Date and on or before the next Interest Payment Date, the amount,  manner and timing of the interest payment payable pursuant to the proviso to Section  4.02(D));  (vi) the name and address of the Paying Agent and the Conversion Agent;  (vii) the Conversion Rate in effect on the date of such Fundamental Change  Notice and a description and quantification of any adjustments to the Conversion Rate that  may result from such Fundamental Change (including pursuant to Section 5.07);  (viii) that Notes for which a Fundamental Change Repurchase Notice has been  duly tendered and not duly withdrawn must be delivered to the Paying Agent for the Holder  thereof to be entitled to receive the Fundamental Change Repurchase Price;  (ix) that Notes (or any portion thereof) that are subject to a Fundamental Change  Repurchase Notice that has been duly tendered may be converted only if such Fundamental  Change Repurchase Notice is withdrawn in accordance with this Indenture; and  (x) the CUSIP and ISIN numbers, if any, of the Notes.  Neither the failure to deliver a Fundamental Change Notice nor any defect in a  Fundamental Change Notice will limit the Fundamental Change Repurchase Right of any Holder  or otherwise affect the validity of any proceedings relating to any Repurchase Upon Fundamental  Change.  (F) Procedures to Exercise the Fundamental Change Repurchase Right.  (i) Delivery of Fundamental Change Repurchase Notice and Notes to Be  Repurchased. To exercise its Fundamental Change Repurchase Right for a Note following  a Fundamental Change, the Holder thereof must deliver to the Paying Agent:  (1) before the Close of Business on the Business Day immediately  before the related Fundamental Change Repurchase Date (or such later time as may  be required by law), a duly completed, written Fundamental Change Repurchase  Notice with respect to such Note; and  (2) such Note, duly endorsed for transfer (if such Note is a Physical  Note) or by book-entry transfer (if such Note is a Global Note).  

 

ACTIVE/106960961.1      33    The Paying Agent will promptly deliver to the Company a copy of each Fundamental Change  Repurchase Notice that it receives.  (ii) Contents of Fundamental Change Repurchase Notices. Each Fundamental  Change Repurchase Notice with respect to a Note must state:  (1) if such Note is a Physical Note, the certificate number of such Note;  (2) the principal amount of such Note to be repurchased, which must be  an Authorized Denomination; and  (3) that such Holder is exercising its Fundamental Change Repurchase  Right with respect to such principal amount of such Note;  provided, however, that if such Note is a Global Note, then such Fundamental  Change Repurchase Notice must comply with the Depositary Procedures (and any  such Fundamental Change Repurchase Notice delivered in compliance with the  Depositary Procedures will be deemed to satisfy the requirements of this Section  4.02(F)).  (iii) Withdrawal of Fundamental Change Repurchase Notice. A Holder that has  delivered a Fundamental Change Repurchase Notice with respect to a Note may withdraw  such Fundamental Change Repurchase Notice by delivering a written notice of withdrawal  to the Paying Agent at any time before the Close of Business on the Business Day  immediately before the related Fundamental Change Repurchase Date. Such withdrawal  notice must state:  (1) if such Note is a Physical Note, the certificate number of such Note;  (2) the principal amount of such Note to be withdrawn, which must be  an Authorized Denomination; and  (3) the principal amount of such Note, if any, that remains subject to  such Fundamental Change Repurchase Notice, which must be an Authorized  Denomination;  provided, however, that if such Note is a Global Note, then such withdrawal notice  must comply with the Depositary Procedures (and any such withdrawal notice  delivered in compliance with the Depositary Procedures will be deemed to satisfy  the requirements of this Section 4.02(F)).  Upon receipt of any such withdrawal notice with respect to a Note (or any portion thereof), the  Paying Agent will (x) promptly deliver a copy of such withdrawal notice to the Company; and (y)  if such Note is surrendered to the Paying Agent, cause such Note (or such portion thereof in  accordance with Section 2.11, treating such Note as having been then surrendered for partial  repurchase in the amount set forth in such withdrawal notice as remaining subject to repurchase)  to be returned to the Holder thereof (or, if applicable with respect to any Global Note, cancel any  

 

ACTIVE/106960961.1      34    instructions for book-entry transfer to the Company, the Trustee or the Paying Agent of the  applicable beneficial interest in such Note in accordance with the Depositary Procedures).  (G) Payment of the Fundamental Change Repurchase Price. Without limiting the  Company’s obligation to deposit the Fundamental Change Repurchase Price within the time  proscribed by Section 3.01(B), the Company will cause the Fundamental Change Repurchase  Price for a Note (or portion thereof) to be repurchased pursuant to a Repurchase Upon Fundamental  Change to be paid to the Holder thereof on or before the later of (i) the applicable Fundamental  Change Repurchase Date; and (ii) the date (x) such Note is delivered to the Paying Agent (in the  case of a Physical Note) or (y) the Depositary Procedures relating to the repurchase, and the  delivery to the Paying Agent, of such Holder’s beneficial interest in such Note to be repurchased  are complied with (in the case of a Global Note). For the avoidance of doubt, interest payable  pursuant to the proviso to Section 4.02(D) on any Note to be repurchased pursuant to a Repurchase  Upon Fundamental Change must be paid pursuant to such proviso regardless of whether such Note  is delivered or such Depositary Procedures are complied with pursuant to the first sentence of this  Section 4.02(G).  (H) Third Party May Conduct Repurchase Offer In Lieu of the Company.  Notwithstanding anything to the contrary in this Section 4.02, the Company will be deemed to  satisfy its obligations under this Section 4.02 if (i) one or more third parties conduct any  Repurchase Upon Fundamental Change and related offer to repurchase Notes otherwise required  by this Section 4.02 in a manner that would have satisfied the requirements of this Section 4.02 if  conducted directly by the Company and (ii) an owner of a beneficial interest in any Note  repurchased by such third party or parties will not receive a lesser amount (as a result of taxes,  additional expenses or for any other reason) than such owner would have received had the  Company repurchased such Note.  (I) No Requirement to Conduct an Offer to Repurchase Notes if the Fundamental  Change Results in the Notes Becoming Convertible into an Amount of Cash Exceeding the  Fundamental Change Repurchase Price. Notwithstanding anything to the contrary in this Section  4.02, the Company will not be required to send a Fundamental Change Notice pursuant to Section  4.02(E), or offer to repurchase or repurchase any Notes pursuant to this Section 4.02, in connection  with a Fundamental Change occurring pursuant to clause (B)(ii) (or pursuant to clause (A) that  also constitutes a Fundamental Change occurring pursuant to clause (B)(ii)) of the definition  thereof, if (i) such Fundamental Change constitutes a Common Stock Change Event whose  Reference Property consists entirely of cash in U.S. dollars; (ii) immediately after such  Fundamental Change, the Notes become convertible, pursuant to Section 5.09(A) and, if  applicable, Section 5.07, into consideration that consists solely of U.S. dollars in an amount per  $1,000 aggregate principal amount of Notes that equals or exceeds the Fundamental Change  Repurchase Price per $1,000 aggregate principal amount of Notes (calculated assuming that the  same includes the maximum amount of accrued interest payable as part of the related Fundamental  Change Repurchase Price); and (iii) the Company timely sends the notice relating to such  Fundamental Change required pursuant to Section 5.01(C)(i)(3)(b), and includes, in such notice,  a statement that the Company is relying on this Section 4.02(I).  (J) Compliance with Applicable Securities Laws. To the extent applicable, the  Company will comply with all U.S. federal and state securities laws in connection with a  

 

ACTIVE/106960961.1      35    Repurchase Upon Fundamental Change (including complying with Rules 13e-4 and 14e-1 under  the Exchange Act and filing any required Schedule TO, to the extent applicable) so as to permit  effecting such Repurchase Upon Fundamental Change in the manner set forth in this Indenture;  provided, however, that, to the extent that the Company’s obligations pursuant to this Section 4.02  conflict with any law or regulation that is applicable to the Company and enacted after the Issue  Date, the Company’s compliance with such law or regulation will not be considered to be a Default  of such obligations.  (K) Repurchase in Part. Subject to the terms of this Section 4.02, Notes may be  repurchased pursuant to a Repurchase Upon Fundamental Change in part, but only in Authorized  Denominations. Provisions of this Section 4.02 applying to the repurchase of a Note in whole will  equally apply to the repurchase of a permitted portion of a Note.  Section 4.03 No Right of Redemption by the Company.  The Company does not have the right to redeem the Notes at its election.  ARTICLE 5  Conversion  Section 5.01 Right to Convert.  (A) Generally. Subject to the provisions of this Article 5, including Section 5.10, each  Holder may, at its option, convert such Holder’s Notes into Conversion Consideration.  (B) Conversions in Part. Subject to the terms of this Indenture, Notes may be converted  in part, but only in Authorized Denominations. Provisions of this Article 5 applying to the  conversion of a Note in whole will equally apply to conversions of a permitted portion of a Note.  (C) When Notes May Be Converted.  (i) Generally. Subject to Section 5.01(C)(ii), a Note may be converted only in  the following circumstances:  (1) Conversion upon Satisfaction of Common Stock Sale Price  Condition. A Holder may convert its Notes during any calendar quarter (and only  during such calendar quarter) commencing after the calendar quarter ending on  June 30, 2021, if the Last Reported Sale Price per share of Common Stock exceeds  one hundred and thirty percent (130%) of the Conversion Price for each of at least  twenty (20) Trading Days (whether or not consecutive) during the thirty (30)  consecutive Trading Days ending on, and including, the last Trading Day of the  immediately preceding calendar quarter.  (2) Conversion upon Satisfaction of Note Trading Price Condition. A  Holder may convert its Notes during the five (5) consecutive Business Days  immediately after any five (5) consecutive Trading Day period (such five (5)  consecutive Trading Day period, the “Measurement Period”) if the Trading Price  per $1,000 principal amount of Notes, as determined following a request by a  Holder in accordance with the procedures set forth below, for each Trading Day of  

 

ACTIVE/106960961.1      36    the Measurement Period was less than ninety eight percent (98%) of the product of  the Last Reported Sale Price per share of Common Stock on such Trading Day and  the Conversion Rate on such Trading Day. The condition set forth in the preceding  sentence is referred to in this Indenture as the “Trading Price Condition.”  The Trading Price will be determined by the Bid Solicitation Agent pursuant to this  Section 5.01(C)(i)(2) and the definition of “Trading Price.” The Bid Solicitation  Agent (if not the Company) will have no obligation to determine the Trading Price  of the Notes unless the Company has requested such determination in writing, and  the Company will have no obligation to make such request (or seek bids itself)  unless a Holder provides the Company with reasonable evidence that the Trading  Price per $1,000 principal amount of Notes would be less than ninety eight percent  (98%) of the product of the Last Reported Sale Price per share of Common Stock  and the Conversion Rate. If a Holder provides such evidence, then the Company  will (if acting as Bid Solicitation Agent), or will instruct the Bid Solicitation Agent  to, determine the Trading Price of the Notes beginning on the next Trading Day and  on each successive Trading Day until the Trading Price per $1,000 principal amount  of Notes is greater than or equal to ninety eight percent (98%) of the product of the  Last Reported Sale Price per share of Common Stock on such Trading Day and the  Conversion Rate on such Trading Day. If the Trading Price Condition has been met  as set forth above, then the Company will notify the Holders, the Trustee and the  Conversion Agent of the same. If, on any Trading Day after the Trading Price  Condition has been met as set forth above, the Trading Price per $1,000 principal  amount of Notes is greater than or equal to ninety eight percent (98%) of the product  of the Last Reported Sale Price per share of Common Stock on such Trading Day  and the Conversion Rate on such Trading Day, then the Company will notify the  Holders, the Trustee and the Conversion Agent of the same. UMB Bank, National  Association shall not have any duty under this Indenture to act as Bid Solicitation  Agent and shall not be responsible for calculations provided by the Bid Solicitation  Agent, in each case, unless UMB Bank, National Association agrees in writing to  become Bid Solicitation under this Indenture.       (3) Conversion upon Specified Corporate Events.  (a) Certain Distributions. If the Company elects to:  (I) distribute, to all or substantially all holders of  Common Stock, any rights, options or warrants (other than rights  issued pursuant to a stockholder rights plan, so long as such rights  have not separated from the Common Stock and are not exercisable  until the occurrence of a triggering event, except that such rights will  be deemed to be distributed under this Section 5.01(C)(i)(3)(a)(I)  upon their separation from the Common Stock or upon the  occurrence of such triggering event) entitling them, for a period of  not more than sixty (60) calendar days after the record date of such  distribution, to subscribe for or purchase shares of Common Stock  at a price per share that is less than the average of the Last Reported  

 

ACTIVE/106960961.1      37    Sale Prices per share of Common Stock for the ten (10) consecutive  Trading Days ending on, and including, the Trading Day  immediately before the date such distribution is announced  (determined in the manner set forth in the third paragraph of Section  5.05(A)(ii)); or  (II) distribute, to all or substantially all holders of  Common Stock, assets or securities of the Company or rights to  purchase the Company’s securities, which distribution per share of  Common Stock has a value, as reasonably determined by the Board  of Directors, exceeding ten percent (10%) of the Last Reported Sale  Price per share of Common Stock on the Trading Day immediately  before the date such distribution is announced,   then, in either case, (x) the Company will send notice of such distribution,  and of the related right to convert Notes, to Holders, the Trustee and the  Conversion Agent at least fifty (50) Scheduled Trading Days before the Ex- Dividend Date for such distribution; and (y) once the Company has sent  such notice, Holders may convert their Notes at any time until the earlier of  the Close of Business on the Business Day immediately before such Ex- Dividend Date and the Company’s announcement that such distribution will  not take place; provided, however, that the Notes will not become  convertible pursuant to clause (y) above (but the Company will be required  to send notice of such distribution pursuant to clause (x) above) on account  of such distribution if each Holder participates, at the same time and on the  same terms as holders of Common Stock, and solely by virtue of being a  Holder, in such distribution without having to convert such Holder’s Notes  and as if such Holder held a number of shares of Common Stock equal to  the product of (i) the Conversion Rate in effect on the record date for such  distribution; and (ii) the aggregate principal amount (expressed in  thousands) of Notes held by such Holder on such date; provided, further,  that, notwithstanding anything to the contrary in this Section  5.01(C)(i)(3)(a), in the case of any separation, from the Common Stock, of  rights issued pursuant to a stockholder rights plan or the occurrence of any  triggering event under  stockholder rights plan, in each case, as set forth in  clause (I) above, in no event will the Company be required to provide such  notice before the Business Day after the date the Company becomes aware  of the event causing such separation or triggering event.  (b) Certain Corporate Events. If a Fundamental Change, Make- Whole Fundamental Change or Common Stock Change Event (other than a  merger or other business combination transaction that is effected solely to  change the Company’s jurisdiction of incorporation and that does not  constitute a Fundamental Change or a Make-Whole Fundamental Change)  occurs, then, in each case, Holders may convert their Notes at any time  from, and including, the effective date of such transaction or event to, and  including, the thirty fifth (35th) Trading Day after such effective date (or, if  

 

ACTIVE/106960961.1      38    such transaction or event also constitutes a Fundamental Change (other than  an Exempted Fundamental Change), to, but excluding, the related  Fundamental Change Repurchase Date); provided, however, that if the  Company does not provide the notice referred to in the immediately  following sentence by such effective date, then the last day on which the  Notes are convertible pursuant to this sentence will be extended by the  number of Business Days from, and including, such effective date to, but  excluding, the date the Company provides such notice. No later than such  effective date, the Company will send notice to the Holders, the Trustee and  the Conversion Agent of such transaction or event, such effective date and  the related right to convert Notes.  (4) Conversions During Free Convertibility Period. A Holder may  convert its Notes at any time from, and including, August 1, 2025 until the Close  of Business on the second (2nd) Scheduled Trading Day immediately before the  Maturity Date.  For the avoidance of doubt, the Notes may become convertible pursuant to any one  or more of the preceding sub-paragraphs of this Section 5.01(C)(i) and the Notes  ceasing to be convertible pursuant to a particular sub-paragraph of this Section  5.01(C)(i) will not preclude the Notes from being convertible pursuant to any other  sub-paragraph of this Section 5.01(C)(i).  (ii) Limitations and Closed Periods. Notwithstanding anything to the contrary  in this Indenture or the Notes:  (1) Notes may be surrendered for conversion only after the Open of  Business and before the Close of Business on a day that is a Business Day;  (2) in no event may any Note be converted after the Close of Business  on the second (2nd) Scheduled Trading Day immediately before the Maturity Date;  (3) if a Fundamental Change Repurchase Notice is validly delivered  pursuant to Section 4.02(F) with respect to any Note, then such Note may not be  converted, except to the extent (a) such Note is not subject to such notice; (b) such  notice is withdrawn in accordance with Section 4.02(F); or (c) the Company fails  to pay the Fundamental Change Repurchase Price for such Note in accordance with  this Indenture; and  (4) Conversions are subject to Section 5.10.  Section 5.02 Conversion Procedures.  (A) Generally.  (i) Global Notes. To convert a beneficial interest in a Global Note that is  convertible pursuant to Section 5.01(C), the owner of such beneficial interest must  (1) comply with the Depositary Procedures for converting such beneficial interest (at which  

 

ACTIVE/106960961.1      39    time such conversion will become irrevocable); and (2) pay any amounts due pursuant to  Section 5.02(D) or Section 5.02(E).  (ii) Physical Notes. To convert all or a portion of a Physical Note that is  convertible pursuant to Section 5.01(C), the Holder of such Note must (1) complete,  manually sign and deliver to the Conversion Agent the conversion notice attached to such  Physical Note or a facsimile of such conversion notice; (2) deliver such Physical Note to  the Conversion Agent (at which time such conversion will become irrevocable); (3) furnish  any endorsements and transfer documents that the Company or the Conversion Agent may  require; and (4) pay any amounts due pursuant to Section 5.02(D) or Section 5.02(E).  (B) Effect of Converting a Note. At the Close of Business on the Conversion Date for a  Note (or any portion thereof), such Note (or such portion thereof) will be deemed to cease to be  outstanding (and, for the avoidance of doubt, no Person will be deemed to be a Holder of such  Note (or such portion thereof) as of the Close of Business on such Conversion Date), except to the  extent provided in Section 5.02(D).  (C) Holder of Record of Conversion Shares. The Person in whose name any share of  Common Stock is issuable upon conversion of any Note will be deemed to become the holder of  record of such share as of the Close of Business on the last VWAP Trading Day of the Observation  Period for such conversion, in the case of Combination Settlement.  (D) Interest Payable upon Conversion in Certain Circumstances. If the Conversion  Date of a Note is after a Regular Record Date and before the next Interest Payment Date, then (i)  the Holder of such Note at the Close of Business on such Regular Record Date will be entitled,  notwithstanding such conversion (and, for the avoidance of doubt, notwithstanding anything set  forth in the proviso to this sentence), to receive, on or, at the Company’s election, before such  Interest Payment Date, the unpaid interest that would have accrued on such Note to, but excluding,  such Interest Payment Date (assuming, solely for these purposes, that such Note remained  outstanding through such Interest Payment Date); and (ii) the Holder surrendering such Note for  conversion must deliver to the Conversion Agent, at the time of such surrender, an amount of cash  equal to the amount of such interest referred to in clause (i) above; provided, however, that the  Holder surrendering such Note for conversion need not deliver such cash (x) if such Conversion  Date occurs after the Regular Record Date immediately before the Maturity Date; (y) if the  Company has specified a Fundamental Change Repurchase Date that is after such Regular Record  Date and on or before the Business Day immediately after such Interest Payment Date; or (z) to  the extent of any overdue interest or interest that has accrued on any overdue interest. For the  avoidance of doubt, as a result of, and without limiting the generality of, the foregoing, if a Note  is converted with a Conversion Date that is after the Regular Record Date immediately before the  Maturity Date, then the Company will pay, as provided above, the interest that would have accrued  on such Note to, but excluding, the Maturity Date. For the avoidance of doubt, if the Conversion  Date of a Note to be converted is on an Interest Payment Date, then the Holder of such Note at the  Close of Business on the Regular Record Date immediately before such Interest Payment Date  will be entitled to receive, on such Interest Payment Date, the unpaid interest that has accrued on  such Note to, but excluding, such Interest Payment Date, and such Note, when surrendered for  conversion, need not be accompanied by any cash amount pursuant to the first sentence of this  Section 5.02(D).  

 

ACTIVE/106960961.1      40    (E) Taxes and Duties. If a Holder converts a Note, the Company will pay any  documentary, stamp or similar issue or transfer tax or duty due on the issue or delivery of any  shares of Common Stock upon such conversion; provided, however, that if any tax or duty is due  because such Holder requested such shares to be registered in a name other than such Holder’s  name, then such Holder will pay such tax or duty and, until having received a sum sufficient to  pay such tax or duty, the Conversion Agent may refuse to deliver any such shares to be issued in  a name other than that of such Holder.  (F) Conversion Agent to Notify Company of Conversions. If any Note is submitted for  conversion to the Conversion Agent or the Conversion Agent receives any notice of conversion  with respect to a Note, then the Conversion Agent will promptly notify the Company and the  Trustee of such occurrence, together with any other information reasonably requested by the  Company, and will cooperate with the Company to determine the Conversion Date for such Note.  Section 5.03 Settlement upon Conversion.  (A) Settlement Method. Upon the conversion of any Note, the Company will settle such  conversion by paying or delivering, as applicable and as provided in this Article 5, either (y) solely  cash as provided in Section 5.03(B)(i)(2) (a “Cash Settlement”); or (z) a combination of cash and  shares of Common Stock, together, if applicable, with cash in lieu of fractional shares as provided  in Section 5.03(B)(i)(3) (a “Combination Settlement”); provided, that, notwithstanding anything  contrary in this Indenture or the Notes, the Company shall be required to settle such conversion  with Cash Settlement unless and until the Company receives Stockholder Approval.  (i) The Company’s Right to Elect Settlement Method. After the Company  obtains Stockholder Approval, the Company will have the right to elect the Settlement  Method applicable to any conversion of a Note; provided, however, that:  (1) all conversions of Notes with a Conversion Date that occurs on or  after August 1, 2025 will be settled using the same Settlement Method, and the  Company will send notice of such Settlement Method to Holders and the  Conversion Agent no later than the Open of Business on August 1, 2025;  (2) if the Company elects a Settlement Method with respect to the  conversion of any Note whose Conversion Date occurs before August 1, 2025, then  the Company will send notice of such Settlement Method to the Holder of such  Note and the Conversion Agent no later than the Close of Business on the Business  Day immediately after such Conversion Date;  (3) the Company will use the same Settlement Method for all  conversions of Notes with a Conversion Date that occurs on the same day (and, for  the avoidance of doubt, the Company will not be obligated to use the same  Settlement Method with respect to conversions of Notes whose Conversion Dates  occur on different days, except as provided in clause (1) above);  (4) if the Company does not timely elect a Settlement Method with  respect to the conversion of a Note, then the Company will be deemed to have  

 

ACTIVE/106960961.1      41    elected the Default Settlement Method (and, for the avoidance of doubt, the failure  to timely make such election will not constitute a Default or Event of Default);  (5) if, after the Company receives Stockholder Approval, the Company  timely elects Combination Settlement with respect to the conversion of a Note but  does not timely notify the Holder of such Note of the applicable Specified Dollar  Amount, then the Specified Dollar Amount for such conversion will be deemed to  be $1,000 per $1,000 principal amount of Notes (and, for the avoidance of doubt,  the failure to timely send such notification will not constitute a Default or Event of  Default);   (6) the Settlement Method will be subject to Sections 5.09(A)(iv)(2);  and  (7) Notwithstanding anything to the contrary, unless and until the  Company receives Stockholder Approval, the Company shall be required to elect  (and will be deemed to have elected, if the Company does not make such election  when required) Cash Settlement in respect of all conversions of Notes..  (ii) The Company’s Right to Irrevocably Fix the Settlement Method. The  Company will have the right, exercisable at its election by sending notice of such exercise  to the Holders (with a copy to the Trustee and the Conversion Agent), to (1) irrevocably  fix the Settlement Method that will apply to all conversions of Notes with a Conversion  Date that occurs on or after the date such notice is sent to Holders; or (2) irrevocably elect  Combination Settlement to apply to all conversions of Notes with a Conversion Date that  occurs on or after the date such notice is sent to Holders, and eliminate a Specified Dollar  Amount or range of Specified Dollar Amounts that will apply to such conversions,  provided, in each case, that (w) the Settlement Method(s) so elected pursuant to clause (1)  or (2) above must be a Settlement Method or Settlement Method(s), as applicable, that the  Company is then permitted to elect (for the avoidance of doubt, including pursuant to, and  subject to, the other provisions of this Section 5.03(A)); (x) no such irrevocable election  will affect any Settlement Method theretofore elected (or deemed to be elected) with  respect to any Note pursuant to this Indenture and in no event may the Company elect  Combination Settlement with a Specified Dollar Amount that is less than $1,000 per $1,000  principal amount of Notes (including pursuant to Section 8.01(G) or this Section 5.03(A));  (y) upon any such irrevocable election pursuant to clause (1) above, the Default Settlement  Method will automatically be deemed to be set to the Settlement Method so fixed; and (z)  upon any such irrevocable election pursuant to clause (2) above, the Company will, if  needed, simultaneously change the Default Settlement Method to Combination Settlement  with a Specified Dollar Amount that is consistent with such irrevocable election. Such  notice, if sent, must set forth the applicable Settlement Method and expressly state that the  election is irrevocable and applicable to all conversions of Notes with a Conversion Date  that occurs on or after the date such notice is sent to Holders. For the avoidance of doubt,  such an irrevocable election, if made, will be effective without the need to amend this  Indenture or the Notes, including pursuant to Section 8.01(G) (it being understood,  however, that the Company may nonetheless choose to execute such an amendment at its  option).  

