Document:

Lease by and between the Registrant and Willow Park Holding Company II, L.P.

 Exhibit 10.22 

 

 

 Lease 
 Willow Park 
 Menlo Park, California 

Willow Park Holding Company II, L.P., a Delaware limited partnership, 

as Landlord, 
 and 
 Pacific Biosciences of California, Inc., a Delaware corporation

 dba Pac Bio, Inc., 
 as Tenant 

 Table of Contents 

 

									
	Section	  	 	  	Page	 
			
	1.	 	Basic Provisions	  	 	1	  
		 	1.1	  	Parties	  	 	1	  
		 	1.2	  	Premises	  	 	1	  
		 	1.3	  	Term	  	 	1	  
		 	1.4	  	Base Rent	  	 	1	  
		 	1.5	  	Tenant’s Share of Operating Expenses	  	 	1	  
		 	1.6	  	Tenant’s Estimated Monthly Rent Payment	  	 	1	  
		 	1.7	  	Security Deposit	  	 	1	  
		 	1.8	  	Permitted Use	  	 	1	  
		 	1.9	  	Guarantor	  	 	1	  
		 	1.10	  	Addenda	  	 	1	  
		 	1.11	  	Exhibits	  	 	1	  
		 	1.12	  	Address for Rent Payments	  	 	1	  
		 	1.13	  	Brokers	  			
			
	2.	 	Premises and Common Areas	  	 	2	  
		 	2.1	  	Letting	  	 	2	  
		 	2.2	  	Common Areas - Definition	  	 	2	  
		 	2.3	  	Common Areas - Tenant’s Rights	  	 	2	  
		 	2.4	  	Common Areas - Rules and Regulations	  	 	2	  
		 	2.5	  	Common Area Changes	  	 	2	  
		 	2.6	  	Parking	  	 	2	  
		 	2.7	  	Access	  	 	2	  
			
	3.	 	Term	  	 	3	  
		 	3.1	  	Term	  	 	3	  
		 	3.2	  	Delay in Possession	  	 	3	  
		 	3.3	  	Commencement Date Certificate	  	 	3	  
			
	4.	 	Rent	  	 	3	  
		 	4.1	  	Base Rent	  	 	3	  
		 	4.2	  	Operating Expenses	  	 	3	  
			
	5.	 	Security Deposit	  	 	5	  
			
	6.	 	Use	  	 	5	  
		 	6.1	  	Permitted Use	  	 	5	  
		 	6.2	  	Hazardous Substances	  	 	6	  
		 	6.3	  	Tenant’s Compliance with Requirements	  	 	6	  
		 	6.4	  	Inspection; Compliance with Law	  	 	6	  
		 	6.5	  	Tenant Move-in Questionnaire	  	 	7	  
		 	6.6	  	Exculpation	  	 	7	  
			
	7.	 	Maintenance, Repairs, Trade Fixtures and Alterations	  	 	7	  
		 	7.1	  	Tenant’s Obligations	  	 	7	  
		 	7.2	  	Landlord’s Obligations	  	 	8	  
		 	7.3	  	Alterations	  	 	8	  
		 	7.4	  	Surrender/Restoration	  	 	8	  
			
	8.	 	Insurance; Indemnity	  	 	8	  
		 	8.1	  	Payment of Premiums and Deductibles	  	 	8	  
		 	8.2	  	Tenant’s Insurance	  	 	9	  
		 	8.3	  	Landlord’s Insurance	  	 	9	  
		 	8.4	  	Waiver of Subrogation	  	 	9	  
		 	8.5	  	Indemnity	  	 	9	  
		 	8.6	  	Exemption of Landlord from Liability	  	 	9	  
			
	9.	 	Damage or Destruction	  	 	10	  
		 	9.1	  	Termination Right	  	 	10	  
		 	9.2	  	Damage Caused by Tenant	  	 	10	  
			
	10.	 	Real Property Taxes	  	 	10	  
		 	10.1	  	Payment of Real Property Taxes	  	 	10	  
		 	10.2	  	Real Property Tax Definition	  	 	10	  
		 	10.3	  	Additional Improvements	  	 	10	  
		 	10.4	  	Joint Assessment	  	 	10	  
		 	10.5	  	Tenant’s Property Taxes	  	 	10	  
			
	11.	 	Utilities	  	 	10	  
			
	12.	 	Assignment and Subleasing	  	 	11	  
		 	12.1	  	Prohibition	  	 	11	  
		 	12.2	  	Request for Consent	  	 	11	  
		 	12.3	  	Criteria for Consent	  	 	11	  

  
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		  	12.4	  	Effectiveness of Transfer and Continuing Obligations	  	 	11	  
		  	12.5	  	Rent Adjustment/Recapture	  	 	11	  
		  	12.6	  	Transfer Premium	  	 	11	  
		  	12.7	  	Waiver	  	 	11	  
		  	12.8	  	Special Transfer Prohibitions	  	 	11	  
		  	12.9	  	Affiliates	  	 	12	  
			
	13.	  	Default; Remedies	  	 	13	  
		  	13.1	  	Default	  	 	13	  
		  	13.2	  	Remedies	  	 	13	  
		  	13.3	  	Late Charges	  	 	14	  
			
	14.	  	Condemnation	  	 	15	  
			
	15.	  	Estoppel Certificate and Financial Statements	  	 	15	  
		  	15.1	  	Estoppel Certificate	  	 	15	  
		  	15.2	  	Financial Statement	  	 	15	  
			
	16.	  	Additional Covenants and Provisions	  	 	15	  
		  	16.1	  	Severability	  	 	15	  
		  	16.2	  	Interest on Past-Due Obligations	  	 	15	  
		  	16.3	  	Time of Essence	  	 	15	  
		  	16.4	  	Landlord Liability	  	 	15	  
		  	16.5	  	Entire Agreement	  	 	16	  
		  	16.6	  	Notice Requirements	  	 	16	  
		  	16.7	  	Date of Notice	  	 	16	  
		  	16.8	  	Waivers	  	 	16	  
		  	16.9	  	Holdover	  	 	16	  
		  	16.10	  	Cumulative Remedies	  	 	17	  
		  	16.11	  	Binding Effect: Choice of Law	  	 	17	  
		  	16.12	  	Landlord	  	 	17	  
		  	16.13	  	Attorneys’ Fees and Other Costs	  	 	17	  
		  	16.14	  	Landlord’s Access; Showing Premises; Repairs	  	 	17	  
		  	16.15	  	Signs	  	 	17	  
		  	16.16	  	Termination; Merger	  	 	17	  
		  	16.17	  	Quiet Possession	  	 	17	  
		  	16.18	  	Subordination; Attornment; Non-Disturbance	  	 	17	  
		  	16.19	  	Rules and Regulations	  	 	18	  
		  	16.20	  	Security Measures	  	 	18	  
		  	16.21	  	Reservations	  	 	18	  
		  	16.22	  	Conflict	  	 	18	  
		  	16.23	  	Offer	  	 	18	  
		  	16.24	  	Amendments	  	 	18	  
		  	16.25	  	Multiple Parties	  	 	18	  
		  	16.26	  	Authority	  	 	18	  
		  	16.27	  	Recordation	  	 	18	  
		  	16.28	  	Confidentiality	  	 	18	  
		  	16.29	  	Landlord Renovations	  	 	18	  
		  	16.30	  	Waiver of Jury Trial	  	 	18	  
		  	16.31	  	Clean Room Equipment	  	 	18	  
		  	16.32	  	Cubicles and Equipment	  	 	19	  
		  	16.33	  	Building Information	  	 	19	  
		  	16.34	  	Landlord’s Work	  	 	19	  

  
 ii 

 Glossary 
 The following terms in the Lease are defined in the paragraphs opposite the terms. 
  

			
	Term	  	Defined in Paragraph
		
	Addendum	  	 Addendum 1 & Addendum 3

	Addendum 2	  	 Addendum 2

	Additional Rent	  	 4.1

	Affiliates	  	 12.9

	Alteration/Alterations	  	 7.3

	Applicable Requirements	  	 6.3

	Architect	  	 Exhibit F

	Base Rent	  	 1.4

	Basic Provisions	  	 1

	Brokers	  	 1.13

	Building	  	 1.2

	Building Operating Expenses	  	 4.2(b)

	Clean Room Equipment	  	 16.31

	CM Fee	  	 Exhibit F

	Code	  	 12.8

	Commencement Date	  	 1.3

	Commencement Date Certificate	  	 3.3

	Common Areas	  	 2.2

	Common Area Operating Expenses	  	 4.2(b)

	condemnation	  	 14

	Construction Documents	  	 Exhibit F

	Contractor	  	 Exhibit F

	Expansion Space	  	 Addendum 3

	Default	  	 13.1

	Election Notice	  	 Addendum 2 & Addendum 3

	Expansion Space/Expansion Spaces	  	 Addendum 2

	Expiration Date	  	 1.3

	Extended Term/Extended Terms	  	 Addendum 1

	Final Plans and Specifications	  	 Exhibit F

	Final Preliminary Plans and Specifications	  	 Exhibit F

	Force Majeure Delays	  	 3.2

	Hazardous Substance	  	 6.2(a)

	HVAC	  	 4.2(a)(x)

	Industrial Center	  	 1.2

	Landlord	  	 1.1

	Landlord Entities	  	 6.2(c)

	Landlord’s Notice	  	 Addendum 2 & Addendum 3

	Landlord Response Period	  	 12.2

	Lease	  	 1.1

	Lenders	  	 6.4

	Mortgage	  	 16.18(a)

	nondisturbance agreement	  	 16.18(c)

	Offer	  	 Addendum 2

	Operating Expenses	  	 4.2

	Option/Options	  	 Addendum 1

	Option Notice	  	 Addendum 1

	Option Trigger Date	  	 Addendum 1

	Party/Parties	  	 1.1

	Permitted Use	  	 1.8

	Phase	  	 1.2

	Phase Operating Expenses	  	 4.2(b)

	Preliminary Plans and Specifications	  	 Exhibit F

	Premises	  	 1.2

	Prevailing Party	  	 16.13

	Prevailing Rental Rate	  	 Addendum 1

	Proposed Effective Date	  	 12.2

	Qualified Arbitrator	  	 Addendum 1

	Real Property Taxes	  	 10.2

	Renovations	  	 16.29

	Rent	  	 4.1

	Rent Commencement Date	  	 1.4

	Reportable Use	  	 6.2(a)

	Requesting Party	  	 15.1

	Responding Party	  	 15.1

	Right of First Refusal	  	 Addendum 3

	Rules and Regulations	  	 16.19

	Second Response Period	  	 12.2

  
 iii

			
	Security Deposit	  	 1.7

	Sole Arbitrator	  	 Addendum 1

	Subject Space	  	 12.2

	Tenant	  	 1.1

	Tenant Delays	  	 3.2

	Tenant Entities	  	 6.2(c)

	Tenant Improvement Allowance	  	 Exhibit F

	Tenant Improvement Costs	  	 Exhibit F

	Tenant Improvements	  	 Exhibit F

	Tenant Move-in Questionnaire	  	 6.5

	Tenant’s Notice	  	 12.2

	Tenant’s Property	  	 7.1

	Tenant’s Share	  	 1.5

	Term	  	 1.3

	Transfer Plans and Specifications	  	 12.3

	Transfer Premium	  	 12.6

	Transferee	  	 12.1

	Transferee HazMat Certificate	  	 12.4

	Transfers	  	 12.1

	Utility Expenses	  	 11

  
 iv 

 AMB Property Corporation 

Lease 
 1. Basic
Provisions (“Basic Provisions”). 
 1.1 Parties. This Lease (“Lease”) dated December
    , 2010, is made by and between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”) and Pacific Biosciences of California, Inc., a Delaware corporation dba Pac Bio, Inc.
(“Tenant”) (collectively, the “Parties” or individually, a “Party”). 
 1.2 Premises.
The premises (“Premises”), which are the subject of this Lease, are located in the industrial center commonly known as Willow Park (the “Industrial Center”). The Premises consist of an approximately 54,586 square foot
building (“Building”) commonly known as 1003-1005 Hamilton Avenue, Menlo Park, California and as depicted on Exhibit A. The Building is also identified on Exhibit A. The phase (“Phase”), which is also
identified on Exhibit A, consists of a portion of the Industrial Center in which the Building is located. 
 If the Premises are
all of the Building, there shall, for purposes of this Lease, be no distinction between the words “Premises” or “Building.” Tenant shall have nonexclusive rights to the Common Areas (as defined in Paragraph 2.2 below) but shall
not have any rights to the roof (except as set forth in Paragraph 7.1 below), exterior walls, or utility raceways of the Building or to any other buildings in the Industrial Center, except to the extent required by the terms of Paragraph 7.1 of this
Lease. The Industrial Center consists of the Premises, the Building, the Phase, the Common Areas, the land upon which they are located, and all other buildings and improvements within the boundaries of the Industrial Center. 

1.3 Term. Approximately four (4) years, eleven (11) months and fifteen (15) days (“Term”)
commencing on January 15, 2011 (“Commencement Date”) and ending December 31, 2015 (“Expiration Date”). Pursuant to the terms of this Lease, including without limitation, Exhibit F hereto, Tenant shall have
the right to access the Premises for purposes of constructing the Tenant Improvements (as defined in Exhibit F), office set-up and conducting large company meetings commencing on the Commencement Date. 

1.4 Base Rent. Base monthly rent (“Base Rent”) shall be payable as follows: 

 

					
	 Months of Term
	  	Monthly Base Rent	 
	 Commencement Date – 3/31/11
	  	$	0	  
	 4/1/11 – 7/31/11
	  	$	0	  
	 8/1/11 – 1/31/12
	  	$	90,066.90	  
	 2/1/12 – 1/31/13
	  	$	93,887.92	  
	 2/1/13 – 1/31/14
	  	$	96,704.56	  
	 2/1/14 – 1/31/15
	  	$	99,605.70	  
	 2/1/15 – 12/31/15
	  	$	102,593.87	  

 As used in this
Lease, the term “Rent Commencement Date’ shall mean April 1, 2011 unless Landlord does not deliver possession of the Premises on or before January 16, 2011, in which case “Rent Commencement Date” shall mean the date
which is two (2) months and fifteen (15) days following the date Landlord delivers possession of the Premises to Tenant. 
 1.5 Tenant’s Share of Operating Expenses (“Tenant’s Share”). 
  

							
	(a)	  	Common Area Operating Expenses	  	 	5.40	% 
	(b)	  	Building Operating Expenses	  	 	100	% 
	(c)	  	Phase Operating Expenses	  	 	0	% 

 1.6 Tenant’s
Estimated Monthly Rent Payment. Following is the estimated monthly Rent payment to Landlord pursuant to the provisions of this Lease. This estimate is made at the inception of the Lease and is subject to adjustment pursuant to the provisions
of this Lease. The Estimated Total Monthly Payment, set forth below, shall be paid upon the execution of this Lease for the first month of the Lease Term for which Rent is payable. 

 

							
	 (a)
	  	Base Rent (Paragraph 4.1)	  	$	90,066.90	  
	 (b)
	  	Operating Expenses (Paragraph 4.2, excluding Real Property Taxes, Landlord Insurance, and HVAC)	  	$	8,188.00	  
	 (c)
	  	Landlord Insurance (Paragraph 8.3)	  	$	1,092.00	  
	 (d)
	  	Real Property Taxes (Paragraph 10)	  	$	8,188.00	  
			
		  	Estimated Total Monthly Payment	  	$	107,534.90	  

 1.7 Security
Deposit. $102,593.87 (“Security Deposit”). 
         1.8 Permitted Use
(“Permitted Use”). General office, manufacturing, wet laboratory and other research and development uses consistent with biotechnology and medical device companies, but only to the extent permitted by the City in which the Premises
are located and all agencies and governmental authorities having jurisdiction of the Premises. 

  
 1 

 1.9 Guarantor. None 

1.10 Addenda. Attached hereto are the following Addenda, all of which constitute a part of this Lease: 

Addendum 1:       Options to Extend 

Addendum 2:       Right of First Offer 

Addendum 3:       Right of First Refusal 

1.11 Exhibits. Attached hereto are the following Exhibits, all of which constitute a part of this Lease: 

 

			
	Exhibit A:	  	Description of Premises.
	Exhibit B:	  	Commencement Date Certificate.
	Exhibit C:	  	Tenant Move-in and Lease Renewal Environmental Questionnaire
	Exhibit D:	  	Move Out Standards
	Exhibit E:	  	Rules and Regulations
	Exhibit F:	  	Tenant Improvements
	Exhibit G:	  	Clean Room Equipment

 1.12 Address
for Rent Payments. All amounts payable by Tenant to Landlord shall, until further notice from Landlord, be paid to Landlord at the following address: 
 Willow Park Holding Company II, L.P. 
 c/o AMB Property Corporation 

P.O. Box 6156 

Hicksville, NY 11802-6156 
 1.13 Brokers. Tenant represents that it has not dealt with any real estate brokers or agents other than Cassidy Turley BT Commercial representing Landlord and Cornish & Carey
Commercial representing Tenant (collectively, the “Brokers”). The Brokers shall receive commissions pursuant to a separate listing agreement with Landlord. 
 2. Premises and Common Areas. 
 2.1 Letting. Landlord hereby
leases to Tenant and Tenant hereby leases from Landlord the Premises upon all of the terms, covenants, and conditions, set forth in this Lease. Any statement of square footage set forth in this Lease or that may have been used in calculating Base
Rent and/or Operating Expenses is an approximation which Landlord and Tenant agree is reasonable, and the Base Rent and Tenant’s Share based thereon is not subject to revision whether or not the actual square footage is more or less. Tenant
accepts the Premises in its present “As-Is” condition, state of repair and operating order. On the Commencement Date, Landlord shall deliver the Premises, clean room, HVAC systems serving the lab, roof and lights in good working order and
repair with the existing building operating systems, including electrical, mechanical, plumbing, lighting and sprinkler systems in good working order and repair. Tenant shall have a warranty period of one hundred twenty (120) days
(i) (which warranty period shall commence fifteen (15) days following the Commencement Date) with respect to the clean room and HVAC systems serving the lab to confirm such condition and (ii) (which warranty period shall commence one
(1) month following the Rent Commencement Date) with respect to the remaining elements of the Building referenced above to confirm such condition. Tenant’s failure to notify Landlord in writing within such respective one hundred twenty
(120) day periods of any deficiencies in such systems shall be deemed Tenant’s approval of the condition thereof. 

2.2 Common Areas - Definition. “Common Areas” are all areas and facilities outside the Premises and within the
exterior boundary line of the Industrial Center and interior utility raceways within the Premises that are provided and designated by the Landlord from time to time for the general nonexclusive use of Landlord, Tenant, and other tenants of the
Industrial Center and their respective employees, suppliers, shippers, tenants, contractors, and invitees. 
 2.3 Common
Areas - Tenant’s Rights. Landlord hereby grants to Tenant, for the benefit of Tenant and its employees, suppliers, shippers, contractors, customers, and invitees, during the term of this Lease, the nonexclusive right to use, in common
with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges reserved by Landlord under the terms hereof or under the terms of any rules and regulations or covenants, conditions,
and restrictions governing the use of the Industrial Center. 
 2.4 Common Areas - Rules and Regulations. Landlord
shall have the exclusive control and management of the Common Areas and shall have the right, from time to time, to establish, modify, amend, and enforce reasonable Rules and Regulations with respect thereto in accordance with Paragraph 16.19.

 2.5 Common Area Changes. Landlord shall have the right, in Landlord’s sole discretion, from time to time:

                 (a) To make changes to the Common Areas,
including, without limitation, changes in the locations, size, shape, and number of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways, and utility
raceways; 
 (b) To close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the
Premises remains available; 

  
 2 

 (c) To designate other land outside the boundaries of the Industrial Center to be a part of
the Common Areas; 
 (d) To add additional buildings and improvements to the Common Areas; 

(e) To use the Common Areas while engaged in making additional improvements, repairs, or alterations to the Industrial Center, or any
portion thereof; and 
 (f) To do and perform such other acts and make such other changes in, to, or with respect to the Common
Areas and Industrial Center as Landlord may, in the exercise of sound business judgment, deem to be appropriate. 
 2.6
Parking. At no additional cost to Tenant, Tenant may use Tenant’s Share of the undesignated vehicle parking spaces, on an unreserved and unassigned basis, on those portions of the Common Areas designated by Landlord for such
parking. Landlord shall exercise reasonable efforts to ensure that such spaces are available to Tenant for its use, but Landlord shall not be required to enforce Tenant’s right to use the same. Tenant shall not use more parking spaces than
such number. Such parking spaces shall be used only for parking by vehicles no larger than full sized passenger automobiles or pick-up trucks and in no event shall Tenant or any of Tenant’s Entities park or permit any parking of vehicles
overnight. Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant’s employees, suppliers, shippers, customers or invitees to be loaded, unloaded or parked in areas other than those designated by
Landlord for such activities. If Tenant permits or allows any of the prohibited activities described herein, then Landlord shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow
away the vehicle involved and charge the cost to Tenant, which cost shall be immediately payable as additional rent upon demand by Landlord. Landlord may change the number of parking spaces and configuration of the parking areas at any time, and may
assign reserved parking spaces to any tenant, in Landlord’s sole discretion; provided, Landlord shall not reduce Tenant’s Share of undesignated vehicle parking spaces. 

2.7 Access. Subject to emergencies, Applicable Requirements (defined below) and the terms of Paragraphs 9 and 14,
Landlord shall use its commercially reasonable efforts to provide access to Tenant (i) through that certain gate which separates Adams Court and the Phase, twenty four (24) hours a day, seven (7) days a week and (ii) to the
Premises twenty four (24) hours a day, seven (7) days a week. 
 3. Term. 

3.1 Term. The Commencement Date, Expiration Date, and Term of this Lease are as specified in Paragraph 1.3. 

3.2 Delay in Possession. If for any reason Landlord cannot deliver possession of the Premises to Tenant by the Commencement
Date, Landlord shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or the obligations of Tenant hereunder. In such case, Tenant shall not, except as otherwise provided herein, be obligated to pay
Rent or perform any other obligation of Tenant under the terms of this Lease until Landlord delivers possession of the Premises to Tenant. In the event Landlord fails to deliver the Premises to Tenant on or before March 1, 2011 (which date
shall be extended by Tenant Delays (defined below) and Force Majeure Delays (defined below)), Tenant shall have the right to terminate this Lease by delivering written notice of such termination to Landlord on or before March 10, 2011
(provided, in the event Landlord delivers possession of the Premises on or before March 10, 2011, Tenant’s written notice of termination shall be null and void, and of no force or effect). Within ten (10) days following such
termination, Tenant shall reimburse Landlord for all Landlord funded tenant improvement or architectural costs and permitting costs associated with Tenant’s potential occupancy of the Building. For purposes of this Paragraph 3.2, the term
“Force Majeure Delays” means delays due to (i) acts or events beyond Landlord’s control including, but not limited to, acts of God, earthquakes, strikes, lockouts, boycotts, casualties, discontinuance of any utility or other
service, moratoriums, governmental agencies, delays on the part of governmental agencies and weather, and (ii) any requirements of the fire department, building and/or planning department, building inspectors or any other agency having
jurisdiction over the Building. Also for purposes of this Paragraph 3.2, the term “Tenant Delays” means any delay attributable to Tenant and/or any Tenant Entity (defined below) or Tenant’s Permitted Use, including, but not limited
to, any of the following described events or occurrences: (x) the performance of work in or about the Premises by any person, firm or corporation employed by or on behalf of Tenant, and/or (y) any and all delays caused by or arising from
acts or omissions of Tenant and/or any Tenant Entity, in any manner whatsoever. 
 3.3 Commencement Date
Certificate. At the request of Landlord, Tenant shall execute and deliver to Landlord a completed certificate (“Commencement Date Certificate”) in the form attached hereto as Exhibit B. 

4. Rent. 

        4.1 Base Rent. Tenant shall pay to Landlord Base Rent and other monetary obligations of
Tenant to Landlord under the terms of this Lease (such other monetary obligations are herein referred to as “Additional Rent”) in lawful money of the United States, without offset or deduction, in advance on or before the first day of each
month of the Term; provided, except as set forth in Paragraph 1.4 above, Tenant shall not be obligated to pay Base Rent for the first six (6) months and fifteen (15) days following the Commencement Date. Base Rent and Additional Rent for
any period during the term hereof which is for less than one full month shall be prorated based upon the actual number of days of the month involved. Payment of Base Rent and Additional Rent shall be made to Landlord at its address stated herein or
to such other persons or at such other addresses as Landlord may from time to time designate in writing to Tenant. Base Rent and Additional Rent are collectively referred to as “Rent.” All monetary obligations of Tenant to Landlord under
the terms of this Lease are deemed to be Rent. 

  
 3 

 4.2 Operating Expenses. Commencing on the Rent
Commencement Date, Tenant shall pay to Landlord on the first (1st) day of each month during the Term hereof, in addition to the Base Rent, Tenant’s Share of all Operating Expenses in accordance with the following provisions. 

(a) “Operating Expenses” are all costs incurred by Landlord relating to the ownership and/or operation of the Industrial
Center, Phase, Building, and Premises including, but not limited to, the following: 
 (i) Expenses relating to the ownership,
management, maintenance, repair, replacement and/or operation of the Common Areas, including, without limitation, parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, rail spurs, landscaped
areas, striping, bumpers, irrigation systems, drainage systems, lighting facilities, fences and gates, exterior signs, and/or tenant directories. 
 (ii) Water, gas, electricity, telephone, and other utilities not paid for directly by tenants of the Industrial Center. 
 (iii) Trash disposal, snow removal, security and the management and administration of any and all portions of the Industrial Center, including, without limitation, a property management fee, accounting,
auditing, billing, postage, salaries and benefits for clerical and supervisory employees, whether located at the Industrial Center or off-site, payroll taxes and legal and accounting costs and all fees, licenses and permits related to the ownership,
operation and management of the Industrial Center; 
 (iv) Reserves set aside for maintenance, repair and replacements of
improvements within the Industrial Center. 
 (v) Real Property Taxes. 

