Document:

EXECUTION COPY

 

 

NEITHER
THIS PROMISSORY NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. IN ADDITION TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THIS NOTE, NEITHER THIS
NOTE NOR SUCH SECURITIES MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE
TO maker’S COUNSEL, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A
UNDER SAID ACT. 

 

THIS
PROMISSORY NOTE AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH HEREIN
TO PAYMENTS OF CERTAIN SENIOR INDEBTEDNESS OF MAKER. THE PAYEE OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AND THE MAKER OF THIS NOTE,
BY MAKING THIS NOTE, IRREVOCABLY AGREES TO BE BOUND BY THE TERMS OF THIS PROMISSORY NOTE.

 

 

AMENDED AND RESTATED PROMISSORY NOTE

 

	
        Amount: $2,100,000

         

        Amended and Restated on November 19, 2013

         

        With an Effective Date of November 19, 2013

         

        With an Effective Date of the Original Note
        of December 31, 2012

         
	 

 

	PAYEE:	MAKER:
	
        JFC Technologies, LLC

        P.O. Box 266

        Bound Brook, NJ 08805
	
        Cyalume Technologies Holdings, Inc.

        96 Windsor Street

        West Springfield, MA 01089

         

 

The undersigned Maker
is indebted to Payee under that certain Promissory Note dated December 31, 2012, in the original principal amount of $2,100,000
(the “Original Note”). The Original Note was issued pursuant to, and evidences indebtedness of Maker to Payee
arising under, that certain Amendment Agreement, dated December 27, 2012, by and among Payee, Maker, Cyalume Specialty Products,
Inc., and James G. Schleck (the “Amendment Agreement”). Capitalized terms used and not otherwise defined in
this Note shall have the meanings given to them in the Amendment Agreement.

 

In order to document
certain amendments to the terms of the Original Note, the Original Note is being surrendered and exchanged for, and the unpaid
principal balance of the indebtedness evidenced thereby is being merged into and will hereafter be evidenced by, this Amended and
Restated Promissory Note (this “Note”).

 

    	 

    	 

    

 

FOR VALUE RECEIVED,
the undersigned Maker promises to pay to the order of Payee, at the location indicated at the beginning of this Note,
or at such other place as may be designated by Payee, the principal amount of TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($2,100,000)
(the “Principal Amount”), together with interest on the outstanding Principal Amount hereunder, all in accordance
with the provisions set forth herein.

 

1.Interest
Rate. Interest shall accrue and be payable on the unpaid Principal Amount from the Effective Date of the Original Note
until paid in full at the rate of twelve percent (12%) per annum (and, for the avoidance of doubt, interest under the Original
Note shall be re-computed from the Effective Date of the Original Note through the date hereof at such rate); provided, however,
that if the entire unpaid Principal Amount and all accrued and unpaid interest (collectively, the “Amount Due”),
is not paid in full on the Maturity Date (as defined in Section 2(a) below), the unpaid Principal Amount shall bear interest at
the rate of fifteen percent (15%) per annum, calculated on a retroactive basis from the Effective Date of the Original Note until
the Amount Due plus all further accrued and unpaid interest is paid in full. Interest shall not be compounded, and shall be calculated
on the basis of a 365 day year.

 

2.Repayment
Terms.

 

(a)The entire unpaid
Principal Amount and all accrued and unpaid interest shall be due and payable in full on December 31, 2016 (the “Maturity
Date”), subject to the terms of Section 7A below dealing with acceleration upon a Refinancing (as defined in Section
7A(b) below) or a Change of Control (as defined in Section 7A(d) below).

 

(b)If the Granite
Creek Debt (as defined in Section 8(a) below) is paid in full prior to the Maturity Date, then any accrued and unpaid interest
hereunder shall be payable on the last day of each month, commencing with the first full month following the repayment in full
of the Granite Creek Debt.

 

2A.Key Man
Life Insurance.

 

(a)At all times from
and after the Effective Date until the payment in full of the then outstanding Amount Due, Maker shall use its best efforts to
maintain (at its sole expense) one or more “key man” life insurance policies insuring the life of James G. Schleck
with a payment-on-death amount totaling $2,500,000. Maker shall provide to James G. Schleck (or after his death, to his estate)
a copy of said insurance policy(ies) and related declaration pages from time to time as reasonably requested by James G. Schleck
(or after his death, by his estate).

 

(b)If, prior to the
payment in full of the Amount Due, Maker receives any proceeds under that certain “key man” life insurance policy with
respect to James G. Schleck currently held by Maker, then subject to the notice requirement in Section 2A(c) below, Maker shall
promptly make a prepayment of this Note equal to the lesser of (i) $1,500,000, (ii) the Amount Due, and (iii) the net cash proceeds
actually received from such key man life insurance policy (the “Life Insurance Amount”).

 

    	2

    	 

    

 

(c)Unless and until
the Conversion Option has been exercised in full, in order to afford Payee an opportunity to determine whether to exercise the
Conversion Option in full, in part, or not, Maker shall provide to Payee thirty (30) days’ prior written notice (“Life
Insurance Notice”), with a copy by confirmed email to Susan S. Kleiner (susan@skleinerlaw.com) and Lance A. Kawesch (lkawesch@kaweschlaw.com),
or such other recipient and email address(es) as Payee may specify by written notice to Maker, of Maker’s intent to pay the
Life Insurance Amount, including the value of the Life Insurance Amount. In such event, if Payee (i) does not exercise its Conversion
Option within the first twenty five (25) days following its receipt of the Life Insurance Notice, or (ii) within the first twenty
five (25) days following its receipt of the Life Insurance Notice, exercises its Conversion Option in an amount less than the Life
Insurance Amount, then Maker shall, on the thirtieth (30th) day following the Life Insurance Notice (the “Life
Insurance Payment Date”), pay to Payee the Life Insurance Amount, reduced by the amount, if any, that Payee converted
into equity pursuant to the Conversion Option. If Payee exercises the Conversion Option in an amount equal to or exceeding the
Life Insurance Amount, then (i) Maker shall not pay the Life Insurance Amount to Payee, and (ii) Maker shall retain the Life Insurance
Amount.

 

3.Optional
Conversion. 

 

(a)At any time on
or after the date hereof, but subject to the terms and conditions set forth in this Section 3, a portion of the Principal Amount
shall be convertible into equity securities of Maker, at the option of Payee, as follows: up to $1,000,000 of the Principal Amount
shall be convertible into such number of shares of Maker’s Series A convertible preferred stock, par value $0.001 per share
(the “Series A Preferred Stock”), as is determined by dividing (X) that portion of the Principal Amount (not
to exceed $1,000,000) that Payee elects to convert by (Y) the Conversion Price (as defined below) then in effect (the “Conversion
Option”); provided that in no event may more than $1,000,000 of the Principal Amount be converted in the aggregate pursuant
to the Conversion Option.

 

(b)As used herein,
“Conversion Price” means $32.50 per share of Series A Preferred Stock, subject to adjustment as provided herein.
The Conversion Price shall be subject to adjustment from time to time as follows:

 

(i)If, at any time
on or after the date hereof, the number of outstanding shares of Series A Preferred Stock is increased by a stock split, stock
dividend, reclassification or other similar event, the Conversion Price shall be proportionately reduced, or if the number of outstanding
shares of Series A Preferred Stock is decreased by a reverse stock split, combination or reclassification of shares, or other similar
event, the Conversion Price shall be proportionately increased.

 

(ii)If, at any
time after the date hereof, there shall be (A) any reclassification or change of the outstanding shares of Series A Preferred
Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of
a subdivision or combination), (B) any consolidation or merger of Maker with any other entity (other than a merger in which
Maker is the surviving or continuing entity and its capital stock is unchanged), (C) any sale or transfer of all or substantially
all of the assets of Maker, or (D) any share exchange pursuant to which all of the outstanding shares of Series A Preferred
Stock are converted into other securities or property (each of (A) - (D) above being a “Corporate Change”),
then Payee shall thereafter have the right to receive upon conversion pursuant to Section 3(a) above, in lieu of the shares of
Series A Preferred Stock otherwise issuable, such shares of stock, securities and/or other property as would have been issued or
payable in such Corporate Change with respect to or in exchange for the number of shares of Series A Preferred Stock which would
have been issuable upon such conversion had such Corporate Change not taken place.

 

    	3

    	 

    

 

(c)The Conversion
Option may be exercised by Payee at any time that any portion of the Principal Amount remains outstanding, subject to the terms,
conditions and limits set forth herein. Payee may exercise the Conversion Option by delivering a written notice to Maker of its
election to so convert (a “Conversion Notice”). A Conversion Notice shall be irrevocable and shall state the
aggregate portion of the Principal Amount to be converted pursuant to Section 3(a) above.

 

(d)Upon the conversion
of this Note pursuant to Section 3(a) above, Payee shall deliver the original of this Note (or a notice to the effect that the
original Note has been lost, stolen or destroyed and an agreement reasonably acceptable to Maker whereby Payee agrees to indemnify
Maker from any loss incurred by it in connection with the loss or destruction this Note) for cancellation, and Maker shall deliver
to Payee (i) a certificate representing that number of shares of Series A Preferred Stock into which a portion of the Principal
Amount has been converted, and (ii) a new promissory note representing the balance of the Amount Due following such conversion.

 

(e)In addition, upon
the conversion of this Note upon the exercise of the Conversion Option, with respect to the first $499,980 of the Principal Amount
in the aggregate that is so converted, Maker shall issue to Payee, for no additional consideration, (i) warrants to purchase, for
each $6.50 of the Principal Amount so converted, ten shares of Maker’s common stock, par value $0.001 per share (the “Common
Stock”) (such that, if $499,980 of the Principal Amount is converted pursuant to Section 3(a), Payee shall receive warrants
to purchase 769,200 shares of Common Stock) (the “Common Stock Warrants”), and (ii) warrants to purchase, for
each $32.50 of the Principal Amount so converted, one share of Series A Preferred Stock (the “Preferred Stock Warrants”
and, together with the Common Stock Warrants, the “Warrants”). For the avoidance of doubt, Payee shall not be
entitled to receive any Warrants upon conversion of any portion of the Principal Amount in excess of $499,980 in the aggregate.
The Warrants issued hereunder shall be of like tenor and terms as the comparable warrants issued to US VC Partners, L.P. (the “Series
A Purchaser”) on or about the amended and restated date hereof, including, in the case of the Common Stock Warrants,
an exercise price of $0.65 per share, and in the case of the Preferred Stock Warrants, an exercise price of $0.05 per share and
the restrictions on exercisability set forth in the preferred stock warrants issued to the Series A Purchaser. The number of shares
issuable pursuant to such Warrants and the exercise price of such Warrants shall be equitably adjusted in the event of any stock
dividend, stock split, combination or similar recapitalization affecting the Common Stock (in the case of the Common Stock Warrants)
or the Series A Preferred Stock (in the case of the Preferred Stock Warrants) between the date hereof and the issuance of such
Warrants.

 

(f)Notwithstanding
anything to the contrary contained herein, as a condition to Payee exercising its Conversion Option with respect to any portion
of the Principal Amount in excess of $499,980, if at the time of such proposed conversion the Series A Purchaser or its affiliates
continues to beneficially own any shares of Series A Preferred Stock, Payee shall execute and deliver to the Series A Purchaser
a written proxy, granting the Series A Purchaser an irrevocable proxy, in form and substance reasonably satisfactory to the Series
A Purchaser, to vote any shares of Series A Preferred Stock issued to Payee upon conversion of any portion of the Principal Amount
in excess of $499,980 (which proxy shall remain in effect for so long as the Series A Purchaser or its affiliates continue to beneficially
own any shares of Series A Preferred Stock).

 

    	4

    	 

    

 

4.Prepayments.

 

(a)Not more often
than once per calendar month, Maker may prepay this Note without penalty in part or in full at any time and from time to time prior
to the Maturity Date. There shall be no prepayment penalty as a result of any prepayment of the Amount Due made in accordance with
the terms of this Note.

 

(b)Unless and until
the Conversion Option has been exercised in full, in order to afford Payee an opportunity to determine whether to exercise the
Conversion Option in full, in part, or not, Maker shall provide to Payee thirty (30) days’ prior written notice (“Prepayment
Notice”), with a copy by confirmed email to James G. Schleck (to both jamieschleck@gmail.com and schleckjg@cyalume.com,
or such other recipient and email address(es) as Payee may specify by written notice to Maker), of Maker’s intent to prepay
this Note, including the amount of the prepayment (“Prepayment Amount”). In such event, if Payee (i) does not
exercise its Conversion Option within the first twenty five (25) days following its receipt of the Prepayment Notice, or (ii) within
the first twenty five (25) days following its receipt of the Prepayment Notice, exercises its Conversion Option in an amount less
than the Prepayment Amount, then Maker shall, on or before the thirtieth (30th) day following the Prepayment Notice
(the “Prepayment Date”), prepay to Payee the Prepayment Amount, reduced by the amount, if any, that Payee converted
into equity pursuant to the Conversion Option. If Payee notifies Maker that it will not exercise its Conversion Option, Maker may
pay to Payee the Prepayment Amount specified in the applicable Prepayment Notice at any time on or before the applicable Prepayment
Date. If Payee exercises the Conversion Option in an amount equal to or exceeding the Prepayment Amount, then Maker may not prepay
the Prepayment Amount specified in the applicable Prepayment Notice .

 

5. Application
of Payments. All payments received hereunder shall be applied first to the payment of any and all expenses and/or charges
payable hereunder, then to interest due and payable, with the balance applied to the Principal Amount.

 

6. Events
of Default. For purposes of this Note, the term “Event of Default” shall mean the occurrence of any
of the following:

 

(a)The failure of
Maker to make any payment of amounts due (i) on Maker’s debt owed to TD Bank, or under the Granite Creek Debt, in each case
if such failure is not cured by Maker or waived by the applicable lender within thirty (30) days after the first date of such failure,
or (ii) under this Note when the same shall become due and payable;

 

(b)An Insolvency
Proceeding (as defined in Section 6(g) below) is commenced by Maker or any direct or indirect subsidiary of Maker (“Subsidiary”);

 

    	5

    	 

    

 

(c)An Insolvency
Proceeding is commenced against Maker or any Subsidiary, and any of the following events occur: (i) Maker or Subsidiary consents
to the institution of such Insolvency Proceeding against it, (ii) the petition commencing the Insolvency Proceeding is not timely
controverted, (iii) the petition commencing the Insolvency Proceeding is not dismissed within sixty (60) calendar days of the date
of the filing or presentation thereof; (iv) an interim trustee is appointed to take possession of all or any substantial portion
of the properties or assets of, or to operate all or any substantial portion of the business of, Maker or any Subsidiary, or (v)
an order for relief shall have been issued or entered therein;

 

(d)A material portion
of Maker’s or any Subsidiaries’ assets is attached, seized, subjected to a writ or distress warrant, or is levied upon,
or comes into the possession of any third person and the same is not discharged before the earlier of thirty (30) days after the
date it first arises or five (5) days prior to the date on which such property or asset is subject to forfeiture by Maker or the
applicable Subsidiary;

 

(e) Maker or any
Subsidiary is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part
of its business affairs; or

 

(f)The indictment
of Maker or any Subsidiaries under any criminal statute, or commencement of criminal or civil proceedings against Maker or any
Subsidiaries, pursuant to which statute or proceedings the penalties or remedies sought or available include forfeiture to any
governmental authority of a substantial portion of the property of Maker or any Subsidiaries.

 

(g)“Insolvency
Proceeding” means any proceeding commenced under any provision of the Bankruptcy Code (Title 11 of the United States
Code, as in effect from time to time) or under any other state or federal bankruptcy or insolvency law, assignments for the benefit
of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization,
arrangement, or other similar relief.

  

7.Remedies
Upon Default. Upon the occurrence of an Event of Default, at the option of Payee, the entire balance outstanding hereunder
and all other obligations of Maker to Payee hereunder shall become immediately due and payable, and Payee shall have all rights
and remedies available at law or in equity.

 

7A.Acceleration.

 

(a)Upon written notice
from Payee to Maker, Payee shall have the right to receive the unpaid Principal Amount and all accrued and unpaid interest in full
or in part on the earliest of (i) the Maturity Date (without the need for written notice), (ii) a Refinancing (as defined in Section
7A(b) below) in full of the Existing Senior Debt (as defined in Section 8(a) below), or (iii) a Change of Control (as defined in
Section 7A(d) below); provided that in the case of clause (ii) only, Maker shall have at least $5,000,000 in Available Funds (as
defined in Section 7A(c) below), after giving effect to the payment in full of all amounts hereunder. In the case of payment in
full of all amounts hereunder in connection with a Refinancing or Change of Control, the term “Maturity Date” as used
herein means the date of payment in full of all amounts hereunder.

 

    	6

    	 

    

 

(b)As used herein,
“Refinancing” means any form of refinancing, including paying off existing debt with proceeds from new debt,
whether from an existing lender or a new lender, extending the maturity date of existing debt, or increasing (in the case of Maker’s
existing debt with TD Bank, NA) or increasing or otherwise changing (in the case of the Granite Creek Debt) the amount of debt
or available credit available (excluding, for the avoidance of doubt, any increase in the Granite Creek Debt arising solely from
the paid-in-kind provisions of the Granite Creek Debt as in effect on the date hereof).

 

(c)As used herein,
“Available Funds” means the sum of cash, cash equivalents, marketable securities (including freely tradable
treasury shares), and available credit under any indebtedness of Maker or its subsidiaries without violating covenants in the written
signed loan agreements entered into by Maker or its subsidiaries in connection with the Senior Debt.

 

(d)As used herein,
a “Change of Control” shall be deemed to have occurred if any of the following conditions have occurred: (1)
the sale of all or substantially all of the outstanding capital stock of Maker to a third party and subsequent to the transaction
Maker’s stockholders of Maker prior to the transaction, together with any affiliates of such holders, hold less than 50%
of the voting stock of Maker or such third party, as applicable; or (2) the sale of all or substantially all of Maker’s or
CSP’s assets to a third party and subsequent to the transaction Maker’s or CSP’s stockholders hold less than
50% of the stock of said third party.

 

(e)As used herein,
“CSP” means Cyalume Specialty Products, Inc., a Delaware corporation.

 

(f)Maker shall provide
reasonable prior notice to Payee of any Refinancing and any Change of Control.

 

8.Subordination.

 

(a)As used
in this Note, “Existing Senior Debt” means all indebtedness of Maker arising under any credit agreement, loan
agreement, note or other document, agreement or instrument existing as of the date hereof (as the same may be amended subsequent
to the date hereof) with Granite Creek Partners Agent, LLC (the “Granite Creek Debt”) or TD Bank, NA; “Senior
Debt” means the principal of, premium, if any, interest (including interest, to the extent allowable, accruing
subsequent to the filing of a petition initiating any proceeding under any state, federal or foreign bankruptcy law, whether or
not a claim for post-petition interest is allowable as a claim in any such proceeding) and rent payable on or termination payment
with respect to or in connection with, and all fees, costs, expenses, reimbursement amounts, indemnities and other amounts accrued
or due on or in connection with, indebtedness for borrowed money of Maker, whether outstanding on the date of this Note or thereafter
created, incurred, assumed, guaranteed or in effect guaranteed by Maker (including all deferrals, renewals, extensions or refundings
of, or amendments, modifications or supplements to, the foregoing), including the Existing Senior Debt, except for: (i)
any liability for federal, state, local or other taxes owed or owing by Maker, (ii) any indebtedness of Maker owed to any of its
subsidiaries; (iii) any trade payables, or (iv) any indebtedness that is, by its express terms, subordinated in right of payment
to any other indebtedness of Maker (collectively, “Junior Debt”); and “Subordinated
Debt” means all obligations of Maker now or hereafter existing under or in connection with this Note (whether
created directly or acquired by assignment or otherwise), whether for principal, interest (including, without limitation, interest,
to the extent allowable, accruing subsequent to the filing of a petition initiating any proceeding under any state, federal or
foreign bankruptcy law, whether or not a claim for post-petition interest is allowable as a claim in any such proceeding), fees,
costs, expenses, indemnities or otherwise.

 

    	7

    	 

    

 

(b)Payee, by acceptance
of this Note, agrees that the Subordinated Debt is and shall be subordinate, to the extent and in the manner hereinafter set forth,
to the prior payment in full of all Senior Debt of Maker, including Senior Debt of Maker incurred, created, assumed or guaranteed
after the date hereof, and that the subordination is for the benefit of and enforceable by the holders of such Senior Debt.

 

(c)The holders of
Senior Debt of Maker shall first be entitled to receive payment in full of all amounts due on or in respect of such Senior Debt
(including interest after commencement of any bankruptcy proceeding at the rate specified in the documentation for the applicable
Senior Debt of Maker) or provision shall be made for such amount in cash, cash equivalents, marketable securities (including freely
tradable treasury shares) or other payments satisfactory to the holders of Senior Debt, before Payee shall be entitled to receive
any payment with respect to the Subordinated Debt, in the event of any distribution to creditors of Maker in (i) any liquidation
or dissolution of Maker; (ii) any bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to Maker
or its property; (iii) any assignment by Maker for the benefit of its creditors; or (iv) any marshalling of Maker’s assets
and liabilities.

 

(d)On the Maturity
Date (or if earlier, upon the occurrence of an Event of Default), after payments to the holders of Senior Debt in accordance with
Section 8(c) above to the extent payments are then due, the holder of this Note shall be entitled to payment in full of all amounts
due on or in respect of this Note (including interest after commencement of any bankruptcy proceeding at the rate specified in
this Note) before the holders of any Junior Debt shall be entitled to receive payment with respect to the Junior Debt.

 

9.Applicable
Law, Venue and Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this
Note shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws
of any jurisdictions other than the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in Wilmington, Delaware, for the adjudication of any dispute under or in connection with this
Note or the other documents or agreements contemplated hereby or with any transaction contemplated hereby or thereby or discussed
herein or therein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at
the address for such notices to it under this Note (by certified mail or by reputable express courier, such as FedEx) and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. 

 

    	8

    	 

    

 

10.Representations
and Covenants of Payee. Payee hereby represents and warrants to, and covenants with, Maker as follows:

 

(a)If Payee
exercises its conversion rights hereunder, Payee shall acquire the Series A Preferred Stock and Warrants issuable hereunder, any
shares of Series A Preferred Stock acquired upon exercise of the Preferred Stock Warrants, and any shares of Common Stock acquired
upon conversion or exercise of the Series A Preferred Stock or the Common Stock Warrants (collectively, the “Securities”),
solely for its own account and not with a view to, or for sale in connection with, public sale or distribution thereof. Payee does
not have a present intention to sell any of the Securities, nor a present arrangement (whether or not legally binding) or intention
to effect any distribution of any of the Securities to or through any person or entity. Payee acknowledges that it (i) has such
knowledge and experience in financial and business matters such that Payee is capable of evaluating the merits and risks of this
Note and the Securities, (ii) is able to bear the financial risks associated with this Note and an investment in the Securities
and (iii) has been given full access to such records of Maker and its Subsidiaries and to the officers of Maker and its Subsidiaries
as it has deemed necessary or appropriate to conduct its due diligence investigation.

 

(b)Payee understands
that the Securities must be held indefinitely unless the Securities are registered under the Securities Act of 1933, as amended
(the “Securities Act”), or an exemption from registration is available. Payee acknowledges that it is familiar
with Rule 144 of the rules and regulations of the Securities and Exchange Commission (the “Commission”), as
amended, promulgated pursuant to the Securities Act (“Rule 144”), and that Payee has been advised that Rule
144 permits resales only under certain circumstances. Payee understands that to the extent that Rule 144 is not available, Payee
will be unable to sell any Securities without either registration under the Securities Act or the existence of another exemption
from such registration requirement.