 

ACTIVE/106960961.1      42    (iii) Requirement to Publicly Disclose the Fixed or Default Settlement Method.  If the Company changes the Default Settlement Method pursuant to the definition of such  term or irrevocably fixes the Settlement Method(s) pursuant Section 5.03(A)(ii), then the  Company will either post the Default Settlement Method or fixed Settlement Method(s),  as applicable, on its website or disclose the same in a Current Report on Form 8-K (or any  successor form) that is filed with the SEC.  (B) Conversion Consideration.  (i) Generally. Subject to Section 5.03(B)(ii) and Section 5.03(B)(iii), the type  and amount of consideration (the “Conversion Consideration”) due in respect of each  $1,000 principal amount of a Note to be converted will be as follows:  (1) [Reserved];  (2) if Cash Settlement applies to such conversion, cash in an amount  equal to the sum of the Daily Conversion Values for each VWAP Trading Day in  the Observation Period for such conversion; or  (3) if Combination Settlement applies to such conversion, consideration  consisting of (a) a number of shares of Common Stock equal to the sum of the Daily  Share Amounts for each VWAP Trading Day in the Observation Period for such  conversion; and (b) an amount of cash equal to the sum of the Daily Cash Amounts  for each VWAP Trading Day in such Observation Period.  (ii) Cash in Lieu of Fractional Shares. If Combination Settlement applies to the  conversion of any Note and the number of shares of Common Stock deliverable pursuant  to Section 5.03(B)(i) upon such conversion is not a whole number, then such number will  be rounded down to the nearest whole number and the Company will deliver, in addition  to the other consideration due upon such conversion, cash in lieu of the related fractional  share in an amount equal to the product of (1) such fraction and (2) the Daily VWAP on  the last VWAP Trading Day of the Observation Period for such conversion, in the case of  Combination Settlement.  (iii) Conversion of Multiple Notes by a Single Holder. If a Holder converts more  than one (1) Note on a single Conversion Date, then the Conversion Consideration due in  respect of such conversion will (in the case of any Global Note, to the extent permitted by,  and practicable under, the Depositary Procedures) be computed based on the total principal  amount of Notes converted on such Conversion Date by such Holder.  (iv) Notice of Calculation of Conversion Consideration. The Company will  determine the Conversion Consideration due upon the conversion of any Note promptly  following the last VWAP Trading Day of the applicable Observation Period and will  promptly thereafter send notice to the Trustee and the Conversion Agent of the same and  the calculation thereof in reasonable detail. Neither the Trustee nor the Conversion Agent  will have any duty to make any such determination.  

 

ACTIVE/106960961.1      43    (C) Delivery of the Conversion Consideration. Except as set forth in Section 5.05(D)  and Section 5.09, the Company will pay or deliver, as applicable, the Conversion Consideration  due upon the conversion of any Note to the Holder on the second (2nd) Business Day immediately  after the last VWAP Trading Day of the Observation Period for such conversion.  (D) Deemed Payment of Principal and Interest; Settlement of Accrued Interest  Notwithstanding Conversion. If a Holder converts a Note, then the Company will not adjust the  Conversion Rate to account for any accrued and unpaid interest on such Note, and, except as  provided in Section 5.02(D), the Company’s delivery of the Conversion Consideration due in  respect of such conversion will be deemed to fully satisfy and discharge the Company’s obligation  to pay the principal of, and accrued and unpaid interest, if any, on, such Note to, but excluding the  Conversion Date. As a result, except as provided in Section 5.02(D), any accrued and unpaid  interest on a converted Note will be deemed to be paid in full rather than cancelled, extinguished  or forfeited. In addition, subject to Section 5.02(D), if the Conversion Consideration for a Note  consists of both cash and shares of the Common Stock, then accrued and unpaid interest that is  deemed to be paid therewith will be deemed to be paid first out of such cash.  Section 5.04 Reserve and Status of Common Stock Issued upon Conversion.  (A) Stock Reserve. At all times when any Notes are outstanding, the Company will  reserve, out of its authorized but unissued and unreserved shares of Common Stock, a number of  shares of Common Stock sufficient to permit the conversion of all then-outstanding Notes,   assuming (x) the Company elects, upon each conversion of the Notes, a Specified Dollar Amount  of $1,000 per $1,000 principal amount of Notes; and (y) the Conversion Rate is increased by the  maximum amount pursuant to which the Conversion Rate may be increased pursuant to Section  5.07.  (B) Status of Conversion Shares; Listing. Each Conversion Share, if any, delivered  upon conversion of any Note will be a newly issued or treasury share (except that any Conversion  Share delivered by a designated financial institution pursuant to Section 5.08 need not be a newly  issued or treasury share) and will be duly and validly issued, fully paid, non-assessable, free from  preemptive rights and free of any lien or adverse claim (except to the extent of any lien or adverse  claim created by the action or inaction of the Holder of such Note or the Person to whom such  Conversion Share will be delivered). If the Common Stock is then listed on any securities  exchange, or quoted on any inter-dealer quotation system, then the Company will use  commercially reasonable efforts to cause each Conversion Share, when delivered upon conversion  of any Note, to be admitted for listing on such exchange or quotation on such system.  Section 5.05 Adjustments to the Conversion Rate.  (A) Events Requiring an Adjustment to the Conversion Rate. The Conversion Rate will  be adjusted from time to time as follows:  (i) Stock Dividends, Splits and Combinations. If the Company issues solely  shares of Common Stock as a dividend or distribution on all or substantially all shares of  the Common Stock, or if the Company effects a stock split or a stock combination of the  Common Stock (in each case excluding an issuance solely pursuant to a Common Stock  

 

ACTIVE/106960961.1      44    Change Event, as to which Section 5.09 will apply), then the Conversion Rate will be  adjusted based on the following formula:    where:  CR0 =  the Conversion Rate in effect immediately before the Open of Business on  the Ex-Dividend Date for such dividend or distribution, or immediately  before the Open of Business on the effective date of such stock split or stock  combination, as applicable;  CR1 =  the Conversion Rate in effect immediately after the Open of Business on  such Ex-Dividend Date or the Open of Business on such effective date, as  applicable;  OS0 =  the number of shares of Common Stock outstanding immediately before the  Open of Business on such Ex-Dividend Date or effective date, as applicable,  without giving effect to such dividend, distribution, stock split or stock  combination; and  OS1 =  the number of shares of Common Stock outstanding immediately after  giving effect to such dividend, distribution, stock split or stock combination.  If any dividend or distribution of the type described in this Section 5.05(A)(i) is declared,  but not so paid, then the Conversion Rate will be readjusted, effective as of the date the  Board of Directors determines not to pay such dividend or distribution, to the Conversion  Rate that would then be in effect had such dividend or distribution not been declared.  (ii) Rights, Options and Warrants. If the Company distributes, to all or  substantially all holders of Common Stock, rights, options or warrants (other than rights  issued or otherwise distributed pursuant to a stockholder rights plan, as to which the  provisions set forth in Section 5.05(A)(iii)(1) and Section 5.05(F) will apply) entitling  such holders, for a period of not more than sixty (60) calendar days after the record date of  such distribution, to subscribe for or purchase shares of Common Stock at a price per share  that is less than the average of the Last Reported Sale Prices per share of Common Stock  for the ten (10) consecutive Trading Days ending on, and including, the Trading Day  immediately before the date such distribution is announced, then the Conversion Rate will  be increased based on the following formula:    where:  CR0 =  the Conversion Rate in effect immediately before the Open of Business on  the Ex-Dividend Date for such distribution;  0 1 01 OS OS CRCR = YOS XOS CRCR 01 + + = 

 

ACTIVE/106960961.1      45    CR1 =  the Conversion Rate in effect immediately after the Open of Business on  such Ex-Dividend Date;  OS =  the number of shares of Common Stock outstanding immediately before the  Open of Business on such Ex-Dividend Date;  X =  the total number of shares of Common Stock issuable pursuant to such  rights, options or warrants; and  Y =  a number of shares of Common Stock obtained by dividing (x) the aggregate  price payable to exercise such rights, options or warrants by (y) the average  of the Last Reported Sale Prices per share of Common Stock for the ten (10)  consecutive Trading Days ending on, and including, the Trading Day  immediately before the date such distribution is announced.  To the extent that shares of Common Stock are not delivered after the expiration of such  rights, options or warrants (including as a result of such rights, options or warrants not  being exercised), the Conversion Rate will be readjusted to the Conversion Rate that would  then be in effect had the increase to the Conversion Rate for such distribution been made  on the basis of delivery of only the number of shares of Common Stock actually delivered  upon exercise of such rights, option or warrants. To the extent such rights, options or  warrants are not so distributed, the Conversion Rate will be readjusted to the Conversion  Rate that would then be in effect had the Ex-Dividend Date for the distribution of such  rights, options or warrants not occurred.  For purposes of this Section 5.05(A)(ii) and Section 5.01(C)(i)(3)(a)(I), in determining  whether any rights, options or warrants entitle holders of Common Stock to subscribe for  or purchase shares of Common Stock at a price per share that is less than the average of  the Last Reported Sale Prices per share of Common Stock for the ten (10) consecutive  Trading Days ending on, and including, the Trading Day immediately before the date of  the distribution of such rights, options or warrants is announced, and in determining the  aggregate price payable to exercise such rights, options or warrants, there will be taken into  account any consideration the Company receives for such rights, options or warrants and  any amount payable on exercise thereof, with the value of such consideration, if not cash,  to be determined by the Board of Directors.  (iii) Spin-Offs and Other Distributed Property.  (1) Distributions Other than Spin-Offs. If the Company distributes  shares of its Capital Stock, evidences of its indebtedness or other assets or property  of the Company, or rights, options or warrants to acquire Capital Stock of the  Company or other securities, to all or substantially all holders of the Common  Stock, excluding:  (u) dividends, distributions, rights, options or warrants for  which an adjustment to the Conversion Rate is required (or would be  required without regard to Section 5.05(C)) pursuant to Section 5.05(A)(i)  or Section 5.05(A)(ii);  

 

ACTIVE/106960961.1      46    (v) dividends or distributions paid exclusively in cash for which  an adjustment to the Conversion Rate is required (or would be required  without regard to Section 5.05(C)) pursuant to Section 5.05(A)(iv);  (w) rights issued or otherwise distributed pursuant to a  stockholder rights plan, except to the extent provided in Section 5.05(F);  (x) Spin-Offs for which an adjustment to the Conversion Rate is  required (or would be required without regard to Section 5.05(C)) pursuant  to Section 5.05(A)(iii)(2);   (y) a distribution solely pursuant to a tender offer or exchange  offer for shares of Common Stock, as to which Section 5.05(A)(v) will  apply; and  (z) a distribution solely pursuant to a Common Stock Change  Event, as to which Section 5.09 will apply, then the Conversion Rate will  be increased based on the following formula:    where:  CR0 =  the Conversion Rate in effect immediately before the Open of Business on  the Ex-Dividend Date for such distribution;  CR1 =  the Conversion Rate in effect immediately after the Open of Business on  such Ex-Dividend Date;  SP =  the average of the Last Reported Sale Prices per share of Common Stock  for the ten (10) consecutive Trading Days ending on, and including, the  Trading Day immediately before such Ex-Dividend Date; and  FMV =  the fair market value (as determined by the Board of Directors), as of such  Ex-Dividend Date, of the shares of Capital Stock, evidences of  indebtedness, assets, property, rights, options or warrants distributed per  share of Common Stock pursuant to such distribution;  provided, however, that if FMV is equal to or greater than SP, then, in lieu of the foregoing  adjustment to the Conversion Rate, each Holder will receive, for each $1,000 principal  amount of Notes held by such Holder on the record date for such distribution, at the same  time and on the same terms as holders of Common Stock, and without having to convert  its Notes, the amount and kind of shares of Capital Stock, evidences of indebtedness, assets,  property, rights, options or warrants that such Holder would have received if such Holder  had owned, on such record date, a number of shares of Common Stock equal to the  Conversion Rate in effect on such record date.  FMVSP SP CRCR − = 01 

 

ACTIVE/106960961.1      47    To the extent such distribution is not so paid or made, the Conversion Rate will be  readjusted to the Conversion Rate that would then be in effect had the adjustment been  made on the basis of only the distribution, if any, actually made or paid.  For purposes of this Section 5.05(A)(iii)(1) (and subject to Section 5.05(F)), rights, options  or warrants distributed by the Company to all holders of the Common Stock entitling them  to subscribe for or purchase shares of the Company’s Capital Stock, including Common  Stock (either initially or under certain circumstances), which rights, options or warrants,  until the occurrence of a specified event or events (“Trigger Event”): (x) are deemed to  be transferred with such Common Stock; (y) are not exercisable; and (z) are also issued in  respect of future issuances of Common Stock, will be deemed not to have been distributed  for purposes of this Section 5.05(A)(iii)(1) (and no adjustment to the Conversion Rate  under this Section 5.05(A)(iii)(1) will be required) until the occurrence of the earliest  Trigger Event, whereupon such rights, options or warrants will be deemed to have been  distributed and an appropriate adjustment (if any is required) to the Conversion Rate will  be made pursuant to this Section 5.05(A)(iii)(1). If any such right, option or warrant,  including any such existing rights, options or warrants distributed before the Issue Date,  are subject to events, upon the occurrence of which such rights, options or warrants become  exercisable to purchase different securities, evidences of indebtedness or other assets, then  the date of the occurrence of any and each such event will be deemed to be the date of  distribution and Ex-Dividend Date with respect to new rights, options or warrants with  such rights (in which case, the existing rights, options or warrants will be deemed to  terminate and expire on such date without exercise by any of the holders thereof). In  addition, in the event of any distribution (or deemed distribution) of rights, options or  warrants, or any Trigger Event or other event (of the type described in the immediately  preceding sentence) with respect thereto that was counted for purposes of calculating a  distribution amount for which an adjustment to the Conversion Rate pursuant to this  Section 5.05(A)(iii)(1) was made, (x) in the case of any such rights, options or warrants  that have been redeemed or purchased without exercise by any holders thereof, upon such  final redemption or purchase (I) the Conversion Rate will be readjusted as if such rights,  options or warrants had not been issued; and (II) the Conversion Rate will then again be  readjusted to give effect to such distribution, deemed distribution or Trigger Event, as the  case may be, as though it were a cash distribution, equal to the per share redemption or  purchase price received by a holder or holders of Common Stock with respect to such  rights, options or warrants (assuming such holder had retained such rights, options or  warrants), made to all holders of Common Stock as of the date of such redemption or  purchase; and (y) in the case of such rights, options or warrants that have expired or been  terminated without exercise by any holders thereof, the Conversion Rate will be readjusted  as if such rights, options and warrants had not been issued.  (2) Spin-Offs. If the Company distributes or dividends shares of Capital  Stock of any class or series, or similar equity interest, of or relating to an Affiliate,  a Subsidiary or other business unit of the Company to all or substantially all holders  of the Common Stock (other than solely pursuant to a Common Stock Change  Event, as to which Section 5.09 will apply), and such Capital Stock or equity  interest is listed or quoted (or will be listed or quoted upon the consummation of  

 

ACTIVE/106960961.1      48    the transaction) on a U.S. national securities exchange (a “Spin-Off”), then the  Conversion Rate will be increased based on the following formula:    where:  CR0  =  the Conversion Rate in effect immediately before the Close of Business on  the last Trading Day of the Spin-Off Valuation Period for such Spin-Off;  CR1  =  the Conversion Rate in effect immediately after the Close of Business on  the last Trading Day of the Spin-Off Valuation Period;  FMV =  the product of (x) the average of the Last Reported Sale Prices per share or  unit of the Capital Stock or equity interests distributed in such Spin-Off over  the ten (10) consecutive Trading Day period (the “Spin-Off Valuation  Period”) beginning on, and including, such Ex-Dividend Date (such  average to be determined as if references to Common Stock in the  definitions of Last Reported Sale Price, Trading Day and Market Disruption  Event were instead references to such Capital Stock or equity interests); and  (y) the number of shares or units of such Capital Stock or equity interests  distributed per share of Common Stock in such Spin-Off; and  SP    =  the average of the Last Reported Sale Prices per share of Common Stock  for each Trading Day in the Spin-Off Valuation Period.  Notwithstanding anything to the contrary in this Section 5.05(A)(iii)(2), if any VWAP  Trading Day of the Observation Period for a Note occurs during the Spin-Off Valuation  Period for such Spin-Off, then, solely for purposes of determining the Conversion Rate for  such VWAP Trading Day for such conversion, such Spin-Off Valuation Period will be  deemed to consist of the Trading Days occurring in the period from, and including, the Ex- Dividend Date for such Spin-Off to, and including, such VWAP Trading Day.  To the extent any dividend or distribution of the type set forth in this Section 5.05(A)(iii)(2)  is declared but not made or paid, the Conversion Rate will be readjusted to the Conversion  Rate that would then be in effect had the adjustment been made on the basis of only the  dividend or distribution, if any, actually made or paid.  (iv) Cash Dividends or Distributions. If any cash dividend or distribution is  made to all or substantially all holders of Common Stock, then the Conversion Rate will  be increased based on the following formula:  DSP SP CRCR − = 01   where:  SP SPFMV CRCR + = 01 

 

ACTIVE/106960961.1      49    CR0 =  the Conversion Rate in effect immediately before the Open of Business on  the Ex-Dividend Date for such dividend or distribution;  CR1 =  the Conversion Rate in effect immediately after the Open of Business on  such Ex-Dividend Date;  SP =  the Last Reported Sale Price per share of Common Stock on the Trading  Day immediately before such Ex-Dividend Date; and  D =  the cash amount distributed per share of Common Stock in such dividend  or distribution;  provided, however, that if D is equal to or greater than SP, then, in lieu of the foregoing  adjustment to the Conversion Rate, each Holder will receive, for each $1,000 principal  amount of Notes held by such Holder on the record date for such dividend or distribution,  at the same time and on the same terms as holders of Common Stock, and without having  to convert its Notes, the amount of cash that such Holder would have received if such  Holder had owned, on such record date, a number of shares of Common Stock equal to the  Conversion Rate in effect on such record date.  To the extent such dividend or distribution is declared but not made or paid, the Conversion  Rate will be readjusted to the Conversion Rate that would then be in effect had the  adjustment been made on the basis of only the dividend or distribution, if any, actually  made or paid.  (v) Tender Offers or Exchange Offers. If the Company or any of its Subsidiaries  makes a payment in respect of a tender offer or exchange offer for shares of Common Stock  (other than solely pursuant to an odd-lot tender offer pursuant to Rule 13e-4(h)(5) under  the Exchange Act), and the value (determined as of the Expiration Time by the Board of  Directors) of the cash and other consideration paid per share of Common Stock in such  tender or exchange offer exceeds the Last Reported Sale Price per share of Common Stock  on the Trading Day immediately after the last date (the “Expiration Date”) on which  tenders or exchanges may be made pursuant to such tender or exchange offer (as it may be  amended), then the Conversion Rate will be increased based on the following formula:  ( ) 0 1 01 OSSP OSSPAC CRCR  + =   where:  CR0 =  the Conversion Rate in effect immediately before the Close of Business on  the last Trading Day of the Tender/Exchange Offer Valuation Period for  such tender or exchange offer;  CR1 =  the Conversion Rate in effect immediately after the Close of Business on  the last Trading Day of the Tender/Exchange Offer Valuation Period;  

 

ACTIVE/106960961.1      50    AC =  the aggregate value (determined as of the time (the “Expiration Time”)  such tender or exchange offer expires by the Board of Directors) of all cash  and other consideration paid for shares of Common Stock purchased or  exchanged in such tender or exchange offer;  OS0 =  the number of shares of Common Stock outstanding immediately before the  Expiration Time (before giving effect to the purchase of all shares of  Common Stock accepted for purchase or exchange in such tender or  exchange offer);  OS1 =  the number of shares of Common Stock outstanding immediately after the  Expiration Time (excluding all shares of Common Stock accepted for  purchase or exchange in such tender or exchange offer); and  SP =  the average of the Last Reported Sale Prices per of Common Stock over the  ten (10) consecutive Trading Day period (the “Tender/Exchange Offer  Valuation Period”) beginning on, and including, the Trading Day  immediately after the Expiration Date;  provided, however, that the Conversion Rate will in no event be adjusted down pursuant to  this Section 5.05(A)(v), except to the extent provided in the immediately following  paragraph. Notwithstanding anything to the contrary in this Section 5.05(A)(v), if any  VWAP Trading Day of the Observation Period for a Note occurs during the  Tender/Exchange Offer Valuation Period for such tender or exchange offer, then, solely  for purposes of determining the Conversion Rate for such VWAP Trading Day for such  conversion, such Tender/Exchange Offer Valuation Period will be deemed to consist of the  Trading Days occurring in the period from, and including, the Trading Day immediately  after the Expiration Date for such tender or exchange offer to, and including, such VWAP  Trading Day.  To the extent such tender or exchange offer is announced but not consummated (including  as a result of the Company being precluded from consummating such tender or exchange  offer under applicable law), or any purchases or exchanges of shares of Common Stock in  such tender or exchange offer are rescinded, the Conversion Rate will be readjusted to the  Conversion Rate that would then be in effect had the adjustment been made on the basis of  only the purchases or exchanges of shares of Common Stock, if any, actually made, and  not rescinded, in such tender or exchange offer.  (B) No Adjustments in Certain Cases.  (i) Where Holders Participate in the Transaction or Event Without  Conversion. Notwithstanding anything to the contrary in Section 5.05(A), the Company  will not be obligated to adjust the Conversion Rate on account of a transaction or other  event otherwise requiring an adjustment pursuant to Section 5.05(A) (other than a stock  split or combination of the type set forth in Section 5.05(A)(i) or a tender or exchange offer  of the type set forth in Section 5.05(A)(v)) if each Holder participates, at the same time  and on the same terms as holders of Common Stock, and solely by virtue of being a Holder  

 

ACTIVE/106960961.1      51    of Notes, in such transaction or event without having to convert such Holder’s Notes and  as if such Holder held a number of shares of Common Stock equal to the product of (i) the  Conversion Rate in effect on the related record date; and (ii) the aggregate principal amount  (expressed in thousands) of Notes held by such Holder on such date.  (ii) Certain Events. The Company will not be required to adjust the Conversion  Rate except as provided in Section 5.05 or Section 5.07. Without limiting the foregoing,  the Company will not be obligated to adjust the Conversion Rate on account of:  (1) except as otherwise provided in Section 5.05, the sale of shares of  Common Stock for a purchase price that is less than the market price per share of  Common Stock or less than the Conversion Price;  (2) the issuance of any shares of Common Stock pursuant to any present  or future plan providing for the reinvestment of dividends or interest payable on the  Company’s securities and the investment of additional optional amounts in shares  of Common Stock under any such plan;  (3) the issuance of any shares of Common Stock or options or rights to  purchase shares of Common Stock pursuant to any present or future employee,  director or consultant benefit plan or program of, or assumed by, the Company or  any of its Subsidiaries;  (4) the issuance of any shares of Common Stock pursuant to any option,  warrant, right or convertible or exchangeable security of the Company outstanding  as of the Issue Date;  (5) solely a change in the par value of the Common Stock; or  (6) accrued and unpaid interest on the Notes.  (C) If an adjustment to the Conversion Rate otherwise required by this Article 5 would  result in a change of less than one percent (1%) to the Conversion Rate, then, notwithstanding  anything to the contrary in this Article 5, the Company may, at its election, defer such adjustment,  except that all such deferred adjustments must be given effect immediately upon the earliest of the  following: (i) when all such deferred adjustments would result in a change of at least one percent  (1%) to the Conversion Rate; (ii) the Conversion Date of, or any VWAP Trading Day of an  Observation Period for, any Note; (iii) the date a Fundamental Change or Make-Whole  Fundamental Change occurs; and (iv) August 1, 2025.  (D) Adjustments Not Yet Effective. Notwithstanding anything to the contrary in this  Indenture or the Notes, if:  (i) a Note is to be converted and Combination Settlement applies to such  conversion;  (ii) the record date, effective date or Expiration Time for any event that requires  an adjustment to the Conversion Rate pursuant to Section 5.05(A) has occurred or on or  

 

ACTIVE/106960961.1      52    before any VWAP Trading Day in the Observation Period for such conversion, but an  adjustment to the Conversion Rate for such event has not yet become effective as of such  Conversion Date or VWAP Trading Day, as applicable;  (iii) the Conversion Consideration in respect of such VWAP Trading Day  includes any whole or fractional shares of Common Stock; and  (iv) such shares are not entitled to participate in such event (because they were  not held on the related record date or otherwise),   then, solely for purposes of such conversion, the Company will, without duplication, give effect  to such adjustment on such VWAP Trading Day. In such case, if the date on which the Company  is otherwise required to deliver the consideration due upon such conversion is before the first date  on which the amount of such adjustment can be determined, then the Company will delay the  settlement of such conversion until the second (2nd) Business Day after such first date.  (E) Conversion Rate Adjustments where Converting Holders Participate in the  Relevant Transaction or Event. Notwithstanding anything to the contrary in this Indenture or the  Notes, if:  (i) a Conversion Rate adjustment for any dividend or distribution becomes  effective on any Ex-Dividend Date pursuant to Section 5.05(A);  (ii) a Note is to be converted and Combination Settlement applies;  (iii) any VWAP Trading Day in the Observation Period for such conversion  occurs on or after such Ex-Dividend Date and on or before the related record date;  (iv) the Conversion Consideration due in respect of such VWAP Trading Day   includes any whole or fractional shares of Common Stock based on a Conversion Rate that  is adjusted for such dividend or distribution; and  (v) such shares would be entitled to participate in such dividend or distribution  (including pursuant to Section 5.02(C)),   then the Conversion Rate adjustment relating to such Ex-Dividend Date will be made for such  conversion in respect of such VWAP Trading Day, but the shares of Common Stock issuable with  respect to such VWAP Trading Day based on such adjusted Conversion Rate will not be entitled  to participate in such dividend or distribution.  (F) Stockholder Rights Plans. If the Company has a stockholder rights plan in effect  upon the conversion of any Notes into shares of Common Stock, the person to whom such shares  are to be delivered upon conversion will receive, in addition to any shares of Common Stock  received in connection with such conversion, the rights under the stockholder rights plan; provided,  however, that if, prior to any conversion of Notes, the rights pursuant to any such stockholder  rights plan have separated from the shares of Common Stock in accordance with the provisions of  such stockholder rights plan, then the Conversion Rate will be adjusted pursuant to Section  5.05(A)(iii)(1) at the time of separation as if the Company distributed to all or substantially all  