(vi) Premiums and all applicable deductibles for the insurance policies maintained by Landlord under Paragraph 8 below (excluding the
premiums and deductibles paid by Tenant to maintain the insurance coverage Tenant is required to maintain pursuant to Paragraph 8.2(a) below). 
 (vii) Environmental monitoring and insurance programs. 
 (viii) Monthly
amortization of capital improvements to any portion of the Industrial Center which are not expensed by Landlord, including any capital improvements made pursuant to Paragraph 7.2 below which are subject to reimbursement under this Paragraph 4.2. The
monthly amortization of any such capital improvement shall be the sum of the (a) quotient obtained by dividing the cost of the capital improvement by Landlord’s reasonable estimate of the number of months of useful life of such improvement
plus (b) an amount equal to the cost of the capital improvement with interest thereon at the lesser of 10% per annum or the maximum interest rate permitted by law. 
 (ix) Maintenance of the Industrial Center, including, but not limited to, painting, caulking, and repair and replacement of Building components, including, but not limited to, roof membrane, elevators,
and fire detection and sprinkler systems. 
 (x) Heating, ventilating, and air conditioning systems (“HVAC”) the
costs for which are not the sole responsibility of Tenant or another tenant of the Industrial Center. 
 (b) Tenant’s Share
of Operating Expenses that are not specifically attributed to the Premises, Building or Phase (“Common Area Operating Expenses”) shall be that percentage shown in Paragraph 1.5(a). Tenant’s Share of Operating Expenses that are
attributable to the Building (“Building Operating Expenses”) shall be that percentage shown in Paragraph 1.5(b). Tenant’s Share of Phase Operating Expenses that are attributable to the Phase (“Phase Operating Expenses”)
shall be that percentage shown in Paragraph 1.5(c). Landlord, in its sole discretion, shall determine which Operating Expenses are Common Area Operating Expenses, Building Operating Expenses, Phase Operating Expenses or expenses to be entirely borne
by Tenant. 
 (c) The inclusion of the improvements, facilities, and services set forth in Subparagraph 4.2(a) shall not impose
any obligation upon Landlord either to have said improvements or facilities or to provide those services. 
 (d) Tenant shall
pay monthly in advance, on the same day that the Base Rent is due, Tenant’s Share of the expenses set forth in Paragraph 1.6. Landlord shall deliver to Tenant within 90 days after the expiration of each calendar year a reasonably detailed
statement showing Tenant’s Share of the actual expenses incurred during the preceding year. If Tenant’s estimated payments under this Paragraph 4(d) during the preceding year exceed Tenant’s Share as indicated on said statement,
Tenant shall be credited the amount of such overpayment against Tenant’s Share of expenses next becoming due. If Tenant’s estimated payments under this Paragraph 4.2(d) during said preceding year were less than Tenant’s Share as
indicated on said statement, Tenant shall pay to Landlord the amount of the deficiency within 10 days after delivery by Landlord to Tenant of said statement. At any time following at least ten (10) days written notice to Tenant, Landlord may
adjust the amount of the estimated Tenant’s Share of expenses to reflect Landlord’s estimate of such expenses for the year. 

  
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 (e) Notwithstanding anything to the contrary contained herein, for purposes of this Lease,
the term “Operating Expenses” shall not include the following: (i) costs (including permit, license, and inspection fees) incurred in renovating, improving, decorating, painting, or redecorating vacant space or space for other tenants
within the Industrial Center; (ii) legal and auditing fees (other than those fees reasonably incurred in connection with the ownership and operation of all or any portion the Industrial Center); (iii) leasing commissions, advertising
expenses, and other costs incurred in connection with the original leasing of the Industrial Center or future re-leasing of any portion of the Industrial Center; (iv) depreciation of the Building or any other improvements situated within the
Industrial Center; (v) any items for which Landlord is actually and directly reimbursed by any other tenant of the Industrial Center; (vi) costs of repairs or other work necessitated by fire, windstorm or other casualty (excluding any
deductibles) and/or costs of repair or other work necessitated by the exercise of the right of eminent domain to the extent insurance proceeds or a condemnation award, as applicable, is actually received by Landlord for such purposes; provided, such
costs of repairs or other work shall be paid by the parties in accordance with the provisions of Sections 7, 8 and 9 below; (vii) other than any interest charges as expressly provided for in this Lease, any interest or payments on any financing
for any portion of the Industrial Center, interest and penalties incurred as a result of Landlord’s late payment of any invoice (provided that Tenant pays Tenant’s Share of expenses to Landlord when due as set forth herein), and any bad
debt loss, rent loss or reserves for same; (viii) any payments under a ground lease or master lease; (ix) any capital improvements, unless such capital improvements are made (a) in order to replace any building equipment needed to
operate the Building or Industrial Center at the same quality levels (or levels of efficiency) as prior to the replacement, or (b) with the intention of reducing the costs of the operations of the Building and/or Industrial Center, or
(c) to comply with government regulations, laws, or ordinances including, but not limited to the Americans with Disabilities Act, which first came into effect following the Commencement Date; (x) costs incurred because Landlord or another
tenant actually violated the terms and conditions of any lease for premises within the Industrial Center or due to Landlord’s gross negligence or willful misconduct; (xi) any items for which Landlord is actually reimbursed by insurance or
by direct reimbursement by any other tenant of the Industrial Center; (xii) costs associated with the investigation and/or remediation of Hazardous Substances (hereafter defined) present in, on or about any portion of the Industrial Center,
unless such costs and expenses are the responsibility of Tenant as provided in Paragraph 6.2 hereof; (xiii) Landlord’s cost for the repairs and maintenance items set forth in the first (1st) sentence (and subject to the terms) of
Paragraph 7.2; (xiv) overhead and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in the Industrial Center to the extent the same exceeds the costs of such by unaffiliated third parties
on a competitive basis; or any costs included in Operating Expenses representing an amount paid to a person, firm, corporation or other entity related to Landlord which is in excess of the amount which would have been paid in the absence of such
relationship; (xv) the cost of correcting any building code or other code violations which were violations prior to the Commencement Date of this Lease; and (xvi) wages, salaries, or other compensation paid to any executive employees of
Landlord above the grade of building manager. 
 (f) After delivery to Landlord of at least thirty (30) days’ prior
written notice, Tenant, at its sole cost and expense through any accountant designated by it, shall have the right to examine and/or audit the books and records evidencing such expenses for the previous one (1) calendar year, during
Landlord’s reasonable business hours but not more frequently than once during any calendar year. Tenant may not compensate any such accountant on a contingency fee basis. The results of any such audit (and any negotiations between the parties
related thereto) shall be maintained strictly confidential by Tenant, its lawyers and its accounting firm and shall not be disclosed, published or otherwise disseminated to any other party other than to Landlord and its authorized agents, except as
otherwise required by Applicable Requirements or court order. Landlord and Tenant each shall use its commercially reasonable efforts to cooperate in such negotiations and to promptly resolve any discrepancies between Landlord and Tenant in the
accounting of such expenses. 
 5. Security Deposit. Tenant shall deposit with Landlord upon Tenant’s execution hereof the Security
Deposit set forth in Paragraph 1.7 as security for Tenant’s faithful performance of Tenant’s obligations under this Lease. If Tenant fails to pay Base Rent or Additional Rent or otherwise defaults under this Lease (as defined in Paragraph
13.1), Landlord may use the Security Deposit for the payment of any amount due Landlord or to reimburse or compensate Landlord for any liability, cost, expense, loss, or damage (including reasonable attorneys’ fees) which Landlord may suffer or
incur by reason thereof. Tenant shall on demand pay Landlord the amount so used or applied so as to restore the Security Deposit to the amount set forth in Paragraph 1.7. Landlord shall not be required to keep all or any part of the Security Deposit
separate from its general accounts. Landlord shall, at the expiration or earlier termination of the Term hereof and after Tenant has vacated the Premises, return to Tenant that portion of the Security Deposit not used or applied by Landlord. No part
of the Security Deposit shall be considered to be held in trust, to bear interest, or to be prepayment for any monies to be paid by Tenant under this Lease. 
 6. Use. 
         6.1 Permitted Use.
Tenant shall use and occupy the Premises only for the Permitted Use set forth in Paragraph 1.8. Tenant shall not commit any nuisance, permit the emission of any objectionable noise or odor, suffer any waste, make any use of the Premises which is
contrary to any law or ordinance, or which will invalidate or increase the premiums for any of Landlord’s insurance. Tenant shall not service, maintain, or repair vehicles on the Premises, Building, or Common Areas. Tenant shall not store
foods, pallets, drums, or any other materials outside the Premises. Tenant’s use is subject to, and at all times Tenant shall comply with any and all Applicable Requirements, defined below. Landlord reserves to itself the right, from time to
time, to grant, without the consent of Tenant, such easements, rights and dedications that Landlord deems reasonably necessary, and to cause the recordation of parcel or subdivision maps and/or restrictions, so long as such easements, rights,
dedications, maps and restrictions, as applicable, do not materially and adversely interfere with Tenant’s operations in the Premises. Tenant agrees to sign any documents reasonably requested by Landlord to effectuate any such easements,
rights, dedications, maps or restrictions. Tenant shall not initiate, submit an application for, or otherwise request, any land use approvals or entitlements with respect to the Premises or any other portion of the Industrial Center, including
without limitation, any variance, conditional use permit or rezoning, without first obtaining Landlord’s prior written consent thereto, which consent may be given or withheld in Landlord’s sole discretion. 

  
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 6.2 Hazardous Substances. 

(a) Reportable Uses Require Consent. The term, “Hazardous Substance,” as used in this Lease, shall mean any product,
substance, chemical, material, or waste whose presence, nature, quantity, and/or intensity of existence, use, manufacture, disposal, transportation, spill, release, or effect, either by itself or in combination with other materials expected to be on
the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the environment, or the Premises; (ii) regulated or monitored by any governmental authority; or (iii) a basis for potential liability of
Landlord to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substance shall include, but not be limited to, hydrocarbons, petroleum, gasoline, crude oil, or any products or by-products thereof.
Tenant shall not engage in any activity in or about the Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances without the express prior written consent of Landlord and compliance in a timely manner (at
Tenant’s sole cost and expense) with all Applicable Requirements (as defined in Paragraph 6.3). “Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation,
possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration, or business plan is required to be filed with, any governmental authority, and
(iii) the presence in, on, or about the Premises of a Hazardous Substance with respect to which any Applicable Requirements require that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding
the foregoing, Tenant may, without Landlord’s prior consent, but upon notice to Landlord and in compliance with all Applicable Requirements, use any ordinary and customary materials reasonably required to be used by Tenant in the normal course
of the Permitted Use, so long as such use is not a Reportable Use and does not expose the Premises or neighboring properties to any meaningful risk of contamination or damage, or expose Landlord to any liability therefor. In addition, Landlord may
(but without any obligation to do so) condition its consent to any Reportable Use of any Hazardous Substance by Tenant upon Tenant’s giving Landlord such additional assurances as Landlord, in its reasonable discretion, deems necessary to
protect itself, the public, the Premises, and the environment against damage, contamination, injury, and/or liability therefor, including but not limited to the installation (and, at Landlord’s option, removal on or before Lease expiration or
earlier termination) of reasonably necessary protective modifications to the Premises (such as concrete encasements) and/or the deposit of an additional Security Deposit. 
 (b) Duty to Inform Landlord. If Tenant knows, or has reasonable cause to believe, that a Hazardous Substance is located in, under, or about the Premises or the Building, Tenant shall immediately
give Landlord written notice thereof, together with a copy of any statement, report, notice, registration, application, permit, business plan, license, claim, action, or proceeding given to, or received from, any governmental authority or private
party concerning the presence, spill, release, discharge of, or exposure to such Hazardous Substance. Tenant shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including, without
limitation, through the plumbing or sanitary sewer system). 
 (c) Indemnification. Tenant shall indemnify, protect,
defend, and hold Landlord, Landlord’s affiliates, Lenders, and the officers, directors, shareholders, partners, employees, managers, independent contractors, attorneys, and agents of the foregoing (“Landlord Entities”) and the
Premises harmless from and against any and all damages, liabilities, judgments, costs, claims, liens, expenses, penalties, loss of permits, and reasonable attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance
on or brought onto the Premises by or for Tenant or by any of Tenant’s employees, agents, contractors, servants, visitors, suppliers, or invitees (such employees, agents, contractors, servants, visitors, suppliers, and invitees as herein
collectively referred to as “Tenant Entities”). Tenant’s obligations under this Paragraph 6.2(c) shall include, but not be limited to, the effects of any contamination or injury to person, property, or the environment created or
suffered by Tenant, and the cost of investigation (including reasonable consultants’ and attorneys’ fees and testing), removal, remediation, restoration and/or abatement thereof, or of any contamination therein involved. Tenant’s
obligations under this Paragraph 6.2(c) shall survive the Expiration Date or earlier termination of this Lease. 
 6.3
Tenant’s Compliance with Requirements. Tenant shall, at Tenant’s sole cost and expense, fully, diligently, and in a timely manner comply with all “Applicable Requirements,” which term is used in this Lease to mean all
laws, rules, regulations, ordinances, directives, covenants, easements, and restrictions of record, permits, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Landlord’s engineers and/or
consultants, relating in any manner to the Premises (including but not limited to matters pertaining to (a) industrial hygiene, (b) environmental conditions on, in, under, or about the Premises, including soil and groundwater conditions,
and (c) the use, generation, manufacture, production, installation, maintenance, removal, transportation, storage, spill, or release of any Hazardous Substance), now in effect or which may hereafter come into effect. Tenant shall, within 5 days
after receipt of Landlord’s written request, provide Landlord with copies of all documents and information evidencing Tenant’s compliance with any Applicable Requirements, and shall immediately upon receipt notify Landlord in writing (with
copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint, or report pertaining to or involving failure by Tenant or the Premises to comply with any Applicable Requirements. 

        6.4 Inspection; Compliance with Law. In addition to Landlord’s environmental
monitoring and insurance program, the cost of which is included in Operating Expenses, Landlord and the holders of any mortgages, deeds of trust, or ground leases on the Premises (“Lenders”) shall have the right to enter the Premises at
any time in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises and for verifying compliance by Tenant with this Lease and all Applicable Requirements; provided, however, Tenant
shall have the right to have a representative present during such inspections and such inspections shall occur upon not less than 48 hours notice during normal business hours. It is further agreed that Landlord shall have the right to use any and
all means Landlord deems necessary to enter the Premises in an emergency and in the case of emergency advance notice shall not be required, provided that Landlord agrees to use its commercially reasonable efforts to contact Tenant’s 24/7

  
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security number (650-269-8434) to notify Tenant of the emergency. Landlord shall use commercially reasonable efforts to minimize any interference with Tenant’s business operations during any
entry into the Premises. Landlord shall be entitled to employ experts and/or consultants in connection therewith to advise Landlord with respect to Tenant’s installation, operation, use, monitoring, maintenance, or removal of any Hazardous
Substance on or from the Premises. The cost and expenses of any such inspections shall be paid by the party requesting same unless a violation of Applicable Requirements exists or is imminent, or the inspection is requested or ordered by a
governmental authority. Tenant shall upon request reimburse Landlord or Landlord’s Lender, as the case may be, for the costs and expenses of such inspections. 
 6.5 Tenant Move-in Questionnaire. Prior to executing this Lease, Tenant has completed, executed and delivered to Landlord Tenant’s Move-in and Lease Renewal Environmental Questionnaire
(the “Tenant Move-in Questionnaire”), a copy of which is attached hereto as Exhibit C and incorporated herein by this reference. Tenant covenants, represents and warrants to Landlord that the information on the Tenant Move-in
Questionnaire is true and correct and accurately describes the use(s) of Hazardous Substances which will be made and/or used on the Premises by Tenant. Subject to all of the terms and conditions of this Lease, Landlord consents to Tenant’s use
of such Hazardous Substances. 
 6.6 Exculpation. Tenant shall neither be liable for nor otherwise obligated to
Landlord under any provision of this Lease with respect to (i) any claim, remediation obligation, investigation obligation, liability, cause of action, attorney’s fees, consultants’ cost, expense or damage resulting from any Hazardous
Substance present in, on or about the Premises, the Building or the Industrial Center to the extent neither caused nor otherwise permitted, directly or indirectly, by Tenant or the Tenant Entities; or (ii) the removal, investigation, monitoring
or remediation of any Hazardous Substance present in, on or about the Premises, the Building or the Industrial Center caused by any source, including third parties other than Tenant and the Tenant Entities, as a result of or in connection with the
acts or omissions of persons other than Tenant or the Tenant Entities; provided, however, Tenant shall be fully liable for and otherwise obligated to Landlord under the provisions of this Lease for all liabilities, costs, damages, penalties, claims,
judgments, expenses (including without limitation, reasonable attorneys’ and experts’ fees and costs) and losses to the extent (a) Tenant or any of the Tenant Entities contributes to the presence of such Hazardous Substances or Tenant
and/or any of the Tenant Entities exacerbates the conditions caused by such Hazardous Substances, or (b) Tenant and/or the Tenant Entities allows or permits persons over which Tenant or any of the Tenant Entities has control and/or for which
Tenant or any of the Tenant Entities are legally responsible for, to cause such Hazardous Substances to be present in, on, under, through or about any portion of the Premises, the Building or the Industrial Center, or does not take all reasonably
appropriate actions to prevent such persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally responsible from causing the presence of Hazardous Substances in, on, under,
through or about any portion of the Premises, the Building or the Industrial Center. 
 6.7 Disclosure. The land
described herein contains residual Hazardous Substances. Such condition renders the land and the Landlord, Tenant or other possessor of the land subject to requirements, restrictions, provisions, and liabilities contained in Chapter 6.5 and Chapter
6.8 of Division 20 of the Health and Safety Code, as same may be amended from time, and any successor statutes thereof. This statement is not a declaration that a hazard to public health, safety and welfare exists. 

6.8 Landlord Indemnification. With respect to only those Hazardous Substances present on, in or under the Industrial Center
as of the date of this Lease (the “Existing Hazardous Substances”), Landlord agrees to indemnify, defend (with counsel reasonably acceptable to Tenant) and hold Tenant harmless from and against any and all claims, judgments, damages,
penalties, fines, liabilities, losses, suits, administrative proceedings and costs (including, but not limited to, reasonable attorneys’ and consultant fees and court costs), arising at any time during or after the Term of this Lease, to the
extent arising from (1) any of the Existing Hazardous Substances and/or (2) the removal, investigation, monitoring or remediation of any of the Existing Hazardous Substances; provided, however, Landlord shall not indemnify, defend or hold
Tenant harmless to the extent (x) Tenant or any of the Tenant Entities contributes to or has contributed to the presence of such Existing Hazardous Substances or Tenant and/or any of the Tenant Entities exacerbates the conditions caused by such
Existing Hazardous Substances, or (y) Tenant and/or any of the Tenant Entities allows or permits persons over which Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally responsible
for, to cause such Existing Hazardous Substances to be present in, on, under, through or about any portion of the Premises, the Building or the Industrial Center, or does not take all reasonably appropriate actions to prevent such persons over which
Tenant or any of the Tenant Entities has control and/or for which Tenant or any of the Tenant Entities are legally responsible from causing the presence of Existing Hazardous Substances in, on, under, through or about any portion of the Premises,
the Building or the Industrial Center. Landlord’s obligations under this Paragraph 6.8 shall survive the Expiration Date or earlier termination of this Lease. 
 7. Maintenance, Repairs, Trade Fixtures and Alterations. 

        7.1 Tenant’s Obligations. Subject to the provisions of Paragraph 7.2 (Landlord’s
Obligations), Paragraph 9 (Damage or Destruction), and Paragraph 14 (Condemnation), Tenant shall, at Tenant’s sole cost and expense and at all times, keep the Premises and every part thereof in good order, condition, and repair (whether or not
such portion of the Premises requiring repair, or the means of repairing the same, are reasonably or readily accessible to Tenant and whether or not the need for such repairs occurs as a result of Tenant’s use, any prior use, the elements, or
the age of such portion of the Premises) including, without limiting the generality of the foregoing, all equipment or facilities specifically serving the Premises, such as plumbing, heating, ventilating, air conditioning, electrical, lighting
facilities, boilers, fired or unfired pressure vessels, fire hose connectors if within the Premises, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights, but excluding any items
which are the responsibility of Landlord pursuant to Paragraph 7.2 below. Tenant’s obligations shall include restorations, replacements, or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good

  
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order, condition, and state of repair. Subject to the terms of Paragraph 8.4 of this Lease, Tenant shall also be solely responsible for the cost of all repairs and replacements caused by the
negligent acts or omissions or intentional misconduct by Tenant or Tenant’s employees, contractors, agents, guests or invitees. If Tenant refuses or neglects to perform its obligations under this paragraph to the reasonable satisfaction of
Landlord, Landlord may, but without obligation to do so, at any time perform the same without Landlord having any liability to Tenant for any loss or damage that may accrue to Tenant’s personal property or equipment (“Tenant’s
Property”) or to Tenant’s business by reason thereof. If Landlord performs any such obligations, Tenant shall pay to Landlord, as Additional Rent, Landlord’s costs and expenses incurred therefor. Subject to Tenant obtaining
Landlord’s prior written consent and imposing such conditions as Landlord deems reasonably necessary, including without limitation, having a Landlord representative present, Tenant shall have the right to access the roof of the Building for
purposes of performing Tenant’s obligations under this Paragraph 7.1. 
 7.2 Landlord’s Obligations.
Subject to the provisions of Paragraph 6 (Use), Paragraph 7.1 (Tenant’s Obligations), Paragraph 9 (Damage or Destruction), and Paragraph 14 (Condemnation), Landlord, at its expense and not subject to the reimbursement requirements of Paragraph
4.2, shall maintain and repair the roof structure, foundations and the structure of the floors and of the exterior walls of the Building. Landlord, subject to reimbursement pursuant to Paragraph 4.2, shall maintain and repair the Building roof
membrane, Common Areas, and utility systems within the Industrial Center which are outside of the Premises (including, without limitation, fire protection services and plumbing, mechanical (including HVAC) and electrical systems serving the Building
but excluding the plumbing, mechanical and electrical systems exclusively serving the Premises), and the parking areas, pavement, landscaping, sprinkler systems, sidewalks, driveways, curbs and lighting systems in the Common Areas. In addition,
Landlord may, in Landlord’s sole discretion, and at Tenant’s sole cost, elect to contract for all or any portion of the maintenance, repair and/or replacement of the HVAC systems serving the Premises. 

7.3 Alterations. Tenant shall not install any signs, fixtures, improvements, nor make or permit any other alterations or
additions (individually, an “Alteration”, and collectively, the “Alterations”) to the Premises without the prior written consent of Landlord, except for Alterations that cumulatively cost less than Twenty Five Thousand Dollars
($25,000.00) and which do not affect the Building systems or the structural integrity or structural components of the Premises or the Building. In all events, Tenant shall deliver at least ten (10) days prior notice to Landlord, from the date
Tenant intends to commence construction, sufficient to enable Landlord to post a Notice of Non-Responsibility and Tenant shall obtain all permits or other governmental approvals prior to commencing any of such work and deliver a copy of same to
Landlord. All Alterations shall be at Tenant’s sole cost and expense in accordance with plans and specifications which have been previously submitted to and approved in writing by Landlord, and shall be installed by a licensed, insured, and
bonded contractor (reasonably approved by Landlord) in compliance with all applicable Laws (including, but not limited to, the ADA), and all recorded matters and rules and regulations of the Industrial Center. In addition, all work with respect to
any Alterations must be done in a good and workmanlike manner. Landlord’s approval of any plans, specifications or working drawings for Tenant’s Alterations shall not create nor impose any responsibility or liability on the part of
Landlord for their completeness, design sufficiency, or compliance with any laws, ordinances, rules and regulations of governmental agencies or authorities. In performing the work of any such Alterations, Tenant shall have the work performed in such
a manner as not to obstruct access to the Industrial Center, or the Common Areas for any other tenant of the Industrial Center, and as not to obstruct the business of Landlord or other tenants in the Industrial Center, or interfere with the labor
force working in the Industrial Center. Except with respect to the Tenant Improvements set forth in Exhibit F attached hereto, as Additional Rent hereunder, Tenant shall reimburse Landlord, within ten (10) days after demand, for
actual and reasonable legal, engineering, architectural, planning and other expenses incurred by Landlord in connection with Tenant’s Alterations, plus Tenant shall pay to Landlord a fee equal to one percent (1%) of the total cost of the
Alterations. If Tenant makes any Alterations, Tenant agrees to carry “Builder’s All Risk” insurance, in an amount approved by Landlord and such other insurance as Landlord may require, it being understood and agreed that all of such
Alterations shall be insured by Tenant in accordance with the terms of this Lease immediately upon completion thereof. Tenant shall keep the Premises and the property on which the Premises are situated free from any liens arising out of any work
performed, materials furnished or obligations incurred by or on behalf of Tenant. Tenant shall, prior to construction of any and all Alterations, cause its contractor(s) and/or major subcontractor(s) to provide insurance as reasonably required by
Landlord, and Tenant shall provide such assurances to Landlord, including without limitation, waivers of lien, surety company performance bonds as Landlord shall require to assure payment of the costs thereof to protect Landlord and the Industrial
Center from and against any loss from any mechanic’s, materialmen’s or other liens. 
 7.4
Surrender/Restoration. Tenant shall surrender the Premises by the end of the last day of the Lease term or any earlier termination date, clean and free of debris and in good operating order, condition, and state of repair, ordinary wear
and tear excepted and in accordance with the Move Out Standards set forth in Exhibit D to this Lease. Without limiting the generality of the above, Tenant shall (i) remove all Alterations designated by Landlord in Landlord’s
sole discretion, personal property, trade fixtures, and floor bolts, patch all floors, and cause all lights to be in good operating condition, except Tenant shall not remove Tenant Improvements described in Exhibit F to this Lease and
(ii) repaint the exterior of the Building to the standard colors then in use by Landlord for the Industrial Center. 
 8. Insurance;
Indemnity. 
         8.1 Payment of Premiums and Deductibles. The cost of the
premiums and all applicable deductibles for the insurance policies maintained by Landlord under this Paragraph 8 shall be a Common Area Operating Expense reimbursable pursuant to Paragraph 4.2 hereof. Premiums for policy periods commencing prior to,
or extending beyond, the term of this Lease shall be prorated to coincide with the corresponding Commencement Date and Expiration Date. 

