Document:

Purchase Agreement

 Exhibit 10.1 
 PURCHASE AGREEMENT 
 PURCHASE AGREEMENT (this
“Agreement”) dated as of the 28th day of September 2007, by, and among, DOWNTOWN GRILL INVESTORS LLC, a limited liability company organized under the laws of the State of California (the
“Seller”), and GRILL CONCEPTS, INC., a corporation organized under the laws of the State of Delaware (the “Purchaser”). 
 W I T N E S S E T H : 
 WHEREAS, the Purchaser, the Seller and GCI-MP, Inc. formed, and are
the members of, 612 Flower Daily Grill, LLC (the “Company”) to construct, own and operate a Daily Grill restaurant in Los Angeles, California; 
 WHEREAS, the Seller owns a 41.59% interest in the Company (the “Transferred Interest”); and 
 WHEREAS, the Seller has agreed to sell, and the Purchaser has agreed to purchase, the Transferred Interest on the terms, provisions and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Seller and Purchaser do hereby agree as follows: 
 ARTICLE I 
 Purchase and Sale of the Transferred Interest 
 Section 1.01. Purchase and Sale. On the Closing Date and upon the terms and subject to the conditions set forth herein, the Seller shall sell, convey, transfer, assign and deliver the Transferred Interest
to Purchaser, free and clear of all liens, and Purchaser shall purchase and accept the Transferred Interest from the Seller. 
 Section 1.02. Purchase Price. The purchase price (the “Purchase Price”) for the Transferred Interest shall be $1,750,000 and shall be payable as follows: 
 (a) The Purchase Price, less the Delivered Cash deliverable pursuant to Section 1.02(b), shall be payable in full by delivery of a
number of shares of non-assessable $0.00004 par value common stock (the “Delivered Shares”) of the Purchaser with an Agreed Value equal to the Purchase Price (less the Delivered Cash), where the “Agreed
Value” of the Delivered Shares is an amount equal to the greater of (i) the Market Price of the common stock of the Purchaser, or (ii) $7.00 per share. For purposes hereof, the “Market Price” of the
common stock of the Purchaser shall mean the closing sales price as reported by the Nasdaq Stock Market, or such other U.S. securities exchange on which the Purchaser’s common stock is then listed if it is no so listed on the Nasdaq Stock
Market, on the last trading day prior to the Closing Date, and if no such market then exists, the Market Price shall be deemed to be $7.00 per share. 

 (b) At the election of the Seller, and upon delivery of notice in writing to the
Purchaser at least five business days prior to the Closing Date, up to $300,000 (the “Delivered Cash”) of the Purchase Price shall be payable in cash at closing. 
 Section 1.03. Time and Place of Closing. The closing of the transactions contemplated by this Agreement shall take place at the offices of
the Purchaser on September 28, 2007 or at such other time or place as is mutually agreeable to the parties or, if any of the conditions to Closing set forth in Article II have not been satisfied or waived by the party entitled to the benefit
thereof on or prior to such date, on the second business day following satisfaction or waiver of such conditions (the “Closing Date”). 
 Section 1.04. Delivery of the Transferred Interest; Payment of Purchase Price. On the Closing Date: 
  

	 	(a)	The Seller shall deliver to Purchaser: 

  

	 	(i)	a duly executed Assignment (the “Assignment”), in the form attached hereto as Exhibit A, assigning and transferring to Purchaser all right, title and
interest in and to the Transferred Interest free and clear of all liens; and 

  

	 	(ii)	each of the certificates and other documents and instruments required to be delivered by or on behalf of Seller under Article II below, each duly executed where appropriate.

  

	 	(b)	The Purchaser shall deliver to Seller: 

  

	 	(i)	duly executed resolutions of Purchaser’s board of directors, certified by the corporate secretary of Purchaser, authorizing the payment to the Seller of the Delivered Cash and
the issuance of the Delivered Shares; 

  

	 	(ii)	each of the certificates and other documents and instruments required to be delivered by or on behalf of Purchaser under Article II below, each duly executed where appropriate;

  

	 	(iii)	the Delivered Cash; and 

  

	 	(iv)	a copy of irrevocable instructions to the Purchaser’s transfer agent to deliver the Delivered Shares to (A) the Seller or, (B) the individual members of the Seller in
their proportionate interest; provided, however, that the Delivered Shares will only be delivered to the individual members of the Seller if the Seller shall have previously instructed the Purchaser in writing to so deliver the shares.

  

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 ARTICLE II 
 Conditions to Closing 
 Section 2.01. Conditions to Purchaser’s Obligation.
The obligation of Purchaser to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions on or prior to the Closing Date: 
 (a) The representations and warranties in Article III hereof shall be true and correct in all material respects when made and as of the
Closing Date as though the Closing Date was substituted for the date of this Agreement throughout such representations and warranties and the Seller shall have performed in all material respects all of the covenants and agreements required to be
performed by the Seller hereunder prior to the Closing; 
 (b) The Seller shall have received or obtained all governmental,
shareholder, member, notices, third-party consents and approvals (each, an “Approval”) that are necessary (i) for the consummation of the transactions contemplated hereby or (ii) to prevent the consummation of the
transactions contemplated hereby from resulting in a breach of or default under, or a termination, modification or acceleration of or payment under, any instrument, contract, lease, license or other agreement to which the Seller is a party or is
bound, in each case on terms reasonably satisfactory to Purchaser; 
 (c) No suit, action or other proceeding shall be pending
or threatened before any governing authority wherein an unfavorable injunction, judgment, order, decree, ruling or charge would prevent the performance of this Agreement or the consummation of any of the transactions contemplated hereby or declare
unlawful any of the transactions contemplated hereby, and no such injunction, judgment, order, decree or ruling shall have been entered or be in effect; 
 (d) At the Closing, the Seller shall have delivered to Purchaser (i) a certificate signed by the Seller and an officer of the Seller, dated the date of the Closing, stating that the conditions specified in
subsections (a) through (c) above have been satisfied as of the Closing; (ii) copies of all Approvals; (iii) certified copies of the resolutions of Seller’s board of managers or other governing body authorizing the
execution, delivery and performance of this Agreement and the other agreements contemplated hereby and the consummation of the transactions contemplated hereby and thereby; (iv) a good standing certificate for the Seller from its jurisdiction
of organization dated as of a recent date prior to the Closing Date; and (v) such other documents or instruments as are required to be delivered by the Seller at the Closing pursuant to the terms hereof; and 
 (e) All proceedings to be taken by the Seller in connection with the consummation of the transactions contemplated hereby and all
certificates, opinions, instruments and other documents required to effect the transactions contemplated hereby reasonably requested by Purchaser shall be reasonably satisfactory in form and substance to Purchaser and its legal counsel. Any
condition specified in this Section 2.1 may be waived by Purchaser if such waiver is set forth in a writing duly executed by Purchaser. 
  

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 Section 2.02. Conditions to Seller’s Obligation. The obligation of Seller to consummate
the transactions contemplated by this Agreement is subject to the satisfaction of the following conditions on or prior to the Closing Date: 
 (a) The representations and warranties in Article IV hereof shall be true and correct in all material respects when made and as of the Closing Date as though the Closing Date was substituted for the date of this
Agreement throughout such representations and warranties and the Purchaser shall have performed in all material respects all of the covenants and agreements required to be performed by the Purchaser hereunder prior to the Closing; 
 (b) The Purchaser shall have received or obtained all governmental, shareholder, member, notices, third-party consents and approvals
(each, an “Approval”) that are necessary (i) for the consummation of the transactions contemplated hereby or (ii) to prevent the consummation of the transactions contemplated hereby from resulting in a breach of or
default under, or a termination, modification or acceleration of or payment under, any instrument, contract, lease, license or other agreement to which the Purchaser is a party or is bound, in each case on terms reasonably satisfactory to Seller;

 (c) No suit, action or other proceeding shall be pending or threatened before any governing authority wherein an
unfavorable injunction, judgment, order, decree, ruling or charge would prevent the performance of this Agreement or the consummation of any of the transactions contemplated hereby or declare unlawful any of the transactions contemplated hereby, and
no such injunction, judgment, order, decree or ruling shall have been entered or be in effect; 
 (d) At the Closing, the
Purchaser shall have delivered to Seller (i) a certificate signed by the Purchaser and an officer of the Purchaser, dated the date of the Closing, stating that the conditions specified in subsections (a) through (c) above have been
satisfied as of the Closing; (ii) copies of all Approvals; (iii) certified copies of the resolutions of Purchaser’s board of directors authorizing the execution, delivery and performance of this Agreement and the other agreements
contemplated hereby and the consummation of the transactions contemplated hereby and thereby; (iv) a good standing certificate for the Purchaser from its jurisdiction of organization dated as of a recent date prior to the Closing Date; and
(v) such other documents or instruments as are required to be delivered by the Purchaser at the Closing pursuant to the terms hereof; and 
 (e) All proceedings to be taken by the Purchaser in connection with the consummation of the transactions contemplated hereby and all certificates, opinions, instruments and other documents required to effect the
transactions contemplated hereby reasonably requested by Seller shall be reasonably satisfactory in form and substance to Seller and its legal counsel. Any condition specified in this Section 2.2 may be waived by Seller if such waiver is set
forth in a writing duly executed by Seller. 
  

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 ARTICLE III 
 Representations and Warranties of Seller 
 Subject to all of the terms, conditions and
provisions of this Agreement, Seller hereby represents and warrants to Purchaser, as of the date hereof and as of the Closing Date, as follows: 
 Section 3.01. Capacity, Organization, Corporate Power and Licenses. Seller has full power, authority and legal capacity to enter into this Agreement, and the other documents contemplated hereby and to perform its obligations
hereunder and thereunder. Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of California and is duly qualified or licensed to do business, and is in good standing in every
jurisdiction in which its ownership of property or conduct of business requires it to qualify. Seller is not in default under or in violation of any provision of its organizational documents. Seller has the full power and authority necessary to
own and use the assets of its business and carry on its business in the manner currently conducted and as presently proposed to be conducted after the Closing Date. 
 Section 3.02. Equity and Related Matters; Title. Seller is the record and beneficial owner of, and has good title to, the Transferred Interest, free and clear of all liens, claims, encumbrances and rights
of third parties and has the right to convey the Transferred Interest free of any preemptive rights, rights of first refusal, options or other similar rights. 
 Section 3.03. Financial Condition. Seller is solvent, as that term is commonly understood, with assets exceeding its liabilities and paying its liabilities as they come due and the consummation of the
transactions contemplated hereby will not render Seller insolvent. The Transferred Interest is held free of any liens, claims or encumbrances. 
 Section 3.04. No Brokers. No broker, finder or similar agent has been employed by or on behalf of Seller in connection with this Agreement or the transactions contemplated hereby, and Seller has not entered into any agreement or
understanding of any kind with any person or entity for the payment of any brokerage commission, finder’s fee or similar compensation in connection with this Agreement or the transactions contemplated hereby. 
 Section 3.05. Authorization; Noncontravention. 
 (a) The execution, delivery and performance of this Agreement and all of the other agreements and instruments contemplated hereby to which Seller is a party has been duly authorized by Seller. This Agreement has been
duly executed and delivered by Seller and constitutes a valid and binding obligation of Seller, enforceable in accordance with its terms, and each of the other agreements and instruments contemplated hereby to which Seller is a party, when executed
and delivered by Seller, in accordance with the terms hereof and thereof, shall each constitute a valid and binding obligation of Seller, enforceable in accordance with its respective terms, except as enforceability may be limited by bankruptcy
laws, other similar laws affecting creditors’ rights and general principles of equity affecting the availability of specific performance and other equitable remedies. 
  

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 (b) The execution and delivery by Seller of this Agreement and all of the other
agreements and instruments contemplated hereby to which Seller is a party and the fulfillment of and compliance with the respective terms hereof and thereof by Seller do not and shall not (i) conflict with or result in a breach of the terms,
conditions or provisions of, (ii) constitute a default under (whether with or without the passage of time, the giving of notice or both), (iii) result in the creation of any lien upon Seller’s assets pursuant to, (iv) give any
third party the right to modify, terminate or accelerate any obligation under, (v) result in a violation of, or (vi) require any authorization, consent, approval, exemption or other action of or by or notice or declaration to, or filing
with, any third party or any court or administrative or governmental body or agency pursuant to, Seller’s organizational documents, or any law, statute, rule or regulation to which Seller is subject, or any material agreement, instrument,
license, permit, order, judgment or decree to which Seller is subject. 
 Section 3.06. Consents and Approvals. No governmental
approvals and no notifications, filings or registrations to or with any governmental authority or any other person is or will be necessary for the valid execution and delivery by the Seller of this Agreement and the other documents contemplated
hereby or the consummation of the transactions contemplated hereby or thereby, or the enforceability hereof or thereof, other than those which have been obtained or made and are in full force and effect. 
 Section 3.07. Litigation. There are no, and have not been any, actions, suits, proceedings (including any arbitration proceedings), orders,
investigations or claims pending or, to the Seller’s knowledge, threatened against or affecting Seller that contest, or would have the effect of contesting, the validity of this Agreement or the transactions contemplated hereby. 
 Section 3.08. Securities and Tax Matters. In entering into this Agreement and the transactions contemplated hereby, including accepting the
Delivered Shares: 
 (a) Seller has conducted such investigation of the affairs of Purchaser as Seller, and its advisors,
deemed appropriate, including reviewing such public filings of Purchaser and other documents as Seller selected. Other than the representations and warranties contained herein, Seller did not rely on any disclosures or representations of Purchaser
in entering into this Agreement and agreeing to accept the Delivered Shares but relied entirely upon its own investigation; 
 (b) Seller, together with its advisors, is financially sophisticated and capable of evaluating the merits and risks of an investment in the Delivered Shares. Seller qualifies as an “accredited investor” as that term is defined
under the Securities Act of 1933 (the “Securities Act”) and Seller was not formed for the purpose of entering into this Agreement and receiving the Delivered Shares; 
 (c) Seller understands and acknowledges that the Delivered Shares will be acquired in a private transaction without general advertising or
public solicitation, that the Delivered Shares constitute “restricted securities,” as that term is defined in Rule 144 promulgated under the Securities Act, that may only be resold pursuant to an effective registration statement or an
available exemption from registration under state 

  

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and federal securities laws (such as Rule 144), that Purchaser has no obligation to file any registration statement covering the Delivered Shares, that,
among other conditions, Rule 144 imposes a one-year holding period (the “Rule 144 Holding Period”) and that, therefore, Seller may be required to hold the Delivered Shares for an indefinite period of time; and 
 (d) Seller understands and acknowledges that the sale of the Transferred Interest hereunder will likely give rise to taxable income to the
Seller, that Purchaser makes no representations regarding the taxable income that may arise from the purchase and sale of the Transferred Interests and that, subject to the obligation of the Company to deliver tax information to its members, Seller
is solely responsible for determination of the tax consequences to the Seller of the transactions contemplated hereby and is, along with the members of the Seller, responsible for all tax arising from the sale of the Transferred Interests.

 ARTICLE IV 
 Representations and Warranties of Purchaser 
 Subject to all of the terms, conditions and provisions of this
Agreement, Purchaser hereby represents and warrants to Seller, as of the date hereof and as of the Closing Date, as follows: 
 Section 4.01. Capacity, Organization, Corporate Power and Licenses. Purchaser has full power, authority and legal capacity to enter into this Agreement, and the other documents contemplated hereby and to perform its obligations
hereunder and thereunder. Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is duly qualified or licensed to do business, and is in good standing in every jurisdiction in
which its ownership of property or conduct of business requires it to qualify. Purchaser is not in default under or in violation of any provision of its organizational documents. Purchaser has the full power and authority necessary to own and
use the assets of its business and carry on its business in the manner currently conducted and as presently proposed to be conducted after the Closing Date. 
 Section 4.02. Authorization; Noncontravention. 
 (a) The execution, delivery and
performance of this Agreement and all of the other agreements and instruments contemplated hereby to which Purchaser is a party has been duly authorized by Purchaser. This Agreement has been duly executed and delivered by Purchaser and constitutes a
valid and binding obligation of Purchaser, enforceable in accordance with its terms, and each of the other agreements and instruments contemplated hereby to which Purchaser is a party, when executed and delivered by Purchaser, in accordance with the
terms hereof and thereof, shall each constitute a valid and binding obligation of Purchaser, enforceable in accordance with its respective terms, except as enforceability may be limited by bankruptcy laws, other similar laws affecting
creditors’ rights and general principles of equity affecting the availability of specific performance and other equitable remedies. 
  

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 (b) Except for the requirement that the consent of the holders of 70% of certain shares
of common stock sold by Purchaser in July 2007 (the “2007 Placement Consent”) be obtained, the execution and delivery by Purchaser of this Agreement and all of the other agreements and instruments contemplated hereby to which
Purchaser is a party and the fulfillment of and compliance with the respective terms hereof and thereof by Purchaser do not and shall not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a
default under (whether with or without the passage of time, the giving of notice or both), (iii) result in the creation of any lien upon Purchaser’s assets pursuant to, (iv) give any third party the right to modify, terminate or
accelerate any obligation under, (v) result in a violation of, or (vi) require any authorization, consent, approval, exemption or other action of or by or notice or declaration to, or filing with, any third party or any court or
administrative or governmental body or agency pursuant to, Purchaser’s organizational documents, or any law, statute, rule or regulation to which Purchaser is subject, or any material agreement, instrument, license, permit, order, judgment or
decree to which Purchaser is subject. 
 Section 4.03. Consents and Approvals. No governmental approvals and no notifications,
filings or registrations to or with any governmental authority or any other person, other than the 2007 Placement Consent, is or will be necessary for the valid execution and delivery by the Purchaser of this Agreement and the other documents
contemplated hereby or the consummation of the transactions contemplated hereby or thereby, or the enforceability hereof or thereof, other than those which have been obtained or made and are in full force and effect. 
 Section 4.04. Litigation. There are no, and have not been any, actions, suits, proceedings (including any arbitration proceedings), orders,
investigations or claims pending or, to the Purchaser’s knowledge, threatened against or affecting Purchaser that contest, or would have the effect of contesting, the validity of this Agreement or the transactions contemplated hereby.