 

ACTIVE/106960961.1      53    holders of Common Stock, shares of its Capital Stock, evidences of indebtedness, assets, property,  rights, options or warrants of the type set forth in such section, subject to readjustment in  accordance with such section.  (G) Limitation on Effecting Transactions Resulting in Certain Adjustments. The  Company will not engage in or be a party to any transaction or event that would require the  Conversion Rate to be adjusted pursuant to Section 5.05(A) or Section 5.07 to an amount that  would result in the Conversion Price per share of Common Stock being less than the par value per  share of Common Stock.  (H) Equitable Adjustments to Prices. Whenever any provision of this Indenture requires  the Company to calculate the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion  Values, the Daily Cash Amounts or the Daily Share Amounts over a span of multiple days  (including over an Observation Period and the period, if any, for determining the Stock Price), the  Company will, acting in good faith and in a commercially reasonable manner, make appropriate  adjustments, if any, to each to account for any adjustment to the Conversion Rate that becomes  effective, or any event requiring an adjustment to the Conversion Rate where the Ex-Dividend  Date, effective date or Expiration Date of the event occurs, at any time during the period when the  Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values, the Daily Cash  Amounts or the Daily Share Amounts are to be calculated.  (I) Calculation of Number of Outstanding Shares of Common Stock. For purposes of  Section 5.05(A), the number of shares of Common Stock outstanding at any time will (i) include  shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common  Stock; and (ii) exclude shares of Common Stock held in the Company’s treasury (unless the  Company pays any dividend or makes any distribution on shares of Common Stock held in its  treasury).  (J) Calculations. All calculations with respect to the Conversion Rate and adjustments  thereto will be made to the nearest 1/10,000th of a share of Common Stock (with 5/100,000ths  rounded upward), as applicable.  (K) Notice of Conversion Rate Adjustments. Upon the effectiveness of any adjustment  to the Conversion Rate pursuant to Section 5.05(A), the Company will promptly send notice to  the Holders, the Trustee and the Conversion Agent containing (i) a brief description of the  transaction or other event on account of which such adjustment was made; (ii) the Conversion Rate  in effect immediately after such adjustment; and (iii) the effective time of such adjustment.  Section 5.06 Voluntary Adjustments.  (A) Generally. To the extent permitted by law and applicable stock exchange rules, the  Company, from time to time, may (but is not required to) increase the Conversion Rate by any  amount if (i) the Board of Directors determines that such increase is either (x) in the best interest  of the Company; or (y) advisable to avoid or diminish any income tax imposed on holders of  Common Stock or rights to purchase Common Stock as a result of any dividend or distribution of  shares (or rights to acquire shares) of Common Stock or any similar event; (ii) such increase is in  

 

ACTIVE/106960961.1      54    effect for a period of at least twenty (20) Business Days; and (iii) such increase is irrevocable  during such period.  (B) Notice of Voluntary Increases. If the Board of Directors determines to increase the  Conversion Rate pursuant to this Section 5.06, then, at least fifteen (15) Business Days before  such increase, the Company will send notice to each Holder of such increase, the amount thereof  and the period during which such increase will be in effect.  Section 5.07 Adjustments to the Conversion Rate in Connection with a Make-Whole  Fundamental Change.  (A) Generally. If a Make-Whole Fundamental Change occurs and the Conversion Date  for the conversion of a Note occurs during the related Make-Whole Fundamental Change  Conversion Period, then, subject to this Section 5.07, the Conversion Rate applicable to such  conversion will be increased by a number of shares (the “Additional Shares”) set forth in the table  below corresponding (after interpolation as provided in, and subject to, the provisions below) to  the effective date and the Stock Price of such Make-Whole Fundamental Change:   Stock Price  Effective Date $15.16 $18.00 $20.85 $25.00 $30.00 $35.00 $45.00 $55.00 $65.00 $80.00 $95.00  February 5, 2021 ........... 17.9899 13.5047 9.9942 6.7309 4.4136 3.0155 1.5425 0.8451 0.4807 0.2031 0.0901  February 1, 2022 ............. 17.9899 13.4936 9.7817 6.3949 4.0502 2.6726 1.2825 0.6614 0.3531 0.1307 0.0511  February 1, 2023 ............. 17.9899 13.1602 9.2540 5.7789 3.4636 2.1669 0.9402 0.4396 0.2100 0.0594 0.0174  February 1, 2024 ............. 17.9899 12.3436 8.2418 4.7469 2.5769 1.4612 0.5291 0.2069 0.0792 0.0057 0.0048  February 1, 2025 ............. 17.9899 10.7658 6.4044 3.0429 1.2902 0.5726 0.1380 0.0378 0.0054 0.0029 0.0024  February 1, 2026 ............. 17.9899 7.5825 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000    If such effective date or Stock Price is not set forth in the table above, then:  (i) if such Stock Price is between two Stock Prices in the table above or the  effective date is between two dates in the table above, then the number of Additional Shares  will be determined by straight-line interpolation between the numbers of Additional Shares  set forth for the higher and lower Stock Prices in the table above and the earlier and later  dates in the table above, as applicable, based on a 365- or 366-day year, as applicable; and  (ii) if the Stock Price is greater than $95.00 (subject to adjustment in the same  manner as the Stock Prices set forth in the column headings of the table above are adjusted  pursuant to Section 5.07(B)), or less than $15.16 (subject to adjustment in the same  manner), per share, then no Additional Shares will be added to the Conversion Rate.  Notwithstanding anything to the contrary in this Indenture or the Notes, in no event will  the Conversion Rate be increased to an amount that exceeds 65.9630 shares of Common Stock per  $1,000 principal amount of Notes, which amount is subject to adjustment in the same manner as,  and at the same time and for the same events for which, the Conversion Rate is required to be  adjusted pursuant to Section 5.05(A).  (B) Adjustment of Stock Prices and Additional Shares. The Stock Prices in the first row  (i.e., the column headers) of the table set forth in Section 5.07(A) will be adjusted in the same  

 

ACTIVE/106960961.1      55    manner as, and at the same time and for the same events for which, the Conversion Price is adjusted  as a result of the operation of Section 5.05(A). The numbers of Additional Shares in the table set  forth in Section 5.07(A) will be adjusted in the same manner as, and at the same time and for the  same events for which, the Conversion Rate is adjusted pursuant to Section 5.07(A).  (C) Notice of the Occurrence of a Make-Whole Fundamental Change. The Company  will notify the Holders, the Trustee and the Conversion Agent of each Make-Whole Fundamental  Change occurring pursuant to clause (A) of the definition thereof in accordance with Section  5.01(C)(i)(3)(b).  (D) Settlement of Cash Make-Whole Fundamental Changes. For the avoidance of  doubt, if holders of Common Stock receive solely cash in a Make-Whole Fundamental Change,  then, pursuant to Section 5.09, conversions of Notes will thereafter be settled no later than the  second (2nd) Business Day after the relevant Conversion Date.  Section 5.08 Exchange in Lieu of Conversion.  Notwithstanding anything to the contrary in this Article 5, and subject to the terms of this  Section 5.08, if a Note is submitted for conversion, the Company may elect to arrange to have  such Note exchanged in lieu of conversion by a financial institution designated by the Company.  To make such election, the Company must send notice of such election to the Holder of such Note,  the Trustee and the Conversion Agent before the Close of Business on the Business Day  immediately following the Conversion Date for such Note. If the Company has made such election,  then:  (A) no later than the Business Day immediately following such Conversion Date, the  Company must deliver (or cause the Conversion Agent to deliver) such Note, together with  delivery instructions for the Conversion Consideration due upon such conversion (including wire  instructions, if applicable), to a financial institution designated by the Company that has agreed to  deliver such Conversion Consideration in the manner and at the time the Company would have  had to deliver the same pursuant to this Article 5;  (B) if such Note is a Global Note, then (i) such designated institution will send written  confirmation to the Conversion Agent promptly after wiring the cash Conversion Consideration,  if any, and delivering any other Conversion Consideration, due upon such conversion to the Holder  of such Note; and (ii) the Conversion Agent will as soon as reasonably practicable thereafter  contact such Holder’s custodian with the Depositary to confirm receipt of the same; and  (C) such Note will not cease to be outstanding by reason of such exchange in lieu of  conversion;  provided, however, that if such financial institution does not accept such Note or fails to timely  deliver such Conversion Consideration, then the Company will be responsible for delivering such  Conversion Consideration in the manner and at the time provided in this Article 5 as if the  Company had not elected to make an exchange in lieu of conversion.  Section 5.09 Effect of Common Stock Change Event.  

 

ACTIVE/106960961.1      56    (A) Generally. If there occurs any:  (i) recapitalization, reclassification or change of the Common Stock (other than  (x) changes solely resulting from a subdivision or combination of the Common Stock, (y)  a change only in par value or from par value to no par value or no par value to par value  and (z) stock splits and stock combinations that do not involve the issuance of any other  series or class of securities);  (ii) consolidation, merger, combination or binding or statutory share exchange  involving the Company;  (iii) sale, lease or other transfer of all or substantially all of the assets of the  Company and its Subsidiaries, taken as a whole, to any Person; or  (iv) other similar event, and, as a result of which, the Common Stock is  converted into, or is exchanged for, or represents solely the right to receive, other securities,  cash or other property, or any combination of the foregoing (such an event, a “Common  Stock Change Event,” and such other securities, cash or property, the “Reference  Property,” and the amount and kind of Reference Property that a holder of one (1) share  of Common Stock would be entitled to receive on account of such Common Stock Change  Event (without giving effect to any arrangement not to issue or deliver a fractional portion  of any security or other property), a “Reference Property Unit”), then, notwithstanding  anything to the contrary in this Indenture or the Notes,  (1) from and after the effective time of such Common Stock Change  Event, (I) the Conversion Consideration due upon conversion of any Note, and the  conditions to any such conversion, will be determined in the same manner as if each  reference to any number of shares of Common Stock in this Article 5 (or in any  related definitions) were instead a reference to the same number of Reference  Property Units; and (II) for purposes of the definition of “Fundamental Change”  and “Make-Whole Fundamental Change,” the terms “Common Stock” and  “common equity” will be deemed to mean the common equity (including depositary  receipts representing common equity), if any, forming part of such Reference  Property;  (2) if such Reference Property Unit consists entirely of cash, then  (i) each conversion of any Note with a Conversion Date that occurs on or after the  effective date of such Common Stock Change Event will be settled entirely in cash  in an amount, per $1,000 principal amount of such Note being converted, equal to  the product of (x) the Conversion Rate in effect on such Conversion Date  (including, for the avoidance of doubt, any increase thereto pursuant to Section  5.07, if applicable; and (y) the amount of cash constituting such Reference Property  Unit; and (ii) the Company will settle each such conversion no later than the second  (2nd) Business Day after the relevant Conversion Date; and  (3) for these purposes, (I) the Daily VWAP of any Reference Property  Unit or portion thereof that consists of a class of common equity securities will be  

 

ACTIVE/106960961.1      57    determined by reference to the definition of “Daily VWAP,” substituting, if  applicable, the Bloomberg page for such class of securities in such definition; and  (II) the Daily VWAP of any Reference Property Unit or portion thereof that does  not consist of a class of common equity securities, and the Last Reported Sale Price  of any Reference Property Unit or portion thereof that does not consist of a class of  securities, will be the fair value of such Reference Property Unit or portion thereof,  as applicable, determined in good faith and in a commercially reasonable manner  by the Company (or, in the case of cash denominated in U.S. dollars, the face  amount thereof).  If the Reference Property consists of more than a single type of consideration to be  determined based in part upon any form of stockholder election, then the composition of the  Reference Property Unit will be deemed to be the weighted average of the types and amounts of  consideration actually received, per share of Common Stock, by the holders of Common Stock.  The Company will notify Holders of such weighted average as soon as practicable after such  determination is made.  At or before the effective time of such Common Stock Change Event, the Company and  the resulting, surviving or transferee Person (if not the Company) of such Common Stock Change  Event (the “Successor Person”) will execute and deliver to the Trustee a supplemental indenture  pursuant to Section 8.01(F), which supplemental indenture will (x) provide for subsequent  conversions of Notes in the manner set forth in this Section 5.09; (y) provide for subsequent  adjustments to the Conversion Rate pursuant to Section 5.07(A)in a manner consistent with this  Section 5.09; and (z) contain such other provisions as the Company determines in good faith and  in a commercially reasonable manner are appropriate to preserve the economic interests of the  Holders and to give effect to the provisions of this Section 5.09(A). If the Reference Property  includes shares of stock or other securities or assets of a Person other than the Successor Person,  then such other Person will also execute such supplemental indenture and such supplemental  indenture will contain such additional provisions the Company reasonably determines are  appropriate to preserve the economic interests of the Holders.  (B) Notice of Common Stock Change Events. The Company will provide notice of each  Common Stock Change Event in the manner provided in Section 5.01(C)(i)(3)(b).  (C) Compliance Covenant. The Company will not become a party to any Common  Stock Change Event unless its terms are consistent with this Section 5.09.  Section 5.10 Conversion Limitation.  (A) Notwithstanding anything to the contrary in this Indenture or the Notes, but subject  to Sections 5.10(B) and (C), no beneficial owner of Notes will be entitled to receive shares of  Common Stock upon conversion of Notes and any delivery of shares of Common Stock upon  conversion of such Notes shall be void and of no effect, (i) if the beneficial owner of such Notes  is an Acquiring Person (for the avoidance of doubt, regardless of whether the Rights Agreement  is then in effect) or (ii) to the extent (but only to the extent) that such receipt or delivery would  cause such beneficial owner to become an Acquiring Person (for the avoidance of doubt, regardless  of whether the Rights Agreement is then in effect)) unless, in either case, such beneficial owner  

 

ACTIVE/106960961.1      58    has received prior approval of the Company’s Board of Directors (the “Section 382 Conversion  Blocker”). If any delivery of shares of Common Stock owed to a beneficial owner of Notes upon  conversion of Notes is not made, in whole or in part, as a result of the Section 382 Conversion  Blocker, the Company’s obligation to make such delivery shall not be extinguished and the  Company shall deliver such shares as promptly as practicable after such beneficial owner provides  written confirmation to the Company that: (i) it is not an Acquiring Person (for the avoidance of  doubt regardless of whether the Rights Agreement is then in effect)) and (ii) such delivery would  not result in such beneficial owner being an Acquiring Person (for the avoidance of doubt  regardless of whether the Rights Agreement is then in effect).   In exercising its right of conversion, such beneficial owner will be deemed to have  represented to the Company that the restrictions described above in clauses (i) and (ii) of the  preceding paragraph do not and will not apply to such beneficial owner as a result of such  conversion assuming the Company elects to settle the conversion with the maximum number of  shares of Common Stock permitted by this Indenture, which, for the avoidance of doubt, will  represent zero shares of Common Stock unless and until the Company has obtained Stockholder  Approval.   For the avoidance of doubt, Section 382 Conversion Blocker will not affect the Company’s  ability to elect any Settlement Method in accordance with, and permitted by, the Indenture. For  the avoidance of doubt, the Section 382 Conversion Blocker shall apply to any exercise of a  conversion right by a holder of Notes, but in the case of Global Notes, only to the extent that such  restrictions apply to the owners of beneficial interests in such Global Notes other than participants  of the Depositary who hold beneficial interests in the Notes on behalf of other persons.   (B) Upon the occurrence of a Common Stock Change Event, (i) the ownership  limitation and the provisions described in this Section 5.10 will thereafter apply as if each reference  to “Common Stock” in this Section 5.10 were instead a reference to the common equity (including  depositary receipts representing common equity), if any, forming part of the Reference Property  of such Common Stock Change Event; and (ii) if such Reference Property includes no such  common equity or depositary receipts, then the ownership limitation and the provisions described  in this Section 5.10 will thereafter cease to apply.   (C) The Company’s Board of Directors will have the discretion to approve transfers  that would otherwise be restricted by a conversion that would otherwise be restricted by the Section  382 Conversion Blocker.  Section 5.11 Conversion Agent.  Neither the Trustee nor the Conversion Agent shall at  any time be under any duty or responsibility to any Holder to determine the Conversion Rate (or  any adjustment thereto) or whether any facts exist that may require any adjustment (including any  increase) of the Conversion Rate, or with respect to the nature or  extent or calculation of any such  adjustment when made, or with respect to the method employed, or herein or in any supplemental  indenture provided to be employed, in making the same.  The Trustee the Conversion Agent shall  not be accountable with respect to the validity or value (or the kind or amount) of any shares of  Common Stock, or of any securities, property or cash that may at any time be issued or delivered  upon the conversion of any Note; and the Trustee and the Conversion Agent make no  representations with respect thereto.  Neither the Trustee nor the Conversion Agent shall be  

 

ACTIVE/106960961.1      59    responsible for any failure of the Company to issue, transfer or deliver any shares of Common  Stock or stock certificates or other securities or property or cash upon the surrender of any Note  for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of  the Company contained in this Article. Without limiting the generality of the foregoing, neither  the Trustee nor the Conversion Agent shall be under any responsibility to determine the correctness  of any provisions contained in any supplemental indenture entered into relating either to the kind  or amount of shares of stock or securities or property (including cash) receivable by Holders upon  the conversion of their Notes after any event referred to herein or to any adjustment to be made  with respect thereto, but, may accept (without any independent investigation) as conclusive  evidence of the correctness of any such provisions, and shall be protected in relying upon, the  Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the  execution of any such supplemental indenture) with respect thereto.  Neither the Trustee nor the  Conversion Agent shall be responsible for determining whether any event has occurred that makes  the Notes eligible for conversion or no longer eligible therefor until the Company has delivered to  the Trustee and the Conversion Agent the notices with respect to the commencement or  termination of such conversion rights, on which notices the Trustee and the Conversion Agent may  conclusively rely, and the Company agrees to deliver such notices to the Trustee and the  Conversion Agent immediately after the occurrence of any such event or at such other times as  shall be provided for in this Article 5.  ARTICLE 6  Successors  Section 6.01 When the Company May Merge, Etc.  (A) Generally. The Company will not consolidate with or merge with or into, or  (directly, or indirectly through one or more of the Company’s Subsidiaries) sell, lease or otherwise  transfer, in one transaction or a series of transactions, all or substantially all of the assets of the  Company and its Subsidiaries, taken as a whole, to another Person (a “Business Combination  Event”), unless:  (i) the resulting, surviving or transferee Person either (x) is the Company or (y)  if not the Company, is a corporation (the “Successor Corporation”) duly organized and  existing under the laws of the United States of America, any State thereof or the District of  Columbia that expressly assumes (by executing and delivering to the Trustee, at or before  the effective time of such Business Combination Event, a supplemental indenture pursuant  to Section 8.01(E)) all of the Company’s obligations under this Indenture and the Notes;  and  (ii) immediately after giving effect to such Business Combination Event, no  Default or Event of Default will have occurred and be continuing.  (B) Delivery of Officer’s Certificate and Opinion of Counsel to the Trustee. Before the  effective time of any Business Combination Event, the Company will deliver to the Trustee an  Officer’s Certificate and Opinion of Counsel, each stating that (i) such Business Combination  Event (and, if applicable, the related supplemental indenture) comply with Section 6.01(A) and  the terms of this Indenture; and (ii) all conditions precedent to such Business Combination Event  provided in this Indenture have been satisfied.  

 

ACTIVE/106960961.1      60    Section 6.02 Successor Corporation Substituted.  At the effective time of any Business Combination Event that complies with Section 6.01,  the Successor Corporation (if not the Company) will succeed to, and may exercise every right and  power of, the Company under this Indenture and the Notes with the same effect as if such  Successor Corporation had been named as the Company in this Indenture and the Notes, and,  except in the case of a lease, the predecessor Company will be discharged from its obligations  under this Indenture and the Notes.  ARTICLE 7  Defaults and Remedies  Section 7.01 Events of Default.  (A) Definition of Events of Default. “Event of Default” means the occurrence of any  of the following:  (i) a default in the payment when due (whether at maturity, Repurchase Upon  Fundamental Change or otherwise) of the principal of, or the Fundamental Change  Repurchase Price for, any Note;  (ii) a default for thirty (30) consecutive days in the payment when due of  interest on any Note;  (iii) the Company’s failure to deliver when required by this Indenture (x) a  Fundamental Change Notice or (y) a notice pursuant to Section 5.01(C)(i)(3), if (in the  case of any notice other than a notice pursuant to Section 5.01(C)(i)(3)(a)) such failure is  not cured within three (3) Business Days after its occurrence;  (iv) a default in the Company’s obligation to convert a Note in accordance with  Article 5 upon the exercise of the conversion right with respect thereto, if such default is  not cured within three (3) days after its occurrence;  (v) a default in the Company’s obligations under Article 6;  (vi) a default in any of the Company’s obligations or agreements under this  Indenture or the Notes (other than a default set forth in clause (i), (ii), (iii), (iv) or (v) of  this Section 7.01(A)) where such default is not cured or waived within sixty (60) days after  notice to the Company by the Trustee, or to the Company and the Trustee by Holders of at  least twenty five percent (25%) of the aggregate principal amount of Notes then  outstanding, which notice must specify such default, demand that it be remedied and state  that such notice is a “Notice of Default”;  (vii) a default by the Company or any of its Subsidiaries with respect to any one  or more mortgages, agreements or other instruments under which there is outstanding, or  by which there is secured or evidenced, any indebtedness for money borrowed of at least  fifteen million dollars ($15,000,000) (or its foreign currency equivalent) in the aggregate  of the Company or any of its Subsidiaries, whether such indebtedness exists as of the Issue  Date or is thereafter created, where such default:  

 

ACTIVE/106960961.1      61    (1) constitutes a failure to pay the principal of or interest on such  indebtedness when due and payable at its stated maturity, upon required repurchase,  upon declaration of acceleration or otherwise, in each case after the expiration of  any applicable grace period; or  (2) results in such indebtedness becoming or being declared due and  payable before its stated maturity (and “Material Debt Acceleration”),   and, in either case, such Material Debt Acceleration shall not default is not cured or waived  within thirty (30) days after notice to the Company by the Trustee or to the Company and  the Trustee by Holders of at least twenty five percent (25%) of the aggregate principal  amount of Notes then outstanding;  (viii) one or more final judgments being rendered against the Company or any of  its Subsidiaries for the payment of at least fifteen million dollars ($15,000,000) (or its  foreign currency equivalent) in the aggregate (excluding any amounts covered by  insurance), where such judgment is not waived, paid, discharged or stayed within sixty (60)  days after (i) the date on which the right to appeal the same has expired, if no such appeal  has commenced; or (ii) the date on which all rights to appeal have been extinguished;  (ix) the Company or any of its Significant Subsidiaries, pursuant to or within  the meaning of any Bankruptcy Law, either:  (1) commences a voluntary case or proceeding;  (2) consents to the entry of an order for relief against it in an involuntary  case or proceeding;  (3) consents to the appointment of a custodian of it or for any substantial  part of its property;  (4) makes a general assignment for the benefit of its creditors;  (5) takes any comparable action under any foreign Bankruptcy Law; or  (6) generally is not paying its debts as they become due; or  (x) a court of competent jurisdiction enters an order or decree under any  Bankruptcy Law that either:  (1) is for relief against Company or any of its Significant Subsidiaries  in an involuntary case or proceeding;  (2) appoints a custodian of the Company or any of its Significant  Subsidiaries, or for any substantial part of the property of the Company or any of  its Significant Subsidiaries;  

 

ACTIVE/106960961.1      62    (3) orders the winding up or liquidation of the Company or any of its  Significant Subsidiaries; or  (4) grants any similar relief under any foreign Bankruptcy Law, and, in  each case under this Section 7.01(A)(x), such order or decree remains unstayed and  in effect for at least sixty (60) days.  (B) Cause Irrelevant. Each of the events set forth in Section 7.01(A) will constitute an  Event of Default regardless of the cause thereof or whether voluntary or involuntary or 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.  Section 7.02 Acceleration.  (A) Automatic Acceleration in Certain Circumstances. If an Event of Default set forth  in Section 7.01(A)(ix) or Section 7.01(A)(x) occurs with respect to the Company (and not solely  with respect to a Significant Subsidiary of the Company), then the principal amount of, and all  accrued and unpaid interest on, all of the Notes then outstanding will immediately become due and  payable without any further action or notice by any Person.  (B) Optional Acceleration. Subject to Section 7.03, if an Event of Default (other than  an Event of Default set forth in Section 7.01(A)(ix) or Section 7.01(A)(x) with respect to the  Company and not solely with respect to a Significant Subsidiary of the Company) occurs and is  continuing, then the Trustee, by notice to the Company, or Holders of at least twenty five percent  (25%) of the aggregate principal amount of Notes then outstanding, by notice to the Company and  the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the  Notes then outstanding to become due and payable immediately.  (C) Rescission of Acceleration. Notwithstanding anything to the contrary in this  Indenture or the Notes, the Holders of a majority in aggregate principal amount of the Notes then  outstanding, by notice to the Company and the Trustee, may, on behalf of all Holders, rescind any  acceleration of the Notes and its consequences if (i) such rescission would not conflict with any  judgment or decree of a court of competent jurisdiction; and (ii) all existing Events of Default  (except the non-payment of principal of, or interest on, the Notes that has become due solely  because of such acceleration) have been cured or waived. No such rescission will affect any  subsequent Default or impair any right consequent thereto.  Section 7.03 Sole Remedy for a Failure to Report.  (A) Generally. Notwithstanding anything to the contrary in this Indenture or the Notes,  the Company may elect that the sole remedy for any Event of Default (a “Reporting Event of  Default”) pursuant to Section 7.01(A)(vi) arising from the Company’s failure to comply with  Section 3.02 will, for each of the first one hundred and eighty (180) calendar days on which a  Reporting Event of Default has occurred and is continuing, consist exclusively of the accrual of  Special Interest on the Notes. If the Company has made such an election, then (i) the Notes will  be subject to acceleration pursuant to Section 7.02 on account of the relevant Reporting Event of  Default from, and including, the one hundred and eighty first (181st) calendar day on which a  Reporting Event of Default has occurred and is continuing or if the Company fails to pay any  

 

ACTIVE/106960961.1      63    accrued and unpaid Special Interest when due; and (ii) Special Interest will cease to accrue on any  Notes from, and including, such one hundred and eighty first (181st) calendar day (it being  understood that interest on any defaulted Special Interest will nonetheless accrue pursuant to  Section 2.05(B)).  (B) Amount and Payment of Special Interest. Any Special Interest that accrues on a  Note pursuant to Section 7.03(A) will be payable on the same dates and in the same manner as the  Stated Interest on such Note and will accrue at a rate per annum equal to one quarter of one percent  (0.25%) of the principal amount thereof for the first ninety (90) days on which Special Interest  accrues and, thereafter, at a rate per annum equal to one half of one percent (0.50%) of the principal  amount thereof; provided, however, that in no event will Special Interest, together with any  Additional Interest that may accrue as a result of the Company’s failure to timely file any report  (other than Form 8-K reports) that it is required to file with the SEC pursuant to Section 13 or  15(d) of the Exchange Act, accrue on any day on a Note at a combined rate per annum that exceeds  one half of one percent (0.50%). For the avoidance of doubt, any Special Interest that accrues on  a Note will be in addition to the Stated Interest that accrues on such Note and, subject to the proviso  of the immediately preceding sentence, in addition to any Additional Interest that accrues on such  Note.  (C) Notice of Election. To make the election set forth in Section 7.03(A), the Company  must send to the Holders, the Trustee and the Paying Agent, before the date on which each  Reporting Event of Default first occurs, a notice that (i) briefly describes the report(s) that the  Company failed to file with or furnish to the SEC; (ii) states that the Company is electing that the  sole remedy for such Reporting Event of Default consist of the accrual of Special Interest; and (iii)  briefly describes the periods during which and rate at which Special Interest will accrue and the  circumstances under which the Notes will be subject to acceleration on account of such Reporting  Event of Default.  (D) Notice to Trustee and Paying Agent; Trustee’s Disclaimer. If Special Interest  accrues on any Note, then, no later than five (5) Business Days before each date on which such  Special Interest is to be paid, the Company will deliver an Officer’s Certificate to the Trustee and  the Paying Agent stating (i) that the Company is obligated to pay Special Interest on such Note on  such date of payment; and (ii) the amount of such Special Interest that is payable on such date of  payment. The Trustee will have no duty to determine whether any Special Interest is payable or  the amount thereof.  (E) No Effect on Other Events of Default. No election pursuant to this Section 7.03  with respect to a Reporting Event of Default will affect the rights of any Holder with respect to  any other Event of Default, including with respect to any other Reporting Event of Default.  Section 7.04 Other Remedies.  (A) Trustee May Pursue All Remedies. If an Event of Default occurs and is continuing,  then the Trustee may pursue any available remedy to collect the payment of any amounts due with  respect to the Notes or to enforce the performance of any provision of this Indenture or the Notes.  