  
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 8.2 Tenant’s Insurance. 

(a) At its sole cost and expense, Tenant shall maintain in full force and effect during the Term of the Lease the following insurance
coverages insuring against claims which may arise from or in connection with the Tenant’s operation and use of the Premises. 
 (i) Commercial General Liability insurance with minimum limits of $1,000,000 per occurrence and $3,000,000 general aggregate for bodily injury, personal injury, and property damage. If required by
Landlord, liquor liability coverage will be included. Such insurance shall be endorsed to include Landlord and Landlord Entities as additional insureds, shall be primary and noncontributory with any Landlord insurance, and shall provide severability
of interests between or among insureds. 
 (ii) Workers’ Compensation insurance with statutory limits and Employers
Liability with a $1,000,000 per accident limit for bodily injury or disease. 
 (iii) Automobile Liability insurance covering
all owned, nonowned, and hired vehicles with a $1,000,000 per accident limit for bodily injury and property damage. 
 (iv)
Property insurance against “all risks” at least as broad as the current ISO Special Form policy (and Tenant shall not be obligated to carry flood or earthquake coverage provided Tenant agrees that Landlord shall not be liable for any
damage or loss arising from flood or earthquake and Tenant waives and releases Landlord from all claims, losses, damages, liabilities, judgments and costs arising from or related to Tenant not carrying such flood or earthquake coverage) for loss to
any tenant improvements or betterments, floor and wall coverings, and business personal property on a full insurable replacement cost basis with no coinsurance clause, and Business Income insurance covering at least three (3) months of loss of
income and continuing expense. 
 (b) Tenant shall deliver to Landlord certificates of all insurance reflecting evidence of
required coverages prior to initial occupancy, and annually thereafter. 
 (c) Intentionally Omitted. 

(d) All insurance required under Paragraph 8.2 (i) shall be issued by insurers licensed to do business in the state in which the
Premises are located and which are rated A:VII or better by Best’s Key Rating Guide and (ii) shall be endorsed to provide at least 30-days prior notification of cancellation in coverage to said additional insureds. 

8.3 Landlord’s Insurance. Landlord may, but shall not be obligated to, maintain risk of direct physical loss property
damage insurance coverage, including earthquake and flood, covering the buildings within the Industrial Center, Commercial General Liability insurance, and such other insurance in such amounts and covering such other liability or hazards as deemed
appropriate by Landlord. The amount and scope of coverage of Landlord’s insurance shall be determined by Landlord from time to time in its sole discretion and shall be subject to such deductible amounts as Landlord may elect. Landlord shall
have the right to reduce or terminate any insurance or coverage. 
 8.4 Waiver of Subrogation. To the extent
permitted by law and with permission of their insurance carriers, Landlord and Tenant each waive any right to recover against the other on account of any and all claims Landlord or Tenant may have against the other with respect to property insurance
actually carried, or required to be carried hereunder, to the extent of the proceeds realized from such insurance coverage. 

8.5 Indemnity. Except to the extent caused by the gross active or gross passive negligence or willful misconduct of
Landlord or any Landlord Entity, Tenant shall protect, defend, indemnify, and hold Landlord and Landlord Entities harmless from and against any and all loss, claims, liability, or costs (including court costs and reasonable attorneys’ fees)
incurred by reason of: 
 (a) any damage to any property (including but not limited to property of any Landlord Entity) or
death, bodily, or personal injury to any person occurring in or about the Premises, the Building, or the Industrial Center to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or
omission by or of Tenant, its agents, servants, employees, invitees, contractors, suppliers, subtenants, or visitors; 
 (b) the
conduct or management of any work or anything whatsoever done by the Tenant on or about the Premises or from transactions of the Tenant concerning the Premises; 
 (c) Tenant’s failure to comply with any and all governmental laws, ordinances, and regulations applicable to the condition or use of the Premises or its occupancy; or 

(d) any breach or default on the part of Tenant in the performance of any covenant or agreement to be performed pursuant to this Lease.

                 The provisions of this Paragraph 8.5 shall,
with respect to any claims or liability accruing prior to such termination, survive the Expiration Date or earlier termination of this Lease. 
 8.6 Exemption of Landlord from Liability. Except to the extent caused by the gross active or gross passive negligence or willful misconduct of Landlord or any Landlord Entity, neither
Landlord nor Landlord Entities shall be liable for and Tenant waives any claims against Landlord and Landlord Entities for injury or damage to the 

  
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person or the property of Tenant, Tenant’s employees, contractors, invitees, customers or any other person in or about the Premises, Building or Industrial Center from any cause whatsoever,
including, but not limited to, damage or injury which is caused by or results from (i) fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances,
plumbing, heating, ventilating, air conditioning or lighting fixtures or (ii) from the condition of the Premises, other portions of the Building or Industrial Center. Landlord shall not be liable for any damages arising from any act or neglect
(passive or active) of any other tenants of Landlord or any subtenant or assignee of such other tenants nor from the failure by Landlord to enforce the provisions of any other lease in the Industrial Center. Notwithstanding Landlord’s
negligence (active or passive), gross negligence (active or passive), or breach of this Lease, Landlord shall under no circumstances be liable for (a) injury to Tenant’s business, for any loss of income or profit therefrom or any indirect,
consequential or punitive damages or (b) any damage to property or injury to persons arising from any act of God or war, violence or insurrection, including, but not limited to, those caused by earthquakes, hurricanes, storms, drought, floods,
acts of terrorism, and/or riots. 
 9. Damage or Destruction. 
 9.1 Termination Right. Tenant shall give Landlord immediate written notice of any damage to the Premises. Subject to the provisions of Paragraph 9.2, if the Premises or the Building shall be
damaged to such an extent that there is substantial interference for a period exceeding one hundred eighty (180) consecutive days with the conduct by Tenant of its business at the Premises (provided, up to an additional sixty (60) days
shall be added to such one hundred eighty (180) consecutive day period to account for time Landlord may require to obtain permits for such repairs), then either party, at any time prior to commencement of repair of the Premises and following
ten (10) days written notice to the other party, may terminate this Lease effective thirty (30) days after delivery of such notice to the other party. Within forty five (45) days following the occurrence of such damage, Landlord shall
inform Tenant in writing of Landlord’s estimate of the time required to complete repairs to the Premises. Further, if any portion of the Premises is damaged and is not fully covered by the aggregate of insurance proceeds received by Landlord
and any applicable deductible or if the holder of any indebtedness secured by the Premises requires that the insurance proceeds be applied to such indebtedness, and Tenant does not voluntarily contribute any shortfall thereof to Landlord, then
Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within sixty (60) days after the date of notice to Tenant of any such event. Such termination shall not excuse the performance by Tenant
of those covenants which under the terms hereof survive termination. Rent shall be abated in proportion to the degree of interference during the period that there is such substantial interference with the conduct of Tenant’s business at the
Premises. Abatement of rent and Tenant’s right of termination pursuant to this provision shall be Tenant’s sole remedy with respect to any such damage regardless of the cause thereof. 

9.2 Damage Caused by Tenant. Tenant’s termination rights under Paragraph 9.1 shall not apply if the damage to the
Premises or Building is the result of any act or omission of Tenant or of any of Tenant’s agents, employees, customers, invitees, or contractors. 
 10. Real Property Taxes. 
 10.1 Payment of Real Property
Taxes. Landlord shall pay the Real Property Taxes due and payable during the term of this Lease and, except as otherwise provided in Paragraph 10.3, such payments shall be a Common Area Operating Expense reimbursable pursuant to Paragraph
4.2. 
 10.2 Real Property Tax Definition. As used herein, the term “Real Property Taxes” is any form of
tax or assessment, general, special, ordinary, or extraordinary, imposed or levied upon (a) the Industrial Center or Building, (b) any interest of Landlord in the Industrial Center or Building, (c) Landlord’s right to rent or
other income from the Industrial Center or Building, and/or (d) Landlord’s business of leasing the Premises. Real Property Taxes include (a) any license fee, commercial rental tax, excise tax, improvement bond or bonds, levy, or tax;
(b) any tax or charge which replaces or is in addition to any of such above-described “Real Property Taxes,” and (c) any fees, expenses, or costs (including reasonable attorneys’ fees, expert fees, and the like) incurred by
Landlord in protesting or contesting any assessments levied or any tax rate. Notwithstanding the foregoing, Real Property Taxes shall not include any income taxes levied upon Landlord’s income from leasing the Premises or any other property in
the Industrial Center. Real Property Taxes for tax years commencing prior to, or extending beyond, the term of this Lease shall be prorated to coincide with the corresponding Commencement Date and Expiration Date. 

10.3 Additional Improvements. Operating Expenses shall not include Real Property Taxes attributable to improvements placed
upon the Industrial Center by other tenants or by Landlord for the exclusive enjoyment of such other tenants. Tenant shall, however, pay to Landlord at the time Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real
Property Taxes if assessed by reason of improvements placed upon the Premises by Tenant or at Tenant’s request. 
 10.4
Joint Assessment. If the Building is not separately assessed, Real Property Taxes allocated to the Building shall be a pro rata portion of the Real Property Taxes for all of the land and improvements included within the tax parcel
assessed. 
 10.5 Tenant’s Property Taxes. Tenant shall pay prior to delinquency all taxes assessed against
and levied upon Tenant’s improvements, fixtures, furnishings, equipment, and all personal property of Tenant contained in the Premises or stored within the Industrial Center. 
 11. Utilities. Tenant shall pay directly for all utilities and services supplied to the Premises, including but not limited to electricity, telephone, security, gas, and cleaning of the Premises,
together with any taxes thereon. For any such utility fees or services that are not billed or metered separately to Tenant, including without limitation, water and 

  
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sewer charges, and garbage and waste disposal (collectively, “Utility Expenses”), Tenant shall pay to Landlord Tenant’s Share of Utility Expenses. If Landlord reasonably determines
that Tenant’s Share of Utility Expenses is not commensurate with Tenant’s use of such services, Tenant shall pay to Landlord the amount which is attributable to Tenant’s use of the utilities or similar services, as reasonably
estimated and determined by Landlord, based upon factors such as size of the Premises and intensity of use of such utilities by Tenant such that Tenant shall pay the portion of such charges reasonably consistent with Tenant’s use of such
utilities and similar services. If Tenant disputes any such estimate or determination, then Tenant shall either pay the estimated amount or cause the Premises to be separately metered at Tenant’s sole expense. Tenant shall also pay
Tenant’s Share of any assessments, charges, and fees included within any tax bill for the lot on which the Premises are situated, including without limitation, entitlement fees, allocation unit fees, sewer use fees, and any other similar fees
or charges. 
 12. Assignment and Subleasing. 
 12.1 Prohibition. Tenant shall not, without the prior written consent of Landlord, assign, mortgage, hypothecate, encumber, grant any license or concession, pledge or otherwise transfer this
Lease or any interest herein, permit any assignment or other such transfer of this Lease or any interest hereunder by operation of law, sublet the Premises or any part thereof, or permit the use of the Premises by any persons other than Tenant and
Tenant’s Entities (all of the foregoing are sometimes referred to collectively as “Transfers” and any person to whom any Transfer is made or sought to be made is sometimes referred to as a “Transferee”). No consent to any
Transfer shall constitute a waiver of the provisions of this Section, and all subsequent Transfers may be made only with the prior written consent of Landlord, which consent shall not be unreasonably withheld, but which consent shall be subject to
the provisions of this Section. 
 12.2 Request for Consent. If Tenant seeks to make a Transfer, Tenant shall
notify Landlord, in writing, and deliver to Landlord at least thirty (30) days (but not more than one hundred eighty (180) days) prior to the proposed commencement date of the Transfer (the “Proposed Effective Date”) the
following information and documents (the “Tenant’s Notice”): (i) a description of the portion of the Premises to be transferred (the “Subject Space”); (ii) all of the terms of the proposed Transfer including
without limitation, the Proposed Effective Date, the name and address of the proposed Transferee, and a copy of the existing or proposed assignment, sublease or other agreement governing the proposed Transfer; (iii) current financial statements
of the proposed Transferee certified by an officer, member, partner or owner thereof, and any such other information as Landlord may then reasonably require, including without limitation, audited financial statements for the previous three
(3) most recent consecutive fiscal years; (iv) the Transfer Plans and Specifications (defined below), if any; and (v) such other information as Landlord may then reasonably require. Tenant shall give Landlord the Tenant’s Notice
by registered or certified mail addressed to Landlord at Landlord’s Address specified in the Basic Provisions. Within fifteen (15) business days after Landlord’s receipt of the Tenant’s Notice (the “Landlord Response
Period”) Landlord shall notify Tenant, in writing, of its determination with respect to such requested proposed Transfer and the election to recapture as set forth below. If Landlord does not elect to recapture pursuant to the provisions hereof
and Landlord does consent to the requested proposed Transfer, Tenant may thereafter assign its interests in and to this Lease or sublease all or a portion of the Premises to the same party and on the same terms as set forth in the Tenant’s
Notice. If Landlord fails to respond to Tenant’s Notice within Landlord’s Response Period, then, after Tenant delivers to Landlord fifteen (15) business days written notice (the “Second Response Period”) and Landlord fails
to respond thereto prior to the end of the Second Response Period, the proposed Transfer shall then be deemed approved by Landlord. 
 12.3 Criteria for Consent. Tenant acknowledges and agrees that, among other circumstances for which Landlord could reasonably withhold consent to a proposed Transfer, it shall be reasonable
for Landlord to withhold its consent where (a) Tenant is or has been in default of its obligations under this Lease beyond applicable notice and cure periods, (b) the use to be made of the Premises by the proposed Transferee is prohibited
under this Lease or differs from the uses permitted under this Lease, (c) the proposed Transferee or its business is subject to compliance with additional requirements of the ADA beyond those requirements which are applicable to Tenant, unless
the proposed Transferee shall (1) first deliver plans and specifications for complying with such additional requirements (the “Transfer Plans and Specifications”) and obtain Landlord’s written consent thereto, and (2) comply
with all Landlord’s conditions contained in such consent, (d) the proposed Transferee does not intend to occupy a substantial portion of the Premises assigned or sublet to it, (e) Landlord reasonably disapproves of the proposed
Transferee’s business operating ability or history or creditworthiness or the character of the business to be conducted by the proposed Transferee at the Premises, (f) the proposed Transferee is a governmental agency or unit or an existing
tenant in the Industrial Center, (g) the proposed Transfer would violate any “exclusive” rights of any occupants in the Industrial Center or cause Landlord to violate another agreement or obligation to which Landlord is a party or
otherwise subject, (h) Landlord otherwise reasonably determines that the proposed Transfer would have the effect of decreasing the value of the Building or the Industrial Center, or increasing the expenses associated with operating, maintaining
and repairing the Industrial Center, (i) either the proposed Transferee, or any person or entity which directly or indirectly, controls, is controlled by, or is under common control with, the proposed Transferee: (i) occupies space in the
Building at the time of the request for consent, (ii) is negotiating with Landlord to lease space in the Building at such time, or (iii) has negotiated with Landlord during the 12 month period immediately preceding the Tenant’s
Notice, or (j) the proposed Transferee will use, store or handle Hazardous Substances in or about the Premises of a type, nature or quantity not then acceptable to Landlord. 
         12.4 Effectiveness of Transfer and Continuing Obligations. Prior to the date on which any permitted Transfer becomes effective, Tenant shall
deliver to Landlord (i) a counterpart of the fully executed Transfer document, (ii) an executed Certificate substantially in the form of Exhibit C hereto (the “Transferee HazMat Certificate”), and
(iii) Landlord’s form of Consent to Assignment or Consent to Sublease, as applicable, executed by Tenant and the Transferee in which each of Tenant and the Transferee confirms its obligations pursuant to this Lease. Failure or refusal of a
Transferee to execute any such consent instrument shall not release or discharge the Transferee from its obligation to do so or from any liability as provided herein. The voluntary, involuntary or other surrender of this Lease by Tenant, or a mutual
cancellation by Landlord and Tenant, shall not work a merger, and any such surrender or cancellation shall, at the option of Landlord, either terminate all or any existing subleases or operate as an assignment to Landlord of any or all of

  
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such subleases. Each permitted Transferee shall assume and be deemed to assume this Lease and shall be and remain liable jointly and severally with Tenant for payment of Rent and for the due
performance of, and compliance with all the terms, covenants, conditions and agreements herein contained on Tenant’s part to be performed or complied with, for the Term of this Lease. No Transfer shall affect the continuing primary liability of
Tenant (which, following assignment, shall be joint and several with the assignee), and Tenant shall not be released from performing any of the terms, covenants and conditions of this Lease. An assignee of Tenant shall become directly liable to
Landlord for all obligations of Tenant hereunder, but no Transfer by Tenant shall relieve Tenant of any obligations or liability under this Lease whether occurring before or after such consent, assignment, subletting or other Transfer. The
acceptance of any or all of the Rent by Landlord from any other person (whether or not such person is an occupant of the Premises) shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer.
Except as set forth in Paragraph 12.9 below, if Tenant is a business entity, the direct or indirect transfer of more than fifty percent (50%) of the ownership interest of the entity (whether in a single transaction or in the aggregate through
more than one transaction) shall be deemed a Transfer and shall be subject to all the provisions hereof and in such event, it shall be a condition to Landlord’s consent to such ownership change that such entities or persons acquiring such
ownership interest assume, as a primary obligor, all rights and obligations of Tenant under this Lease (and such entities and persons shall execute all documents reasonably required to effectuate such assumption). Any and all options, first
rights of refusal, tenant improvement allowances and other similar rights granted to Tenant in this Lease, if any, shall not be assignable by Tenant unless expressly authorized in writing by Landlord (which shall be in Landlord’s sole
discretion). Except as set forth in Paragraph 12.9 below, any transfer made without Landlord’s prior written consent, shall, at Landlord’s option, be null, void and of no effect, and shall, at Landlord’s option, constitute a material
default by Tenant of this Lease. As Additional Rent hereunder, Tenant shall pay to Landlord each time it requests a Transfer, an administrative fee in the amount of two thousand five hundred dollars ($2,500) and, in addition, Tenant shall promptly
reimburse Landlord for actual legal and other expenses incurred by Landlord in connection with any actual or proposed Transfer. 

12.5 Rent Adjustment/Recapture. In the event the proposed Transfer (together with any prior Transfers) is of an amount of
square footage equal to or greater than fifty percent (50%) of the Premises, Landlord shall have the right to recapture the Subject Space described in the Tenant’s Notice. If such recapture notice is given, it shall serve to terminate this
Lease with respect to the proposed Subject Space, or, if the proposed Subject Space covers all the Premises, it shall serve to terminate the entire Term of this Lease, in either case, as of the Proposed Effective Date. However, no termination of
this Lease with respect to part or all of the Premises shall become effective without the prior written consent, where necessary, of the holder of each deed of trust encumbering the Premises or any other portion of the Industrial Center. If this
Lease is terminated pursuant to the foregoing provisions with respect to less than the entire Premises, the Rent shall be adjusted on the basis of the proportion of rentable square feet retained by Tenant to the rentable square feet originally
demised and this Lease as so amended shall continue thereafter in full force and effect. 
 12.6 Transfer Premium.
If Landlord consents to a Transfer, as a condition thereto, Tenant shall pay to Landlord monthly, as Additional Rent, at the same time as the monthly installments of Rent are payable hereunder, fifty percent (50%) of any Transfer Premium, after
first deducting commercially reasonable brokerage commissions and reasonable attorneys’ fees. The term “Transfer Premium” shall mean all rent, additional rent and other consideration payable by such Transferee which either initially
or over the term of the Transfer exceeds the Rent or pro rata portion of the Rent, as the case may be, for such space reserved in the Lease. 
 12.7 Waiver. Notwithstanding any Transfer, or any indulgences, waivers or extensions of time granted by Landlord to any Transferee, or failure by Landlord to take action against any
Transferee, Tenant agrees that Landlord may, at its option, proceed against Tenant without having taken action against or joined such Transferee, except that Tenant shall have the benefit of any indulgences, waivers and extensions of time granted to
any such Transferee. 
 12.8 Special Transfer Prohibitions. Notwithstanding anything set forth above to the
contrary, Tenant may not (a) sublet the Premises or assign this Lease to any person or entity in which Landlord owns an interest, directly or indirectly (by applying constructive ownership rules set forth in Section 856(d)(5) of the
Internal Revenue Code (the “Code”); or (b) sublet the Premises or assign this Lease in any other manner which could cause any portion of the amounts received by Landlord pursuant to this Lease or any sublease to fail to qualify as
“rents from real property” within the meaning of Section 856(d) of the Code, or which could cause any other income received by Landlord to fail to qualify as income described in Section 856(c)(2) of the Code. 

12.9 Affiliates. The assignment or subletting by Tenant of all or any portion of this Lease or the Premises to (i) a parent
or subsidiary of Tenant, or (ii) any person or entity which controls, is controlled by or under the common control with Tenant, or (iii) any entity which purchases all or substantially all of the assets of Tenant, or (iv) any entity
into which Tenant is merged or consolidated (all such persons or entities described in clauses (i), (ii), (iii) and (iv) being sometimes herein referred to as “Affiliates”) shall not be subject to obtaining Landlord’s prior
consent and no Transfer Premium shall be payable, provided in all instances that: 
 (a) any such Affiliate was not formed as a
subterfuge to avoid the obligations of this Article 12; 

                (b) Tenant gives Landlord prior notice of any such
assignment or sublease to an Affiliate, except solely for those assignments or subleases in connection with which any applicable law precludes Tenant’s delivery to Landlord of prior notice of said assignment or sublease then, in all such
instances, Tenant shall deliver to Landlord subsequent notice of said assignment or sublease within ten (10) days following the first (1st) day on which Tenant is permitted by law to deliver notice of such assignment or sublease to
Landlord; 
 (c) the successor of Tenant shall have throughout the Term a tangible net worth and net assets, in the aggregate,
computed in accordance with generally accepted accounting principles (but excluding goodwill as an asset), which is sufficient to meet the obligations of Tenant under this Lease, as reasonably determined by Landlord; 

  
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 (d) any such assignment or sublease shall be subject to all of the terms and provisions of
this Lease, and such assignee or sublessee (i.e. any such Affiliate), other than in the case of an Affiliate resulting from a merger or consolidation, shall assume, in a written document reasonably satisfactory to Landlord and delivered to Landlord
upon or prior to the effective date of such assignment or sublease, all the obligations of Tenant under this Lease; and 
 (e)
Tenant and any guarantor shall remain fully liable for all obligations to be performed by Tenant under this Lease. 
 13. Default; Remedies.