 

(c)Payee understands
that the Securities are being offered and sold in reliance on a transactional exemption from the registration requirements of federal
and state securities laws and Maker is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments
and covenants of Payee set forth herein in order to determine the applicability of such exemptions and the suitability of Payee
to acquire the Securities. Payee understands that no United States federal or state agency or any government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

(d)Payee is an “accredited
investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act), and Payee has such experience in
business and financial matters that it is capable of evaluating the merits and risks of an investment in the Securities. Payee
acknowledges that an investment in the Securities is speculative and involves a high degree of risk.

 

    	9

    	 

    

 

(e)In addition to
any restrictions on transfer under state or federal securities laws, Payee shall not sell, assign or otherwise transfer (with or
without consideration) any shares of Series A Preferred Stock acquired pursuant hereto unless the transferee agrees in writing,
for the benefit of Maker (and in form reasonably satisfactory to Maker), not to sell, assign, pledge or otherwise transfer (with
or without consideration) the shares of Series A Preferred Stock for a period of six months following the amended and restated
date of this Note (in addition to any applicable restrictions on transfer under state or federal securities laws).

 

(f)So long as Payee,
and any subsequent holder of the shares of Series A Preferred Stock, comply with the provisions of Section 10(e) above and all
applicable federal and state securities laws, then Payee, and any subsequent holder of the Securities, may sell or otherwise transfer
the Securities.

 

(g)Each certificate
representing the Securities shall be stamped or otherwise imprinted with a legend substantially in the following form (in addition
to any legend required by applicable state securities or “blue sky” laws):

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
(I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY’S COUNSEL, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”

 

(g)Notwithstanding
the foregoing in this Section 10, upon notice from Payee to Maker, and subject to compliance with any applicable securities laws,
Payee may transfer and assign, and Maker shall take all necessary action to effect the transfer and assignment of, shares of Common
Stock constituting up to thirty percent (30%) of the Securities to management employees of CSP.

 

11.Board
Seat. In addition to the provisions Section 7 (Board Designation) of the Amendment Agreement, James G. Schleck shall retain
the right to be named by Maker as a nominee for election to the Board each time Maker solicits a vote of its stockholders relating
to the election of directors for so long as any of the following conditions is satisfied (each, a “Board Designation Condition”):
(a) Payee and/or James G. Schleck collectively own at least 10% of the total number of outstanding shares of Maker’s Common
Stock, (b) any portion of the indebtedness under this Note remains outstanding, or (c) Payee shall have exercised the Conversion
Option and shall continue to beneficially own any shares of Series A Preferred Stock acquired upon such exercise. At any time on
or after such date on which none of the Board Designation Conditions is satisfied, James G. Schleck shall, upon receipt of a written
request from Maker, immediately resign from the Board.

 

    	10

    	 

    

 

12.Partial
Invalidity. The unenforceability or invalidity of any provision of this Note shall not affect the enforceability or validity
of any other provision herein and the invalidity or unenforceability of any provision of this Note as to any person or circumstance
shall not affect the enforceability or validity of such provision as it may apply to other persons or circumstances.

 

13.Entire
Agreement; Binding Effect. This Note constitutes the entire agreement between Maker and Payee with regard to the subject
matter hereof. This Note supersedes all previous agreements and understanding, whether written or oral, between such parties with
respect to the subject matter hereof including, without limitation, the Original Note, which is hereby rendered null and void.
This Note shall be binding upon and inure to the benefit of Maker and Payee and their respective heirs, personal representatives
and permitted assigns.

 

14.Costs/Attorneys
Fees. Within ten days following the date hereof, Maker shall pay to Payee any reasonable, documented out-of-pocket expenses
incurred in connection with the negotiation of this Note and the transactions contemplated hereby. Maker shall pay on demand all
costs of collection and reasonable attorneys fees and costs incurred or paid by Payee in enforcing the terms hereof or with respect
to collection hereunder, provided that Payee substantially prevails in enforcing the terms of this Note.

 

15.Manner
and Method of Payment. All payments called for in this Note shall be made in lawful money of the United States of America.
If made by check, or other payment instrument, such check, draft, or other payment instrument shall represent immediately available
funds. Should any payment date fall on a non-banking day, Maker shall make the payment on the next succeeding banking day. If
requested in writing or by email to Maker’s Chief Financial Officer (or his delegate), Maker shall make all payments called
for in this Note by wire transfer of immediately available funds to such bank account as the holder of this Note may request at
least one business day before the Maturity Date (or if earlier, as soon as reasonably practical following the occurrence of an
Event of Default).

 

16.Notices.
Any notice or demand required by or in connection with this Note shall be given by facsimile (with confirmation), first class mail,
reputable express courier, such as FedEx, or hand delivery to the parties at their addresses specified on the first page of this
Note, as such address may be modified by written notice of the parties. All notices and demands for payment from the Payee or a
holder actually received in writing by the Maker shall be considered to be effective upon the receipt thereof by the Maker regardless
of the procedure or method utilized to accomplish delivery thereof to the Maker.

 

17.Assignability.
This Note may not be assigned, sold, transferred or mortgaged by Payee at any time without the prior written consent of the Maker.

 

    	11

    	 

    

 

18.Tense;
Gender; Defined Terms; Section Headings. As used herein, the singular includes the plural and the plural includes the singular.
A reference to any gender also applies to any other gender. Defined terms are capitalized throughout this Note. The section headings
are for convenience only and are not part of this Note.

 

[SIGNATURE PAGE FOLLOWS]

 

    	12

    	 

    

 

 

		CYALUME TECHNOLOGIES HOLDINGS, INC.

 

 

 

	 	By:  /s/ Michael Bielonko                                
	 	Name: Michael Bielonko
	 	Title: Chief Financial Officer

 

ACKNOWLEDGED AND AGREED:

 

JFC TECHNOLOGIES, LLC

 

 

By: /s/ James G. Schleck                                                 

Name:

Title:

 

 

/s/ James G. Schleck                                                        

James G. Schleck (solely for purposes of Section 11)

 

 

 

 

 

 

 

 

[SIGNATURE PAGE TO AMENDED AND RESTATED
PROMISSORY NOTE]

 

 

    	13Exhibit 4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

ENERGY XXI (BERMUDA) LIMITED

 

(Issuer)

 

 

 

3.0% Senior Convertible Notes due 2018

 

 

 

INDENTURE

 

 

 

Dated as of November 22, 2013

 

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

(Trustee)

 

 

 

 

 

 

 

 

  

 

 

  

    	 

    	 

    

 

TABLE OF CONTENTS

 

		 	Page
	 	 	 
	ARTICLE 1 Definitions and Incorporation by Reference	1
	 	 	 
	Section 1.01	Definitions.	1
	 	 	 
	ARTICLE 2 The Notes	11
	 	 	 
	Section 2.01	Designation, Amount and Issuance of Notes.	11
	Section 2.02	Form of the Notes.	11
	Section 2.03	Date and Denomination of Notes; Payment at Maturity; Payment of Interest.	12
	Section 2.04	Execution and Authentication.	13
	Section 2.05	Registrar and Paying Agent.	14
	Section 2.06	Paying Agent to Hold Money in Trust.	15
	Section 2.07	Holder Lists.	15
	Section 2.08	Exchange and Registration of Transfer of Notes; Restrictions on Transfer.	15
	Section 2.09	Replacement Notes.	20
	Section 2.10	Outstanding Notes.	20
	Section 2.11	Temporary Notes.	21
	Section 2.12	Repurchase and Cancellation.	21
	Section 2.13	Defaulted Interest.	22
	Section 2.14	CUSIP and ISIN Numbers.	23
	 	 	 
	ARTICLE 3 Repurchase of Notes	23
	 	 	 
	Section 3.01	Repurchase at Option of Holders Upon a Fundamental Change.	23
	Section 3.02	Withdrawal of Fundamental Change Repurchase Notice.	26
	Section 3.03	Deposit of Fundamental Change Repurchase Price.	26
	Section 3.04	Notes Repurchased in Part.	27
	Section 3.05	Covenant to Comply with Securities Laws Upon Repurchase of Notes.	27
	 	 	 
	ARTICLE 4 Covenants	27
	 	 	 
	Section 4.01	Payment of Notes.	27
	Section 4.02	Maintenance of Office or Agency.	28
	Section 4.03	Reports; Rule 144A Information.	28
	Section 4.04	Existence.	29
	Section 4.05	Compliance Certificate.	29
	Section 4.06	[Reserved.]	29
	Section 4.07	Notification of Rule 144 Additional Interest or Reporting Additional Interest.	29
	Section 4.08	Statement by Officer as to Default.	29
	Section 4.09	Waiver of Stay, Extension or Usury Laws.	30
	Section 4.10	Rule 144 Additional Interest.	30

 

    	i

    	 

    

 

	ARTICLE 5 Successor Company	31
	 	 	 
	Section 5.01	Consolidation, Merger and Sale of Assets.	31
	Section 5.02	Successor to Be Substituted.	31
	Section 5.03	Opinion of Counsel to Be Given Trustee.	31
	 	 	 
	ARTICLE 6 Defaults and Remedies	32
	 	 	 
	Section 6.01	Events of Default.	32
	Section 6.02	Acceleration.	33
	Section 6.03	Other Remedies.	34
	Section 6.04	Waiver of Past Defaults.	35
	Section 6.05	Control by Majority.	35
	Section 6.06	Limitation on Suits.	36
	Section 6.07	Rights of Holders to Receive Payment.	36
	Section 6.08	Collection Suit by Trustee.	36
	Section 6.09	Trustee May File Proofs of Claim.	36
	Section 6.10	Priorities.	37
	Section 6.11	Undertaking for Costs.	37
	Section 6.12  	Failure to Comply with Reporting Covenant.	37
	 	 	 
	ARTICLE 7 Trustee	38
	 	 	 
	Section 7.01	Duties of Trustee.	38
	Section 7.02	Rights of Trustee.	39
	Section 7.03	Individual Rights of Trustee.	41
	Section 7.04	Trustee’s Disclaimer.	41
	Section 7.05	Notice of Defaults.	41
	Section 7.06	Reports by Trustee to Holders.	41
	Section 7.07	Compensation and Indemnity.	42
	Section 7.08	Replacement of Trustee.	42
	Section 7.09	Successor Trustee by Merger.	43
	Section 7.10	Eligibility; Disqualification.	44
	Section 7.11	Preferential Collection of Claims Against Company.	44
	 	 	
	ARTICLE 8 Discharge of Indenture	44
	 	 	 
	Section 8.01	Discharge of Liability on Notes.	44
	Section 8.02	Application of Trust Money.	45
	Section 8.03	Repayment to Company.	45
	Section 8.04	Reinstatement.	45
	 	 	 
	ARTICLE 9 Amendments	45
	 	 	 
	Section 9.01	Without Consent of Holders.	45
	Section 9.02	With Consent of Holders.	46
	Section 9.03	Compliance with Trust Indenture Act.	47
	Section 9.04	Revocation and Effect of Consents and Waivers.	47
	Section 9.05	Notation on or Exchange of Notes.	48
	Section 9.06  	Trustee to Sign Amendments.	48

 

    	ii

    	 

    

 

	ARTICLE 10 Conversion of Notes	48
	 	 	 
	Section 10.01	Right to Convert.	48
	Section 10.02	Conversion Procedures; Settlement Upon Conversion; No Adjustment for Interest or Dividends; Cash Payments 

in Lieu of Fractional Shares.	50
	Section 10.03	Adjustment to Conversion Rate Upon a Make-Whole Fundamental Change.	54
	Section 10.04	Adjustment of Conversion Rate.	56
	Section 10.05	Effect of Reclassifications, Business Combinations, Asset Sales and Corporate Events.	64
	Section 10.06	Certain Covenants.	65
	Section 10.07  	Trustee Disclaimer.	66
	 	 	
	ARTICLE 11 Miscellaneous	66
	 	 	
	Section 11.01	Trust Indenture Act Controls.	66
	Section 11.02	Notices.	66
	Section 11.03	Communication by Holders with Other Holders.	67
	Section 11.04	Certificate and Opinion as to Conditions Precedent.	68
	Section 11.05	Statements Required in Certificate or Opinion.	68
	Section 11.06	When Notes Disregarded.	68
	Section 11.07	Rules by Trustee, Paying Agent and Registrar.	68
	Section 11.08	Set-Off of Withholding Taxes.	69
	Section 11.09	GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL.	69
	Section 11.10	No Personal Liability of Directors, Officers, Employees and Stockholders.	69
	Section 11.11	No Stockholder Rights.	69
	Section 11.12	Successors.	69
	Section 11.13	Multiple Originals.	70
	Section 11.14	Table of Contents; Headings.	70
	Section 11.15	Severability Clause.	70
	Section 11.16  	Calculations.	70

 

	Exhibit A	-	Form of Note
	 	 	 
	Exhibit B	-	Restricted Common Stock Legend

  

    	iii

    	 

    

 

INDENTURE dated as of November 22, 2013
among ENERGY XXI (BERMUDA) LIMITED, a limited exempt company organized under the laws of Bermuda, as issuer (the “Company”)
and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States, as trustee
(the “Trustee”).

 

WHEREAS, the Company has duly authorized
the creation of an issue of the Company’s 3.0% Senior Convertible Notes due 2018 (the “Notes”), having
the terms, tenor, amount and other provisions hereinafter set forth, and, to provide therefor, have duly authorized the execution
and delivery of this Indenture; and

 

WHEREAS, all things necessary to make the
Notes, when the Notes are duly executed by the Company and authenticated and delivered hereunder and duly issued by the Company,
the valid obligations of the Company, and to make this Indenture a valid and binding agreement of the Company, in accordance with
the terms of the Notes and this Indenture, have been done and performed, and the execution of this Indenture and the issue hereunder
of the Notes have in all respects been duly authorized;

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises
and the purchase of the Notes by the holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit
of all holders of the Notes, as follows:

 

ARTICLE
1

Definitions and Incorporation by Reference

 

Section
1.01Definitions.

 

The terms defined in this Section 1.01 (except
as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any
indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. All other terms used in this Indenture
that are defined in the Trust Indenture Act or which are by reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the respective meanings assigned to such terms in the Trust
Indenture Act and in the Securities Act as in force at the date of the execution of this Indenture. The words “herein”,
“hereof”, “hereunder” and words of similar import refer to this Indenture as a whole and not to any particular
Article, Section or other Subdivision. The word “or” is not exclusive and the word “including” means including
without limitation. The terms defined in this Article include the plural as well as the singular.

 

“Additional Notes” has
the meaning specified in Section 2.01.

 

“Additional Shares”
has the meaning specified in Section 10.03.

 

    	1

    	 

    

 

“Affiliate” of any specified
Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control
with such specified Person. For the purposes of this definition, “control” when used with respect to any specified
Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing; provided that direct or indirect beneficial ownership of 10% or more of the Voting Stock of
a Person shall be deemed to be control; and provided further that for purposes of Section 4.10, the term “Affiliate”
shall instead refer to an affiliate within the meaning of Rule 144 under the Securities Act.

 

“Agent Members” has
the meaning specified in Section 2.08(b)(vi).

 

“Averaging Period” has
the meaning specified in Section 10.04(e).

 

“Bankruptcy Law” has
the meaning specified in Section 6.01.

 

“Board of Directors”
means either the Board of Directors of the Company or any duly authorized committee of such Board.

 

“Business Day” means
any day other than a Saturday, a Sunday or a day on which the Federal Reserve Bank of New York or banking institutions in Houston,
Texas are authorized or required by law or executive order to close or be closed.

 

“Capital Stock” of any
Person means any and all shares, interests, participations or other equivalents (however designated) of corporate stock or other
equity participations, including partnership interests, whether general or limited, of such Person, including any Preferred Stock,
but excluding any debt securities convertible into such equity.

 

“Cash Settlement” has
the meaning set forth in Section 10.02.

 

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

 

“Closing
Sale Price” of any share of the Common Stock on any Trading Day means the closing
sale price of such security (or if no closing sale price is reported, the average of the closing bid and closing ask prices or,
if more than one in either case, the average of the average closing bid and the average closing ask prices) on such day as reported
in composite transactions for the principal U.S. securities exchange on which the Common Stock is traded or, if the Common Stock
is not listed on a U.S. national or regional securities exchange, as reported by OTC Markets Group Inc. In the absence of such
a quotation, the Closing Sale Price will be determined by a nationally recognized securities dealer retained by the Company for
that purpose. The Closing Sale Price will be determined without reference to extended or after hours trading.

 

“Combination Settlement”
has the meaning set forth in Section 10.02

 

    	2

    	 

    

 

“Common Stock” means
the common shares, par value $0.005 per share, of the Company, or such other Capital Stock into which such common shares are converted,
reclassified or changed from time to time pursuant to Section 10.05.

 

“Company” means the
party named as such in this Indenture until a successor replaces it and, thereafter, means the successor and, for purposes of any
provision contained herein and required by the Trust Indenture Act, each other obligor on the indenture securities.

 

“Conversion Agent” means
the agency appointed by the Company to which Notes may be presented for conversion. The Conversion Agent appointed by the Company
shall initially be the Trustee.

 

“Conversion Date” has
the meaning specified in Section 10.02(a).

 

“Conversion Notice”
has the meaning specified in Section 10.02(a).

 

“Conversion Obligation”
has the meaning specified in Section 10.01.

 

“Conversion Period”
means the 25 consecutive Trading Day period:

 

(1)with respect to Conversion
Notices received on or after September 15, 2018, beginning on, and including, the 27th Scheduled Trading Day immediately preceding
the Maturity Date; and

 

(2)in all other cases, beginning
on, and including, the third Trading Day following the Company’s receipt of the relevant Conversion Notice.

 

“Conversion Price” on
any day will equal $1,000, divided by the Conversion Rate in effect on that day.

 

“Conversion Rate” shall
initially be 24.7523 shares of Common Stock per $1,000 principal amount of Notes, subject to adjustment as provided in Article
10.

 

“Corporate Trust Office”
or other similar term, means the designated office of the Trustee at which at any particular time its corporate trust business
as it relates to this Indenture shall be administered, which office is, at the date as of which this Indenture is dated, located
at Wells Fargo Bank, National Association, 750 N. St. Paul Place, Suite 1750, Dallas, TX 75201, Attention: Corporate Trust Services
or at any other time at such other address as the Trustee may designate from time to time by notice to the Company.

 

“Custodian” has the
meaning specified in Section 6.01.

 

“Daily Conversion Value”
for any Trading Day in the applicable Conversion Period equals 1/25th of:

 

(1) the Conversion Rate in effect
on that Trading Day, multiplied by

 

    	3

    	 

    

 

(2) the VWAP of the Common Stock
on that Trading Day.

 

“Daily Measurement Value”
means the quotient of the Specified Dollar Amount divided by 25.

 

“Daily Settlement Amount”
for each $1,000 principal amount of Notes, for each of the 25 consecutive Trading Days in the relevant Conversion Period, shall
consist of:

 

(1) cash equal to the lesser
of (a) the Daily Measurement Value and (b) the Daily Conversion Value; and

 

(2) to the extent the Daily
Conversion Value exceeds the Daily Measurement Value, a number of shares of Common Stock equal to (a) the difference between the
Daily Conversion Value and the Daily Measurement Value, divided by (b) the VWAP of the Common Stock on such Trading Day.

 

“declaration date” shall
mean, with respect to a distribution by the Company to all or substantially all of its holders of Common Stock, the date on which
the distribution has been declared and authorized by the Board of Directors under applicable law.

 

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

 

“Defaulted Interest”
has the meaning specified in Section 2.13.

 

“Depositary” means the
clearing agency registered under the Exchange Act that is designated to act as the Depositary for the Global Notes. DTC shall be
the initial Depositary, until a successor shall have been appointed and become such pursuant to the applicable provisions of this
Indenture, and thereafter, “Depositary” shall mean or include such successor.

 

“Dividend Threshold Amount”
has the meaning specified in Section 10.04(d).

 

“DTC” means The Depository
Trust Company.

 

“Effective Date”
has the meaning specified in Section 10.03.

 

“Event of Default” has
the meaning specified in Section 6.01.

 

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

 

“Ex-Date” means the
first date on which the shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without
the right to receive the issuance, dividend or distribution in question, from the Company or, if applicable, from the seller of
Common Stock on such exchange or market (in the form of due bills or otherwise) as determined by such exchange or market.

 

    	4

    	 

    

 

“Expiration Date” has
the meaning specified in Section 10.04(e).

 

“Foreign Subsidiary”
means any direct or indirect Subsidiary of the Company that is not organized under the laws of the United States or any state thereof
or the District of Columbia.

 

“Fundamental Change”
shall be deemed to have occurred when any of the following has occurred:

 

(1) the consummation of any
transaction (other than a transaction referred to in clause (2) below, whether or not the proviso therein applies) the result of
which is that any “person” or “group” becomes the “beneficial owner” (as these terms are defined
in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Capital Stock of the Company
that is at the time entitled to vote by the holder thereof in the election of the Board of Directors (or comparable body); or

 

(2) the consummation of (A)
any recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision, consolidation
or combination) as a result of which the Common Stock will be converted into, or exchanged for, shares, other securities, other
property or assets; (B) any share exchange, consolidation, amalgamation or merger of the Company pursuant to which the Common Stock
will be converted into cash, securities or other property; or (C) any sale, lease or other transfer in one transaction or a series
of transactions of all or substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole, to
any person or group other than any of the Company’s Subsidiaries; provided, however, that none of the transactions
described in clauses (A), (B) or (C) shall constitute a Fundamental Change if the holders of more than 50% of the Common Stock
immediately prior to such transaction own, directly or indirectly, more than 50% of the common equity of the continuing or surviving
or transferee entity or any direct or indirect parent thereof immediately after the consummation of such transaction; or

 

(3) the adoption of a plan relating
to the Company’s liquidation or dissolution; or

 

(4) the Common Stock (or other
common stock or depositary shares or receipts in respect thereof underlying the Notes) ceases to be listed or quoted on any of
the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market or any other national securities exchange
(or any of their respective successors).

 

Notwithstanding the foregoing, any transaction or event described
in clause (1) or (2) above will not constitute a Fundamental Change if, in connection with such transaction or event, or as a result
thereof, at least 90% of the consideration paid for the Common Stock (excluding cash payments for fractional shares and cash payments
made pursuant to dissenters’ appraisal rights) consists of shares of common stock or depositary shares or receipts in respect
thereof traded on any of The New York Stock Exchange, The NASDAQ Global Market or The NASDAQ Global Select Market or any other
national securities exchange (or any of their respective successors) (or will be so traded or quoted immediately following the
completion of the relevant transaction) and, as a result of such transaction, the Notes become convertible into cash, Reference
Property comprised of such consideration or a combination of cash and such Reference Property as described under Section 10.05.

 

    	5

    	 

    

 

“Fundamental Change Company Notice”
has the meaning specified in Section 3.01(b).

 

“Fundamental Change Repurchase
Date” has the meaning specified in Section 3.01(a).

 

“Fundamental Change Repurchase
Expiration Time” has the meaning specified in Section 3.01(a)(1).

 

“Fundamental Change Repurchase
Notice” has the meaning specified in Section 3.01(a)(1).

 

“Fundamental Change Repurchase
Price” has the meaning specified in Section 3.01(a).

 

“Global Note Legend”
is as set forth in Exhibit A.

 

“Global Notes” has the
meaning specified in Section 2.02.

 

“Holder” means the 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 Barclays Capital Inc., Citigroup Global Markets Inc., Wells Fargo Securities, LLC, Capital One Securities, Inc., Comerica
Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., IBERIA Capital Partners L.L.C., ING Financial
Markets LLC, KeyBanc Capital Markets Inc., Natixis Securities Americas LLC, Regions Securities LLC, RBS Securities Inc., Scotia
Capital (USA) Inc., TD Securities (USA) LLC, UBS Securities LLC, ABN AMRO Securities (USA) LLC, Clarkson Capital Markets LLC, Cowen
and Company, LLC, Johnson Rice & Company L.L.C., Miller Tabak + Co., LLC, Santander Investment Securities Inc., SMBC Nikko
Securities America, Inc. and Westlake Securities, LLC.