 Section 4.05. Securities Matters. Subject to the accuracy of the representations of Seller set forth in Section 3.08(a),
(b) and (c), the offer, sale and issuance of the Delivered Shares issuable pursuant to this Agreement is exempt from the registration requirements of the Securities Act and the qualification and registration requirements of applicable blue sky
laws. 
 ARTICLE V 
 Piggy Back Registration Rights 
 Section 5.01. Grant of Rights. The Purchaser covenants and agrees with
any holder of the Delivered Shares (the “Registrable Securities”) that if, at any time within the period commencing on the Closing Date and ending on the later of (i) the first anniversary of the Closing Date or
(ii) the lapse of the Rule 144 Holding Period then applicable to the Delivered Shares, it proposes to file a registration statement with respect to any class of equity or equity-related security (other than in connection with an offering to the
Purchaser’s employees or in connection with an acquisition, merger or similar transaction) under the Securities Act in a primary registration on behalf of the Purchaser and/or in a secondary registration on behalf of holders of such securities
and the registration form to be used may be used for registration of the Registrable Securities, the Purchaser will give prompt written notice (which, in the case of a 

  

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registration statement pursuant to the exercise of demand registration rights shall be within ten (10) business days after the Purchaser’s receipt
of notice of such exercise and, in any event, shall be at least 20 days prior to such filing) to the holders of Registrable Securities at the addresses appearing on the records of the Purchaser of its intention to file a registration statement and
will offer to include in such registration statement all, but not less than 20% of the Registrable Securities, subject to Section 5.02, such number of Registrable Securities with respect to which the Purchaser has received written requests for
inclusion therein within ten (10) days after the giving of notice by the Purchaser. All registrations requested pursuant to this Section 5.01 are referred to herein as “Piggyback Registrations”. All Piggyback
Registrations pursuant to this Section 5.01 will be made solely at the Purchaser’s expense. This Section is not applicable to a registration statement filed by the Purchaser on Forms S-4 or S-8 or any successor forms. 
 Section 5.02. Priority and Cutback Provisions. The rights granted under Section 5.01 to Piggyback Registrations shall be subject to the
following qualifications and limitations: 
 (a) If a Piggyback Registration includes an underwritten primary registration on
behalf of the Purchaser and the underwriter(s) for such offering determines in good faith and advises the Purchaser in writing that in its/their opinion the number of Registrable Securities requested to be included in such registration exceeds the
number that can be sold in such offering without materially adversely affecting the distribution of such securities by the Purchaser, the Purchaser will include in such registration (i) first, the securities that the Company proposes to sell
and (ii) second, the Registrable Securities requested to be included in such registration apportioned pro rata among the holders of the Registrable Securities and holders of other securities requesting registration. 
 (b) If a Piggyback Registration consists only of an underwritten secondary registration on behalf of holders of securities of the
Purchaser, and the underwriter(s) for such offering advises the Purchaser in writing that in its/their opinion the number of Registrable Securities requested to be included in such registration exceeds the number which can be sold in such offering
without materially adversely affecting the distribution of such securities, the Purchaser will include in such registration (i) first, the securities requested to be included therein by the holders requesting such registration, and
(B) second, the Registrable Securities requested to be included in such registration and securities of holder of other securities requested to be included in such registration statement, pro rata among all such holders on the basis of the
number of shares requested to be included by each such holder, provided, however, the Purchaser will use its best efforts to include not less than 20% of the Registrable Securities. 
 Notwithstanding the foregoing, if any such underwriter shall determine in good faith and advise the Purchaser in writing that the distribution of the Registrable Securities requested to be included in the registration
concurrently with the securities being registered by the Purchaser would materially adversely affect the distribution of such securities by the Purchaser, then the holders of such Registrable Securities shall delay their offering and sale for such
period ending on the earliest of (1) 90 days following the effective date of the Purchaser’s registration statement, (2) the day upon which the underwriting syndicate, if any, for such offering shall have been disbanded or,
(3) such date as the Purchaser, managing underwriter and holders of Registrable Securities shall otherwise agree. In the event of such delay, the Purchaser shall file 

  

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such supplements, post-effective amendments and take any such other steps as may be necessary to permit such holders to make their proposed offering and sale
for a period of 120 days immediately following the end of any such period of delay. If any party disapproves the terms of any such underwriting, it may elect to withdraw therefrom by written notice to the Purchaser, the underwriter, and the holder.
Notwithstanding the foregoing, the Purchaser shall not be required to file a registration statement to include shares pursuant to Section 5.01 if independent counsel, reasonably satisfactory to the Company, renders an opinion to the Company
that the Registrable Securities proposed to be disposed of may be transferred pursuant to the provisions of Rule 144 under the Securities Act or otherwise without registration under the Securities Act. 
 Section 5.03. Expenses; Blue Sky. In connection with the registration of Registrable Securities hereunder, the Purchaser agrees to
(a) bear the expenses of any registration; provided, however, that in no event shall the Purchaser be obligated to pay (i) any fees and disbursements of special counsel for holders of Registrable Securities, (ii) any
underwriters’ discount or commission in respect of such Registrable Securities, and (iii) any stock transfer taxes attributable to the sale of the Registrable Securities; (b) use its best efforts to register or qualify the Registrable
Securities for offer or sale under state securities or Blue Sky laws of such jurisdictions in which such holders shall reasonably request, provided, however, that no qualification shall be required in any jurisdiction where, as a result thereof, the
Purchaser would be subject to service of general process or to taxation as a foreign corporation doing business in such jurisdiction to which it is not then subject; and (c) enter into a cross-indemnity agreement, in customary form, with each
underwriter, if any, and each holder of securities included in such registration statement. 
 Section 5.04. Information
Requirements. The Purchaser’s obligations under this Article V shall be conditioned upon a timely receipt by the Purchaser in writing of: (a) information as to the terms of such public offering furnished by or on behalf of each holder
of Registrable Securities intending to make a public offering of his, her or its Registrable Securities, and (b) such other information as the Purchaser may reasonably require from such holders, or any underwriter for any of them, for inclusion
in such registration statement. 
 ARTICLE VI 
 Termination 
 Section 6.01. Termination. This Agreement may be terminated at any
time prior to the Closing only as follows: 
 (a) by the mutual written consent of Purchaser, on the one hand, and the Seller,
on the other hand; 
 (b) by Purchaser, if there has been a material misrepresentation or a breach of warranty or a breach of
a covenant by the Seller in the representations and warranties set forth in this Agreement, which in the case of any breach of covenant has not been cured (if curable) by the earlier of (i) ten (10) days after written notification thereof
by Purchaser to Seller or (ii) the Termination Date; 
  

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 (c) by Seller, if there has been a material misrepresentation or a breach of warranty or
a breach of a covenant by Purchaser in the representations and warranties or covenants set forth in this Agreement, which in the case of any breach of covenant has not been cured (if curable) by the earlier of (i) ten (10) days after
written notification thereof by Seller to Purchaser or (ii) the Termination Date; 
 (d) by either Purchaser or Seller if
a final nonappealable order of a governing authority of competent jurisdiction permanently enjoining, restraining or otherwise prohibiting the Closing has been issued; or 
 (e) by either Purchaser or Seller if the transactions contemplated hereby have not been consummated by October 15, 2007 (the
“Termination Date”); 
 provided that the party electing termination pursuant to clause (b), (c), (d) or (e) of this
Section 6.01 is not in breach of any of its representations, warranties, covenants or agreements contained in this Agreement. In the event of termination by Purchaser or Seller pursuant to this Section 6.01, written notice thereof
(describing in reasonable detail the basis therefor) shall forthwith be delivered to the other parties. 
 Section 6.02. Effect of
Termination. In the event of termination of this Agreement by either Purchaser or Seller as provided above, this Agreement shall forthwith terminate and have no further force and effect, except that (a) the covenants and agreements set
forth in Sections 6.01 (Termination) and Article VII (Miscellaneous) shall survive such termination indefinitely, and (b) nothing in Section 6.01 or this Section 6.02 shall be deemed to release any party from any liability for any
breach by such party of the terms and provisions of this Agreement or to impair the right of any party to compel specific performance by another party of its remaining obligations under this Agreement. 
 ARTICLE VII 
 Miscellaneous

 Section 7.01. Benefit and Burden. This Agreement shall inure to the benefit of, and shall be binding upon, the parties
hereto and their successors and permitted assigns. 
 Section 7.02. No Third Party Rights. Nothing in this Agreement shall be
deemed to create any right in any creditor or other person not a party hereto and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any third party. 
 Section 7.03. Amendments and Waiver. No amendment, modification, restatement or supplement of this Agreement shall be valid unless the same
is in writing and signed by the parties hereto. No waiver of any provision of this Agreement shall be valid unless in writing and signed by the party against whom that waiver is sought to be enforced. 
 Section 7.04. Assignments. Neither this Agreement nor any right, interest or obligation hereunder may be assigned by any party hereto and any
attempt to do so shall be null and void. 
  

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 Section 7.05. Counterparts. This Agreement may be executed in counterparts and by the
different parties in separate counterparts, each of which when so executed shall be deemed an original and all of which taken together shall constitute one and the same agreement. 
 Section 7.06. Applicable Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF. 
 Section 7.07. Submission to Jurisdiction. Each of the parties hereby: (a) irrevocably submits to the non-exclusive personal jurisdiction of any state or federal court sitting in Los Angeles County, California, over any
claim arising out of or relating to this Agreement or any of the other documents contemplated hereby and irrevocably agrees that all such claims may be heard and determined in such court; and (b) irrevocably waives, to the fullest extent
permitted by applicable law, any objection it may now or hereafter have to the laying of venue in any proceeding brought in a state or federal court sitting in Los Angeles County, California, and any claim that any such proceeding brought in a state
or federal court sitting in Los Angeles County, California, has been brought in an inconvenient forum. 
 Section 7.08. Notices.
All notices and other communications under or in connection with this Agreement shall be in writing and shall be deemed given (a) if delivered personally, upon delivery, (b) if delivered by registered or certified mail, upon the earlier of
actual delivery or three business days after being mailed, (c) if delivered by overnight delivery service, one business day after being deposited with the overnight delivery service, and (d) if delivered by telecopy, upon confirmation of
transmission by telecopy, in each case to the parties at the following addresses: 
 If to the Purchaser, addressed to: 
 Grill Concepts, Inc. 
 11661 San Vicente
Blvd., Suite 404 
 Los Angeles, CA 90049 
 Attn: Philip Gay, President 
 Facsimile: (310) 820-6530 
 If to the Seller, addressed to: 
 Downtown
Grill Investors LLC 
 c/o Kennedy Wilson, Inc. 
 9601 Wilshire Blvd., #220 
 Beverly Hills, CA 90210 
 Attn: Freeman Lyle 
 Facsimile:
(310) 887-6459 
  

 12 

 Section 7.09. Expenses. Except as otherwise specifically provided herein, Seller and
Purchaser shall pay all of their own respective fees, costs and expenses (including fees, costs and expenses of legal counsel, brokers and other representatives and consultants) incurred in connection with the negotiation of this Agreement, the
performance of their obligations hereunder and the consummation of the transactions contemplated hereby. 
 Section 7.10. Entire
Agreement. This Agreement and the other documents contemplated hereby set forth all of the promises, agreements, conditions, understandings, warranties and representations among the parties with respect to the transactions contemplated hereby
and thereby, and supersede all prior agreements, arrangements and understandings between the parties, whether written, oral or otherwise. There are no promises, agreements, conditions, understandings, warranties or representations, oral or written,
express or implied, among the parties concerning the subject matter hereof or thereof except as set forth herein and therein. 
 IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written. 
  

			
	“SELLER”
	
	 Downtown Grill Investors LLC

		
	By:	 	 /s/ Freeman Lyle

	Name:	 	Freeman Lyle
	Title:	 	Manager
	
	“PURCHASER”
	
	Grill Concepts, Inc.
		
	By:	 	 /s/ Philip Gay

		 	Philip Gay, President

  

 13Third Supplemental Indenture

 Exhibit 4.1 
  

 EXECUTION COPY 
 THIRD SUPPLEMENTAL INDENTURE 
 by and among 
 STANDARD PACIFIC CORP., as Issuer 
 the GUARANTORS party hereto 
 and 
 THE BANK OF NEW YORK TRUST COMPANY,
N.A., as Trustee 
  

 Dated as of September 24, 2007 
  

 Supplemental to Indenture 
 Dated as of April 10, 2002 
  

 Authorizing the Issuance of

 6% Convertible Senior Subordinated Notes due 2012 
  

  

 TABLE OF CONTENTS 
  
  

			
	 	  	Page
		
	 ARTICLE 1 Scope and Definitions
	  	2
		
	 SECTION 1.01. Scope of Third Supplemental Indenture
	  	2
	 SECTION 1.02. Definitions
	  	2
	 SECTION 1.03. Rules of Construction
	  	14
		
	 ARTICLE 2 The Notes
	  	14
		
	 SECTION 2.01. Designation, Amount and Issuance of Notes
	  	14
	 SECTION 2.02. Form of the Notes
	  	14
	 SECTION 2.03. Conversion
	  	15
	 SECTION 2.04. Date and Denomination of Notes; Payment at Maturity; Payment of Interest
	  	15
	 SECTION 2.05. Registrar and Paying Agent
	  	16
	 SECTION 2.06. Exchange and Registration of Transfer of Notes
	  	16
		
	 ARTICLE 3 Repurchase of Notes
	  	17
		
	 SECTION 3.01. Repurchase at Option of Holders Upon a Fundamental Change
	  	17
	 SECTION 3.02. Withdrawal of Fundamental Change Repurchase Notice
	  	19
	 SECTION 3.03. Deposit of Fundamental Change Repurchase Price
	  	19
	 SECTION 3.04. Notes Repurchased in Part
	  	20
	 SECTION 3.05. Covenant to Comply with Securities Laws Upon Repurchase of Notes
	  	20
		
	 ARTICLE 4 Covenants
	  	20
		
	 SECTION 4.01. Reports
	  	20
	 SECTION 4.02. Further Instruments and Acts
	  	21
	 SECTION 4.03. Additional Interest
	  	21
	 SECTION 4.04. Statement by Officer as to Default
	  	21
	 SECTION 4.05. Waiver of Stay, Extension or Usury Laws
	  	21

  

			
		
	 ARTICLE 5 Successor Company
	  	22
		
	 SECTION 5.01. When Company May Merge or Transfer Assets
	  	22
	 SECTION 5.02. Successor to be Substituted
	  	22
	 SECTION 5.03. Opinion of Counsel to be Given Trustee
	  	23
		
	 ARTICLE 6 Defaults and Remedies
	  	23
		
	 SECTION 6.01. Events of Default
	  	23
	 SECTION 6.02. Acceleration
	  	25
	 SECTION 6.03. Failure to Comply with Reporting Covenant
	  	26
		
	 ARTICLE 7 Guarantee of the Notes
	  	26
		
	 SECTION 7.01. Unconditional Guarantees
	  	26
	 SECTION 7.02. Severability
	  	27
	 SECTION 7.03. Release of a Guarantor; Termination of Guarantee
	  	27
	 SECTION 7.04. Limitation of a Guarantor’s Liability
	  	28
	 SECTION 7.05. [Intentionally omitted]
	  	28
	 SECTION 7.06. Contribution
	  	28
	 SECTION 7.07. Waiver of Subrogation
	  	29
	 SECTION 7.08. Execution of Guarantee
	  	29
	 SECTION 7.09. Subordination of Guarantee
	  	29
	 SECTION 7.10. Compensation and Indemnity
	  	29
		
	 ARTICLE 8 Discharge of Indenture
	  	29
		
	 SECTION 8.01. Discharge of Company’s and Guarantor’s Liability on Notes
	  	29
	 SECTION 8.02. Application of Trust Money
	  	30
	 SECTION 8.03. Repayment to Company
	  	30
	 SECTION 8.04. Reinstatement
	  	30
		
	 ARTICLE 9 Amendments
	  	31
		
	 SECTION 9.01. Without Consent of Noteholders
	  	31
	 SECTION 9.02. With Consent of Noteholders
	  	32

  

 -ii- 

			
		
	 ARTICLE 10 Conversion of Notes
	  	33
		
	 SECTION 10.01. Right to Convert
	  	33
	 SECTION 10.02. Conversion Procedures; Settlement Upon Conversion; No Adjustment for Interest or Dividends; No Fractional
Shares
	  	35
	 SECTION 10.03. Increased Conversion Rate Applicable to Certain Securities Surrendered in Connection With Make-Whole Fundamental Changes

	  	38
	 SECTION 10.04. Adjustment of Conversion Rate
	  	40
	 SECTION 10.05. Effect of Reclassification, Consolidation, Merger or Sale
	  	48
	 SECTION 10.06. Certain Covenants
	  	49
	 SECTION 10.07. Notice to Holders Prior to Certain Actions
	  	49
	 SECTION 10.08. Stockholder Rights Plans
	  	50
	 SECTION 10.09. Responsibility of Trustee
	  	50
		
	 ARTICLE 11 Miscellaneous
	  	51
		
	 SECTION 11.01. Notices
	  	51
	 SECTION 11.02. When Notes Disregarded
	  	51
	 SECTION 11.03. GOVERNING LAW
	  	51
	 SECTION 11.04. No Recourse Against Others
	  	51
	 SECTION 11.05. Successors
	  	52
	 SECTION 11.06. Multiple Originals
	  	52
	 SECTION 11.07. Table of Contents; Headings
	  	52
	 SECTION 11.08. Severability Clause
	  	52
	 SECTION 11.09. Calculations
	  	52
	 SECTION 11.10. No Adverse Interpretation of Other Agreements
	  	52
		
	 Exhibit A    -     Form of Note
	  	

  

 -iii- 

 THIS THIRD SUPPLEMENTAL INDENTURE dated as of September 24, 2007 (the “Third Supplemental
Indenture”), among STANDARD PACIFIC CORP., a Delaware corporation, as issuer (the “Company”), the guarantors listed on the signature page hereto (the “Initial Guarantors”) and THE BANK OF NEW YORK TRUST
COMPANY, N.A., a national banking association organized under the laws of the United States, as trustee (the “Trustee”). 
 WHEREAS, this Third Supplemental Indenture is supplemental to the indenture dated as of
April 10, 2002 (the “Original Indenture”) by and between the Company and J.P. Morgan Trust Company, N.A., as Trustee (the “Original Trustee”), which was previously supplemented by the First Supplemental
Indenture dated as of April 10, 2002 (the “First Supplemental Indenture”) and the Second Supplemental Indenture dated as of February 22, 2006 (the “Second Supplemental Indenture”), in each case by and
between the Company and the Original Trustee and relating to the Company’s outstanding 9 1/4% Senior
Subordinated Notes due 2012; 
 WHEREAS, the Company has duly authorized the creation of an issue of its 6% Convertible Senior
Subordinated Notes due 2012 (the “Notes”), having the terms, tenor, amount and other provisions hereinafter set forth, and, to provide therefor, the Company has duly authorized the execution and delivery of this Third Supplemental
Indenture (the Original Indenture, as supplemented by this Third Supplemental Indenture, the “Indenture”); 
 WHEREAS,
pursuant to Section 2.01 of the Original Indenture, the Company may establish one or more Series of Securities from time to time as authorized by a supplemental indenture; 
 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 Third Supplemental Indenture a valid and binding agreement of the Company, in accordance with their and its terms, have been done and performed, and the execution of this
Third Supplemental Indenture and the issue hereunder of the Notes have in all respects been duly authorized; and 
 WHEREAS, the Guarantors
party hereto have duly authorized the execution and delivery of this Third Supplemental Indenture as guarantors of the Notes. All things necessary to make the Indenture a valid agreement of each Guarantor, in accordance with its terms, have been
done, and each Guarantor has done all things necessary to make the Guarantee, when the Notes are executed by the Company and authenticated and delivered by the Trustee and duly issued by the Company, the valid obligations of such Guarantor as
hereinafter provided. 
 NOW, THEREFORE, this Third Supplemental 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 
 Scope and Definitions 
 SECTION 1.01. Scope of Third Supplemental Indenture. The changes,
modifications and supplements to the Original Indenture affected by this Third Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the Notes, which shall be limited to $100 million aggregate principal amount (or
the lesser of (i) $115,000,000 and (ii) $100,000,000 plus the principal amount of Notes to be purchased pursuant to the Underwriters’ over-allotment option pursuant to the Underwriting Agreement) outstanding at any time and which may
be issued from time to time, and shall not apply to any other Securities that may be issued under the Original Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and
supplements. The provisions of the Third Supplemental Indenture shall supersede any corresponding or inconsistent provisions in the Original Indenture. 
 SECTION 1.02. Definitions. The terms defined in this Section 1.02 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Third Supplemental
Indenture, and for purposes of the Original Indenture as it relates to the Notes, shall have the respective meanings specified in this Section 1.02. Except as otherwise provided in this Third Supplemental Indenture, all words, terms and phrases
defined in the Original Indenture (but not otherwise defined herein) shall have the same meaning herein as in the Original Indenture. All other terms used in this Third Supplemental 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 Third Supplemental Indenture. The words “herein”, “hereof”, “hereunder” and words of similar import refer to this Third Supplemental Indenture as
a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article include the plural as well as the singular, and the word “including” shall be deemed to mean “including without
limitation.” 
 “Additional Interest” has the meaning specified in Section 6.03. 
 “Additional Shares” has the meaning specified in Section 10.03. 
 “Adjustment Event” has the meaning specified in Section 10.04(k). 
 “Adjusted Net Assets” has the meaning specified in Section 7.06. 
 “Bank Credit Facility” means the Revolving Credit Facility, the Term Loan Credit Facilities and any other bank credit agreement or
credit facility entered into in the future by the Company or any Guarantor and any other agreement (including all related ancillary agreements) pursuant to which any of the Indebtedness, Obligations, commitments, costs, expenses, fees,
reimbursements and other indemnities payable or owing under the Revolving Credit Facility, the Term Loan Credit Facilities or any other bank credit agreement or credit facility (or under any subsequent Bank Credit Facility) may be refinanced,
restructured, renewed, 

  

 -2- 

 
extended, refunded, replaced or increased, as any such Revolving Credit Facility, Term Loan Credit Facility, bank credit agreement, credit facility or other
agreement may from time to time at the option of the parties thereto be amended, renewed, supplemented or otherwise modified. 
 “Bankruptcy Law” has the meaning specified in Section 6.01. 
 “Bid Solicitation Agent” means
the agency appointed by the Company to solicit bids for the Trading Price of the Notes in accordance with Section 10.01(2). The Bid Solicitation Agent appointed by the Company shall initially be the Trustee. 
 “Board of Directors” means the board of directors of the Company or, other than for purposes of the definition of “Fundamental
Change”, any duly authorized committee thereof. 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York City are authorized or obligated by law or executive order to close. 
 “close of business” means 5:00 p.m. (New York City time). 
 “Code” means the Internal Revenue
Code of 1986, as amended. 
 “Common Equity” of any Person means Capital Stock of such Person that is generally entitled to
(i) vote in the election of directors of such Person or (ii) if such Person is not a corporation, vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or
policies of such Person. 
 “Common Stock” means the shares of common stock, par value $0.01 per share, of the Company as
they exist on the date of this Indenture or any other shares of Capital Stock of the Company into which the Common Stock shall be reclassified or changed or, in the event of a merger, consolidation or other similar transaction involving the Company
that is otherwise permitted hereunder in which the Company is not the surviving corporation, the common stock, common equity interests, ordinary shares or depositary shares or other certificates representing common equity interests of such surviving
corporation. 
 “Company” means the party named as such in this Third Supplemental 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 Notes. 
 “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. 
  