 13.1 Default. The occurrence of any one of the following events shall constitute an event of default on the
part of Tenant (“Default”): 
 (a) The abandonment of the Premises by Tenant; 

(b) Failure to pay any installment of Base Rent, Additional Rent, or any other monies due and payable hereunder, said failure continuing
for a period of five (5) days after Landlord’s delivery of written notice to Tenant that said payment is past due. Tenant agrees that any such written notice delivered by Landlord shall, to the fullest extent permitted by law, serve as the
statutorily required notice under applicable law to the extent Tenant fails to cure such failure to pay within such five (5) day period. In addition to the foregoing, Tenant agrees to notice and service of notice as provided for in accordance
with applicable statutory requirements; 
 (c) A general assignment by Tenant for the benefit of creditors; 

(d) The filing of a voluntary petition of bankruptcy by Tenant; the filing of a voluntary petition for an arrangement; the filing of a
petition, voluntary or involuntary, for reorganization; or the filing of an involuntary petition by Tenant’s creditors; 

(e) Receivership, attachment, or other judicial seizure of the Premises or all or substantially all of Tenant’s assets on the
Premises; 
 (f) Failure of Tenant to maintain insurance as required by Paragraph 8.2; 

(g) Any breach by Tenant of its covenants under Paragraph 6.2; 
 (h) Failure in the performance of any of Tenant’s covenants, agreements, or obligations hereunder (except those failures specified as events of Default in other Paragraphs of this Paragraph 13.1
which shall be governed by such other Paragraphs), which failure continues for 10 days after written notice thereof from Landlord to Tenant; provided that, if Tenant has exercised reasonable diligence to cure such failure and such failure cannot be
cured within such 10-day period despite reasonable diligence, Tenant shall not be in default under this subparagraph unless Tenant fails thereafter diligently and continuously to prosecute the cure to completion; and 

(i) Except as set forth in Paragraph 12.9, any transfer of a substantial portion of the assets of Tenant, unless such transfer or
obligation is undertaken or incurred in the ordinary course of Tenant’s business, or in good faith for equivalent consideration, or with Landlord’s consent. 
 13.2 Remedies. In the event of any Default by Tenant, Landlord shall have any or all of the following remedies: 
 (a) Termination. In the event of any Default by Tenant, then in addition to any other remedies available to Landlord at law or in equity and under this Lease, Landlord shall have the immediate
option to terminate this Lease and all rights of Tenant hereunder by giving written notice of such intention to terminate. In the event that Landlord shall elect to so terminate this Lease then Landlord may recover from Tenant: 

(1) the worth at the time of award of any unpaid Rent and any other sums due and payable which have been earned at the time of such
termination; plus 
 (2) the worth at the time of award of the amount by which the unpaid Rent and any other sums due and
payable which would have been earned after termination until the time of award exceeds the amount of such rental loss Tenant proves could have been reasonably avoided; plus 
 (3) the worth at the time of award of the amount by which the unpaid Rent and any other sums due and payable for the balance of the term of this Lease after the time of award exceeds the amount of such
rental loss that Tenant proves could be reasonably avoided; plus 

                        (4) any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course would be likely to result therefrom, including, without
limitation, any costs or expenses incurred by Landlord (i) in retaking possession of the Premises; (ii) in maintaining, repairing, preserving, restoring, replacing, cleaning, the Premises or any portion thereof, including such acts for
reletting to a new lessee or lessees; (iii) for leasing commissions; or (iv) for any other costs reasonably necessary or reasonably appropriate to relet the Premises; plus 

  
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 (5) such reasonable attorneys’ fees incurred by Landlord as a result of a Default, and
costs in the event suit is filed by Landlord to enforce such remedy; and plus 
 (6) at Landlord’s election, such other
amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. As used in subparagraphs (1) and (2) above, the “worth at the time of award” is computed by allowing interest at an
annual rate equal to twelve percent (12%) per annum or the maximum rate permitted by law, whichever is less. As used in subparagraph (3) above, the “worth at the time of award” is computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award, plus one percent (1%). Tenant waives redemption or relief from forfeiture under California Code of Civil Procedure Sections 1174 and 1179, or under any other present or
future law, in the event Tenant is evicted or Landlord takes possession of the Premises by reason of any Default of Tenant hereunder. 
 (b) Continuation of Lease. In the event of any Default by Tenant, then in addition to any other remedies available to Landlord at law or in equity and under this Lease, Landlord shall have the
remedy described in California Civil Code Section 1951.4 (Landlord may continue this Lease in effect after Tenant’s Default and abandonment and recover Rent as it becomes due, provided tenant has the right to sublet or assign, subject only
to reasonable limitations). 
 (c) Re-entry. In the event of any Default by Tenant, Landlord shall also have the right,
with or without terminating this Lease, in compliance with applicable law, to re-enter the Premises and remove all persons and property from the Premises; such property may be removed and stored in a public warehouse or elsewhere at the cost of and
for the account of Tenant. 
 (d) Reletting. In the event of the abandonment of the Premises by Tenant
or in the event that Landlord shall elect to re-enter or shall take possession of the Premises pursuant to legal proceeding or pursuant to any notice provided by law, then if Landlord does not elect to terminate this Lease as provided in Paragraph
a, Landlord may from time to time, without terminating this Lease, relet the Premises or any part thereof for such term or terms and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem
advisable with the right to make alterations and repairs to the Premises. In the event that Landlord shall elect to so relet, then rentals received by Landlord from such reletting shall be applied in the following order: (1) to reasonable
attorneys’ fees incurred by Landlord as a result of a Default and costs in the event suit is filed by Landlord to enforce such remedies; (2) to the payment of any indebtedness other than Rent due hereunder from Tenant to Landlord;
(3) to the payment of any costs of such reletting; (4) to the payment of the costs of any alterations and repairs to the Premises; (5) to the payment of Rent due and unpaid hereunder; and (6) the residue, if any, shall be held by
Landlord and applied in payment of future Rent and other sums payable by Tenant hereunder as the same may become due and payable hereunder. Should that portion of such rentals received from such reletting during any month, which is applied to the
payment of Rent hereunder, be less than the Rent payable during the month by Tenant hereunder, then Tenant shall pay such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall also pay to Landlord, as soon as
ascertained, any costs and expenses incurred by Landlord in such reletting or in making such alterations and repairs not covered by the rentals received from such reletting; provided, Tenant shall not be obligated to Landlord for any such costs
attributable to the removal (or repair following removal) of the Tenant Improvements described in Exhibit F. 

(e) Termination. No re-entry or taking of possession of the Premises by Landlord pursuant to this Lease shall be construed as an
election to terminate this Lease unless a written notice of such intention is given to Tenant or unless the termination thereof is decreed by a court of competent jurisdiction. Notwithstanding any reletting without termination by Landlord because of
any Default by Tenant, Landlord may at any time after such reletting elect to terminate this Lease for any such Default. 
 (f)
Cumulative Remedies. The remedies herein provided are not exclusive and Landlord shall have any and all other remedies provided herein or by law or in equity. 
 (g) No Surrender. No act or conduct of Landlord, whether consisting of the acceptance of the keys to the Premises, or otherwise, shall be deemed to be or constitute an acceptance of the surrender
of the Premises by Tenant prior to the expiration of the Term, and such acceptance by Landlord of surrender by Tenant shall only flow from and must be evidenced by a written acknowledgment of acceptance of surrender signed by Landlord. The surrender
of this Lease by Tenant, voluntarily or otherwise, shall not work a merger unless Landlord elects in writing that such merger take place, but shall operate as an assignment to Landlord of any and all existing subleases, or Landlord may, at its
option, elect in writing to treat such surrender as a merger terminating Tenant’s estate under this Lease, and thereupon Landlord may terminate any or all such subleases by notifying the sublessee of its election so to do within five
(5) days after such surrender. 
 (h) Notice Provisions Tenant agrees that any notice given by Landlord pursuant to
Paragraph 13.1 of the Lease shall satisfy the requirements for notice under California Code of Civil Procedure Section 1161, and Landlord shall not be required to give any additional notice in order to be entitled to commence an unlawful
detainer proceeding. Should Landlord prepare any notice to Tenant for failure to pay rent, additional rent or perform any other obligation under the Lease, Tenant shall pay to Landlord, without any further notice from Landlord, the additional sum of
$75.00 which the parties hereby agree represents a fair and reasonable estimate of the costs Landlord will incur by reason of preparing such notice. 
         13.3 Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due hereunder will cause Landlord
to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges.

  
 14 

 
Accordingly, if any installment of Rent or other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days after such amount shall be due, then,
without any requirement for notice to Tenant, Tenant shall pay to Landlord a late charge equal to 5% of such overdue amount; provided, however, the foregoing late charge shall not be applicable to the first (1st) instance of late payment of Rent by Tenant until three
(3) business days after written notice to Tenant of such late payment. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of
such late charge by Landlord shall in no event constitute a waiver of Tenant’s Default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder. In addition, should
Landlord be unable to negotiate any payment made by Tenant on the first attempt by Landlord and without any notice to Tenant, Tenant shall pay to Landlord a fee of $50.00 per item which the parties hereby agree represents a fair and reasonable
estimate of the costs Landlord will incur by reason of Landlord’s inability to negotiate such item(s). 
 14. Condemnation. If the
Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of exercise of said power (all of which are herein called “condemnation”), this Lease shall terminate as to the part so taken as of the
date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the floor area of the Premises, or more than 25% of the portion of the Common Areas designated for Tenant’s parking, is taken by condemnation,
Tenant may, at Tenant’s option, to be exercised in writing within 10 days after Landlord shall have given Tenant written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken
possession), terminate this Lease as of the date the condemning authority takes such possession. If Tenant does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the
Premises remaining, except that the Base Rent shall be reduced in the same proportion as the rentable floor area of the Premises taken bears to the total rentable floor area of the Premises and Landlord shall, if necessary, promptly proceed to
restore the Premises or the Building, as applicable, to substantially its same condition prior to such partial condemnation, allowing for the reasonable effects of such partial condemnation, and a proportionate allowance shall be made to Tenant for
the Rent corresponding to the time during which, and to the part of the Premises of which, Tenant is deprived on account of such partial condemnation and restoration. Landlord shall not be required to spend funds for restoration in excess of the
amount received by Landlord as compensation awarded. No reduction of Base Rent shall occur if the condemnation does not apply to any portion of the Premises. Any award for the taking of all or any part of the Premises under the power of eminent
domain or any payment made under threat of the exercise of such power shall be the property of Landlord; provided, however, that Tenant shall be entitled to any compensation, separately awarded to Tenant, for Tenant’s relocation expenses and/or
loss of Tenant’s trade fixtures. In the event that this Lease is not terminated by reason of such condemnation, Landlord shall to the extent of its net severance damages in the condemnation matter, repair any damage to the Premises caused by
such condemnation authority. Tenant shall be responsible for the payment of any amount in excess of such net severance damages required to complete such repair. 
 15. Estoppel Certificate and Financial Statements. 
 15.1 Estoppel
Certificate. Each party (herein referred to as “Responding Party”) shall within 10 business days after written notice from the other Party (the “Requesting Party”) execute, acknowledge, and deliver to the Requesting
Party, to the extent it can truthfully do so, an estoppel certificate in a form reasonably acceptable to the Responding Party, or any of Landlord’s lenders or any prospective purchasers of the Premises or the Industrial Center as the case may
be, plus such additional information, confirmation, and statements as be reasonably requested by the Requesting Party. 

15.2 Financial Statement. If Landlord desires to finance, refinance, or sell the Building, Industrial Center, or any part
thereof, Tenant shall deliver to any potential lender or purchaser designated by Landlord such financial statements of Tenant as are prepared by Tenant in the ordinary course of business, including but not limited to Tenant’s financial
statements for the past 3 years (if then available). All such financial statements shall be received by Landlord and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. Landlord agrees to execute and
Landlord shall use its commercially reasonable efforts to cause Landlord’s lender or purchaser to execute a non-disclosure agreement reasonably acceptable to such parties related to such financial statements of Tenant. Tenant shall not be
required to deliver such financial statements to Landlord so long as Tenant is a publicly-held company whose stock is listed on a national exchange. 
 16. Additional Covenants and Provisions. 
 16.1 Severability.
The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall not affect the validity of any other provision hereof. 

16.2 Interest on Past-Due Obligations. Any monetary payment due Landlord hereunder not received by
Landlord within 10 days following the date on which it was due shall bear interest from the date due at 12% per annum, but not exceeding the maximum rate allowed by law in addition to the late charge provided for in Paragraph 13.3. 

16.3 Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed
by the Parties under this Lease. 
         16.4 Landlord Liability. Tenant, its
successors, and assigns shall not assert nor seek to enforce any claim for breach of this Lease against any of Landlord’s assets other than Landlord’s interest in the Industrial Center. Tenant agrees to look solely to such interest for the
satisfaction of any liability or claim against Landlord under this Lease. In no event whatsoever shall Landlord (which term shall include, without limitation, any general or limited partner, trustees, beneficiaries, officers, directors, or
stockholders of Landlord) ever be personally liable for any such liability. 

  
 15 

 16.5 Entire Agreement. It is understood and acknowledged that there are no
oral agreements between the parties hereto affecting this Lease and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto or displayed by
Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. This Lease and any side letter or separate agreement executed by Landlord and Tenant in connection with this Lease and
dated of even date herewith contain all of the terms, covenants, conditions, warranties and agreements of the parties relating in any manner to the rental, use and occupancy of the Premises, shall be considered to be the only agreement between the
parties hereto and their representatives and agents, and none of the terms, covenants, conditions or provisions of this Lease can be modified, deleted or added to except in writing signed by the parties hereto. All negotiations and oral agreements
acceptable to both parties have been merged into and are included herein. There are no other representations or warranties between the parties, and all reliance with respect to representations is based totally upon the representations and agreements
contained in this Lease. The parties acknowledge that (i) each party and/or its counsel have reviewed and revised this Lease, and (ii) no rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall be employed in the interpretation or enforcement of this Lease or any amendments or exhibits to this Lease or any document executed and delivered by either party in connection with this Lease. 

16.6 Notice Requirements. All notices required or permitted by this Lease shall be in writing and may be delivered in
person (by hand, messenger, or courier service) or may be sent by regular, certified, or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission during normal business hours, and shall be deemed
sufficiently given if served in a manner specified in this Paragraph 16.6. The addresses noted adjacent to a Party’s signature on this Lease shall be that Party’s address for delivery or mailing of notice purposes. Either Party may by
written notice to the other specify a different address for notice purposes, except that upon Tenant’s taking possessing of the Premises, the Premises shall constitute Tenant’s address for the purpose of mailing or delivering notices to
Tenant. A copy of all notices required or permitted to be given to Landlord hereunder shall be concurrently transmitted to such party or parties at such addresses as Landlord may from time to time hereafter designate by written notice to Tenant.

 16.7 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed
given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail, the notice shall be deemed given 48 hours after the same is addressed as required herein and mailed with postage
prepaid. Notices delivered by United States Express Mail or an overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the United States Postal Service or courier. If any notice is transmitted
by facsimile transmission or similar means, the same shall be deemed served or delivered upon telephone or facsimile confirmation of receipt of the transmission thereof, provided a copy is also delivered via hand or overnight delivery or certified
mail. If notice is received on a Saturday, Sunday, or legal holiday, it shall be deemed received on the next business day. 

16.8 Waivers. No waiver by Landlord of a Default by Tenant shall be deemed a waiver of any other term, covenant, or
condition hereof, or of any subsequent Default by Tenant of the same or any other term, covenant, or condition hereof. In addition the acceptance by Landlord of any rent or other payment after it is due, whether or not a notice of default has been
served or any action (including, without limitation, an unlawful detainer action) has been filed by Landlord thereon, shall not be deemed a waiver of Landlord’s rights to proceed on any notice of default or action which has been filed against
Tenant based upon Tenant’s breach of the Lease. 
 16.9 Holdover. Tenant has no right to retain possession of
the Premises or any part thereof beyond the expiration or earlier termination of this Lease. If Tenant holds over with the consent of Landlord: (a) the Base Rent payable shall be increased to 150% of the Base Rent applicable during the month
immediately preceding such expiration or earlier termination; (b) Tenant’s right to possession shall terminate on 30 days notice from Landlord; and (c) all other terms and conditions of this Lease shall continue to apply. Nothing
contained herein shall be construed as a consent by Landlord to any holding over by Tenant. Tenant shall indemnify, defend, and hold Landlord harmless from and against any and all claims, demands, actions, losses, damages, obligations, costs, and
expenses, including, without limitation, reasonable attorneys’ fees incurred or suffered by Landlord by reason of Tenant’s failure to surrender the Premises on the expiration or earlier termination of this Lease in accordance with the
provisions of this Lease. 
 16.10 Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive
but shall, wherever possible, be cumulative with all other remedies in law or in equity. 
 16.11 Binding Effect: Choice
of Law. This Lease shall be binding upon the Parties, their personal representatives, successors, and assigns, and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning
this Lease shall be initiated in the county in which the Premises are located. 
         16.12
Landlord. The covenants and obligations contained in this Lease on the part of Landlord are binding on Landlord, its successors, and assigns only during their respective period of ownership of an interest in the Building. In the event of
any transfer or transfers of such title to the Building, Landlord (and, in the case of any subsequent transfers or conveyances, the then grantor) shall be concurrently freed and relieved from and after the date of such transfer or conveyance,
without any further instrument or agreement, of all liability with respect to the performance of any covenants or obligations on the part of Landlord contained in this Lease thereafter to be performed. 

16.13 Attorneys’ Fees and Other Costs. If any Party brings an action or proceeding to enforce the terms hereof or
declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding shall be entitled to reasonable attorneys’ fees. The term “Prevailing Party” shall include, without limitation, a Party who substantially
obtains or defeats the relief sought. Landlord shall be entitled to reasonable attorneys’ fees, costs, and expenses incurred 

  
 16 

 
in the preparation and service of notices of Default (as defined in this Lease) and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection
with such Default or resulting breach. Tenant shall reimburse Landlord on demand for all reasonable legal, engineering, and other professional services expenses incurred by Landlord in connection with all requests by Tenant or any lender of Tenant
for consent, waiver or approval of any kind. 
 16.14 Landlord’s Access; Showing Premises; Repairs. Subject
to the terms of Paragraph 6.4 above, Landlord and Landlord’s agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times upon reasonable notice for the purpose of showing the
same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements, or additions to the Premises or to the Building, as Landlord may reasonably deem necessary, provided, in no event shall Tenant be obligated to
disclose or provide access to Tenant’s proprietary or confidential information in connection with such inspections. Landlord may at any time place on or about the Premises or Building any ordinary “For Sale” signs, and Landlord may at
any time during the last 180 days of the term hereof place on or about the Premises any ordinary “For Lease” signs. All such activities of Landlord shall be without abatement of rent or liability to Tenant. 

16.15 Signs. Tenant shall not place any signs at or upon the exterior of the Premises or the Building, except that Tenant
may, with Landlord’s prior written consent, install (but not on the roof) monument signage (in proportion to Tenant’s Share) on any monument sign for the Building and exterior Building signage (so long as Tenant leases the entire Building)
so long as such signs are in a location designated by Landlord and comply with sign ordinances and the signage criteria established for the Industrial Center by Landlord. 
 16.16 Termination; Merger. Unless specifically stated otherwise in writing by Landlord, the voluntary or other surrender of this Lease by Tenant, the mutual termination or cancellation
hereof, or a termination hereof by Landlord for Default by Tenant, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, Landlord shall, in the event of any such surrender, termination, or cancellation, have
the option to continue any one or all of any existing subtenancies. Landlord’s failure within 10 days following any such event to make a written election to the contrary by written notice to the holder of any such lesser interest shall
constitute Landlord’s election to have such event constitute the termination of such interest. 
 16.17 Quiet
Possession. Upon payment by Tenant of the Base Rent and Additional Rent for the Premises and the performance of all of the covenants, conditions, and provisions on Tenant’s part to be observed and performed under this Lease, Tenant
shall have quiet possession of the Premises for the entire term hereof, subject to all of the provisions of this Lease. 

16.18 Subordination; Attornment; Non-Disturbance. 
 (a) Subordination. Subject to the nondisturbance provisions of subparagraph 16.18(c), this Lease shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or mortgage (collectively, “Mortgage”) now or hereafter placed by Landlord upon the real property of which the Premises are a part, to any and all advances made on the security thereof, and to all renewals, modifications,
consolidations, replacements, and extensions thereof. Tenant agrees that any person holding any Mortgage shall have no duty, liability, or obligation to perform any of the obligations of Landlord under this Lease. In the event of Landlord’s
default with respect to any such obligation, Tenant will give any Lender, whose name and address have previously been furnished in writing to Tenant, notice of a default by Landlord. Tenant may not exercise any remedies for default by Landlord
unless and until Landlord and the Lender shall have received written notice of such default and a reasonable time (not less than 90 days) shall thereafter have elapsed without the default having been cured. If any Lender shall elect to have this
Lease superior to the lien of its Mortgage and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such Mortgage. The provisions of a Mortgage relating to the disposition of condemnation and insurance proceeds shall
prevail over any contrary provisions contained in this Lease. 
 (b) Attornment. Subject to the nondisturbance provisions
of subparagraph (c) of this Paragraph 16.18, Tenant agrees to attorn to a Lender or any other party who acquires ownership of the Premises by reason of a foreclosure of a Mortgage. In the event of such foreclosure, such new owner shall not:
(i) be liable for any act or omission of any prior landlord or with respect to events occurring prior to acquisition of ownership, (ii) be subject to any offsets or defenses which Tenant might have against any prior Landlord, or
(iii) be liable for security deposits or be bound by prepayment of more than one month’s rent. 
 (c)
Non-Disturbance. With respect to a Mortgage entered into by Landlord after the execution of this Lease and to any and all advances made on the security thereof, and to all renewals, modifications, consolidations, replacements and extensions
thereof, Tenant’s subordination of this Lease shall be subject to receiving assurance (a “nondisturbance agreement”) from the Mortgage holder that Tenant’s possession and this Lease will not be disturbed so long as Tenant is not
in default and attorns to the record owner of the Premises. 
 (d) Self-Executing. The agreements contained in this
Paragraph 16.18 shall be effective without the execution of any further documents; provided, however, that upon written request from Landlord or a Lender in connection with a sale, financing, or refinancing of Premises, Tenant and Landlord shall
execute such further writings as may be reasonably required to separately document any such subordination or nonsubordination, attornment, and/or nondisturbance agreement, as is provided for herein. Landlord is hereby irrevocably vested with full
power to subordinate this Lease to a Mortgage. 

  
 17 

 16.19 Rules and Regulations. Tenant agrees that it will abide by, and to cause
its employees, suppliers, shippers, customers, tenants, contractors, and invitees to abide by, all reasonable rules and regulations (“Rules and Regulations”) which Landlord may make from time to time for the management, safety, care, and
cleanliness of the Common Areas, the parking and unloading of vehicles, and the preservation of good order, as well as for the convenience of other occupants or tenants of the Building and the Industrial Center and their invitees. The current Rules
and Regulations are attached hereto as Exhibit E. Landlord shall not be responsible to Tenant for the noncompliance with said Rules and Regulations by other tenants of the Industrial Center. 

16.20 Security Measures. Tenant acknowledges that the rental payable to Landlord hereunder does not include the cost of
guard service or other security measures. Landlord has no obligations to provide same. Tenant assumes all responsibility for the protection of the Premises, Tenant, its agents, and invitees and their property from the acts of third parties.

 16.21 Reservations. Landlord reserves the right to grant such easements that Landlord deems necessary and to
cause the recordation of parcel maps, so long as such easements and maps do not unreasonably interfere with the use of the Premises by Tenant. Tenant agrees to sign any documents reasonably requested by Landlord to effectuate any such easements or
maps. Tenant further agrees that Landlord may at any time following the execution of this Lease, either directly or through Landlord’s agents, identify Tenant’s name in any marketing materials relating to the Building or Landlord’s
portfolio and/or make press releases or other announcements regarding the leasing of the Premises by Tenant, and Tenant hereby waives any and all claims in connection therewith. 

16.22 Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions
shall be controlled by the typewritten or handwritten provisions. 
 16.23 Offer. Preparation of this Lease by
either Landlord or Tenant or Landlord’s agent or Tenant’s agent and submission of same to Tenant or Landlord shall not be deemed an offer to lease. This Lease is not intended to be binding until executed and delivered by all Parties
hereto. 
 16.24 Amendments. This Lease may be modified only in writing, signed by the parties in interest at the
time of the modification. 
 16.25 Multiple Parties. Except as otherwise expressly provided herein, if more than
one person or entity is named herein as Tenant, the obligations of such persons shall be the joint and several responsibility of all persons or entities named herein as such Tenant. 

16.26 Authority. Each person signing on behalf of Landlord or Tenant warrants and represents that she or he is authorized
to execute and deliver this Lease and to make it a binding obligation of Landlord or Tenant. 
 16.27 Recordation.
Tenant shall not record this Lease or a short form memorandum hereof. 
 16.28 Confidentiality. Tenant
acknowledges that the content of this Lease and any related documents are confidential information. Tenant shall keep and maintain such confidential information strictly confidential and shall not disclose such confidential information to any person
or entity other than Tenant’s financial, legal and space planning consultants. 
 16.29 Landlord Renovations.
Tenant acknowledges that Landlord may from time to time, at Landlord’s sole option, renovate, improve, develop, alter, or modify (collectively, the “Renovations”) portions of the Building, Premises, Common Areas and the Industrial
Center, including without limitation, systems and equipment, roof, and structural portions of the same. In connection with such Renovations, Landlord may, among other things, erect scaffolding or other necessary structures in the Building, limit or
eliminate access to portions of the Industrial Center, including portions of the Common Areas, or perform work in the Building, which work may create noise, dust or leave debris in the Building; provided, such Renovations shall not unreasonably
interfere with Tenant’s access to the Premises or access to the parking areas. Tenant hereby agrees that such Renovations and Landlord’s actions in connection with such Renovations shall in no way constitute a constructive eviction of
Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility, or for any reason be liable to Tenant, for any direct or indirect injury to or interference with Tenant’s business arising from the Renovations, nor
shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Premises or of Tenant’s Property, Alterations or improvements resulting from the Renovations or Landlord’s actions in
connection with such Renovations, or for any inconvenience or annoyance occasioned by such Renovations or Landlord’s actions in connection with such Renovations. 
 16.30 WAIVER OF JURY TRIAL. THE PARTIES HERETO SHALL AND THEY HEREBY DO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE
OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY RELATED TO THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES, THE BUILDING OR THE INDUSTRIAL CENTER, AND/OR ANY CLAIM OF INJURY, LOSS OR
DAMAGE. 
         16.31 Clean Room Equipment. Landlord and Tenant acknowledge and agree
that Landlord shall lease to Tenant during the Term, at no additional cost, all equipment and utility systems located in the clean room in the Premises and identified on Exhibit G attached hereto and incorporated herein by this
reference (the foregoing are collectively, “Clean Room Equipment”). Such leasing is on an “AS-IS, WITH ALL FAULTS” basis and subject to all of the terms of this Lease (including, without limitation, Paragraph 8 of this Lease),
without recourse, representation or warranty of any kind or nature, express or implied, including without limitation, habitability, merchantability or fitness for a particular purpose. At the expiration or earlier termination of this Lease, the
Clean Room Equipment shall be returned and surrendered to Landlord in the same or substantially similar condition and repair as when delivered to Tenant, reasonable wear and tear excepted. Tenant shall be obligated to repair, maintain and insure the
Clean Room Equipment, and Tenant shall not have the right or ability to assign or sublet any of the Clean Room except in conjunction with this Lease and the Premises. Tenant shall pay any taxes, assessments and insurance premiums attributable to the
Clean Room Equipment. 