 

“interest” means, when
used with reference to the Notes, any interest payable under the terms of the Notes, including Defaulted Interest, if any, Rule
144 Additional Interest, if any, and Reporting Additional Interest, if any.

 

“Interest Payment Date”
has the meaning specified in Section 2.03(c).

 

    	6

    	 

    

 

“Make Whole Fundamental Change”
has the meaning specified in Section 10.03.

 

“Market
Disruption Event” means (i) a failure by the primary U.S. national or regional securities
exchange or market on which the Common Stock is 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 Trading Day for the Common Stock for
more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading
(by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Common Stock or
in any options, contracts or futures contracts relating to the Common Stock.

 

“Maturity Date” means
December 15, 2018.

 

“NASDAQ” means
The NASDAQ Global Select Market.

 

“Non-U.S. Holder” means
a Holder that is not treated as a United States person for U.S. federal income tax purposes as defined under Section 7701(a)(30)
of the Internal Revenue Code of 1986, as amended from time to time.

 

“Notes” means any Notes
issued, authenticated and delivered under this Indenture, including any Global Notes.

 

“Notice of Default”
has the meaning specified in Section 6.01.

 

“Offering Memorandum”
means the final offering memorandum, dated November 18, 2013, relating to the offering and sale by the Company of the Notes.

 

“Officer” means the
Chairman of the Board, a Vice Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, any
Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company, as applicable.

 

“Officers’ Certificate”
means a certificate signed by two Officers. One of the Officers executing an Officers’ Certificate in accordance with Section
4.05 shall be the Chairman of the Board, Vice Chairman of the Board, Chief Executive Officer or Chief Financial Officer of the
Company.

 

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

 

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

 

“Paying Agent” has the
meaning specified in Section 2.05.

 

    	7

    	 

    

 

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

 

“Physical Settlement”
has the meaning set forth in Section 10.02.

 

“Preferred Stock”, as
applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) that is preferred
as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution
of such Person, over shares of Capital Stock of any other class of such Person.

 

““protected purchaser”
has the meaning specified in Section 2.09.

 

“Purchase Agreement”
means the purchase agreement dated as of November 18, 2013 between the Company and the Initial Purchasers relating to the offer
and sale of the Notes.

 

“Record Date” means,
in respect of a dividend or distribution to holders of Common Stock, the date fixed for determination of holders of Common Stock
entitled to receive such dividend or distribution.

 

“Reference Property”
has the meaning specified in Section 10.05.

 

“Register” has the meaning
specified in Section 2.05.

 

“Registrar” has the
meaning specified in Section 2.05.

 

“Regular Record Date”
means, with respect to any Interest Payment Date of the Notes, the June 1 and December 1 preceding the applicable June 15 and December
15 Interest Payment Date, respectively.

 

“Reporting Additional Interest”
has the meaning specified in Section 6.12.

 

“Responsible Officer”
means, when used with respect to the Trustee, any officer within the corporate trust department of the Trustee (i) who shall have
direct responsibility for the administration of this Indenture or (ii) to whom any corporate trust matter is referred because of
such person’s knowledge of and familiarity with the particular subject.

 

“Restricted Common Stock
Legend” is as set forth in Exhibit B.

 

“Restricted Note Legend”
is as set forth in Exhibit A.

 

“Restricted Securities”
has the meaning specified in Section 2.08(c).

 

“Rule 144 Additional Interest”
has the meaning specified in Section 4.10(d).

 

“Rule 144A” means Rule
144A as promulgated under the Securities Act as it may be amended from time to time hereafter.

 

    	8

    	 

    

 

“Schedule TO” means
a Tender Offer Statement under Section 14(d)(1) or 13(e)(1) of the Exchange Act.

 

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

 

“SEC” means the Securities
and Exchange Commission.

 

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

 

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

 

“Settlement Method”
means, with respect to any conversion of Notes, Physical Settlement, Cash Settlement or Combination Settlement, as elected
(or deemed to have been elected) by the Company.

 

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

 

“Special Interest Payment Date”
has the meaning specified in Section 2.13(a).

 

“Special Record Date”
has the meaning specified in Section 2.13(a).

 

“Specified Dollar Amount”
means the maximum cash amount per $1,000 principal amount of Notes being converted to be received upon conversion as specified
in the notice specifying the Settlement Method (or deemed so specified).

 

“Spin-off” has the meaning
specified in Section 10.04(c).

 

“Stock Price” has the
meaning specified in Section 10.03.

 

“Subsidiary” of any
Person means any corporation, association, partnership or other business entity of which more than 50% of the total voting power
of the Voting Stock is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or
more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

 

“Successor Company”
has the meaning specified in Section 5.01(a).

 

“Trading
Day” means, except as provided in the following paragraph, a day on which (i) trading
in the Common Stock (or other security for which a closing sale price must be determined) generally occurs on the NASDAQ or, if
the Common Stock (or such other security) is not then listed on the NASDAQ, on the principal other U.S. national or regional securities
exchange on which the Common Stock (or such other security) is then listed or, if the Common Stock (or such other security) is
not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Stock (or
such other security) is then traded, and (ii) a closing sale price for the Common Stock (or closing sale price for such other security)
is available on such securities exchange or market. If the Common Stock (or such other security) is not so listed or traded, “Trading
Day” means a Business Day.

 

    	9

    	 

    

 

Notwithstanding the foregoing, for the
purposes of determining amounts due upon conversion only, “Trading Day” means a day on which (i) there is no Market
Disruption Event and (ii) trading in the Common Stock generally occurs on the NASDAQ or, if the Common Stock is not then listed
on the NASDAQ, on the principal other 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 listed or admitted for trading. If the Common Stock (or such other security) is not so listed or traded,
“Trading Day” means a Business Day.

 

“Trading
Price” per $1,000 principal amount of Notes on any date of determination means the
average of the secondary market bid quotations per $1,000 principal amount of Notes obtained by the bid solicitation agent for
$5,000,000 principal amount of the Notes at approximately 3:30 p.m., New York City time, on such determination date from two independent
nationally recognized securities dealers the Company selects, which may include one or more of the Initial Purchasers; provided
that if at least two such bids cannot reasonably be obtained by the bid solicitation agent, but one such bid can reasonably be
obtained by the bid solicitation agent, this one bid will be used. If the bid solicitation agent cannot reasonably obtain at least
one bid for $5,000,000 principal amount of the Notes from a nationally recognized securities dealer or, in the Company’s
reasonable judgment, the bid quotations are not indicative of the secondary market value of the Notes, then, for purposes of Section
10.01(d), the Trading Price per $1,000 principal amount of Notes will be deemed to be less than 98% of the applicable Conversion
Rate of the Notes multiplied by the Closing Sale Price of the Common Stock on such determination date. Any such determination will
be conclusive absent manifest error. The Company will be the initial bid solicitation agent.

 

“Trust Indenture Act”
means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as amended.

 

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

 

“Uniform Commercial Code”
means the New York Uniform Commercial Code as in effect from time to time.

 

“Valuation Period” has
the meaning specified in 10.04(c).

 

“Voting Stock” of any
Person means Capital Stock of such Person which ordinarily has voting power for the election of directors (or persons performing
similar functions) of such Person, whether at all times or only so long as no senior class of securities has such voting power
by reason of any contingency.

 

    	10

    	 

    

 

“VWAP”
or “volume weighted average price” per share of the Common Stock on any
Trading Day means such price as displayed on Bloomberg (or any successor service) page EXXI <EQUITY> AQR in respect of the
period from 9:30 a.m. to 4:00 p.m., New York City time, on such Trading Day; or, if such price is not available, the volume-weighted
average price means the market value per share of the Common Stock on such day as determined by a nationally recognized independent
investment banking firm retained for this purpose by the Company. The “volume-weighted average price” or “VWAP”
will be determined without regard to after hours trading or any other trading outside of the regular trading session trading hours
on NASDAQ (or, if other than NASDAQ, any other principal national securities exchange on which the Common Stock is then traded).

 

“Wholly Owned Subsidiary”
means a Subsidiary of the Company, all the Capital Stock of which (other than directors’ qualifying shares) is owned by the
Company or another Wholly Owned Subsidiary.

 

ARTICLE
2

The Notes

 

Section
2.01 Designation, Amount and Issuance of Notes.

 

The Notes shall be designated as “3.0%
Senior Convertible Notes due 2018.” The Notes shall initially be issued in an aggregate principal amount of $400,000,000,
as provided in the Purchase Agreement. Upon the execution of this Indenture, or from time to time thereafter, Notes may be executed
by the Company and delivered to the Trustee for authentication.

 

The Company may, without the consent of Holders,
issue additional Notes hereunder in the future on the same terms and conditions of the Notes issued hereunder, except for any differences
in the issue price and interest accrued prior to the issue date of the additional Notes (and with the same CUSIP numbers or different
CUSIP numbers); provided  that if the same CUSIP number is used for any such additional Notes, they must be part of the
same issue and fungible for U.S. federal income tax purposes as the Notes (such additional Notes, the “Additional Notes”).
The Notes initially issued hereunder and any such Additional Notes shall rank equally and ratably and shall be treated as a single
class for all purposes under this Indenture. The Company may not issue any Additional Notes if any Event of Default has occurred
with respect to the Notes, and is continuing.

 

Section
2.02 Form of the Notes.

 

The Notes and the Trustee’s certificate
of authentication to be borne by such Notes shall be substantially in the form set forth in Exhibit A hereto. The terms
and provisions contained in the form of Notes attached as Exhibit A hereto shall constitute, and are hereby expressly made,
a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

 

    	11

    	 

    

 

Any of the Notes may have such letters, numbers
or other marks of identification and such notations, legends, endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture,
or as may be required by the custodian for the Global Notes or the Depositary or as may be required for the Notes to be tradable
on any market developed for trading of securities pursuant to Rule 144A or as may be required to comply with any applicable law
or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange on which the Notes
may be listed, or to conform to usage, or to indicate any special limitations or restrictions to which any particular Notes are
subject.

 

So long as the Notes are eligible for book-entry
settlement with the Depositary, or unless otherwise required by law, or otherwise contemplated by Section 2.08(b), all of the Notes
shall be evidenced by one or more Notes in global form registered in the name of the Depositary or the nominee of the Depositary
(the “Global Notes”). The transfer and exchange of beneficial interests in any such Global Notes shall be effected
through the Depositary in accordance with this Indenture and the applicable procedures of the Depositary. Except as provided in
Section 2.08(b), beneficial owners of a Global Note shall not be entitled to have certificates registered in their names, shall
not receive or be entitled to receive physical delivery of certificates in definitive registered form and shall not be considered
Holders of such Global Note.

 

Any Global Notes shall represent such of the
outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate amount of outstanding Notes
from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time
be increased or reduced on the books and records of the Depositary and Trustee to reflect repurchases, conversions, transfers or
exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of
outstanding Notes represented thereby shall be made by the Trustee or the custodian for the Global Note, at the direction of the
Trustee, in such manner and upon instructions given by the Holder of such Notes in accordance with this Indenture. Payment of principal
of and any interest on any Global Notes shall be made to the Depositary in immediately available funds.

 

Section
2.03 Date and Denomination of Notes; Payment at Maturity; Payment of Interest.

 

(a) Date and Denomination. The Notes
shall be issuable in fully registered form without interest coupons in denominations of $1,000 principal amount and integral multiples
thereof. Each Note shall be dated the date of its authentication and shall bear interest from the date specified on the face of
the Notes.

 

(b) Payment at Maturity. On the Maturity
Date, each Holder shall be entitled to receive on such date, $1,000 in cash for each $1,000 in principal amount of Notes, together
with any accrued and unpaid interest thereon to, but excluding, the Maturity Date, unless such Note is earlier converted or repurchased.
With respect to Global Notes, principal and any interest shall be paid to the Depositary by wire transfer of immediately available
funds. With respect to any certificated Notes, principal and any interest shall be payable at the Company’s office or agency
in New York City, which initially shall be the office or agency of the Trustee located at the Corporate Trust Office. If the Maturity
Date is not a Business Day, payment shall be made on the next succeeding Business Day, and no additional interest shall accrue
thereon.

 

    	12

    	 

    

 

(c) Payment of Interest. Interest on
the Notes shall accrue at the rate of 3.0% per annum from the date of original issuance of the Notes or from the most recent date
to which interest has been paid or duly provided for. Interest shall be payable in arrears on June 15 and December 15 of each year
(each, an “Interest Payment Date”), commencing on June 15, 2014, to Holders of record at the close of business
on the applicable Regular Record Date. Notwithstanding the preceding sentence, (i) the Company will not pay in cash accrued interest
(excluding any additional interest) on any Notes when such Notes are converted, except as described in Section 10.02, and (ii)
with respect to the Interest Payment Date that falls on the Maturity Date, the Company will pay any accrued and unpaid interest
to the Person to whom the Company pays the principal amount (rather than the Holder of record on the corresponding Regular Record
Date).

 

The Company shall pay interest on:

 

(i) any Global Notes to the
Depositary in immediately available funds;

 

(ii) any Notes in certificated
form having a principal amount of less than $2,000,000, by check mailed to the address of the Person in whose name such Notes are
registered as it appears in the Register; and

 

(iii) any Notes in certificated
form having a principal amount of $2,000,000 or more, by wire transfer in immediately available funds to an account in the United
States of America at the election of the Holder of such Notes duly delivered to the Trustee at least five Business Days prior to
the relevant Interest Payment Date.

 

Interest on the Notes shall be calculated
on the basis of a 360-day year consisting of twelve 30-day months. If an Interest Payment Date is not a Business Day, payment shall
be made on the next succeeding Business Day, and no additional interest shall accrue thereon.

 

To the extent lawful, payments of principal
or interest (including additional interest, if any) on the Notes that are not made when due will accrue interest at the then applicable
interest rate on the Notes from the required payment date.

 

Section
2.04 Execution and Authentication.

 

One Officer shall sign the Notes for the Company
by manual or facsimile signature. If an Officer whose signature is on a Note no longer holds that office at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

 

A Note shall not be valid until an authorized
signatory of the Trustee manually authenticates the Note. Upon the written order of the Company signed by an Officer, the Trustee
shall authenticate a Note executed by the Company. The signature of the Trustee on the Note shall be conclusive evidence that the
Note has been duly and validly authenticated under this Indenture.

 

    	13

    	 

    

 

The Trustee may appoint an authenticating
agent reasonably acceptable to the Company to authenticate the Notes. Any such appointment shall be evidenced by an instrument
signed by a Responsible Officer, a copy of which shall be furnished to the Company. Unless limited by the terms of such appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication
by the Trustee includes authentication by such agent. An authenticating agent has the same rights as any Registrar, Paying Agent
or agent for service of notices and demands.

 

Section
2.05 Registrar and Paying Agent.

 

The Company shall maintain an office or agency
where Notes may be presented for registration of transfer or for exchange (the “Registrar”) and an office or
agency where Notes may be presented for payment (the “Paying Agent”). The Corporate Trust Office shall be considered
as one such office or agency of the Company for each of the aforesaid purposes. The Registrar shall keep a register of the Notes
(the “Register”) and of their transfer and exchange. The Company may have one or more co-registrars and one
or more additional paying agents. The term “Paying Agent” includes any additional paying agent, and the term “Registrar”
includes any co-registrars. The Company initially appoints the Trustee as (i) Registrar and Paying Agent in connection with the
Notes, (ii) the custodian with respect to the Global Notes and (iii) Conversion Agent.

 

The Company shall enter into an appropriate
agency agreement with any Registrar or Paying Agent not a party to this Indenture. The agreement shall implement the provisions
of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. If
the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation
therefore pursuant to Section 7.07. The Company or any of its Wholly Owned Subsidiaries that is not a Foreign Subsidiary may act
as Paying Agent or Registrar.

 

The Company may remove any Registrar or Paying
Agent upon written notice to such Registrar or Paying Agent and to the Trustee; provided, however, that no such removal
shall become effective until (1) acceptance of an appointment by a successor as evidenced by an appropriate agreement entered into
by the Company and such successor Registrar or Paying Agent, as the case may be, and delivered to the Trustee or (2) notification
to the Trustee that the Trustee shall serve as Registrar or Paying Agent until the appointment of a successor in accordance with
clause (1) above. The Registrar or Paying Agent may resign at any time upon written notice; provided, however, that the Trustee
may resign as Paying Agent or Registrar only if the Trustee also resigns as Trustee in accordance with Section 7.08.

 

    	14

    	 

    

 

Section
2.06 Paying Agent to Hold Money in Trust.

 

Prior to 11:00 a.m., New York City time, on
the Maturity Date, each Interest Payment Date, any Fundamental Change Repurchase Date and any settlement date of a Conversion Obligation,
the Company shall deposit with the Paying Agent (or if the Company or a Wholly Owned Subsidiary of the Company is acting as Paying
Agent, segregate and hold in trust for the benefit of the Persons entitled thereto) a sum sufficient to pay such amounts owed on
such dates. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall
hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of amounts owed on such
dates and shall notify the Trustee of any Default by the Company in making any such payment. If the Company or a Wholly Owned Subsidiary
of the Company acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund.
The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed
by the Paying Agent. Upon complying with this Section, the Paying Agent shall have no further liability for the money delivered
to the Trustee.

 

Section
2.07 Holder Lists.

 

The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the names and addresses of Holders and shall otherwise
comply with Section 312(a) of the Trust Indenture Act. If the Trustee is not the Registrar, or to the extent otherwise required
under the Trust Indenture Act, the Company shall furnish, or cause the Registrar to furnish, to the Trustee, in writing at least
five Business Days before each Interest Payment Date and at such other times as the Trustee may request in writing, a list in such
form and as of such date as the Trustee may reasonably require of the names and addresses of Holders and the Company shall otherwise
comply with Section 312(a) of the Trust Indenture Act.

 

Section
2.08 Exchange and Registration of Transfer of Notes; Restrictions on Transfer.

 

(a) The Company shall cause to be kept at
the Corporate Trust Office the Register in which, subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Notes and of transfers of Notes. The Register shall be in written form or in any form capable of
being converted into written form within a reasonably prompt period of time.

 

Upon surrender for registration of transfer
of any Notes to the Registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth in this Section
2.08, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Notes of any authorized denominations and of a like aggregate principal amount and bearing such restrictive legends
as may be required by this Indenture.

 

Notes may be exchanged for other Notes of
any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such
office or agency maintained by the Company pursuant to Section 4.02. Whenever any Notes are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Notes that the Holder making the exchange is entitled to receive
bearing registration numbers not contemporaneously outstanding.

 

    	15

    	 

    

 

All Notes issued upon any registration of
transfer or exchange of Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange.

 

All Notes presented or surrendered for registration
of transfer or for exchange, repurchase or conversion shall (if so required by the Company or the Registrar) be duly endorsed,
or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company, and the Notes shall be
duly executed by the Holder thereof or his attorney duly authorized in writing.

 

No service charge shall be made to any Holder
for any registration of, transfer or exchange of Notes, but the Company or the Trustee may require payment by the Holder of a sum
sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection with any registration of
transfer or exchange of Notes.

 

Neither the Company nor the Trustee nor any
Registrar shall be required to exchange, issue or register a transfer of (a) any Note or portions thereof surrendered for conversion
pursuant to Article 10 or (b) any Note or portions thereof tendered for repurchase (and not withdrawn) pursuant to Article 3.

 

(b) The following provisions shall apply only
to Global Notes:

 

(i) Each Global Note authenticated
under this Indenture shall be registered in the name of the Depositary or a nominee thereof and delivered to such Depositary or
a nominee thereof or custodian for the Global Notes therefor, and each such Global Note shall constitute a single Note for all
purposes of this Indenture.

 

(ii) Notwithstanding any other
provision in this Indenture, no Global Note may be exchanged in whole or in part for Notes registered, and no transfer of a Global
Note in whole or in part may be registered, in the name of any Person other than the Depositary or a nominee thereof unless:

 

(A) the Depositary has notified
the Company that it is unwilling or unable to continue as Depositary for such Global Note and a successor Depositary has not been
appointed within 60 calendar days;

 

(B) the Depositary has ceased
to be registered as a clearing agency under the Exchange Act and a successor Depositary has not been appointed within 60 calendar
days; or

 

    	16

    	 

    

 

(C) an Event of Default with
respect to the Notes has occurred and is continuing and the Depositary requests that its Notes be issued in physical, certificated
form.

 

(iii) In addition, certificated
Notes shall be issued in exchange for beneficial interests in a Global Note upon request by or on behalf of the Depositary in accordance
with customary procedures following the request of a beneficial owner seeking to enforce its rights under the Notes or this Indenture,
including its rights following the occurrence of an Event of Default.

 

(iv) Notes issued in exchange
for a Global Note or for any portion of a Global Note pursuant to clause (ii) or (iii) above shall be issued in definitive, fully
registered form, without interest coupons, shall have an aggregate principal amount equal to that of such Global Notes or portion
thereof to be so exchanged, shall be registered in such names and be in such authorized denominations as the Depositary shall designate
and shall bear any legends required hereunder. Any Global Notes to be exchanged shall be surrendered by the Depositary to the Trustee,
as Registrar; provided that pending completion of the exchange of a Global Note, the Trustee acting as custodian for the
Global Notes for the Depositary or its nominee with respect to such Global Notes, shall reduce the principal amount thereof, by
an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the books and records
of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make available for delivery the Notes
issuable on such exchange to or upon the written order of the Depositary or an authorized representative thereof.

 

(v) In the event of the occurrence
of any of the events specified in clause (ii) above or upon any request described in clause (iii) above, the Company shall promptly
make available to the Trustee a sufficient supply of certificated Notes in definitive, fully registered form, without interest
coupons.

 

(vi) Neither any members of,
or participants in, the Depositary (the “Agent Members”) nor any other Persons on whose behalf Agent Members
may act shall have any rights under this Indenture with respect to any Global Notes registered in the name of the Depositary or
any nominee thereof, and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner and holder of such Global Notes for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect
to any written certification, proxy or other authorization furnished by the Depositary or such nominee, as the case may be, or
impair, as between the Depositary, its Agent Members and any other Person on whose behalf an Agent Member may act, the operation
of customary practices of such Persons governing the exercise of the rights of a Holder of any Notes.

 

    	17

    	 

    

 

(vii) At such time as all interests
in a Global Note have been repurchased, converted, cancelled or exchanged for Notes in certificated form, such Global Note shall,
upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions existing between the Depositary
and the custodian for the Global Note. At any time prior to such cancellation, if any interest in a Global Note is repurchased,
converted, cancelled or exchanged for Notes in certificated form, the principal amount of such Global Note shall, in accordance
with the standing procedures and instructions existing between the Depositary and the custodian for the Global Note, be appropriately
reduced, and an endorsement shall be made on such Global Note, by the Trustee or the custodian for the Global Note, at the direction
of the Trustee, to reflect such reduction.

 

(c) Every Note (and all securities issued
in exchange therefor or in substitution thereof) that bears or is required under this Section 2.08(c) to bear the Restricted Note
Legend (together with any Common Stock issued upon conversion of the Notes and required to bear the Restricted Common Stock Legend,
collectively, the “Restricted Securities”) shall be subject to the restrictions on transfer set forth in this
Section 2.08(c) (including those set forth in the Restricted Note Legend and the Restricted Common Stock Legend) unless such restrictions
on transfer shall be waived by written consent of the Company following receipt of legal advice supporting the permissibility of
the waiver of such transfer restrictions, and the holder of each such Restricted Security, by such holder’s acceptance thereof,
agrees to be bound by all such restrictions on transfer. As used in this Section 2.08(c), the term “transfer” means
any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest therein.