 

ACTIVE/106960961.1      64    (B) Procedural Matters. The Trustee may maintain a proceeding even if it does not  possess any of the Notes or does not produce any of them in such proceeding. A delay or omission  by the Trustee or any Holder in exercising any right or remedy following an Event of Default will  not impair the right or remedy or constitute a waiver of, or acquiescence in, such Event of Default.  All remedies will be cumulative to the extent permitted by law.  Section 7.05 Waiver of Past Defaults.  An Event of Default pursuant to clause (i), (ii), (iv) or (vi) of Section 7.01(A) (that, in the  case of clause (vi) only, results from a Default under any covenant that cannot be amended without  the consent of each affected Holder), and a Default that could lead to such an Event of Default,  can be waived only with the consent of each affected Holder. Each other Default or Event of  Default may be waived, on behalf of all Holders, by the Holders of a majority in aggregate  principal amount of the Notes then outstanding. If an Event of Default is so waived, then it will  cease to exist. If a Default is so waived, then it will be deemed to be cured and any Event of Default  arising therefrom will be deemed not to occur. However, no such waiver will extend to any  subsequent or other Default or Event of Default or impair any right arising therefrom.  Section 7.06 Control by Majority.  Holders of a majority in aggregate principal amount of the Notes then outstanding may  direct the time, method and place of conducting any proceeding for exercising any remedy  available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may  refuse to follow any direction that conflicts with law, this Indenture or the Notes, or that, subject  to Section 10.01, the Trustee determines may be unduly prejudicial to the rights of other Holders  or may involve the Trustee in liability.  Section 7.07 Limitation on Suits.  No Holder may pursue any remedy with respect to this Indenture or the Notes (except to  enforce (x) its rights to receive the principal of, or the Fundamental Change Repurchase Price for,  or interest on, any Notes; or (y) the Company’s obligations to convert any Notes pursuant to  Article 5), unless:  (A) such Holder has previously delivered to the Trustee notice that an Event of Default  is continuing;  (B) Holders of at least twenty five percent (25%) in aggregate principal amount of the  Notes then outstanding deliver a written request to the Trustee to pursue such remedy;  (C) such Holder or Holders offer and, if requested, provide to the Trustee security and  indemnity satisfactory to the Trustee against any loss, liability or expense to the Trustee that may  result from the Trustee’s following such request;  (D) the Trustee does not comply with such request within sixty (60) calendar days after  its receipt of such request and such offer of security or indemnity; and  

 

ACTIVE/106960961.1      65    (E) during such sixty (60) calendar day period, Holders of a majority in aggregate  principal amount of the Notes then outstanding do not deliver to the Trustee a direction that is  inconsistent with such request.  A Holder of a Note may not use this Indenture to prejudice the rights of another Holder or  to obtain a preference or priority over another Holder. The Trustee will have no duty to determine  whether any Holder’s use of this Indenture complies with the preceding sentence.  Section 7.08 Absolute Right of Holders to Institute Suit for the Enforcement of the  Right to Receive Payment and Conversion Consideration.  Notwithstanding anything to the contrary in this Indenture or the Notes (but without  limiting Section 8.01, the right of each Holder of a Note to bring suit for the enforcement of any  payment or delivery, as applicable, of the principal of, or the Fundamental Change Repurchase  Price for, or any interest on, or the Conversion Consideration due pursuant to Article 5 upon  conversion of, such Note on or after the respective due dates therefor provided in this Indenture  and the Notes, will not be impaired or affected without the consent of such Holder.  Section 7.09 Collection Suit by Trustee.  The Trustee will have the right, upon the occurrence and continuance of an Event of Default  pursuant to clause (i), (ii) or (iv) of Section 7.01(A), to recover judgment in its own name and as  trustee of an express trust against the Company for the total unpaid or undelivered principal of, or  Fundamental Change Repurchase Price for, or interest on, or Conversion Consideration due  pursuant to Article 5 upon conversion of, the Notes, as applicable, and, to the extent lawful, any  Default Interest on any Defaulted Amounts, and such further amounts sufficient to cover the costs  and expenses of collection, including compensation provided for in Section 10.06.  Section 7.10 Trustee May File Proofs of Claim.  The Trustee has the right to (A) file such proofs of claim and other papers or documents as  may be necessary or advisable in order to have the claims of the Trustee and the Holders allowed  in any judicial proceedings relative to the Company (or any other obligor upon the Notes) or its  creditors or property and (B) collect, receive and distribute any money or other property payable  or deliverable on any such claims. Each Holder authorizes any custodian in such proceeding to  make such payments to the Trustee, and, if the Trustee consents to the making of such payments  directly to the Holders, to pay to the Trustee any amount due to the Trustee for the reasonable  compensation, expenses, disbursements and advances of the Trustee, and its agents and counsel,  and any other amounts payable to the Trustee pursuant to Section 10.06. To the extent that the  payment of any such compensation, expenses, disbursements, advances and other amounts out of  the estate in such proceeding, is denied for any reason, payment of the same will be secured by a  lien on, and will be paid out of, any and all distributions, dividends, money, securities and other  properties that the Holders may be entitled to receive in such proceeding (whether in liquidation  or under any plan of reorganization or arrangement or otherwise). Nothing in this Indenture will  be deemed to authorize the Trustee to authorize, consent to, accept or adopt on behalf of any Holder  any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the  

 

ACTIVE/106960961.1      66    rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in  any such proceeding.  Section 7.11 Priorities.  The Trustee will pay or deliver in the following order any money or other property that it  collects pursuant to this Article 7:  First: to the Trustee and its agents and attorneys for amounts due under Section  10.06, including payment of all fees, compensation, expenses and liabilities incurred, and  all advances made, by the Trustee and the costs and expenses of collection;  Second: to Holders for unpaid amounts or other property due on the Notes,  including the principal of, or the Fundamental Change Repurchase Price for, or any interest  on, or any Conversion Consideration due upon conversion of, the Notes, ratably, and  without preference or priority of any kind, according to such amounts or other property due  and payable on all of the Notes; and  Third: to the Company or such other Person as a court of competent jurisdiction  directs.  The Trustee may fix a record date and payment date for any payment or delivery to the  Holders pursuant to this Section 7.11, in which case the Trustee will instruct the Company to, and  the Company will, deliver, at least fifteen (15) calendar days before such record date, to each  Holder and the Trustee a notice stating such record date, such payment date and the amount of  such payment or nature of such delivery, as applicable.  Section 7.12 Undertaking for Costs.  In any suit for the enforcement of any right or remedy under this Indenture or the Notes or  in any suit against the Trustee for any action taken or omitted by it as Trustee, a court, in its  discretion, may (A) require the filing by any litigant party in such suit of an undertaking to pay the  costs of such suit, and (B) assess reasonable costs (including reasonable attorneys’ fees) against  any litigant party in such suit, having due regard to the merits and good faith of the claims or  defenses made by such litigant party; provided, however, that this Section 7.12 does not apply to  any suit by the Trustee, any suit by a Holder pursuant to Section 7.08 or any suit by one or more  Holders of more than ten percent (10%) in aggregate principal amount of the Notes then  outstanding.  ARTICLE 8  Amendments, Supplements and Waivers  Section 8.01 Without the Consent of Holders.  Notwithstanding anything to the contrary in Section 8.02, the Company and the Trustee  may amend or supplement this Indenture or the Notes without the consent of any Holder to:  (A) cure any ambiguity or correct any omission, defect or inconsistency in this  Indenture or the Notes;  

 

ACTIVE/106960961.1      67    (B) add guarantees with respect to the Company’s obligations under this Indenture or  the Notes;  (C) secure the Notes;  (D) add to the Company’s covenants or Events of Default for the benefit of the Holders  or surrender any right or power conferred on the Company;  (E) provide for the assumption of the Company’s obligations under this Indenture and  the Notes pursuant to, and in compliance with, Article 6;  (F) enter into supplemental indentures pursuant to, and in accordance with, Section  5.09 in connection with a Common Stock Change Event;  (G) irrevocably elect any Settlement Method or Specified Dollar Amount that the  Company is then permitted to elect, or irrevocably eliminate any Settlement Method or Specified  Dollar Amount; provided, however, that (i) no such election or elimination will affect any  Settlement Method theretofore elected (or deemed to be elected) with respect to any Note pursuant  to Section 5.03(A) and (ii) unless and until the Company obtains Stockholder Approval, the  Company will be required to elect (and will be deemed to have elected, if the Company does not  make such election when required) Cash Settlement in respect of all conversions of Note;  (H) evidence or provide for the acceptance of the appointment, under this Indenture, of  a successor Trustee;  (I) conform the provisions of this Indenture and the Notes to the “Description of  Notes” section of the Company’s Preliminary Offering Memorandum, dated February 1, 2021, as  supplemented by the related Pricing Term Sheet, dated February 2, 2021;  (J) provide for or confirm the issuance of additional Notes pursuant to Section 2.03(B);  (K) comply with any requirement of the SEC in connection with any qualification of  this Indenture or any supplemental indenture under the Trust Indenture Act, as then in effect; or  (L) make any other change to this Indenture or the Notes that does not, individually or  in the aggregate with all other such changes, adversely affect the rights of the Holders, as such, in  any material respect.  Section 8.02 With the Consent of Holders.  (A) Generally. Subject to Section 8.01, Section 7.05 and Section 7.08 and the  immediately following sentence, the Company and the Trustee may, with the consent of the  Holders of a majority in aggregate principal amount of the Notes then outstanding, amend or  supplement this Indenture or the Notes or waive compliance with any provision of this Indenture  or the Notes. Notwithstanding anything to the contrary in the foregoing sentence, without the  consent of each affected Holder, no amendment or supplement to this Indenture or the Notes, or  waiver of any provision of this Indenture or the Notes, may:  

 

ACTIVE/106960961.1      68    (i) reduce the principal, or extend the stated maturity, of any Note;  (ii) reduce the Fundamental Change Repurchase Price for any Note or change  the times at which, or the circumstances under which, the Notes may or will be repurchased  by the Company;  (iii) reduce the rate, or extend the time for the payment, of interest on any Note;  (iv) make any change that adversely affects the conversion rights of any Note;  (v) impair the rights of any Holder set forth in Section 7.08 (as such section is  in effect on the Issue Date);  (vi) change the ranking of the Notes;  (vii) make any note payable in money, or at a place of payment, other than that  stated in this Indenture or the Note;  (viii) reduce the amount of Notes whose Holders must consent to any amendment,  supplement, waiver or other modification; or  (ix) make any direct or indirect change to any amendment, supplement, waiver  or modification provision of this Indenture or the Notes that requires the consent of each  affected Holder.  For the avoidance of doubt, pursuant to clauses (i), (ii), (iii) and (iv) of this Section  8.02(A), no amendment or supplement to this Indenture or the Notes, or waiver of any provision  of this Indenture or the Notes, may change the amount or type of consideration due on any Note  (whether on an Interest Payment Date, Fundamental Change Repurchase Date or the Maturity Date  or upon conversion, or otherwise), or the date(s) or time(s) such consideration is payable or  deliverable, as applicable, without the consent of each affected Holder.  (B) Holders Need Not Approve the Particular Form of any Amendment. A consent of  any Holder pursuant to this Section 8.02 need approve only the substance, and not necessarily the  particular form, of the proposed amendment, supplement or waiver.  Section 8.03 Notice of Amendments, Supplements and Waivers.  Promptly after any amendment, supplement or waiver pursuant to Section 8.01 or Section  8.02 becomes effective, the Company will send to the Holders and the Trustee notice that  (A) describes the substance of such amendment, supplement or waiver in reasonable detail and (B)  states the effective date thereof. The failure to send, or the existence of any defect in, such notice  will not impair or affect the validity of such amendment, supplement or waiver.  Section 8.04 Revocation, Effect and Solicitation of Consents; Special Record Dates;  Etc.  

 

ACTIVE/106960961.1      69    (A) Revocation and Effect of Consents. The consent of a Holder of a Note to an  amendment, supplement or waiver will bind (and constitute the consent of) each subsequent  Holder of any Note to the extent the same evidences any portion of the same indebtedness as the  consenting Holder’s Note, subject to the right of any Holder of a Note to revoke (if not prohibited  pursuant to Section 8.04(B)) any such consent with respect to such Note by delivering notice of  revocation to the Trustee before the time such amendment, supplement or waiver becomes  effective.  (B) Special Record Dates. The Company may, but is not required to, fix a record date  for the purpose of determining the Holders entitled to consent or take any other action in  connection with any amendment, supplement or waiver pursuant to this Article 8. If a record date  is fixed, then, notwithstanding anything to the contrary in Section 8.04(A), only Persons who are  Holders as of such record date (or their duly designated proxies) will be entitled to give such  consent, to revoke any consent previously given or to take any such action, regardless of whether  such Persons continue to be Holders after such record date; provided, however, that no such  consent will be valid or effective for more than one hundred and twenty (120) calendar days after  such record date.  (C) Solicitation of Consents. For the avoidance of doubt, each reference in this  Indenture or the Notes to the consent of a Holder will be deemed to include any such consent  obtained in connection with a repurchase of, or tender or exchange offer for, any Notes.  (D) Effectiveness and Binding Effect. Each amendment, supplement or waiver pursuant  to this Article 8 will become effective in accordance with its terms and, when it becomes effective  with respect to any Note (or any portion thereof), will thereafter bind every Holder of such Note  (or such portion).  Section 8.05 Notations and Exchanges.  If any amendment, supplement or waiver changes the terms of a Note, then the Trustee or  the Company may, in its discretion, require the Holder of such Note to deliver such Note to the  Trustee so that the Trustee may place an appropriate notation prepared by the Company on such  Note and return such Note to such Holder. Alternatively, at its discretion, the Company may, in  exchange for such Note, issue, execute and deliver, and the Trustee will authenticate, in each case  in accordance with Section 2.02, a new Note that reflects the changed terms. The failure to make  any appropriate notation or issue a new Note pursuant to this Section 8.05 will not impair or affect  the validity of such amendment, supplement or waiver.  Section 8.06 Trustee to Execute Supplemental Indentures.  The Trustee will execute and deliver any amendment or supplemental indenture authorized  pursuant to this Article 8; provided, however, that the Trustee need not (but may, in its sole and  absolute discretion) execute or deliver any such amendment or supplemental indenture that  adversely affects the Trustee’s rights, protections, duties, liabilities or immunities. In executing  any amendment or supplemental indenture, the Trustee will be entitled to receive, and (subject to  Section 10.01 and Section 10.02) will be fully protected in relying on, an Officer’s Certificate and  an Opinion of Counsel each stating that (A) the execution and delivery of such amendment or  

 

ACTIVE/106960961.1      70    supplemental indenture is authorized or permitted by this Indenture; (B) all conditions precedent  to such amendment, supplement or waiver have been satisfied and (C) in the case of the Opinion  of Counsel, such amendment or supplemental indenture is valid, binding and enforceable against  the Company in accordance with its terms.  ARTICLE 9  Satisfaction and Discharge  Section 9.01 Termination of Company’s Obligations.  This Indenture will be discharged, and will cease to be of further effect as to all Notes  issued under this Indenture, when:  (A) all Notes then outstanding (other than Notes replaced pursuant to Section 2.13)  have (i) been delivered to the Trustee for cancellation; or (ii) become due and payable (whether on  a Fundamental Change Repurchase Date, the Maturity Date, upon conversion or otherwise) for an  amount of cash or Conversion Consideration, as applicable, that has been fixed;  (B) the Company has caused there to be irrevocably deposited with the Trustee, or with  the Paying Agent (or, with respect to Conversion Consideration, the Conversion Agent), in each  case for the benefit of the Holders, or has otherwise caused there to be delivered to the Holders,  cash (or, with respect to Notes to be converted, Conversion Consideration) sufficient to satisfy all  amounts or other property due on all Notes then outstanding (other than Notes replaced pursuant  to Section 2.13);  (C) the Company has paid all other amounts payable by it under this Indenture; and  (D) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion  of Counsel, each stating that the conditions precedent to the discharge of this Indenture have been  satisfied;  provided, however, that Article 10 and Section 11.01 will survive such discharge and, until no  Notes remain outstanding, Section 2.15 and the obligations of the Trustee, the Paying Agent and  the Conversion Agent with respect to money or other property deposited with them will survive  such discharge.  At the Company’s request, the Trustee will acknowledge the satisfaction and discharge of  this Indenture.  Section 9.02 Repayment to Company.  Subject to applicable unclaimed property law, the Trustee, the Paying Agent and the  Conversion Agent will promptly notify the Company if there exists (and, at the Company’s  request, promptly deliver to the Company) any cash, Conversion Consideration or other property  held by any of them for payment or delivery on the Notes that remain unclaimed two (2) years  after the date on which such payment or delivery was due. After such delivery to the Company,  the Trustee, the Paying Agent and the Conversion Agent will have no further liability to any Holder  with respect to such cash, Conversion Consideration or other property, and Holders entitled to the  

 

ACTIVE/106960961.1      71    payment or delivery of such cash, Conversion Consideration or other property must look to the  Company for payment as a general creditor of the Company.  Section 9.03 Reinstatement.  If the Trustee, the Paying Agent or the Conversion Agent is unable to apply any cash or  other property deposited with it pursuant to Section 9.01 because of any legal proceeding or any  order or judgment of any court or other governmental authority that enjoins, restrains or otherwise  prohibits such application, then the discharge of this Indenture pursuant to Section 9.01 will be  rescinded; provided, however, that if the Company thereafter pays or delivers any cash or other  property due on the Notes to the Holders thereof, then the Company will be subrogated to the  rights of such Holders to receive such cash or other property from the cash or other property, if  any, held by the Trustee, the Paying Agent or the Conversion Agent, as applicable.  ARTICLE 10  Trustee  Section 10.01 Duties of the Trustee.  (A) If an Event of Default has occurred and is continuing, the Trustee will exercise such  of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in  its exercise, as a prudent person would exercise or use under the circumstances in the conduct of  such person’s own affairs.  (B) Except during the continuance of an Event of Default:  (i) the duties of the Trustee will be determined solely by the express provisions  of this Indenture, and the Trustee need perform only those duties that are specifically set  forth in this Indenture and no others, and no implied covenants or obligations will be read  into this Indenture against the Trustee; and  (ii) in the absence of bad faith or willful misconduct on its part, the Trustee may  conclusively rely, as to the truth of the statements and the correctness of the opinions  expressed therein, upon any certificates or opinions that are provided to the Trustee and  conform to the requirements of this Indenture. However, the Trustee will examine the  certificates and opinions to determine whether or not they conform on their face to the  requirements of this Indenture (but need not confirm or investigate the accuracy of  mathematical calculations or other facts stated therein).  (C) The Trustee may not be relieved from liabilities for its negligence, bad faith or  willful misconduct, except that:  (i) this paragraph will not limit the effect of Section 10.01(B);  (ii) the Trustee will not be liable for any error of judgment made in good faith  by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining  the pertinent facts;  

 

ACTIVE/106960961.1      72    (iii) the Trustee will not be liable with respect to any action it takes or omits to  take in good faith in accordance with a direction received by it pursuant to Section 7.06;  and  (iv) no provision of this Indenture will require the Trustee to expend or risk its  own funds or incur any liability in the performance of any of its duties under this Indenture,  or in the exercise of any of its rights or powers, if it has reasonable grounds to believe that  repayment of such funds or adequate indemnity against such liability is not reasonably  assured to it.  (D) Each provision of this Indenture that in any way relates to the Trustee is subject to  paragraphs (A), (B) and (C) of this Section 10.01, regardless of whether such provision so  expressly provides.  (E) The Trustee will not be liable for interest on any money received by it, except as  the Trustee may agree in writing with the Company. Money held in trust by the Trustee shall be  held uninvested and need not be segregated from other funds, except to the extent required by law.  Section 10.02 Rights of the Trustee.  (A) The Trustee may conclusively rely on any document that it believes to be genuine  and signed or presented by the proper Person, and the Trustee need not investigate any fact or  matter stated in such document.  (B) Before the Trustee acts or refrains from acting, it may require, and may  conclusively rely on, an Officer’s Certificate, an Opinion of Counsel or both. The Trustee will not  be liable for any action it takes or omits to take in good faith in reliance on such Officer’s  Certificate or Opinion of Counsel. The Trustee may consult with counsel; and the advice of such  counsel, or any Opinion of Counsel, will constitute full and complete authorization of the Trustee  to take or omit to take any action in good faith in reliance thereon without liability.  (C) The Trustee may act through its attorneys and agents and will not be responsible  for the misconduct or negligence of any such agent appointed with due care.  (D) The Trustee will not be liable for any action it takes or omits to take in good faith  and that it believes to be authorized or within the rights or powers vested in it by this Indenture.  (E) Unless otherwise specifically provided in this Indenture, any demand, request,  direction or notice from the Company will be sufficient if signed by an Officer.  (F) The Trustee need not exercise any rights or powers vested in it by this Indenture at  the request or direction of any Holder unless such Holder has offered the Trustee security or  indemnity satisfactory to the Trustee against any loss, liability or expense that it may incur in  complying with such request or direction.  (G) The Trustee will not be responsible or liable for any punitive, special, indirect or  consequential loss or damage (including lost profits), even if the Trustee has been advised of the  likelihood of such loss or damage and regardless of the form of action.  

 

ACTIVE/106960961.1      73    (H) The Trustee will not be bound to make any investigation into the facts or matters  stated in any resolution, certificate, statement, instrument, opinion, report, notice, request,  direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or  document, but the Trustee, in its discretion, may make such further inquiry or investigation into  such facts or matters as it may see fit, and the Trustee will incur no liability or additional liability  of any kind by reason of such inquiry or investigation.  (I) The Trustee will not be deemed to have notice of any Default or Event of Default  unless written notice of any event that is a Default or Event of Default is received from the  Company or any Holder by a Responsible Officer of the Trustee at the corporate trust office of the  Trustee, and such notice references the Notes and this Indenture and states that such notice is a  notice of default;  (J) The rights, privileges, protections, immunities and benefits given to the Trustee,  including its right to be indemnified, are extended to, and will be enforceable by, the Trustee in  each of its capacities under this Indenture, including any Note Agent; provided (i) any Note Agent  shall only be liable to extent of its gross negligence, willful misconduct or bad faith; and (ii) in and  during an Event of Default, only the Trustee, and not any Note Agent, shall be subject to the  prudent person standard.  (K) The Trustee may request that the Company deliver a certificate setting forth the  names of individuals or titles of officers authorized at such time to take specified actions pursuant  to this Indenture.  (L) If at any time the Trustee is served with any arbitral, judicial or administrative  order, judgment, award, decree, writ or other form of arbitral, judicial or administrative process in  respect of this Indenture, the Notes, or any parts thereof, funds held by it (including, but not limited  to, orders of attachment or garnishment or other forms of levies or injunctions), it shall (i) forward  a copy of such arbitral, judicial or administrative order, judgment, award, decree, writ or other  form of arbitral, judicial or administrative process to the Company and (ii) be authorized to comply  therewith in any manner as it or its legal counsel of its own choosing deems appropriate; and if the  Trustee complies with any such arbitral, judicial or administrative order, judgment, award, decree,  writ or other form of arbitral, judicial or administrative process, the Trustee shall not be liable to  any of the parties hereto or to any other person or entity even though such order, judgment, award,  decree, writ or process may be subsequently modified or vacated or otherwise determined to have  been without legal force or effect.  Section 10.03 Individual Rights of the Trustee.  The Trustee, in its individual or any other capacity, may become the owner or pledgee of  any Note and may otherwise deal with the Company or any of its Affiliates with the same rights  that it would have if it were not Trustee; provided, however, that if the Trustee acquires a  “conflicting interest” (within the meaning of Section 310(b) of the Trust Indenture Act), then it  must eliminate such conflict within ninety (90) days or resign as Trustee. Each Note Agent will  have that same rights and duties as the trustee under this Section 10.03.  