  
 18 

 16.32 Cubicles and Equipment. Landlord and Tenant acknowledge and agree that
Landlord shall lease to Tenant during the Term, at no additional cost, that certain furniture, equipment and cubicles identified on Exhibit H attached hereto and incorporated herein by this reference (the foregoing are collectively,
“Cubicles and Equipment”). Such leasing is on an “AS-IS, WITH ALL FAULTS” basis and subject to all of the terms of this Lease (including, without limitation, Paragraph 8 of this Lease), without recourse, representation or
warranty of any kind or nature, express or implied, including without limitation, habitability, merchantability or fitness for a particular purpose. At the expiration or earlier termination of this Lease, the Cubicles and Equipment shall be returned
and surrendered to Landlord in the same or substantially similar condition and repair as when delivered to Tenant, reasonable wear and tear excepted. Tenant shall be obligated to repair, maintain and insure the Cubicles and Equipment, and Tenant
shall not have the right or ability to assign or sublet any of the Cubicles and Equipment except in conjunction with this Lease and the Premises. Tenant shall pay any taxes, assessments and insurance premiums attributable to the Cubicles and
Equipment. Tenant may, at Tenant’s option, remove the Cubicles and Equipment and either dispose of such Cubicles and Equipment (with Landlord’s prior written consent) or return such Cubicles and Equipment to Landlord at any time during the
Term. 
 16.33 Building Information. Landlord shall provide to Tenant (i) a list of all HVAC units that serve
the Premises such list to include, to the extent available, unit number, maker of unit, type of unit, model number, serial number and size of unit, (ii) any historical HVAC maintenance records, (iii) copies of past utilities bills,
(iv) a copy of any CC&Rs relating to the Building and (v) to the extent in Landlord’s possession, full CAD drawings, including mechanical and electrical. 
 16.34 Landlord’s Work. Landlord shall perform the following work, at Landlord’s sole cost and expense: (i) installation of communications and generator power conduits
connecting both the power and data among all of the premises currently occupied by Tenant, including the 1010 Hamilton Avenue and 1350 Willow Road premises, (ii) upgrade the exterior of the Building similarly to the exterior of 1380 Willow Road
(inclusive of glass and metal upgrades) and (iii) paint the exterior of the Building to a color reasonably approved by Landlord and Tenant. 

  
 19 

 The parties hereto have executed this Lease at the place and on the dates specified below their respective
signatures. 
  

													
	LANDLORD	  		  	TENANT
		
	 WILLOW PARK HOLDING COMPANY II, L.P.,
 a Delaware limited partnership
	  	 PACIFIC BIOSCIENCES OF CALIFORNIA, INC.,
 a Delaware corporation, dba Pac Bio, Inc.

					
	By:	  	AMB PROPERTY, L.P.,	  		  	By:	  	 /s/ Hugh Martin

		  	a Delaware limited partnership	  		  	Its:	  	President
	Its:	  	Manager	  		  		  	Date:	  	 12/16/10

					
		  	By:	  	AMB PROPERTY CORPORATION,	  	By:	  	 /s/ Matthew Murphy

		  		  	a Maryland corporation, its general partner	  	Its:	  	Secretary
		  		  		  		  		  	Date:	  	 12/16/10

						
		  		  	By:	  	 /s/ Douglas P. McGregor
	  		  	Tenant’s Address:
		  		  		  	Douglas P. McGregor	  		  	
		  		  	Its:	  	Vice President, Regional Manager	  	After the Commencement Date
		  		  	Date:	  	 12/17/10
	  		  	The Premises Address
						
		  		  		  		  		  	Prior to the Commencement Date
		  		  		  		  		  	  

		  		  		  		  		  	  

		  		  		  		  		  	  

 

	
	Landlord’s Address:
	  
 Willow Park Holding Company II, L.P.

c/o AMB Property Corporation
 Pier 1, Bay
1
 San Francisco, California 94111

 

	 With a copy to:
  

	 1360 Willow Road, Suite 100

Menlo Park, California 94025

If Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the capacity in which they are signing. The Lease
must be executed by the chairman of the board, president or vice-president, and the secretary, assistant secretary, chief financial officer or any assistant treasurer, unless the bylaws or a resolution of the board of directors shall otherwise
provide, in which event, the bylaws or a certified copy of the resolution, as the case may be, must be attached to this Lease. 

  
 20 

 Exhibit A 
 Description of Premises 
 This exhibit, entitled “Premises”, is and shall
constitute Exhibit A to that certain Lease dated December     , 2010 (the “Lease”), by and between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”) and
Pacific Biosciences of California, Inc., a Delaware corporation dba Pac Bio, Inc. (“Tenant”) for the leasing of certain premises commonly known as 1003 – 1005 Hamilton Avenue, Menlo Park, California (the
“Premises”). 
 The Premises consist of the rentable square footage of space specified in the Basic Provisions and has the address
specified in the Basic Provisions. The Premises are a part of and are contained in the Building specified in the Basic Provisions. If set forth below (or attached), the cross-hatched area depicts the Premises within the Industrial Center:

 

 

  
 Exhibit A,
Page 1 

 Exhibit B 
 Commencement Date Certificate 
  

			
	Landlord:	  	Willow Park Holding Company II, L.P., a Delaware limited partnership
		
	Tenant:	  	 Pacific Biosciences of California, Inc.,
 a Delaware corporation dba Pac Bio, Inc.

		
	Lease Date:	  	December     , 2010
		
	Premises:	  	1003 – 1005 Hamilton Avenue, Menlo Park, California 94025

 Tenant hereby accepts the Premises as being in the condition required under the Lease. 
 The Commencement Date of the Lease is January 16, 2011. 
 The Expiration Date of
the Lease is December 31, 2015. 
  

															
	 LANDLORD
  

WILLOW PARK HOLDING COMPANY II, L.P.,
 a Delaware
limited partnership
	 		 	 TENANT
  

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.,
 a
Delaware corporation, dba Pac Bio, Inc.

					
	By:	 	 AMB PROPERTY, L.P.,

a Delaware limited partnership
	 		 	By:	 	  

	Its:	 	Manager	 		 	Its:	 	President
		 		 		 		 		 	Date:	 	  

		 	By:	 	AMB PROPERTY CORPORATION,	 		 		 	
		 		 	a Maryland corporation, its general partner	 		 		 	
		 		 	By:	 	  
	 		 	 By:
 Its:
	 	  
 Secretary

		 		 		 	    Douglas P. McGregor	 		 	Date:	 	  

		 		 	 Its:
 Date:
	 	 Vice President, Regional Manager
  
	 		 	Tenant’s Address:
							
		 		 		 		 		 		 	 After the Commencement Date
 The Premises Address
  

Prior to the Commencement Date

		 		 		 	  

		 		 		 	  

		 		 		 	  

							
		
	Landlord’s Address:	 	
		
	Willow Park Holding Company II, L.P.	 	
	 c/o AMB Property Corporation
 Pier 1, Bay 1
 San Francisco, California 94111
	 	
		
	With a copy to:	 	
		
	 1360 Willow Road, Suite 100
 Menlo Park, California 94025
	 	

 If Tenant is a CORPORATION, the authorized officers must sign on behalf of the corporation and indicate the
capacity in which they are signing. The document must be executed by the chairman of the board, president or vice-president, and the secretary, assistant secretary, chief financial officer or any assistant treasurer, unless the bylaws or a
resolution of the board of directors shall otherwise provide, in which event, the bylaws or a certified copy of the resolution, as the case may be, must be attached to this document. 

  
 Exhibit B,
Page 1 

 Exhibit C 
 Tenant Move-in and Lease Renewal Environmental Questionnaire 
 for
Commercial and Industrial Properties 
 Property Name: Willow Park 

Premises Address: 1003 – 1005 Hamilton Avenue, Menlo Park, California 94025 

Exhibit C to the Lease Dated December     , 2010 

Between 

Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”) 

and 

Pacific Biosciences of California, Inc., a Delaware corporation dba Pac Bio, Inc. (“Tenant”) 

Instructions: The following questionnaire is to be completed by the Tenant Representative with knowledge of the planned/existing operations for the
specified building/location. A copy of the completed form must be attached to all new leases and renewals, and forwarded to the Owner’s Risk Management Department. Please print clearly and attach additional sheets as necessary. 

 

	1.0	Process Information 

Describe planned use (new Lease) or existing operations (lease renewal), and include brief description of manufacturing processes
employed. 
  

			
		 	  

		 	  

		 	  

 

	2.0	Hazardous Materials 

 Are
hazardous materials used or stored? If so, continue with the next question. If not, go to Section 3.0. 
  

	 	2.1	Are any of the following materials handled on the
property?                                        
                                        
Yes     No     

 (A material is handled if it is used,
generated, processed, produced, packaged, treated, stored, emitted, discharged, or disposed.) If so, complete this section. If this question is not applicable, skip this section and go on to Section 5.0. 

 

							
		 	 ̈ Explosives	  	 ̈ Fuels	  	 ̈ Oils
		 	 ̈ Solvents	  	 ̈ Oxidizers	  	 ̈ Organics/Inorganics
		 	 ̈ Acids	  	 ̈ Bases	  	 ̈ Pesticides
		 	 ̈ Gases	  	 ̈ PCBs	  	 ̈ Radioactive Materials
		 	 ̈ Other (please specify)	  		  	

  

	 	2.2	If any of the groups of materials checked in Section 2.1, please list the specific material(s), use(s), and quantity of each chemical used or stored on the
site in the Table below. If convenient, you may substitute a chemical inventory and list the uses of each of the chemicals in each category separately. 

  

													
		 	Material	  	 Physical State

(Solid, Liquid,
 or Gas)
	  	Usage	  	 Container

Size
	  	 Number of

Containers
	  	 Total
 Quantity

		 	 	  	 	  	 	  	 	  	 	  	 
		 	 	  	 	  	 	  	 	  	 	  	 
		 	 	  	 	  	 	  	 	  	 	  	 
		 	 	  	 	  	 	  	 	  	 	  	 

  

	 	2.3	Describe the planned storage area location(s) for these materials. Please include site maps and drawings as appropriate. 

 

			
		 	  

		 	  

		 	  

 

	3.0	Hazardous Wastes 

 Are
hazardous wastes
generated?                                        
                                         
                                         
          Yes     No     

If yes, continue with the next question. If not, skip this section and go to Section 4.0. 

 

	 	3.1	Are any of the following wastes generated, handled, or disposed of (where applicable) on the property? 

 

					
		 	 ̈ Hazardous wastes	  	 ̈ Industrial Wastewater
		 	 ̈ Waste oils	  	 ̈ PCBs
		 	 ̈ Air emissions	  	 ̈ Sludges
		 	 ̈ Regulated Wastes	  	 ̈ Other (please specify)

  
 Exhibit C,
Page 1 

	3.2	List and quantify the materials identified in Question 3-1 of this section. Attach separate pages as necessary. 

 

													
		  	 Waste

Generated
	  	 RCRA

listed

Waste?
	  	Source	  	 Approximate

Monthly

Quantity
	  	 Waste

Characterization
	  	Disposition
		  	 	  	 	  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 	  	 	  	 

  

	 	3.3	Please include name, location, and permit number (e.g. EPA ID No.) for transporter and disposal facility, if applicable). Attach separate pages as necessary.

  

									
		  	
Transporter/Disposal
 Facility Name
	  	Facility Location	  	 Transporter (T)
or
 Disposal (D) Facility
	  	Permit Number
		  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 

  

	 	3.4	Are pollution controls or monitoring employed in the process to prevent or minimize the release of wastes into the
environment?                                       
                                         
                                         
                               Yes    
No     

 If so, please describe. 

 

			
		 	  

		 	  

		 	  

 

	4.0	USTS/ASTS 

  

	 	4.1	Are underground storage tanks (USTs), aboveground storage tanks (ASTs), or associated pipelines used for the storage of petroleum products, chemicals, or liquid
wastes present on site (lease renewals) or required for planned operations (new
tenants)?                                        
                                         
                                         
                                  Yes    
No     

 If not, continue with section 5.0. If yes, please describe capacity, contents,
age, type of the USTs or ASTs, as well any associated leak detection / spill prevention measures. Please attach additional pages if necessary. 
  

											
		  	Capacity	  	Contents	  	 Year

Installed
	  	Type (Steel, Fiberglass, etc)	  	 Associated Leak
 Detection / Spill
Prevention Measures*

		  	 	  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 	  	 
		  	 	  	 	  	 	  	 	  	 

	 	*	Note: The following are examples of leak detection / spill prevention measures: 

 

							
		  	Integrity testing	  	Inventory reconciliation	  	Leak detection system
		  	Overfill spill protection	  	Secondary containment	  	Cathodic protection

  

	 	4.2	Please provide copies of written tank integrity test results and/or monitoring documentation, if available. 

 

	 	4.3	Is the UST/AST registered and permitted with the appropriate regulatory agencies? 

                                   
                                         
                                         
                                         
                                   Yes    
No     
 If so, please attach a copy of the required permits. 

 

	 	4.4	If this Questionnaire is being completed for a lease renewal, and if any of the USTs/ASTs have leaked, please state the substance released, the media(s) impacted
(e.g., soil, water, asphalt, etc.), the actions taken, and all remedial responses to the incident. 

  

			
		 	  

		 	  

		 	  

 

	 	4.5	If this Questionnaire is being completed for a lease renewal, have USTs/ASTs been removed from the property? 

Yes     No     

If yes, please provide any official closure letters or reports and supporting documentation (e.g., analytical test results, remediation
report results, etc.). 
  

	 	4.6	For Lease renewals, are there any above or below ground pipelines on site used to transfer chemicals or wastes? 

Yes     No     

  
 Exhibit C,
Page 2 

 For new tenants, are installations of this type required for the planned operations?

 Yes          No        

 If yes to either question, please describe. 

 

	
	  

	  

	  

 

	5.0	Asbestos Containing Building Materials 

 Please be advised that this property participates in an Asbestos Operations and Maintenance Program, and that an asbestos survey may have been performed at the Industrial Center. If provided, please
review the information that identifies the locations of known asbestos containing material or presumed asbestos containing material. All personnel and appropriate subcontractors should be notified of the presence of these materials, and informed not
to disturb these materials. Any activity that involves the disturbance or removal of these materials must be done by an appropriately trained individual/contractor. 
  

	6.0	Regulatory 

  

	 	6.1	For Lease Renewals, are there any past, current, or pending regulatory actions by federal, state, or local environmental agencies alleging noncompliance with
regulations? 

Yes          No         

If so, please describe. 
  

	
	  

	  

	  

 

	 	6.2	For lease renewals, are there any past, current, or pending lawsuits or administrative proceedings for alleged environmental damages involving the property, you,
or any owner or tenant of the property? 

Yes          No         

If so, please describe. 
  

	
	  

	  

	  

 

	 	6.3	Does the operation have or require a National Pollutant Discharge Elimination System (NPDES) or equivalent permit? 

Yes          No         

If so, please attach a copy of this permit. 
  

	 	6.4	For Lease renewals, have there been any complaints from the surrounding community regarding facility operations? 

Yes          No         

Have there been any worker complaints or regulatory investigations regarding hazardous material exposure at the facility? 

Yes          No         

If so, please describe status and any corrective actions taken. Please attach additional pages as necessary. 

 

	
	  

	  

	  

 

	 	6.5	Has a Hazardous Materials Business Plan been developed for the site? 

 Yes          No         
 If so, please attach a copy. 
  

	 	6.6	Are any environmental documentation, chemical inventory, or management plan required by the local Fire Department or Health Department? 

Yes          No         

If so, please attach a copy. 

Certification 
 I am familiar with the
real property described in this questionnaire. By signing below, I represent and warrant that the answers to the above questions are complete and accurate to the best of my knowledge. I also understand that the Owner will rely on the completeness
and accuracy of my answers in assessing any environmental liability risks associated with the property. 
  

	
	Signature:                            
                                         
              
	Name:                             
                                         
                    
	Title:                            
                                         
                       
	Date:                             
                                         
                      
	Telephone:                            
                                         
            

 Please forward the completed questionnaire
to: 
 Mr. Steve Campbell 
 AMB
Property, L.P. 
 Pier 1, Bay 1 
 San
Francisco, CA 94111 

  
 Exhibit C,
Page 3 

 Exhibit D 
 Move Out Standards 
 This “Move Out Standards” (Exhibit D) is dated
December     , 2010, for the reference purposes only and is made between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”), and Pacific Biosciences of California, Inc., a Delaware
corporation dba Pac Bio, Inc. (“Tenant”), to be a part of that certain Lease (the “Lease”) concerning certain premises more commonly known as 1003 – 1005 Hamilton Avenue, Menlo Park, California (the “Premises”).
Landlord and Tenant agree that the Lease is hereby modified and supplemented as follows: 
 At the expiration or earlier termination of this
Lease, and in addition to any other provisions of the Lease regarding surrender of the Premises, Tenant shall surrender the Premises in the same condition as they were upon delivery of possession thereto under the Lease, reasonable wear and tear
excepted, and shall deliver all keys to Landlord except Tenant shall not remove the Tenant Improvements described in Exhibit F hereto. Before surrendering the Premises, Tenant shall remove all of its personal property and trade
fixtures and such Alterations or additions to the Premises made by Tenant as may be specified for removal by Landlord. If Tenant fails to remove its personal property, fixtures or Alterations or additions upon the expiration or earlier termination
of the Lease, the same shall be deemed abandoned and shall become the property of Landlord. Tenant shall be liable to Landlord for all costs and damages incurred by Landlord in removing, storing or selling such property, fixtures, Alterations or
additions and in restoring the Premises to the condition required pursuant to the Lease. 
 Notwithstanding anything to the contrary in the
Lease, Tenant shall surrender the Premises, at the time of the expiration or earlier termination of the Lease, in a condition that shall include, but is not limited to, the following: 

 

					
	1.	  	Lights:	  	Office and warehouse lights will be fully operational with all bulbs functioning.
			
	2.	  	Dock Levelers & Roll-Up Doors (if any):	  	Should be in good working condition.
			
	3.	  	Dock Seals (if any):	  	Free of tears and broken backboards repaired.
			
	4.	  	Warehouse Floor:	  	Free of stains and swept with no racking bolts and other protrusions left in the floor. Cracks should be repaired with an epoxy or polymer.
			
	5.	  	Tenant-Installed Equipment & Wiring:	  	Removed and space returned to move-in condition when originally leased. (Remove air lines, junction boxes, conduit, etc.)
			
	6.	  	Walls:	  	Sheetrock (drywall) damage should be patched and fire-taped so that there are no holes in either office or warehouse.
			
	7.	  	Roof:	  	Any tenant-installed equipment must be removed and roof penetrations properly repaired by licensed roofing contractor. Active leaks must be fixed and latest landlord maintenance
and repairs recommendation must have been followed.
			
	8.	  	Signs:	  	All exterior signs must be removed and holes patched and paint touched up as necessary. All window signs should likewise be removed.
			
	9.	  	Heating & Air Conditioning System:	  	A written report from a licensed HVAC contractor within the last three months stating that all evaporative coolers and HVAC systems are operational and in good and safe operating
condition.
			
	10.	  	Overall Cleanliness:	  	Clean windows, sanitize bathroom(s), vacuum carpet and remove any and all debris from office and warehouse. Remove all pallets and debris from exterior of
Premises.
			
	11.	  	Upon Completion:	  	Contact Landlord’s property manager to coordinate date of turning off power, turning in keys, and obtain final Landlord inspection of Premises which, in turn, will
facilitate refund of security deposit.
			
	12.	  	Repainting:	  	Tenant shall repaint the exterior of the Building to the standard colors then in use by Landlord for the Industrial Center.

  
 Exhibit D,
Page 1 

 Exhibit E 
 Rules & Regulations 
 This Exhibit (Exhibit E) is dated December
    , 2010, for the reference purposes only and is made between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”), and Pacific Biosciences of California, Inc., a Delaware
corporation dba Pac Bio, Inc. (“Tenant”), to be a part of that certain Lease (the “Lease”) concerning certain premises more commonly known as 1003 – 1005 Hamilton Avenue, Menlo Park, California (the “Premises”).
The terms, conditions and provisions of this Exhibit E are hereby incorporated into and are made a part of the Lease. Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms as
set forth in the Lease. 
 1. No advertisement, picture or sign of any sort shall be displayed on or outside the Premises or the Building
without the prior written consent of Landlord. Landlord shall have the right to remove any such unapproved item without notice and at Tenant’s expense. 
 2. Tenant shall not regularly park motor vehicles (other than Tenant’s company owned or leased vehicles) in designated parking areas after the conclusion of normal daily business activity.

 3. Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without the prior written
consent of Landlord. 
 4. All window coverings installed by Tenant and visible from the outside of the Building require the prior
written approval of Landlord. 
 5. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or substance or any
flammable or combustible materials on or around the Premises, the Building or the Industrial Center, except as consented to by Landlord in writing as set forth in Paragraph 6 of the Lease. 
 6. Tenant shall not alter any lock or install any new exterior locks or bolts on any door at the Premises without providing Landlord with a duplicate key for such locks promptly following
installation. 
 7. Tenant may make up to ten (10) duplicate keys without the prior consent of Landlord. 

8. Tenant shall park motor vehicles in those general parking areas as designated by Landlord except for loading and unloading. During those
periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow within the Industrial Center and loading and unloading areas of other Tenants. 
 9. Tenant shall not disturb, solicit or canvas any occupant of the Building or Industrial Center and shall cooperate to prevent same. 
 10. No person shall go on the roof without Landlord’s permission, which permission shall not be unreasonably withheld, delayed or conditioned. 

11. Business machines and mechanical equipment belonging to Tenant which cause noise or vibration that may be transmitted to the structure of the
Building, to such a degree as to be objectionable to Landlord or other Tenants, shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate noise or vibration. 

12. All goods, including material used to store goods, delivered to the Premises of Tenant shall be immediately moved into the Premises and shall
not be left in parking or receiving areas overnight. 
 13. Tractor trailers which must be unhooked or parked with dolly wheels beyond
the concrete loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the auto parking areas of the Industrial Center or
on streets adjacent thereto. 
 14. Forklifts which operate on asphalt paving areas shall only use tires that do not damage the asphalt.

 15. Tenant is responsible for the storage and removal of all trash and refuse. All such trash and refuse shall be contained in
suitable receptacles stored behind screened enclosures at locations approved by Landlord. 
 16. Tenant shall not store or permit the
storage or placement of goods, or merchandise or pallets or equipment of any sort outside of the Premises nor in or around the Building, the Industrial Center or any of the Common Areas of the foregoing. No displays or sales of merchandise shall be
allowed in the parking lots or other Common Areas. 
 17. Tenant shall not permit any animals, including, but not limited to, any
household pets, to be brought or kept in or about the Premises, the Building, the Industrial Center or any of the Common Areas of the foregoing. 
 18. Tenant shall not permit any motor vehicles to be washed on any portion of the Premises or in the Common Areas of the Industrial Center, nor shall Tenant permit mechanical work or maintenance of
motor vehicles to be performed on any portion of the Premises or in the Common Areas of the Industrial Center. 

  
 Exhibit E,
Page 1 

 Exhibit F 
 Tenant Improvements 
 This Exhibit (Exhibit F) is dated December
    , 2010, for reference purposes only and is made by and between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”), and Pacific Biosciences of California, Inc., a Delaware
corporation dba Pac Bio, Inc. (“Tenant”), to be a part of that certain Lease (“Lease”) concerning certain premises more commonly known as 1003 – 1005 Hamilton Avenue, Menlo Park, California (the “Premises”).
Landlord and Tenant agree that the Lease is hereby modified and supplemented as follows: 
 1. Tenant To Construct Tenant
Improvements. Subject to the provisions below, Tenant shall be solely responsible for the planning, construction and completion of the interior tenant improvements (“Tenant Improvements”) to the Premises in accordance with the
terms and conditions of this Exhibit F. Except as set forth in Paragraph 5.A. of this Exhibit F with respect to Tenant’s use of a portion of the Tenant Improvement Allowance for furniture costs, the Tenant
Improvements shall not include any of Tenant’s personal property, trade fixtures, furnishings, equipment or similar items. 
 2.
Tenant Improvement Plans. 
 A. Preliminary Plans and Specifications. Promptly after execution of the
Lease, and subject to Paragraph 2.F below, Tenant shall retain a licensed and insured architect (“Architect”) to prepare preliminary working architectural and engineering plans and specifications (“Preliminary Plans and
Specifications”) for the Tenant Improvements. Tenant shall deliver the Preliminary Plans and Specifications to Landlord. The Preliminary Plans and Specifications shall be in sufficient detail to show locations, types and requirements for all
heat loads, people loads, floor loads, power and plumbing, regular and special HVAC needs, telephone communications, telephone and electrical outlets, lighting, lighting fixtures and related power, and electrical and telephone switches. Landlord
shall reasonably approve or disapprove the Preliminary Plans and Specifications within five (5) days after Landlord receives the Preliminary Plans and Specifications and, if disapproved, Landlord shall return the Preliminary Plans and
Specifications to Tenant, who shall make all necessary revisions within ten (10) days after Tenant’s receipt thereof. This procedure shall be repeated until Landlord approves the Preliminary Plans and Specifications. The approved
Preliminary Plans and Specifications, as modified, shall be deemed the “Final Preliminary Plans and Specifications”. 