 

(d) Until the date (the “Resale Restriction
Termination Date”) that is the later of (1) the date that is one year after the last date of the original issuance of
the Notes, or such shorter period of time as permitted by Rule 144 under the Securities Act or any successor provision thereunder,
and (2) such later date, if any, as may be required by applicable laws, any certificate evidencing a Restricted Security shall
bear the Restricted Note Legend (or in the case of Common Stock issued upon conversion of the Notes, the Restricted Common Stock
Legend), unless such Restricted Security has been sold pursuant to a registration statement that has been declared effective under
the Securities Act (and which continues to be effective at the time of such transfer) or sold pursuant to Rule 144 under the Securities
Act or any similar provision then in force, or unless otherwise agreed by the Company in writing as set forth above, with written
notice thereof to the Trustee. After the Resale Restriction Termination Date, the Restricted Note Legend shall be deemed no longer
applicable to the Notes.

 

(e) In connection with any transfer of the
Notes prior to the Resale Restriction Termination Date, the Holder must complete and deliver the form of assignment set forth on
the certificate representing the Note, with the appropriate box checked, to the Trustee (or any successor Trustee, as applicable).

 

    	18

    	 

    

 

Any Notes that are Restricted Securities and
as to which such restrictions on transfer shall have expired in accordance with their terms or as to conditions for removal of
the Restricted Note Legend set forth therein have been satisfied may, upon surrender of such Notes for exchange to the Registrar
in accordance with the provisions of this Section 2.08, be exchanged for a new Note or Notes, of like tenor and aggregate principal
amount, which shall not bear the restrictive legend required by Section 2.08(c). If such Restricted Security surrendered for exchange
is represented by a Global Note bearing the Restricted Note Legend, the principal amount of the legended Global Notes shall be
reduced by the appropriate principal amount and the principal amount of a Global Note without a Restricted Note Legend shall be
increased by an equal principal amount. If a Global Note without the Restricted Note Legend is not then outstanding, the Company
shall execute and the Trustee shall authenticate and deliver an unlegended Global Note to the Depositary. The Company shall notify
the Trustee in writing upon the Trustee’s request of the occurrence of the Resale Restriction Termination Date and shall
comply with the applicable procedures of the Depositary in connection with the issuance of an unlegended Global Note.

 

Any Common Stock issued upon conversion of
the Notes as to which such restrictions on transfer shall have expired in accordance with their terms may, upon surrender of the
certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for
the Common Stock, be exchanged for a new certificate or certificates for a like aggregate number of shares of Common Stock, which
shall not bear the Restricted Common Stock Legend.

 

(f) The Trustee shall have no responsibility
or obligation to any Agent Members or any other Person with respect to the accuracy of the books or records, or the acts or omissions,
of the Depositary or its nominee or of any participant or member thereof, with respect to any ownership interest in the Notes or
with respect to the delivery to any Agent Member or other Person (other than the Depositary) of any notice or the payment of any
amount, under or with respect to such Notes. All notices and communications to be given to the Holders of Notes and all payments
to be made to Holders of Notes under the Notes shall be given or made only to or upon the order of the registered Holders of Notes
(which shall be the Depositary or its nominee in the case of a Global Note). The rights of beneficial owners in any Global Notes
shall be exercised only through the Depositary subject to the customary procedures of the Depositary. The Trustee may rely and
shall be fully protected in relying upon information furnished by the Depositary with respect to its Agent Members.

 

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

 

    	19

    	 

    

 

Section
2.09 Replacement Notes.

 

If a mutilated Note is surrendered to the
Registrar or if the Holder claims that the Note has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee
shall authenticate a replacement Note if the Holder takes the following actions and satisfies the requirements of Section 8-405
of the Uniform Commercial Code:

 

(a) notifies the Company or the Trustee within
a reasonable time after he has notice of such loss, destruction or wrongful taking and prior to the Registrar registering a transfer
of such Note;

 

(b) makes a request to the Company or the
Trustee for a replacement Note prior to the Note being acquired by a protected purchaser as defined in Section 8-303 of the Uniform
Commercial Code (a “protected purchaser”); and

 

(c) satisfies any other reasonable requirements
of the Company or the Trustee, including the requirements set forth in the following paragraph.

 

If required by the Trustee or the Company,
such Holder shall furnish an indemnity bond sufficient in the judgment of the Trustee and the Company to protect the Company, the
Trustee, the Paying Agent and the Registrar from any loss, expense, claim or liability that any of them may suffer if a Note is
replaced and subsequently presented or claimed for payment. The Company and the Trustee may charge the Holder for their expenses
in replacing a Note. In case any Note which has matured or is about to mature or has been validly tendered for repurchase on a
Fundamental Change Repurchase Date (and not validly withdrawn), or is to be converted, shall become mutilated or be destroyed,
lost or stolen, the Company may, instead of issuing a substitute Note, pay or authorize the payment of or convert or authorize
the conversion of the same (without surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant
for such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such
security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused
by or in connection with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish
to the Company, the Trustee and, if applicable, any Paying Agent or Conversion Agent evidence to their satisfaction of the destruction,
loss or theft of such Notes and of the ownership thereof.

 

Every replacement Note is an additional obligation
of the Company.

 

The provisions of this Section 2.09 are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
lost, destroyed or wrongfully taken Notes.

 

Section
2.10 Outstanding Notes.

 

Notes outstanding at any time are all Notes
authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation and those described in this
Section as not outstanding. A Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the
Note.

 

    	20

    	 

    

 

If a Note is replaced pursuant to Section
2.09, it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Note
is held by a protected purchaser.

 

If the Paying Agent segregates and holds in
trust, in accordance with this Indenture, on a Fundamental Change Repurchase Date or Maturity Date money sufficient to pay all
principal and interest payable on that date with respect to the Notes (or portions thereof) to be repurchased or maturing, as the
case may be, and the Paying Agent is not prohibited from paying such money to the Holders on that date pursuant to the terms of
this Indenture, then on and after that date such Notes (or portions thereof) cease to be outstanding and interest on them ceases
to accrue.

 

Section
2.11 Temporary Notes.

 

Pending the preparation of Notes in certificated
form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon the written request
of the Company, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes shall be issuable in any authorized
denomination, and substantially in the form of the Notes in certificated form, but with such omissions, insertions and variations
as may be appropriate for temporary Notes, all as may be determined by the Company. Any such temporary Notes shall be executed
by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the
same manner, and with the same effect, as the Notes in certificated form. Without unreasonable delay, the Company shall execute
and deliver to the Trustee or such authenticating agent Notes in certificated form and thereupon any or all temporary Notes may
be surrendered in exchange therefor, at each office or agency maintained by the Company pursuant to Section 4.02 and the Trustee
or such authenticating agent shall authenticate and make available for delivery in exchange for such temporary Notes an equal aggregate
principal amount of Notes in certificated form. Such exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Notes in certificated form authenticated and delivered hereunder.

 

Section
2.12 Repurchase and Cancellation.

 

The Company may, to the extent permitted by
law, repurchase any Notes in the open market or by tender offer at any price or by private agreement. Any Notes repurchased by
the Company will be surrendered to the Trustee for cancellation, but such Notes may not be reissued or resold by the Company. Any
Notes surrendered for cancellation to the Trustee may not be reissued or resold and shall be promptly cancelled by the Trustee
in accordance with its standard procedures.

 

    	21

    	 

    

 

Section
2.13 Defaulted Interest.

 

Any interest on any Note which is payable,
but is not paid when the same becomes due and payable and such nonpayment continues for a period of 30 calendar days, shall forthwith
cease to be payable to the Holder on the Regular Record Date, and such defaulted interest and interest (to the extent lawful) on
such defaulted interest at the annual rate borne by the Notes (such defaulted interest and interest thereon herein collectively
called “Defaulted Interest”) shall be paid by the Company at its election, in each case, as provided in clause
(a) or (b) below:

 

(a) The Company may elect to make payment
of any Defaulted Interest to the Persons in whose names the Notes (or their respective predecessor Notes) are registered at the
close of business on a Special Record Date (as defined below) for the payment of such Defaulted Interest, which shall be fixed
in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Note and the date (not less than 30 calendar days after such notice) of the proposed payment (the “Special Interest
Payment Date”), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a record date (the “Special
Record Date”) for the payment of such Defaulted Interest which shall be not more than fifteen calendar days and not less
than ten calendar days prior to the Special Interest Payment Date and not less than ten calendar days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date, and in
the name and at the expense of the Company, shall promptly cause notice of the proposed payment of such Defaulted Interest and
the Special Record Date and Special Interest Payment Date therefor to be given to each Holder, not less than ten calendar days
prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date and Special
Interest Payment Date therefor having been so given, such Defaulted Interest shall be paid on the Special Interest Payment Date
to the Persons in whose names the Notes (or their respective predecessor Notes) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to the following clause (b).

 

(b) The Company may make payment of any Defaulted
Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

(c) Subject to the foregoing provisions of
this Section 2.13, each Note delivered under this Indenture upon registration of, transfer of or in exchange for or in lieu of
any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Note.

 

    	22

    	 

    

 

Section
2.14 CUSIP and ISIN Numbers.

 

The Company in issuing the Notes may use “CUSIP”
and “ISIN” numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” and “ISIN”
numbers in notices of repurchase as a convenience to Holders; provided, however, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or as contained in any notice of a
repurchase and that reliance may be placed only on the other identification numbers printed on the Notes, and any such repurchase
shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee in writing of
any changes to the “CUSIP” or “ISIN” numbers of the Notes.

 

ARTICLE
3

Repurchase of Notes

 

Section
3.01 Repurchase at Option of Holders Upon a Fundamental Change.

 

(a) If a Fundamental Change occurs at any
time prior to the Maturity Date, each Holder shall have the right to require the Company to repurchase all or part of such Holder’s
Notes in a principal amount thereof that is equal to $1,000 in principal amount or whole multiples thereof, on the date (the “Fundamental
Change Repurchase Date”) specified by the Company in the Fundamental Change Company Notice that is not less than 20 nor
more than 35 calendar days after the date of the Fundamental Change Company Notice at a repurchase price, payable in cash, equal
to 100% of the principal amount of the Notes being repurchased, plus accrued and unpaid interest to, but excluding, the Fundamental
Change Repurchase Date (the “Fundamental Change Repurchase Price”). However, if such Fundamental Change Repurchase
Date is after a Regular Record Date and on or prior to the corresponding Interest Payment Date, the full amount of interest due
shall be paid on the Interest Payment Date to the Holder of record on the Regular Record Date and the Fundamental Change Repurchase
Price shall be equal to 100% of the principal amount of Notes to be repurchased. Repurchases of Notes under this Section 3.01 shall
be made upon:

 

(1) delivery to the Trustee
by a Holder of a duly completed written notice (the “Fundamental Change Repurchase Notice”) of such Holder’s
exercise of its repurchase right (together with the Notes to be repurchased, if certificated Notes have been issued) in the form
set forth on the reverse of the Note prior to the close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date (the “Fundamental Change Repurchase Expiration Time”); and

 

(2) delivery or book-entry transfer
of the Notes to the Trustee or Paying Agent at any time after delivery of the Fundamental Change Repurchase Notice (together with
all necessary endorsements) and prior to the Fundamental Change Repurchase Expiration Time, at the Corporate Trust Office of the
Trustee or Paying Agent, such delivery being a condition to receipt by the Holder of the Fundamental Change Repurchase Price therefor;
provided, that such Fundamental Change Repurchase Price shall be so paid pursuant to this Section 3.01 only if the Notes
so delivered to the Trustee or Paying Agent shall conform in all respects to the description thereof in the related Fundamental
Change Repurchase Notice.

 

    	23

    	 

    

 

The Fundamental Change Repurchase
Notice shall state:

 

(i) with respect to Global
Notes, the appropriate Depositary information and, with respect to certificated Notes, the certificate numbers, if any, of the
Notes to be tendered for repurchase;

 

(ii) the portion of the principal
amount of the Notes to be repurchased, which must be $1,000 or whole multiples thereof; and

 

(iii) that the Notes are to
be repurchased by the Company pursuant to the applicable provisions of the Notes and this Indenture.

 

Payment of the Fundamental Change Repurchase
Price for Notes for which a Fundamental Change Repurchase Notice has been delivered and not withdrawn is conditioned upon book-entry
transfer or delivery of the Notes, together with necessary endorsements, to the Paying Agent, as the case may be. Payment of the
Fundamental Change Repurchase Price for the Notes shall be made on the later of the Fundamental Change Repurchase Date and the
time of book-entry transfer or delivery of the Notes, as the case may be.

 

All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Notes for repurchase shall be determined by the Company, whose determination
shall be final and binding absent manifest error.

 

Notwithstanding anything herein to the contrary,
any Holder delivering to the Trustee or Paying Agent the Fundamental Change Repurchase Notice contemplated by this Section 3.01
shall have the right to withdraw such Fundamental Change Repurchase Notice at any time prior to the Fundamental Change Repurchase
Expiration Time by delivering a written notice of withdrawal to the Trustee or Paying Agent in accordance with Section 3.02 below.

 

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

 

(b) On or before the 10th calendar day after
the occurrence of a Fundamental Change, the Company shall provide to all Holders of record on the date of the Fundamental Change
at their addresses shown in the Register of the Registrar, the Trustee and the Paying Agent, a written notice (the “Fundamental
Change Company Notice”) of the occurrence of the Fundamental Change and the resulting repurchase right. Each Fundamental
Change Company Notice shall specify, among other things:

 

(i) the events causing the
Fundamental Change;

 

(ii) the date of the Fundamental
Change;

 

    	24

    	 

    

 

(iii) the Fundamental Change
Repurchase Date;

 

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

 

(v) the Fundamental Change
Repurchase Price;

 

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

 

(vii) the procedures that a
Holder must follow to exercise the right to repurchase upon a Fundamental Change;

 

(viii) that the Fundamental
Change Repurchase Price for any Notes as to which a Fundamental Change Repurchase Notice has been given and not withdrawn shall
be paid on the later of such Fundamental Change Repurchase Date and the time of book-entry transfer or delivery of the Notes (together
with all necessary endorsements);

 

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

 

(x) that a Holder shall be
entitled to withdraw its election in the Fundamental Change Repurchase Notice prior to the close of business on the Business Day
immediately preceding the Fundamental Change Repurchase Date, by means of a letter or facsimile transmission (receipt of which
is confirmed and promptly followed by a letter) setting forth the name of such Holder, a statement that such Holder is withdrawing
its election to have Notes purchased by the Company on such Fundamental Change Repurchase Date pursuant to a repurchase upon a
Fundamental Change, the certificate number(s) of such Notes to be so withdrawn, if such Notes are certificated Notes, the principal
amount of the Notes of such Holder to be so withdrawn, which amount must be $1,000 or an integral multiple thereof and the principal
amount, if any, of the Notes of such Holder that remain subject to the Fundamental Change Repurchase Notice delivered by such Holder
in accordance with this Section 3.01, which amount must be $1,000 or an integral multiple thereof;

 

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

 

    	25

    	 

    

 

(xii) that Notes with respect
to which a Fundamental Change Repurchase Notice is given by a Holder may be converted pursuant to Article 10 only if such Fundamental
Change Repurchase Notice has been withdrawn in accordance with this Section 3.01 or the Company defaults in the payment of the
Fundamental Change Repurchase Price; and

 

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

 

No failure of
the Company to give the foregoing notices and no defect therein shall limit the repurchase rights of Holders or affect the validity
of the proceedings for the repurchase of the Notes pursuant to this Section 3.01.

 

(c) Notwithstanding the foregoing, no Notes
may be repurchased by the Company at the option of the Holders upon a Fundamental Change if the principal amount of the Notes has
been accelerated, and such acceleration has not been rescinded, on or prior to the Fundamental Change Repurchase Date (except in
the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental Change Repurchase Price with
respect to such Notes).

 

Section
3.02 Withdrawal of Fundamental Change Repurchase Notice.

 

A Fundamental Change Repurchase Notice may
be withdrawn by means of a written notice of withdrawal delivered to the Trustee or Paying Agent prior to the Fundamental Change
Repurchase Expiration Time. The withdrawal notice must state:

 

(a) with respect to Global Notes, the appropriate
Depositary information and, with respect to certificated Notes, the certificate number, if any, of the withdrawn Notes;

 

(b) the principal amount of the withdrawn
Notes; and

 

(c) the principal amount, if any, of such
Notes that remains subject to the original Fundamental Change Repurchase Notice, which portion must be in principal amounts of
$1,000 or multiples of $1,000.

 

Section
3.03 Deposit of Fundamental Change Repurchase Price.

 

Prior to 11:00 a.m., New York City time, on
the Fundamental Change Repurchase Date, the Company shall deposit with the Paying Agent or, if the Company or a Wholly Owned Subsidiary
of the Company is acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.06, an amount of cash
in immediately available funds, sufficient to pay the aggregate Fundamental Change Repurchase Price of all the Notes or portions
thereof that are to be repurchased as of the Fundamental Change Repurchase Date.

 

    	26

    	 

    

 

If the Paying Agent holds on the Fundamental
Change Repurchase Date cash sufficient to pay the Fundamental Change Repurchase Price of the Notes that Holders have elected to
require the Company to repurchase in accordance with Section 3.01, then, as of the Fundamental Change Repurchase Date:

 

(i) such Notes shall cease
to be outstanding and interest shall cease to accrue, whether or not book-entry transfer of the Notes has been made or the Notes
have been delivered to the Paying Agent, as the case may be; and

 

(ii) all other rights of the
Holders of such Notes shall terminate, other than the right to receive the Fundamental Change Repurchase Price upon delivery or
transfer of such Notes.

 

Section
3.04  Notes Repurchased in Part.

 

Upon presentation of any Notes repurchased
only in part, the Company shall execute and the Trustee shall authenticate and make available for delivery to the Holder thereof,
at the expense of the Company, a new Note or Notes, of any authorized denomination, in aggregate principal amount equal to the
unrepurchased portion of the Notes presented.

 

Section
3.05 Covenant to Comply with Securities Laws Upon Repurchase of Notes.

 

In connection with any repurchase upon a Fundamental
Change, the Company shall, to the extent applicable, (i) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender
offer rules under the Exchange Act that may be applicable at the time of the offer to repurchase the Notes; (ii) file a Schedule
TO or any other schedule required under the Exchange Act; and (iii) comply with all other federal and state securities laws in
connection with the Company’s repurchase of the Notes.

 

ARTICLE
4

Covenants

 

Section
4.01 Payment of Notes.

 

The Company shall promptly pay the principal
of and interest on the Notes on the dates and in the manner provided in the Notes and in this Indenture. Principal and interest
shall be considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this Indenture
money sufficient to pay all principal and interest then due and the Trustee or the Paying Agent, as the case may be, is not prohibited
from paying such money to the Holders on that date pursuant to the terms of this Indenture.

 

The Company shall pay interest on overdue
principal at the rate specified therefor in the Notes, and, to the extent lawful, it shall pay interest on overdue installments
of interest at the rate and in the manner specified in Section 2.13.

 

    	27

    	 

    

 

Section
4.02 Maintenance of Office or Agency.

 

The Company shall maintain an office or agency
where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion or
repurchase and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. As of
the date of this Indenture, such office is located at the Corporate Trust Office and, at any other time, at such other address
as the Trustee may designate from time to time by notice to the Company. The Company shall give prompt written notice to the Trustee
of the location, and any change in the location, of such office or agency not designated or appointed by the Trustee. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office.

 

The Company may also from time to time designate
co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations. The Company shall give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or agency.

 

Section
4.03 Reports; Rule 144A Information.

 

(a) The Company shall deliver to the Trustee,
within 15 calendar days after the Company is required to file the same with the SEC, copies of the annual reports and of the information,
documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe)
that the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The filing of these reports
with the SEC through its EDGAR database within the time periods for filing the same under the Exchange Act (taking into account
any applicable grace periods provided thereunder) shall satisfy the Company’s obligation to furnish such reports to the Trustee.
The Company shall promptly notify the Trustee in writing if the Company fails to file any such reports. In the absence of such
notification, the Trustee shall be entitled to presume that such filings were made.

 

(b) The Company shall, so long as any of the
Notes or any shares of Common Stock issuable upon conversion thereof will, at such time, constitute “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, promptly provide to the Trustee and the Company shall, upon written
request, provide to any Holder, beneficial owner or prospective purchaser of such Notes or any shares of Common Stock issuable
upon conversion of such Notes the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act to
facilitate the resale of such Notes or shares of Common Stock pursuant to Rule 144A under the Securities Act (“Rule 144A”).

 

(c) Delivery of such reports, information
and documents to the Trustee is for information purposes only and the Trustee’s receipt of such shall not constitute constructive
notice of any information contained therein or determinable from information contained therein, including the Company’s compliance
with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).
The Trustee is under no duty to examine such reports, information or documents to ensure compliance with the provisions of this
Indenture or to ascertain the correctness or otherwise of the information or the statements contained therein. The Trustee is entitled
to assume such compliance and correctness unless a Responsible Officer of the Trustee is given written notice otherwise.

 

    	28

    	 

    

 

Section
4.04 Existence.

 

Subject to Article 5, the Company shall do
or cause to be done all things necessary to preserve and keep in full force and effect its existence and rights (charter and statutory);
provided that the Company shall not be required to preserve any such right if the Company shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in
any material respect to the Holders.

 

Section
4.05 Compliance Certificate.

 

The Company shall deliver to the Trustee within
120 calendar days after the end of each fiscal year of the Company an Officers’ Certificate, stating whether or not, to the
knowledge of each such Officer, any Default or Event of Default occurred during such period and if so, describing each Default
or Event of Default, its status and the action the Company is taking or proposes to take with respect thereto.

 

Section
4.06 [Reserved.]

 

Section
4.07 Notification of Rule 144 Additional Interest or Reporting Additional Interest.

 

If Rule 144 Additional Interest or Reporting
Additional Interest, as applicable, is payable by the Company, the Company shall deliver to the Trustee an Officers’ Certificate
to that effect stating (i) the amount of such Rule 144 Additional Interest or Reporting Additional Interest, as applicable, that
is payable and (ii) the date on which payment of such Rule 144 Additional Interest or Reporting Additional Interest, as applicable,
shall commence. Unless and until a Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Rule 144 Additional Interest or Reporting Additional Interest, as applicable, is payable.

 

Section
4.08 Statement by Officer as to Default.

 

The Company shall deliver notice to the Trustee,
promptly upon becoming aware of the occurrence of any Event of Default or Default, an Officers’ Certificate setting forth
the details of such Event of Default or Default, its status and the action that the Company proposes to take with respect thereto.

 

    	29

    	 

    

 

Section
4.09 Waiver of Stay, Extension or Usury Laws.

 

The Company covenants (to the extent it may
lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take benefit or advantage
of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of
the principal of or interest on the Notes as contemplated herein, wherever enacted, now or at any time; the Company (to the extent
it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, by resort
to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit
the execution of every such power as though no such law had been enacted.

 

Section
4.10 Rule 144 Additional Interest.

 

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

 

(b) If, and for so long as, the Restricted
Note Legend on the Notes has not been removed or otherwise become inapplicable pursuant to Section 2.08(d) or the Notes are not
freely tradable by Holders other than the Company’s Affiliates or Persons that were Affiliates of the Company during the
immediately preceding three months (without restrictions pursuant to U.S. securities law), in each case as of the 370th day after
the last date of original issuance of the Notes, the Company shall pay additional interest on the Notes at a rate equal to 0.25%
per annum of the principal amount of Notes outstanding until the Notes are so freely tradable; provided that the Company will have
no such obligation to pay additional interest if the failure to remove or otherwise render the Restricted Note Legend inapplicable
is a result of DTC not permitting such removal. In no event will the amount of additional interest owed pursuant to this Section
4.10, taken together with interest that may accrue at the Company’s election as the sole remedy relating to the failure to
comply with the Company’s reporting obligations pursuant to Section 6.12, exceed 0.50% per annum in the aggregate.

 

(c) The Company shall use its reasonable best
efforts to cause the restricted CUSIP number on the Notes to be changed to an unrestricted CUSIP number no later than 370 days
after the last date of original issuance of the Notes.