 

ACTIVE/106960961.1      74    Section 10.04 Trustee’s Disclaimer.  The Trustee will not be (A) responsible for, and makes no representation as to, the validity  or adequacy of this Indenture or the Notes; (B) accountable for the Company’s use of the proceeds  from the Notes or any money paid to the Company or upon the Company’s direction under any  provision of this Indenture; (C) responsible for the use or application of any money received by  any Paying Agent other than the Trustee; and (D) responsible for any statement or recital in this  Indenture, the Notes or any other document relating to the sale of the Notes or this Indenture, other  than the Trustee’s certificate of authentication.  Neither the Trustee nor the Conversion Agent (if other than the Trustee) shall be  accountable with respect to the validity or value (or the kind or amount) of any shares of Common  Stock, or of any securities, property or cash, that may at any time be issued or delivered upon the  conversion of any Note; and neither the Trustee nor the Conversion Agent (if other than the  Trustee) makes any representations with respect thereto.   Section 10.05 Notice of Defaults.  If a Default or Event of Default occurs and is continuing of which a Responsible Officer  of the Trustee has received written notice, then the Trustee will send Holders a notice of such  Default or Event of Default within ninety (90) days after receipt of such notice; provided, however,  that, except in the case of a Default or Event of Default in the payment of the principal of, or  interest on, any Note, or a Default in the payment or delivery of the Conversion Consideration due  upon conversion of any Note, the Trustee may withhold such notice if and for so long as it in good  faith determines that withholding such notice is in the interests of the Holders.  Section 10.06 Compensation and Indemnity.  (A) The Company will, from time to time, pay the Trustee reasonable compensation for  its acceptance of this Indenture and services under this Indenture. The Trustee’s compensation will  not be limited by any law on compensation of a trustee of an express trust. In addition to the  compensation for the Trustee’s services, the Company will reimburse the Trustee promptly upon  request for all reasonable disbursements, advances and expenses incurred or made by it under this  Indenture, including the reasonable compensation, disbursements and expenses of the Trustee’s  agents and counsel.  (B) The Company will indemnify the Trustee against any and all losses, liabilities or  expenses incurred by it arising out of or in connection with the acceptance or administration of its  duties under this Indenture, including the costs and expenses of enforcing this Indenture against  the Company (including this Section 10.06) and defending itself against any claim (whether  asserted by the Company, any Holder or any other Person) or liability in connection with the  exercise or performance of any of its powers or duties under this Indenture, except to the extent  any such loss, liability or expense may be attributable to its negligence or willful misconduct. The  Trustee will promptly notify the Company of any claim for which it may seek indemnity, but the  Trustee’s failure to so notify the Company will not relieve the Company of its obligations under  this Section 10.06(B), except to the extent the Company is materially prejudiced by such failure.  The Company will defend such claim, provided that counsel appointed by the Company is  

 

ACTIVE/106960961.1      75    reasonably acceptable to the Trustee, and the Trustee will cooperate in such defense. If the Trustee  is advised by counsel that it may have defenses available to it that are in conflict with the defenses  available to the Company or any other party, or that there is an actual or potential conflict of  interest, then the Trustee may retain separate counsel, and the Company will pay the reasonable  fees and expenses of such counsel (including the reasonable fees and expenses of counsel to the  Trustee incurred in evaluating whether such a conflict exists). The Company need not pay for any  settlement of any such claim made without its consent, which consent will not be unreasonably  withheld.  The Company shall not enter into any settlement of any claim without the Trustee’s  prior written consent (which such consent shall not be unreasonably withheld or delayed).  (C) The obligations of the Company under this Section 10.06 will survive the  resignation or removal of the Trustee and the discharge of this Indenture.  (D) To secure the Company’s payment obligations in this Section 10.06, the Trustee  will have a lien prior to the Notes on all money or property held or collected by the Trustee, except  that held in trust to pay principal of, or interest on, particular Notes, which lien will survive the  discharge of this Indenture.  (E) If the Trustee incurs expenses or renders services after an Event of Default pursuant  to clause (ix) or (x) of Section 7.01(A) occurs, then such expenses and the compensation for such  services (including the fees and expenses of its agents and counsel) are intended to constitute  expenses of administration under any Bankruptcy Law.  Section 10.07 Replacement of the Trustee.  (A) Notwithstanding anything to the contrary in this Section 10.07, a resignation or  removal of the Trustee, and the appointment of a successor Trustee, will become effective only  upon such successor Trustee’s acceptance of appointment as provided in this Section 10.07.  (B) The Trustee may resign at any time and be discharged from the trust created by this  Indenture by providing thirty (30) days written notice to the Company. The Holders of a majority  in aggregate principal amount of the Notes then outstanding may remove the Trustee by so  notifying the Trustee and the Company in writing with thirty (30) days prior notice. The Company  may remove the Trustee if:  (i) the Trustee fails to comply with Section 10.09;  (ii) the Trustee is adjudged to be bankrupt or insolvent or an order for relief is  entered with respect to the Trustee under any Bankruptcy Law;  (iii) a custodian or public officer takes charge of the Trustee or its property; or  (iv) the Trustee becomes incapable of acting.  (C) If the Trustee resigns or is removed, or if a vacancy exists in the office of Trustee  for any reason, then (i) the Company will promptly appoint a successor Trustee; and (ii) at any  time within one (1) year after the successor Trustee takes office, the Holders of a majority in  

 

ACTIVE/106960961.1      76    aggregate principal amount of the Notes then outstanding may appoint a successor Trustee to  replace such successor Trustee appointed by the Company.  (D) If a successor Trustee does not take office within thirty (30) days after the retiring  Trustee resigns or is removed, then the retiring Trustee, the Company or the Holders of at least ten  percent (10%) in aggregate principal amount of the Notes then outstanding may petition any court  of competent jurisdiction for the appointment of a successor Trustee.  (E) If the Trustee, after written request by a Holder of at least six (6) months, fails to  comply with Section 10.09, then such Holder may petition any court of competent jurisdiction for  the removal of the Trustee and the appointment of a successor Trustee.  (F) A successor Trustee will deliver a written acceptance of its appointment to the  retiring Trustee and to the Company, upon which notice the resignation or removal of the retiring  Trustee will become effective and the successor Trustee will have all the rights, powers and duties  of the Trustee under this Indenture. The successor Trustee will send notice of its succession to  Holders. The retiring Trustee will, upon payment of all amounts due to it under this Indenture,  promptly transfer all property held by it as Trustee to the successor Trustee, which property will,  for the avoidance of doubt, be subject to the lien provided for in Section 10.06(D).  Section 10.08 Successor Trustee by Merger, Etc.  If the Trustee consolidates, merges or converts into, or transfers all or substantially all of  its corporate trust business to, another Person, then such Person will become the successor Trustee  without any further act.  Section 10.09 Eligibility; Disqualification.  There will at all times be a Trustee under this Indenture that is a Person organized and  doing business under the laws of the United States of America or of any state thereof, that is  authorized under such laws to exercise corporate trustee power, that is subject to supervision or  examination by federal or state authorities and that has a combined capital and surplus of at least  $100.0 million as set forth in its most recent published annual report of condition.  ARTICLE 11  Miscellaneous  Section 11.01 Notices.  Any notice or communication by the Company or the Trustee to the other will be deemed  to have been duly given if in writing and delivered in person or by first class mail (registered or  certified, return receipt requested), facsimile transmission, electronic transmission or other similar  means of unsecured electronic communication or overnight air courier guaranteeing next day  delivery, or to the other’s address, which initially is as follows:  If to the Company:  Mitek Systems, Inc.  600 B Street, Suite 100  

 

ACTIVE/106960961.1      77    San Diego, California  Attention: Chief Financial Officer  If to the Trustee:  UMB Bank, National Association  100 William Street, Suite 1850  New York, New York 10038  Attention: Corporate Trust & Escrow Services  Email: david.massa@umb.com  The Company or the Trustee, by notice to the other, may designate additional or different  addresses (including facsimile numbers and electronic addresses) for subsequent notices or  communications.  All notices and communications (other than those sent to Holders) will be deemed to have  been duly given: (A) at the time delivered by hand, if personally delivered; (B) five (5) Business  Days after being deposited in the mail, postage prepaid, if mailed; (C) when receipt acknowledged,  if transmitted by facsimile, electronic transmission or other similar means of unsecured electronic  communication; and (D) the next Business Day after timely delivery to the courier, if sent by  overnight air courier guaranteeing next day delivery.  All notices or communications required to be made to a Holder pursuant to this Indenture  must be made in writing and will be deemed to be duly sent or given in writing if mailed by first  class mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing  next day delivery, to its address shown on the Register; provided, however, that a notice or  communication to a Holder of a Global Note may, but need not, instead be sent pursuant to the  Depositary Procedures (in which case, such notice will be deemed to be duly sent or given in  writing). The failure to send a notice or communication to a Holder, or any defect in such notice  or communication, will not affect its sufficiency with respect to any other Holder.  The Trustee agrees to accept and act on instructions or directions pursuant to this Indenture  sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic  methods, provided that the Trustee has received an incumbency certificate listing persons  designated to give such instructions or directions and containing specimen signatures of such  designated persons, which incumbency certificate the Trustee will be entitled to rely as conclusive  and up-to-date until such time as it receives an amended certificate containing any additions thereto  or deletions therefrom. If the Company elects to give the Trustee e-mail or facsimile instructions  (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon  such instructions, the Trustee’s reasonable understanding of such instructions will be deemed  controlling. The Trustee will not be liable for any losses, costs or expenses arising directly or  indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding  that such instructions may conflict or be inconsistent with a subsequent written instruction. The  Company agrees to assume all risks arising out of the use of such electronic methods to submit  instructions and directions to the Trustee, including the risk of the Trustee acting on unauthorized  instructions and the risk of interception and misuse by third parties.  

 

ACTIVE/106960961.1      78    Notwithstanding any other provision of this Indenture or any Note, where this Indenture or  any Note provides for notice of any event or any other communication (including any notice of  repurchase) to a holder of a Global Note (whether by mail or otherwise), such notice will be  sufficiently given if given to the Depositary (or its designee) pursuant to the standing instructions  from the Depositary or its designee, including by electronic mail in accordance with accepted  practices at the Depositary. Subject to the requirements of the preceding paragraph, if the Trustee  is then acting as the Depositary’s custodian for the Notes, then, at the reasonable request of the  Company to the Trustee, the Trustee will cause any notice prepared by the Company to be sent to  any Holder(s) pursuant to the Depositary Procedures, provided such request is evidenced in a  Company Order delivered, together with the text of such notice, to the Trustee at least two (2)  Business Days before the date such notice is to be so sent. For the avoidance of doubt, such  Company Order need not be accompanied by an Officer’s Certificate or Opinion of Counsel. The  Trustee will not have any liability relating to the contents of any notice that it sends to any Holder  pursuant to any such Company Order.  If a notice or communication is mailed or sent in the manner provided above within the  time prescribed, it will be deemed to have been duly given, whether or not the addressee receives  it.  Notwithstanding anything to the contrary in this Indenture or the Notes, whenever any  provision of this Indenture requires a party to send notice to another party, no such notice need be  sent if the sending party and the recipient are the same Person acting in different capacities.  Section 11.02 Delivery of Officer’s Certificate and Opinion of Counsel as to  Conditions Precedent.  Upon any request or application by the Company to the Trustee to take any action under  this Indenture, the Company will furnish to the Trustee:  (A) an Officer’s Certificate in form and substance reasonably satisfactory to the Trustee  that complies with Section 11.03 and states that, in the opinion of the signatory thereto, all  conditions precedent and covenants, if any, provided for in this Indenture relating to such action  have been satisfied; and  (B) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee  that complies with Section 11.03 and states that, in the opinion of such counsel, all such conditions  precedent and covenants, if any, have been satisfied (other than the initial authentication of Notes  under this Indenture).  Section 11.03 Statements Required in Officer’s Certificate and Opinion of Counsel.  Each Officer’s Certificate (other than an Officer’s Certificate pursuant to Section 3.05) or  Opinion of Counsel with respect to compliance with a covenant or condition provided for in this  Indenture will include:  (A) a statement that the signatory thereto has read such covenant or condition;  

 

ACTIVE/106960961.1      79    (B) a brief statement as to the nature and scope of the examination or investigation upon  which the statements or opinions contained therein are based;  (C) a statement that, in the opinion of such signatory, he, she or it has made such  examination or investigation as is necessary to enable him, her or it to express an informed opinion  as to whether or not such covenant or condition has been satisfied; and  (D) a statement as to whether, in the opinion of such signatory, such covenant or  condition has been satisfied.  Section 11.04 Rules by the Trustee, the Registrar and the Paying Agent.  The Trustee may make reasonable rules for action by or at a meeting of Holders. The  Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its  functions.  Section 11.05 No Personal Liability of Directors, Officers, Employees and  Stockholders.  No past, present or future director, officer, employee, incorporator or stockholder of the  Company, as such, will have any liability for any obligations of the Company under this Indenture  or the Notes or for any claim based on, in respect of, or by reason of, such obligations or their  creation. By accepting any Note, each Holder waives and releases all such liability. Such waiver  and release are part of the consideration for the issuance of the Notes.  Section 11.06 Governing Law; Waiver of Jury Trial.  THIS INDENTURE AND THE NOTES, AND ANY CLAIM, CONTROVERSY OR  DISPUTE ARISING UNDER OR RELATED TO THIS INDENTURE OR THE NOTES, WILL  BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE  STATE OF NEW YORK. EACH OF THE COMPANY AND THE TRUSTEE IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND  ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR  RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTIONS  CONTEMPLATED BY THIS INDENTURE OR THE NOTES.  Section 11.07 Submission to Jurisdiction.  Any legal suit, action or proceeding arising out of or based upon this Indenture or the  transactions contemplated by this Indenture may be instituted in the federal courts of the United  States of America located in the City of New York or the courts of the State of New York, in each  case located in the City of New York (collectively, the “Specified Courts”), and each party  irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or  proceeding. Service of any process, summons, notice or document by mail (to the extent allowed  under any applicable statute or rule of court) to such party’s address set forth in Section 11.01 will  be effective service of process for any such suit, action or proceeding brought in any such court.  Each of the Company, the Trustee and each Holder (by its acceptance of any Note) irrevocably  and unconditionally waives any objection to the laying of venue of any suit, action or other  

 

ACTIVE/106960961.1      80    proceeding in the Specified Courts and irrevocably and unconditionally waives and agrees not to  plead or claim any such suit, action or other proceeding has been brought in an inconvenient forum.  Section 11.08 No Adverse Interpretation of Other Agreements.  Neither this Indenture nor the Notes may be used to interpret any other indenture, note,  loan or debt agreement of the Company or its Subsidiaries or of any other Person, and no such  indenture, note, loan or debt agreement may be used to interpret this Indenture or the Notes.  Section 11.09 Successors.  All agreements of the Company in this Indenture and the Notes will bind its successors.  All agreements of the Trustee in this Indenture will bind its successors.  Section 11.10 Force Majeure.  In no event will the Trustee be responsible or liable for any failure or delay in the  performance of its obligations under this Indenture arising out of or caused by, directly or  indirectly, forces beyond its control, including strikes, work stoppages, accidents, acts of war or  terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and  interruptions, pandemics, epidemics, recognized public emergencies, quarantine restrictions,  hacking or  cyber-attacks, or other use or infiltration of the Trustee’s technological infrastructure  exceeding authorized access, loss or malfunctions of utilities, communications or computer  (software and hardware) services; it being understood that the Trustee will use reasonable efforts  that are consistent with accepted practices in the banking industry to resume performance as soon  as practicable under the circumstances.  Section 11.11 U.S.A. PATRIOT Act.  The Company acknowledges that, in accordance with Section 326 of the U.S.A. PATRIOT  Act, the Trustee, like all financial institutions, in order to help fight the funding of terrorism and  money laundering, is required to obtain, verify and record information that identifies each person  or legal entity that establishes a relationship or opens an account with the Trustee. The Company  agrees to provide the Trustee with such information as it may request to enable the Trustee to  comply with the U.S.A. PATRIOT Act.  Section 11.12 Calculations.  Except as otherwise provided in this Indenture, the Company will be responsible for  making all calculations called for under this Indenture or the Notes, including determinations of  the Last Reported Sale Price, the Daily Cash Amount, the Daily Share Amount, accrued interest  on the Notes and the Conversion Rate.  The Company will make all calculations in good faith, and, absent manifest error, its  calculations will be final and binding on all Holders. The Company will provide a schedule of its  calculations to the Trustee and the Conversion Agent, and each of the Trustee and the Conversion  Agent may rely conclusively on the accuracy of the Company’s calculations without independent  verification and shall not have any liability to the Company, any Holder or any third-party for  

 

ACTIVE/106960961.1      81    relying on such. The Trustee will promptly forward a copy of each such schedule to a Holder upon  its written request therefor, at the cost and expense of the Company.  For the avoidance of doubt, neither the Trustee nor the Conversion Agent will have any  responsibility to make any calculations under this Indenture, nor will the Trustee or the Conversion  Agent be charged with knowledge of or have any duties to monitor the Stock Price or any  Observation Period. The Trustee and the Conversion Agent may rely conclusively on the  calculations and information provided to them by the Company as to the Daily VWAP, the Daily  Conversion Values, the Trading Price and the Last Reported Sale Price.  Section 11.13 Severability.  If any provision of this Indenture or the Notes is invalid, illegal or unenforceable, then the  validity, legality and enforceability of the remaining provisions of this Indenture or the Notes will  not in any way be affected or impaired thereby.  Section 11.14 Counterparts.  The parties may sign any number of copies of this Indenture. Each signed copy will be an  original, and all of them together represent the same agreement. Delivery of an executed  counterpart of this Indenture by facsimile, electronically in portable document format or in any  other format will be effective as delivery of a manually executed counterpart.  Section 11.15 Table of Contents, Headings, Etc.  The table of contents and the headings of the Articles and Sections of this Indenture have  been inserted for convenience of reference only, are not to be considered a part of this Indenture  and will in no way modify or restrict any of the terms or provisions of this Indenture.  Section 11.16 Withholding Taxes.  Each Holder of a Note agrees that, in the event that it is deemed to have received a  distribution that is subject to U.S. federal income tax as a result of an adjustment or the non- occurrence of an adjustment to the Conversion Rate, any resulting withholding taxes (including  backup withholding) may be withheld from interest and payments upon conversion, repurchase,  redemption, or maturity of the Notes. In addition, each Holder of a Note agrees that if any  withholding taxes (including backup withholding) are paid on behalf of such Holder, then those  withholding taxes may be set off against payments of cash or the delivery of other Conversion  Consideration, if any, in respect of the Notes (or, in some circumstances, any payments on the  Common Stock) or sales proceeds received by, or other funds or assets of, such Holder.  Section 11.17 Foreign Account Tax Compliance Act (FATCA).  In order to comply with applicable tax laws, rules and regulations (inclusive of directives,  guidelines and interpretations promulgated by competent authorities) in effect from time to time  (“Applicable Tax Law”) that a foreign financial institution, issuer, trustee, paying agent, holder  or other institution is or has agreed to be subject to related to the Indenture, the Company agrees  (A) to provide to the Trustee upon reasonable written request by the Trustee sufficient information  

 

ACTIVE/106960961.1      82    about Holders or other applicable parties and/or transactions (including any modification to the  terms of such transactions) so the Trustee can determine whether it has tax related obligations  under Applicable Tax Law; and (B) that the Trustee will be entitled to make any withholding or  deduction from payments under the Indenture to the extent necessary to comply with Applicable  Tax Law for which the Trustee will not have any liability, absent gross negligence or willful  misconduct on its part. The obligations imposed on the Company under this paragraph are limited  to the extent that (x) the Company has the relevant information in its possession or control, or is  reasonably obtainable by the Company; and (y) the provision of such information to the Trustee  will not result in any breach of this Indenture or the Notes or violate any applicable law. The terms  of this section will survive the termination of this Indenture.  Section 11.18 Electronic Execution of Documents.  The words “execution,” “execute,” “signed,” “signature” and words of like import in this  Indenture or any document to be signed in connection with this Indenture and the transactions  contemplated hereby will be deemed to include manual signatures that are scanned, photocopied  or faxed or other electronic signatures created on an electronic platform (such as DocuSign) or  digital signature (such as Adobe Sign). Such signatures, and contract formations on electronic  platforms, and the keeping of records in electronic form, will be of the same legal effect, validity  and enforceability as a manually executed signature or the use of a paper-based recordkeeping  system, in each case to the extent and as provided for in any applicable law, including the Federal  Electronic Signatures in Global and National Commerce Act, the New York State Electronic  Signatures and Records Act or any other similar state laws based on the Uniform Electronic  Transactions Act. The Company agrees to assume all risks arising out of the use of digital  signatures and electronic methods to submit communications, including the risk of the Trustee  acting on unauthorized instructions and the risk of interception and misuse by third parties.  [The Remainder of This Page Intentionally Left Blank; Signature Page Follows]    

 

[Signature Page to Indenture]  IN WITNESS WHEREOF, the parties to this Indenture have caused this Indenture to be  duly executed as of the date first written above.  Mitek Systems, Inc.  By: _____________________________  Name: Jeffrey C. Davison  Title:  Chief Financial Officer  UMB Bank, National Association,  as Trustee  By: _____________________________  Name:   Title:  /s/ Jeffrey C. Davison /s/ David Massa David Massa Senior Vice President 

 

ACTIVE/106960961.1      A-1    EXHIBIT A  FORM OF NOTE  [Insert Global Note Legend, if applicable]  [Insert Restricted Note Legend, if applicable]  [Insert Non-Affiliate Legend]  MITEK SYSTEMS, INC.  0.750% Convertible Senior Note due 2026  CUSIP No.: [___][Insert for a “restricted” CUSIP number: 1]   Certificate No. [___]  ISIN No.: [___][Insert for a “restricted” ISIN number: 1]  Mitek Systems, Inc., a Delaware corporation, for value received, promises to pay to [Cede  & Co.], or its registered assigns, the principal sum of [___] dollars ($[___]) [(as revised by the  attached Schedule of Exchanges of Interests in the Global Note)]2 on February 1, 2026 and to pay  interest thereon, as provided in the Indenture referred to below, until the principal and all accrued  and unpaid interest are paid or duly provided for.  Interest Payment Dates: February 1 and August 1 of each year, commencing on August 1, 2021.  Regular Record Dates: January 15 and July 15.  Additional provisions of this Note are set forth on the other side of this Note.      1 This Note will be deemed to be identified by CUSIP No. [___] and ISIN No. [___] from and after such time when  the Company delivers, pursuant to Section 2.12 of the within-mentioned Indenture, written notice to the Trustee of  the deemed removal of the Restricted Note Legend affixed to this Note.   2 Insert bracketed language for Global Notes only.  

 

ACTIVE/106960961.1      A-2    IN WITNESS WHEREOF, Mitek Systems, Inc. has caused this instrument to be duly  executed as of the date set forth below.  Mitek Systems, Inc.  Date: [___________]     By:  __________________________               Name: [________]         Title:  [________]    

 

ACTIVE/106960961.1      A-3    TRUSTEE’S CERTIFICATE OF AUTHENTICATION  UMB Bank, National Association, as Trustee, certifies that this is one of the Notes referred to in  the within-mentioned Indenture.  Date:  __________________      By:  __________________________                         Authorized Signatory    

 

ACTIVE/106960961.1      A-4    Mitek Systems, Inc.  0.750% Convertible Senior Note due 2026  This Note is one of a duly authorized issue of notes of Mitek Systems, Inc., a Delaware  corporation (the “Company”), designated as its 0.750% Convertible Senior Notes due 2026 (the  “Notes”), all issued or to be issued pursuant to an indenture, dated as of February 5, 2021 (as the  same may be amended from time to time, the “Indenture”), between the Company and UMB  Bank, National Association, as trustee (the “Trustee”). Capitalized terms used in this Note without  definition have the respective meanings ascribed to them in the Indenture.  The Indenture sets forth the rights and obligations of the Company, the Trustee and the  Holders and the terms of the Notes. Notwithstanding anything to the contrary in this Note, to the  extent that any provision of this Note conflicts with the provisions of the Indenture, the provisions  of the Indenture will control.  1. Interest. This Note will accrue interest at a rate and in the manner set forth in  Section 2.05 of the Indenture. Stated Interest on this Note will begin to accrue from, and including,  February 5, 2021.  2. Maturity. This Note will mature on February 1, 2026, unless earlier repurchased  or converted.  3. Method of Payment. Cash amounts due on this Note will be paid in the manner  set forth in Section 2.04 of the Indenture.  4. Persons Deemed Owners. The Holder of this Note will be treated as the owner of  this Note for all purposes.  5. Denominations; Transfers and Exchanges. All Notes will be in registered form,  without coupons, in principal amounts equal to any Authorized Denominations. Subject to the  terms of the Indenture, the Holder of this Note may transfer or exchange this Note by presenting  it to the Registrar and delivering any required documentation or other materials.  6. Right of Holders to Require the Company to Repurchase Notes upon a  Fundamental Change. If a Fundamental Change occurs, then each Holder will have the right to  require the Company to repurchase such Holder’s Notes (or any portion thereof in an Authorized  Denomination) for cash in the manner, and subject to the terms, set forth in Section 4.02 of the  Indenture.  7. No Right of the Company to Redeem the Notes. The Company will not have the  right to redeem the Notes prior to the Maturity Date.  8. Conversion. The Holder of this Note may convert this Note into Conversion  Consideration in the manner, and subject to the terms, set forth in Article 5 of the Indenture.  9. When the Company May Merge, Etc. Article 6 of the Indenture places limited  restrictions on the Company’s ability to be a party to a Business Combination Event.  