 -3- 

 “Conversion Price” on any date of determination means $1,000 divided by the Conversion
Rate as of such date. 
 “Conversion Rate” has the meaning specified in Section 10.01. 
 “Conversion Value,” for every $1,000 principal amount of a Note being converted, means an amount equal to the sum of the Daily
Conversion Values for each of the thirty (30) Settlement Period Trading Days in the Settlement Period. 
 “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 the Indenture shall be administered, which office is, at the date as of which this Third
Supplemental Indenture is dated, located at 2 North LaSalle, Suite 1020, Chicago, IL 60602, Attention: Global Corporate Trust or at any other time at such other address as the Trustee may designate from time to time by notice to the Company.

 “Current Market Price” for purposes of clauses (b), (c) and (d) under Section 10.04, means the average of
the Last Reported Sale Prices of the Common Stock over the ten (10) consecutive Trading-Day period ending on the Trading Day immediately preceding the date of announcement of such transaction (in the case of clause (b)) or the Ex-Dividend Date
(in all other cases) for the distribution requiring such computation. 
 “Custodian” has the meaning specified in
Section 6.01. 
 “Daily Conversion Value” for any Settlement Period Trading Day equals 1/30th of (x) the
Conversion Rate in effect on that Settlement Period Trading Day multiplied by (y) the VWAP of the Common Stock on that Settlement Period Trading Day. 
 “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 the Indenture, and thereafter, “Depositary” shall mean or include such successor. 
 “Determination Date” has the meaning specified in Section 10.04(k). 
 “Distributed Property” has the meaning specified in Section 10.04(c). 
 “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. 
 “Ex-Dividend Date” means, in respect of a dividend or distribution to holders of Common Stock, the first date upon which a sale of the
Common Stock does not automatically transfer the right to receive the relevant dividend or distribution from the seller of the Common Stock to its buyer. 
  

 -4- 

 “Existing Senior Notes” means the debt securities of the Company issued under the Senior
Debt Securities Indenture, dated as of April 1, 1999, as amended or supplemented from time to time, and outstanding as of the date of this Third Supplemental Indenture, until such debt securities cease to be outstanding. 
 “Existing Senior Subordinated Notes” means the debt securities of the Company (other than the Notes) issued under the First Supplemental
Indenture and outstanding as of the date of this Third Supplemental Indenture, until such debt securities cease to be outstanding. 
 “Expiration Date” has the meaning specified in Section 10.04(e). 
 “Expiration Time” has the
meaning specified in Section 10.04(e). 
 “Fair Market Value” means the amount that a willing buyer would pay to a
willing seller in an arms’ length transaction, as determined by the Board of Directors. 
 “First Supplemental
Indenture” means the First Supplemental Indenture dated as of April 10, 2002 by and between the Company and the Trustee, as amended or supplemented from time to time. 
 “Fixed Cash Amount” has the meaning specified in Section 10.02(b). 
 “Fundamental Change” shall be deemed to have occurred at such time after the original issuance of the Notes that any of
the following occurs: 
 (i) any “person” or “group” (within the meaning of Section 13(d) of the
Exchange Act), other than the Company, its Subsidiaries or the employee benefit plans of the Company or any such Subsidiary of the Company, files a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or
group has become the direct or indirect ultimate “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the Company’s Common Equity representing more than 50% of the voting power of the Company’s Common Equity;

 (ii) consummation of any consolidation or merger of the Company pursuant to which the Common Stock will be converted into
cash, securities or other property or any conveyance, transfer, sale, lease or other disposition 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 other than one of the Company’s Subsidiaries; provided, however, that a transaction where the Holders of more than 50% of all classes of the Company’s Common Equity immediately prior to such transaction own,
directly or indirectly, more than 50% of all classes of Common Equity of the continuing or surviving corporation or transferee immediately after such event shall not be a Fundamental Change; 
  

 -5- 

 (iii) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Company’s Board of Directors (together with any new directors whose election by such Board of Directors or whose nomination for election by the Company’s shareholders was approved by a majority vote of the
directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors then in office;
or 
 (iv) the Common Stock (or other common stock into which the Notes are then convertible) ceases to be quoted or listed
for trading on a national securities exchange or market or another established automated over-the-counter trading market in the United States, except as a result of consolidation or merger to which the Company is a party or a tender offer or
exchange offer for the Company’s Common Stock or other common stock into which the Notes are then convertible; 
 provided, however, that a
Fundamental Change shall not be deemed to have occurred if at least 90% of the consideration, excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal rights, in the transaction or transactions
otherwise constituting the Fundamental Change consists of shares of common stock quoted or listed for trading on a national securities exchange or market which will be so listed or quoted when issued or exchanged in connection with such transaction
or transactions (“Publicly Traded Securities”), and as a result of such transaction or transactions, the Notes become convertible based on such Publicly Traded Securities. 
 For purposes of this definition, whether a “person” is a “beneficial owner” shall be determined in accordance with Rule 13d-3
under the Exchange Act and “person” includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. 
 “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). 
 “Funding Guarantor” has the meaning specified in Section 7.06. 
  

 -6- 

 “Global Notes” has the meaning specified in Section 2.02. 
 “Guarantee” means any guarantee by a Guarantor of the Notes that may be issued under the Indenture, executed pursuant to the terms of
the Indenture. 
 “Guarantor Senior Indebtedness” means, at any date, all Indebtedness of any Guarantor, including
principal, premium, if any, and interest (including Post-Petition Interest), fees and other amounts payable in connection with such Indebtedness, unless the instrument under which such Indebtedness of the Guarantor is incurred expressly provides
that such Indebtedness is not senior or superior in right of payment to such Guarantor’s Guarantee of the Notes and all renewals, extensions, modifications, amendments, restructurings or refinancings thereof. Without limiting the generality of
the foregoing, “Guarantor Senior Indebtedness” shall also include the principal of, premium, if any, interest (including any Post-Petition Interest) on, and all other amounts owing in respect of (1) all monetary obligations of every
nature of any Guarantor under, or with respect to, any Bank Credit Facility, including obligations to pay principal and interest, reimbursement obligations under letters of credit, fees, expenses and indemnities (and guarantees thereof) and
(2) all Interest Rate Agreements (and guarantees thereof); in each case whether outstanding on the date the Notes are originally issued pursuant to the Indenture thereafter incurred. Notwithstanding the foregoing, Guarantor Senior Indebtedness
shall not include (a) to the extent that it may constitute Indebtedness, any obligation for federal, state, local or other taxes; (b) any Indebtedness between the Guarantor and the Company; (c) to the extent that it may constitute
Indebtedness, any obligation in respect of any trade payable incurred for the purchase of goods or materials, or for services obtained, in the ordinary course of business; (d) that portion of any Indebtedness that is incurred in violation of
the terms of the Existing Senior Subordinated Notes or the incurrence of any Indebtedness by any Guarantor that purports to be subordinated to any Indebtedness of such Guarantor but that by its terms is not expressly stated to be pari passu
with or subordinated to such Guarantor’s Guarantee of the Notes; (e) Indebtedness evidenced by such Guarantor’s Guarantee of the Notes or its guarantee of any Existing Senior Subordinated Notes; and (f) to the extent that it may
constitute Indebtedness, any obligation owing under leases (other than Capitalized Lease Obligations). 
 “Guarantors” means
(A) initially, the Initial Guarantors and (B) each of the Company’s other Subsidiaries that executes a Guarantee of the Notes pursuant to the terms of the Indenture; provided that, upon release or discharge of such Person from
its Guarantee in accordance with the provisions of the Indenture, such Person shall cease to be a Guarantor. 
 “Incur”
means issue, assume, guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary; provided further, however, that in the case of a discount security, neither the accrual of interest nor the accretion of
original issue discount shall be considered an Incurrence of Indebtedness. The term “Incurrence” when used as noun shall have a correlative meaning. 
 “Indenture” means the Original Indenture, as amended and supplemented by this Third Supplemental Indenture and, if further amended or supplemented as herein provided, as so amended or supplemented.

  

 -7- 

 “Initial Conversion Rate” has the meaning specified in Section 10.01. 

“interest” means, when used with reference to the Notes, any interest payable under the terms of the Notes, including defaulted
interest, if any, and Additional Interest, if any. 
 “Interest Payment Date” has the meaning specified in
Section 2.04(c). 
 “Last Reported Sale Price” of the Common Stock on any date means: 
 (i) the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one
in either case, the average of the average bid and the average asked prices) on that date as reported by the New York Stock Exchange; or 
 (ii) if the Common Stock is not listed on the New York Stock Exchange, the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either
case, the average of the average bid and the average asked prices) on that date as reported in composite transactions for the principal U.S. national or regional securities exchange or market on which the Common Stock is traded; or 
 (iii) if the Common Stock is not listed for trading on a U.S. national or regional securities exchange or market, the last quoted bid
price for the Common Stock in the over-the-counter market on that date as reported by Pink Sheets, LLC or a similar organization; or 
 (iv) if the Common Stock is not so quoted by Pink Sheets LLC or a similar organization, the average of the mid-point of the last bid and ask prices for the Common Stock on the relevant date from a nationally recognized independent
investment banking firm selected by the Company for this purpose. 
 The Last Reported Sale Price of the Common Stock will be determined
without reference to extended or after hours trading. If during a period applicable for calculating the Last Reported Sale Price of the Common Stock an event occurs that requires an adjustment to the Conversion Rate, the Last Reported Sale Price
shall be calculated for such period in a manner determined by the Company to appropriately reflect the impact of such event on the price of the Common Stock during such period. 
 “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental Change as described in clause (i),
(ii) and (iv) of the definition thereof, but without regard to the proviso in clause (ii) of such definition. 
 “Market Disruption Event” means, if the Common Stock is listed on the New York Stock Exchange or listed on another U.S. national or regional securities exchange, the occurrence or existence during the one-half hour period
ending on the scheduled close of trading on any Trading Day of any material suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any
options, contracts or future contracts relating to the Common Stock. 
  

 -8- 

 “Maturity Date” means October 1, 2012. 
 “Net Share Settlement” has the meaning specified in Section 10.02(b). 
 “Non-Recourse Indebtedness” means Indebtedness or other obligations secured by a lien on property to the extent that the liability for
such Indebtedness or other obligations is limited to the security of the property without liability on the part of the Company or any Subsidiary (other than the Subsidiary which holds title to such property) for any deficiency. 
 “Noteholder” or “Holder” means the Person in whose name a Note is registered on the Registrar’s books. 

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

 “Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness. 
 “opening of business” means 9:00 a.m. (New York
City time). 
 “Original Indenture” means the indenture dated as of April 10, 2002 by and between the Company and the
Trustee. 
 “Original Trustee” means J.P. Morgan Trust Company, N.A. 
 “Paying Agent” means any Person (including the Company or a Subsidiary of the Company) appointed by the Company to pay the principal
amount of, interest on, Fundamental Change Repurchase Price with respect to, or any other amounts with respect to, any Notes on behalf of the Company. The Trustee shall initially be the Paying Agent. 
 “Public Traded Securities” has the meaning specified within the definition of “Fundamental Change” in this Section 1.02.

 “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. 
 “Regular Record Date” means, with respect to any Interest Payment Date of the Notes, the March 15 and September 15 preceding
the applicable April 1 and October 1 Interest Payment Date, respectively. 
 “Reorganization Event” has the
meaning specified in Section 10.05. 
  

 -9- 

 “Responsible Officer” shall mean, when used with respect to the Trustee, any officer
within the corporate trust department of the Trustee with direct responsibility for the administration of the Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of
such person’s knowledge of or familiarity with the particular subject. 
 “Revolving Credit Facility” means that
certain Revolving Credit Agreement (as amended from time to time, the “Revolving Credit Agreement”) dated as of August 31, 2005 among the Company, Bank of America, N.A., as Administrative Agent, the lenders party thereto from time to
time, and the other Loan Documents (as defined in the Revolving Credit Agreement) or other analogous documents entered into in connection with any refinancing, restructuring, renewal, extension, refunding, replacement or increase thereof, as any of
the foregoing has been or may from time to time be amended, renewed, supplemented or otherwise modified at the option of the parties thereto (in whole or in part, and without limitation as to amount, terms, conditions, covenants and other
provisions) and to add any Subsidiary as an additional direct obligor thereunder. 
 “Schedule TO” means a Tender Offer
Statement under Section 14(d)(1) or 13(e)(1) of the Exchange Act. 
 “Scheduled Trading Day” means any day on which the
primary U.S. national securities exchange or market on which the Common Stock is listed or admitted for trading is scheduled to be open for trading. If the Common Stock is not so listed or admitted for trading, Scheduled Trading Day shall mean a
Business Day. 
 “SEC” means the Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Senior Indebtedness” means, at any date, all of the Company’s Indebtedness, including principal, premium, if any, and interest
(including Post-Petition Interest), fees and other amounts payable in connection with such Indebtedness, unless the instrument under which such Indebtedness is incurred expressly provides that such Indebtedness is not senior or superior in right of
payment to the Notes and all renewals, extensions, modifications, amendments, restructurings or refinancings thereof. “Senior Indebtedness” shall also include the principal of, premium, if any, interest (including any Post-Petition
Interest) on, and all other amounts owing in respect of (1) all monetary obligations of every nature of the Company under, or with respect to, any Bank Credit Facility, including obligations to pay principal and interest, reimbursement
obligations under letters of credit, fees, expenses and indemnities (and guarantees thereof) and (2) all Interest Rate Agreements (and guarantees thereof); in each case whether outstanding on the date the Notes are originally issued pursuant to
the Indenture or thereafter incurred. Notwithstanding the foregoing, “Senior Indebtedness” shall not include (a) to the extent that it may constitute Indebtedness, any obligation for federal, state, local or other taxes; (b) any
Indebtedness between the Company and any of its Subsidiaries; (c) to the extent that it may constitute Indebtedness, any obligation in respect of any trade payable incurred for the purchase of goods or materials, or for services obtained, in
the ordinary course of business; (d) that portion of any Indebtedness that is incurred in violation of the terms of the Existing Senior Subordinated 

  

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Notes or the incurrence of any Indebtedness by the Company that purports to be subordinated to any Indebtedness of the Company but that by its terms is not
expressly stated to be pari passu with or subordinated to the Notes; (e) Indebtedness evidenced by the Notes and the Existing Senior Subordinated Notes; and (f) to the extent that it may constitute Indebtedness, any obligation owing
under leases (other than Capitalized Lease Obligations). 
 “Settlement Period” means the thirty (30) consecutive
Settlement Period Trading Days: 
 (i) with respect to Conversion Dates
occurring during the period beginning on the thirty-fifth (35th) Scheduled Trading Day preceding the Maturity Date, the period beginning on and
including the thirty-third (33rd) Scheduled Trading Day immediately preceding the Maturity Date; and 
 (ii) in all other cases, the period beginning on and including the third (3rd) Trading Day following the Conversion Date. 
 “Settlement Period Market Disruption Event” means: 
 (i) a failure by the primary U.S. national
securities exchange or market on which the Common Stock is listed or admitted to trading to open for trading during its regular trading session; or 
 (ii) the occurrence or existence prior to 1:00 p.m., New York City time, on any Trading Day for the Common Stock of an aggregate one-half hour period, of any material suspension or limitation imposed on trading (by
reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or future contracts relating to the Common Stock. 
 “Settlement Period Trading Day” means a day during which: 
 (i) trading in the Common Stock generally occurs on the primary U.S. national securities exchange or market on which the Common Stock is
listed or admitted for trading; and 
 (ii) there is no Settlement Period Market Disruption Event; 
 provided, however, that if the Common Stock is not traded on any market, then “Settlement Period Trading Day” shall mean a day for which the VWAP of the
Common Stock can be obtained. 
 “Spin-off” has the meaning specified in Section 10.04(c). 
 “Stock Price” means: 
 (i) in the case of a Make-Whole Fundamental Change in which holders of the Common Stock receive only cash as consideration for their share of Common Stock, the amount of cash paid per share of the Common Stock in such
Make-Whole Fundamental Change; or 
  

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 (ii) in the case of all other Make-Whole Fundamental Changes, the average of the Last
Reported Sale Prices of Common Stock over the five (5) consecutive Trading-Day period ending on the Trading Day immediately preceding the Effective Date of such Make-Whole Fundamental Change. 
 “Stock Price Measurement Period” has the meaning specified in Section 10.01(1). 
 “Successor Company” has the meaning specified in Section 5.01(a). 
 “Term Loan Credit Facilities” means (i) the Term Loan A Credit Agreement dated as of May 5, 2006 among the Company, Bank of
America, N.A., as Administrative Agent, the lenders party thereto from time to time, and the other Loan Documents (as defined therein), in each case as amended from time to time, (ii) the Term Loan B Credit Agreement dated as of May 5,
2006 among the Company, Bank of America, N.A., as Administrative Agent, the lenders party thereto from time to time, and the other Loan Documents (as defined therein), in each case as amended from time to time, and (iii) in the case of
(i) and (ii), other analogous documents entered into in connection with any refinancing, restructuring, renewal, extension, refunding, replacement or increase thereof, as any of the foregoing has been or may from time to time be amended,
renewed, supplemented or otherwise modified at the option of the parties thereto (in whole or in part, and without limitation as to amount, terms, conditions, covenants and other provisions) and to add any Subsidiary as an additional direct obligor
thereunder. 
 “Third Supplemental Indenture” means this Third Supplemental Indenture as amended or supplemented from time
to time. 
 “Trading Day” means a day during which: 
 (i) the New York Stock Exchange is open for trading, or if the Common Stock is not listed on the New York Stock Exchange, the principal
U.S. national or regional securities exchange on which the Common Stock is listed is open for trading, or if the Common Stock is not so listed, any Business Day; and 
 (ii) there is no Market Disruption Event. 
 “Trading Price” with respect to a Note on any date of determination means the average of the secondary market bid quotations obtained by the Bid Solicitation Agent for $1,000,000 aggregate principal
amount of Notes at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers selected by the Company; provided that, if only two such bids can reasonably be
obtained, then the average of the two bids shall be used, and if only one such bid can reasonably be obtained, then that one bid shall be used. If the Bid Solicitation Agent cannot reasonably obtain at least one bid for $1,000,000 aggregate
principal amount of Notes, then the Trading Price per $1,000 

  

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principal amount of Notes will be deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Stock and the applicable Conversion
Rate. 
 “Trading Price Condition” has the meaning specified in Section 10.01(2). 
 “Trading Price Measurement Period” has the meaning specified in Section 10.01(2). 
 “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in effect on the date of this Third Supplemental Indenture.