 

(d) Additional interest payable in accordance
with Section 4.10(a) or (b) (“Rule 144 Additional Interest”) shall be payable in arrears on each Interest Payment
Date following accrual in the same manner as regular interest on the Notes.

 

    	30

    	 

    

 

ARTICLE
5

Successor Company

 

Section
5.01 Consolidation, Amalgamation, Merger and Sale of Assets.

 

The Company shall not, in a single transaction
or a series of related transactions, consolidate with, amalgamate with or merge with or into any other Person or sell, convey,
transfer or lease the Company’s property and assets substantially as an entirety to another Person, unless:

 

(a) either (i) the Company is the continuing
corporation or company or (ii) the resulting, surviving or transferee Person (if other than the Company) (the “Successor
Company”) is a company or corporation organized and existing under the laws of Bermuda, the United States, any state
thereof or the District of Columbia and such Person assumes, by a supplemental indenture in a form reasonably satisfactory to the
Trustee, all of the Company’s obligations under the Notes and this Indenture;

 

(b) immediately after giving effect to the
transaction, no Default or Event of Default has occurred and is continuing; and

 

(c) the Company has delivered to the Trustee
the Officers’ Certificate and Opinion of Counsel pursuant to Section 5.03.

 

Section
5.02 Successor to Be Substituted.

 

In case of any such transaction described
in Section 5.01 and upon the assumption by the Successor Company, by supplemental indenture, executed and delivered to the Trustee
and reasonably satisfactory in form and substance to the Trustee, of the due and punctual payment of the principal of and interest
on all of the Notes, and the due and punctual performance and observance of all of the covenants and conditions of this Indenture
to be performed or satisfied by the Company, such Successor Company shall succeed, and be substituted for, and may exercise every
right and power of, the Company, and the Company shall be discharged from its obligations under the Notes and this Indenture.

 

Section
5.03 Opinion of Counsel to Be Given Trustee.

 

Prior to execution of any supplemental indenture
pursuant to this Article 5, the Trustee shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence
that any such consolidation, merger, amalgamation, sale, conveyance, transfer, lease or other disposition and any such assumption
complies with the provisions of this Article 5.

 

    	31

    	 

    

 

ARTICLE
6

Defaults and Remedies

 

Section
6.01 Events of Default.

 

An “Event of Default” occurs
if:

 

(a) the Company fails to pay any interest
on the Notes when due and such failure continues for a period of 30 calendar days;

 

(b) the Company fails to pay principal of
the Notes when due at maturity, or the Company fails to pay the Fundamental Change Repurchase Price payable in respect of any Notes
when due;

 

(c) the Company fails to pay or deliver when
due, as the case may be, cash, shares of Common Stock, or a combination of cash and shares of Common Stock, as the case may be,
in accordance with Article 10, upon the conversion of any Notes and such failure continues for five calendar days;

 

(d) the Company fails to comply with Article
5;

 

(e) the Company fails to provide any required
notice of any transaction described under Section 10.01(b) and such failure continues for five calendar days;

 

(f) the Company fails to provide any required
notice of the effective date of a Fundamental Change on a timely basis as required by Sections 3.01(b), which failure continues
for five calendar days;

 

(g) the Company fails to perform or observe
any other term, covenant or agreement in the Notes or this Indenture for a period of 60 calendar days after written notice of such
failure is given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding;

 

(h) the failure to pay when due (whether at
stated maturity or otherwise) or a default that results in the acceleration of maturity, of any indebtedness for borrowed money
of the Company or any Significant Subsidiary in an aggregate amount in excess of $25,000,000 (or its foreign currency equivalent),
unless such indebtedness is discharged, or such acceleration is rescinded, stayed or annulled, within a period of 30 calendar days
after written notice of such failure is given by the Trustee or to the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding;

 

(i) a final judgment for the payment in excess
of $25,000,000 (or its foreign currency equivalent), excluding any amounts covered by insurance, rendered against the Company or
any Significant Subsidiary of the Company, which judgment is discharged or stayed within 30 calendar days after (A) the date on
which the right to appeal or petition for review thereof has expired if no such appeal or review has commenced, or (B) the date
on which all rights to appeal or petition for review have been extinguished;

 

    	32

    	 

    

 

(j) the Company or any of its Significant
Subsidiaries pursuant to or within the meaning of any Bankruptcy Law:

 

(1) commences a voluntary case;

 

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

 

(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; or

 

(5) or takes any comparable
action under any foreign laws relating to insolvency; or

 

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

 

(1) is for relief against the
Company or any of its Significant Subsidiaries in an involuntary case;

 

(2) appoints a Custodian of
the Company or any of its Significant Subsidiaries or for any substantial part of its property;

 

(3) orders the winding up or
liquidation of the Company or any of its Significant Subsidiaries; or

 

(4) any similar relief is granted
under any foreign laws and the order or decree remains unstayed and in effect for 60 calendar days.

 

The foregoing shall constitute Events of
Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is 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.

 

The term “Bankruptcy Law”
means Title 11, United States Code, or any similar federal, state or foreign law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

 

Section
6.02 Acceleration.

 

If an Event of Default specified in Section
6.01(j) or (k) with respect to the Company occurs, the principal amount of the Notes and accrued and unpaid interest on the outstanding
Notes shall automatically become due and payable without any declaration or other act on the part of the Trustee or any Holders.
If an Event of Default (other than an Event of Default specified in Section 6.01(j) or (k) with respect to the Company) occurs
and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in aggregate principal amount of the outstanding
Notes by notice to the Company and the Trustee, may declare the principal amount of the Notes and accrued and unpaid interest on
the outstanding Notes to be due and payable. Thereupon, the Trustee may, in its discretion, proceed to protect and enforce the
rights of Holders by appropriate judicial proceedings.

 

    	33

    	 

    

 

After a declaration of acceleration, but
before a judgment or decree for payment of the money due has been obtained by the Trustee, the Holders of a majority in aggregate
principal amount of the Notes outstanding, by written notice to the Company and the Trustee, may rescind and annul such declaration
if:

 

(a) the Company has paid (or deposited with
the Trustee a sum sufficient to pay):

 

(1) all overdue interest on all
Notes;

 

(2) the principal amount of any
Notes that have become due otherwise than by such declaration of acceleration;

 

(3) to the extent that payment
of such interest is lawful, interest upon overdue interest; and

 

(4) all sums paid or advanced
by the Trustee under this Indenture and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel; and

 

(b) all Events of Default, other than the
non-payment of the principal amount of the Notes and any accrued and unpaid interest that have become due solely by such declaration
of acceleration, have been cured or waived.

 

No such rescission and annulment shall affect
any subsequent Default or Event of Default or impair any right consequent thereon.

 

Section
6.03 Other Remedies.

 

If an Event of Default occurs and is continuing,
the Trustee may pursue any available remedy to collect the payment of principal of or interest on the Notes or to enforce the performance
of any provision of the Notes or this Indenture.

 

The Trustee may maintain a proceeding even
if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission by the Trustee or
any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute
a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

 

    	34

    	 

    

 

Section
6.04 Waiver of Past Defaults.

 

The Holders of a majority in aggregate principal
amount of the Notes outstanding may, on behalf of all Holders, waive any past Default or Event of Default under this Indenture
and its consequences, except:

 

(a) the
Company’s failure to pay principal of or interest on any Notes when due (other than amounts
that have become due solely because of an acceleration that has been rescinded);

 

(b) the Company’s failure to convert
any Notes into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as the case may be, pursuant to
the terms of this Indenture;

 

(c) the Company’s failure to pay the
Fundamental Change Repurchase Price on the Fundamental Change Repurchase Date in connection with a Holder exercising its repurchase
rights; or

 

(d) the Company’s failure to comply
with any of the provisions of this Indenture that under Section 9.02 cannot be amended without the consent of each Holder affected.

 

When a Default is waived, it is deemed cured,
but no such waiver shall extend to any subsequent or other Default or impair any consequent right.

 

Section
6.05 Control by Majority.

 

The Holders of a majority in aggregate principal
amount of the outstanding Notes shall have the right to direct the time, method and place of any proceedings for any remedy available
to the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or, subject to
Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other Holders or would involve the Trustee in
personal liability or expense for which the Trustee has not received adequate indemnity as determined by it in good faith; provided,
however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction.
Prior to taking any action hereunder, the Trustee shall be entitled to indemnity or security reasonably satisfactory to it in its
sole discretion against all losses, liabilities, and expenses caused by taking or not taking such action.

 

    	35

    	 

    

 

Section
6.06 Limitation on Suits.

 

No Holder may pursue any remedy under this
Indenture, except in the case of a default in the payment of principal or interest on the Notes, unless:

 

(a) such Holder has given the Trustee written
notice of an Event of Default;

 

(b) the Holders of at least 25% in aggregate
principal amount of the outstanding Notes have made a written request to the Trustee to pursue the remedy, and offered reasonable
security or indemnity against any cost, liability or expense of the Trustee;

 

(c) the Trustee fails to comply with such
request within 60 calendar days after receipt of such request and the offer of indemnity; and

 

(d) the Trustee has not received an inconsistent
direction from the Holders of a majority in aggregate principal amount of the outstanding Notes.

 

A Holder may not use this Indenture to prejudice
the rights of another Holder or to obtain a preference or priority over another Holder (it being understood that the Trustee shall
not have any affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders).

 

Section
6.07 Rights of Holders to Receive Payment.

 

Notwithstanding any other provision of this
Indenture, the right of any Holder to receive payment of principal (including payments pursuant to the required repurchase provisions
of the Notes) of and interest on the Notes held by such Holder, on or after the respective due dates expressed in the Notes or
in the event of repurchase, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not
be impaired or affected without the consent of such Holder. In addition, notwithstanding any other provision of this Indenture,
the right of any Holder to enforce its rights of conversion in accordance with the provisions of Article 10, on or after the applicable
date for settlement of the Company’s Conversion Obligation, shall not be impaired or affected without the consent of such
Holder.

 

Section
6.08 Collection Suit by Trustee.

 

If an Event of Default specified in Section
6.01(a), (b) or (c) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with interest on any unpaid interest to the extent lawful)
and the amounts provided for in Section 7.07.

 

Section
6.09 Trustee May File Proofs of Claim.

 

The Trustee may file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel) and the Holders
allowed in any judicial proceedings relative to the Company, its Subsidiaries or their respective creditors or property and, unless
prohibited by law or applicable regulations, may be entitled and empowered to participate as a member of any official committee
of creditors appointed in such matter, and may vote on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make
payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and its counsel, and any other amounts due the Trustee under Section 7.07.

 

    	36

    	 

    

 

Section
6.10 Priorities.

 

If the Trustee collects any money or property
pursuant to this Article 6, it shall pay out the money or property in the following order:

 

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

 

SECOND: to Holders for amounts due and unpaid
on the Notes for principal (including payments pursuant to the required repurchase provisions of the Notes) and interest, ratably
without preference or priority of any kind, according to the amounts due and payable on the Notes for principal (including payments
pursuant to the required repurchase provisions of the Notes) and interest or in respect of any Conversion Obligation of the Company,
respectively; and

 

THIRD: to the Company.

 

The Trustee may fix a record date and payment
date for any payment to Holders pursuant to this Section 6.10. At least fifteen calendar days before such record date, the Trustee
shall send to each Holder and the Company a notice that states the record date, the payment date and amount to be paid.

 

Section
6.11 Undertaking for Costs.

 

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

 

Section
6.12 Failure to Comply with Reporting Covenant.

 

Notwithstanding anything to the contrary in
this Indenture, if the Company so elects, the sole remedy for an Event of Default relating to the failure to comply with the reporting
obligations in described in Section 4.03 hereof, shall, at the Company’s option, for the 180 calendar days after the occurrence
of such an Event of Default, consist exclusively of the right to receive Additional Interest on the Notes at an annual rate equal
to 0.25% of the principal amount of the Notes for the first 90 days of such period and 0.50% of the principal amount of the Notes
for the next 90 days of such period (“Reporting Additional Interest”). In the event the Company does not elect
to pay the Reporting Additional Interest upon an Event of Default in accordance with this Section 6.12, the Notes shall be subject
to acceleration as provided in Section 6.02. Reporting Additional Interest shall accrue on all outstanding Notes from and including
the date on which an Event of Default relating to a failure to comply with the reporting obligations in this Indenture first occurs
to, but not including, the 180th day (or such earlier date on which the Event of Default is cured or waived). On such
180th day if such Event of Default is continuing, such Reporting Additional Interest will cease to accrue and the Notes
will be subject to acceleration as provided in Section 6.02 above. Additional interest pursuant to the foregoing provisions will
be payable in arrears on each Interest Payment Date following accrual in the same manner as regular interest on the Notes. This
Section 6.12 will not affect the rights of Holders in the event of the occurrence of any other Event of Default, except as provided
in Section 4.10(b).

 

    	37

    	 

    

 

ARTICLE
7

Trustee

 

Section
7.01 Duties of Trustee.

 

(a) If an Event of Default has occurred and
is continuing, the Trustee shall exercise 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:

 

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

 

(2) in the absence of bad faith
on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However,
the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

 

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

 

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

 

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

 

    	38

    	 

    

 

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

 

(d) Every provision of this Indenture that
in any way relates to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

 

(e) The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree in writing with the Company.

 

(f) Money held in trust by the Trustee need
not be segregated from other funds except to the extent required by law.

 

(g) No provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured to it.

 

(h) Every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this
Section and to the provisions of the Trust Indenture Act.

 

Section
7.02 Rights of Trustee.

 

(a) The Trustee may rely on any document believed
by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter
stated in the document.

 

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

 

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

 

(d) The Trustee may consult with counsel,
and the advice or opinion of counsel with respect to legal matters relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and
in accordance with the advice or opinion of such counsel.

 

(e) The Trustee shall not be bound to make
any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond, debenture, note 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.

 

    	39

    	 

    

 

(f) The Trustee shall be under no obligation
to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Holders
pursuant to the provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which may be incurred therein or thereby.

 

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

 

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

 

(i) The Trustee shall not be liable for any
action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture.

 

(j) The Trustee shall not be required to give
any note, bond or surety in respect of the execution of the trusts and powers under this Indenture.

 

(k) The Trustee shall not be responsible or
liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or
indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood;
terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunction of utilities, computer
(hardware or software) or communication services; accidents; labor disputes; acts of civil or military authorities and governmental
action.

 

(l) Any request, direction, order or demand
of the Company mentioned herein shall be sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect
thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by copies
thereof certified by the Secretary or an Assistant Secretary (or equivalent Officer).

 

(m) The permissive rights of the Trustee set
forth in this Indenture shall not be construed as duties.

 

    	40

    	 

    

 

Section
7.03 Individual Rights of Trustee.

 

The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not Trustee. Any Conversion Agent, Paying Agent, Registrar or co-paying agent may do the same with like
rights. However, the Trustee must comply with Sections 7.10 and 7.11.

 

Section
7.04 Trustee’s Disclaimer.

 

The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s
use of the proceeds from the Notes, and it shall not be responsible for any statement of the Company in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other than the Trustee’s certificate of authentication.

 

Section
7.05 Notice of Defaults.

 

(a) The Trustee shall not be deemed to have
notice of any Default or Event of Default, unless a Responsible Officer has received written notice thereof at its Corporate Trust
Office, and such notice references this Indenture. No duty imposed upon the Trustee in this Indenture shall be applicable with
respect to any Default or Event of Default of which the Trustee is not deemed to have notice.

 

(b) If a Default or Event of Default occurs
and is continuing and if it is known to the Trustee, the Trustee shall send to each Holder at the address set forth in the Register
notice of the Default or Event of Default within 90 calendar days after it becomes aware of the occurrence of such Default or Event
of Default. Except in the case of a Default or Event of Default in payment of principal or interest on any Notes or a Default in
the failure to deliver the consideration due upon conversion, the Trustee may withhold notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding notice is in the interests of the Holders.

 

Section
7.06 Reports by Trustee to Holders.

 

Within 60 calendar days after each May 15
beginning with the May 15 following the date of this Indenture, the Trustee shall send to each Holder a brief report dated as of
such May 15 that complies with Section 313(a) of the Trust Indenture Act, if required by such Section 313(a) of the Trust Indenture
Act. The Trustee also shall comply with Section 313(b) of the Trust Indenture Act. The Trustee shall also transmit all reports
required by Section 313(c) of the Trust Indenture Act.

 

    	41

    	 

    

 

Section
7.07 Compensation and Indemnity.

 

The Company shall pay to the Trustee from
time to time such compensation as the Company and the Trustee shall from time to time agree in writing. The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation
for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Trustee’s
agents, counsel, accountants and experts. The Company shall indemnify the Trustee, and hold it harmless, against any and all loss,
liability or expense (including reasonable attorneys’ fees) incurred by or in connection with the offer and sale of the Notes
or the acceptance or administration of this trust and the performance of its duties or powers hereunder. The Trustee shall notify
the Company of any claim for which it may seek indemnity promptly upon obtaining actual knowledge thereof; provided, however, that
any failure so to notify the Company shall not relieve the Company of its indemnity obligations hereunder. The Company shall defend
the claim and the indemnified party shall provide reasonable cooperation at the Company’s expense in the defense. Such indemnified
parties may have separate counsel and the Company shall pay the fees and expenses of such counsel; provided, however, that
the Company shall not be required to pay such fees and expenses if it assumes such indemnified parties’ defense and, in such
indemnified parties’ reasonable judgment, there is no conflict of interest between the Company and such parties in connection
with such defense. Notwithstanding any of the foregoing, the Company need not reimburse any expense or indemnify against any loss,
liability or expense incurred by an indemnified party through such party’s own willful misconduct and negligence.

 

To secure the Company’s payment obligations
in this Section 7.07, the Trustee shall have a lien prior to the Notes on all money or property held or collected by the Trustee
other than money or property held in trust to pay principal of and interest and any liquidated damages on particular Notes.

 

The obligations of the Company pursuant to
this Section 7.07 shall survive the satisfaction or discharge of this Indenture, any rejection or termination of this Indenture
under any bankruptcy law or the resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of
an Event of Default specified in Section 6.01(j) or (k) with respect to the Company the expenses are intended to constitute expenses
of administration under the Bankruptcy Law.

 

Section
7.08 Replacement of Trustee.

 

The Trustee may resign at any time by so notifying
the Company. The Holders of a majority in principal amount of the Notes may remove the Trustee by so notifying the Trustee and
may appoint a successor Trustee. The Company shall remove the Trustee if:

 

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

 

(b) the Trustee is adjudged bankrupt or insolvent;

 

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

 

    	42

    	 

    

 

(d) the Trustee otherwise becomes incapable
of acting.

 

If the Trustee is removed by the Holders of
a majority in principal amount of the Notes and such Holders do not reasonably promptly appoint a successor Trustee, or if the
Trustee resigns, is removed by the Company or a vacancy otherwise exists in the office of Trustee for any reason (the Trustee in
such event being referred to herein as the retiring Trustee), the Company shall promptly appoint a successor Trustee.

 

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

 

If a successor Trustee does not take office
within 60 calendar days after the retiring Trustee resigns or is removed, the retiring Trustee or the Holders of 10% in principal
amount of the Notes may petition any court of competent jurisdiction (at the expense of the Company) for the appointment of a successor
Trustee.

 

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

 

Notwithstanding the replacement of the Trustee
pursuant to this Section, the Company’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

 

Section
7.09 Successor Trustee by Merger.

 

If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee.

 

In case at the time such successor or successors
by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by this Indenture any of the Notes shall
have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any
predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated,
any successor to the Trustee may authenticate such Notes either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or
in this Indenture provided that the certificate of the Trustee shall have.

 

    	43

    	 

    

 

Section
7.10 Eligibility; Disqualification.

 

The Trustee shall at all times satisfy the
requirements of Trust Indenture Act § 310(a). The Trustee shall have a combined capital and surplus of at least $100,000,000
as set forth in its most recent published annual report of condition. The Trustee shall comply with Trust Indenture Act §
310(b); provided, however, that there shall be excluded from the operation of Trust Indenture Act § 310(b)(1)
any indenture or indentures under which other securities or certificates of interest or participation in other securities of the
Company are outstanding if the requirements for such exclusion set forth in Trust Indenture Act § 310(b)(1) are met.

 

Section
7.11 Preferential Collection of Claims Against Company.

 

The Trustee shall comply with Trust Indenture
Act § 311(a), excluding any creditor relationship listed in Trust Indenture Act § 311(b). A Trustee who has resigned
or been removed shall be subject to Trust Indenture Act § 311(a) to the extent indicated.

 

ARTICLE
8

Discharge of Indenture

 

Section
8.01 Discharge of Liability on Notes.

 

(a) This Indenture shall, subject to Section
8.01(b), cease to be of further effect if:

 

(1) the Company (i) delivers
all outstanding Notes (other than Notes replaced pursuant to Section 2.09) to the Trustee for cancellation or (ii) (x) deposits
with the Trustee or the Paying Agent after such Notes have become due and payable, whether at stated maturity, upon conversion,
or on any Fundamental Change Repurchase Date, cash (including any cash in lieu of fractional shares in connection with the conversion)
and (y) in the case of a conversion for which a Physical Settlement or Combination Settlement applies, delivers to the converting
Holders shares of Common Stock issuable upon conversion, in each case calculated in accordance with this Indenture sufficient to
satisfy all obligations due on all outstanding Notes and pays all other sums payable under this Indenture; and

 

(2) the Company has delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided herein
relating to the satisfaction and discharge of this Indenture have been complied with.

 

(b) Notwithstanding Section 8.01(a), the obligations
of the Company in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 2.10, 7.07, 7.08 and in this Article 8 shall survive until the Notes have
been paid in full. Thereafter, the obligations of the Company in Sections 7.07, 8.03 and 8.04 shall survive.

 

    	44

    	 

    

 

Section
8.02 Application of Trust Money.

 

The Trustee shall hold in trust money or other
property due in respect of converted Notes or payments due under this Article 8 deposited with it pursuant to this Article 8. It
shall apply the deposited money through the Paying Agent and in accordance with this Indenture to the payment of principal of and
interest on the Notes due in respect of converted Notes, in accordance with this Indenture in relation to the conversion of Notes
pursuant to the terms hereof.

 

Section
8.03 Repayment to Company.

 

Subject to any applicable abandoned property
law, the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal
or interest and any shares of Common Stock or other property due in respect of converted Notes that remains unclaimed for two years,
and, thereafter, Holders entitled to the money and/or securities must look to the Company for payment as general creditors.

 

Section
8.04 Reinstatement.

 

If the Trustee or Paying Agent is unable to
apply any money or to deliver any other property due in respect of converted Notes or other payments due in accordance with this
Article 8 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Notes shall
be revived and reinstated as though no deposit had occurred pursuant to this Article 8 until such time as the Trustee or Paying
Agent is permitted to apply all such money or other property due in respect of converted Notes or other payments due in accordance
with this Article 8; provided, however, that, if the Company has made any payment of interest on or principal of any Notes
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE
9

Amendments

 

Section
9.01 Without Consent of Holders.