 

ACTIVE/106960961.1      A-5    10. Defaults and Remedies. If an Event of Default occurs, then the principal amount  of, and all accrued and unpaid interest on, all of the Notes then outstanding may (and, in certain  circumstances, will automatically) become due and payable in the manner, and subject to the terms,  set forth in Article 7 of the Indenture.  11. Amendments, Supplements and Waivers. The Company and the Trustee may  amend or supplement the Indenture or the Notes or waive compliance with any provision of the  Indenture or the Notes in the manner, and subject to the terms, set forth in Article 8 of the  Indenture.  12. No Personal Liability of Directors, Officers, Employees and Stockholders. No  past, present or future director, officer, employee, incorporator or stockholder of the Company, as  such, will have any liability for any obligations of the Company under the Indenture or the Notes  or for any claim based on, in respect of, or by reason of, such obligations or their creation. By  accepting any Note, each Holder waives and releases all such liability. Such waiver and release  are part of the consideration for the issuance of the Notes.  13. Authentication. No Note will be valid until it is authenticated by the Trustee. A  Note will be deemed to be duly authenticated only when an authorized signatory of the Trustee (or  a duly appointed authenticating agent) manually signs the certificate of authentication of such  Note.  14. Abbreviations. Customary abbreviations may be used in the name of a Holder or  its assignee, such as TEN COM (tenants in common), TEN ENT (tenants by the entireties), JT  TEN (joint tenants with right of survivorship and not as tenants in common), CUST (custodian),  and U/G/M/A (Uniform Gift to Minors Act).  15. Governing Law. THIS NOTE, AND ANY CLAIM, CONTROVERSY OR  DISPUTE ARISING UNDER OR RELATED TO THIS NOTE, WILL BE GOVERNED BY  AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  * * *    

 

ACTIVE/106960961.1      A-6    To request a copy of the Indenture, which the Company will provide to any Holder at no  charge, please send a written request to the following address:  Mitek Systems, Inc.  600 B Street, Suite 100  San Diego, California  Attention: Chief Financial Officer     

 

ACTIVE/106960961.1      A-7    SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE3  INITIAL PRINCIPAL AMOUNT OF THIS GLOBAL NOTE: $[___]  The following exchanges, transfers or cancellations of this Global Note have been made:                          Date   Amount of Increase  (Decrease) in Principal  Amount of this Global  Note   Principal Amount of this  Global Note After Such  Increase (Decrease)   Signature of Authorized  Signatory of Trustee                                                                                                                                        3 Include for Global Notes only.  

 

ACTIVE/106960961.1      A-8    CONVERSION NOTICE  Mitek Systems, Inc.  0.750% Convertible Senior Notes due 2026  Subject to the terms of the Indenture, by executing and delivering this Conversion Notice, the  undersigned Holder of the Note identified below directs the Company to convert (check one):   the entire principal amount of   $                     4 aggregate principal amount of  the Note identified by CUSIP No.                       and Certificate No.                      .  The undersigned acknowledges that if the Conversion Date of a Note to be converted is after a  Regular Record Date and before the next Interest Payment Date, then such Note, when surrendered  for conversion, must, in certain circumstances, be accompanied with an amount of cash equal to  the interest that would have accrued on such Note to, but excluding, such Interest Payment Date.  Date:_________________                          _______________________________________                       (Legal Name of Holder)  By:  _____________________________________  Name:  Title:  Signature Guaranteed:    __________________________________________             Participant in a Recognized Signature                 Guarantee Medallion Program    By:  ______________________________________                  Authorized Signatory      4 Must be an Authorized Denomination   

 

ACTIVE/106960961.1      A-9    FUNDAMENTAL CHANGE REPURCHASE NOTICE  Mitek Systems, Inc.  0.750% Convertible Senior Notes due 2026  Subject to the terms of the Indenture, by executing and delivering this Fundamental Change  Repurchase Notice, the undersigned Holder of the Note identified below is exercising its  Fundamental Change Repurchase Right with respect to (check one):   the entire principal amount of   $                     5 aggregate principal amount of  the Note identified by CUSIP No.                       and Certificate No.                      .  The undersigned acknowledges that this Note, duly endorsed for transfer, must be delivered to the  Paying Agent before the Fundamental Change Repurchase Price will be paid.  Date:_________________                          _______________________________________                       (Legal Name of Holder)  By:  _____________________________________  Name:  Title:  Signature Guaranteed:    __________________________________________             Participant in a Recognized Signature                 Guarantee Medallion Program    By:  ______________________________________                  Authorized Signatory      5 Must be an Authorized Denomination.   

 

ACTIVE/106960961.1      A-10    ASSIGNMENT FORM  Mitek Systems, Inc.  0.750% Convertible Senior Notes due 2026  Subject to the terms of the Indenture, the undersigned Holder of the within Note assigns to:  Name:    Address:    Social security or  tax identification  number:    the within Note and all rights thereunder irrevocably appoints:  as agent to transfer the within Note on the books of the Company. The agent may substitute another  to act for him/her.  Date:_________________                          _______________________________________                       (Legal Name of Holder)  By:  _____________________________________  Name:  Title:  Signature Guaranteed:    __________________________________________             Participant in a Recognized Signature                 Guarantee Medallion Program    By:  ______________________________________                  Authorized Signatory    

 

ACTIVE/106960961.1      A-11    TRANSFEROR ACKNOWLEDGEMENT  If the within Note bears a Restricted Note Legend, the undersigned further certifies that (check  one):  1.  Such Transfer is being made to the Company or a Subsidiary of the Company.  2.  Such Transfer is being made pursuant to, and in accordance with, a registration  statement that is effective under the Securities Act at the time of the Transfer.  3.  Such Transfer is being made pursuant to, and in accordance with, Rule 144A under the  Securities Act, and, accordingly, the undersigned further certifies that the within Note is  being transferred to a Person that the undersigned reasonably believes is purchasing the  within Note for its own account, or for one or more accounts with respect to which such  Person exercises sole investment discretion, and such Person and each such account is a  “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act  in a transaction meeting the requirements of Rule 144A.  4.  Such Transfer is being made pursuant to, and in accordance with, any other available  exemption from the registration requirements of the Securities Act (including, if available,  the exemption provided by Rule 144 under the Securities Act).  Dated:___________________________    _________________________________                (Legal Name of Holder)    By:_______________________________   Name:  Title:  Signature Guaranteed:    ___________________________________      (Participant in a Recognized Signature           Guarantee Medallion Program)    By:_______________________________                   Authorized Signatory    

 

ACTIVE/106960961.1      B1-1    EXHIBIT B-1  FORM OF RESTRICTED NOTE LEGEND  THE OFFER AND SALE OF THIS NOTE AND THE SHARES OF COMMON STOCK, IF  ANY, ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND  THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT  IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF  OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER:  (1) REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A  “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A  UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT  DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT; AND  (2) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER,  SELL OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST  HEREIN, EXCEPT ONLY:  (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF;  (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BECOME  EFFECTIVE UNDER THE SECURITIES ACT;  (C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE  144A UNDER THE SECURITIES ACT;  (D) PURSUANT TO RULE 144 UNDER THE SECURITIES ACT; OR  (E) PURSUANT TO ANY OTHER EXEMPTION FROM, OR IN A TRANSACTION  NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE  SECURITIES ACT.  BEFORE THE REGISTRATION OF ANY SALE OR TRANSFER IN ACCORDANCE WITH  (2)(D) OR (E) ABOVE, THE COMPANY, THE TRUSTEE AND THE REGISTRAR RESERVE  THE RIGHT TO REQUIRE THE DELIVERY OF SUCH CERTIFICATES OR OTHER  DOCUMENTATION OR EVIDENCE AS THEY MAY REASONABLY REQUIRE IN ORDER  TO DETERMINE THAT THE PROPOSED SALE OR TRANSFER IS BEING MADE IN  COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES  LAWS.6      6 This paragraph and the immediately preceding paragraph will be deemed to be removed from the face of this Note  at such time when the Company delivers written notice to the Trustee of such deemed removal pursuant to Section  2.12 of the within-mentioned Indenture.  

 

ACTIVE/106960961.1      B2-1    EXHIBIT B-2  FORM OF GLOBAL NOTE LEGEND  THIS IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER  REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A  NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE  TRUSTEE AND ANY AGENT THEREOF AS THE OWNER AND HOLDER OF THIS NOTE  FOR ALL PURPOSES.  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 IN SUCH  OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC  (AND ANY PAYMENT HEREON IS MADE TO 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 SINCE THE REGISTERED OWNER HEREOF, CEDE & CO.,  HAS AN INTEREST HEREIN.  TRANSFERS OF THIS GLOBAL NOTE WILL BE LIMITED TO TRANSFERS IN WHOLE,  BUT NOT IN PART, TO NOMINEES OF DTC, OR TO A SUCCESSOR THEREOF OR SUCH  SUCCESSOR’S NOMINEE, AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE  WILL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE  RESTRICTIONS SET FORTH IN Article 2 OF THE INDENTURE HEREINAFTER  REFERRED TO.    

 

ACTIVE/106960961.1      B3-1    EXHIBIT B-3  FORM OF NON-AFFILIATE LEGEND  NO AFFILIATE (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT OF 1933, AS  AMENDED) OF THE COMPANY, OR ANY PERSON OR ENTITY THAT WAS AN  AFFILIATE (AS DEFINED UNDER RULE 144 UNDER THE SECURITIES ACT OF 1933, AS  AMENDED) OF THE COMPANY WITHIN THE THREE MONTHS IMMEDIATELY  PRECEDING, MAY PURCHASE OR OTHERWISE ACQUIRE THIS NOTE OR ANY  BENEFICIAL INTEREST HEREIN.Document

[Dealer Address]

 [February 2][February 3], 2021
To:     Mitek Systems, Inc.
600 B Street, Suite 100
    San Diego, California 92101
Attention:     Chief Financial Officer
Telephone No.:    (619) 269-6800

Re:     [Base][Additional] Call Option Transaction

The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the call option transaction entered into between [Dealer] (“Dealer”) and Mitek Systems, Inc. (“Counterparty”) as of the Trade Date specified below (the “Transaction”).  
This letter agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.  Each party further agrees that this Confirmation together with the Agreement evidence a complete binding agreement between Counterparty and Dealer as to the subject matter and terms of the Transaction to which this Confirmation relates, and shall supersede all prior or contemporaneous written or oral communications with respect thereto.
The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this Confirmation.  In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern.  Certain defined terms used herein are based on terms that are defined in the [Offering Memorandum dated February 1, 2021 (the “Offering Memorandum”) relating to the 0.750% Convertible Senior Notes due 2026 (as originally issued by Counterparty, the “Convertible Notes” and each USD 1,000 principal amount of Convertible Notes, a “Convertible Note”) issued by Counterparty in an aggregate initial principal amount of USD 135,000,000 (as increased by [up to]1 an aggregate principal amount of USD 20,250,000 [if and to the extent that] 2[pursuant to the exercise by]3 the Initial Purchasers (as defined herein) [exercise]4[of]5 their option to purchase additional Convertible Notes pursuant to the Purchase Agreement (as defined herein)) pursuant to an Indenture to be dated February 5, 2021 between Counterparty and UMB Bank, National Association, as trustee (the “Indenture”).  In the event of any inconsistency between the terms defined in the Offering Memorandum, the Indenture and this Confirmation, this Confirmation shall govern.  The parties acknowledge that this Confirmation is entered into on the date hereof with the understanding that (i) definitions set forth in the Indenture which are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein will conform in all material respects to the descriptions thereof in the Offering Memorandum.  If any such definitions in the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering Memorandum will govern for purposes of this Confirmation.  The parties further acknowledge that the Indenture section numbers used herein are based on the draft of the Indenture last reviewed by Dealer and Counterparty as of the date of this Confirmation, and if any such section numbers are changed in the Indenture as executed, the parties will amend this Confirmation in good faith and in a commercially reasonable manner to preserve the intent of the parties .  Subject to the foregoing, references to the Indenture herein are references to the Indenture as in effect on the date of its execution, and if the Indenture is amended or supplemented following such date (other than any amendment or supplement (x) pursuant to Section 8.01(I) of the Indenture that, as determined by the Calculation Agent, conforms the Indenture to the description of Convertible Notes in the Offering Memorandum or (y) pursuant to Section 5.09 of the Indenture, subject, in the case of this clause (y), to the second paragraph under “Method of Adjustment” in Section 3, any such amendment or supplement 

1 Include in the Base Call Option Confirmation.
2 Include in the Base Call Option Confirmation.
3 Include in the Additional Call Option Confirmation.
4 Include in the Base Call Option Confirmation.
5 Include in the Additional Call Option Confirmation.

    
1

will be disregarded for purposes of this Confirmation (other than as provided in Section 9(g)(ii) below) unless the parties agree otherwise in writing.
Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below.
1.This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the ISDA 2002 Master Agreement (the “Agreement”) as if Dealer and Counterparty had executed an agreement in such form (but without any Schedule except for (i) the election of US Dollars (“USD”) as the Termination Currency, (ii) the election of the laws of the State of New York as the governing law (without reference to choice of law doctrine) on the Trade Date, (iii) in respect of Section 5(a)(vi) of the Agreement, (a) the “Cross Default” provisions shall apply to Dealer with a “Threshold Amount” of three percent of the shareholders’ equity of Dealer’s ultimate parent as of the Trade Date, (b) the phrase “or becoming capable at such time of being declared” shall be deleted from clause (1) and (c) the following language shall be added to the end of such Section: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature; (y) funds were available to enable the party to make the payment when due; and (z) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”, and (iv) the term “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of a party’s banking business).  In the event of any inconsistency between provisions of the Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that no transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement.
2.The terms of the particular Transaction to which this Confirmation relates are as follows:
General Terms.
Trade Date:    [February 2][February 3], 2021
Effective Date:    The closing date of the [initial]6 issuance of the Convertible Notes [issued pursuant to the option to purchase additional Convertible Notes exercised on the date hereof]7, subject to Section 9(s).
Option Style:    “Modified American”, as described under “Procedures for Exercise” below
Option Type:    Call
Buyer:    Counterparty
Seller:    Dealer
Shares:    The common stock of Counterparty, par value USD 0.001 per share  (Exchange symbol “MITK”).
Number of Options:    [_______].  For the avoidance of doubt, the Number of Options shall be reduced by any Options exercised by Counterparty.  In no event will the Number of Options be less than zero.
Applicable Percentage:    [__]%
Option Entitlement:    A number equal to the product of the Applicable Percentage and 47.9731.
Strike Price:    USD 20.8450

6 Include in the Base Call Option Confirmation.
7 Include in the Additional Call Option Confirmation.
2
    
    

Premium:     USD [______] 
Premium Payment Date:     February 5, 2021
Exchange:     The Nasdaq Capital Market
Related Exchange(s):     All Exchanges; provided that Section 1.26 of the Equity Definitions shall be amended to add the words “United States” before the word “exchange” in the tenth line of such section.
Excluded Provisions:    Section 5.06 and Section 5.07 of the Indenture.
Procedures for Exercise.
Conversion Date:    With respect to any conversion of a Convertible Note, the date on which the Holder (as such term is defined in the Indenture) of such Convertible Note satisfies all of the requirements for conversion thereof as set forth in Section 5.02(A) of the Indenture; provided that if Counterparty has not delivered to Dealer a related Notice of Exercise, then in no event shall a Conversion Date be deemed to occur hereunder (and no Option shall be exercised or deemed to be exercised hereunder) with respect to any surrender of a Convertible Note for conversion in respect of which Counterparty has elected to designate a financial institution for exchange in lieu of conversion of such Convertible Note pursuant to Section 5.08 of the Indenture.
Free Convertibility Date:    August 1, 2025
Expiration Time:     The Valuation Time
Expiration Date:     February 1, 2026, subject to earlier exercise.
Multiple Exercise:    Applicable, as described under “Automatic Exercise” below.
Automatic Exercise:     Notwithstanding Section 3.4 of the Equity Definitions, on each Conversion Date, in respect of which a Conversion Notice (as defined in the Indenture) that is effective as to Counterparty has been delivered by the relevant converting Holder, a number of Options equal to [(i)] the number of Convertible Notes in denominations of USD 1,000 as to which such Conversion Date has occurred [minus (ii) the number of Options that are or are deemed to be automatically exercised on such Conversion Date under the Base Call Option Transaction Confirmation letter agreement dated February 2, 2021 between Dealer and Counterparty (the “Base Call Option Confirmation”),]8 shall be deemed to be automatically exercised; provided that such Options shall be exercised or deemed exercised only if Counterparty has provided a Notice of Exercise to Dealer in accordance with “Notice of Exercise” below.
    Notwithstanding the foregoing, in no event shall the number of Options that are exercised or deemed exercised hereunder exceed the Number of Options.

8 Include for Additional Call Option Confirmation only.
3
    
    

Notice of Exercise:    Notwithstanding anything to the contrary in the Equity Definitions or under “Automatic Exercise” above, in order to exercise any Options, Counterparty must notify Dealer in writing before 5:00 p.m. (New York City time) on the Scheduled Valid Day immediately preceding the scheduled first day of the Settlement Averaging Period for the Options being exercised (the “Notice Deadline”) of (i) the number of such Options and, if applicable, whether such exercise relates to the conversion of Convertible Notes in connection with which holders thereof are entitled to receive additional Shares and/or cash pursuant to the adjustments to the Conversion Rate set forth in Section 5.07 of the Indenture, (ii) the scheduled first day of the Settlement Averaging Period and the scheduled Settlement Date, (iii) the Relevant Settlement Method for such Options, and (iv) if the settlement method for the related Convertible Notes is not Settlement in Cash (each as defined below), the fixed amount of cash per Convertible Note that Counterparty has elected to deliver to Holders (as such term is defined in the Indenture) of the related Convertible Notes (the “Specified Cash Amount”); provided that in respect of any Options relating to Convertible Notes with a Conversion Date occurring on or after the Free Convertibility Date, (A) such notice may be given on or prior to the second Scheduled Valid Day immediately preceding the Expiration Date and need only specify the information required in clause (i) above, and (B) if the Relevant Settlement Method for such Options is (x) Net Share Settlement and the Specified Cash Amount is not USD 1,000, (y) Cash Settlement or (z) Combination Settlement, Dealer shall have received a separate notice (the “Notice of Final Settlement Method”) in respect of all such Convertible Notes before 5:00 p.m. (New York City time) on the Free Convertibility Date specifying the information required in clauses (iii) and (iv) above.  Counterparty acknowledges its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange Act (as defined below) and the rules and regulations thereunder, in respect of any election of a settlement method with respect to the Convertible Notes.
Notwithstanding anything to the contrary herein or in the Equity Definitions, any Notice of Exercise and the related exercise of the related Options shall be effective if given after the Notice Deadline but prior to 5:00 p.m. (New York City time) on the fifth Exchange Business Day following the Notice Deadline and, in respect of any Options in respect of which such notice is delivered after the relevant Notice Deadline pursuant to this paragraph, the Calculation Agent shall have the right to (i) postpone the Settlement Date and (ii) adjust the number of Shares and/or amount of cash deliverable by Dealer with respect to such Options in a commercially reasonable manner as appropriate to reflect the commercially reasonable 
4
    
    