 “Trustee” means the party named as such in this Third Supplemental Indenture until a successor replaces it and,
thereafter, means the successor. 
 “Underwriters” means Credit Suisse Securities (USA) LLC, Banc of America Securities LLC
and J.P. Morgan Securities Inc. (each, an “Underwriter”). 
 “Underwriting Agreement” means the
Underwriting Agreement, dated as of September 24, 2007, entered into by the Company, the Guarantors and the Underwriters in connection with the sale of the Notes. 
 “Valuation Period” has the meaning specified in Section 10.04(c). 
 “Voting
Stock” means with respect to any Person, securities of any class of Capital Stock of such Person entitling the holders thereof (whether at all times or only so long as no senior class of stock has voting power by reason of any contingency)
to vote in the election of members of the board of directors of such Person. 
 “VWAP” for the Common Stock means, with
respect to any Settlement Period Trading Day during the Settlement Period, the per share volume-weighted average price of the Common Stock as displayed under the heading “Bloomberg VWAP” on Bloomberg page SPF.N <equity> AQR in
respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such Settlement Period Trading Day; or if such volume-weighted average price is unavailable, the market value per share of the Common Stock on such Settlement Period Trading
Day as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained for this purpose by the Company. 
 “Wholly-Owned Subsidiary” means a Subsidiary, all of the Capital Stock (whether or not voting, but exclusive of directors’ qualifying shares) of which is owned by the Company or a Wholly-Owned
Subsidiary. 
  

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 SECTION 1.03. Rules of Construction. In addition to the rules of construction as set forth in
Section 1.04 of the Original Indenture, unless the context otherwise requires, references to the Company and its Subsidiaries on a consolidated basis shall be deemed to include any other Guarantor. 
 ARTICLE 2 
 The Notes 
 SECTION 2.01. Designation, Amount and Issuance of Notes. The Notes shall be designated as “6% Convertible Senior Subordinated Notes due
2012”. The Notes will not exceed the aggregate principal amount of $100,000,000 (or the lesser of (i) $115,000,000 and (ii) $100,000,000 plus the principal amount of Notes to be purchased pursuant to the Underwriters’
over-allotment option pursuant to the Underwriting Agreement). Upon the execution of this Third Supplemental Indenture, or from time to time thereafter, Notes may be executed by the Company and delivered to the Trustee for authentication. The Notes
and the Guarantees are pari passu with the Existing Senior Subordinated Notes (and its guarantees). 
 SECTION 2.02. Form of
the Notes. The Notes, the Trustee’s certificate of authentication to be borne by such Notes and the Guarantee shall be substantially in the form set forth in Exhibit A hereto. The terms and provisions attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Third Supplemental Indenture and, to the extent applicable, the Company, the Guarantors and the Trustee, by their execution and delivery of this Third Supplemental Indenture, expressly agree
to such terms and provisions and to be bound thereby. In the event of any inconsistency between the terms of the Notes and the terms of the Indenture, the terms of the Indenture shall control. 
 So long as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, all of the Notes will be
represented by one or more Notes in global form registered in the name of the Depositary or the nominee of the Depositary (“Global Notes”). The transfer and exchange of beneficial interests in any such Global Notes shall be effected
through the Depositary in accordance with the Indenture and the applicable procedures of the Depositary. Except as set forth in the Original Indenture, beneficial owners of a Global Note shall not be entitled to have certificates registered in their
names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will 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 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 the Indenture. Payment of principal of, interest on and premium, if any, on any Global Notes shall be made to the Depositary in immediately available funds. 
  

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 SECTION 2.03. Conversion. The Notes shall be convertible in accordance with the provisions
set forth in the Notes and this Third Supplemental Indenture, including Article 10 hereof. 
 SECTION 2.04. Date and Denomination of
Notes; Payment at Maturity; Payment of Interest. 
 (a) Date and Denomination. The Notes shall be issuable in registered form
without 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 form of Notes attached as Exhibit
A hereto. 
 (b) Payment at Maturity. The Notes shall mature on October 1, 2012, unless earlier converted or repurchased in
accordance with the provisions hereof. On the Maturity Date, each Holder shall be entitled to receive on such date $1,000 in cash for each $1,000 principal amount of Notes, together with accrued and unpaid interest to, but not including, the
Maturity Date. With respect to Global Notes, principal and interest will be paid to the Depositary in immediately available funds. With respect to any certificated Notes, principal and interest will be payable at the Company’s office or agency
in New York City, which initially will be the office or agency of the Trustee located at c/o The Bank of New York, 101 Barclay Street, New York, NY 10286, Attention: Trust Services Window. 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 on the Notes for the intervening period. 
 (c) Payment
of Interest. Interest on the Notes will accrue at the rate of 6.0% per annum, from September 28, 2007 until the principal thereof is paid or made available for payment. Interest shall be payable on April 1 and October 1 of
each year (each, an “Interest Payment Date”), commencing April 1, 2008, to the Person in whose name any Note is registered on the Register at the close of business on any Regular Record Date with respect to the applicable
Interest Payment Date. Except as provided in this Section 2.04(c), upon conversion of Notes pursuant to Article 10, Holders shall not receive any additional cash payment or shares of Common Stock for accrued and unpaid interest on the Notes.
Upon conversion, accrued and unpaid interest to the Conversion Date is deemed to be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding the foregoing, a Holder of Notes as of a Regular Record Date that are converted after
the close of business on such Record Date and prior to the applicable Interest Payment Date shall receive interest on the principal amount of such Notes, notwithstanding the conversion of such Notes prior to such Interest Payment Date. Any Notes or
portion thereof surrendered for conversion after the close of business on the Regular Record Date for an Interest Payment Date but prior to the applicable Interest Payment Date shall be accompanied by payment, in immediately available funds or other
funds acceptable to the Company, of an amount equal to the interest otherwise payable on such Interest Payment Date on the principal amount being converted; provided that no such payment need be made: 
 (i) with respect to conversions after the close of business on September 15, 2012; 
  

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 (ii) if the Company has specified a Fundamental Change Repurchase Date pursuant to
Section 10.01(3)(B) that is after a Regular Record Date but on or prior to the first Scheduled Trading Day immediately succeeding the related Interest Payment Date; or 
 (iii) with respect to any overdue interest, if overdue interest exists at the time of conversion with respect to such Notes. 

Interest on the Notes will be computed on the basis of a three-hundred sixty (360)-day year comprised of twelve (12) thirty (30)-day months.

 The Company shall pay interest on: 
 (i) any Global Notes by wire transfer of immediately available funds to the account of the Depositary or its nominee; 
 (ii) any Notes in certificated form having a principal amount of less than $5,000,000, by check mailed to the address of the Person entitled thereto as it appears in the Register; and 
 (iii) any Notes in certificated form having a principal amount of $5,000,000 or more, by wire transfer in immediately available funds at
the election of the Holder duly delivered to the trustee at least five (5) Business Days prior to the relevant Interest Payment Date. 
 If an Interest Payment Date is not a Business Day, payment shall instead be made on the next succeeding Business Day, and no additional interest shall accrue on the Notes for the intervening period. 
 SECTION 2.05. Registrar and Paying Agent. The Registrar shall keep a register of the Notes (the “Register”) and of their
transfer and exchange. 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, (iii) Conversion Agent and (iv) Bid
Solicitation Agent. 
 SECTION 2.06. Exchange and Registration of Transfer of Notes. 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. 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. 
  

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 ARTICLE 3 
 Repurchase of Notes 
 SECTION 3.01. Repurchase at Option of Holders Upon a Fundamental
Change. (a) If there shall occur a Fundamental Change at any time prior to the Maturity Date, then each Holder of Notes shall have the right, at such Holder’s option, to require the Company to repurchase all of such Holder’s Notes
for cash, or any portion of the principal amount thereof that is equal to $1,000 or an integral multiple thereof, on the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not less than twenty
(20) Business Days and not more than thirty-five (35) Business Days after the date of the Fundamental Change Company Notice at a repurchase price equal to 100% of the principal amount thereof, together with accrued and unpaid interest
thereon to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”), except as set forth in the next sentence. If such Fundamental Change Repurchase Date falls after a Regular Record Date
and on or prior to the corresponding Interest Payment Date, the Company shall instead pay the principal amount to the Holders surrendering the Notes for repurchase pursuant to this Section 3.01, and pay the full amount of accrued and unpaid
interest payable on such Interest Payment Date to the Holder on the close of business on the corresponding Regular Record Date. Repurchases of Notes under this Section 3.01 shall be made, at the option of the Holder thereof, upon: 

(1) delivery to the Paying Agent by a Holder of a duly completed notice (the “Fundamental Change Repurchase Notice”)
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 Paying Agent prior to the Fundamental Change Repurchase Expiration Time
(together with all necessary endorsements) at the Corporate Trust Office of the 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 Note so delivered to the Paying Agent shall conform in all respects to the description thereof in the related Fundamental Change Repurchase Notice. 
 The Fundamental Change Repurchase Notice shall state: 
 (i) the certificate numbers, if any, of Notes to be tendered for repurchase, or the information required by the procedures of the Depositary if the Notes in respect of which such Fundamental Change Repurchase Notice
is being submitted is represented by a Global Note; 
 (ii) the portion of the principal amount of the Notes to be
repurchased, which must be $1,000 or an integral multiple thereof; and 
 (iii) that the Notes are to be repurchased by the
Company pursuant to the applicable provisions of the Notes and the Indenture. 
  

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 Any purchase by the Company contemplated pursuant to the provisions of this Section 3.01 shall be
consummated by the delivery of the consideration to be received by the Holder promptly following the later of the Fundamental Change Repurchase Date and the time of the book-entry transfer or delivery of the Notes. 
 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 Paying Agent the Fundamental Change Repurchase Notice contemplated by this Section 3.01 shall have the right to withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the Fundamental
Change Repurchase Expiration Time by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.02 below. 
 The 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 fifteenth (15th) calendar day after the occurrence of a Fundamental Change, the Company shall provide or cause to be provided to all Holders a notice (the “Fundamental Change Company Notice”) of the occurrence
of the Fundamental Change and of the repurchase right at the option of the Holders arising as a result thereof. The Company shall provide the Fundamental Change Company Notice to the Trustee, the Paying Agent and the Conversion Agent. Simultaneously
with the provision of the Fundamental Change Company Notice, the Company shall issue a press release containing such information and publish such information on the Company’s website. 
 Each Fundamental Change Company Notice shall specify: 
 (i) the events causing the Fundamental Change; 
 (ii) the date of the Fundamental Change;

 (iii) the last date on which a Holder may exercise the repurchase right; 
 (iv) the Fundamental Change Repurchase Price; 
 (v) the Fundamental Change Repurchase Date; 
 (vi) the name and address of the Paying Agent and the Conversion Agent, if applicable; 
 (vii) that the Notes are eligible to be converted, the applicable Conversion Rate and any adjustments to the applicable Conversion Rate resulting from such Fundamental Change transaction; 
 (viii) that the Notes with respect to which a Fundamental Change Repurchase Notice has been delivered by a Holder may be converted only if
the Holder withdraws the Fundamental Change Repurchase Notice in accordance with the terms of the Indenture; 
  

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 (ix) that the Holder must exercise the repurchase right by the Fundamental Change
Repurchase Expiration Time; 
 (x) that the Holder shall have the right to withdraw any Notes tendered prior to the
Fundamental Change Repurchase Expiration Time; 
 (xi) the CUSIP number of the Notes; and 
 (xii) the procedures that Holders must follow to require the Company to repurchase their Notes. 
 No failure of the Company to give the foregoing notices and no defect therein shall limit the repurchase rights of Holders of the Notes 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 there has occurred and is continuing an Event of Default other than an Event of Default that is cured by the payment of the Fundamental Change Repurchase Price of
the 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 Corporate Trust Office of the Paying Agent in accordance with the Fundamental Change Repurchase Notice at any time prior to the Fundamental Change Repurchase Expiration Time,
specifying: 
 (1) the certificate number, if any, of the Note in respect of which such notice of withdrawal is being
submitted, or the information required by the procedures of the Depositary if the Note in respect of which such notice of withdrawal is being submitted is represented by a Global Note; 
 (2) the principal amount of the Note with respect to which such notice of withdrawal is being submitted; and 
 (3) the principal amount, if any, of such Note 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 10:00 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 Subsidiary of the Company is acting as the Paying Agent, shall segregate and hold in trust as
provided in Section 2.04 of the Original Indenture, an amount of cash (in immediately available funds if deposited on the Fundamental Change Repurchase Date) 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. 
  

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 If on the Fundamental Change Repurchase Date the Paying Agent holds 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, on the Fundamental Change Repurchase Date, such Notes will cease to be outstanding, interest
will cease to accrue and all other rights of the Holders of such Notes will terminate, other than the right to receive the Fundamental Change Repurchase Price and previously accrued and unpaid interest upon delivery or book-entry transfer of the
Notes. This will be the case whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Paying Agent. 
 SECTION 3.04. Notes Repurchased in Part. Upon presentation of any Notes repurchased only in part, the Company shall execute, the Guarantors shall endorse and the Trustee shall authenticate and make available for delivery to the
Holder thereof, at the request of such Holder, 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. The Company will, to the extent applicable, comply with the
provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act that may be applicable at the time of the offer to repurchase the Notes, file the related Schedule TO or any other schedule required in connection with any offer by the
Company to repurchase the Notes and comply with all other federal and state securities laws in connection with any offer by the Company to repurchase the Notes. 
 ARTICLE 4 
 Covenants 
 SECTION 4.01. Reports. 
 (a) The Company shall deliver to the Trustee, within fifteen
(15) calendar days after it would have been required to file them with the SEC, copies of the Company’s annual reports on Form 10-K 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) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. In the event the Company is at any time no longer subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, the Company shall continue to provide the Trustee with reports containing substantially the same information as would have been required to be filed with the SEC had it continued to have been subject to
such reporting requirements. In such event, such reports shall be provided within fifteen (15) calendar days after the times the Company would have been required to provide reports had the Company continued to have been subject to such
reporting requirements. The Company also shall comply with the other provisions of Section 314(a) of the Trust Indenture Act. For purposes of this Section 4.01(a), in 

  

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each case the delivery of materials to the Trustee by electronic means or filing of documents pursuant to the Commission’s “EDGAR” system (or
any successor electronic filing system) shall be deemed to constitute “delivery” to the Trustee. 
 (b) 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 the 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 informed otherwise. 
 SECTION 4.02. Further Instruments and Acts. Upon request of the Trustee, the
Company shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of the Indenture. 
 SECTION 4.03. Additional Interest. If Additional Interest is payable by the Company or the Guarantors, the Company or the Guarantors shall
deliver to the Trustee an Officers’ Certificate to that effect stating (i) the amount of such Additional Interest and (ii) the date on which such Additional Interest is payable. Unless and until a Trust Officer of the Trustee receives
such a certificate, the Trustee may assume without inquiry that no Additional Interest is payable. 
 SECTION 4.04. Statement by
Officer as to Default. The Company shall deliver to the Trustee, promptly and in any event within thirty (30) calendar days after the Company becomes 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 which the Company proposes to take with respect thereto. Except with respect to receipt of Note payments and any Default or Event of Default information
contained in the Officers’ Certificate delivered pursuant to this Section 4.04, the Trustee shall have no duty to review, ascertain or confirm the Company’s compliance with, or breach of any representation, warranty or covenant made
in the Indenture. 
 SECTION 4.05. Waiver of Stay, Extension or Usury Laws. The Company and each Guarantors 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 or the
Guarantor 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 and each Guarantor (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted. 
  

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 ARTICLE 5 
 Successor Company 
 SECTION 5.01. When Company May Merge or Transfer Assets. The Company
shall not consolidate with or merge with or into, or sell, convey, transfer or lease all or substantially all of its properties and assets to, another Person, unless: 
 (a) either (i) the Company is the surviving corporation, or (ii) if the Company is not the surviving corporation, the resulting, surviving or transferee Person (the “Successor Company”) is a
corporation or limited liability company organized and existing under the laws of the United States, any State thereof or the District of Columbia and such Person expressly assumes, by a supplemental indenture in a form reasonably satisfactory to
the Trustee, all of the Company’s obligations under the Notes and the Indenture; 
 (b) immediately after giving effect to the
transaction described above, no Default or Event of Default, has occurred and is continuing; 
 (c) if as a result of such transaction, the
Notes become convertible into common stock or other securities issued by a third party, such third party fully and unconditionally guarantees all obligations of the Company or the Successor Company, as applicable, under the Notes and the Indenture;
and 
 (d) 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 consolidation, merger, sale, conveyance, transfer or lease in
which the Company is not the surviving corporation 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 the Indenture to be performed or satisfied by the Company, such Successor Company
shall succeed to, and be substituted for, and may exercise every right and power of, the Company, with the same effect as if it had been named herein as the party of this first part, and Standard Pacific Corp. shall be discharged from its
obligations under the Notes and the Indenture. Such Successor Company thereupon may cause to be signed, and may issue either in its own name or in the name of Standard Pacific Corp. any or all of the Notes, issuable hereunder that theretofore shall
not have been signed by the Company and delivered to the Trustee; and, upon the order of such Successor Company instead of the Company and subject to all the terms, conditions and limitations in the Indenture prescribed, the Trustee shall
authenticate and shall deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by the officers of the Company to the Trustee for authentication, and any Notes that such Successor Company
thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same legal rank and benefit under the Indenture as the Notes theretofore or thereafter issued in accordance
with the terms of the Indenture as though all of such Notes had been issued at the date of the execution hereof. In the 
  

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event of any such consolidation, merger, sale, conveyance, transfer or lease, upon compliance with this Article 5 the Person named as the “Company”
in the first paragraph of the Indenture or any successor that shall thereafter have become such in the manner prescribed in this Article 5 may be dissolved, wound up and liquidated at any time thereafter and such Person shall be discharged from its
liabilities as obligor and maker of the Notes and from its obligations under the 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, sale,
conveyance, transfer or lease and any such assumption complies with the provisions of this Article 5. 
 ARTICLE 6 
 Defaults and Remedies 
 SECTION
6.01. Events of Default. An “Event of Default” occurs if: 
 (a) the Company defaults in any payment of interest
on any Note when the same becomes due and payable and such default continues for a period of thirty (30) calendar days; 
 (b) the
Company defaults in the payment of the principal of any Note when the same becomes due and payable at its maturity, upon required repurchase, upon declaration or otherwise; 
 (c) the Company fails to deliver Common Stock, cash or a combination of the foregoing, as required pursuant to Article 10 upon the conversion of any
Notes, and such failure continues for five (5) calendar days following the scheduled settlement date for such conversion; 
 (d) the
Company fails to comply with its obligations under Article 5; 
 (e) the Company fails to provide notice of the anticipated effective date or
actual effective date of a Fundamental Change pursuant to Section 3.01(b) or Section 10.01(3)(B), in each case on a timely basis as required in this Indenture; 
 (f) except as provided in Section 6.03, the Company fails to comply with any term, covenants or agreements contained in the Notes or the Indenture (other than a covenant or agreement a default in whose
performance or whose breach is elsewhere in this Section 6.01 specifically dealt with) and such failure continues for sixty (60) calendar days after the written notice specified below has been received by the Company; 
 (g) default by the Company or any Guarantor in the payment of the principal or interest on any mortgage, agreement or other instrument under which there
may be outstanding, or by which there may be secured or evidenced any debt for money borrowed (other than Non-Recourse Indebtedness) in excess of $25,000,000 (or its foreign currency equivalent) in the 

  

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aggregate of the Company and/or any such Guarantor, whether such debt now exists or shall hereafter be created, resulting in such debt becoming or being
declared due and payable, and such acceleration shall not have been rescinded or annulled within thirty (30) calendar days after the written notice specified below has been received by the Company; 
 (h) a final judgment for the payment of $25,000,000 (or its foreign currency equivalent) or more is rendered against the Company or any Guarantor, which
judgment is not fully covered by insurance or not discharged or stayed within ninety (90) calendar days after (A) the date on which the right to appeal thereof has expired if no such appeal has commenced or (B) the date on which all
rights to appeal have been extinguished; 
 (i) the Company 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; 
 (j) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (1) is for relief against the Company in an involuntary case; 
 (2) appoints a Custodian of the Company or for any substantial part of its property; 
 (3) orders the winding up or liquidation of the Company; 
 (4) or any similar relief is granted under any foreign laws; 
 and in each case, the order or decree remains unstayed and in effect for sixty (60) calendar days; 
 (k)
except as permitted by the Indenture, any Guarantee shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or any Guarantor, or any Person acting on behalf of any
Guarantor, shall deny or disaffirm its obligations under its Guarantee. 
 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.