B. Final Plans and Specifications. After the Final Preliminary Plans and Specifications are approved by Landlord and are
deemed to be the Final Preliminary Plans and Specifications, Tenant shall cause the Architect to prepare in twenty (20) days following Landlord’s approval of the Final Preliminary Plans and Specifications the final working architectural
and engineering plans, specifications and drawings, (“Final Plans and Specifications”) for the Tenant Improvements. Tenant shall then deliver the Final Plans and Specifications to Landlord. Landlord shall reasonably approve or disapprove
the Final Plans and Specifications within five (5) days after Landlord receives the Final Plans and Specifications and, if disapproved, Landlord shall return the Final Plans and Specifications to Tenant who shall make all necessary revisions
within ten (10) days after Tenant’s receipt thereof. This procedure shall be repeated until Landlord approves, in writing, the Final Plans and Specifications. The approved Final Plans and Specifications, as modified, shall be deemed the
“Construction Documents”. 
 C. Miscellaneous. All deliveries of the Preliminary Plans and
Specifications, the Final Preliminary Plans and Specifications, the Final Plans and Specifications, and the Construction Documents shall be delivered by messenger service, by personal hand delivery or by overnight parcel service. While Landlord has
the right to approve the Preliminary Plans and Specifications, the Final Preliminary Plans and Specifications, the Final Plans and Specifications, and the Construction Documents, Landlord’s interest in doing so is to protect the Premises, the
Building and Landlord’s interest. Accordingly, Tenant shall not rely upon Landlord’s approvals and Landlord shall not be the guarantor of, nor responsible for, the adequacy and correctness or accuracy of the Preliminary Plans and
Specifications, the Final Preliminary Plans and Specifications, the Final Plans and Specifications, and the Construction Documents, or the compliance thereof with applicable laws, and Landlord shall incur no liability of any kind by reason of
granting such approvals. 
 D. Building Standard Work. The Construction Documents shall provide that the Tenant
Improvements to be constructed in accordance therewith must be at least equal, in quality, to Landlord’s building standard materials, quantities and procedures then in use by Landlord. 

E. Construction Agreements. Tenant hereby covenants and agrees that a provision shall be included in each and every
agreement made with the Architect and the Contractor with respect to the Tenant Improvements specifying that Landlord shall be a third party beneficiary thereof, including without limitation, a third party beneficiary of all covenants,
representations, indemnities and warranties made by the Architect and/or Contractor. 
 F. Selection of Architect and
Contractor. Tenant agrees to include, in Tenant’s process of selection of an architect and contractor for the Tenant Improvements, an architect and contractor recommended by Landlord. Tenant shall give reasonable and adequate
consideration to Landlord’s selections, although Tenant shall not be required to contract with the architect and/or contractor recommended by Landlord. 
 3. Permits. Tenant at its sole cost and expense (subject to the provisions of Paragraph 5 below) shall obtain all governmental approvals of the Construction Documents to the full extent
necessary for the issuance of a building permit for the Tenant Improvements based upon such Construction Documents. Tenant at its sole cost and expense shall also cause to be obtained all other necessary approvals and permits from all governmental
agencies having jurisdiction or authority for the construction and installation of the Tenant Improvements in accordance with the approved Construction Documents. Tenant at its sole cost and expense (subject to the provisions of Paragraph 5 below)
shall undertake all steps necessary to insure that the construction of the Tenant Improvements is accomplished in strict compliance with all Applicable Requirements (as defined in the Lease). 

  
 Exhibit F,
page 1 

 4. Construction. 
 A. Tenant shall be solely responsible for the construction, installation and completion of the Tenant Improvements in accordance with the Construction Documents approved by Landlord and is solely
responsible for the payment of all amounts when payable in connection therewith without any cost or expense to Landlord, except for Landlord’s obligation to contribute the Tenant Improvement Allowance in accordance with the provisions of
Paragraph 5 below. Tenant shall diligently proceed with the construction, installation and completion of the Tenant Improvements in accordance with the Construction Documents and the completion schedule reasonably approved by Landlord. No material
changes shall be made to the Construction Documents and the completion schedule approved by Landlord without Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed. 

B. Tenant at its sole cost and expense (subject to the provisions of Paragraph 5 below) shall, subject to Paragraph 2.F above,
employ a licensed, insured and bonded general contractor (“Contractor”) to construct the Tenant Improvements in accordance with the Construction Documents. The construction contracts between Tenant and the Contractor and between the
Contractor and subcontractors shall be subject to Landlord’s prior written approval, which approval shall not be unreasonably withheld or delayed. Proof that the Contractor is licensed in California, is bonded as required under California law,
and has the insurance specified in Exhibit F-1, attached hereto and incorporated herein by this reference, shall be provided to Landlord at the time that Tenant requests approval of the Contractor from Landlord. Tenant shall comply
with or cause the Contractor to comply with all other terms and provisions of Exhibit F-1. 
 C. Prior to
the commencement of the construction and installation of the Tenant Improvements, Tenant shall provide the following to Landlord, all of which shall be to Landlord’s reasonable satisfaction: 

(i) An estimated budget and cost breakdown for the Tenant Improvements. 

(ii) Estimated completion schedule for the Tenant Improvements. 
 (iii) Copies of all required approvals and permits from governmental agencies having jurisdiction or authority for the construction and installation of the Tenant Improvements. 

(iv) Evidence of Tenant’s procurement of insurance required to be obtained pursuant to the provisions of Paragraphs 4.B and 4.G.

 D. Landlord shall at all reasonable times have a right to inspect the Tenant Improvements (provided Landlord does not
materially interfere with the work being performed by the Contractor or its subcontractors) and Tenant shall immediately cease work upon written notice from Landlord if the Tenant Improvements are not in compliance with the Construction Documents
approved by Landlord. If Landlord shall give notice of faulty construction or any other deviation from the Construction Documents, Tenant shall cause the Contractor to make corrections promptly. However, neither the privilege herein granted to
Landlord to make such inspections, nor the making of such inspections by Landlord, shall operate as a waiver of any rights of Landlord to require good and workmanlike construction and improvements constructed in accordance with the Construction
Documents. 
 E. Subject to Landlord complying with its obligations in Paragraph 5 below, Tenant shall pay and discharge
promptly and fully all claims for labor done and materials and services furnished in connection with the Tenant Improvements. The Tenant Improvements shall not be commenced until ten (10) days after Landlord has received notice from Tenant
stating the date the construction of the Tenant Improvements is to commence so that Landlord can post and record any appropriate Notice of Non-responsibility. 
 F. Tenant acknowledges and agrees that the agreements and covenants of Tenant in the Lease shall be fully applicable to Tenant’s construction of the Tenant Improvements. 

G. Tenant shall maintain, and cause to be maintained, during the construction of the Tenant Improvements, at its sole cost and
expense, insurance of the types and in the amounts specified in Exhibit F-1 and in Section 8 of the Lease, together with builders’ risk insurance for the amount of the completed value of the Tenant Improvements on an all-risk
non-reporting form covering all improvements under construction, including building materials, and other insurance in amounts and against such risks as the Landlord shall reasonably require in connection with the Tenant Improvements. 

H. No materials, equipment or fixtures shall be delivered to or installed upon the Premises pursuant to any agreement by which
another party has a security interest or rights to remove or repossess such items, without the prior written consent of Landlord, which consent shall not be unreasonably withheld. 

I. Landlord reserves the right to establish reasonable rules and regulations for the use of the Building during the course of
construction of the Tenant Improvements, including, but not limited to, construction parking, storage of materials, hours of work, use of elevators, and clean-up of construction related debris. 

J. Upon completion of the Tenant Improvements, Tenant shall deliver to Landlord the following, all of which shall be to
Landlord’s reasonable satisfaction: 
 (i) Any certificates required for occupancy, including a permanent and complete
Certificate of Occupancy issued by the City of Menlo Park. 
 (ii) A Certificate of Completion signed by the Architect who
prepared the Construction Documents, reasonably approved by Landlord. 
 (iii) A cost breakdown itemizing all expenses for the
Tenant Improvements, together with invoices and receipts for the same or other evidence of payment. 

  
 Exhibit F,
Page 2 

 (iv) Final and unconditional mechanic’s lien waivers for all the Tenant Improvements.

 (v) A Notice of Completion for execution by Landlord, which certificate once executed by Landlord shall be recorded by Tenant
in the official records of the county of San Mateo, and Tenant shall then deliver to Landlord a true and correct copy of the recorded Notice of Completion. 
 (vi) A true and complete copy of all as-built plans and drawings for the Tenant Improvements. 

5. Tenant Improvement Allowance. 
 A. Subject to Tenant’s compliance with the provisions of this Exhibit F, Landlord shall provide to Tenant an allowance in the amount of Seven Hundred Thirty Six Thousand Nine
Hundred Eleven and 00/100 Dollars ($736,911.00) (the “Tenant Improvement Allowance”) to construct and install only the Tenant Improvements; provided, however, Tenant shall have the right to utilize (i) up to One Hundred Thirty Six
Thousand Four Hundred Sixty Five Dollars ($136,465.00) of the Tenant Improvement Allowance for the purchase of furniture for the Premises (as evidenced by third party invoices for such furniture costs) and (ii) all or a portion of the Tenant
Improvement Allowance for the tenant improvements being constructed by Tenant at premises owned by affiliates of Landlord and to be leased by Tenant located at 1010 Hamilton Avenue, Menlo Park, California and 1350 Willow Road, Menlo Park,
California, subject to the terms of the leases between Tenant and such affiliates of Landlord. The Tenant Improvement Allowance shall be used to design, prepare, plan, obtain the approval of, construct and install the Tenant Improvements and for no
other purpose. Except as otherwise expressly provided herein, Landlord shall have no obligation to contribute the Tenant Improvement Allowance unless and until the Construction Documents have been approved by Landlord and Tenant has complied with
all requirements set forth in Paragraph 4.C. of this Exhibit F. In addition to the foregoing, Landlord shall have no obligation to disburse all or any portion of the Tenant Improvement Allowance to Tenant unless Tenant makes a progress
payment request pursuant to the terms and conditions of Section 5.B. below prior to December 31, 2012 (time being of the essence). The costs to be paid out of the Tenant Improvement Allowance shall include all reasonable costs and expenses
associated with the design, preparation, approval, planning, construction and installation of the Tenant Improvements (the “Tenant Improvement Costs”), including all of the following: 

(i) All costs of the Preliminary Plans and Specifications, the Final Plans and Specifications, and the Construction Documents, and
engineering costs associated with completion of the State of California energy utilization calculations under Title 24 legislation: 
 (ii) All costs of obtaining building permits and other necessary authorizations from local governmental authorities; 
 (iii) All costs of interior design and finish schedule plans and specifications including as-built drawings, if applicable; 
 (iv) All direct and indirect costs of procuring, constructing and installing the Tenant Improvements in the Premises, including, but not limited to, the construction fee for overhead and profit and the
cost of all on-site supervisory and administrative staff, office, equipment and temporary services rendered by the Contractor in connection with the construction of the Tenant Improvements; provided, however, that the construction fee for overhead
and profit, the cost of all on-site supervisory and administrative staff, office, equipment and temporary services shall not exceed amounts which are reasonable and customary for such items in the local construction industry; 

(v) All fees payable to the Architect and any engineer if they are required to redesign any portion of the Tenant Improvements following
Tenant’s and Landlord’s approval of the Construction Documents; 
 (vi) Utility connection fees; 

(vii) Inspection fees and filing fees payable to local governmental authorities, if any; 

(viii) All costs of all permanently affixed equipment and non-trade fixtures provided for in the Construction Documents, including the
cost of installation; 
 (ix) A construction management fee payable to Landlord in the amount of three percent (3%) of the
total Tenant Improvement Allowance (“CM Fee”); and 
 (x) The costs incurred by the Architect for an initial test fit
of the Premises. 
 Except as set forth in Paragraph 5.E below, the Tenant Improvement Allowance shall be the maximum contribution by Landlord
for the Tenant Improvement Costs, and the disbursement of the Tenant Improvement Allowance is subject to the terms contained hereinbelow. 
 B. Except for payment of the CM Fee (which CM Fee shall be deducted from the Tenant Improvement Allowance by Landlord on a percentage completion basis), and subject to Section 5.A. above,
Landlord will make payments to Tenant from the Tenant Improvement Allowance to reimburse Tenant for Tenant Improvement Costs paid or incurred by Tenant. Payment of the CM Fee shall be the first payment from the Tenant Improvement Allowance and shall
be made by means of a deduction or credit against the Tenant Improvement Allowance. All other payments of the Tenant Improvement Allowance shall be by progress payments not more frequently than once per month and only after satisfaction of the
following conditions precedent: (a) receipt by Landlord of conditional mechanics’ lien releases for the work completed and to be paid by said progress payment, conditioned only on the payment of the sums set forth in the mechanics’
lien release, executed by the Contractor and all subcontractors, labor suppliers and materialmen; (b) receipt 

  
 Exhibit F,
Page 3 

 
by Landlord of unconditional mechanics’ lien releases from the Contractor and all subcontractors, labor suppliers and materialmen for all work other than that being paid by the current
progress payment previously completed by the Contractor, subcontractors, labor suppliers and materialmen and for which Tenant has received funds from the Tenant Improvement Allowance to pay for such work; (c) receipt by Landlord of any and all
documentation reasonably required by Landlord detailing the work that has been completed and the materials and supplies used as of the date of Tenant’s request for the progress payment, including, without limitation, invoices, bills, or
statements for the work completed and the materials and supplies used; and (d) completion by Landlord or Landlord’s agents of any inspections of the work completed and materials and supplies used as deemed reasonably necessary by Landlord.
Except for the CM Fee payment (credit), Tenant Improvement Allowance progress payments shall be paid to Tenant within fourteen (14) days from the satisfaction of the conditions set forth in the immediately preceding sentence. The preceding
notwithstanding, all Tenant Improvement Costs paid or incurred by Tenant prior to Landlord’s approval of the Construction Documents in connection with the design and planning of the Tenant Improvements by Architect shall be paid from the Tenant
Improvement Allowance, without any retention, within fourteen (14) days following Landlord’s receipt of invoices, bills or statements from Architect evidencing such costs. Notwithstanding the foregoing to the contrary, Landlord shall be
entitled to withhold and retain five percent (5%) of the Tenant Improvement Allowance (or of any Tenant Improvement Allowance progress payment) until the lien-free expiration of the time for filing of any mechanics’ liens claimed or which
might be filed on account of any work ordered by Tenant or the Contractor or any subcontractor in connection with the construction and installation of the Tenant Improvements. 
 C. Landlord shall not be obligated to pay any Tenant Improvement Allowance progress payment or the Tenant Improvement Allowance retention (or any payment under Paragraph 5.E. below) if on the date
Tenant is entitled to receive such payment or retention, Tenant is in default of this Lease. Such payments shall resume upon Tenant curing any such default within the time periods which may be provided for in the Lease. 

D. Except as provided in Paragraph 5.A. above, should the total cost of constructing the Tenant Improvements be less than the
Tenant Improvement Allowance, the Tenant Improvement Allowance shall be automatically reduced to the amount equal to said actual cost. 
 6.
Termination. If the Lease is terminated prior to the date on which the Tenant Improvements are completed, for any reason due to the default of Tenant hereunder, in addition to any other remedies available to Landlord under the Lease,
Tenant shall pay to Landlord as Additional Rent under the Lease, within five (5) days of receipt of a statement therefor, any and all costs incurred by Landlord and not reimbursed or otherwise paid by Tenant through the date of termination in
connection with the Tenant Improvements to the extent planned, installed and/or constructed as of such date of termination, including, but not limited to, any costs related to the removal of all or any portion of the Tenant Improvements and
restoration costs related thereto. Upon the expiration or earlier termination of the Lease, Tenant shall not be required to remove the Tenant Improvements it being the intention of the parties that the Tenant Improvements are to be considered
incorporated into the Building. 
 7. Lease Provisions; Conflict. The terms and provisions of the Lease, insofar as they are
applicable, in whole or in part, to this Exhibit F, are hereby incorporated herein by reference, and specifically including all of the provisions of Section 16 of the Lease. In the event of any conflict between the terms of the
Lease and this Exhibit F, the terms of this Exhibit F shall prevail. Any amounts payable by Tenant to Landlord hereunder shall be deemed to be Additional Rent under the Lease and, upon any default in the payment of same,
Landlord shall have all rights and remedies available to it as provided for in the Lease. 
 8. ADA Survey. Prior to execution of
this Lease, Landlord has employed an architect selected by Landlord to perform an ADA Survey of the Premises. The costs of such ADA Survey shall be shared equally by Landlord and Tenant and Tenant shall pay Tenant’s share of such costs within
thirty (30) days following written demand therefor. 

  
 Exhibit F,
Page 4 

 Exhibit F-1 
 Construction Insurance Requirements 
 Before commencing work, the Contractor shall procure
and maintain at its sole cost and expense until completion and final acceptance of the work, at least the following minimum levels of insurance. 
 A. Workers’ Compensation in statutory amounts and Employers Liability Insurance in the minimum amounts of $100,000 each accident for bodily injury by accident and $100,000 each employee for
bodily injury by disease with a $500,000 policy limit, covering each and every worker used in connection with the contract work. 
 B.
Comprehensive General Liability Insurance on an occurrence basis including, but not limited to, protection for Premises/Operations Liability, Broad Form Contractual Liability, Owner’s and Contractor’s Protective, and Products/Completed
Operations Liability*, in the following minimum limits of liability. 
  

			
	Bodily Injury, Property Damage, and
	Personal Injury Liability	 	$2,000,000/each occurrence
		 	$3,000,000/aggregate

  

	*	Products/Completed Operations Liability Insurance is to be provided for a period of at least one (1) year after completion of work. 

Coverage should include protection for Explosion, Collapse and Underground Damage. 

C. Comprehensive Automobile Liability Insurance with the following minimum limits of liability. 

 

			
	Bodily Injury and Property	 	$1,000,000/each occurrence
	Damage Liability	 	$2,000,000/aggregate

 This insurance will
apply to all owned, non-owned or hired automobiles to be used by the Contractor in the completion of the work. 
 D. Umbrella Liability
Insurance in a minimum amount of five million dollars ($5,000,000), providing excess coverage on a following-form basis over the Employer’s Liability limit in Paragraph A and the liability coverages outlined in Paragraphs B and C. 

E. Equipment and Installation coverages in the broadest form available covering Contractor’s tools and equipment and material not accepted by
Tenant. Tenant will provide Builders Risk Insurance on all accepted and installed materials. 
 All policies of insurance, duplicates thereof or
certificates evidencing coverage shall be delivered to Landlord prior to commencement of any work and shall name Landlord, and its partners and lenders as additional insureds as their interests may appear. All insurance policies shall (1) be
issued by a company or companies licensed to be business in the State of California, (2) provide that no cancellation, non-renewal or material modification shall be effective without thirty (30) days prior written notice provided to
Landlord, (3) provide no deductible greater than $15,000 per occurrence, (4) contain a waiver to subrogation clause in favor of Landlord, and its partners and lenders, and (5) comply with the requirements of Paragraph 8 of the Lease
to the extent such requirements are applicable. 

  
 Exhibit F,
Page 5 

 Exhibit G 
 List of Clean Room Equipment 

  
 Exhibit G,
Page 1 

 Addendum 1 
 Options to Extend 
 This Addendum 1 (the “Addendum”) is incorporated as a part of
that certain Lease dated December     , 2010 (the “Lease”), by and between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”), and Pacific Biosciences of California, Inc.,
a Delaware corporation dba Pac Bio, Inc. (“Tenant”), for the leasing of those certain premises commonly known as 1003 – 1005 Hamilton Avenue, Menlo Park, California, as more particularly described in Exhibit A to the
Lease (the “Premises”). Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Lease. 
 1. Grant of Extension Options. Subject to the provisions, limitations and conditions set forth in Paragraph 5 below, Tenant shall have an Option (individually, an “Option” and
collectively, the “Options”) to extend the initial Term of the Lease for two (2) consecutive five (5) year periods (individually, an “Extended Term” and collectively, “Extended Terms”). 

2. Tenant’s Option Notice. Tenant shall have the right to deliver written notice to Landlord of its intent to exercise an Option (the
“Option Notice”). If Landlord does not receive an Option Notice from Tenant on a date which is neither more than three hundred sixty five (365) days nor less than two hundred twenty five (225) days prior to the end of the initial
Term or first Extended Term, as applicable, all rights under the applicable Option shall automatically terminate and shall be of no further force or effect. Upon the proper exercise of the first Option, subject to the provisions, limitations and
conditions set forth in this Addendum, the initial Term of the Lease shall be extended for the first Extended Term and upon the proper exercise of the second Option, subject to the provisions, limitations and conditions set forth in Paragraph 5
below, the first Extended Term shall be extended for the second Extended Term; provided, Tenant shall have no right to exercise the Option for the second Extended Term if Tenant failed to properly exercise the Option for the first Extended Term.

 3. Determination of the Option Rent. 
 A. The Base Rent payable for each month during each Extended Term shall be set at ninety-five percent (95%) of the then-prevailing fair market rental rate (the “Prevailing Rental Rate”) for
renewals of space of equivalent quality, type, size and location in comparable R&D buildings in Menlo Park, with the length of the applicable Extended Term, the then credit standing of Tenant, tenant improvement allowances then being granted in
the marketplace and other market rent concessions then being offered in the marketplace to be taken into account. The Prevailing Rental Rate shall include the periodic rental increases, if any, that would be included for space leased for the period
the Premises will be covered by the Lease. As used herein, “then-prevailing” shall mean the time period which is six (6) months prior to the commencement of the applicable Extended Term and not the commencement date of the applicable
Extended Term. Within thirty (30) days after receipt of Tenant’s notice to renew, Landlord shall deliver to Tenant written notice of Landlord’s determination of the Prevailing Rental Rate and shall advise Tenant of the required
adjustment to Base Rent, if any, and the other terms and conditions offered. Tenant shall, within ten (10) days after receipt of Landlord’s notice, time being of the essence with respect thereto, notify Landlord in writing whether Tenant
accepts or rejects Landlord’s determination of the Prevailing Rental Rate. 
 B. If Tenant rejects Landlord’s
determination of the Prevailing Rental Rate, Tenant’s written notice shall include Tenant’s own determination of the Prevailing Rental Rate. If Tenant does not deliver any written notice to Landlord within ten (10) days after receipt
of Landlord’s notice of the Prevailing Rental Rate, Tenant shall be deemed to have withdrawn its exercise of its rights under this Addendum, whereupon Tenant’s rights under this Addendum shall be null and void and of no further force or
effect. If Tenant and Landlord disagree on the Prevailing Rental Rate, then Landlord and Tenant shall attempt in good faith to agree upon the Prevailing Rental Rate. If by that date which is four (4) months prior to the commencement of the
applicable Extended Term (the “Option Trigger Date”), Landlord and Tenant have not agreed in writing as to the Prevailing Rental Rate, the parties shall determine the Prevailing Rental Rate in accordance with the procedure set forth in
Paragraph C below. 
         C. If Landlord and Tenant are unable to reach agreement on the Prevailing
Rental Rate by the Option Trigger Date, then within ten (10) days of the applicable Option Trigger Date, Landlord and Tenant shall each simultaneously submit to the other in a sealed envelope its good faith estimate of the Prevailing Rental
Rate. If either Landlord or Tenant fails to propose a Prevailing Rental Rate, then the Prevailing Rental Rate proposed by the other party shall prevail. If the higher of such estimates is not more than one hundred five percent (105%) of the
lower, then the Prevailing Rental Rate shall be the average of the two. Otherwise, the dispute shall be resolved by arbitration in accordance with the remainder of this Paragraph C. Within seven (7) days after the exchange of estimates, the
parties shall select as an arbitrator a licensed real estate broker with at least ten (10) years of experience leasing premises in Class A office buildings in Central San Mateo County (a “Qualified Arbitrator”). If the parties
cannot agree on a Qualified Arbitrator, then within a second period of seven (7) days, each shall select a Qualified Arbitrator and within ten (10) days thereafter the two appointed Qualified Arbitrators shall select a third Qualified
Arbitrator (which third Qualified Arbitrator shall not previously have represented either party hereto) and the third Qualified Arbitrator shall be the sole arbitrator (the “Sole Arbitrator”). If one party shall fail to select a Qualified
Arbitrator within the second seven (7)-day period, then the Qualified Arbitrator chosen by the other party shall be the Sole Arbitrator. Within thirty (30) days after submission of the matter to the Sole Arbitrator, the Sole Arbitrator shall
determine the Prevailing Rental Rate by choosing whichever of the estimates submitted by Landlord and Tenant the Sole Arbitrator judges to be more accurate. The Sole Arbitrator shall notify Landlord and Tenant of his or her decision, which shall be
final and binding. If the Sole Arbitrator believes that expert advice would materially assist him or her, the Sole Arbitrator may retain one or more qualified persons to provide expert advice. The fees of the arbitrator selected by each party shall
be borne by that party. The fees of the Sole Arbitrator and the expenses of the arbitration proceeding, including the fees of any expert witnesses retained by the Sole Arbitrator, shall be shared equally by Landlord and Tenant. 

  
 Addendum 1,
Page 1 

 D. If Tenant timely notifies Landlord that Tenant accepts Landlord’s determination of
the Prevailing Rental Rate, or following resolution of the Prevailing Rental Rate via mutual agreement or via arbitration, whichever shall be applicable, then, on or before the commencement date of the applicable Extended Term, Landlord and Tenant
shall execute an amendment to this Lease prepared by Landlord extending the Term on the same terms provided in this Lease, except as follows: 
 (i) Base Rent shall be adjusted to ninety-five percent (95%) of the Prevailing Rental Rate (which shall be the rental rate set forth in Landlord’s determination of the Prevailing Rental Rate,
the rental rate determined by mutual agreement or the Prevailing Rental Rate determined by arbitration, as the case may be, but in no event less than the Base Rent payable by Tenant immediately prior to the expiration of the initial Term of this
Lease with respect to the first Extended Term and in no event less than the Base Rent payable by Tenant immediately prior to the expiration of the first Extended Term with respect to the second Extended Term); 

(ii) Tenant shall have no further renewal Option (except as expressly set forth in this Addendum 1) unless expressly granted by Landlord
in writing; and 
 (iii) Landlord shall lease the Premises to Tenant in their then-current condition, and Landlord shall not
provide to Tenant any allowances (e.g., improvement allowance) or other tenant inducements, or pay any leasing commissions. 