additional costs (including, but not limited to, hedging mismatches and market losses) and commercially reasonable expenses incurred by Dealer in connection with its commercially reasonable hedging activities (including the unwinding of any commercially reasonable hedge position) as a result of Dealer not having received such notice on or prior to the Notice Deadline.
Valuation Time:    At the close of trading of the regular trading session on the Exchange; provided that if the principal trading session is extended, the Calculation Agent shall determine the Valuation Time in its commercially reasonable discretion.
Market Disruption Event:    Section 6.3(a) of the Equity Definitions is hereby replaced in its entirety by the following:
    “‘Market Disruption Event’ means, in respect of a Share, (i) a failure by the primary United States national or regional securities exchange or market on which the Shares are listed or admitted for trading to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m. (New York City time) on any Scheduled Valid Day for the Shares for more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Shares or in any options contracts or futures contracts relating to the Shares.”
Settlement Terms.  
Settlement Method:    Cash Settlement; provided that, immediately after Counterparty obtains Stockholder Approval (as defined in the Indenture), the Settlement Method, for any Option, shall be Net Share Settlement; provided further that, if after Counterparty obtains Stockholder Approval, the Relevant Settlement Method set forth below for such Option is not Net Share Settlement, then the Settlement Method for such Option shall be such Relevant Settlement Method, but only if Counterparty shall have notified Dealer of the Relevant Settlement Method in the Notice of Exercise or Notice of Final Settlement Method, as applicable, for such Option. 
Relevant Settlement Method:    In respect of any Option:
(i)    if Counterparty has elected (or is deemed to have elected) to settle its conversion obligations in respect of the related Convertible Note in a combination of cash and Shares pursuant to Section 5.03(B)(i)(3) of the Indenture with a Specified Cash Amount equal to USD 1,000, then the Relevant Settlement Method for such Option shall be Net Share Settlement;
(ii)    if Counterparty has elected to settle its conversion obligations in respect of the related Convertible Note in a combination of cash and Shares pursuant to Section 5.03(B)(i)(3)  of the Indenture with a 
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Specified Cash Amount greater than USD 1,000, then the Relevant Settlement Method for such Option shall be Combination Settlement; and
(iii)    if Counterparty has elected to settle its conversion obligations in respect of the related Convertible Note entirely in cash pursuant to Section 5.03(B)(i)(2) of the Indenture (such settlement method, “Settlement in Cash”), then the Relevant Settlement Method for such Option shall be Cash Settlement.
Net Share Settlement:    If Net Share Settlement is applicable to any Option exercised or deemed exercised hereunder, Dealer will deliver to Counterparty, on the relevant Settlement Date for each such Option, a number of Shares (the “Net Share Settlement Amount”) equal to the sum, for each Valid Day during the Settlement Averaging Period for each such Option, of (i) (a) the Daily Option Value for such Valid Day, divided by (b) the Relevant Price on such Valid Day, divided by (ii) the number of Valid Days in the Settlement Averaging Period; provided that in no event shall the Net Share Settlement Amount for any Option exceed a number of Shares equal to the Applicable Limit for such Option divided by the Applicable Limit Price on the Settlement Date for such Option.
    Dealer will pay cash in lieu of delivering any fractional Shares to be delivered with respect to any Net Share Settlement Amount valued at the Relevant Price for the last Valid Day of the Settlement Averaging Period.
Combination Settlement:    If Combination Settlement is applicable to any Option exercised or deemed exercised hereunder, Dealer will pay or deliver, as the case may be, to Counterparty, on the relevant Settlement Date for each such Option:
(i)    cash (the “Combination Settlement Cash Amount”) equal to the sum, for each Valid Day during the Settlement Averaging Period for such Option, of (A) an amount (the “Daily Combination Settlement Cash Amount”) equal to the lesser of (1) the product of (x) the Applicable Percentage and (y) the Specified Cash Amount minus USD 1,000 and (2) the Daily Option Value, divided by (B) the number of Valid Days in the Settlement Averaging Period; provided that if the calculation in clause (A) above results in zero or a negative number for any Valid Day, the Daily Combination Settlement Cash Amount for such Valid Day shall be deemed to be zero; and
(ii)    Shares (the “Combination Settlement Share Amount”) equal to the sum, for each Valid Day during the Settlement Averaging Period for such Option, of a number of Shares for such Valid Day (the “Daily Combination Settlement Share Amount”) equal to (A) (1) the Daily Option Value 
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on such Valid Day minus the Daily Combination Settlement Cash Amount for such Valid Day, divided by (2) the Relevant Price on such Valid Day, divided by (B) the number of Valid Days in the Settlement Averaging Period; provided that if the calculation in sub-clause (A)(1) above results in zero or a negative number for any Valid Day, the Daily Combination Settlement Share Amount for such Valid Day shall be deemed to be zero; provided that in no event shall the sum of (x) the Combination Settlement Cash Amount for any Option and (y) the Combination Settlement Share Amount for such Option multiplied by the Applicable Limit Price on the Settlement Date for such Option, exceed the Applicable Limit for such Option.
    Dealer will pay cash in lieu of delivering any fractional Shares to be delivered with respect to any Combination Settlement Share Amount valued at the Relevant Price for the last Valid Day of the Settlement Averaging Period.
Cash Settlement:    If Cash Settlement is applicable to any Option exercised or deemed exercised hereunder, in lieu of Section 8.1 of the Equity Definitions, Dealer will pay to Counterparty, on the relevant Settlement Date for each such Option, an amount of cash (the “Cash Settlement Amount”) equal to the sum, for each Valid Day during the Settlement Averaging Period for such Option, of (i) the Daily Option Value for such Valid Day, divided by (ii) the number of Valid Days in the Settlement Averaging Period; provided that in no event shall the Cash Settlement Amount exceed the Applicable Limit for such Option.  
Daily Option Value:    For any Valid Day, an amount equal to (i) the Option Entitlement on such Valid Day, multiplied by (ii) the Relevant Price on such Valid Day less the Strike Price on such Valid Day; provided that if the calculation contained in clause (ii) above results in a negative number, the Daily Option Value for such Valid Day shall be deemed to be zero.  In no event will the Daily Option Value be less than zero.
Make-Whole Adjustment:    Notwithstanding anything to the contrary herein, in respect of any exercise of Options relating to a conversion of Convertible Notes for which additional Shares will be added to the “Conversion Rate” (as defined in the Indenture) as determined pursuant to Section 5.07 of the Indenture, the Daily Option Value shall be calculated as if the Option Entitlement included the Applicable Percentage of the number of such additional Shares as determined with reference to the adjustment set forth in such Section 5.07 of the Indenture; provided that if the sum of (i) the product of (a) the number of Shares (if any) deliverable by Dealer to Counterparty per exercised Option and (b) the Applicable Limit Price on the Settlement Date and (ii) the amount of cash (if any) payable by Dealer to Counterparty per exercised Option would otherwise 
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exceed the amount per Option, as determined by the Calculation Agent, that would be payable by Dealer under Section 6 of the Agreement if (x) the relevant  Conversion Date were an Early Termination Date resulting from an Additional Termination Event with respect to which the Transaction was the sole Affected Transaction and Counterparty was the sole Affected Party and (y) Section 5.07 of the Indenture were deleted, then each Daily Option Value shall be proportionately reduced to the extent necessary to eliminate such excess.
Applicable Limit:    For any Option, an amount of cash equal to the Applicable Percentage multiplied by the excess of (i) the aggregate of (A) the amount of cash, if any, paid to the Holder of the related Convertible Note upon conversion of such Convertible Note and (B) the number of Shares, if any, delivered to the Holder of the related Convertible Note upon conversion of such Convertible Note multiplied by the Applicable Limit Price on the Settlement Date for such Option, over (ii) USD 1,000.
Applicable Limit Price:    On any day, the opening price as displayed under the heading “Op” on Bloomberg page MITK <equity> (or any successor thereto).
Valid Day:    A day on which (i) there is no Market Disruption Event and (ii) trading in the Shares generally occurs on  the principal U.S. national or regional securities exchange on which the Shares are then listed or, if the Shares are not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Shares are then traded. If the Shares are not so listed or traded, “Valid Day” means a Business Day.
Scheduled Valid Day:    A day that is scheduled to be a Valid Day on the principal U.S. national or regional securities exchange on which the Shares are then listed or, if the Shares are not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Shares are then traded.  If the Shares are not so listed or traded, “Scheduled Valid Day” means a Business Day.
Business Day:    Any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York is authorized or required by law, regulation or executive order to close or be closed.  
Relevant Price:    On any Valid Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page MITK <equity> AQR (or its equivalent successor if such page is not available) in respect of the period from the scheduled opening time of the Exchange to the Scheduled Closing Time of the Exchange on such Valid Day (or if such volume-weighted average price is unavailable, the market value of one Share on such Valid Day, as determined by the Calculation Agent in good faith and in a commercially reasonable manner using, if practicable, a volume-weighted average method).  The Relevant Price 
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will be determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours.
Settlement Averaging Period:    For any Option:
(i)    if the related Conversion Date occurs prior to the Free Convertibility Date, the 40 consecutive Valid Days commencing on, and including, the third Valid Day following such Conversion Date; or
(ii)    if the related Conversion Date occurs on or after the Free Convertibility Date, the 40 consecutive Valid Days commencing on, and including, the 41st Scheduled Valid Day immediately prior to the Expiration Date.
Settlement Date:    For any Option, the second Business Day immediately following the final Valid Day of the Settlement Averaging Period for such Option.
Settlement Currency:    USD
Other Applicable Provisions:     The provisions of Sections 9.1(c), 9.8, 9.9 and 9.11 of the Equity Definitions will be applicable, except that all references in such provisions to “Physically-settled” shall be read as references to “Share Settled”.  “Share Settled” in relation to any Option means that Net Share Settlement or Combination Settlement is applicable to that Option.
Representation and Agreement:    Notwithstanding anything to the contrary in the Equity Definitions (including, but not limited to, Section 9.11 thereof), the parties acknowledge that (i) any Shares delivered to Counterparty shall be, upon delivery, subject to restrictions and limitations arising from Counterparty’s status as issuer of the Shares under applicable securities laws, (ii) Dealer may deliver any Shares required to be delivered hereunder in certificated form in lieu of delivery through the Clearance System and (iii) any Shares delivered to Counterparty may be “restricted securities” (as defined in Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”)).
3.Additional Terms applicable to the Transaction.
Adjustments applicable to the Transaction:
Potential Adjustment Events:    Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means an occurrence of any event or condition, as set forth in any Dilution Adjustment Provision, that would result in an adjustment under the Indenture to the “Conversion Rate” or the composition of a “unit of Reference Property” or to any “Last Reported Sale Price”, “Daily VWAP,” “Daily Conversion Value” or “Daily Settlement Amount” (each as defined in the Indenture).  For the avoidance of doubt, Dealer shall not have any delivery or payment obligation hereunder, and no adjustment shall be made to the terms of the Transaction, on account of (x) any distribution of cash, 
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property or securities by Counterparty to holders of the Convertible Notes (upon conversion or otherwise) or (y) any other transaction in which holders of the Convertible Notes are entitled to participate, in each case, in lieu of an adjustment under the Indenture of the type referred to in the immediately preceding sentence (including, without limitation, pursuant to the proviso to the first sentence of Section 5.05(A)(iii) of the Indenture or the proviso to the first sentence of Section 5.05(A)(iv) of the Indenture). 
Method of Adjustment:     Calculation Agent Adjustment, which means that, notwithstanding Section 11.2(c) of the Equity Definitions (and, for the avoidance of doubt, in lieu of any adjustments pursuant to such Section), upon any Potential Adjustment Event, the Calculation Agent, acting in good faith and commercially reasonably with reference to the relevant provisions of the Indenture, shall make a corresponding adjustment in respect of any adjustment to the Convertible Notes to any one or more of the Strike Price, Number of Options, Option Entitlement and any other variable relevant to the exercise, settlement or payment for the Transaction as determined by reference to the Dilution Adjustment Provisions, to the extent an adjustment is required under the Indenture. 
    Notwithstanding the foregoing and “Consequences of Merger Events / Tender Offers” below:
(i)    if the Calculation Agent, acting in good faith and in a commercially reasonable manner, disagrees with any adjustment to the Convertible Notes pursuant to the terms and provisions of the Indenture that is the basis of any calculation hereunder and that involves an exercise of discretion by Counterparty or its board of directors (including, without limitation, pursuant to Section 5.05(H) of the Indenture, Section 5.05(A)(iii) of the Indenture, Section 5.09 of the Indenture or any supplemental indenture entered into thereunder or in connection with any proportional adjustment or the determination of the fair value of any securities, property, rights or other assets), then in each such case, the Calculation Agent will determine the adjustment to be made to any one or more of the Strike Price, Number of Options, Option Entitlement and any other variable relevant to the exercise, settlement or payment for the Transaction in a commercially reasonable manner with reference to the relevant provisions of the Indenture; provided that, notwithstanding the foregoing, if any Potential Adjustment Event occurs during the Settlement Averaging Period but no adjustment was made to any Convertible Note under the Indenture because the relevant Holder (as such term is defined in the Indenture) was 
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deemed to be a record owner of the underlying Shares on the related Conversion Date, then the Calculation Agent shall make a commercially reasonable adjustment, consistent with the methodology set forth in the Indenture as determined by it, to the terms hereof in order to account for such Potential Adjustment Event;
(ii)    in connection with any Potential Adjustment Event as a result of an event or condition set forth in Section 5.05(A)(ii) of the Indenture or Section 5.05(A)(iii)(1) of the Indenture where, in either case, the period for determining “Y” (as such term is used in Section 5.05(A)(ii) of the Indenture) or “SP” (as such term is used in Section 5.05(A)(iii)(1) of the Indenture), as the case may be, begins before Counterparty has publicly announced the event or condition giving rise to such Potential Adjustment Event, then the Calculation Agent shall have the right to adjust, in good faith and in a commercially reasonable manner, taking into account the terms of the Indenture, any variable relevant to the exercise, settlement or payment for the Transaction as appropriate to reflect the commercially reasonable costs (including, but not limited to, hedging mismatches and market losses) and commercially reasonable expenses incurred by Dealer in connection with its commercially reasonable hedging activities as a result of such event or condition not having been publicly announced prior to the beginning of such period; and
(iii)    if any Potential Adjustment Event is declared and (a) the event or condition giving rise to such Potential Adjustment Event is subsequently amended, modified, cancelled or abandoned, (b) the “Conversion Rate” (as defined in the Indenture) is otherwise not adjusted at the time or in the manner contemplated by the relevant Dilution Adjustment Provision based on such declaration or (c) the “Conversion Rate” (as defined in the Indenture) is adjusted as a result of such Potential Adjustment Event and subsequently re-adjusted (each of clauses (a), (b) and (c), a “Potential Adjustment Event Change”) then, in each case, the Calculation Agent shall have the right to adjust, in good faith and in a commercially reasonable manner, taking into account the terms of the Indenture, any variable relevant to the exercise, settlement or payment for the Transaction as appropriate to reflect the commercially reasonable costs (including, but not limited to, hedging mismatches and market losses) and commercially reasonable expenses 
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incurred by Dealer in connection with its commercially reasonable hedging activities as a result of such Potential Adjustment Event Change.
Dilution Adjustment Provisions:    Sections 5.05(A)(i), (A)(ii), (A)(iii), (A)(iv), (A)(v) and Section 5.05(H) of the Indenture.
Extraordinary Events applicable to the Transaction:
Merger Events:    Applicable; provided that notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in the definition of “Common Stock Change Event” in Section 5.09 of the Indenture.
Tender Offers:    Applicable; provided that notwithstanding Section 12.1(d) of the Equity Definitions, a “Tender Offer” means the occurrence of any event or condition set forth in Section 5.05(A)(v) of the Indenture.
Consequences of Merger Events /
Tender Offers:    Notwithstanding Section 12.2 and Section 12.3 of the Equity Definitions, upon the occurrence of a Merger Event or a Tender Offer, the Calculation Agent shall make a corresponding adjustment in respect of any adjustment under the Indenture to any one or more of the nature of the Shares (in the case of a Merger Event), Strike Price, Number of Options, Option Entitlement and any other variable relevant to the exercise, settlement or payment for the Transaction, subject to the second paragraph under “Method of Adjustment”; provided, however, that (x) such adjustment shall be made without regard to any adjustment to the Conversion Rate pursuant to any Excluded Provision and (y) the Calculation Agent shall limit or alter any such adjustment referenced in this paragraph to maintain the fair value of the Transaction as a result of such adjustment; and, notwithstanding the foregoing, if the Calculation Agent in good faith disagrees with any adjustment pursuant to the terms of the Indenture that is the basis of any adjustment hereunder and that involves an exercise of discretion by Counterparty or its board of directors (including, without limitation, pursuant to Section 5.09 of the Indenture), then the Calculation Agent will determine the adjustment to be made to any one or more of the nature of the Shares, Strike Price, Number of Options, Option Entitlement and any other variable relevant to the exercise, settlement or payment for the Transaction in a commercially reasonable manner; and provided further that if, with respect to a Merger Event or a Tender Offer, (i) the consideration for the Shares includes (or, at the option of a holder of Shares, may include) shares of an entity or person that is not a corporation or is not organized under the laws of the United States, any State thereof or the District of Columbia or (ii) the Counterparty to the Transaction following such Merger Event or Tender Offer will not be the Issuer or will not be a corporation organized under the 
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laws of the United States, any State thereof or the District of Columbia, then, in either case, Cancellation and Payment (Calculation Agent Determination) may apply at Dealer’s commercially reasonable election; provided further that, for the avoidance of doubt, adjustments shall be made pursuant to the provisions set forth above regardless of whether any Merger Event or Tender Offer gives rise to an Early Conversion.
Nationalization, Insolvency or Delisting:    Cancellation and Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The Nasdaq Global Select Market, The Nasdaq Global Market or The Nasdaq Capital Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The Nasdaq Global Select Market, The Nasdaq Global Market or The Nasdaq Capital Market (or their respective successors), such exchange or quotation system shall thereafter be deemed to be the Exchange.
Additional Disruption Events:
Change in Law:    Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation”, (ii) replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Position”, (iii) replacing the parenthetical beginning after the word “regulation” in the second line thereof the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)” and (iv) adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date” immediately following the word “Transaction” in clause (X) thereof.
Failure to Deliver:    Applicable
Hedging Disruption:    Applicable; provided that:
(i)    Section 12.9(a)(v) of the Equity Definitions is hereby amended by inserting the following two phrases at the end of such Section:
    “For the avoidance of doubt, the term “equity price risk” shall be deemed to include, but shall not be limited to, stock price and volatility risk. And, for the further avoidance of doubt, any such transactions or assets referred to in phrases (A) or 
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(B) above must be available on commercially reasonable pricing terms.”; and
(ii)    Section 12.9(b)(iii) of the Equity Definitions is hereby amended by inserting in the third line thereof,  after the words “to terminate the Transaction”, the words “or, if a portion of the Transaction is affected by such Hedging Disruption (as commercially reasonably determined by the Hedging Party), such portion of the Transaction affected by such Hedging Disruption”.
Increased Cost of Hedging:    Not Applicable
Hedging Party:    For all applicable Additional Disruption Events, Dealer.
Determining Party:    For all applicable Extraordinary Events, Dealer.
Non-Reliance:    Applicable 
Agreements and Acknowledgments
Regarding Hedging Activities:    Applicable
Additional Acknowledgments:    Applicable
4.Calculation Agent.     Dealer, whose adjustments, determinations and calculations shall be made in good faith and in a commercially reasonable manner; provided that, following the occurrence and during the continuance of an Event of Default of the type described in Section 5(a)(vii) of the Agreement with respect to which Dealer is the sole Defaulting Party, if the Calculation Agent fails to timely make any calculation, adjustment or determination required to be made by the Calculation Agent hereunder or to perform any obligation of the Calculation Agent hereunder and such failure continues for five (5) Exchange Business Days following notice to the Calculation Agent by Counterparty of such failure, Counterparty shall have the right to designate a nationally recognized third-party dealer in over-the-counter corporate equity derivatives to act, during the period commencing on the date such Event of Default occurred and ending on the Early Termination Date with respect to such Event of Default (or, if earlier, the date on which such Event of Default is no longer continuing), as the Calculation Agent. Following any determination, adjustment or calculation by the Calculation Agent hereunder, upon a request by Counterparty, the Calculation Agent shall promptly (but in any event within five Scheduled Trading Days) provide to Counterparty by e-mail to the e-mail address provided by Counterparty in such request a report (in a commonly used file format for the storage and manipulation of financial data) displaying in reasonable detail the basis for such determination, adjustment or calculation (including any assumptions used in making such determination, adjustment or 
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calculation), it being understood that the Calculation Agent shall not be obligated to disclose any proprietary models used by it for such determination, adjustment or calculation or any information that may be proprietary or confidential or subject to an obligation not to disclose such information. 
5.Account Details.

(a)Account for payments to Counterparty:

To be provided by Counterparty.

Account for delivery of Shares to Counterparty:

To be provided by Counterparty.

(b)Account for payments to Dealer:

To be provided by Dealer.

6.Offices.

(a)The Office of Counterparty for the Transaction is:  Inapplicable, Counterparty is not a Multibranch Party.

(b)The Office of Dealer for the Transaction is: [______][Inapplicable, Dealer is not a Multibranch Party.]

7.Notices.    

(a)Address for notices or communications to Counterparty:

Mitek Systems, Inc.
600 B Street, Suite 100
San Diego, California 92101 
Attention:     Chief Financial Officer
Telephone No.:    (619) 269-6800

(b)Address for notices or communications to Dealer:

[  ]

8.Representations and Warranties.
Each of the representations and warranties of Counterparty set forth in Section 4 of the Purchase Agreement (the “Purchase Agreement”) dated as of February 2, 2021, between Counterparty and Jefferies LLC and William Blair & Company, LLC, as representatives of the Initial Purchasers party thereto (the “Initial Purchasers”), are true and correct and are hereby deemed to be repeated to Dealer as if set forth herein.  Counterparty hereby further represents and warrants to Dealer (unless otherwise specified therein) on the date hereof and on and as of the Premium Payment Date that:  
(a)Counterparty has all necessary corporate power and authority to execute, deliver and perform its obligations in respect of the Transaction; such execution, delivery and performance have been duly authorized by all necessary corporate action on Counterparty’s part; and this Confirmation has been duly and validly executed and delivered by Counterparty and constitutes its valid and 
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binding obligation, enforceable against Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in equity) and except that rights to indemnification and contribution hereunder may be limited by federal or state securities laws or public policy relating thereto.
(b)Neither the execution and delivery of this Confirmation nor the incurrence or performance of obligations of Counterparty hereunder will conflict with or result in a breach of the certificate of incorporation or bylaws (or any equivalent documents) of Counterparty, or any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or agency, or any agreement or instrument filed as an exhibit to Counterparty’s Annual Report on Form 10-K for the year ended September 30, 2020, as updated by any subsequent filings, to which Counterparty is a party or by which Counterparty is bound or to which Counterparty is subject, any such agreement or instrument.
(c)To Counterparty’s knowledge, no consent, approval, authorization, or order of, or filing with, any governmental agency or body or any court is required in connection with the execution, delivery or performance by Counterparty of this Confirmation, except such as have been obtained or made and such as may be required under the Securities Act or state securities laws.
(d)Each of the Counterparty and its affiliates is not and, after consummation of the transactions contemplated hereby, will not be required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
(e)Each of Counterparty and Dealer represents that it is an “eligible contract participant” (as such term is defined in Section 1a(18) of the Commodity Exchange Act, as amended, other than a person that is an eligible contract participant under Section 1a(18)(C) of the Commodity Exchange Act).
(f)Counterparty is not, on the date hereof, aware of any material non-public information with respect to Counterparty or the Shares.
(g)To Counterparty’s knowledge, no U.S. state or local law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement applicable directly as a result of the specific industry of the Counterparty (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares, other than any regulation that Dealer would be subject to as a result of it being regulated entity under various applicable law, including U.S. securities laws and FINRA.
(h)Counterparty (A) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; (B) will exercise independent judgment in evaluating the recommendations of Dealer, its Affiliate or its associated persons, unless it has otherwise notified Dealer or its Affiliate in writing; and (C) as of the Trade Date, has total assets of at least USD 50 million.
(i)The assets of Counterparty do not constitute “plan assets” under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Department of Labor Regulations promulgated thereunder or similar law. The parties agree that (i) a breach or potential breach of the foregoing representation shall not constitute an Event of Default under the Agreement.
(j)Counterparty acknowledges that the board of directors of Counterparty has granted the approval necessary to cause the restrictions set forth in Section 203 of the Delaware General Corporation Law (the “DGCL”) to be inapplicable to the Transaction, including, without limitation, transactions in, or linked to, Counterparty’s securities to be effected by Dealer in connection with hedging the Transaction, and as a result neither Dealer nor any of its affiliates or associates shall 
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be subject to the restrictions in the DGCL as an “interested stockholder” of Counterparty by virtue of (i) its entry into the Transaction or (ii) any act that Dealer may take in furtherance of the Transaction (including without limitation the hedging transactions to be effected by Dealer or its affiliates in connection with the Transaction, whether in Shares or transactions that references the Shares) or (iii) its purchase of, as the case may be, and/or marketmaking in, the Convertible Notes,
(k)On each of the Trade Date, the Premium Payment Date and immediately after giving effect to the Transaction on the Premium Payment Date, (A) the value of the total assets of Counterparty is greater than the sum of the total liabilities (including contingent liabilities) of Counterparty, (B) the capital of Counterparty is adequate to conduct the business of Counterparty, (C) Counterparty has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it will, incur debt beyond its ability to pay as such debts mature, and (D) Counterparty is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)).
(l)[Each party acknowledges and agrees to be bound by the Conduct Rules of the Financial Industry Regulatory Authority, Inc. applicable to transactions in options, and further agrees not to violate the position and exercise limits set forth therein.
(m)Counterparty represents and warrants that it has received, read and understands the OTC Options Risk Disclosure Statement and a copy of the most recent disclosure pamphlet prepared by The Options Clearing Corporation entitled “Characteristics and Risks of Standardized Options”.]
9.Other Provisions.
(a)Opinions.  Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Premium Payment Date, with respect to due incorporation, existence and good standing of Counterparty in Delaware, due authorization and delivery of this Confirmation, and, in respect of the execution, delivery and performance of this Confirmation, the absence of conflict with any material agreement and the Issuer’s charter documents, enforceability of the obligations of Counterparty under this Confirmation, subject to bankruptcy, insolvency, and similar laws affecting creditors’ rights generally, as reasonably acceptable to Dealer; provided that any such opinion of counsel will contain customary exceptions and qualifications.  Delivery of such opinion to Dealer shall be a condition precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to each obligation of Dealer under Section 2(a)(i) of the Agreement.
(b)Repurchase and Conversion Rate Adjustment Notices.  Counterparty shall, at least one Scheduled Trading Day prior to any day on which Counterparty effects any repurchase of Shares (a “Repurchase Event”) or otherwise engages in any transaction or event (a “Conversion Rate Adjustment Event”) that could reasonably be expected to lead to an increase in the “Conversion Rate” (as defined in the Indenture), give Dealer a written notice of such Repurchase Event or Conversion Rate Adjustment Event (a “Relevant Event Notice”) on such day if following such Repurchase Event or Conversion Rate Adjustment Event, the Notice Percentage would reasonably be expected to be (i) greater than 9.22% and (ii) greater by 0.5% than the Notice Percentage included in the immediately preceding Relevant Event Notice (or, in the case of the first such Relevant Event Notice or (iii) greater by 0.5% than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day is the fraction, expressed as a percentage, the numerator of which is the sum of (a) the product of the Number of Options and the Option Entitlement and (b) the number of Shares underlying any other similar call option transactions sold by Dealer to Counterparty and the denominator of which is the number of Shares outstanding on such day.  Counterparty agrees to indemnify and hold harmless Dealer and its affiliates and their respective officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses (including losses relating to Dealer’s hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider”, including without limitation, any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to the Transaction), claims, damages, judgments, liabilities and reasonable expenses (including reasonable attorney’s fees), 
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joint or several, which an Indemnified Person may become subject to, in each case, as a result of Counterparty’s failure to provide Dealer with a Relevant Event Notice on the day and in the manner specified in this paragraph, and to reimburse, within 30 days, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with investigating, preparing for, providing testimony or other evidence in connection with or defending any of the foregoing.  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against the Indemnified Person as a result of Counterpart’s failure to provide Dealer with a Repurchase Notice in accordance with this paragraph, such Indemnified Person shall promptly notify Counterparty in writing, and Counterparty, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others Counterparty may designate in such proceeding and shall pay the reasonable fees and expenses of such counsel related to such proceeding.  Counterparty shall not be liable for any settlement of any proceeding contemplated by this paragraph that is effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to indemnify any Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  Counterparty shall not, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding contemplated by this paragraph that is in respect of which any Indemnified Person is or expects to be a party and indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms reasonably satisfactory to such Indemnified Person.  If the indemnification provided for in this paragraph is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then Counterparty hereunder, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities.  The remedies provided for in this paragraph (b) are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.  The indemnity and contribution agreements contained in this paragraph shall remain operative and in full force and effect regardless of the termination of the Transaction.
(c)Regulation M.  Counterparty is not on the Trade Date engaged in a distribution, as such term is used in Regulation M under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of any securities of Counterparty, other than a distribution meeting the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M.  Counterparty shall not, until the second Scheduled Trading Day immediately following the Trade Date, engage in any such distribution.
(d)No Manipulation.  Counterparty is not entering into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) in violation of the Exchange Act.
(e)Transfer or Assignment.  
(i)Counterparty shall have the right to transfer or assign its rights and obligations hereunder with respect to all, but not less than all, of the Options hereunder (such Options, the “Transfer Options”); provided that such transfer or assignment shall be subject to reasonable conditions that Dealer may impose, including but not limited, to the following conditions:
(1)With respect to any Transfer Options, Counterparty shall not be released from its notice and indemnification obligations pursuant to Section 9(b) or any obligations under Section 9(l) or 9(q) of this Confirmation;
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(2)Any Transfer Options shall only be transferred or assigned to a third party that is a United States person (as defined in the Internal Revenue Code of 1986, as amended (the “Code”));
(3)Such transfer or assignment shall be effected on terms, including any reasonable undertakings by such third party (including, but not limited to, an undertaking with respect to compliance with applicable securities laws in a manner that, in the reasonable judgment of Dealer, will not expose Dealer to material risks under applicable securities laws) and execution of any documentation and delivery of legal opinions with respect to securities laws and other matters by such third party and Counterparty, as are requested and reasonably satisfactory to Dealer;
(4)Dealer will not, as a result of such transfer and assignment, be required to pay the transferee on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater than an amount that Dealer would have been required to pay to Counterparty in the absence of such transfer and assignment except to the extent that the greater amount is due to a Change in Tax Law after the date of such transfer or assignment;
(5)An Event of Default, Potential Event of Default or Termination Event will not occur as a result of such transfer and assignment;
(6)Without limiting the generality of clause (B), Counterparty shall cause the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Dealer to permit Dealer to determine that results described in clauses (D) and (E) will not occur upon or after such transfer and assignment; and
(7)Counterparty shall be responsible for all commercially reasonable costs and expenses, including commercially reasonable counsel fees, incurred by Dealer in connection with such transfer or assignment.
(ii)Dealer may not transfer or assign all or any part of its rights or obligations under the Transaction without Counterparty’s consent; provided that Dealer may transfer or assign all or any part of its rights or obligations hereunder, (A) without Counterparty’s consent to an affiliate of Dealer (1) that has a long-term issuer rating at the time of such transfer or assignment that is equal to or better than Dealer’s credit rating at the time of such transfer or assignment, or (2) whose obligations hereunder will be guaranteed, pursuant to the terms of a customary guarantee in a form used by Dealer generally for similar transactions, by Dealer or Dealer’s ultimate parent, or (B) with Counterparty’s consent (such consent not to be unreasonably withheld or delayed) to any other third party with a long-term issuer rating equal to or better than the greater of (1) the credit rating of Dealer at the time of the transfer and (2) A- by Standard and Poor’s Rating Group, Inc. or its successor (“S&P”), or A3 by Moody’s Investor Service, Inc. (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a substitute rating agency mutually agreed by Counterparty and Dealer; provided that, at the time of such transfer or assignment either (i) the transferee in any such transfer or assignment is a “dealer in securities” within the meaning of Section 475(c)(1) of the Code or (ii) the transfer or assignment does not result in a deemed exchange by Counterparty within the meaning of Section 1001 of the Code; and provided further that Dealer shall provide notice to Counterparty following any such transfer in (A). Without limiting the foregoing, no transfer or assignment by Dealer shall be permitted hereunder that would result in the occurrence of an Event of Default, Potential Event of Default or Termination Event.  Dealer covenants and agrees that it shall use good faith efforts to maintain at all times prior to the Expiration Date the Section 16 Percentage below [8.5][9.0]% and the Share Amount below the Applicable Share Limit.  If at any time at which (A) the Section 
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16 Percentage exceeds [8.5][9.0]%, (B) the Option Equity Percentage exceeds 14.5%, or (C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such condition described in clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer is unable after using its commercially reasonable efforts to effect a transfer or assignment of Options to a third party on pricing terms reasonably acceptable to Dealer and within a time period reasonably acceptable to Dealer such that (after giving effect to such transfer or assignment and any resulting change in Dealer’s commercially reasonable Hedge Positions) no Excess Ownership Position exists, then Dealer may designate any Exchange Business Day as an Early Termination Date with respect to a portion of the Transaction (the “Terminated Portion”), such that (after giving effect to such transfer or assignment and any resulting change in Dealer’s commercially reasonable Hedge Positions) following such partial termination no Excess Ownership Position exists.  In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Options equal to the number of Options underlying the Terminated Portion, (2) Counterparty were the sole Affected Party with respect to such partial termination and (3) the Terminated Portion were the sole Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j) shall apply to any amount that is payable by Dealer to Counterparty pursuant to this sentence as if Counterparty was not the Affected Party).   The “Section 16 Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Dealer and any of its affiliates or any other person subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act, or any “group” (within the meaning of Section 13 of the Exchange Act) of which Dealer is or may be deemed to be a part beneficially owns (within the meaning of Section 13 of the Exchange Act), without duplication, on such day (or, to the extent that for any reason the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder results in a higher number, such higher number) and (B) the denominator of which is the number of Shares outstanding on such day.  The “Option Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the sum of (1) the product of the Number of Options and the Option Entitlement and (2) the aggregate number of Shares underlying any other call option transactions sold by Dealer to Counterparty, and (B) the denominator of which is the number of Shares outstanding.  The “Share Amount” as of any day is the number of Shares that Dealer and any person whose ownership position would be aggregated with that of Dealer (Dealer or any such person, a “Dealer Person”) under any law, rule, regulation, regulatory order or organizational documents or contracts of Counterparty that are, in each case, applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership under any Applicable Restriction, as determined by Dealer in its commercially reasonable discretion.  The “Applicable Share Limit” means a number of Shares equal to (A) the minimum number of Shares that could give rise to reporting or registration obligations (except for any filings of Form 13F, Schedule 13D or Schedule 13G under the Exchange Act) or other requirements (including obtaining prior approval from any person or entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person, under any Applicable Restriction, as determined by Dealer in its commercially reasonable discretion, minus (B) 1% of the number of Shares outstanding.
(iii)Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any Shares or other securities, or make or receive any payment in cash, to or from Counterparty, Dealer may designate any of its affiliates to purchase, sell, receive or deliver such Shares or other securities, or to make or receive such payment in cash, and otherwise to perform Dealer’s obligations in respect of the Transaction and any such designee may assume such obligations.  Dealer 
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shall be discharged of its obligations to Counterparty to the extent of any such performance.
(f)Staggered Settlement.  If upon advice of counsel with respect to applicable legal and regulatory requirements, including any requirements relating to Dealer’s hedging activities hereunder that would be customarily applicable of transactions of this type, Dealer reasonably determines that it would not be practicable or advisable to deliver, or to acquire Shares to deliver, any or all of the Shares to be delivered by Dealer on any Settlement Date for the Transaction, Dealer may, by notice to Counterparty prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) as follows:
(i)in such notice, Dealer will specify to Counterparty the related Staggered Settlement Dates (the first of which will be such Nominal Settlement Date and the last of which will be no later than the thirtieth (30th) Exchange Business Day following such Nominal Settlement Date) and the number of Shares that it will deliver on each Staggered Settlement Date;
(ii)the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement Dates will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date; and
(iii)if the Net Share Settlement terms or the Combination Settlement terms set forth above were to apply on the Nominal Settlement Date, then the Net Share Settlement terms or the Combination Settlement terms, as the case may be, will apply on each Staggered Settlement Date, except that the Shares otherwise deliverable on such Nominal Settlement Date will be allocated among such Staggered Settlement Dates as specified by Dealer in the notice referred to in clause (i) above.
(g)  Additional Termination Events.
(i)Notwithstanding anything to the contrary in this Confirmation if an event of default with respect to Counterparty occurs under the terms of the Convertible Notes as set forth in Section 7.01 of the Indenture that results in the Convertible Notes being declared due and payable pursuant to the terms of the Indenture, then such acceleration shall constitute an Additional Termination Event applicable to the Transaction and, with respect to such Additional Termination Event, (A) Counterparty shall be deemed to be the sole Affected Party, (B) the Transaction shall be the sole Affected Transaction and (C) Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement.
(ii)Notwithstanding anything to the contrary in this Confirmation, the occurrence of an Amendment Event shall constitute an Additional Termination Event applicable to the Transaction and, with respect to such Additional Termination Event, (A) Counterparty shall be deemed to be the sole Affected Party, (B) the Transaction shall be the sole Affected Transaction and (C) Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section 6(b) of the Agreement. “Amendment Event” means that Counterparty amends, modifies, supplements, waives or obtains a waiver in respect of any term of the Indenture or the Convertible Notes governing the principal amount, coupon, maturity, repurchase obligation of Counterparty, any term relating to conversion of the Convertible Notes (including changes to the conversion rate, conversion rate adjustment provisions, conversion settlement dates or conversion conditions), or any term that would require consent of the holders of not less than 100% of the principal amount of the Convertible Notes to amend (other than, in each case, any amendment or supplement (x) pursuant to Section 8.01(I) of the Indenture that, as determined by the Calculation Agent, conforms the Indenture to the description of Convertible Notes in the Offering Memorandum or (y) pursuant to Section 5.09 of the Indenture), in each case, without the consent of Dealer.
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(iii)Within five Scheduled Trading Days of any Repayment Event (as defined below), Counterparty may notify Dealer of such Repayment Event and the aggregate principal amount of Convertible Notes (the “Repayment Convertible Notes”) subject to such Repayment Event (any such notice, a “Repayment Notice”)[; provided that any “Repayment Notice” delivered to Dealer pursuant to the Base Call Option Confirmation shall be deemed to be a Repayment Notice pursuant to this Confirmation and the terms of such Repayment Notice shall apply, mutatis mutandis, to this Confirmation]9. Counterparty acknowledges its responsibilities under applicable securities laws, and in particular Section 9 and Section 10(b) of the Exchange Act and the rules and regulations thereunder, in respect of any delivery of a Repayment Notice. The receipt by Dealer from Counterparty of any Repayment Notice shall constitute an Additional Termination Event as provided in this Section 9(g)(iii). Upon receipt of any such Repayment Notice, Dealer shall promptly designate an Exchange Business Day following receipt of such Repayment Notice as an Early Termination Date with respect to the portion of the Transaction corresponding to a number of Options (the “Repayment Options”) equal to the lesser of (A) [(x)] the aggregate principal amount of such Convertible Notes specified in such Repayment Notice, divided by USD 1,000, [minus (y) the number of “Repayment Options” (as defined in the Base Call Option Confirmation), if any, that relate to such Convertible Notes (and for the purposes of determining whether any Options under this Confirmation or under the Base Call Option Confirmation will be among the Repayment Options hereunder or under, and as defined in, the Base Call Option Confirmation, the Convertible Notes specified in such Repayment Notice shall be allocated first to the Base Call Option Confirmation until all Options thereunder are exercised or terminated)]10, and (B) the Number of Options as of the date Dealer designates such Early Termination Date and, as of such date, the Number of Options shall be reduced by the number of Repayment Options. Any payment hereunder with respect to such termination (the “Repayment Unwind Payment”) shall be calculated pursuant to Section 6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Transaction and a Number of Options equal to the number of Repayment Options, (2) Counterparty were the sole Affected Party with respect to such Additional Termination Event and (3) the terminated portion of the Transaction were the sole Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j) shall apply to any amount that is payable by Dealer to Counterparty pursuant to this Section 9(g)(iii) as if Counterparty was not the Affected Party). “Repayment Event” means that (i) any Convertible Notes are repurchased, repaid or exchanged (whether in connection with or as a result of a fundamental change, howsoever defined, or for any other reason) by Counterparty or any of its subsidiaries, (ii) any Convertible Notes are delivered to Counterparty or any of its subsidiaries in exchange for delivery of any property or assets of such party (howsoever described), (iii) any principal of any of the Convertible Notes is repaid prior to the final maturity date of the Convertible Notes (for any reason other than as a result of an acceleration of the Convertible Notes that results in an Additional Termination Event pursuant to Section 9(g)(i)), or (iv) any Convertible Notes are exchanged by or for the benefit of the “Holders” (as defined in the Indenture) thereof for any other securities of Counterparty or any of its subsidiaries (or any other property, or any combination thereof) pursuant to any exchange offer or similar transaction.  For the avoidance of doubt, any conversion of Convertible Notes (whether into cash, Shares, “Reference Property” (as defined in the Indenture) or any combination thereof) pursuant to the terms of the Indenture shall not constitute a Repayment Event. For the avoidance of doubt, in determining the amount payable in respect of such Affected Transaction pursuant to Section 6 of the Agreement, the Calculation Agent shall assume (1) the relevant Repayment Event and any conversions, adjustments, agreements, payments, deliveries or acquisitions by or on behalf of Counterparty leading thereto had not occurred, (2) no adjustments to the Conversion Rate have occurred pursuant to any Excluded Provision and (3) the 