  

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 The term “Bankruptcy Law” means Title 11, United States Code, or any similar
Federal or state law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
 A Default under clause (f) or (g) of this Section 6.01 is not an Event of Default until the Trustee or the Holders of at least 25% in
principal amount of the outstanding Notes notify the Company of the Default and the Company does not cure such Default within the time specified in clause (f) or (g) of this Section 6.01, as applicable, after receipt of such notice.
Such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default”. 
 The
Trustee may withhold notice to the Noteholders of any Event of Default, except a Default in payment of principal or any premium or interest with respect to the Notes, if the Trustee considers it in the interest of the Noteholders to do so.

 SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default specified in Section 6.01(i) or
(j) with respect to the Company) has occurred and is continuing, the Trustee by notice to the Company, or the Noteholders of at least 25% in principal amount of the Notes then outstanding by notice to the Company and the Trustee, may declare
the principal of and accrued but unpaid interest on all the Notes to be due and payable. Upon such a declaration, such principal and interest shall be due and payable immediately. If an Event of Default specified in Section 6.01(i) or
(j) with respect to the Company occurs, the principal of and accrued and unpaid interest on all the Notes shall become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee and the Company or
any Noteholders. 
 The Holders of a majority in principal amount of the Notes then outstanding by written notice to the Trustee and the
Company may: 
 (a) waive any Default or Event of Default (other than any continuing Default or Event of Default in payment of principal or
interest) with respect to such Notes under the Indenture; and 
 (b) rescind an acceleration with respect to such Notes and its consequences
(except an acceleration due to nonpayment of principal or interest on such Notes) if the rescission would not conflict with any judgment or decree and if all existing Events of Default (other than non-payment of accelerated principal and premium, if
any, with respect to such Notes) have been cured or waived. 
 No such waiver or rescission shall affect any subsequent Event of Default or
impair any right or power consequent thereon. 
  

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 The provisions of Sections 6.01 and 6.02 of this Third Supplemental Indenture shall supercede and
replace, respectively, the provisions of Sections 6.01 and 6.02 of the Original Indenture for purposes of the Notes. 
 SECTION 6.03. Failure to Comply with Reporting Covenant. Notwithstanding anything to
the contrary in the Indenture, at the Company’s election, the sole remedy for an Event of Default relating to the Company’s failure to comply with Section 4.01(a) shall, for the 210 days after the occurrence of such an Event of
Default, consist exclusively of the right to receive additional interest (“Additional Interest”) on the Notes at an annual rate equal to (i) 0.25% of the principal amount of the Notes for the first one-hundred twenty
(120) days following the occurrence of such Event of Default and (ii) 0.50% of the principal amount of the Notes for the next ninety (90) days after the one-hundred twenty (120) days following the occurrence of such Event of
Default. Additional Interest will be payable in the same manner and on the same Interest Payment Dates as the stated interest payable on the Notes. If the Company so elects, Additional Interest will accrue on all outstanding Notes from, and
including, the date on which an Event of Default relating to a failure by the Company to comply with Section 4.01(a) first occurs to, but not including, the two-hundred tenth (210th) day thereafter (or such earlier date on which the Event of Default relating to the Company’s obligations pursuant to Section 4.01(a) shall have been cured or waived). On such two-hundred tenth
(210th) day (or earlier, if an Event of Default relating to the Company’s obligations pursuant to Section 4.01(a) is cured or waived prior
to such two-hundred tenth (210th) day), such Additional Interest shall cease to accrue and the Notes will be subject to acceleration as provided in
Section 6.02 if such Event of Default is continuing. The provisions described in this paragraph shall not affect the rights of the Holders of Notes in the event of an occurrence of any other Event of Default. 
 In order to elect to pay Additional Interest as the sole remedy during the first 210 days after
the occurrence of an Event of Default relating to the Company’s failure to comply with Section 4.01(a), the Company must notify all Noteholders and the Trustee and Paying Agent of such election on or before the close of business on the
date on which such Event of Default occurs, which shall be the sixtieth (60th) day after receipt by the Company of the written notice specified in
Section 6.01. 
 ARTICLE 7 
 Guarantee of the Notes 
 SECTION 7.01. Unconditional Guarantees. Each Guarantor hereby unconditionally, jointly
and severally, and irrevocably guarantees (each such guarantee to be referred to herein as a Guarantee) to each Holder and its successors and assigns, that: (i) the principal of, interest on and the Conversion Obligation (but only to the extent
payable in cash or property other than Capital Stock of the Company), if any, with respect to the Notes will be promptly paid in full when due, subject to any applicable grace period, whether at maturity, upon conversion or repurchase, by
acceleration or otherwise and interest on the overdue principal, if any, and interest on any interest of the Notes and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder, will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (ii) in case of any extension of time of payment or renewal of any Notes or of any such other obligations, the same will be promptly 
  

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paid in full when due or performed in accordance with the terms of the extension or renewal, subject to any applicable grace period, whether at stated
maturity, by acceleration or otherwise, subject, however, to the limitations set forth in Section 7.04. Each Guarantor hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event
of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that, subject to Section 7.03, this Guarantee will not be discharged except by
complete performance of the obligations of the Company contained in the Notes and the Indenture with respect to the Notes. If any Holder or the Trustee is required by any court or otherwise to return to the Company, any Guarantor, or any custodian,
trustee, liquidator or other similar official acting in relation to the Company or any Guarantor, any amount paid by the Company or any Guarantor to the Trustee or such Holder, this Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect. Each Guarantor further agrees that, as between each Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as
provided in the Indenture for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any acceleration of
such obligations as provided in the Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by each Guarantor for the purpose of this Guarantee. 
 SECTION 7.02. Severability. In case any provision of the Guarantee shall be invalid, illegal or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 7.03. Release of a
Guarantor; Termination of Guarantee. All Subsidiaries that from time to time guarantee the Existing Senior Notes or Existing Senior Subordinated Notes shall be Guarantors hereunder. A Guarantor shall be automatically released and discharged from
all its obligations under its Guarantee and the Indenture when it ceases to be a guarantor of our Existing Senior Notes and Existing Senior Subordinated Notes. 
 Upon the sale or disposition (whether by merger, stock purchase, asset sale or otherwise) of a Guarantor (or all or substantially all its assets or its Capital Stock) to an entity which is not (after giving effect to
such transaction) the Company or another Guarantor, and which sale or disposition is otherwise in compliance with the terms of the Indenture, such Guarantor shall be deemed automatically and unconditionally released and discharged from all the
Guarantor’s obligations under the Guarantee with respect to any Notes without any further action required on the part of the Guarantor, the Company, the Trustee or any Holder. In the event of a transfer of all or substantially all of the assets
or Capital Stock of such Guarantor, the Person acquiring such assets or stock of such Guarantor shall not be subject to the Guarantor’s obligations under the Guarantee with respect to any Notes. 
  

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 The Guarantee with respect to any Notes shall terminate and be of no further force or effect upon the
redemption in full, conversion, retirement or other discharge of such Note. 
 The Trustee shall deliver an appropriate instrument evidencing
any such release upon receipt of a request by the Company accompanied by an Officers’ Certificate and Opinion of Counsel certifying as to the compliance with this Section 7.03. 
 Any Guarantor not released in accordance with this Section 7.03 remains liable for the full amount of principal of and interest on the Notes as
provided in this Article 7. 
 SECTION 7.04. Limitation of a Guarantor’s Liability. Notwithstanding anything contained
herein to the contrary, it is the intention of the parties that the guarantee by each Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act,
the Uniform Fraudulent Transfer Act or any similar Federal or state law. To effectuate the foregoing intention, the parties hereby irrevocably agree that the obligations of each Guarantor under its Guarantee of the Notes shall be limited to the
maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Guarantor (and after giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of
such other Guarantor under its Guarantee or pursuant to Section 7.06), result in the obligations of such Guarantor under its Guarantee not constituting such fraudulent transfer or conveyance. 
 SECTION 7.05. [Intentionally omitted]. 
 SECTION 7.06. Contribution. In order to provide for just and equitable contribution among the Guarantors, the Guarantors agree, inter se, that in the event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under its Guarantee with respect to the Notes, such Funding Guarantor shall be entitled to a contribution from all other Guarantors in a pro rata amount based on the Adjusted Net Assets of each Guarantor (including the Funding
Guarantor) for all payments, damages and expenses incurred by that Funding Guarantor in discharging the Company’s obligations with respect to any Notes or any other Guarantor’s obligations with respect to the Guarantee of the Notes.
“Adjusted Net Assets” of such Guarantor at any date shall mean the lesser of the amount by which (x) the fair value of the property of such Guarantor exceeds the total amount of liabilities, including contingent liabilities
(after giving effect to all other fixed and contingent liabilities incurred or assumed on such date and after giving effect to any collection from any other Subsidiary of the Guarantor in respect of the obligations of its Guarantee of the Notes),
but excluding liabilities under the Guarantee of the Notes, of such Guarantor at such date and (y) the present fair salable value of the assets of such Guarantor at such date exceeds the amount that will be required to pay the probable
liability of such Guarantor on its debts (after giving effect to all other fixed and contingent liabilities incurred or assumed on such date and after giving effect to any collection from any other Guarantor in respect of the obligations of such
Guarantor under its Guarantee of the Notes), excluding debt in respect of the Guarantee of the Notes of such Guarantor, as they become absolute and matured. 
  

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 SECTION 7.07. Waiver of Subrogation. Until all guaranteed obligations under the Indenture and
with respect to all Notes are paid in full, each Guarantor hereby irrevocably waives any claim or other rights which it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of such
Guarantor’s obligations under the Guarantee of the Notes and the Indenture, including any right of subrogation, reimbursement, exoneration, indemnification, and any right to participate in any claim or remedy of any Holder against the Company,
whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including the right to take or receive from the Company, directly or indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and the Notes shall not have been paid in full, such amount shall have been deemed to have been paid to
such Guarantor for the benefit of, and held in trust for the benefit of, the Holders, and shall forthwith be paid to the Trustee for the benefit of such Holders to be credited and applied upon the Notes, whether matured or unmatured, in accordance
with the terms of the Indenture. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and that the waiver set forth in this Section 7.07 is knowingly made in
contemplation of such benefits. 
 SECTION 7.08. Execution of Guarantee. To evidence their guarantee to the Holders, the
Guarantors hereby agree to execute the Guarantee in substantially the form included in Exhibit A. Each Guarantor hereby agrees that its Guarantee set forth in this Article 7 shall remain in full force and effect notwithstanding any failure to
endorse on each Note a notation of such Guarantee. Such signatures upon the Guarantee may be by manual or facsimile signature of such officers and may be imprinted or otherwise reproduced on the Guarantee. 
 SECTION 7.09. Subordination of Guarantee. The Obligations of each Guarantor under its Guarantee with respect to the Notes are subordinated in
right of payment to the Obligations of each Guarantor under its Guarantor Senior Indebtedness in the same manner and to the same extent that the Notes are subordinated to Senior Indebtedness of the Company pursuant to Article 11 of the Original
Indenture. 
 SECTION 7.10. Compensation and Indemnity. Each of the Guarantors agrees to jointly and severally, with the Company,
indemnify the Trustee as set forth in Section 7.07 of the Original Indenture. 
 ARTICLE 8 
 Discharge of Indenture 
 SECTION
8.01. Discharge of Company’s and Guarantor’s Liability on Notes. (a) Article 8 of the Original Indenture shall not apply to the Notes. 
 (b) When (i) the Company delivers to the Trustee all outstanding Notes (other than Notes replaced or paid pursuant to Section 2.07 of the Original Indenture) for cancellation or (ii) all outstanding
Notes have become due and payable, whether at maturity or upon a repurchase pursuant to Article 3 hereof, and the Company irrevocably deposits with the Trustee 

  

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money sufficient to pay at maturity or upon repurchase all outstanding Notes, including interest thereon to maturity or such repurchase date (other than
Notes replaced pursuant to Section 2.07 of the Original Indenture), and any shares of Common Stock, cash or a combination of cash and shares of Common Stock or other property due in respect of converted Notes, and if in each such case the
Company pays all other sums payable hereunder by the Company, then the Indenture shall, subject to Section 8.01(c), cease to be of further effect. The Trustee shall acknowledge satisfaction and discharge of the Indenture on demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Company. 
 (c)
Notwithstanding clause (b) above, the Company’s and each of Guarantor’s obligations in Sections 2.05 and 2.06 of this Third Supplemental Indenture, Sections 2.04, 2.05, 2.07 and 2.09 of the Original Indenture, this Article 8 and
Sections 7.07 and 7.08 of the Original Indenture shall survive until the Notes have been paid in full. Thereafter, the Company’s and each of Guarantor’s obligations in Section 7.07 of the Original Indenture and Sections 8.03 and 8.04
of this Third Supplemental Indenture shall survive. 
 SECTION 8.02. Application of Trust Money. The Trustee shall hold in trust
money and any shares of Common Stock or other property due in respect of converted Notes deposited with it pursuant to this Article 8. It shall apply the deposited money through the Paying Agent and in accordance with the Indenture to the payment of
principal of and interest on the Notes or, in the case of any shares of Common Stock or other property due in respect of converted Notes, in accordance with the Indenture in relation to the conversion of Notes pursuant to the terms hereof.

 SECTION 8.03. Repayment to Company. The Trustee and the Paying Agent shall promptly turn over to the Company upon request any
excess money or securities held by them at any time. 
 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,
Noteholders entitled to the money and/or securities must look to the Company for payment as general creditors unless applicable abandoned property law designates another Person. 
 SECTION 8.04. Reinstatement. If the Trustee or Paying Agent is unable to apply any money or to deliver any shares of Common Stock or other
property due in respect of converted Notes 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 and each Guarantor’s obligations under the 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 and any shares of Common Stock or other property due in respect of converted Notes in accordance with this Article 8; provided, however, that (a) if the Company or the Guarantors have made any payment of
interest on or principal of any Notes because of the reinstatement of its obligations, the Company and the Guarantor shall be subrogated to the rights of the Noteholders to receive such payment from the money held by the Trustee or Paying Agent

  

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and (b) unless otherwise required by any legal proceeding or any order or judgment of any court or governmental authority, the Trustee shall return all
such money, shares of Common Stock or property to the Company promptly after receiving a written request therefor at any time, if such reinstatement of the Company’s obligations has occurred and continued to be in effect. 
 ARTICLE 9 
 Amendments 
 SECTION 9.01. Without Consent of Noteholders. The Company and the Trustee may amend the Notes or the Indenture as it relates to the Notes
without notice to or consent of any Noteholder: 
 (a) to add to the covenants, agreements and obligations of the Company for
the benefit of the Noteholders (including pursuant to Section 10.05) or to surrender any right or power conferred in the Indenture upon the Company; 
 (b) to evidence the succession of another corporation or limited liability company to the Company and the assumption by it of the obligations of the Company under the Indenture and the Notes; 
 (c) to provide for the acceptance of appointment under the Indenture of a successor Trustee with respect to the Notes and to add to or
change any provision of the Indenture as shall be necessary to provide for or facilitate the administration of the trusts created pursuant to the Indenture by more than one Trustee; 
 (d) to establish the form or terms of a Series of Securities as permitted by Section 2.01 of the Original Indenture; 
 (e) to provide that specific provisions of the Indenture shall not apply to a Series of Securities not previously issued; 
 (f) to provide for uncertificated Notes in addition to or in place of certificated Notes; 
 (g) to cure any ambiguity, omission, defect or inconsistency; 
 (h) to secure the Notes, provide additional guarantees and release the Guarantors in accordance with Section 7.03; 
 (i) to conform the Indenture to any provision as set forth under the caption “Description of Notes” in the Company’s
Prospectus Supplement dated September 24, 2007 relating to the public offering of the Notes; or 
 (j) to make any change
that does not materially adversely affect the legal rights of any Noteholder. 
  

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 After an amendment under this Section becomes effective, the Company shall provide to Noteholders a
notice briefly describing such amendment. The failure to give such notice to all such Noteholders, or any defect therein, shall not impair or affect the validity of an amendment under this Section. 
 SECTION 9.02. With Consent of Noteholders. The Company and the Trustee may amend the Indenture or the Notes with the written consent of the
Holders of at least a majority in principal amount of the Notes then outstanding (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Notes), without notice to any other Noteholder. The Holders of
a majority in principal amount of the Notes then outstanding may waive compliance by the Company with any provision of the Notes or of the Indenture relating to such Notes (other than any continuing Event of Default in payment of interest or
principal amount of the Notes) without notice to any Noteholders. Without the consent of each Noteholder affected, however, an amendment, supplement or waiver, including a waiver pursuant to Section 6.04 of the Original Indenture, may not:

 (a) reduce the principal amount of Notes whose Noteholders must consent to an amendment or supplement or waive any past
Default; 
 (b) reduce the rate of or change the time for payment of interest, including defaulted interest, on any Note;

 (c) make any change that impairs or adversely affect the right of a Holder to convert any Notes; 
 (d) reduce the amount payable in relation to the required repurchase of any Notes upon a Fundamental Change or change the time at which
any Holder may require any Note to be repurchased by the Company in accordance with Article 3, or amend or modify in any manner adverse to the Holders the Company’s obligation to make such payments, whether through an amendment or waiver of
provisions in the covenants, definitions or otherwise; 
 (e) reduce the principal of or extend the Maturity Date of any Note;

 (f) make any Note payable in money other than that stated in such Note; 
 (g) make any change in Sections 6.02 or 9.02 of this Third Supplemental Indenture or Sections 6.04 or 6.07 of the Original Indenture;

 (h) adversely modify the ranking or priority of the Notes; or 
 (i) waive a continuing Default or Event of Default in the payment of the principal of or interest on any Notes. 
 It shall not be necessary for the consent of the Noteholders under this Section to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof. 
  