 

Notwithstanding Section 9.02, this Indenture
(including the terms and conditions of the Notes) and the Notes may be modified or amended by the Company and the Trustee, without
the consent of the Holders, to, among other things:

 

(a) provide for conversion rights of Holders
and the Company’s repurchase obligations in connection with a Fundamental Change and/or in the event of any events described
under Section 10.05;

 

(b) secure the Notes;

 

    	45

    	 

    

 

(c) provide for the assumption of the Company’s
obligations to the Holders in the event of a merger, amalgamation or consolidation, or sale, conveyance, transfer or lease of the
property and assets of the Company substantially as an entirety;

 

(d) surrender any right or power conferred
upon the Company;

 

(e) add to the Company’s covenants for
the benefit of the Holders;

 

(f) cure any ambiguity or correct or supplement
any inconsistent or otherwise defective provision contained in this Indenture; provided that such modification or amendment
does not adversely affect the interests of the Holders in any material respect; provided, further, that any amendment made
solely to conform the provisions of this Indenture to the description of the Notes contained in the Offering Memorandum shall be
deemed not to adversely affect the interests of the Holders;

 

(g) make any provision with respect to matters
or questions arising under this Indenture that the Company may deem necessary or desirable and that shall not be inconsistent with
provisions of this Indenture; provided that such change or modification does not adversely affect the interests of the Holders
in any material respect;

 

(h) increase the Conversion Rate;

 

(i) add guarantees of obligations under the
Notes;

 

(j) to irrevocably elect a Settlement Method
or Specified Dollar Amount consistent with the provisions described under Section 10.02; and

 

(k) provide for a successor Trustee.

 

After a modification or amendment under this
Section 9.01 becomes effective, the Company shall provide to Holders a notice briefly describing such modification or amendment.
However, the failure to give such notice to all Holders, or any defect in the notice, shall not impair or affect the validity of
the modification or amendment under this Section 9.01.

 

Section
9.02 With Consent of Holders.

 

This Indenture (including the terms and conditions
of the Notes) may not be modified or amended without the written consent or the affirmative vote of the Holder of each Note affected
by such change to:

 

(a) change the Maturity Date of any Notes;

 

(b) reduce the rate or extend the time for
payment of interest on any Notes;

 

(c) reduce the principal amount of any Notes;

 

    	46

    	 

    

 

(d) reduce any amount payable upon repurchase
of any Notes upon a Fundamental Change;

 

(e) impair the right of a Holder to receive
payment when due with respect to any Notes or institute suit for payment when due of any Notes;

 

(f) change the currency in which any Note
is payable;

 

(g) change the Company’s obligation
to repurchase any Notes upon a Fundamental Change in a manner adverse to the Holders;

 

(h) affect the right of a Holder to convert
any Notes into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as the case may be, or reduce
the number of shares of Common Stock or amount of property, including cash, receivable upon conversion pursuant to the terms of
this Indenture;

 

(i) change the Company’s obligation
to maintain an office or agency in the United States; or

 

(j) reduce the percentage of the Notes required
for consent to any modification or waiver of this Indenture that requires the consent of each affected Holder.

 

Except as otherwise provided in this Section
9.02, this Indenture (including the terms and conditions of the Notes) and the Notes may be modified or amended, with the consent
or affirmative vote of the Holders of a majority in aggregate principal amount of the Notes then outstanding (including consents
obtained in connection with a tender offer or exchange offer). The consent of the Holders is not necessary under this Indenture
to approve the particular form of any proposed modification or amendment. Any consent under this Section 9.02 is sufficient if
such consent approves the substance of the proposed modification or amendment.

 

After a modification or amendment under this
Section 9.02 becomes effective, the Company shall provide to Holders a notice briefly describing such modification or amendment.
However, the failure to give such notice to all Holders, or any defect in the notice, shall not impair or affect the validity of
the modification or amendment under this Section 9.02.

 

Section
9.03 Compliance with Trust Indenture Act.

 

Every amendment to this Indenture or the Notes
shall comply with the Trust Indenture Act as then in effect.

 

Section
9.04 Revocation and Effect of Consents and Waivers.

 

A consent to an amendment or a waiver by a
Holder shall bind the Holder and every subsequent Holder of that Note or portion of the Note that evidences the same debt as the
consenting Holder’s Note, even if notation of the consent or waiver is not made on the Note. However, any such Holder or
subsequent Holder may revoke the consent or waiver as to such Holder’s Note or portion of the Note if the Trustee receives
the notice of revocation before the date the amendment or waiver becomes effective. An amendment or waiver becomes effective once
both (i) the requisite number of consents have been received by the Company or the Trustee and (ii) such amendment or waiver has
been executed by the Company and the Trustee.

 

    	47

    	 

    

 

The Company may, but shall not be obligated
to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately
preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons,
shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such
Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 120 calendar days
after such record date.

 

Section
9.05 Notation on or Exchange of Notes.

 

If an amendment changes the terms of a Note,
the Trustee may require the Holder of the Note to deliver the Note to the Trustee. The Trustee may place an appropriate notation
on the Note regarding the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines,
the Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms.
Failure to make the appropriate notation or to issue a new Note shall not affect the validity of such amendment.

 

Section
9.06 Trustee to Sign Amendments.

 

The Trustee shall sign any amendment authorized
pursuant to this Article 9 if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it. In signing such amendment the Trustee shall be entitled to receive, and (subject
to Sections 7.01 and 7.02) shall be fully protected in relying upon, in addition to the documents required by Section 11.04, an
Officers’ Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture.

 

ARTICLE
10

Conversion of Notes

 

Section
10.01 Right to Convert.

 

Upon compliance with the provisions of this
Article 10, a Holder may convert, at such Holder’s option, all or part of its Notes, in integral multiples of $1,000, based
on the Conversion Rate (the “Conversion Obligation”). Prior to September 15, 2018, Holders shall have the right
to convert Notes only under the circumstances described in clauses (a) through (d) below. On or after September 15, 2018, a Holder
may surrender its Notes for conversion at any time on and prior to the close of business on the second Scheduled Trading Day immediately
preceding the Maturity Date without regard to the conditions in clauses (a) through (d) below. In no event may Notes be surrendered
for conversion after the close of business on the second Scheduled Trading Day immediately preceding the Maturity Date.

 

    	48

    	 

    

 

(a) Conversion Based on Common Stock Price.
Prior to September 15, 2018, Notes may be surrendered for conversion on any date during any calendar quarter beginning after March
31, 2014 (and only during such calendar quarter) if the Closing Sale Price of the Common Stock was more than 130% of the then current
Conversion Price for at least 20 Trading Days in the period of the 30 consecutive Trading Days ending on the last trading day of
the previous calendar quarter.

 

(b) Conversion Upon Specified Corporate
Transactions. Prior to September 15, 2018, if the Company:

 

(1) distributes to all or substantially
all holders of its Common Stock rights, options or warrants (other than rights, options or warrants issued under a shareholder
rights plan that are not then exercisable) entitling them to purchase, for a period of 45 calendar days or less from the declaration
date for such distribution, shares of Common Stock at a price per share less than the average Closing Sale Price of Common Stock
for the ten consecutive Trading Days immediately preceding, but excluding, the declaration date for such distribution; or

 

(2) makes a distribution to
all or substantially all holders of its Common Stock cash, other assets, securities or rights to purchase securities of the Company
(other than pursuant to a rights plan), which distribution has a per share value exceeding 10% of the Closing Sale Price of the
Common Stock on the Trading Day immediately preceding the declaration date for such distribution,

 

then, in each case, the Company shall notify all Holders at
least 30 Business Days prior to the Ex-Date for any such distribution. Once the Company has given such notice, a Holder may surrender
all or a portion of its Notes for conversion at any time until the earlier of the close of business on the Business Day immediately
preceding the Ex- Date or the Company’s public announcement that such distribution shall not take place. A Holder may not
convert any of its Notes based on this Section 10.01(b) if as a result of holding its Notes such Holder shall otherwise participate
in the distribution, without converting the Notes, at the same time and on the same terms as holders of the Common Stock as if
such Holder held a number of shares of Common Stock equal to the Conversion Rate on the Record Date of such distribution for each
$1,000 principal amount of Notes held by such Holder (calculated on an aggregate basis per Holder).

 

(c) Conversion Upon a Fundamental Change.
Prior to September 15, 2018, if a Fundamental Change occurs, each Holder will have the right to convert its Notes at any time beginning
on the effective date of such transaction and until the close of business on the Business Day immediately preceding the relevant
Fundamental Change Repurchase Date. If any Holder has submitted any or all of its Notes for repurchase in connection with a Fundamental
Change, unless such Holder has withdrawn such Notes in a timely fashion, its conversion rights on the Notes so subject to repurchase
will expire at the close of business on the Business Day preceding the Fundamental Change Repurchase Date, unless the Company defaults
in the payment of the Fundamental Change Repurchase Price. If any Holder has submitted any Notes for repurchase, such Notes may
be converted only if such Holder submits a withdrawal notice and, if the Notes submitted are evidenced by a Global Note, such Holder
complies with appropriate Depositary procedures.

 

    	49

    	 

    

 

(d) Conversion
Upon Satisfaction of Trading Price Condition. Prior to September 15, 2018, Notes may be surrendered for conversion during the
five Business Day period following any ten consecutive Trading Day period in which 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 in this Section 10.01(d), for
each Trading Day of such ten Trading Day period was less than 98% of the product of the Closing Sale Price of the Common Stock
for each Trading Day during such ten Trading Day period and the then current Conversion Rate. The bid solicitation agent (if other
than the Company) shall determine the Trading Price per $1,000 principal amount of Notes upon the Company’s request. The
Company shall have no obligation to make such request unless and until a Holder requests that the Company do so and provides reasonable
evidence that the minimum Trading Price threshold will not be met. Once a Holder makes such a request, the Company shall determine
or instruct the bid solicitation agent (if other than the Company) to determine the Trading Price per $1,000 principal amount of
Notes for each Trading Day until the minimum Trading Price threshold is exceeded. If the Company does not so instruct
the bid solicitation agent (if other than the Company) to obtain bids when required, or if the Company or the bid solicitation
agent (if other than the Company) does not obtain bids, the Trading Price per $1,000 principal amount of Notes will be deemed to
be less than 98% of the product of the Closing Sale Price of the Common Stock and the applicable Conversion Rate on each Trading
Day such failure occurs.

 

Section
10.02 Conversion Procedures; Settlement Upon Conversion; No Adjustment for Interest or Dividends; Cash Payments in Lieu
of Fractional Shares.

 

(a) In order to exercise the conversion right
with respect to any Notes in certificated form, a Holder must, prior to the deadline for such conversion specified in Section 10.01:

 

(1) complete and manually sign
a notice of conversion in the form entitled “Form of Conversion Notice” attached to the reverse of such certificated
Note (or a facsimile thereof) (a “Conversion Notice”);

 

(2) deliver such Conversion
Notice and the certificated Notes to be converted to the Conversion Agent at the office of the Conversion Agent;

 

(3) to the extent any shares
of Common Stock issuable upon conversion are to be issued in a name other than the Holder’s, furnish appropriate endorsements
and transfer documents as may be required by the Conversion Agent;

 

(4) if required pursuant to
this Section 10.02(a), pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled;
and

 

    	50

    	 

    

 

(5) if required pursuant to
Section 10.02(g), pay all transfer or similar taxes, if any.

 

In order to exercise the conversion right
with respect to any interest in a Global Note, a Holder must, prior to the deadline for such conversion specified in Section 10.01:

 

(1) deliver to the Conversion
Agent via the Depositary the appropriate instruction form for conversion pursuant to the Depositary’s conversion program;

 

(2) if required pursuant to
this Section 10.02(a), pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled;
and

 

(3) if required pursuant to
Section 10.02(g), pay all transfer or similar taxes, if any.

 

The Business Day on which the Holder satisfies
the foregoing requirements is the “Conversion Date.” The Notes shall be deemed to have been converted immediately
prior to the close of business on the Conversion Date; provided, however, that the Person in whose name any shares of the
Common Stock shall be issuable upon such conversion shall become the holder of record of such shares as of the close of business
on the Conversion Date, in the case of Physical Settlement, or the last Trading Day of the relevant Conversion Period, in the case
of Combination Settlement.

 

If a Holder converts any Notes after the
close of business on the Regular Record Date for an interest payment but prior to the corresponding Interest Payment Date, the
record Holder on such Regular Record Date shall receive on the corresponding Interest Payment Date the full amount of interest
accrued and unpaid on such Notes, notwithstanding such Holder’s conversion of those Notes prior to the Interest Payment Date.
However, except as provided in the next sentence, at the time such Holder surrenders its Notes for conversion after the close of
business on a Regular Record Date but prior to the open of business on the corresponding Interest Payment Date, such Holder must
pay the Company an amount equal to the interest that has accrued and shall be paid on the Notes being converted on the corresponding
Interest Payment Date. Such Holder is not required to make such payment:

 

(1) if such Holder converts
its Notes following the close of business on the Regular Record Date immediately preceding the Maturity Date;

 

(2) if such Holder converts
its Notes in connection with a Fundamental Change and the Company has specified a Fundamental Change Repurchase Date that is after
a Regular Record Date and on or prior to the corresponding Interest Payment Date; or

 

(3) to the extent of any overdue
interest, if overdue interest exists at the time of conversion with respect to such Holder’s Notes.

 

    	51

    	 

    

 

Therefore, for the avoidance of doubt,
all Holders on the Regular Record Date immediately preceding the Maturity Date will receive the full interest payment due on the
Maturity Date regardless of whether their notes have been converted following such Record Date.

 

If a Holder has already delivered a Fundamental
Change Repurchase Notice pursuant to Section 3.01 with respect to a Note, such Holder may not surrender that Note for conversion
until such Holder has validly withdrawn the Fundamental Change Repurchase Notice in accordance with Section 3.02, except as to
a portion of such Note that is not subject to such Fundamental Change Repurchase Notice.

 

(b) Subject to this Section 10.02, Section
10.03, Section 10.04(f) and Section 10.05, upon conversion of any Note, the Company may, at its election, pay or deliver, as the
case may be, to the converting Holder, in respect of each $1,000 principal amount of Notes being converted either solely cash (“Cash
Settlement”), solely shares of Common Stock (other than cash in lieu of any fractional shares) (“Physical Settlement”)
or a combination of cash and shares of Common Stock (“Combination Settlement”), as set forth in this Section
10.02(b).

 

All conversions occurring on or after September
15, 2018 shall be settled using the same Settlement Method. Prior to September 15, 2018, the Company shall use the same Settlement
Method for all conversions occurring on the same Conversion Date, but the Company shall not have any obligation to use the same
Settlement Method with respect to conversions that occur on different Conversion Dates. If the Company elects a Settlement Method,
the Company shall inform Holders so converting (the “Settlement Notice”) of such Settlement Method through the
Trustee, no later than the close of business on the Scheduled Trading Day immediately following the related Conversion Date (or,
in the case of any conversions occurring on or after September 15, 2018, no later than the close of business on the Scheduled Trading
Day immediately preceding September 15, 2018). If the Company does not timely elect a Settlement Method, the Company shall no longer
have the right to elect Cash Settlement or Physical Settlement, and the Company shall be deemed to have elected Combination Settlement
in respect of its Conversion Obligation, and the Specified Dollar Amount per $1,000 principal amount of Notes shall be deemed to
be $1,000. If the Company elects Combination Settlement but does not timely notify converting Holders of the Specified Dollar Amount
per $1,000 principal amount of Notes, such Specified Dollar Amount will be deemed to be $1,000.

 

The cash, shares of Common Stock or combination
of cash and shares of Common Stock in respect of any conversion of Notes (the “Settlement Amount”) shall be
computed as follows:

 

(1) if the Company elects to
satisfy its Conversion Obligation in respect of such conversion by Physical Settlement, the Company shall deliver to converting
Holders in respect of each $1,000 principal amount of Notes being converted a number of shares of Common Stock equal to the Conversion
Rate in effect on the Conversion Date (and cash in lieu of any fractional share as described in Section 10.02(j));

 

    	52

    	 

    

 

(2) if the Company elects to
satisfy its Conversion Obligation in respect of such conversion by Cash Settlement, the Company shall pay to converting Holders
in respect of each $1,000 principal amount of Notes being converted cash in an amount equal to the sum of the Daily Conversion
Values for each of the 25 consecutive Trading Days in the relevant Conversion Period; and

 

(3) if the Company elects (or
is deemed to have elected) to satisfy its Conversion Obligation in respect of such conversion by Combination Settlement, the Company
shall pay or deliver, as the case may be, to converting Holders in respect of each $1,000 principal amount of Notes being converted,
a Settlement Amount equal to the sum of the Daily Settlement Amounts for each of the 25 consecutive Trading Days in the relevant
Conversion Period (and cash in lieu of any fractional share as described in Section 10.02(j)).

 

(c) Except as described under Section 10.03,
Section 10.04 and Section 10.05, if Cash Settlement or Combination Settlement is applicable, the Company shall pay and/or deliver
the consideration due upon conversion on the third Business Day immediately following the final Trading Day of the related Conversion
Period. If Physical Settlement is applicable, the Company shall deliver the consideration due upon conversion on the third Business
Day immediately following the related Conversion Date.

 

(d) If more than one Note shall be surrendered
for conversion at one time by the same Holder, the Conversion Obligation with respect to such Notes, if any, that shall be payable
upon conversion shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to
the extent permitted thereby) so surrendered.

 

(e) In case any certificated Note shall be
surrendered for partial conversion, the Company shall execute and the Trustee shall authenticate and deliver to or upon the written
order of the Holder of the certificated Note so surrendered, without charge to such Holder, a new certificated Note or Notes in
authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered certificated Note.

 

(f) Upon the conversion of an interest in
a Global Note, the Trustee and the Depositary shall reduce the principal amount of such Global Note in their records.

 

(g) The issue of share certificates on conversions
of Notes shall be made without charge to the converting Holder of Notes for any taxes or duties in respect of the issue thereof.
The Company shall not, however, be required to pay any such tax or duty which may be payable in respect of any transfer involved
in the issue and delivery of shares in any name other than that of the Holder of any Notes converted, and the Company shall not
be required to issue or deliver any such share certificate unless and until the Person or Persons requesting the issue thereof
shall have paid to the Company the amount of such tax or duty or shall have established to the satisfaction of the Company that
such tax has been paid.

 

    	53

    	 

    

 

(h) The Company’s payment and delivery,
as the case may be, to Holders of the full Settlement Amount will be deemed to satisfy in full the Company’s obligation to
pay:

 

(1) the principal amount of
the Note; and

 

(2) accrued and unpaid interest,
if any, to, but excluding, the Conversion Date.

 

(i) Except as provided in Section 10.02(a),
upon conversion, Holders shall not receive any separate cash payment of accrued and unpaid interest on the Notes. Accrued and unpaid
interest (excluding any Additional Interest) and accrued tax original issue discount, if any, to the Conversion Date shall be deemed
to be paid in full with the payment or delivery, as the case may be, of the cash, Common Stock, or a combination thereof, upon
conversion, rather than cancelled, extinguished or forfeited. With respect to any conversion, accrued and unpaid interest will
be deemed to be paid first out of any cash paid upon such conversion.

 

(j) The Company shall not issue fractional
shares of Common Stock upon conversion of the Notes. If any fractional shares of Common Stock would be issuable upon the conversion
of any Note or Notes, the Company shall instead pay cash in lieu of fractional shares based on the Closing Sale Price of the Common
Stock on the relevant Conversion Date, in the case of Physical Settlement, or on the final Trading Day of the relevant Conversion
Period, in the case of Combination Settlement.

 

(k) Except as described under Section 10.04,
the Company shall not make any payment or other adjustment for dividends on any Common Stock issued upon conversion of the Notes.

 

(l) The Company shall inform the Trustee upon
its request if the Notes have become convertible under Section 10.01(a).

 

Section
10.03 Adjustment to Conversion Rate Upon a Make-Whole Fundamental Change.

 

If and only to the extent a Holder elects
to convert its Notes in connection with a Fundamental Change (without giving effect to the proviso in clause (2) of the definition
of Fundamental Change, but after giving effect to the paragraph following clause (4) of such definition) under the definition of
Fundamental Change (a “Make-Whole Fundamental Change”), the Conversion Rate shall be increased by an additional
number of shares of Common Stock (the “Additional Shares”).

 

The number of Additional Shares shall be determined
by reference to the table below, based on the date on which the Make-Whole Fundamental Change becomes effective (the “Effective
Date”) and the price paid (or deemed paid) per share (the “Stock Price”) for the Common Stock in such
Make-Whole Fundamental Change. If holders of Common Stock receive only cash in any transaction described in clause (2) of the definition
of Fundamental Change, the Stock Price will be the cash amount paid per share. Otherwise, the Stock Price will be equal to the
average of the Closing Sale Prices of the Common Stock on the five Trading Days prior to, but excluding, the Effective Date of
such Make-Whole Fundamental Change.

 

    	54

    	 

    

 

A conversion of the Notes by a Holder shall
be deemed for purposes of this Section 10.03 to be “in connection with” a Make-Whole Fundamental Change only if the
Conversion Date occurs on or following the Effective Date of the Make-Whole Fundamental Change but before the close of business
on the Business Day immediately preceding the related Fundamental Change Repurchase Date (as specified in the Fundamental Change
Company Notice).

 

Upon surrender of Notes for conversion in
connection with a Make-Whole Fundamental Change, the Company shall, at its option, satisfy its Conversion Obligation by Physical
Settlement, Cash Settlement or Combination Settlement, as described under Section 10.02(b). However, if the consideration received
by holders of the Common Stock in any Make-Whole Fundamental Change described in clause (2) of the definition of Fundamental Change
is composed entirely of cash, for any conversion of Notes following the Effective Date of such Make-Whole Fundamental Change, the
Settlement Amount will be calculated based solely on the Stock Price for the transaction and will be deemed to be an amount of
cash per $1,000 principal amount of converted Notes equal to the Conversion Rate (including any adjustment as described in this
Section 10.03), multiplied by such Stock Price. In such event, the Company shall satisfy its Conversion Obligation by paying cash
to converting Holders on the third Business Day immediately following the Conversion Date.

 

The number of Additional Shares set forth
in the table below shall be adjusted in the same manner as and at the same time as the Conversion Rate of the Notes is adjusted
pursuant to Section 10.04. The Stock Prices set forth in the first row of the table below (i.e., the column headers) shall be simultaneously
adjusted to equal the Stock Prices immediately prior to such adjustment, multiplied by a fraction, the numerator of which shall
be the Conversion Rate immediately prior to the adjustment and the denominator of which shall be the Conversion Rate as so adjusted.

 

The following table sets forth the number
of Additional Shares by which the Conversion Rate shall be increased upon conversion in connection with a Make-Whole Fundamental
Change:

 

Stock Price

 

	Effective Date	 	  $27.39	  $35.00	  $40.40	  $45.00	  $50.00	  $55.00	  $60.00	  $70.00	  $80.00	  $100.00	  $120.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	November 22, 2013	 	  11.7573	  7.2097	  5.2946	  4.1476	  3.2311	  2.5507	  2.0355	  1.3282	  0.8856	  0.4022	 0.1742	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	December 15, 2014	 	  11.7573	  6.8384	  4.9100	  3.7738	  2.8809	  2.2300	  1.7460	  1.0987	  0.7078	  0.3007	 0.1206	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	December 15, 2015	 	 11.7573	  6.3492	  4.4034	  3.2840	  2.4259	  1.8176	  1.3780	  0.8140	  0.4924	  0.1818	 0.0578	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	December 15, 2016	 	 11.7573	  5.7567	  3.7630	  2.6603	  1.8514	  1.3061	  0.9327	  0.4897	  0.2635	  0.0733	 0.0105	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	December 15, 2017	 	 11.7573	  4.9812	  2.8492	  1.7645	  1.0483	  0.6254	  0.3762	  0.1414	  0.0556	  0.0043	 0.0002	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	December 15, 2018	 	 11.7573	 3.8191	 0.0000	 0.0000	 0.0000	 0.0000	 0.0000	 0.0000	 0.0000	 0.0000	 0.0000	 

 

    	55

    	 

    

 

provided, however, that the exact Stock Price and Effective
Date may not be set forth on the table, in which case, if the Stock Price is:

 

(1) between two Stock Prices
on the table or the Effective Date is between two Effective Dates on the table, the number of Additional Shares will be determined
by straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Prices and the
earlier and later Effective Dates, as applicable, based on a 360-day year;

 

(2) greater than $120.00 per
share (subject to adjustment in the same manner and at the same time as the Stock Prices in the table above), the Conversion Rate
will not be increased; or

 

(3) less than $27.39 per share
(subject to adjustment in the same manner and at the same time as the Stock Prices in the table above), the Conversion Rate will
not be increased.