E. Tenant’s rights under this Addendum shall terminate if (1) this Lease or Tenant’s right to possession of the Premises
is terminated, (2) Tenant assigns any of its interest in this Lease or sublets any portion of the Premises, or (3) Tenant fails to timely exercise its Option under this Addendum, time being of the essence with respect to Tenant’s
exercise thereof. Tenant shall have no other rights to extend the Term of the Lease under this Addendum unless Landlord and Tenant otherwise agree in writing. 
 4. Condition of Premises for the Extended Term. If Tenant timely and properly exercises this Option, in strict accordance with the terms contained herein, Tenant shall accept the Premises in
its then “As-Is” condition and, accordingly, Landlord shall not be required to perform any additional improvements to the Premises. Tenant shall not be responsible for brokerage commissions payable to a broker procured or hired by Tenant
in connection with the Option if Landlord has agreed in writing to pay such commission. 
 5. Limitations On, and Conditions To, Extension
Option. This Option is personal to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as part of the Lease. At Landlord’s option, all rights of Tenant under this Option shall terminate and be of no force or
effect if any of the following individual events occur or any combination thereof occur: (1) Tenant has been in default at any time during the initial Term or first Extended Term, as applicable, of the Lease, or is in default of any provision
of the Lease on the date Landlord receives the Option Notice; and/or (2) Tenant has assigned its rights and obligations under all or part of the Lease or Tenant has subleased all or part of the Premises; and/or (3) Tenant’s financial
condition is unacceptable to Landlord at the time the Option Notice is delivered to Landlord; and/or (4) Tenant has failed to exercise properly this Option in a timely manner in strict accordance with the provisions of this Addendum; and/or
(5) Tenant no longer has possession of all or any part of the Premises under the Lease, or if the Lease has been terminated earlier, pursuant to the terms and provisions of the Lease. 
 6. Time is of the Essence. Time is of the essence with respect to each and every time period described in this Addendum. 

  
 Addendum 1,
Page 2 

 Addendum 2 
 Right of First Offer 
 This Addendum 2 (“Addendum 2”) is incorporated as a part
of that certain Lease dated December     , 2010 (the “Lease”), by and between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”), and Pacific Biosciences of California,
Inc., a Delaware corporation dba Pac Bio, Inc. (“Tenant”), for the leasing of those certain premises commonly known as 1003 – 1005 Hamilton Avenue, Menlo Park, California, as more particularly described in Exhibit A to
the Lease (the “Premises”). Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Lease. 
 During the first three (3) years of the initial Term of the Lease only, Tenant shall have a one-time right of first offer to lease (the “Offer”) any portion of the buildings located at:
(a) 1050-1098 Hamilton Court, (b) 923-925 Hamilton Avenue, and (c) 990-998 Hamilton Avenue (each, an “Expansion Space” and collectively, “Expansion Spaces”). A description of each of the Expansion Spaces is
attached hereto and incorporated herein by this reference as Schedule 1 to this Addendum 2. Tenant’s Right of First Offer, as granted herein, is subject to the following conditions: 

i. The Right of First Offer shall be void if, at the time of exercise of the Right of First Offer, Tenant is then currently in Default
under the Lease beyond the expiration of applicable cure periods; 
 ii. The Right of First Offer shall be void if there has
occurred a material and adverse change to Tenant’s financial condition; 
 iii Landlord shall only be required to lease the
Expansion Spaces to Tenant on such terms and conditions as are satisfactory to Landlord, in Landlord’s sole discretion; 

iv. The Right of First Offer is subject to the rights and options of any existing tenants (and their respective successors and assigns)
presently occupying the Expansion Spaces; provided, Landlord agrees to notify Tenant in writing in the event Landlord receives a written offer to lease any of the Expansion Spaces during the period of time that an Expansion Space remains subject to
the rights and options of the existing tenants (and their respective successors and assigns) and such written notice shall be deemed a “Landlord’s Notice” (defined below) and all of the terms and conditions of this Addendum 2 shall be
deemed applicable to such prospective lease by Tenant of an Expansion Space, including but not limited to (a) Tenant’s delivery of the Election Notice within five (5) business days following the delivery by Landlord of Landlord’s
Notice and (b) the leasing of such Expansion Spaces shall be on terms satisfactory to Landlord, in Landlord’s sole discretion; provided, further, the term of the lease with respect to such Expansion Space shall not commence until the
rights and options of the existing tenant (and their respective successors and assigns) with respect to such Expansion Space have expired or terminated, and such tenant(s) has fully vacated and surrendered such Expansion Space; and 

v. The Right of First Offer is a one-time right with respect to each Expansion Space and not a continuing right. For example, if an Offer
refers to an Expansion Space at 1050-1098 Hamilton Court, and Tenant does not deliver timely an Election Notice to Landlord for such Expansion Space, Landlord shall no longer be obligated to re-offer such Expansion Space at 1050-1098 Hamilton Court
but Tenant’s Right of First Offer shall remain in effect and valid with respect to the other Expansion Spaces and any other Expansion Space at 1050-1098 Hamilton Court. 
 So long as the above conditions are satisfied, in the event any of the Expansion Spaces become vacant and Landlord desires to lease such Expansion Space(s), Landlord shall notify Tenant thereof in writing
and shall include therein the terms and conditions upon which Landlord is then willing to lease the Expansion Space(s) to Tenant (“Landlord’s Notice”). Tenant shall have five (5) business days after delivery of such notice to
notify Landlord, in writing (the “Election Notice”), of Tenant’s election to lease the Expansion Space(s) referenced in Landlord’s Notice upon the terms and conditions set forth in Landlord’s Notice. If Tenant elects not to
lease all of such Expansion Space(s) so referenced or Tenant fails to notify Landlord of Tenant’s election to lease all such Expansion Space(s) within the time specified herein, it shall be deemed that (i) Tenant has elected not to lease
said Expansion Space(s); (ii) Landlord may thereafter market such Expansion Space(s) to third parties; and (iii) all rights of Tenant in and to this Right of First Offer shall terminate and thereafter be of no further force or effect with
respect to such referenced Expansion Space(s). Time is of the essence herein. 
 In the event Tenant properly and timely exercises this Right of
First Offer as herein provided, Tenant shall deliver to Landlord a non-refundable deposit in the amount equivalent to one month’s Base Rent for the Expansion Space(s), and the parties shall have ten (10) working days after Landlord
receives the Election Notice from Tenant in which to execute an amendment to this Lease setting forth the agreed-upon terms. Such amendment to this Lease, shall provide for, among other things, the addition of the applicable Expansion Space(s) to
the Premises, the adjustment of the Base Rent and the percentage of Tenant’s Share. Upon full execution of an amendment for such Expansion Space(s), the non-refundable deposit shall be credited toward Base Rent for such Expansion Space(s), as
agreed upon by the parties. If the parties fail to timely execute and deliver such amendment, Landlord shall retain the non-refundable deposit and Tenant shall have no rights, title or interest therein. Notwithstanding the foregoing, Landlord shall
(a) return to Tenant the non-refundable deposit if in the amendment to the Lease Landlord solely (and without Tenant’s consent or approval) deviates from the terms proposed by Landlord for the leasing of the applicable Expansion Space(s)
to Tenant as set forth in Landlord’s Notice and (b) be obligated to return the non-refundable deposit if Landlord’s failure to execute and deliver the amendment is due to Landlord’s default under this Addendum 2. 

The Right of First Offer shall terminate and be of no force or effect if, at any time, (i) Tenant is in Default under this Lease beyond the
expiration of applicable cure periods or (ii) the Lease has been assigned or the Premises are being subleased, except in each case to an Affiliate, at the time the Right of First Offer is offered to Tenant. The Right of First

  
 Addendum 2,
Page 1 

 
Offer is personal to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as a part of the Lease, except to an Affiliate. If Tenant does not timely and properly elect to
exercise the Right of First Offer granted herein with respect to an offered Expansion Space, based upon the terms proposed by Landlord as set forth in Landlord’s Notice, all rights, title and interest of Tenant in and to the Right of First
Offer with respect to such Expansion Space shall terminate and be of no further force or effect. 

  
 Addendum 2,
Page 2 

 Schedule 1 
 [To Be Attached] 

  
 Addendum 2,
Page 3 

 Addendum 3 
 Right of First Refusal 
 This Right of First Refusal Addendum (“Addendum”) is
incorporated as a part of that certain Lease dated December     , 2010 (the “Lease”), by and between Willow Park Holding Company II, L.P., a Delaware limited partnership (“Landlord”), and Pacific
Biosciences of California, Inc., a Delaware corporation dba Pac Bio, Inc. (“Tenant”), for the leasing of those certain premises commonly known as 1003-1005 Hamilton Avenue, Menlo Park, California, as more particularly described in
Exhibit A to the Lease (the “Premises”). Any capitalized terms used herein and not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Lease. 

Commencing on the first (1st) day of the
        (        ) year of the initial Term and continuing through and until the expiration of the
        (        ) year of the initial Term, Tenant shall have a one-time first right of refusal to lease (the “Right of First Refusal”) any
portion of the building located at 1360 Willow Road, Menlo Park, California (the Building and a portion of the Building which is the subject of a Landlord’s Notice (defined below), an “Expansion Space”). A description of all of the
Expansion Space is attached hereto and incorporated herein by this reference as Schedule 1 to this Addendum 3. Tenant’s Right of First Refusal, as granted herein, is subject to the following conditions: 

 

	 	i.	The Right of First Refusal shall be void if, at the time of exercise of the Right of First Refusal, Tenant is then currently in Default under the Lease beyond the
expiration of applicable cure periods; 

  

	 	ii.	The Right of First Refusal shall be void if there has occurred a material and adverse change to Tenant’s financial condition; and 

 

	 	iii.	The Right of First Refusal is subject to the rights and options of the existing tenants (and their respective successors and assigns) presently occupying the Expansion
Space. 

 This Right of First Refusal is a one-time right with respect to a particular Expansion Space and not a continuing right.
For example, if Tenant does not deliver timely an Election Notice to Landlord for a particular Expansion Space (i.e., the particular Expansion Space which is the subject of a Landlord’s Notice), Landlord shall not be obligated to notify Tenant
at any future date of Landlord’s receipt of an offer Landlord is willing to accept with respect to such Expansion Space. 
 So long as the
above conditions are satisfied, and upon Landlord’s receipt of a third party offer to lease an Expansion Space which offer Landlord is willing to accept, Landlord shall notify Tenant thereof, in writing (“Landlord’s Notice”).
Tenant shall have five (5) business days after delivery of such notice to notify Landlord, in writing (the “Election Notice”), of Tenant’s election to lease all of the Expansion Space then offered by Landlord upon all of the
terms and conditions set forth in this Lease. If Tenant elects not to lease all of the Expansion Space then offered by Landlord or Tenant fails to notify Landlord of Tenant’s election to lease all the Expansion Space then offered by Landlord
within the time specified herein, it shall be deemed that (i) Tenant has elected not to lease said Expansion Space, (ii) Landlord may thereafter enter into a lease agreement with the third party which triggered this Right of First Refusal
with respect to such Expansion Space; and (iii) all rights of Tenant in and to this Right of First Refusal with respect to such Expansion Space shall be null and void and of no further force or effect. Time is of the essence herein. 

In the event Tenant properly and timely exercises this Right of First Refusal as herein provided, Tenant shall deliver to Landlord a non-refundable
deposit in the amount equivalent to one month’s Base Rent for the Expansion Space, and the parties shall have ten (10) working days after Landlord receives the Election Notice from Tenant in which to execute an amendment to this Lease
setting forth the agreed-upon terms. Such amendment to this Lease, shall provide for, among other things, the addition of the Expansion Space to the Premises, the adjustment of the Base Rent and the percentage of Tenant’s Share. Upon full
execution of an amendment for the Expansion Space, the non-refundable deposit shall be credited toward Base Rent for the Expansion Space, as agreed upon by the parties. If the parties fail to timely execute and deliver such amendment, Landlord shall
retain the non-refundable deposit and Tenant shall have no rights, title or interest therein. Notwithstanding the foregoing, Landlord shall (a) return to Tenant the non-refundable deposit if in the amendment to the Lease Landlord solely (and
without Tenant’s consent or approval) deviates from the terms proposed by Landlord for the leasing of the Expansion Space to Tenant as set forth in Landlord’s Notice and (b) be obligated to return the non-refundable deposit if
Landlord’s failure to execute and deliver the amendment is due to Landlord’s default under this Addendum 3. 
 The Right of First
Refusal shall terminate and be of no force or effect if, at any time, (i) Tenant is in Default under this Lease beyond the expiration of applicable cure periods or (ii) the Lease has been assigned or the Premises are being subleased,
except in each case to an Affiliate, at the time the Right of First Refusal is offered to Tenant. The Right of First Refusal is personal to Tenant and may not be assigned, voluntarily or involuntarily, separate from or as a part of the Lease, except
to an Affiliate. If Tenant does not timely and properly elect to exercise the Right of First Refusal granted herein, based upon the terms proposed by Landlord as set forth in Landlord’s Notice, all rights, title and interest of Tenant in and to
the Right of First Refusal shall terminate and be of no further force or effect. 

  
 Addendum 3,
Page 1 

 Schedule 1 
 [To Be Attached] 

  
 Addendum 3,
Page 2Indenture, dated as of March 17, 2011 by and among the Company

 Exhibit 4.1 
 EXECUTION VERSION 
  

 
  

K-V PHARMACEUTICAL COMPANY 
 and 
 EACH OF THE GUARANTORS NAMED HEREIN 

and 

WILMINGTON TRUST FSB, 
 as Trustee 
  

 
 INDENTURE

 Dated as of March 17, 2011 
  

 
 $ 225,000,000
Principal Amount 
 12% Senior Secured Notes due 2015 

 
  

 

 CROSS-REFERENCE TABLE 

 

			
	 TIA
 Section
	  	Indenture
Section
	310(a)(1)	  	7.10
	      (a)(2)	  	7.10
	      (a)(3)	  	N.A.
	      (a)(4)	  	N.A.
	      (a)(5)	  	N.A.
	      (b)	  	7.08; 7.10
	      (c)	  	N.A.
	311(a)	  	7.11
	      (b)	  	7.11
	      (c)	  	N.A.
	312(a)	  	2.05
	      (b)	  	12.03
	      (c)	  	12.03
	313(a)	  	7.06
	      (b)(1)	  	N.A.
	      (b)(2)	  	7.06
	      (c)	  	7.06; 12.02
	      (d)	  	7.06
	314(a)	  	4.03
	      (b)	  	N.A.
	      (c)(1)	  	12.04
	      (c)(2)	  	12.04
	      (c)(3)	  	N.A.
	      (d)	  	N.A.
	      (e)	  	12.05
	      (f)	  	N.A.
	315(a)	  	7.01(B)
	      (b)	  	7.05; 12.02
	      (c)	  	7.01(A)
	      (d)	  	7.01(C)
	      (e)	  	6.11
	316(a) (last sentence)	  	2.09
	      (a)(1)(A)	  	6.05
	      (a)(1)(B)	  	6.04
	      (a)(2)	  	N.A.
	      (b)	  	6.07
	      (c)	  	N.A.
	317(a)(1)	  	6.08
	      (a)(2)	  	6.09
	      (b)	  	2.04
	318(a)	  	12.01

  
 I 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 I.       DEFINITIONS AND INCORPORATION BY REFERENCE
	  	 	1	  
		
	 1.01 Definitions
	  	 	1	  
	 1.02 Other Definitions
	  	 	27	  
	 1.03 Incorporation by Reference of Trust Indenture Act
	  	 	28	  
	 1.04 Rules of Construction
	  	 	28	  
		
	 II.     THE SECURITIES
	  	 	29	  
		
	 2.01 Form and Dating
	  	 	29	  
	 2.02 Execution and Authentication
	  	 	29	  
	 2.03 Registrar, and Paying Agent
	  	 	30	  
	 2.04 Paying Agent to Hold Money in Trust
	  	 	31	  
	 2.05 Securityholder Lists
	  	 	31	  
	 2.06 Transfer and Exchange
	  	 	31	  
	 2.07 Replacement Securities
	  	 	32	  
	 2.08 Outstanding Securities
	  	 	32	  
	 2.09 Securities Held by the Company or an Affiliate
	  	 	33	  
	 2.10 Temporary Securities
	  	 	33	  
	 2.11 Cancellation
	  	 	33	  
	 2.12 Defaulted Interest
	  	 	33	  
	 2.13 CUSIP Numbers
	  	 	34	  
	 2.14 Deposit of Moneys
	  	 	34	  
	 2.15 Book-Entry Provisions for Global Securities
	  	 	34	  
	 2.16 Special Transfer Provisions
	  	 	35	  
	 2.17 Restrictive Legends
	  	 	37	  
	 2.18 Automatic Exchange from Restricted Global Note to Unrestricted Global Note
	  	 	37	  
	 2.19 Ranking
	  	 	38	  
	 2.20 Post-Exchange Notes
	  	 	38	  
		
	 III.    REDEMPTION AND REPURCHASE
	  	 	39	  
		
	 3.01 Right of Redemption and Repurchase
	  	 	39	  
	 3.02 Notices to Trustee
	  	 	40	  
	 3.03 Selection of Securities to Be Redeemed
	  	 	40	  
	 3.04 Notice of Redemption
	  	 	41	  
	 3.05 Effect of Notice of Redemption
	  	 	42	  
	 3.06 Deposit of Redemption Price
	  	 	42	  
	 3.07 Securities Redeemed in Part
	  	 	43	  
	 3.08 Repurchase at Option of Holder Upon a Fundamental Change
	  	 	43	  
	 3.09 Repurchase at Option of Holder Upon an Asset Sale
	  	 	49	  

  
 -i-

					
		
	 IV.   COVENANTS
	  	 	54	  
		
	 4.01 Payment of Securities
	  	 	54	  
	 4.02 Maintenance of Office or Agency
	  	 	54	  
	 4.03 SEC Reports and Rule 144A Information and Other Reports
	  	 	54	  
	 4.04 Compliance Certificate
	  	 	55	  
	 4.05 Stay, Extension and Usury Laws
	  	 	56	  
	 4.06 Corporate Existence
	  	 	56	  
	 4.07 Notice of Default
	  	 	56	  
	 4.08 Payment of Taxes
	  	 	56	  
	 4.09 Maintenance of Properties and Insurance
	  	 	57	  
	 4.10 [Reserved]
	  	 	57	  
	 4.11 Limitation on Restricted Payments
	  	 	57	  
	 4.12 Limitations on Transactions with Affiliates
	  	 	61	  
	 4.13 Limitation on Incurrence of Additional Indebtedness and the Issuance of Disqualified Capital Stock
	  	 	62	  
	 4.14 Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	  	 	63	  
	 4.15 Limitation on Asset Sales
	  	 	65	  
	 4.16 Limitation on Liens
	  	 	66	  
	 4.17 Conduct of Business
	  	 	67	  
	 4.18 Payments to Hologic
	  	 	67	  
	 4.19 [Reserved]
	  	 	67	  
	 4.20 Limitation on Sale and Leaseback Transactions
	  	 	67	  
	 4.21 Payments for Consents
	  	 	68	  
	 4.22 Exchange Offer
	  	 	68	  
	 4.23 Interest Reserve Account
	  	 	69	  
	 4.24 Additional Guarantors to Become Party to Collateral Documents
	  	 	70	  
	 4.25 No Impairment of Security Interest
	  	 	70	  
	 4.26 Certain Post-Closing Obligations
	  	 	70	  
		
	 V.     SUCCESSORS
	  	 	70	  
		
	 5.01 When Company May Merge, etc.
	  	 	70	  
	 5.02 Successor Substituted
	  	 	71	  
		
	 VI.   DEFAULTS AND REMEDIES
	  	 	71	  
		
	 6.01 Events of Default
	  	 	71	  
	 6.02 Acceleration
	  	 	74	  
	 6.03 Other Remedies
	  	 	75	  
	 6.04 Waiver of Past Defaults
	  	 	75	  
	 6.05 Control by Majority
	  	 	75	  
	 6.06 Limitation on Suits
	  	 	76	  
	 6.07 Rights of Holders to Receive Payment
	  	 	76	  
	 6.08 Collection Suit by Trustee
	  	 	76	  
	 6.09 Trustee May File Proofs of Claim
	  	 	76	  

  
 -ii-

					
	 6.10 Priorities
	  	 	77	  
	 6.11 Undertaking for Costs
	  	 	77	  
		
	 VII.  TRUSTEE
	  	 	78	  
		
	 7.01 Duties of Trustee
	  	 	78	  
	 7.02 Rights of Trustee
	  	 	79	  
	 7.03 Individual Rights of Trustee
	  	 	80	  
	 7.04 Trustee’s Disclaimer
	  	 	81	  
	 7.05 Notice of Defaults
	  	 	81	  
	 7.06 Reports by Trustee to Holders
	  	 	81	  
	 7.07 Compensation and Indemnity
	  	 	81	  
	 7.08 Replacement of Trustee
	  	 	82	  
	 7.09 Successor Trustee by Merger, etc.
	  	 	83	  
	 7.10 Eligibility; Disqualification
	  	 	83	  
	 7.11 Preferential Collection of Claims Against Company
	  	 	83	  
		
	 VIII. SUBSIDIARY GUARANTEES
	  	 	83	  
		
	 8.01 Subsidiary Guarantees
	  	 	83	  
	 8.02 Guarantors May Consolidate, Etc., on Certain Terms
	  	 	85	  
	 8.03 Release of Subsidiary Guarantees
	  	 	86	  
	 8.04 Fraudulent Conveyances
	  	 	86	  
	 8.05 Additional Subsidiary Guarantees
	  	 	86	  
	 8.06 Execution and Delivery of Guaranty
	  	 	87	  
		
	 IX.   SECURITY
	  	 	87	  
		
	 9.01 Collateral Documents
	  	 	87	  
	 9.02 Opinions of Counsel
	  	 	88	  
	 9.03 Application of Proceeds of Collateral
	  	 	88	  
	 9.04 Additional Collateral
	  	 	88	  
	 9.05 Release of Collateral
	  	 	90	  
	 9.06 Suits to Protect the Collateral
	  	 	92	  
	 9.07 Certain TIA Requirements
	  	 	92	  
	 9.08 Use of Collateral
	  	 	92	  
		
	 X.     DISCHARGE AND DEFEASANCE OF INDENTURE
	  	 	92	  
		
	 10.01 Legal Defeasance and Covenant Defeasance
	  	 	92	  
	 10.02 Termination of the Obligations of the Company; Satisfaction and Discharge
	  	 	94	  
	 10.03 Application of Trust Money
	  	 	95	  
	 10.04 Repayment to Company
	  	 	95	  
	 10.05 Reinstatement
	  	 	95	  

  
 -iii-

					
	 XI.   AMENDMENTS
	  	 	96	  
		
	 11.01 Without Consent of Holders
	  	 	96	  
	 11.02 With Consent of Holders
	  	 	97	  
	 11.03 Compliance with Trust Indenture Act
	  	 	98	  
	 11.04 Revocation and Effect of Consents
	  	 	98	  
	 11.05 Notation on or Exchange of Securities
	  	 	98	  
	 11.06 Trustee Protected
	  	 	99	  
		
	 XII.  MISCELLANEOUS
	  	 	99	  
		
	 12.01 Trust Indenture Act Controls
	  	 	99	  
	 12.02 Notices
	  	 	99	  
	 12.03 Communication by Holders with Other Holders
	  	 	100	  
	 12.04 Certificate and Opinion as to Conditions Precedent
	  	 	100	  
	 12.05 Statements Required in Certificate or Opinion
	  	 	100	  
	 12.06 Rules by Trustee and Agents
	  	 	101	  
	 12.07 Legal Holidays
	  	 	101	  
	 12.08 Duplicate Originals
	  	 	101	  
	 12.09 Governing Law
	  	 	101	  
	 12.10 No Adverse Interpretation of Other Agreements
	  	 	102	  
	 12.11 Successors
	  	 	102	  
	 12.12 Separability
	  	 	102	  
	 12.13 Table of Contents, Headings, etc.
	  	 	102	  
	 12.14 Calculations in Respect of the Securities
	  	 	102	  

  

					
	 Exhibit A
	 	-	    	Form of Security
			
	 Exhibit B-1
	 	-	    	Form of Private Placement Legend
			
	 Exhibit B-2
	 	-	    	Form of Legend for Global Security
			
	 Exhibit B-3
	 	-	    	Form of Original Issue Discount Legend
			
	 Exhibit C-1
	 	-	    	Form of Transferor Certificate in Connection with Transfers Pursuant to Regulation S
			
	 Exhibit C-2
	 	-	    	Form of Transferee Certificate in Connection with Transfers Pursuant to Regulation S
			
	 Exhibit D
	 	-	    	Form of Transferor Certificate in Connection with Transfers Pursuant to Rule 144A

  
 -iv-

 INDENTURE, dated as of March 17, 2011, between K-V Pharmaceutical Company, a
Delaware corporation (the “Company”), and Wilmington Trust FSB, as trustee (the “Trustee”). 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the
Company’s 12% Senior Secured Notes due 2015 (the “Securities, which term shall include, without duplication, Pre-Exchange Securities and Post-Exchange Securities, each as defined herein). 

I. DEFINITIONS AND INCORPORATION BY REFERENCE 
 1.01 DEFINITIONS. 
 “Acquired Indebtedness”
means Indebtedness of a Person or any of its Subsidiaries that either (i) exists at the time such Person becomes a Restricted Subsidiary of the Company or at the time it merges or consolidates with or into the Company or any of its Restricted
Subsidiaries or (ii) is assumed in connection with the acquisition, by the Company, of assets from such Person; provided, however, that “Acquired Indebtedness” shall not include any Indebtedness incurred by such Person
in connection with, or in anticipation or contemplation of, such Person becoming a Restricted Subsidiary of the Company or such acquisition, merger or consolidation. 
 “Affiliate” means any person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company. For this purpose, “control” shall
mean the power to direct the management and policies of a person through the ownership of securities, by contract or otherwise. 