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 After an amendment under this Section becomes effective, the Company shall provide to Noteholders a
notice briefly describing such amendment. The failure to give such notice to all Noteholders, or any defect therein, shall not impair or affect the validity of an amendment under this Section. 
 The provisions of Sections 9.01 and 9.02 of this Third Supplemental Indenture shall supersede and replace the provisions, respectively, of Sections 9.01
and 9.02 of the Original Indenture for purposes of the Notes. 
 The right of any Holder to participate in any consent required or sought
pursuant to any provision of the Indenture, and the obligation of the Company to obtain any consent otherwise required from that Holder, may be subject to the requirement that the Holder shall have been the Holder of record of Notes with respect to
which the consent is required or sought as of a date identified by the Trustee in a notice furnished to Holders in accordance with the Indenture. 
 ARTICLE 10 
 Conversion of Notes 
 SECTION 10.01. Right to Convert. Upon compliance with the provisions of this Article 10, a Holder shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be
converted is $1,000 principal amount or multiple thereof) of such Notes, at any time prior to the close of business on the second Scheduled Trading Day immediately preceding the Maturity Date at an initial conversion rate (the “Initial
Conversion Rate”) of 114.2857 shares of the Common Stock (subject to adjustments as provided in Sections 10.03 and 10.04 of this Third Supplemental Indenture, as so adjusted from time to time, the “Conversion Rate”) per
$1,000 principal amount of Notes (the “Conversion Obligation”) only under any of the following circumstances: 
 (1) Conversion Based on Common Stock Price. During any calendar quarter commencing at any time after December 31, 2007 and only during such calendar quarter, if the Last Reported Sale Price for the Common Stock for at least
twenty (20) Trading Days during a period of thirty (30) consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar quarter (the “Stock Price Measurement Period”) is more than 130% of the
applicable Conversion Price in effect on the last Trading Day of such immediately preceding calendar quarter; 
 (2)
Conversion Upon Satisfaction of Trading Price Condition. During the five (5) Business Day period after any ten (10) consecutive Trading Day period (the “Trading Price Measurement 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(2), for each day in the Trading Price Measurement Period was less than 98% of the product of
the Last Reported Sale Price of the Common Stock and the applicable Conversion Rate (such condition, the “Trading Price Condition”). In connection with any conversion in accordance with this Section 10.01(2), the Bid
Solicitation Agent shall have no obligation to determine the Trading 

  

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Price of the Notes unless requested by the Company; and the Company shall have no obligation to make such request unless a Holder provides the Company with
reasonable evidence that the Trading Price per $1,000 principal amount of Notes would be less than 98% of the product of the Last Reported Sale Price of the Common Stock and the applicable Conversion Rate. At such time, the Company shall instruct
the Bid Solicitation Agent to determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the product
of the Last Reported Sale Price of the Common Stock and the applicable Conversion Rate. Whenever the Notes shall become convertible pursuant to this Section 10.01(2) (which shall not be deemed to be the case unless the Bid Solicitation Agent
shall have made that determination), the Company shall notify all Holders, the Trustee and the Conversion Agent promptly and, simultaneously with providing such notice, the Company shall issue a press release containing the relevant information and
make this information available on its website. If, at any time after the Trading Price Condition has been met, the Trading Price per $1,000 principal amount of Notes is greater than 98% of the product of the Last Reported Sale Price of the Common
Stock and the applicable Conversion Rate, the Company shall so notify all Holders, the Trustee and the Conversion Agent. 
 (3) Conversion Upon Specified Distributions to Holders of Common Stock or Specified Corporate Transactions. 
 (A)
Specified Distributions. If the Company elects to: 
 (i) distribute to all or substantially all holders of its Common
Stock rights or warrants entitling them to purchase, for a period expiring within sixty (60) calendar days after the date of the distribution, shares of its Common Stock at a price less than the Last Reported Sale Price of the Common Stock on
the day immediately preceding the declaration date for such distribution; or 
 (ii) distribute to all or substantially all
holders of its Common Stock the Company’s assets, its debt securities or rights or warrants to purchase securities of the Company, which distribution has a per share value (as determined by the Board of Directors) exceeding 10% of the Last
Reported Sale Price of the Common Stock on the day immediately preceding the date of declaration for such distribution, 
 then, in each case,
the Company shall notify all Holders, the Trustee and the Conversion Agent at least thirty-five (35) Scheduled Trading Days prior to the Ex-Dividend Date for such distribution. Simultaneously with providing such notice, the Company shall issue
a press release containing the relevant information and make this information available on its website. Once the Company has given such notice, the Notes may be surrendered for conversion at any time until the earlier of the close of business on the
Business Day immediately prior to such Ex-Dividend Date for such distribution or the Company’s announcement that such distribution will not take place. A Holder may not convert any of its Notes based on this Section 10.01(3) if such Holder
will participate in the distribution without conversion as if the Holder held the full number of shares of Common Stock underlying its Notes; and 
  

 -34- 

 (B) Specified Corporate Transactions.
(i) In the event of a Fundamental Change or a Make-Whole Fundamental Change, or (ii) if the Company is a party to a consolidation, merger, binding share exchange, or transfer or lease of all or substantially all of its assets pursuant to
which the Common Stock would be converted into cash, securities or other assets, in the case of (i) and (ii), a Holder may surrender all or a portion of its Notes for conversion at any time beginning on the thirty-fifth (35th) Scheduled Trading Day prior to the anticipated effective date of such transaction until the close of business on the thirtieth (30th) Scheduled Trading Day after the actual effective date of such transaction or, if such transaction also constitutes a Fundamental Change, the Business
Day immediately preceding the Fundamental Change Repurchase Date corresponding to such Fundamental Change. To the extent practicable, the Company shall notify all Holders, the Trustee and the Conversion Agent of the anticipated occurrence of such
Fundamental Change, Make-Whole Fundamental Change, consolidation, merger, binding share exchange or transfer or lease of all or substantially all of the Company’s assets no later than thirty-five (35) Scheduled Trading Days prior to the
anticipated effective date of such transaction. Simultaneously with providing such notice, the Company shall issue a press release containing the relevant information and make this information available on its website; and 

(4) Conversion During the Period From August 1, 2012 to Maturity. Notwithstanding anything herein to the contrary, a Holder
may surrender all or a portion of its Notes for conversion at any time on or after August 1, 2012 until the close of business on the second Scheduled Trading Day immediately preceding the Maturity Date. 
 SECTION 10.02. Conversion Procedures; Settlement Upon Conversion; No Adjustment for Interest or Dividends; No Fractional Shares. (a) In
order to exercise the conversion right with respect to any Notes in certificated form, a Holder must (A) complete and manually sign an irrevocable 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”), (B) deliver such Conversion Notice and certificated Note to the Conversion Agent at the office of the Conversion Agent, (C) to the extent
any shares of Common Stock issuable upon conversion are to be issued in a name other than the Holder’s, furnish endorsements and transfer documents as may be required by the Conversion Agent, (D) if required pursuant to
Section 10.02(f), pay all transfer or similar taxes or duties and (E) if required pursuant to Section 2.04(c), pay funds equal to interest payable on the next Interest Payment Date. 
 In order to exercise the conversion right with respect to any interest in a Global Note, a Holder must (A) comply with the Depositary’s
procedures for converting a beneficial interest in a Global Note, (B) to the extent any shares of Common Stock issuable upon conversion are to be issued in a name other than the Holder’s, furnish endorsements and transfer documents as may
be required by the Conversion Agent and, if required pursuant to Section 10.02(f), pay all transfer or similar taxes or duties; and (C) if required pursuant to Section 2.04(c), pay funds equal to interest payable on the next Interest
Payment Date. 
  

 -35- 

 The date that the Holder satisfies the foregoing requirements is the “Conversion Date.”

 If a Holder has submitted any Notes for repurchase pursuant to Section 3.01, such Notes may be converted only if the Holder submits a
withdrawal notice in accordance with Section 3.02 prior to the close of business on the Fundamental Change Repurchase Expiration Time, and if such Notes are evidenced by a Global Note, if the Holder complies with appropriate Depositary
procedures. 
 A Holder of Notes is not entitled to any rights of a holder of Common Stock until such Holder has converted its Notes to
Common Stock, and only to the extent such Notes are deemed to have been converted to Common Stock under this Article 10. 
 (b) Except as
provided below, the Company may elect to deliver shares of its Common Stock, cash or a combination of cash and shares of Common Stock in satisfaction of the Company’s Conversion Obligation. 
 The Company shall from time to time make an election with respect to the method it chooses to
satisfy its Conversion Obligation. Such election shall be effective until the Company provides notice of an election of a different method of settlement. The Company may not elect a different method of settlement on or after the thirty-fifth
(35th) Scheduled Trading Day preceding the Maturity Date. As of the date of this Third Supplemental Indenture, the Company elects to settle its
Conversion Obligation by delivering shares of Common Stock. The newly chosen method of settlement shall become effective three (3) Business Days following the date of such election. The Company shall provide to all Noteholders, the Trustee and
the Conversion Agent a notice of the newly chosen method of settlement and the effective date of such newly chosen method. Simultaneously with providing such notice, the Company shall issue a press release containing the relevant information and
make this information available on its website. 
 In addition, the Company may
at any time prior to the 35th Scheduled Trading Day preceding the Maturity Date irrevocably elect to satisfy its Conversion Obligation in a combination of
cash and shares of Common Stock with a Fixed Cash Amount of $1,000 per $1,000 principal amount of the Notes (such settlement method, “Net Share Settlement”). The Company may make such irrevocable election in its sole discretion
without any consent of the Noteholders. If the Company chooses to make this irrevocable election, the Company shall provide notice to all Noteholders, the Trustee and the Conversion Agent. Simultaneously with providing such notice, the Company shall
issue a press release containing the relevant information and make this information available on its website. 
 If the Company elects
to satisfy its Conversion Obligation by delivering a combination of cash and shares of the Common Stock, the Company shall specify in such notice the portion to be paid in cash as the lesser of (a) the Fixed Cash Amount and (b) the
Conversion Value. 
 Settlement (a) in Common Stock only shall occur on the third
(3rd) Trading Day following the final Settlement Period Trading Day of the Settlement Period that would be applicable if settlement were in cash or a
combination of cash and shares of Common Stock, and (b) in cash or in a combination of cash and Common Stock shall occur on the third (3rd) Trading Day following the final Settlement Period Trading Day of the applicable Settlement Period. 
  

 -36- 

 Settlement amounts shall be computed as follows: 
 (1) if the Company elects to satisfy the entire Conversion Obligation in Common Stock only, the Company shall deliver to such Holder, for
each $1,000 principal amount of Notes converted, a number of shares of Common Stock equal to the Conversion Rate in effect on the final Settlement Period Trading Day of the Settlement Period that would be applicable if settlement were in cash or a
combination of cash and shares of Common Stock; 
 (2) if the Company elects to satisfy the entire Conversion Obligation in
cash only, the Company shall deliver to such Holder, for each $1,000 principal amount of Notes converted, cash in an amount equal to the Conversion Value; 
 (3) if the Company elects to satisfy the Conversion Obligation in a combination of cash and Common Stock, the Company shall deliver to such Holder, for each $1,000 principal amount of Notes converted: 
 (i) the fixed dollar amount per $1,000 principal amount of the Notes of the Conversion Obligation to be satisfied in cash specified in the
notice regarding the Company’s chosen method of settlement (the “Fixed Cash Amount”) or, if lower, the Conversion Value in cash; and 
 (ii) a number of shares of Common Stock equal to the sum, for each of the thirty (30) Settlement Period Trading Days in the Settlement Period, of 1/30th of the greater of (A) zero and (B) (a) the
Conversion Rate then in effect minus (b) the quotient of (x) the Fixed Cash Amount divided by (y) the VWAP of the Common Stock on that Settlement Period Trading Day. 
 (c) 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. 
 (d) In case any Note shall be surrendered for partial conversion, the Company shall execute, the Guarantors shall endorse and the Trustee shall
authenticate and deliver to or upon the written order of the Holder of the Note so surrendered, without charge to such Holder, a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the
surrendered Note. 
 (e) 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, and the Trustee shall reflect such reduction on Schedule I to such Global Note. 
 (f) The issue
of stock certificates on conversions of Notes shall be made without charge to the converting Holder for any documentary, stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not, however, be required to pay any
such tax which may be payable in respect of any transfer involved in the issue and delivery of stock in 

  

 -37- 

 
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 stock certificate unless
and until the Person or Persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 
 (g) Upon conversion, accrued and unpaid interest to the Conversion Date with respect to the converted Notes shall be deemed to be paid in full rather
than cancelled, extinguished or forfeited. 
 (h) If the Company’s Conversion Obligation is satisfied in Common Stock or a combination
of cash and Common Stock, the Noteholder that has converted its Notes (or if such Person designated another Person to whom such Common Stock shall be issued and delivered, such Person) shall be treated as a holder of record of such Common Stock as
of the close of business on the final Settlement Period Trading Day of the applicable Settlement Period. 
 (i) No fractional shares of
Common Stock shall be issued upon conversion of any Note or Notes. The number of shares of Common Stock issuable upon the conversion of any Note or Notes shall be rounded down to the next lower whole number. 
 SECTION 10.03. Increased Conversion Rate Applicable to Certain Securities Surrendered in
Connection With Make-Whole Fundamental Changes. If a Holder elects to convert its Notes in connection with a Make-Whole Fundamental Change during the period beginning on the Business Day following the effective date of such Make-Whole
Fundamental Change and ending at the close of business on the thirtieth (30th) Trading Day following the effective date of such Make-Whole Fundamental
Change, the Conversion Rate applicable to each Note that is surrendered for conversion in accordance with this Article 10 shall be increased by an additional number of shares of Common Stock (the “Additional Shares”).

 Any conversion will be deemed to have occurred in connection with such Make-Whole Fundamental Change only if such Notes are
surrendered for conversion at a time when the Notes would be convertible in light of the occurrence of a Make-Whole Fundamental Change and notwithstanding the fact that a Note may then be convertible because another condition to conversion has been
satisfied or no condition to conversion exists. 
 On or before the fifteenth (15th) day after the occurrence of such Make-Whole Fundamental Change that does not also constitute a Fundamental Change, the Company shall mail to the Trustee
and to all Holders at their addresses shown in the Register of the Registrar, and to beneficial owners, as required by applicable law, a notice indicating that a Make-Whole Fundamental Change has occurred. 
 The number of Additional Shares shall be determined by reference to the table below, based on the date on which such Make-Whole Fundamental Change occurs
or becomes effective (the “Effective Date”) and the Stock Price per share of Common Stock. The number of Additional Shares set forth in the table below shall be adjusted in the same manner as and as of the same date or dates on
which the Conversion Rate is adjusted pursuant to this Article 10. The Stock Prices set forth in the first row of the table below (i.e., the column headers) shall be adjusted as of any date on which the Conversion Rate is adjusted to equal the Stock
Prices 

  

 -38- 

 
applicable 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 Stock Price and
number of Additional Shares by which the Conversion Rate shall be increased: 
  

 -39- 

																			
	 	  	Stock Price
	 Effective Date
	  	$7.05	  	$8.50	  	$10.00	  	$12.50	  	$15.00	  	$17.50	  	$20.00	  	$22.50	  	$25.00
	 September 28, 2007
	  	27.5583	  	21.8343	  	17.4372	  	12.9349	  	10.1928	  	8.3435	  	7.0073	  	5.9936	  	5.1968
	 October 1, 2008
	  	27.5583	  	20.0871	  	15.6723	  	11.3663	  	8.8644	  	7.2273	  	6.0655	  	5.1931	  	4.5110
	 October 1, 2009
	  	27.5583	  	17.9096	  	13.3916	  	9.3083	  	7.1188	  	5.7599	  	4.8250	  	4.1346	  	3.5992
	 October 1, 2010
	  	27.5583	  	15.2119	  	10.4075	  	6.5909	  	4.8386	  	3.8605	  	3.2254	  	2.7685	  	2.4176
	 October 1, 2011
	  	27.5583	  	11.4295	  	6.0557	  	2.8151	  	1.8388	  	1.4382	  	1.2076	  	1.0442	  	0.9171
	 October 1, 2012
	  	27.5583	  	3.5258	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000
		
	 	  	Stock Price
	 Effective Date
	  	$27.50	  	$30.00	  	$40.00	  	$50.00	  	$60.00	  	$70.00	  	$80.00	  	$90.00	  	$100.00
	 September 28, 2007
	  	4.5532	  	4.0224	  	2.5902	  	1.7584	  	1.2256	  	0.8637	  	0.6086	  	0.4245	  	0.2899
	 October 1, 2008
	  	3.9614	  	3.5083	  	2.2823	  	1.5637	  	1.0983	  	0.7789	  	0.5517	  	0.3864	  	0.2646
	 October 1, 2009
	  	3.1694	  	2.8154	  	1.8546	  	1.2856	  	0.9123	  	0.6524	  	0.4648	  	0.3267	  	0.2238
	 October 1, 2010
	  	2.1365	  	1.9048	  	1.2731	  	0.8956	  	0.6448	  	0.4671	  	0.3363	  	0.2378	  	0.1629
	 October 1, 2011
	  	0.8140	  	0.7282	  	0.4925	  	0.3511	  	0.2568	  	0.1894	  	0.1389	  	0.0997	  	0.0682
	 October 1, 2012
	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000

 provided, however, that: 
 (1) if the actual Stock Price is between two Stock Prices listed in the table above under the column titled “Stock Price,” or if
the actual Effective Date of such Make-Whole Fundamental Change is between two Effective Dates listed in the table above in the row immediately below the title “Effective Date,” then the number of Additional Shares shall be determined by
the Company by straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Price amounts, and the two Effective Dates, as applicable, based on a 365-day year; 
 (2) (a) if the actual Stock Price is greater than $100.00 per share (subject to adjustment), then the Conversion Rate will not be
increased, or (b) if the actual Stock Price is less than $7.05 per share (subject to adjustment), then the Conversion Rate will not be increased; and 
 (3) Notwithstanding the foregoing, in no event will the Conversion Rate as adjusted exceed 141.8440 per $1,000 principal amount of Notes, subject to adjustment in the same manner as the Conversion Rate pursuant
to this Article 10. 
 SECTION 10.04. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time to time by
the Company as follows; provided that the Company shall not make any adjustments to the Conversion Rate if Holders participate, as a result of holding the Notes, in any of the transactions described below without having to convert their Notes
as if they held the full number of shares underlying their Notes: 
 (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 or share combination, the Conversion Rate will be adjusted based on the following formula: 
  

 -40- 

			
	CR’ = CR0 x	  	OS’
	  	OS0

 where 
  

	 	 CR0  =
	 the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
dividend or distribution or the effective date of such share split or share combination; 

  

	 	CR’  =	the Conversion Rate in effect immediately after the opening of business on the Ex-Dividend Date for such dividend or distribution or the effective date of such share split or share
combination; 

  

	 	 OS0  =
	 the number of shares of Common Stock outstanding immediately prior to the
Ex-Dividend Date for such dividend or distribution or the effective date of such share split or share combination; and 

  

	 	OS’  =	the number of shares of Common Stock outstanding immediately after, and solely as a result of, such event. 

 Such adjustment shall become effective immediately after (x) the opening of business on the Ex-Dividend Date for such dividend or distribution or
(y) the effective date of such share split or share combination. If any dividend or distribution of the type described in this Section 10.04(a) is declared but not so paid or made, the Conversion Rate shall be readjusted 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 or warrants entitling them for a period of not more than sixty (60) calendar days to subscribe for or purchase shares of the Common Stock, at a price per share less than the Current
Market Price of the Common Stock, the Conversion Rate shall be adjusted based on the following formula: 
  

			
	CR’ = CR0 x	  	OS0 + X
	  	OS0 + Y

 where 
  

	 	 CR0  =
	 the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
distribution; 

	 	

	 	CR’  =	the Conversion Rate in effect immediately after the opening of business on the Ex-Dividend Date for such distribution; 

	 	

	 	 OS0  =
	 the number of shares of the Common Stock that are outstanding immediately prior to
the Ex-Dividend Date for such distribution; 

	 	

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

  

 -41- 

	 	Y      =	the number of shares of the Common Stock equal to the aggregate price payable to exercise such rights or warrants divided by the Current Market Price.

 Such adjustment shall become effective immediately after the opening of business on the Ex-Dividend Date for such
distribution. In the event that such rights or warrants described in this Section 10.04(b) are not so distributed, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect if the Ex-Dividend Date for such
distribution had not occurred. To the extent that such rights or warrants are not exercised prior to their expiration or shares of the Common Stock are otherwise not delivered pursuant to such rights or warrants upon the exercise of such rights or
warrants, the Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of the delivery of only the number of shares of the
Common Stock actually delivered. In determining the aggregate price payable for such shares of the Common Stock, there shall be taken into account any consideration received for such rights or warrants with the value of such consideration if other
than cash to be determined by the Board of Directors. 
 (c) Subject to Section 10.08, if the Company shall distribute shares of its
Capital Stock, rights to acquire the Company’s Capital Stock, evidences of its indebtedness or other of its assets or property to all or substantially all holders of its Common Stock other than (v) dividends or distributions referred to in
Section 10.04(a); (w) rights or warrants referred to in Section 10.04(b); (x) dividends or distributions referred to in Section 10.04(d); (y) any dividends and distributions in connection with a Reorganization Event
covered by Section 10.05; and (z) any Spin-Off to which the provisions set forth below in this Section 10.04(c) shall apply (any of such shares of Capital Stock, rights, indebtedness, or other asset or property hereinafter in this
Section 10.04(c) called the “Distributed Property”), to all or substantially all holders of its Common Stock, then, in each such case the Conversion Rate shall be adjusted based on the following formula: 
  

			
	CR’ = CR0 x	  	SP0
	  	SP0 -  FMV

 where 
  

	 	 CR0    =

	 the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
distribution; 

  

	 	CR’    =	the Conversion Rate in effect immediately after the opening of business on the Ex-Dividend Date for such distribution; 

  

	 	 SP0    =

	 the Current Market Price; and 

  

	 	FMV  =	the Fair Market Value, on the Ex-Dividend Date for such distribution, of the Distributed Property, expressed as an amount per share of the Common Stock. 