 

Notwithstanding the foregoing, in no event
shall the total number of shares of Common Stock issuable upon conversion exceed 36.5096 shares per $1,000 principal amount of
Notes, subject to adjustment in the same manner as the Conversion Rate pursuant to Section 10.04.

 

In the event of an increase in the Conversion
Rate above that which would result in the Notes, in the aggregate, becoming convertible into shares in excess of certain limitations
set forth in the listing standards of the NASDAQ requiring shareholder approval, the Company shall, at its option, either obtain
shareholder approval of such issuances or deliver cash in lieu of any shares otherwise deliverable upon conversions in excess of
such limitations based on the Closing Sale Price of the Common Stock on the relevant Conversion Date, in the case of Physical Settlement,
or on the VWAP of the Common Stock on each Trading Day of the relevant Conversion Period in respect of which, in lieu of delivering
shares of Common Stock, the Company delivers cash pursuant to this paragraph, in the case of Combination Settlement.

 

Section
10.04 Adjustment of Conversion Rate.

 

The Company shall adjust the Conversion Rate
for the following events:

 

(a) If the Company shall issue shares of Common
Stock as a dividend or distribution on shares of Common Stock, or if the Company effects a share split, share combination, share
subdivision or share consolidation with respect to its Common Stock, the Conversion Rate shall be adjusted based on the following
formula:

 

    	56

    	 

    

 

 

	
         

        CR1
	=	CR0	×	
         

        OS1

	
         

        OS0

  

where,

 

	 	CR1	=	the Conversion Rate in effect immediately after the
open of business on the Ex-Date for such dividend or distribution or the effective date of such share split, share combination,
share subdivision or share consolidation, as the case may be;

 

	 	CR0	=	the Conversion Rate in effect immediately prior to
the open of business on the Ex-Date for such dividend or distribution or the effective date of such share split, share combination,
share subdivision or share consolidation, as the case may be;

 

	 	OS0	=	the number of shares of Common Stock outstanding immediately
prior to the open of business on the Ex-Date for such dividend or distribution or the effective date of such share split, share
combination, share subdivision or share consolidation, as the case may be;

 

	 	OS1	=	the number of shares of Common Stock that would be
outstanding immediately after, and solely as a result of, such dividend, distribution, share split, share combination, share subdivision
or share consolidation, as the case may be.

 

Any adjustment made under this clause (a)
shall become effective immediately after the open of business on such Ex-Date for such dividend or distribution, or immediately
after the open of business on the effective date for such share split or share combination (share subdivision or share consolidation),
as applicable. If any dividend or distribution of the type described in this clause (a) is declared but not so paid or made, the
Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors or a committee thereof determines
not to pay such dividend or distribution, to the Conversion Rate that would then be in effect if such dividend or distribution
had not been declared.

 

(b) If
the Company shall distribute to all or substantially all holders of its Common Stock any rights, options or warrants (other
than rights, options or warrants issued under a stockholder rights plan that are not then exercisable) entitling them to
purchase, for a period of 45 calendar days or less from the declaration date for such distribution, shares of the Common Stock
at a price per share less than the average Closing Sale Price of the Common Stock for the ten consecutive Trading Days immediately
preceding, but excluding, the declaration date for such distribution, the Conversion Rate shall be increased based on the following
formula:

 

    	57

    	 

    

 

	
         

        CR1
	=	CR0	×	
         

        OS0 + X

	
         

        OS0 + Y

 

where

 

	 	CR1	=	the Conversion
Rate in effect immediately after the open of business on the Ex-Date for such distribution;

 

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

 

	 	OS0	=	the number
of shares of the Common Stock outstanding immediately prior to the open of business on the Ex-Date for such distribution;

 

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

 

	 	Y	=	the number of shares of
the Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average
Closing Sale Price of the Common Stock for the ten consecutive Trading Days immediately preceding, but excluding, the declaration
date for such distribution.

 

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

 

For purposes of this clause (b) and Section
10.01(b)(1) above, in determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares
of the Common Stock at a price per share less than such average Closing Sale Price for the ten consecutive Trading Days immediately
preceding, but excluding, the declaration date for such distribution, and in determining the aggregate offering price of such shares
of the Common Stock, there shall be taken into account any consideration received by the Company for such rights, options or warrants
and any amount payable upon exercise or conversion thereof, the value of such consideration, if other than cash, to be determined
by the Board of Directors or a committee thereof.

 

    	58

    	 

    

 

(c) If the Company distributes shares of its
Capital Stock, evidences of its indebtedness or other of its securities, assets or property to all or substantially all holders
of Common Stock, excluding:

 

(i) dividends or distributions
described in clause (a) or (b) above;

 

(ii) rights issued to all holders
of the Common Stock pursuant to a rights plan, where such rights are not presently exercisable, trade with the Common Stock and
the plan provides that Holders will receive such rights along with any Common Stock received upon conversion of the Notes;

 

(iii) dividends or distributions
paid exclusively in cash; and

 

(iv) Spin-Offs described below
in this clause (c),

 

then the Conversion Rate shall be increased based on the following
formula:

 

	
         

        CR1
	=	CR0	×	
         

        SP0

	
         

        SP0 – FMV

 

where,

 

	 	CR1	=	the Conversion Rate in effect immediately after the
open of business on the Ex-Date for such distribution;

 

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

 

	 	SP0	=	the average Closing Sale Price of the Common Stock
over the ten consecutive Trading Days immediately preceding, but excluding, the Ex-Date for such distribution; and

 

	 	FMV	=	the Fair Market Value (as determined by the Board of
Directors or a committee thereof) of the shares of Capital Stock, evidences of indebtedness, securities, assets or property distributed
with respect to each outstanding share of the Common Stock immediately prior to the open of business on the Ex-Date for such distribution.

 

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

 

Notwithstanding the foregoing, if “FMV”
(as defined above) is equal to or greater than “SP0” (as defined above), or if the difference between “SP0”
and “FMV” is less than $1.00, in lieu of the foregoing increase, each Holder shall receive, in respect of each $1,000
principal amount thereof, at the same time and upon the same terms as holders of the Common Stock without having to convert its
Notes, the amount and kind of the Capital Stock, evidences of the Company’s indebtedness, or other securities assets or property
of the Company that such Holder would have received as if such Holder owned a number of shares of Common Stock equal to the Conversion
Rate in effect on the Ex-Date for the distribution.

 

    	59

    	 

    

 

With respect to an adjustment pursuant to
this clause (c) where there has been a payment of a dividend or other distribution on the Common Stock in shares of Capital Stock
of any class or series, or similar equity interests, of or relating to a Subsidiary or other business unit of the Company that
will be, upon distribution, listed on a U.S. national or regional securities exchange (a “Spin-Off”), the Conversion
Rate shall be increased based on the following formula:

 

	
         

        CR1
	=	CR0	×	
         

        FMV + MP0

	
         

        MP0

 

where,

 

	 	CR1	=	Conversion Rate in effect immediately after the open
of business on the Ex-Date for the Spin-Off;

 

	 	CR0	=	the Conversion Rate in effect immediately prior to
the open of business on the Ex-Date for the Spin-Off;

 

	 	FMV	=	the average Closing Sale Price of the Capital Stock
or similar equity interest distributed to holders of the Common Stock applicable to one share of the Common Stock for the ten
consecutive Trading Days immediately following the Ex-Date for such Spin-Off (such period, the “Valuation Period”);
and

 

	 	MP0	=	the average of the Closing Sale Prices of the Common
Stock over the Valuation Period.

 

Any adjustment to the Conversion Rate under
the preceding paragraph of this clause (c) shall be made immediately after the close of business on the last day of the Valuation
Period, but shall be given effect as of the open of business on the Ex-Date for the Spin-Off. Because the Company will make the
adjustment to the Conversion Rate at the end of the Valuation Period with retroactive effect, the Company shall delay the settlement
of any Notes where the final day of the related Conversion Period occurs during the Valuation Period. In such event, the Company
shall pay or deliver, as the case may be, any cash and shares of the Common Stock due upon conversion (based on the adjusted Conversion
Rate as described above) on the third Business Day immediately following the last Trading Day of the Valuation Period.

 

(d) If
the Company pays any cash dividends or distributions exclusively in cash to all or substantially all holders of its Common Stock
(other than dividends or distributions made in connection with the Company’s liquidation, dissolution or winding-up), other
than cash dividends that do not exceed $0.12 per share per calendar quarter (the “Dividend Threshold Amount”),
the Conversion Rate shall be increased based on the following formula:

 

    	60

    	 

    

 

	
         

        CR1
	=	CR0	×	
         

        SP0 – DTA

	
         

        SP0 – C

 

where,

 

	 	CR1	=	the Conversion Rate in effect immediately after the
open of business on the Ex-Date for such dividend or distribution;

 

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

 

	 	SP0	=	the average of the Closing Sale Prices of the Common
Stock over the ten consecutive Trading Day period immediately preceding the Ex-Date for such distribution;

 

	 	DTA	=	the Dividend Threshold Amount, less the per share amount
of any cash dividend previously paid in such calendar quarter; and

 

	 	C	=	the amount in cash per share the Company distributes
to holders of the Common Stock.

 

The Dividend Threshold Amount is subject to
adjustment on an inversely proportional basis whenever the Conversion Rate is adjusted, other than as a result of an adjustment
pursuant to this clause (d).

 

Any increase made under this clause (d) shall
become effective immediately after the open of business on the Ex-Date for such dividend or distribution. If such dividend or distribution
is not so paid, the Conversion Rate shall be decreased, effective as of the date the Board of Directors, or a committee thereof,
determines not to make or pay such dividend or distribution, to be the Conversion Rate that would then be in effect if such dividend
or distribution had not been declared.

 

Notwithstanding the foregoing, if “C”
(as defined above) is equal to or greater than “SP0” (as defined above), or if the difference between “SP0”
and “C” is less than $1.00, in lieu of the foregoing increase, each Holder shall receive, in respect of each $1,000
principal amount thereof, at the same time and upon the same terms as holders of shares of the Common Stock without having to convert
its Notes, the amount of cash that such Holder would have received as if such Holder owned a number of shares of the Common Stock
equal to the Conversion Rate in effect on the Ex-Date for such cash dividend or distribution.

 

(e) If the Company or any of its Subsidiaries
makes a payment in respect of a tender offer or exchange offer for the Common Stock, to the extent that the cash and value of any
other consideration included in the payment per share of the Common Stock exceeds the Closing Sale Price of the Common Stock on
the Trading Day next succeeding the last date (the “Expiration Date”) on which tenders or exchanges may be made
pursuant to the tender or exchange offer, the Conversion Rate shall be increased based on the following formula:

 

    	61

    	 

    

 

	
         

        CR1
	=	CR0	×	
         

        AC + ( SP1 × OS1
        )

	
         

        OS0 × SP1

 

where,

 

	 	CR1	=	the Conversion Rate in effect immediately after the
close of business on the Trading Day immediately following the Expiration Date;

 

	 	CR0	=	the Conversion Rate in effect immediately prior to
the close of business on the Trading Day immediately following the Expiration Date;

 

	 	AC	=	the aggregate value of all cash and any other consideration
(as determined by the Board of Directors or a committee thereof) paid or payable for shares purchased in such tender or exchange
offer;

 

	 	SP1	=	the average Closing Sale Price of the Common Stock
for the ten consecutive Trading Days next succeeding the Expiration Date (the “Averaging Period”);

 

	 	OS1	=	the number of shares of the Common Stock outstanding
immediately after the close of business on the Expiration Date (as adjusted to give effect to the purchase or exchange of all
shares accepted for purchase or exchange in such tender offer or exchange offer); and

 

	 	OS0	=	the number of shares of the Common Stock outstanding
immediately prior to the close of business on the Expiration Date (prior to giving effect to such tender offer or exchange offer).

 

Any adjustment to the Conversion Rate under
this clause (e) shall be made immediately after the close of business on the last day of the Averaging Period, but shall be given
effect as of the open of business on the Trading Day next succeeding the Expiration Date. Because the Company shall make the adjustment
to the Conversion Rate at the end of the Averaging Period with retroactive effect, the Company shall delay the settlement of any
Notes where the final day of the related Conversion Period occurs during the Averaging Period. In such event, the Company shall
pay or deliver, as the case may be, any cash and shares of the Common Stock due upon conversion (based on the adjusted Conversion
Rate as described above) on the third Business Day immediately following the last day of the Averaging Period.

 

(f) In the event of an increase in the Conversion
Rate above that which would result in the Notes, in the aggregate, becoming convertible into shares in excess of certain limitations
set forth in the listing standards of the NASDAQ requiring shareholder approval, the Company shall, at its option, either obtain
shareholder approval of such issuances or deliver cash in lieu of any shares otherwise deliverable upon conversions in excess of
such limitations based on the Closing Sale Price of the Common Stock on the relevant Conversion Date, in the case of Physical Settlement,
or on the VWAP of the Common Stock on each Trading Day of the relevant Conversion Period in respect of which, in lieu of delivering
shares of Common Stock, the Company delivers cash pursuant to this clause (f), in the case of Combination Settlement.

 

    	62

    	 

    

 

(g) To the extent that any stockholders’
rights plan adopted by the Company is in effect upon conversion of the Notes, Holders will receive, in addition to any Common Stock
due upon conversion, the rights under the applicable rights agreement. However, if, prior to any conversion, the rights have separated
from the shares of the Common Stock in accordance with the provisions of the applicable stockholders’ rights plan, the Conversion
Rate will be adjusted at the time of separation as if the Company distributed to all holders of the Common Stock, shares of Capital
Stock, evidences of indebtedness, securities, assets or property as described in clause (c) above, subject to readjustment in the
event of the expiration, termination or redemption of such rights.

 

(h) Notwithstanding any of the foregoing clauses
in this Section 10.04, the Conversion Rate shall not be adjusted pursuant to this Section 10.04 if as a result of holding the Notes
the Holders shall otherwise participate (other than in the case of a share split, share combination, share subdivision or share
consolidation), at the same time and upon the same terms as holders of the Common Stock in any of the transactions that would otherwise
give rise to adjustment pursuant to this Section 10.04 without conversion of such Holder’s Notes as if such Holder held a
number of shares of Common Stock equal to the applicable Conversion Rate for each $1,000 principal amount of Notes held by such
Holder.

 

(i) Except as stated in this Section 10.04,
the Company shall not adjust the Conversion Rate for the issuances of shares of Common Stock or any securities convertible into
or exchangeable for shares of Common Stock or rights to purchase shares of Common Stock or such convertible or exchangeable securities.

 

(j) Notwithstanding the foregoing, if a Conversion
Rate adjustment becomes effective on any Ex-Date as described in this Section 10.04, and a Holder that has converted its Notes
on or after such Ex-Date and on or prior to the related Record Date would be treated as the record holder of the shares of the
Common Stock as of the related Conversion Date as described under Section 10.02(b) based on an adjusted Conversion Rate for such
Ex-Date, then, notwithstanding the foregoing Conversion Rate adjustment provisions, such Conversion Rate adjustment relating to
such Ex-Date shall not be made for such converting Holder. Instead, such Holder shall be treated as if such Holder were the record
owner of such shares of Common Stock on an unadjusted basis and participate in the related dividend, distribution or other event
giving rise to such adjustment.

 

(k) No adjustment pursuant to this Section
10.04 shall be made to the Conversion Rate unless such adjustment would require a change of at least 1% in the Conversion Rate
then in effect at such time. However, any adjustments that are less than 1% of the Conversion Rate shall be carried forward and
taken into account in any subsequent adjustment, regardless of whether the aggregate adjustment is less than 1%, (i) annually on
the anniversary of the first date of original issuance of the Notes and (ii) otherwise (A) upon conversion of any Notes or (B)
with respect to any converted Notes, on each Trading Day in any relevant Conversion Period and (C) immediately prior to any Fundamental
Change Repurchase Date.

 

    	63

    	 

    

 

(l) The Company shall be permitted to increase
the Conversion Rate by any amount for a period of at least 20 Business Days if the Board of Directors or a committee thereof determines
that such increase would be in the best interest of the Company. The Company also may (but is not required to) increase the Conversion
Rate to avoid or diminish income tax to holders of Common Stock or rights to purchase shares of Common Stock in connection with
a dividend or distribution of shares (or rights to acquire shares) or similar event.

 

(m) Whenever the Conversion Rate is adjusted
as herein provided, the Company shall file with the Trustee an Officers’ Certificate briefly stating the facts requiring
the adjustment and the manner of computation.

 

(n) For purposes of this Section 10.04, the
number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall
include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company shall
not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company.

 

(o) Whenever any provision of this Indenture
requires the Company to calculate the Closing Sale Prices, the volume-weighted average price or VWAP, the Daily Conversion Values
or the Daily Settlement Amounts over, or based on, a span of multiple calendar days (including a Conversion Period, Valuation Period
or Averaging Period), the Company shall make appropriate adjustments to each to account for any adjustment to the Conversion Rate
that becomes effective, or any event requiring an adjustment to the Conversion Rate where the Ex-Date of the event occurs, at any
time during the period when the Closing Sale Prices, the volume-weighted average prices or VWAP, the Daily Conversion Values or
the Daily Settlement Amounts are to be calculated.

 

Section
10.05 Effect of Reclassifications, Business Combinations, Asset Sales and Corporate Events.

 

In the case of:

 

(a) any recapitalization, reclassification
or change of the Common Stock (other than changes resulting from a subdivision, consolidation or combination);

 

(b) any consolidation, amalgamation, merger
or combination involving the Company;

 

(c) any sale, lease or other transfer to a
third party of the consolidated assets of the Company and its Subsidiaries substantially as an entirety; or

 

    	64

    	 

    

 

(d) any statutory share exchange,

 

in each case, as a result of which the Common
Stock would be converted into, or exchanged for, stock, other securities, other property or assets (including cash or any combination
thereof), then, at and after the effective time of the transaction, the right to convert each $1,000 principal amount of Notes
will be changed into a right to convert such principal amount of Notes into, in lieu of Common Stock, the kind and amount of shares
of stock, other securities or other property or assets (including cash or any combination thereof) that a holder of a number of
shares of Common Stock equal to the Conversion Rate immediately prior to such transaction would have owned or been entitled to
receive (the “Reference Property”) upon such transaction. Thereafter, references in this Indenture to Common
Stock shall be deemed to apply mutatis mutandis to equivalent units of Reference Property, as nearly as is practical as
determined in good faith by the Company. However, at and after the effective time of the transaction (i) the Company shall continue
to have the right to determine the form of consideration to be paid or delivered, as the case may be, upon conversion of the Notes
as set forth under Section 10.02 above and (ii)(x) any amount otherwise payable in cash upon conversion of the Notes as set forth
under Section 10.02 above will continue to be payable in cash, (y) the number of shares of the Common Stock, if any, otherwise
deliverable upon conversion of the Notes as set forth under Section 10.02 above will instead be deliverable in the amount and type
of Reference Property that a holder of that number of shares of Common Stock would have received in such transaction and (z) the
volume-weighted average price will be calculated based on the value of a unit of Reference Property that a holder of one share
of Common Stock would have received in such transaction (determined in a reasonable manner selected in good faith by the Company).
If the transaction causes the Common Stock to be converted into, or exchanged for, the right to receive more than a single type
of consideration (determined based in part upon any form of shareholder election), the Reference Property into which the Notes
will become convertible will be deemed to be the kind and amount of consideration actually received by holders of a majority of
the Common Stock that voted for such an election (if electing between two types of consideration) or holders of a plurality of
the Common Stock that voted for such an election (if electing between more than two types of consideration), as the case may be.
If the holders of Common Stock receive only cash in such transaction, then for all conversions that occur after the effective date
of such transaction (i) the consideration due upon conversion of each $1,000 principal amount of Notes shall be solely cash in
an amount equal to the Conversion Rate in effect on the Conversion Date (as may be increased by any additional shares as described
under Section 10.03), multiplied by the Stock Price of Common Stock in such transaction and (ii) the Company shall satisfy
the Conversion Obligation by paying cash to converting Holders on the third Business Day immediately following the Conversion Date.
The Company shall not become a party to any such transaction unless the terms of such transaction are consistent with the foregoing.

 

Section
10.06 Certain Covenants.

 

(a) The Company shall, prior to the issuance
of any Notes hereunder, and from time to time as may be necessary, reserve out of its authorized but unissued Common Stock or shares
of Common Stock held in treasury, a sufficient number of shares of Common Stock, free of preemptive rights, to permit the conversion
of the Notes.

 

    	65

    	 

    

 

(b) The Company covenants that all shares
of Common Stock issued upon conversion of Notes shall be duly and validly issued and fully paid and non-assessable by the Company
and free from all taxes, liens and charges with respect to the issue thereof.

 

(c) The Company shall endeavor promptly to
comply with all federal and state securities laws regulating the issuance and delivery of shares of Common Stock upon the conversion
of Notes, if any, and shall cause to have listed or quoted and shall keep listed or quoted all such shares of Common Stock on each
U.S. national securities exchange or automatic quotation system or over-the-counter or other domestic market on which the Common
Stock is then listed or quoted.

 

(d) As long as any Notes are outstanding,
the Company will not take any action that would result in an adjustment to the Conversion Rate that would result in the Conversion
Price being less than the par value of the Common Stock.

 

Section
10.07 Trustee Disclaimer.

 

The Trustee shall have no duty to determine
when or if an adjustment or reclassification under this Article 10 should be made, how it should be made, what any such adjustment
or reclassification should be or if any adjustment or reclassification has been performed properly. If any adjustment is made to
a Conversion Rate the Trustee may accept as conclusive evidence of that fact or the correctness of any such adjustment, and shall
be protected in relying upon, the Officers’ Certificate delivered to the Trustee pursuant to Section 10.04 hereof. Unless
and until the Trustee receives such Officers’ Certificate, the Trustee may assume without inquiry that the Conversion Rate
has not been adjusted. The Trustee makes no representations as to the validity or value of any securities or assets issued upon
conversion of the Notes, and the Trustee shall not be responsible for the Company’s failure to comply with any provision
of this Article 10.

 

ARTICLE
11

Miscellaneous

 

Section
11.01 Trust Indenture Act Controls.

 

If any provision of this Indenture limits,
qualifies or conflicts with another provision which, if applicable, is required to be included in this Indenture by the Trust Indenture
Act, the required provision shall control.

 

Section
11.02 Notices.

 

Any notice or communication shall be in writing
and delivered in person or mailed by first-class mail addressed as follows:

 

    	66

    	 

    

 

if to the Company:

 

Energy XXI (Bermuda) Limited

c/o Energy XXI U.S.A., Inc.

1021 Main, Suite 2626

Houston, Texas 77002

Attention: Chief Financial Officer

 

if to the Trustee:

 

Wells Fargo Bank, National Association

750 N. St. Paul Place, Suite 1750

Dallas, Texas 76102

Attention: Corporate Trust, Municipal and
Escrow Services

 

The Company or the Trustee by notice to the
other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication required to be
mailed to a Holder shall be mailed to the Holder at the Holder’s address as it appears on the Register of the Registrar,
or, with respect to Global Notes, shall be transmitted to the Depositary in accordance with its rules and procedures.

 

Failure to send a notice or communication
to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication is
sent in the manner provided above, it is duly given, whether or not the addressee receives it.

 

In addition to the foregoing, the Trustee
agrees to accept and act upon notice, instructions or directions pursuant to this Indenture sent by unsecured e-mail, facsimile
transmission or other similar unsecured electronic methods. If the party 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
understanding of such instructions shall be deemed controlling. The Trustee shall 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 such
instructions conflict or are inconsistent with a subsequent written instruction. The party providing electronic instructions agrees
to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including
without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third
parties.

 

Section
11.03 Communication by Holders with Other Holders.