9 Insert for Additional Call Option Confirmation.
10 Insert for Additional Call Option Confirmation.
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corresponding Convertible Notes remain outstanding as if the circumstances related to the Repayment Event had not occurred.
(h)Amendments to Equity Definitions.  
(i)Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the words “a material” and adding the phrase “or the Options” at the end of the sentence.
(ii)Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) inserting “(1)” immediately following the word “means” in the first line thereof and (2) inserting immediately prior to the semi-colon at the end of subsection (B) thereof the following words: “or (2) the occurrence of any of the events specified in Section 5(a)(vii)(1) through (9) of the ISDA Master Agreement with respect to that Issuer”.
(iii)Section 12.9(b)(i) of the Equity Definitions is hereby amended by (1) replacing “either party may elect” with “Dealer may elect” and (2) replacing “notice to the other party” with “notice to Counterparty” in the first sentence of such section.
(i)No Netting or Set-off.  The provisions of Section 2(c) of the Agreement shall not apply to the Transaction.  Each party waives any and all rights it may have to set-off delivery or payment obligations it owes to the other party under the Transaction against any delivery or payment obligations owed to it by the other party under any other agreement between parties hereto, by operation of law or otherwise.
(j)Alternative Calculations and Payment on Early Termination and on Certain  Extraordinary Events.  If (a) an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to the Transaction or (b) the Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except as a result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to holders of Shares consists solely of cash, (ii) a Merger Event or Tender Offer that is within Counterparty’s control, or (iii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement, in each case that resulted from an event or events outside Counterparty’s control), and if Dealer would owe any amount to Counterparty pursuant to Section 6(d)(ii) of the Agreement or any Cancellation Amount pursuant to Article 12 of the Equity Definitions (any such amount, a “Payment Obligation”), then Dealer shall satisfy the Payment Obligation by the Share Termination Alternative (as defined below), unless (a) Counterparty gives irrevocable telephonic notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable, of its election that the Share Termination Alternative shall not apply, (b) Counterparty remakes the representation set forth in Section 8(f) as of the date of such election and (c) Dealer agrees, in its sole discretion, to such election, in which case the provisions of Section 12.7 or Section 12.9 of the Equity Definitions, or the provisions of Section 6(d)(ii) of the Agreement, as the case may be, shall apply.  
Share Termination Alternative:    If applicable, Dealer shall deliver to Counterparty the Share Termination Delivery Property on, or within a commercially reasonable period of time after, the date when the relevant Payment Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section 6(d)(ii) and 6(e) of the Agreement, as applicable, in satisfaction of such Payment Obligation in the manner reasonably requested by Counterparty free of payment.
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Share Termination Delivery Property:     A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price.  The Calculation Agent shall adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.
Share Termination Unit Price:     The value of property contained in one Share Termination Delivery Unit, as determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Dealer at the time of notification of the Payment Obligation. For the avoidance of doubt, the parties agree that in determining the Share Termination Delivery Unit Price the Calculation Agent may consider the purchase price paid in connection with the purchase of Share Termination Delivery Property, to the extent doing so results in a commercially reasonable Share Termination Unit Price.
Share Termination Delivery Unit:     One Share or, if the Shares have changed into cash or any other property or the right to receive cash or any other property as the result of a Nationalization, Insolvency or Merger Event (any such cash or other property, the “Exchange Property”), a unit consisting of the type and amount of such Exchange Property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Nationalization, Insolvency or Merger Event, as determined by the Calculation Agent.
Failure to Deliver:     Applicable
Other applicable provisions:     If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9 and 9.11 (as modified above) of the Equity Definitions and the provisions set forth opposite the caption “Representation and Agreement” in Section 2 will be applicable, except that all references in such provisions to “Physically-settled” shall be read as references to “Share Termination Settled” and all references to “Shares” shall be read as references to “Share Termination Delivery Units”.  “Share Termination Settled” in relation to the Transaction means that Share Termination Alternative is applicable to the Transaction.
(k)Waiver of Jury Trial.  Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or proceeding relating to the Transaction.  Each party (i) certifies that no representative, agent or attorney of either party has represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the 
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other party have been induced to enter into the Transaction, as applicable, by, among other things, the mutual waivers and certifications provided herein.
(l)Registration.  Counterparty hereby agrees that if, in the good faith reasonable judgment of Dealer, based on the advice of counsel, the Shares (“Hedge Shares”) acquired by Dealer for the purpose of effecting a commercial reasonable hedge of its obligations pursuant to the Transaction cannot be sold in the public market by Dealer without registration under the Securities Act, Counterparty shall, at its election, either (i) in order to allow Dealer to sell the Hedge Shares in a registered offering, make available to Dealer an effective registration statement under the Securities Act and enter into an agreement, in form and substance reasonably satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered secondary offering of comparable size for an issuer comparable to Counterparty, (B) provide accountant’s “comfort” letters in customary form for a registered secondary offering of comparable size for an issuer comparable to Counterparty, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for a registered secondary offering of comparable size for an issuer comparable to Counterparty and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for a registered secondary offering of comparable size for an issuer comparable to Counterparty; provided, however, that if Dealer, in its sole commercially reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this paragraph shall apply at the election of Counterparty, (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size, in form and substance commercially reasonably satisfactory to Dealer (in which case, the Calculation Agent shall make any commercially reasonable adjustments to the terms of the Transaction that are necessary, in its commercially reasonable judgment, to compensate Dealer for any discount from the public market price of the Shares incurred on the sale of Hedge Shares in a private placement of similar size), or (iii) purchase the Hedge Shares from Dealer at the then-current market price on such Exchange Business Days, and in the amounts and at such time(s), requested by Dealer.  For the avoidance of doubt, under no circumstances shall Counterparty be obligated to make the election described in clause (iii) of the preceding sentence.
(m)Tax Disclosure.  Effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Counterparty relating to such tax treatment and tax structure.
(n)Right to Extend.  Dealer may postpone or add, in whole or in part, any Valid Day or Valid Days during the Settlement Averaging Period or any other date of valuation, payment or delivery by Dealer, with respect to some or all of the Options hereunder, if Dealer reasonably determines (in its commercially reasonable discretion with respect to clause (i) below and upon the advice of counsel with respect to clause (ii) below) that such action is reasonably necessary or appropriate to (i) preserve Dealer’s commercially reasonable hedging or commercially reasonable hedge unwind activity hereunder in light of existing liquidity conditions (but only in the case of a material decrease in liquidity relative to Dealer’s expectations as of the Trade Date), or (ii) enable Dealer to effect transactions in Shares in connection with its commercially reasonable hedging, commercially reasonable hedge unwind or settlement activity hereunder in a manner that would, if Dealer were Counterparty or an affiliated purchaser of Counterparty, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable to Dealer (so long as such policies and procedures would generally be applicable to counterparties similar to Counterparty and transactions similar to the Transaction); provided that no such Valid Day or other date of valuation, payment or delivery may be postponed or added 
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more than 80 Valid Days after the original Valid Day or other date of valuation, payment or delivery, as the case may be.
(o)Status of Claims in Bankruptcy.  Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights against Counterparty with respect to the Transaction that are senior to the claims of common stockholders of Counterparty in any United States bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to the Transaction; provided further that nothing herein shall limit or shall be deemed to limit Dealer’s rights in respect of any transactions other than the Transaction. For the avoidance of doubt, notwithstanding any provision of this Confirmation, the Agreement, the Equity Definitions, or any other agreement between the parties to the contrary, the obligations of Counterparty under the Transaction are not secured by any collateral.
(p)Securities Contract; Swap Agreement.  The parties hereto intend for (i) the Transaction to be a “securities contract” and a “swap agreement” as defined in the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code, (ii) a party’s right to liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to the other party to constitute a “contractual right” as described in the Bankruptcy Code, and (iii) each payment and delivery of cash, securities or other property hereunder to constitute a “margin payment” or “settlement payment” and a “transfer” as defined in the Bankruptcy Code.
(q)Notice of Certain Other Events. Counterparty covenants and agrees that:
(i)promptly following the public announcement of the results of any election by the holders of Shares with respect to the consideration due upon consummation of any Merger Event, Counterparty shall give Dealer written notice of the weighted average of the types and amounts of consideration received by holders of Shares upon consummation of such Merger Event (the date of such notification, the “Consideration Notification Date”); provided that in no event shall the Consideration Notification Date be later than the date on which such Merger Event is consummated; and 
(ii)(A) Counterparty shall give Dealer commercially reasonable advance (but in any event at least one Exchange Business Day prior to the relevant Adjustment Notice Deadline) written notice of the section or sections of the Indenture and, if applicable, the formula therein, pursuant to which any adjustment will be made to the Convertible Notes in connection with any Potential Adjustment Event (other than a Potential Adjustment in respect of the Dilution Adjustment Provisions set forth in Section 5.05(A)(ii) or Section 5.05(A)(iv) of the Indenture) or Merger Event and (B) promptly following any such adjustment, Counterparty shall give Dealer written notice of the details of such adjustment.  The “Adjustment Notice Deadline” means (i) for any Potential Adjustment in respect of the Dilution Adjustment Provision set forth in Section 5.05(A)(i) of the Indenture, the relevant Ex-Dividend Date (as such term is defined in the Indenture) or Effective Date (as such term is defined in the Indenture), as the case may be, (ii) for any Potential Adjustment in respect of the Dilution Adjustment Provision in the first formula set forth in Section 5.05(A)(iii) of the Indenture, the first Trading Day (as such term is defined in the Indenture) of the period referred to in the definition of “SP” in such formula, (iii) for any Potential Adjustment in respect of the Dilution Adjustment Provision in the second formula set forth in Section 5.05(A)(iii) of the Indenture, the first Trading Day (as such term is defined in the Indenture) of the Valuation Period (as such term is defined in the Indenture), (iv) for any Potential Adjustment in respect of the Dilution Adjustment Provision set forth in Section 5.05(A)(v) of the Indenture, the first Trading Day (as such term is defined in the Indenture) of the period referred to in the definition of “SP’” in the formula in such Section, and (v) for any Merger Event, the 
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effective date of such Merger Event (or, if earlier, the first day of any valuation or similar period in respect of such Merger Event).
(r)Agreements and Acknowledgements Regarding Hedging. Counterparty understands, acknowledges and agrees that: (A) at any time on and prior to the last Expiration Date, Dealer and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction; (B) Dealer and its affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the Transaction; (C) Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in securities of Issuer shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Relevant Prices; and (D) any market activities of Dealer and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the Relevant Prices, each in a manner that may be adverse to Counterparty.
(s)Early Unwind. In the event the sale of the [“Initial Securities”]11[“Option Securities”]12 (as defined in the Purchase Agreement) is not consummated with the Initial Purchasers for any reason, or Counterparty fails to deliver to Dealer opinions of counsel as required pursuant to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment Date, or such later date as agreed upon by the parties (the Premium Payment Date or such later date, the “Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations of Dealer and Counterparty under the Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of the other party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date.  Each of Dealer and Counterparty represents and acknowledges to the other that, upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.
(t)Payment by Counterparty. In the event that, following payment of the Premium, (i) an Early Termination Date occurs or is designated with respect to the Transaction as a result of a Termination Event or an Event of Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Counterparty owes to Dealer an amount calculated under Section 6(e) of the Agreement, or (ii) Counterparty owes to Dealer, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to be zero.
(u)Adjustments. For the avoidance of doubt, whenever the Calculation Agent, the Determining Party or Dealer is called upon to make an adjustment or determine an amount pursuant to the terms of this Confirmation or the Equity Definitions to take into account the effect of an event, the Calculation Agent, the Determining Party or Dealer, as the case may be, shall make such adjustment or determine such amount, as the case may be, by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable hedge position.
(v)Amendment. This Confirmation and the Agreement may not be modified, amended or supplemented, except in a written instrument signed by Counterparty and Dealer.
(w)Counterparts. This Confirmation may be executed in several counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
(x)Payee Tax Representations. For the purpose of Section 3(f) of the Agreement, the parties make the representations below:

11 Insert for Base Call Option Confirmation.
12 Insert for Additional Call Option Confirmation.
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(i)Counterparty is a corporation created or organized in the United States or under the laws of the United States. It is “exempt” within the meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049- 4(c) from information reporting on IRS Form 1099 and backup withholding.
(ii)[___]13
(y)Tax Forms. For the purpose of Section 4(a)(i) of the Agreement, Dealer shall provide to Counterparty a valid U.S. Internal Revenue Service Form W-9, or any successor thereto, (i) on or before the date of execution of this Confirmation, (ii) promptly upon reasonable demand by Counterparty and (iii) promptly upon learning that any such tax form previously provided by Dealer has become obsolete or incorrect. For the purpose of Section 4(a)(i) of the Agreement, Counterparty shall provide to Dealer a valid U.S. Internal Revenue Service Form W-9, or any successor thereto, (i) on or before the date of execution of this Confirmation, (ii) promptly upon reasonable demand by Dealer and (iii) promptly upon learning that any such tax form previously provided by Counterparty has become obsolete or incorrect.
(z)United States Foreign Account Tax Compliance Act. “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Agreement, shall not include any withholding tax imposed or collected pursuant to Sections 1471 through 1474 of the Code, any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (a “FATCA Withholding Tax”). For the avoidance of doubt, a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable law for the purposes of Section 2(d) of the Agreement.
(aa)HIRE Act. “Tax” and “Indemnifiable Tax”, each as defined in Section 14 of the Agreement, shall not include any tax imposed on payments treated as dividends from sources within the United States under Section 871(m) of the Code or any regulations issued thereunder.
xxviii.[Financial Assistance. Counterparty acknowledges that the Transaction may constitute a purchase of its equity securities. Counterparty further acknowledges that, pursuant to the provisions of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), the Counterparty would be required to agree to certain time-bound restrictions on its ability to purchase its equity securities if it receives loans, loan guarantees or direct loans (as that term is defined in the CARES Act) under section 4003(b) of the CARES Act. Counterparty further acknowledges that it may be required to agree to certain time-bound restrictions on its ability to purchase its equity securities if it receives loans, loan guarantees or direct loans (as that term is defined in the CARES Act) under programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system (together with loans, loan guarantees or direct loans under section 4003(b) of the CARES Act, “Governmental Financial Assistance”). Accordingly, Counterparty represents and warrants that it has not applied for, and has no present intention to apply, prior to the termination or settlement of this Transaction, for Governmental Financial Assistance under any governmental program or facility that (a) is established under the CARES Act or the Federal Reserve Act, as amended, and (b) requires, as a condition of such Governmental Financial Assistance, that the Counterparty agree, attest, certify or warrant that it has not, as of the date specified in such condition, repurchased, or will not repurchase, any equity security of Counterparty. Counterparty agrees, in applying for any such financial assistance, to the extent required or practicable in any applicable application, to disclose the Transaction to the relevant governmental authority and acknowledges that entering into the Transaction may limit its ability to receive such loan, loan guarantee or direct loan.]
xxix.[U.S. Resolution Stay Protocol. The parties acknowledge and agree that the terms of the 2018 ISDA U.S. Resolution Stay Protocol (the “Protocol”) are incorporated into and form a part of the Agreement, and for such purposes the Agreement shall be deemed a Protocol Covered Agreement, 

13 Applicable tax reps for Dealer to be specified.
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the Dealer entity that is a party to the Agreement (“Dealer”) shall be deemed a Regulated Entity and the other entity that is a party to the Agreement (“Counterparty”) shall be deemed an Adhering Party. For purposes of this paragraph, references to “the Agreement” include any related credit enhancements entered into between the parties or provided by one to the other. In addition, the parties agree that the terms of this paragraph shall be incorporated into any related covered affiliate credit enhancements, with all references to Dealer replaced by references to the covered affiliate support provider.]14
xxx. [Insert Dealer Agency and other Boilerplate]

14 Insert as applicable. 
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Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Confirmation and returning it to Dealer. 
Very truly yours,
						
	[DEALER]
	By:	
	Authorized Signatory
	Name:

Accepted and confirmed
as of the Trade Date:
						
	MITEK SYSTEMS, INC.
	By:	
	Authorized Signatory
	Name:

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