  

 -42- 

 With respect to an adjustment pursuant to this Section 10.04(c) where there has been a payment of a
dividend or other distribution on the Common Stock of shares of Capital Stock of any class or series of, or similar equity interest in, a Subsidiary or other business unit of the Company (a “Spin-Off”), that are, or, when issued,
will be, listed on the New York Stock Exchange, Nasdaq Global Select Market, Nasdaq Global Market, or any other national or regional securities exchange or market, the Conversion Rate will be instead adjusted based on the following formula:

  

			
	CR’ = CR0 x	  	FMV0 + MP0
	  	MP0

 where 
  

	 	 CR0    =

	 the Conversion Rate in effect immediately prior to the end of the Valuation
Period; 

  

	 	CR’    =	the Conversion Rate in effect immediately after the end of the Valuation Period; 

  

	 	 FMV0 =
	 the average of the Last Reported Sale Prices of the Capital Stock or similar
equity interest distributed to holders of the Common Stock applicable to one share of the Common Stock over the first ten (10) consecutive Trading-Day period commencing on, and including, the effective date of the Spin-Off (the
“Valuation Period”); and 

  

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

 The adjustment to the Conversion Rate under the preceding paragraph shall occur on the last day
of the Valuation Period; provided that in respect of any conversion during the Valuation Period, references with respect to ten (10) Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed between
the effective date of such Spin-Off and the Conversion Date in determining the applicable Conversion Rate. 
 Any other adjustment made
pursuant to this Section 10.04(c) shall become effective immediately after the opening of business on the Ex-Dividend Date for such dividend or distribution. If such dividend or distribution is not so paid or made, the Conversion Rate shall be
readjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
 For purposes of
this Section 10.04(c), Section 10.04(a) and Section 10.04(b), any dividend or distribution to which this Section 10.04(c) is applicable that also includes shares of Common Stock or rights or warrants to subscribe for, or purchase shares of
Common Stock to which Section 10.04(a) or 10.04(b) applies (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets, property or shares of the Company’s Capital Stock or rights to
acquire Capital Stock, other than such shares of Common Stock or rights or warrants to which Section 10.04(a) 

  

 -43- 

 
or 10.04(b) applies (and any Conversion Rate adjustment required by this Section 10.04(c) with respect to such dividend or distribution shall then be made)
immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants to which Section 10.04(a) or 10.04(b) applies (and any further Conversion Rate adjustment required by Section 10.04(a) and 10.04(b)
with respect to such dividend or distribution shall then be made), except (A) the Ex-Dividend Date of such deemed dividend or distribution shall be substituted for “the Ex-Dividend Date” within the meaning of Section 10.04(a) and
Section 10.04(b) and (B) any shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding immediately prior to the Ex-Dividend Date for such dividend or distribution or the effective date of such share
split or share combination” within the meaning of Section 10.04(a). 
 (d) If the Company pays any cash dividend or distribution to all
or substantially all holders of its Common Stock, the Conversion Rate shall be adjusted based on the following formula: 
  

			
	CR’ = CR0 x	  	SP0
	  	SP0 -  C

 where 
  

	 	 CR0  =
	 the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such
dividend or distribution; 

	 	

	 	CR’  =	the Conversion Rate in effect immediately after the opening of business on the Ex-Dividend Date for such dividend or distribution; 

	 	

	 	 SP0  =
	 the Current Market Price; and 

	 	

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

 Such adjustment shall become effective immediately after the opening of business on the Ex-Dividend Date for such dividend or distribution. If such
dividend or distribution is not so paid or made, the Conversion Rate shall be readjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
 (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 Last Reported Sale Price of the Common Stock on the Trading Day immediately succeeding the last date (the “Expiration Date”)
on which tenders or exchanges may be made pursuant to such tender offer or exchange offer, the Conversion Rate shall be adjusted based on the following formula: 
  

			
	CR’ = CR0 x	  	FMV + (SP’ x OS’)
	  	OS0 x SP’

 where 
  

 -44- 

	 	 CR0    =

	 the Conversion Rate in effect at the close of business on the Expiration Date;

  

	 	CR’    =	the Conversion Rate in effect immediately after the Expiration Date; 

  

	 	FMV  =	the Fair Market Value, on the Expiration Date, of the aggregate value of all cash and any other consideration paid or payable for shares validly tendered or exchanged and not
withdrawn as of the Expiration Date; 

  

	 	OS’    =	the number of shares of Common Stock outstanding immediately after the last time tenders or exchanges may be made pursuant to such tender offer or exchange offer, giving effect to
the consummation of such transaction (the “Expiration Time”); 

  

	 	 OS0    =

	 the number of shares of Common Stock outstanding immediately prior to the
Expiration Time; and 

  

	 	SP’    =	the Last Reported Sale Price of Common Stock on the Trading Day immediately succeeding the Expiration Date. 

 Such adjustment shall become effective immediately prior to the opening of business on the Trading Day immediately succeeding the Expiration Date. If the
Company or one of its Subsidiaries is obligated to purchase shares of the Common Stock pursuant to any such tender offer or exchange offer, but the Company or such Subsidiary of the Company is permanently prevented by applicable law, or otherwise,
from effecting any or all or any portion of such purchases or all such purchases are rescinded, the Conversion Rate shall be readjusted to be the Conversion Rate that would then be in effect if such tender offer or exchange offer had not been made.
Except as set forth in the preceding sentence, if the application of this Section 10.04(e) to any tender offer or exchange offer would result in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer or exchange
offer under this Section 10.04(e). 
 (f) Except with respect to a Spin-Off, in cases where the Fair Market Value of assets, debt
securities or certain rights, warrants or options to purchase the Company’s securities, applicable to one share of Common Stock, distributed to stockholders: 
 (i) equals or exceeds the average Last Reported Sale Prices of Common Stock over the ten (10) consecutive Trading Day period ending
on the Record Date for such distribution, or 
 (ii) such average Last Reported Sale Prices exceeds the Fair Market Value of
such assets, debt securities or rights, warrants or options so distributed by less than $0.25, 
 rather than being entitled to an adjustment in the
Conversion Rate, the Holder will be entitled to receive upon conversion, in addition to the shares of Common Stock, cash or a combination of cash and shares of Common Stock, the kind and amount of assets, debt securities or rights, warrants or
options comprising the distribution, if any, that such Holder would have received if 

  

 -45- 

 
such Holder had held the full number of shares of Common Stock underlying its Notes immediately prior to the Ex-Dividend Date for determining the
stockholders entitled to receive the distribution. 
 (g) To the extent permitted by applicable law, the Company from time to time may
increase the Conversion Rate by any amount for a period of at least twenty (20) Business Days if the Board of Directors shall have made a determination that such increase would be in the Company’s best interest, which determination shall
be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company shall provide to Holders a notice of the increase, which notice shall be provided at least fifteen (15) calendar days prior to the
effectiveness of any such increase, and such notice shall state the increased Conversion Rate and the period during which it will be in effect. 
 (h) In addition, the Company may (but is not required to) increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights to purchase shares of Common Stock in connection with any dividend or
distribution of shares of Common Stock (or rights to acquire such shares) or similar event. 
 (i) All calculations and other determinations under this Article 10 shall be made by the Company and shall be made to the nearest one-ten thousandth (1/10,000th) of a share. No adjustment pursuant to this Section 10.04 shall be
required to 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%, within one year of the first adjustment carried forward, upon a Fundamental Change or on the thirty-fifth (35th) Scheduled Trading Day preceding the Maturity Date. 
 (j) Whenever the Conversion Rate is adjusted as herein provided, the Company shall issue a press release containing the relevant information and make this information available on its website. In addition, the Company
shall promptly file with the Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring such adjustment.
Unless and until a Responsible Officer of the Trustee shall have received such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume without inquiry that the last
Conversion Rate of which it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which
each adjustment becomes effective and shall provide such notice of such adjustment of the Conversion Rate to each Holder within twenty (20) calendar days of the effective date of such adjustment. Failure to deliver such notice shall not affect
the legality or validity of any such adjustment. 
 (k) In any case in which this Section 10.04 provides that an adjustment shall become
effective immediately after (i) the opening of business on the Ex-Dividend Date for a dividend or distribution described in Section 10.04(a), 10.04(b), 10.04(d), (ii) the effective date for a share split or share combination of the
Common Stock described in Section 10.04(a), (iii)

  

 -46- 

 
the opening of business on the Ex-Dividend Date for the determination of stockholders entitled to receive a rights or warrants pursuant to
Section 10.04(b), or (iv) the Expiration Date for any tender or exchange offer pursuant to Section 10.04(e), (each a “Determination Date”), the Company may elect to defer until the occurrence of the applicable
Adjustment Event (as hereinafter defined) issuing to the Holder of any Notes converted after such Determination Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment. For purposes of this Section 10.04(k), the term “Adjustment
Event” shall mean: 
 (1) in any case referred to in clause (i) hereof, the date any such dividend or
distribution is paid or made; 
 (2) in any case referred to in clause (ii) hereof, the occurrence of such event;

 (3) in any case referred to in clause (iii) hereof, the date of expiration of such rights or warrants; and 

(4) in any case referred to in clause (iv) hereof, the date a sale or exchange of Common Stock pursuant to such tender or exchange
offer is consummated. 
 (l) In no event will the Company adjust the Conversion Rate to the extent that the adjustment would reduce the
Conversion Price below the par value per share of Common Stock. In addition, the applicable Conversion Rate will not be adjusted: 
 (1) upon the issuance of any shares of the Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the investment of additional optional
amounts in shares of the Common Stock under any plan; 
 (2) upon the issuance of any shares of the Common Stock or options or
rights to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of the Company’s Subsidiaries; or 
 (3) for a change in the par value of the Common Stock. 
 (m) 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 will not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
 (n) Whenever any provision of this Article 10 requires a calculation of a number of shares of Common Stock equal to a sum or an average of Last Reported
Sale Prices over a span of multiple days, the Company will make appropriate adjustments (determined by the Board of Directors) to account for any adjustment to the Conversion Rate that becomes effective, or any 

  

 -47- 

 
event requiring an adjustment to the Conversion Rate where the Ex-Dividend Date of the event occurs, at any time during the period from which the sum or
average is to be calculated. 
 (o) Except as stated in this Article 10, the Company shall not adjust the Conversion Rate for the issuance of
shares of Common Stock, including in connection with satisfaction of the Conversion Obligation with a combination of cash and shares of Common Stock, or any securities convertible into or exchangeable for shares of Common Stock or the right to
purchase shares of Common Stock or such convertible or exchangeable securities. 
 SECTION 10.05. Effect of Reclassification,
Consolidation, Merger or Sale. If any of the following events occur: 
 (a) any reclassification of the outstanding Common Stock (other
than a change in par value or as a result of a share split or share combination to which Section 10.04(a) applies); 
 (b) any share
exchange, consolidation or merger of the Company with or into another Person; or 
 (c) any conveyance, transfer, sale, lease or other
disposition to any other Person or Persons of all or substantially all of the Company’s consolidated assets, 
 and, in either case, the holders of
Common Stock received cash, securities or other property (the “Reference Property”) in exchange for such Common Stock (any such event or transaction, a “Reorganization Event”), in each case, the Company or the
Successor Company, as the case may be, shall execute with the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture, if such supplemental indenture is
then required to so comply) providing that such Notes shall, without the consent of any Holders, become convertible based on the type and amount of consideration that holders of Common Stock received in such Reorganization Event. If the
Reorganization Event causes the Common Stock to be converted into the right to receive more than a single type of consideration (determined based in part upon any form of stockholder election), the Reference Property into which the Notes will be
convertible will be deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively made such an election. In all cases, the provisions under Section 10.02 shall continue to
apply with respect to the calculation of the Conversion Obligation and the method of settlement. Such supplemental indenture shall provide for adjustments which shall be as nearly equivalent as practicable to the adjustments provided for in this
Article 10. 
 The Company shall cause notice of the execution of such supplemental indenture to be provided to each Holder within twenty
(20) calendar days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 
 The above provisions of this Section 10.05 shall similarly apply to successive reclassifications, consolidations, mergers, conveyances, transfers, sales, leases or other dispositions. 
  

 -48- 

 (d) If this Section 10.05 applies to any event or occurrence, Section 10.04 shall not apply.

 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.

 (b) The Company covenants that all shares of Common Stock issued upon conversion of Notes will 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 use commercially reasonable efforts 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. 
 SECTION 10.07. Notice to Holders Prior to Certain Actions. Except where notice is required pursuant to Section 10.01, in case:

 (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the Conversion
Rate pursuant to Section 10.04; or 
 (b) the Company shall authorize the granting to all or substantially all of the holders of its
Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other rights or warrants that would require an adjustment in the Conversion Rate pursuant to Section 10.04; or 
 (c) of any reclassification of the Common Stock of the Company (other than a share split or share combination of its outstanding Common Stock, or a
change in par value), or of any share exchange, consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the conveyance, transfer, sale, lease or other disposition of all or
substantially all of the consolidated assets of the Company; or 
 (d) of the voluntary or involuntary dissolution, liquidation or winding up
of the Company; 
 the Company shall cause to be filed with the Trustee and to be provided to each Holder, as promptly as possible but in any event at least
twenty (20) calendar days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is not to be
taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution or rights are to be determined, or (y) the date on which such reclassification, share 

  

 -49- 

 
exchange, consolidation, merger, conveyance, transfer, sale, lease or other disposition, dissolution, liquidation or winding up is expected to become
effective or occur, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up. 
 SECTION 10.08. Stockholder Rights Plans. If the rights provided for in any rights plan adopted by
the Company have not separated from the shares of Common Stock in accordance with the provisions of the applicable stockholder rights agreement, upon conversion of Notes, the converting Holder will receive, in addition to shares of Common Stock, if
any, the rights under the applicable stockholders agreement. If such rights have separated from the Common Stock, the Conversion Rate will be adjusted as provided in Section 10.04(c). 
 SECTION 10.09. Responsibility of Trustee. The Trustee and any other Conversion Agent shall not at any time be under any duty or
responsibility to any Holder to determine the Conversion Rate or whether any facts exist that may require any adjustment (including any increase) of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment
when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same. The Trustee and any other Conversion Agent shall not be accountable with respect to the validity or value (or
the kind or amount) of any shares of Common Stock, or of any securities, property or cash that may at any time be issued or delivered upon the conversion of any Note; and the Trustee and any other Conversion Agent make no representations with
respect thereto. Neither the Trustee nor any Conversion Agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the
surrender of any Note for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the Company contained in this Article 10. Without limiting the generality of the foregoing, neither the Trustee nor any
Conversion Agent shall be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture entered into pursuant to Section 10.05 relating either to the kind or amount of shares of stock or
securities or property (including cash) receivable by Holders upon the conversion of their Notes after any event referred to in such Section 10.05 or to any adjustment to be made with respect thereto, but, subject to the provisions of
Section 9.01, may accept as conclusive evidence of the correctness of any such provisions, and shall be protected in relying upon, the Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto. Neither the Trustee nor the Conversion Agent shall be responsible for determining whether any event contemplated by Section 10.01 has occurred that makes the Notes eligible for
conversion or no longer eligible therefor until the Company has delivered to the Trustee and the Conversion Agent the notices referred to in Section 10.01 with respect to the commencement or termination of such conversion rights, on which
notices the Trustee and the Conversion Agent may conclusively rely, and the Company agrees to deliver such notices to the Trustee and the Conversion Agent immediately after the occurrence of any such event or at such other times as shall be provided
for in Section 10.01. 
  

 -50- 

 ARTICLE 11 
 Miscellaneous 
 SECTION 11.01. Notices. Any notice or communication shall be in writing
and delivered in person or mailed by first-class mail addressed as follows: 
 if to the Company: 
 Standard Pacific Corp. 
 15326 Alton Parkway 
 Irvine, California 92618 
 Attention: Secretary 
 if to the Trustee: 
 The Bank of New York Trust Company, N.A. 
 2 North LaSalle, Suite 1020 
 Chicago, IL 60602 
 Attention: Global Corporate Trust 
 If to any Guarantor: 
 c/o Standard Pacific Corp. 
 15326 Alton Parkway 
 Irvine, California 92618 
 Attention: Secretary 
 SECTION 11.02. When Notes Disregarded. In determining whether the
Noteholders 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 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 Trust 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 11.03. GOVERNING LAW. THIS THIRD SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 11.04. No Recourse Against Others. A director, officer, employee, incorporator, stockholder or partner, as such, of the Company or
any Guarantor shall not have any liability for any obligations of the Company or such Guarantor under the Notes or this Third Supplemental Indenture or for any claim based on, in respect of or by reason of such obligations 
  

 -51- 

 
or their creation. By accepting a Note, each Noteholder shall waive and release all such liability. The waiver and release shall be part of the consideration
for the issue of the Notes. 
 SECTION 11.05. Successors. All agreements of the Company in the Indenture and the Notes shall bind
its successors. All agreements of the Trustee in the Indenture shall bind its successors. 
 SECTION 11.06. Multiple Originals.
The parties may sign any number of copies of this Third Supplemental 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 third Supplemental Indenture.

 SECTION 11.07. Table of Contents; Headings. The table of contents, cross-reference sheet and headings of the Articles and
Sections of this Third Supplemental 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 11.08. Severability Clause. In case any provision in this Third Supplemental 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 11.09. Calculations. Except as otherwise provided herein, the Company will be responsible for making all calculations called for
under the Indenture and the Notes (including any determinations of the price of the Common Stock). The Company shall make all such calculations in good faith and, absent manifest error, its calculations will be final and binding on Holders. The
Company upon request shall provide a schedule of its calculations to each of the Trustee and the Conversion Agent, and each of the Trustee and Conversion Agent is entitled to rely conclusively upon the accuracy of the Company’s calculations
without independent verification. The Trustee shall deliver a copy of such schedule to any Holder upon the request of such Holder. 
 SECTION
11.10. No Adverse Interpretation of Other Agreements. This Third Supplemental Indenture may not be used to interpret another indenture (other than the Original Indenture), loan or debt agreement of the Company or a Subsidiary. Any such
indenture, loan or debt agreement (other than the Original Indenture) may not be used to interpret this Third Supplemental Indenture. 
  