 

Holders may communicate pursuant to Trust
Indenture Act Section 312(b) with other Holders with respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of Trust Indenture Act Section 312(c).

 

    	67

    	 

    

 

Section
11.04 Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company
to the Trustee to take or refrain from taking any action under this Indenture, the Company shall furnish to the Trustee:

 

(a) an Officers’ Certificate in form
and substance reasonably satisfactory to the Trustee stating that, in the opinion of the signers, all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b) an Opinion of Counsel in form and substance
reasonably satisfactory to the Trustee stating that, in the opinion of such counsel, all such conditions precedent have been complied
with.

 

Section
11.05 Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to
compliance with a covenant or condition provided for in this Indenture shall include:

 

(a) a statement that the individual making
such certificate or opinion has read such covenant or condition;

 

(b) a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(c) a statement that, in the opinion of such
individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether
or not such covenant or condition has been complied with; and

 

(d) a statement as to whether or not, in the
opinion of such individual, such covenant or condition has been complied with.

 

Section
11.06 When Notes Disregarded.

 

In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company or by any Person
directly or indirectly controlling or controlled by or under direct or indirect common control with the Company shall be disregarded
(from both the numerator and denominator) and deemed not to be outstanding, except that, for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes which a Responsible Officer of the
Trustee knows are so owned shall be so disregarded. Subject to the foregoing, only Notes outstanding at the time shall be considered
in any such determination.

 

Section
11.07 Rules by Trustee, Paying Agent and Registrar.

 

The Trustee may make reasonable rules for
action by or a meeting of Holders. The Registrar and the Paying Agent may make reasonable rules for their functions.

 

    	68

    	 

    

 

Section
11.08 Set-Off of Withholding Taxes.

 

If the Company is required by applicable law
to pay, and pays, withholding tax on behalf of a Non-U.S. Holder as a result of an adjustment to the Conversion Rate, the Company
may, at its option, set off or cause to be set off such withholding tax against any payments of cash or shares of Common Stock
on the Notes (or, if such withholding tax has not previously been fully set off against such cash or shares, against any payments
on the shares of Common Stock).

 

Section
11.09 GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL.

 

THIS INDENTURE AND THE NOTES SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. Each of the parties hereto agrees that any legal action,
suit or proceeding against it with respect to its obligations, liabilities or any other matter arising out of or in connection
with this Indenture or the Notes may be brought in the courts of the State of New York and hereby irrevocably consents and submits
to the non-exclusive jurisdiction of each such court in personam, generally and unconditionally with respect to any action,
suit or proceeding for itself and in respect of its properties, assets and revenues. The Company agrees that for purposes of the
foregoing it may be served at the office of its subsidiary specified in Section 11.02. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section
11.10 No Personal Liability of Directors, Officers, Employees and Shareholders.

 

No director, officer, employee, incorporator,
shareholder or partner of the Company, as such, will have any liability for any obligations of the Company under the Notes or this
Indenture for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder, by accepting
a Note, waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

Section
11.11 No Shareholder Rights. 

 

Holders shall not have any rights as shareholders
of the Company (including, without limitation, voting rights and rights to receive any dividends or other distributions on Common
Stock).

 

Section
11.12 Successors.

 

All agreements of the Company in this Indenture
and the Notes shall bind its successors. All agreements of the Trustee in this Indenture shall bind its successors.

 

    	69

    	 

    

 

Section
11.13 Multiple Originals.

 

The parties may sign any number of copies
of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy
is enough to prove this Indenture.

 

Section
11.14 Table of Contents; Headings.

 

The table of contents and headings of the
Articles and Sections of this Indenture have been inserted for convenience of reference only, are not intended to be considered
a part hereof and shall not modify or restrict any of the terms or provisions hereof.

 

Section
11.15 Severability Clause.

 

In case any provision in this Indenture shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

 

Section
11.16 Calculations.

 

Except as otherwise provided herein, the Company
shall be responsible for making all calculations called for under the Notes. These calculations include, but are not limited to,
determinations of the Closing Sale Price or volume-weighted average price of the Common Stock, Daily Settlement Amounts, Daily
Conversion Values, accrued interest payable on the Notes and the Conversion Rate and Conversion Price. The Company and its agents
will make all these calculations in good faith and, absent manifest error, such calculations will be final and binding on Holders
of the Notes. The Company shall provide a schedule of these calculations to each of the Trustee and the Conversion Agent upon request,
and each of the Trustee and the Conversion Agent is entitled to rely upon the accuracy of the Company’s calculations without
independent verification. The Trustee will forward these calculations to any Holder at the request of such Holder.

 

[Signatures on following
page]

 

    	70

    	 

    

 

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

  

	 	ENERGY XXI (BERMUDA) LIMITED
	 	as Issuer
	 	 	 
	 	 	 
	 	By:  	/s/ David West Griffin

	 	 	Name: David West Griffin
	 	 	Title: Chief Financial Officer
	 	 	 
	 	 	 
	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	as Trustee
	 	 	 
	 	 	 
	 	By:   	/s/ Patrick Giordano 
	 	 	Name: Patrick Giordano
	 	 	Title: Vice President

 

    	71

    	 

    

 

EXHIBIT A

 

[FORM OF FACE OF NOTE]

 

[Global Note Legend]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO ENERGY XXI (BERMUDA)
LIMITED OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE
AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

 

[Restricted Note Legend]

 

THE SECURITY EVIDENCED BY THIS CERTIFICATE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ACQUISITION HEREOF OR A BENEFICIAL INTEREST
HEREIN, THE HOLDER:

 

(1) REPRESENTS THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

 

(2) AGREES THAT IT WILL NOT PRIOR TO THE
DATE ONE YEAR AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF THE 3.0% SENIOR CONVERTIBLE NOTES DUE 2018 OF ENERGY XXI (BERMUDA) LIMITED
(THE “COMPANY”), OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OF 1933 OR ANY SUCCESSOR
PROVISION THEREUNDER, RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR ANY COMMON STOCK THAT MAY BE ISSUABLE UPON
CONVERSION OF SUCH SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT OF 1933 AND THAT CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, OR
(D) PURSUANT TO ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT OF 1933, INCLUDING UNDER RULE 144
UNDER THE SECURITIES ACT OF 1933, IF AVAILABLE, SUBJECT (IN THE CASE OF CLAUSE (D)) TO THE COMPANY’S AND THE TRUSTEE’S
RIGHT PRIOR TO ANY SUCH TRANSFER, TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY
TO THE COMPANY AND THE TRUSTEE; AND

 

(3)
AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED PURSUANT
TO CLAUSE 2(B) OR CLAUSE 2(D) (EXCEPT A TRANSFER PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933) ABOVE A NOTICE SUBSTANTIALLY
TO THE EFFECT OF THIS LEGEND.

 

    	A-1

    	 

    

 

	No. _______	 	 	 	$____________

Energy XXI (Bermuda) Limited

3.0% Senior Convertible Note due 2018

 

CUSIP No.: 29274U AA9

ISIN No.: US29274UAA97

 

ENERGY XXI (BERMUDA) LIMITED, a limited
exempt company organized under the laws of Bermuda, promises to pay to [Cede & Co.]1, or registered assigns, the
principal sum of [_________] Million Dollars ($__________) [or such lesser amount as is indicated in the books and records of the
Trustee and DTC]2, on December 15, 2018, and to pay interest thereon from [_________], or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, semi-annually on June 15 and December 15 of each year, commencing
June 15, 2014, at the rate of 3.0% per annum, until the principal hereof is paid or made available for payment or converted. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the Indenture,
be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the
Regular Record Date for such interest, which shall be June 1 or December 1 (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease
to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or
more predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest
to be fixed by the Trustee, notice whereof shall be given to Holders not more than 15 calendar days and not less than 10 calendar
days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more
fully provided in the Indenture (as defined on the reverse hereof).

 

If any payment date hereunder is not a
Business Day, payment may be made on the next succeeding Business Day, and no additional interest shall accrue thereon. Interest
on the Notes shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.

 

Reference is hereby made to the further
provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

This Note shall be deemed to be a contract
made under the laws of the State of New York, and for all purposes shall be governed by, and construed in accordance with, the
laws of said State.

 

Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled
to any benefit under the Indenture (as defined on the reverse hereof) or be valid or obligatory for any purpose.

 

_____________________

1 Use bracketed language only if Global Note.

2 Use bracketed language only if Global Note.

 

    	A-2

    	 

    

Dated:

 

 

	 	ENERGY XXI (BERMUDA) LIMITED
	 	 
	 	By: 	
	 	 	Name:
Title:

 

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee, certifies that this is one of
the

Notes referred to in the Indenture.

 

 

By:   ____________________________________

Authorized Signatory

 

    	A-3

    	 

    

 

[FORM OF REVERSE SIDE OF NOTE]

 

3.0% Senior Convertible Note due 2018

 

ENERGY XXI (BERMUDA) LIMITED, a limited
exempt company organized under the laws of Bermuda (such company, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the “Company”), issued this Note under an Indenture dated as of November 22,
2013, (as it may be amended or supplemented from time to time in accordance with the terms thereof, the “Indenture”),
among the Company and Wells Fargo Bank, National Association, as Trustee, to which reference is hereby made for a statement of
the respective rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders and of the terms
upon which the Notes are, and are to be, authorized and delivered. All terms used in this Note which are defined in the Indenture
shall have the meaning assigned to them in the Indenture.

 

1. Further Provisions Relating to Interest

 

In certain circumstances described in the
Indenture, the Company may be required to pay Reporting Additional Interest or Rule 144 Additional Interest. Except as otherwise
specifically set forth, all references herein to “interest” include Defaulted Interest, if any, Rule 144 Additional
Interest, if any, and Reporting Additional Interest, if any.

 

2. Method of Payment

 

The Company shall pay interest on the Notes
(except Defaulted Interest) to the Persons who are registered Holders of Notes at the close of business on the June 1 and December
1 next preceding the Interest Payment Date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company
shall pay principal and interest in money of the United States of America that at the time of payment is legal tender for payment
of public and private debts.

 

The Company shall pay interest on:

 

(i) any Global Notes to the Depositary in
immediately available funds;

 

(ii) any Notes in certificated form having
a principal amount of less than $2,000,000, by check mailed to the address of the Person in whose name such Notes are registered
as it appears in the Register; and

 

(iii) any Notes in certificated form having
a principal amount of $2,000,000 or more, by wire transfer in immediately available funds to an account in the United States of
America at the election of the Holder of such Notes duly delivered to the Trustee at least five Business Days prior to the relevant
Interest Payment Date.

 

    	A-4

    	 

    

 

2. Paying Agent, Registrar and Conversion Agent

 

Initially, Wells Fargo Bank, National Association,
a national banking association organized under the laws of the United States (the “Trustee”), shall act as Paying
Agent, Registrar and Conversion Agent. The Company may appoint and change any Paying Agent, Registrar or co-registrar or Conversion
Agent without notice. The Company or any of its Wholly Owned Subsidiaries that is not a Foreign Subsidiary may act as Paying Agent,
Registrar or co-registrar.

 

3. Sinking Fund

 

The Notes are not subject to any sinking
fund.

 

4. Repurchase of Notes at the Option of Holders

 

Upon the occurrence of a Fundamental Change,
the Holder has the right to require the Company to repurchase all or part of such Holder’s Notes in a principal amount thereof
that is equal to $1,000 in principal amount or whole multiples thereof on the Fundamental Change Repurchase Date at a price, payable
in cash, equal to 100% of the principal amount of the Notes such Holder elects to require the Company to repurchase, plus accrued
and unpaid interest to, but excluding, the Fundamental Change Repurchase Date. On or before the 10th calendar day after the occurrence
of a Fundamental Change, the Company shall provide to all Holders of record on the date of the Fundamental Change at their addresses
shown in the Register of the Registrar, the Trustee and the Paying Agent, a written notice of the occurrence of the Fundamental
Change and the resulting repurchase right. Such notice shall state, among other things, the event causing the Fundamental Change
and the procedures a Holder must follow to require the Company to repurchase such Holder’s Notes.

 

5. Conversion

 

Subject to the provisions of the Indenture,
the Holder hereof may convert, during certain periods and upon the occurrence of certain conditions specified in the Indenture
and prior to the close of business on the second Scheduled Trading Day immediately preceding the Maturity Date, any Notes or portion
thereof that is $1,000 or multiples thereof based on a Conversion Rate specified in the Indenture, as adjusted from time to time
as provided in the Indenture, upon satisfaction of the requirements set forth in the Indenture, including surrender of this Note,
together with a conversion notice as provided in the Indenture and this Note, to the Company at the office of the Conversion Agent
and, unless the shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied
by instruments of transfer in form satisfactory to the Company duly executed by, the Holder or by its duly authorized attorney.
Upon conversion, the Company shall satisfy its Conversion Obligation in cash, shares of Common Stock or a combination of cash and
shares of Common Stock, as the case may be, in accordance with the provisions of the Indenture. The initial Conversion Rate shall
be 24.7523 shares of Common Stock per $1,000 principal amount of Notes, subject to adjustment as provided in the Indenture. No
fractional shares of Common Stock shall be issued upon any conversion, but an adjustment in cash shall be paid to the Holder, as
provided in the Indenture, in respect of any fraction of a share that would otherwise be issuable upon the surrender of any Note
or Notes for conversion. No adjustment shall be made for dividends or any shares issued upon conversion of such Note except as
provided in the Indenture.

 

    	A-5

    	 

    

 

6. Denominations, Transfer, Exchange

 

The Notes are in registered form without
coupons in denominations of $1,000 and whole multiples of $1,000. A Holder may transfer or exchange Notes in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes required by law or permitted by the Indenture.

 

7. Persons Deemed Owners

 

The registered Holder of this Note may
be treated as the owner of it for all purposes.

 

8. Unclaimed Money

 

Subject to any applicable abandoned property
law, the Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal
or interest and any shares of Common Stock or other property due in respect of converted Notes that remains unclaimed for two years,
and, thereafter, Holders entitled to the money and/or securities must look to the Company for payment as general creditors.

 

9. Amendment, Waiver

 

Subject to certain exceptions, the Indenture
contains provisions permitting a modification or amendment of the Indenture or the Notes with the written consent or affirmative
vote of the Holders of a majority in aggregate principal amount of the then outstanding Notes and the waiver of any Event of Default
(other than with respect to nonpayment, a failure to satisfy the Conversion Obligation or a provision that cannot be amended without
the written consent of each Holder affected) or noncompliance with any provision with the written consent of the Holders of a majority
in aggregate principal amount of the then outstanding Notes.

 

In addition, the Indenture permits an amendment
of the Indenture or the Notes without the consent of any Holder under circumstances specified in the Indenture. The Indenture also
permits an amendment of the Indenture or the Notes only with the consent of any Holder affected thereby under circumstances specified
in the Indenture.

 

10. Defaults and Remedies

 

Except as specified in the Indenture, if
an Event of Default occurs (other than an Event of Default relating to certain events of bankruptcy, insolvency or reorganization
of the Company) and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the outstanding
Notes may declare the principal amount of the Notes and accrued and unpaid interest on the outstanding Notes to be due and payable.
If an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of the Company occurs, the principal
amount of the Notes and accrued and unpaid interest on the outstanding Notes shall automatically become due and payable without
any declaration or other act on the part of the Trustee or any Holders. Under certain circumstances, the Holders of a majority
in aggregate principal amount of the outstanding Notes may rescind any such acceleration with respect to the Notes and its consequences.

 

    	A-6

    	 

    

 

If an Event of Default occurs and is continuing,
the Trustee shall be under no obligation to exercise any of the rights or powers under the Indenture at the request or direction
of any of the Holders unless such Holders have offered to the Trustee reasonable indemnity or security against any loss, liability
or expense. Subject to certain exceptions, no Holder may pursue any remedy with respect to the Indenture or the Notes unless (i)
such Holder has given the Trustee written notice of an Event of Default, (ii) Holders of at least 25% in aggregate principal amount
of the outstanding Notes have made a written request to the Trustee to pursue the remedy and offered reasonable security or indemnity
against any costs, liability or expense of the Trustee, (iii) the Trustee fails to comply with such request within 60 calendar
days after receipt of such request and the offer of indemnity and (iv) the Trustee has not received an inconsistent direction from
the Holders of a majority in aggregate principal amount of the outstanding Notes. Subject to certain restrictions, the Holders
of a majority in aggregate principal amount of the outstanding Notes are given the right to direct the time, method and place of
any proceedings for any remedy available to the Trustee. The Trustee, however, may refuse to follow any direction that conflicts
with law or the Indenture or that the Trustee determines is unduly prejudicial to the rights of any other Holder or that would
involve the Trustee in personal liability or expense for which the Trustee has not received adequate indemnity as determined by
it in good faith. Prior to taking any action under the Indenture, the Trustee shall be entitled to indemnification satisfactory
to it in its sole discretion against all losses and expenses caused by taking or not taking such action.

 

No reference herein to the Indenture and
no provision of this Note or of the Indenture shall impair, as among the Company and the Holder of the Notes, the obligation of
the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the place, at the respective
times, at the rate and in the coin or currency herein and in the Indenture prescribed.

 

11. Trustee Dealings with the Company

 

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

 

12. No Personal Liability of Directors, Officers, Employees
and Stockholders

 

No director, officer, employee, incorporator,
stockholder or partner of the Company, as such, will have any liability for any obligations of the Company under the Notes or the
Indenture for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder, by accepting
a Note, waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

    	A-7

    	 

    

 

13. Authentication

 

This Note shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this
Note.

 

14. Abbreviations

 

Customary abbreviations may be used in
the name of a Holder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint
tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

 

15. GOVERNING LAW

 

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

16. CUSIP and ISIN Numbers

 

Pursuant to a recommendation promulgated
by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on
the Notes and has directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of repurchase and reliance
may be placed only on the other identification numbers placed thereon.

 

The Company shall furnish to any Holder
of Notes upon written request and without charge to the Holder a copy of the Indenture which has in it the text of this Note.

 

    	A-8

    	 

    

 

CONVERSION NOTICE

 

		TO:	ENERGY XXI (BERMUDA) LIMITED

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Trustee

 

The undersigned registered owner of this
Note hereby exercises the option to convert this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated
in accordance with the terms of the Indenture referred to in this Note, and directs that the cash, shares of Common Stock or combination
of cash and shares of Common Stock, as the case may be, deliverable upon such conversion and any Notes representing any unconverted
principal amount hereof, be issued and delivered to the registered holder hereof unless a different name has been indicated below.
Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. If shares or any
portion of this Note not converted are to be issued in the name of a person other than the undersigned, the undersigned shall provide
the appropriate information below and pay all transfer taxes payable with respect thereto. Any amount required to be paid by the
undersigned on account of interest accompanies this Note.

 

Dated:

 

	 	 	 
	 	 	 
	 	Signature(s) 	 

 

    	A-9

    	 

    

 

Fill in the registration of shares of Common
Stock, if any, if to be issued, and Notes if to be delivered, and the person to whom cash and payment for fractional shares is
to be made, if to be made, other than to and in the name of the registered holder:

 

Please print name and address

 

	 
	(Name)
	 
	 
	(Street Address)
	 
	 
	(City, State and Zip Code)
	 
	Principal amount to be converted
	(if less than all):
	 
	$ 	        
	Social Security or Other Taxpayer
	Identification Number:
	 
	 

NOTICE: The signature on this Conversion Notice must correspond
with the name as written upon the face of the Notes in every particular without alteration or enlargement or any change whatever.

 

    	A-10

    	 

    

FUNDAMENTAL CHANGE REPURCHASE NOTICE

 

TO:ENERGY XXI (BERMUDA) LIMITED

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Trustee

 

The undersigned registered owner of this
Note hereby acknowledges receipt of a notice from Energy XXI (Bermuda) Limited (the “Company”) regarding the
right of holders to elect to require the Company to repurchase the Notes and requests and instructs the Company to repay the entire
principal amount of this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance
with the terms of the Indenture at the price of 100% of such entire principal amount or portion thereof, together with accrued
and unpaid interest to, but excluding, the Fundamental Change Repurchase Date to the registered holder hereof. Capitalized terms
used herein but not defined shall have the meanings ascribed to such terms in the Indenture. The Notes shall be repurchased by
the Company as of the Fundamental Change Repurchase Date pursuant to the terms and conditions specified in the Indenture.

 

Dated:

 

Signature(s)                                                      

                                                              

 

NOTICE: The above signatures of the holder(s) hereof must correspond
with the name as written upon the face of the Notes in every particular without alteration or enlargement or any change whatever.

 

Notes Certificate Number (if applicable):                                       

 

Principal amount to be repurchased (if less
than all, must be $1,000 or whole multiples thereof):

                             

 

Social Security or Other Taxpayer Identification Number:                      

 

    	A-11

    	 

    

ASSIGNMENT

 

For value received _________________ hereby
sell(s) assign(s) and transfer(s) unto ______________ (Please insert social security or other Taxpayer Identification Number of
assignee) the within Notes, and hereby irrevocably constitutes and appoints ___________________ attorney to transfer said Notes
on the books of the Company, with full power of substitution in the premises.

 

In connection with any transfer of the Notes
prior to the first anniversary of the last date of the original issuance of the Notes, the undersigned confirms that such Notes
are being transferred:

 

		 ̈	To Energy XXI (Bermuda) Limited or a subsidiary thereof; or

 

		 ̈	To a “qualified institutional buyer” in compliance with Rule 144A under the Securities Act of 1933, as amended;
or

 

		 ̈	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended; or

 

		 ̈	Pursuant to a Registration Statement which has been declared effective under the Securities Act of 1933, as amended, and which
continues to be effective at the time of transfer;

 

and unless the Notes are being transferred to Energy XXI (Bermuda)
Limited or a subsidiary thereof, the undersigned confirms that such Notes are not being transferred to an “affiliate”
of the Company as defined in Rule 144 under the Securities Act of 1933, as amended.

 

Unless one of the boxes is checked, the Trustee shall refuse
to register any of the Notes evidenced by this certificate in the name of any person other than the registered holder thereof.

 

    	A-12

    	 

    

Dated:

 

	 	 	 
	 	 	 
	 	Signature(s) 	 

 

 

 

 

NOTICE: The signature on this Assignment must correspond with
the name as written upon the face of the Notes in every particular without alteration or enlargement or any change whatever.

 

    	A-13

    	 

    

 

EXHIBIT B

 

RESTRICTED COMMON STOCK LEGEND3

 

THE SECURITY EVIDENCED BY THIS CERTIFICATE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT OF 1933”), OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ACQUISITION HEREOF OR A BENEFICIAL INTEREST
HEREIN, THE HOLDER:

 

(1)REPRESENTS THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OF 1933;

 

(2)AGREES THAT IT WILL NOT PRIOR TO THE DATE ONE YEAR
AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF THE 3.0% SENIOR CONVERTIBLE NOTES DUE 2018 OF ENERGY XXI (BERMUDA) LIMITED (THE “COMPANY”)
, OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, RESELL
OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR ANY COMMON STOCK THAT MAY BE ISSUABLE UPON CONVERSION OF SUCH SECURITY EXCEPT
(A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE
WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT OF 1933 AND THAT CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER, OR (D) PURSUANT TO ANY OTHER EXEMPTION
FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT OF 1933, INCLUDING UNDER RULE 144 UNDER THE SECURITIES ACT OF 1933,
IF AVAILABLE, SUBJECT (IN THE CASE OF CLAUSE (D)) TO THE COMPANY’ S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH TRANSFER,
TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND THE TRUSTEE;
AND

 

(3) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED PURSUANT TO CLAUSE 2(B) OR CLAUSE 2(D) (EXCEPT A TRANSFER PURSUANT
TO RULE 144 UNDER THE SECURITIES ACT OF 1933) ABOVE A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

 

____________

3This legend should be included on shares of
Common Stock issued upon conversion of Notes only if such shares of Common Stock are Restricted Securities.

 

    	B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]