 -52- 

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

					
	STANDARD PACIFIC CORP., as Issuer
		
	By:	 	/S/ ANDREW H. PARNES
		 	 Name:
 Title:
	 	 Andrew H. Parnes
 Executive Vice
President-Finance
 and Chief Financial Officer

		
	By:	 	/S/ CLAY A. HALVORSEN
		 	 Name:
 Title:
	 	 Clay A. Halvorsen
 Executive Vice President, General
Counsel and Secretary

 GUARANTORS: 
 Barrington Estates, LLC, a Delaware limited liability company 
 CH Construction, Inc., a Delaware corporation 
 CH Florida, Inc., a Delaware corporation 
 Hilltop Residential, Ltd., a
Florida limited partnership 
 HSP Arizona, Inc., a Delaware corporation 
 HSP Tucson, Inc., a Delaware corporation 
 HWB Construction, Inc., a Delaware corporation 
 HWB Investments, Inc., a Delaware corporation 
 Lagoon Valley Residential,
LLC, a California limited liability company 
 LB/L-Duc II Franceschi, LLC, a Delaware limited liability company 
 LMD El Dorado 134, LLC, a California limited liability company 
 OLP Forty
Development, LLC, a Florida limited liability company 
 Pala Village Investments, Inc., a Delaware corporation 
  

 SIGNATURE PAGE OF THIRD
SUPPLEMENTAL INDENTURE 

 Residential Acquisition GP, LLC, a Florida limited liability company 
 SP Colony Investments, Inc., a Delaware corporation 
 SP Coppenbarger
Investments, Inc., a Delaware corporation 
 SP La Floresta, Inc., a Delaware corporation 
 SPNS Golden Gate, LLC, a Delaware limited liability company 
 SP Ventura Investments, Inc., a Delaware corporation

 Standard Pacific 1, Inc., a Delaware corporation 
 Standard
Pacific 1, LLC, a Delaware limited liability company 
 Standard Pacific 2, Inc., a Delaware corporation 
 Standard Pacific 2, LLC, a Delaware limited liability company 
 Standard
Pacific 3, Inc., a Delaware corporation 
 Standard Pacific 3, LLC, a Delaware limited liability company 
 Standard Pacific 4, Inc., a Delaware corporation 
 Standard Pacific 4, LLC,
a Delaware limited liability company 
 Standard Pacific 5, Inc., a Delaware corporation 
 Standard Pacific 5, LLC, a Delaware limited liability company 
 Standard Pacific 6, Inc., a Delaware corporation 

Standard Pacific 6, LLC, a Delaware limited liability company 
 Standard
Pacific 7, Inc., a Delaware corporation 
 Standard Pacific 7, LLC, a Delaware limited liability company 
 Standard Pacific 8, Inc., a Delaware corporation 
 Standard Pacific 8, LLC,
a Delaware limited liability company 
 Standard Pacific 9, Inc., a Delaware corporation 
  

 SIGNATURE PAGE OF THIRD
SUPPLEMENTAL INDENTURE 

 Standard Pacific 9, LLC, a Delaware limited liability company 
 Standard Pacific of Arizona, Inc., a Delaware corporation 
 Standard Pacific
of Central Florida, a Florida general partnership 
 Standard Pacific of Central Florida GP, Inc., a Delaware corporation 
 Standard Pacific of Colorado, Inc., a Delaware corporation 
 Standard
Pacific of Fullerton, Inc., a Delaware corporation 
 Standard Pacific of Illinois, Inc., a Delaware corporation 
 Standard Pacific of Jacksonville, a Florida general partnership 
 Standard
Pacific of Jacksonville GP, Inc., a Delaware corporation 
 Standard Pacific of Las Vegas, Inc., a Delaware corporation 
 Standard Pacific of Orange County, Inc., a Delaware corporation 
 Standard
Pacific of South Florida, a Florida general partnership 
 Standard Pacific of South Florida GP, Inc., a Delaware corporation 
 Standard Pacific of Southwest Florida, a Florida general partnership 
 Standard Pacific of Southwest Florida GP, Inc., a Delaware corporation 
 Standard Pacific of Tampa GP, Inc., a Delaware corporation 
 Standard Pacific of Tampa, a Florida general partnership 
 Standard Pacific
of Texas, Inc., a Delaware corporation 
 Standard Pacific of Tonner Hills, LLC, a Delaware limited liability company 
 Standard Pacific of the Carolinas, LLC, a Delaware limited liability company 
 Standard Pacific of Tucson, Inc., a Delaware corporation 
  

 SIGNATURE PAGE OF THIRD
SUPPLEMENTAL INDENTURE 

 Standard Pacific of Walnut Hills, Inc., a Delaware corporation 
 Walnut Hills Development 268, LLC, a California limited liability company 
 Westfield Homes USA, Inc., a Delaware corporation 
  

			
		
	By:	 	/S/ ANDREW H. PARNES
		 	Andrew H. Parnes, in his capacity as Principal Financial and Accounting Officer of each of the above Guarantors which is a corporation or limited liability company with designated
officers, and in his capacity as Principal Financial and Accounting Officer of each general partner or managing member, as applicable, of each of the above Guarantors which is a partnership or limited liability company which does not have designated
officers

  

 SIGNATURE PAGE OF THIRD
SUPPLEMENTAL INDENTURE 

			
	 STANDARD PACIFIC OF COLORADO, INC., a
 Delaware corporation

		
	By:	 	/S/ KATHLEEN R WADE
		 	 Kathleen R Wade
 Vice President

  
  
  

 SIGNATURE PAGE OF THIRD
SUPPLEMENTAL INDENTURE 

			
	 THE BANK OF NEW YORK TRUST
 COMPANY, N.A., as
Trustee,

		
	By:	 	/s/ Sharon K. McGrath
		 	 Name: Sharon K. McGrath
 Title: Vice
President

  
  
  

 -58- 

 EXHIBIT A 
 [FORM OF FACE OF NOTE] 
 [Global Notes Legend] 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER 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. 
  

 A-1 

 No.______ 
 6% Convertible Senior Subordinated Notes due 2012 
 CUSIP No.: 853763AA8 
 ISIN: US853863AA80 
 STANDARD
PACIFIC CORP., a Delaware corporation, promises to pay to [Cede & Co.]1, or registered assigns, the principal sum of
[            ] Million Dollars ($______) [or such lesser amount as is indicated in Schedule I attached hereto]2, on October 1, 2012, and to pay interest thereon from September 28, 2007, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on April 1
and October 1 of each year, commencing April 1, 2008, at the rate of 6.0% per annum, until the principal hereof is paid or made available for payment or this Note is converted in accordance with the Indenture (as defined on the
reverse hereof). The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at
5:00 p.m., New York City time, on the Regular Record Date for such interest, which shall be March 15 or September 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so
punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at 5:00 p.m., New York
City time, 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 fifteen (15) 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. 

 Interest on the Notes will be calculated on the basis of a three-hundred sixty (360)-day period consisting of twelve (12) thirty
(30)-day months. If a payment date is not a Business Day, payment will be made on the next succeeding Business Day, and no additional interest will accrue in respect of such payment by virtue of the payment being made on such later date. 

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 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: 
  

			
	STANDARD PACIFIC CORP.,
		
	By:	 	 
		 	 Name:
 Title:

		
	By:	 	 
		 	 Name:
 Title:

  

			
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	
	 THE BANK OF NEW YORK TRUST COMPANY, N.A., 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] 
 6% Convertible Senior Subordinated Notes due 2012 
 STANDARD PACIFIC CORP., a Delaware
corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), issued these Notes under an Indenture dated as of April 10, 2002 (the
“Original Indenture”), by and between the Company and J.P. Morgan Trust Company, N.A., as Trustee, as supplemented by the Third Supplemental Indenture dated as of September 24, 2007 (the “Third Supplemental
Indenture”), among the Company, the Guarantors party thereto and The Bank of New York Trust Company, N.A., as Trustee (the Original Indenture, as supplemented by the Third Supplemental Indenture, the “Indenture”), 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. Except
as specifically provided in Section 1(a) hereof, all terms used in this Note which are defined in the Indenture shall have the meaning assigned to them in the Indenture. In the event of any inconsistency between the terms of the Note and the
terms of the Indenture, the terms of the Indenture shall control. 
  

	1.	Further Provisions Relating to Interest 

 (a) Additional Interest. In the event of the Company’s failure to comply with its
reporting obligations as set forth in the Indenture, at the Company’s election, the Company shall pay additional interest (“Additional Interest”) on the Notes at an annual rate equal to (i) 0.25% of the principal amount of
the Notes for the first one-hundred twenty (120) days following the occurrence of such Event of Default and (ii) 0.50% of the principal amount of the Notes for the next ninety (90) days after the one-hundred twenty (120) days
following the occurrence of such Event of Default. If the Company so elects, Additional Interest will accrue on all outstanding Notes from, and including, the date on which an Event of Default relating to a failure by the Company to comply with its
reporting obligations pursuant to the Indenture first occurs to, but not including, the two-hundred tenth (210th) day thereafter (or such earlier date
on which the Event of Default relating to the Company’s reporting obligations shall have been cured or waived). On such two-hundred tenth (210th) day (or earlier, if an Event of Default relating to the Company’s obligations is cured or waived prior to such two-hundred tenth (210th) day), such Additional Interest will cease to accrue and the Notes will be subject to acceleration if such Event of Default is continuing. 
 (b) Except as otherwise specifically set forth, all references herein to “interest” include Defaulted Interest and Additional Interest, if any.

  

	2.	Method of Payment 

 The Company will pay interest on
the Notes (except Defaulted Interest) to the Persons who are registered Holders of Notes at 5:00 p.m., New York City time, on the March 15 and September 15 next preceding the Interest Payment Date even if Notes are canceled after the
record date and on or before the Interest Payment Date, except as otherwise provided in the Indenture. Holders must surrender Notes to a Paying Agent to collect principal payments. The 

  

 A-4 

 
Company will 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 by wire transfer of immediately available funds to the account of the Depositary or its nominee; 
 (ii) any Notes in certificated form having a principal amount of less than $5,000,000, by check mailed to the address of the Person entitled thereto as it appears in the Register; and 
 (iii) any Notes in certificated form having a principal amount of $5,000,000 or more, by wire transfer in immediately available funds at the election of
the Holder duly delivered to the trustee at least five (5) Business Days prior to the relevant Interest Payment Date. 
  

	3.	Paying Agent, Registrar, Conversion Agent and Bid Solicitation Agent 

 Initially, The Bank of New York Trust Company, N.A., a national banking association organized under the laws of the United States (the “Trustee”), will act as Paying Agent, Registrar, Conversion Agent and
Bid Solicitation Agent. The Company may appoint and change any Paying Agent, Registrar or co-registrar, Conversion Agent or Bid Solicitation Agent without notice. The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act
as Paying Agent, Registrar or co-registrar. 
  

	4.	Sinking Fund 

 The Notes are not subject to any
sinking fund. 
  

	5.	Repurchase of Notes at the Option of Noteholders 

 Upon the occurrence of a Fundamental Change, the Holder has the right, at such Holder’s
option, to require the Company to repurchase all of such Holder’s Notes or any portion thereof (in principal amounts of $1,000 or multiples thereof) on the Fundamental Change Repurchase Date at a price equal to 100% of the principal amount of
the Notes such Holder elects to require the Company to repurchase, together with accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date. The Company or, at the written request of the Company, the Trustee shall mail to
all holders of record of the Notes a notice of the occurrence of a Fundamental Change and of the repurchase right arising as a result thereof on or before the fifteenth (15th) calendar day after the occurrence of such Fundamental Change. 
  

	6.	Conversion 

 Subject to the provisions of the
Indenture, the Holder hereof has the right, at its option, during certain periods and upon the occurrence of certain conditions specified in the Indenture and prior to 5:00 p.m. (New York City time) on the second Scheduled Trading Day immediately
preceding the Maturity Date, to convert any Notes or portion thereof that is $1,000 

  

 A-5 

 
or multiples thereof at a Conversion Rate specified in the Indenture. Upon conversion, the Company shall satisfy its Conversion Obligation in shares of
Common Stock, cash or a combination of cash and shares of Common Stock. As of the date of the Indenture, the Company has elected to satisfy its Conversion Obligation in shares of Common Stock. The Company may elect, in accordance with the Indenture,
a different settlement method pursuant to the terms of the Indenture. In addition, the Company may irrevocably elect Net Share Settlement in accordance with the Indenture. The initial Conversion Rate shall be 114.2857 shares for each $1,000
principal amount of Notes. No fractional shares of Common Stock will be issued upon any conversion, and the number of shares of Common Stock issuable upon conversion shall be rounded down to the next lower whole number. No adjustment shall be made
for dividends or any shares issued upon conversion of such Note except as provided in the Indenture. 
  

	7.	Denominations, Transfer, Exchange 

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

	8.	Persons Deemed Owners 

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

	9.	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, Noteholders entitled to the money and/or securities must look to the Company for payment as general creditors unless applicable abandoned property law designates another Person. 
  

	10.	Amendment, Waiver 

 Subject to certain exceptions,
the Indenture contains provisions permitting an amendment of the Indenture or the Notes with the written consent of the Holders of at least a majority in principal amount of the then outstanding Notes and the waiver of any Event of Default (other
than any continuing Event of Default in payment of interest or principal amount of the Notes or in respect of provisions 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 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. 
  

 A-6 

	11.	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 principal amount of the
outstanding Notes may declare the principal of and accrued but unpaid interest on all the 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
of and interest on all the Notes will become immediately due and payable without any declaration or other act on the part of the Trustee or any Noteholders. Under certain circumstances, the Holders of a majority in principal amount of the
outstanding Notes may rescind any such acceleration with respect to the Notes and its consequences. 
 Subject to certain restrictions, the
Holders of a majority in principal amount of the outstanding Notes are given the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the
Trustee. 
 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. 
  

	12.	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. 
  

	13.	No Recourse Against Others 

 A director, officer,
employee, incorporator, stockholder or partner, as such, of the Company or any Guarantor shall not have any liability for any obligations of the Company or such Guarantor under the Notes or the Indenture or for any claim based on, in respect of or
by reason of such obligations or their creation. By accepting a Note, each Noteholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Notes. 
  

	14.	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. 
  

 A-7 

	15.	Abbreviations 

 Customary abbreviations may be used
in the name of a Noteholder 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). 
  

	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 Noteholders. 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 will furnish to any Holder 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 

 GUARANTEE 
 FOR VALUE RECEIVED, each of the undersigned hereby unconditionally, jointly and severally, and irrevocably guarantees to the Holders of the 6% Convertible Senior Subordinated Notes due 2012 of the Company (the
“Notes”) that (i) the principal of, interest on and the Conversion Obligation (to the extent payable in cash or property other than Capital Stock of the Company), if any, of the Notes will be promptly paid in full when due,
subject to any applicable grace period, whether at maturity, upon conversion or repurchase, by acceleration or otherwise and interest on the overdue principal, if any, and interest on any interest of the Notes and all other obligations of the
Company to the Holders or the Trustee thereunder, will be promptly paid in full or performed, all in accordance with the terms thereof; and (ii) in case of any extension of time of payment or renewal of any Notes or of any such other
obligations, the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, subject to any applicable grace period, whether at stated maturity, by acceleration or otherwise; all in accordance
with and subject to the terms and limitations of the Notes, Article 7 of the Third Supplemental Indenture among the Company, the guarantors party thereto, and the Trustee (the “Third Supplemental Indenture”) and this Guarantee. This
Guarantee will become effective on the date hereof. The validity and enforceability of this Guarantee shall not be affected by the fact that it is not affixed to any particular Note. 
 The obligations of the undersigned to the Holders of the Notes and to the Trustee pursuant to the Guarantee and the Indenture are expressly set forth in
Article 7 of the Third Supplemental Indenture and reference is hereby made to the Third Supplemental Indenture for the precise terms of the Guarantee and all of the other provisions of the Indenture to which this Guarantee relates. 
 The obligations of the undersigned pursuant to this Guarantee are subordinated in right of payment to the obligations of the undersigned under its
Guarantor Senior Indebtedness in the same manner and to the same extent that the Notes are subordinated to Senior Indebtedness of the Company pursuant to Article 11 of the Original Indenture. 
 Any capitalized term used in this Guarantee and not defined herein shall have the meaning specified in the Indenture, unless the context shall otherwise
require. 
 This Guarantee is subject to release and termination upon the terms set forth in the Third Supplemental Indenture. 
 This Guarantee may be executed in one or more counterparts, each of which will be deemed to be an original, and all of which, when taken together, will
be deemed to constitute one and the same instrument. 
 [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 A-9 

 IN WITNESS WHEREOF, the parties hereto have caused this guarantee to be duly executed as of this 28th day
of September, 2007. 
 GUARANTORS: 
 Barrington
Estates, LLC, a Delaware limited liability company 
 CH Construction, Inc., a Delaware corporation 
 CH Florida, Inc., a Delaware corporation 
 Hilltop Residential, Ltd., a
Florida limited partnership 
 HSP Arizona, Inc., a Delaware corporation 
 HSP Tucson, Inc., a Delaware corporation 
 HWB Construction, Inc., a Delaware corporation 
 HWB Investments, Inc., a Delaware corporation 
 Lagoon Valley Residential,
LLC, a California limited liability company 
 LB/L-Duc II Franceschi, LLC, a Delaware limited liability company 
 LMD El Dorado 134, LLC, a California limited liability company 
 OLP Forty
Development, LLC, a Florida limited liability company 
 Pala Village Investments, Inc., a Delaware corporation 
 Residential Acquisition GP, LLC, a Florida limited liability company 
 SP
Colony Investments, Inc., a Delaware corporation 
 SP Coppenbarger Investments, Inc., a Delaware corporation 
 SP La Floresta, Inc., a Delaware corporation 
 SPNS Golden Gate, LLC, a
Delaware limited liability company 
 SP Ventura Investments, Inc., a Delaware corporation 
 Standard Pacific 1, Inc., a Delaware corporation 
 Standard Pacific 1, LLC, a Delaware limited liability company 

 

 A-10 

 Standard Pacific 2, Inc., a Delaware corporation 
 Standard Pacific 2, LLC, a Delaware limited liability company 
 Standard Pacific 3, Inc., a Delaware corporation 

Standard Pacific 3, LLC, a Delaware limited liability company 
 Standard
Pacific 4, Inc., a Delaware corporation 
 Standard Pacific 4, LLC, a Delaware limited liability company 
 Standard Pacific 5, Inc., a Delaware corporation 
 Standard Pacific 5, LLC,
a Delaware limited liability company 
 Standard Pacific 6, Inc., a Delaware corporation 
 Standard Pacific 6, LLC, a Delaware limited liability company 
 Standard Pacific 7, Inc., a Delaware corporation 

Standard Pacific 7, LLC, a Delaware limited liability company 
 Standard
Pacific 8, Inc., a Delaware corporation 
 Standard Pacific 8, LLC, a Delaware limited liability company 
 Standard Pacific 9, Inc., a Delaware corporation 
 Standard Pacific 9, LLC,
a Delaware limited liability company 
 Standard Pacific of Arizona, Inc., a Delaware corporation 
 Standard Pacific of Central Florida, a Florida general partnership 
 Standard Pacific of Central Florida GP, Inc., a Delaware corporation 
 Standard Pacific of Colorado, Inc., a Delaware corporation 
 Standard Pacific of Fullerton, Inc., a Delaware corporation 
 Standard
Pacific of Illinois, Inc., a Delaware corporation 
 Standard Pacific of Jacksonville, a Florida general partnership 
  

 A-11 

 Standard Pacific of Jacksonville GP, Inc., a Delaware corporation 
 Standard Pacific of Las Vegas, Inc., a Delaware corporation 
 Standard
Pacific of Orange County, Inc., a Delaware corporation 
 Standard Pacific of South Florida, a Florida general partnership 
 Standard Pacific of South Florida GP, Inc., a Delaware corporation 
 Standard Pacific of Southwest Florida, a Florida general partnership 
 Standard Pacific of Southwest Florida GP, Inc., a Delaware corporation

 Standard Pacific of Tampa GP, Inc., a Delaware corporation 
 Standard Pacific of Tampa, a Florida general partnership 
 Standard Pacific of Texas, Inc., a Delaware corporation 
 Standard Pacific of Tonner Hills, LLC, a Delaware limited liability company 
 Standard Pacific of the Carolinas, LLC, a Delaware limited liability company 
 Standard Pacific of Tucson, Inc., a Delaware corporation 

Standard Pacific of Walnut Hills, Inc., a Delaware corporation 
 Walnut
Hills Development 268, LLC, a California limited liability company 
 Westfield Homes USA, Inc., a Delaware corporation 
  

			
		
	By:	 	 
		 	Andrew H. Parnes, in his capacity as Principal Financial and Accounting Officer of each of the above Guarantors which is a corporation or limited liability company with designated
officers, and in his capacity as Principal Financial and Accounting Officer of each general partner or managing member, as applicable, of each of the above Guarantors which is a partnership or limited liability company which does not have designated
officers

  

 A-12 

			
	STANDARD PACIFIC OF COLORADO, INC., a Delaware corporation
		
	By:	 	 
		 	 Kathleen R Wade
 Vice President

  

 A-13 

 CONVERSION NOTICE 
  

	TO:	STANDARD PACIFIC CORP. 

	  	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Conversion Agent 

 The undersigned registered owner of this Note hereby irrevocably 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 shares of Common Stock, cash or a combination of cash and shares of Common Stock deliverable or payable 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 will 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) 
 Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended. 
 ______________________________ 
 Signature Guarantee 
  

 A-14 

 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, if any, 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-15 

 FUNDAMENTAL CHANGE REPURCHASE NOTICE 
  

	TO:	STANDARD PACIFIC CORP. 

	  	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Paying Agent 

 The undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a notice from Standard Pacific Corp. (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-16 

 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. 
 Dated: ______________________ 
 ______________________________ 
 ______________________________ 
 Signature(s) 
 Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program
(“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
 ______________________________ 
 Signature Guarantee 
 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-17 

 Schedule I 
 6% Convertible Senior Subordinated Notes Due 2012 
  

							
	Date	 	Principal Amount	 	Notation Explaining
Amount Recorded	 	Authorized Signature
of Trustee or
Custodian

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