“Asset Acquisition” means: (i) an Investment by the Company or any of its Restricted Subsidiaries in any other
Person, pursuant to which investment such Person shall become a Restricted Subsidiary of the Company or shall be merged with or into the Company or any of its Restricted Subsidiaries; or (ii) the acquisition, by the Company or any of its
Restricted Subsidiaries, of the assets of any Person (other than a Restricted Subsidiary of the Company) which constitute all or substantially all of the assets of such Person or comprise any division or line of business of such Person or any other
properties or assets of such Person, other than in the ordinary course of business, including in each case, acquisitions of licenses, patents and other rights (including new drug applications and abbreviated new drug applications) related to
pharmaceuticals. 
 “Asset Sale” means any sale, issuance, conveyance, transfer, lease (other than operating
leases), assignment or other transfer (collectively, a “sale”) for value by the Company or any of its Restricted Subsidiaries to any Person (other than the Company or a Restricted Subsidiary) of (i) any Capital Stock of any Restricted
Subsidiary of the Company; or (ii) any other property or assets of the Company or any Restricted Subsidiary of the Company, in each case other than in the ordinary course of business; provided, however, that “Asset Sale”
shall not include (1) a transaction or series of related transactions for which the Company or its Restricted Subsidiaries receive aggregate consideration of less than $1,000,000; (2) the sale, lease, conveyance, 

  
 -1-

 
disposition or other transfer of all or substantially all of the assets of the Company as permitted under Section 5.01; (3) any Permitted Investment or any Restricted Payment
permitted under Section 4.11; (4) the sale or disposition of cash or Cash Equivalents; (5) the grant of Liens not prohibited by this Indenture; (6) a sale of license rights, patents, or trademarks for use in any country other
than the United States where sales under such license, patent, or trademark do not represent more than 2% of the consolidated sales of the Company and its Restricted Subsidiaries for the four most recent fiscal quarters for which financial
statements are available as of the date of such sale; (7) the sale or transfer of Capital Stock of an Unrestricted Subsidiary; (8) any release of intangible claims or rights in connection with the loss or settlement of a bona fide
lawsuit, dispute or controversy; (9) the replacement, sale or other disposition of used, worn out, obsolete or surplus equipment or inventory or equipment or inventory no longer used or useful in the business of such Person; (10) granting
non-exclusive outbound licenses of intellectual property granted by the Company or any of its Restricted Subsidiaries in the ordinary course of business; (11) the sale of the Citibank Auction Rate Securities; and (12) the dissolution or
winding up of any Subsidiary of the Company that accounts for less than 1% of the Company’s total assets and conducts no material operations on the Issue Date. 
 “Attributable Debt” means, with respect to a Sale and Leaseback Transaction, the present value (discounted at the rate of interest implicit in such transaction, determined in accordance
with GAAP) of the total obligations of the lessee for net rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction (including any period for which such lease has been extended or may, at the option of
the lessor, be extended); provided, however, that if such Sale and Leaseback Transaction results in a Capitalized Lease Obligation, then the amount of Indebtedness represented thereby will be determined in accordance with the
definition of Capitalized Lease Obligation. 
 “Board of Directors” means the Board of Directors of the Company
or any committee thereof authorized to act for it hereunder. 
 “Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

“Capital Stock” of any Person means any and all shares, interests, participations or other equivalents (however
designated) of capital stock of such Person and all warrants or options to acquire such capital stock. 
 “Capitalized
Lease Obligation” means, as to any Person, the obligations of such Person under a lease, which obligations are required, under GAAP, to be classified and accounted for as capital lease obligations. For purposes of this definition, the
amount of such obligations at any date shall be the capitalized amount of such obligations at such date, determined in accordance with GAAP. For the avoidance of doubt, in determining whether a lease is a capitalized lease or an operating lease and
whether interest expense 

  
 -2-

 
exists, such determination shall be made in accordance with GAAP as in existence on the Issue Date. 
 “Cash Equivalents” means: 
 (1) marketable direct
obligations issued by, or unconditionally guaranteed by, the U.S. government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof;

 (2) marketable direct obligations issued by any state of the United States or any political subdivision of any
such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either S&P or Moody’s; 

(3) commercial paper maturing no more than one year from the date of creation thereof and, at the time of acquisition,
having a rating of at least A-1 from S&P or at least P-1 from Moody’s; 
 (4) certificates of deposit or
bankers’ acceptances maturing within one year from the date of acquisition thereof and issued by any bank organized under the laws of the United States or any state thereof or the District of Columbia or any U.S. branch of a foreign bank having
at the date of acquisition thereof combined net capital and surplus of not less than $250,000,000; 
 (5)
repurchase obligations with a term of not more than seven days for underlying securities of the types described in clause (1) above entered into with any bank meeting the qualifications specified in clause (4) above; 

(6) investments in money market funds which invest substantially all their assets in securities of the types described in
clauses (1) through (5) above; and 
 (7) Canadian dollars, Japanese yen, pounds sterling, Euros or, in
the case of any Foreign Subsidiary that is a Restricted Subsidiary, such local currencies held by it from time to time in the ordinary course of business. 
 “Citibank Auction Rate Securities” means the auction rate securities that the Company has the option to purchase from Citibank, N.A. and affiliated entities as of the Issue Date for an
aggregate purchase price not to exceed $72,200,000. 
 “Collateral” means all of the “Collateral”
referred to in the Collateral Documents and all of the other property and assets that are or are required under the terms of this Indenture and the Collateral Documents to be subject to Liens in favor of the Collateral Agent for the benefit of the
Secured Parties. Notwithstanding the foregoing, “Collateral” shall not include the Excluded Assets. 

  
 -3-

 “Collateral Agent” means the Trustee, in its capacity as collateral agent
for the Secured Parties. 
 “Collateral Documents” means, collectively, (a) the Pledge and Security
Agreement, (b) the Mortgages, (c) the Intellectual Property Security Agreements, (d) the Controlled Account Agreements, (e) the Interest Reserve Account Control Agreement and (f) any other documents providing for any Lien,
pledge, encumbrance, mortgage or security interest on any or all of the Obligors’ assets or the ownership interests thereof in favor of the Collateral Agent for the benefit of the Secured Parties, in each case, as amended, restated,
supplemented, replaced or otherwise modified from time to time in accordance with the terms thereof. 
 “Common
Stock” of any Person means any class of common stock or an equivalent interest (including, but not limited to, a unit of beneficial interest in a trust or a limited partnership interest) of such Person. 

“Company” means the party named as such above until a successor replaces it pursuant to Article V hereof and thereafter
means the successor. The foregoing sentence shall likewise apply to any such successor or subsequent successor. 

“Company Order” or “Company Request” means a written request or order signed on behalf of the Company
by its Chairman of the Board, its Chief Executive Officer, its President, its Chief Operating Officer, its Chief Financial Officer, any Executive Vice President or any Senior Vice President and by its Treasurer or an Assistant Treasurer or its
Secretary or an Assistant Secretary, and delivered to the Trustee. 
 “Confidential Information Memorandum”
means the Company’s certain confidential memorandum, dated as of March 2, 2011, related to the offering of the Securities. 
 “Consolidated EBITDA” means, for any period, the sum, without duplication, and determined on a consolidated basis for the Company and its Restricted Subsidiaries in accordance with GAAP,
of (i) Consolidated Net Income and (ii) to the extent such Consolidated Net Income has been reduced thereby, (a) all income taxes of the Company and its Restricted Subsidiaries paid or accrued in accordance with GAAP for such period;
(b) Consolidated Interest Expense; (c) Consolidated Non-Cash Charges net of any non-cash items increasing such Consolidated Net Income for such period and (d) non-recurring losses net of any non-recurring gains. 

“Consolidated Fixed Charge Coverage Ratio” means, as of any date (the “Transaction Date”), the ratio of
(i) Consolidated EBITDA of the Company during the four consecutive full fiscal quarters (the “Four Quarter Period”) most recently ending on or prior to such Transaction Date and for which internal financial statements are
available to (ii) Consolidated Fixed Charges of the Company for such Four Quarter Period; provided, however, that, for purposes of this definition of “Consolidated Fixed Charge Coverage Ratio”: 

  
 -4-

 (A) “Consolidated EBITDA” and “Consolidated Fixed Charges” shall be
calculated after giving effect to each of the following events on a pro forma basis: (1) the incurrence or repayment, on or after the beginning of such Four Quarter Period and on or before such Transaction Date, of other Indebtedness of the
Company or any of its Restricted Subsidiaries (and the application of the proceeds thereof) (excluding, for purposes of this clause (1) any such incurrence or repayment pursuant to revolving credit facilities), as if such incurrence or
repayment (and the application of the proceeds thereof) occurred on the first day of such Four Quarter Period; and (2) any asset sale or other disposition or Asset Acquisition occurring on or after the beginning of such Four Quarter Period and
on or before such Transaction Date, as if such asset sale or other disposition or Asset Acquisition (including the incurrence or assumption of, or liability for, any such Indebtedness or Acquired Indebtedness and also including any Consolidated
EBITDA associated with such Asset Acquisition) occurred on the first day of such Four Quarter Period; 
 (B) if the Company or
any of its Restricted Subsidiaries directly or indirectly guarantees Indebtedness of another Person, then, for purposes of clause (A) above, the Company will be deemed to have directly incurred or otherwise assumed such guaranteed Indebtedness;

 (C) in calculating “Consolidated Fixed Charges” for purposes of determining the value of clause (ii) (but not
for purposes of calculating the value of clause (i)) of this definition of “Consolidated Fixed Charge Coverage Ratio”: (1) interest on outstanding Indebtedness that is determined on a fluctuating basis as of the Transaction Date
(including Indebtedness actually incurred on the Transaction Date) and that will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the
Transaction Date; and (2) notwithstanding anything to the contrary in the immediately preceding clause (1), interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Interest
Swap Obligations, shall be deemed to accrue at the rate per annum to be paid in cash resulting after giving effect to the operation of such agreements; and 
 (D) whenever pro forma effect is to be given to a transaction, the pro forma calculations shall be made in good faith and certified by the chief financial officer of the Company, and any
such pro forma calculation may include, without duplication, adjustments appropriate to reflect operating expense reductions and other operating improvements or synergies that are based upon readily identifiable measures and are reasonably expected
to be realized within 12 months following the date of determination. 
 “Consolidated Fixed Charges” means, for
any period, the sum, without duplication, of (i) Consolidated Interest Expense; and (ii) the product of (x) the amount of all dividend payments on any series of Preferred Stock of the Company (other than dividends paid in Qualified
Capital Stock) paid, accrued or scheduled to be paid or accrued during such period and (y) a fraction whose numerator is one and whose denominator is the excess of one over the then-current effective consolidated federal, state and local tax
rate of such Person. 

  
 -5-

 “Consolidated Interest Expense” means, for any period, the aggregate
(without duplication) of the interest expense of the Company and its Restricted Subsidiaries for such period, on a consolidated basis, as determined in accordance with GAAP, and including (i) all amortization or accretion of original issue
discount; (ii) the interest component of Capitalized Lease Obligations paid, accrued or scheduled to be paid or accrued by the Company and its Restricted Subsidiaries during such period; and (iii) net cash costs under all Interest Swap
Obligations (including, without limitation, amortization of fees); provided, however, that Consolidated Interest Expense shall not include (w) the amortization or write-off during such period of capitalized financing or debt
issuance costs, (x) the payment of any penalty or premium associated with the early retirement, repayment or prepayment of Indebtedness in connection with the initial issuance of the Securities, (y) non-cash costs under any hedging
arrangements or (z) interest expense recognized under GAAP in respect of obligations that are not Indebtedness under this Indenture solely pursuant to the last parenthetical in clause (b) of the definition of Indebtedness. 

“Consolidated Net Income” means, for any period, the aggregate net income (or loss) of the Company and its Restricted
Subsidiaries for such period on a consolidated basis, determined in accordance with GAAP; provided, however, that the following shall be excluded from Consolidated Net Income: (i) after-tax gains and losses from asset sales or
abandonments or reserves relating thereto; (ii) after-tax items classified as extraordinary gains or losses; (iii) the net income (but not loss) of any Restricted Subsidiary of the Company to the extent that the declaration of dividends or
similar distributions by such Restricted Subsidiary on such income is restricted by a contract, operation of law or otherwise; (iv) the net income of any Person, other than the Company or a Restricted Subsidiary of the Company, except to the
extent of cash dividends or distributions paid to the Company or to a Restricted Subsidiary of the Company by such Person; (v) any restoration to income of any material contingency reserve, except to the extent that provision for such reserve
was made out of Consolidated Net Income accrued at any time following the Issue Date; (vi) income or loss attributable to discontinued operations (including operations disposed of during such period whether or not such operations were
classified as discontinued); (vii) the cumulative effect of a change in accounting principles; (viii) interest expense attributable to dividends on Qualified Capital Stock pursuant to GAAP; (ix) non-cash charges resulting from the
impairment of intangible assets; (x) with respect to Section 4.11 only, in the case of a successor to the Company by consolidation or merger or as a transferee of the Company’s assets, any earnings of such successor prior to
such consolidation, merger or transfer of assets; and (xi) non-cash compensation charges or other non-cash expenses or charges arising from the grant of or issuance or re-pricing of stock, stock options or other equity-based awards or any
amendment, modification, substitution or change of any such stock, stock options or other equity-based awards. 

“Consolidated Non-Cash Charges” means, for any period, the aggregate depreciation, amortization and other non-cash items
and expenses (including asset impairments) of the Company and its Restricted Subsidiaries to the extent they reduce the Consolidated Net Income of the Company and its Restricted Subsidiaries for such period,

  
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determined on a consolidated basis in accordance with GAAP (excluding any such charge which requires an accrual of or a reserve for cash charges for any future period). 

“Controlled Account Agreements” means those certain deposit and securities account control agreements executed and
delivered pursuant to the Pledge and Security Agreement. 
 “Corporate Trust Office of the Trustee” shall be at
the address of the Trustee specified in Section 12.02 or such other address as the Trustee may give notice of to the Company. 
 “Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect the Company or any of its Restricted
Subsidiaries against fluctuations in currency values. 
 “Default” means any event which is, or after notice or
passage of time or both would be, an Event of Default. 
 “Depositary” means The Depository Trust Company, its
nominees and successors. 
 “Designated Assets” means the Company’s (1) generic pharmaceutical
business, the assets of which are held within the Company’s wholly owned subsidiary, Nesher Pharmaceuticals, Inc. as well as in the Company and in its wholly owned subsidiary, DrugTech Corporation, and (2) branded prescription nutritional
products. 
 “Designated Non-Cash Consideration” means non-cash consideration received by the Company or any of
its Restricted Subsidiaries in connection with an Asset Sale as designated pursuant to an Officers’ Certificate. The aggregate fair market value of all Designated Non-Cash Consideration received by the Company after the Issue Date and then
outstanding may not exceed $10,000,000. 
 “Disqualified Capital Stock” means that portion of any Capital Stock
that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event (other than an event that would constitute a Fundamental
Change), (i) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof (except in each case, upon the occurrence of a Fundamental Change), on or prior to 91
days after the final maturity date of the Securities for cash or (ii) is convertible into or exchangeable for debt securities of the Company or its Subsidiaries at any time prior to such maturity. 

“Domestic Restricted Subsidiary” means, with respect to any Person, a Domestic Subsidiary of such Person that is a
Restricted Subsidiary of such Person. 
 “Domestic Subsidiary” means, with respect to any Person, a Subsidiary
of such Person that is not a Foreign Subsidiary of such Person. 

  
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 “Equity Offering” means (i) any underwritten public offering, for
cash, of Common Stock of the Company pursuant to a registration statement filed under the Securities Act with the SEC (other than on Form S-8); or (ii) any private placement, for cash, of Common Stock of the Company to any Person;
provided, however, that “Equity Offering” shall not include issuances of Common Stock upon exercise of options by employees of the Company or any of its Affiliates. 

“Equity Offering Redemption Price” means, with respect to a Security to be redeemed by the Company in accordance with
Section 3.01(F) and Article III, a cash amount equal to the product of (A) the Equity Offering Redemption Premium and (B) the principal amount of such Security. 

“Equity Offering Redemption Premium” means an amount equal to the sum of (i) 100% and (ii) the Stated Interest
Rate. 
 “Event of Loss” means, with respect to any property or asset (tangible or intangible, real or
personal) constituting Collateral, any of the following: 
 (i) any loss, destruction or damage of such property or asset;

 (ii) any institution of any proceeding for the condemnation or seizure of such property or asset or for the exercise of any
right of eminent domain; 
 (iii) any actual condemnation, seizure or taking by exercise of the power of eminent domain or
otherwise of such property or asset, or confiscation of such property or asset or the requisition of the use of such property or asset; or 
 (iv) any settlement in lieu of clauses (ii) or (iii) above. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC
thereunder. 
 “Excluded Assets” means (i) the Company’s Disbursement Deposit Account (so long as no
more than $5,000,000 in the aggregate is on deposit in such Disbursement Deposit Account (as defined below) at the close of each business day) or other deposit and/or securities accounts the balance of which consists exclusively of (A) withheld
income taxes and federal, state or local employment taxes, (B) amounts required to be paid over in respect of employee benefits or payroll and (C) accounts where the maximum daily balance does not exceed $100,000 individually, or $500,000
in the aggregate for all deposit and/or securities accounts excluded from the Collateral pursuant to this clause (i) (C), (ii) real estate mortgaged in favor of Persons other than the Trustee or Collateral Agent on the Issue Date, but only
for so long as such Liens (or Liens permitted under this Indenture to replace such initial Liens) remain outstanding, (iii) leasehold interests in real property, (iv) general intangibles or any lease, license, contract or other property as
to which the grant of a security interest is (A) prohibited by the applicable governing agreement, or would give any other party thereto a right to consent or terminate its obligations thereunder, or would otherwise result in a default, breach
or violation thereof, (B) would constitute or result in the abandonment, invalidation or 

  
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unenforceability of any rights, title or interest of any obligor thereunder or (C) would constitute or result in the violation of any law, regulation permit, order or decree of any
applicable governmental authority, (v) Capital Stock or other equity interests of any Foreign Subsidiary, so long as the aggregate of such Foreign Subsidiary’s and its Subsidiaries’ (x) consolidated income from operations (for
the most recent fiscal year) and (y) consolidated total assets (as of the most recent balance sheet for the most recently completed fiscal quarter) are less than $1,000,000 and $3,000,000, respectively; provided that if consolidated
income from operations or consolidated total assets are equal to or exceed $1,000,000 or $3,000,000, respectively, as aforesaid, no more than 65% of the Capital Stock or other equity interests of the applicable first-tier Foreign Subsidiary shall be
pledged (to the extent such pledge is otherwise in compliance with the terms of the Collateral Documents), (vi) motor vehicles (where perfection is required by means of notation on certificates of title, or similar actions),
(vii) equipment subject to, or secured by, a purchase money debt obligation and (viii) deposit and/or securities accounts of the Company established for the purpose of cash collateralizing letters of credits, so long as (x) the
aggregate amount of cash or securities held in all such accounts is less than $2,500,000 and (y) a lien on such accounts is permitted pursuant to clause (16) of the definition of “Permitted Liens.” For the avoidance of doubt,
Makena and the Company’s rights therein shall not be Collateral until such time as the Lien on such assets in favor of Hologic, Inc. granted pursuant to the Makena Agreement is terminated. As used in this definition, the term “Disbursement
Deposit Account” means the Company’s “DDA” or disbursement account and all related lockbox, overnight and similar expense accounts that are linked to or feed to or are swept into the DDA account automatically or at regular times.

 “Fair Market Value” means, with respect to any asset or property, the price which could be negotiated in an
arm’s length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction. With respect to determinations above $25,000,000, Fair
Market Value shall be determined by the Board of Directors acting in good faith and shall be evidenced by a Board Resolution delivered to the Trustee; provided, however, that, except in the case of determining the Fair Market Value of
assets in connection with an Asset Sale not involving the sale of assets to an Affiliate, with respect to determinations above $50,000,000, the Board of Directors’ determination must be based upon an opinion or appraisal issued by an
accounting, appraisal or investment banking firm of national standing. For the purposes of Section 4.20, Fair Market Value should be determined in the context of a Sale and Leaseback Transaction, including any customary discount in the
purchase price established in such transactions. 
 “Foreign Subsidiary” means, with respect to any Person, any
Subsidiary of such Person that is organized under the laws of any jurisdiction other than the United States, any state thereof or the District of Columbia. 
 “GAAP” means accounting principles generally accepted in the United States as in effect on the Issue Date. 

  
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 “Guarantors” means each of (1) the Domestic Restricted Subsidiaries of
the Company as of the Issue Date (other than MECW); (2) any other Subsidiary of the Company that becomes a Guarantor pursuant to this Indenture; and (3) the respective successors and assigns of the foregoing; provided,
however, that upon the release and discharge of any Person from its Subsidiary Guarantee in accordance with this Indenture, such Person shall cease to be a Guarantor. 
 “Holder” or “Securityholder” means a person in whose name a Security is registered on the Registrar’s books. 

“Indebtedness” of a person means the principal of, premium, if any, and interest on, and all other obligations in
respect of (a) all indebtedness of such person for borrowed money (including all indebtedness evidenced by notes, bonds, debentures or other securities), (b) all obligations (other than trade payables) incurred by such person in the
acquisition (whether by way of purchase, merger, consolidation or otherwise and whether by such person or another person) of any business, real property or other assets to the extent such obligations would appear as a liability of such person on its
financial statements prepared in accordance with GAAP (but not to the extent that such person has the right to settle any such obligation by issuing Capital Stock rather than making payments in cash), (c) all reimbursement obligations of such
person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such person, (d) all Capitalized Lease Obligations of such person, (e) all net obligations of such person under interest
rate swap, currency exchange or similar agreements, (f) all obligations and other liabilities, contingent or otherwise, under any capital lease or related document, including a purchase agreement, conditional sale or other title retention
agreement, in connection with the lease of real property or improvements thereon (or any personal property included as part of any such capital lease) which provides that such person is contractually obligated to purchase or cause a third party to
purchase the leased property or pay an agreed-upon residual value of the leased property, including such person’s obligations under such lease or related document to purchase or cause a third party to purchase such leased property or pay an
agreed-upon residual value of the leased property to the lessor, (g) guarantees by such person of indebtedness described in clauses (a) through (f) of another person, and (h) all renewals, extensions, refundings,
deferrals, restructurings, amendments and modifications of any indebtedness, obligation, guarantee or liability of the kind described in clauses (a) through (g). 
 “Indenture” means this Indenture as amended or supplemented from time to time. 
 “Independent Financial Advisor” means a nationally-recognized accounting, appraisal or investment banking firm that (1) does not, and whose directors, officers and employees or
Affiliates do not, have a direct or indirect material financial interest in the Company or the transaction to which their opinion relates and (2) is otherwise independent and qualified to perform the task for which it is to be engaged in the
judgment of the Board of Directors. 

  
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 “Intellectual Property Security Agreements” has the meaning defined in the
Pledge and Security Agreement. 
 “Intercompany Indebtedness” means (i) any Indebtedness of the Company to
any of its Subsidiaries and (ii) any Indebtedness of a Subsidiary of the Company to the Company or to another Subsidiary of the Company. 
 “Interest Reserve Account” means the Company’s securities account established on or prior to the Issue Date with Wilmington Trust FSB, as securities intermediary, in which the
Company will deposit cash and Cash Equivalents in an amount sufficient to pay the first two scheduled payments of interest on the Securities. 
 “Interest Reserve Account Control Agreement” means that account control agreement, dated as of the Issue Date, between the Company, the Collateral Agent, and Wilmington Trust FSB, as
securities intermediary, providing for the Collateral Agent’s Control (as defined in the Pledge and Security Agreement) over the Interest Reserve Account. 
 “Interest Swap Obligations” means the obligations of any reference Person pursuant to any arrangement with any other Person, whereby such reference Person is directly or indirectly
entitled to receive, from time to time, periodic payments calculated by applying either a floating or a fixed rate of interest on a stated notional amount in exchange for periodic payments to such other Person calculated by applying a fixed or a
floating rate of interest on the same notional amount. “Interest Swap Obligations” shall include, without limitation, interest rate swaps, caps, floors, collars and similar agreements. 

“Investment” in any Person means any advance, loan (other than advances to customers in the ordinary course of business
that are recorded as accounts receivable on the balance sheet of the lender) or other extensions of credit (including, without limitation, by way of guarantee or similar arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the account or use of others, and excluding commission, travel and similar advances to officers and employees made in the ordinary course of business), or any purchase or
acquisition for value of Capital Stock, Indebtedness or other similar instruments issued by such Person, in each case, in any other Person. If the Company or any of its Restricted Subsidiaries issues, sells or otherwise disposes of any Capital Stock
of a Person that is a Restricted Subsidiary such that, after giving effect thereto, such Person is no longer a Restricted Subsidiary or otherwise such entity ceases to be a Restricted Subsidiary, then any Investment by the Company or any of its
Restricted Subsidiaries in such Person remaining after giving effect thereto will be deemed to be a new Investment at such time. The acquisition by the Company or any of its Restricted Subsidiaries of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Restricted Subsidiary in such third Person at such time. Except as otherwise provided for herein, the amount of an Investment shall be its Fair Market Value at the time the Investment
is made and without giving effect to subsequent changes in value. For purposes of the definition of “Unrestricted Subsidiary,” 

  
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the definition of “Restricted Payment” and Section 4.11: (i) “Investment” shall include the portion (proportionate to the Company’s equity interest in such
Subsidiary) of the Fair Market Value of any Subsidiary of the Company at the time that such Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a redesignation of such Subsidiary as a Restricted
Subsidiary, the Company shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary equal to an amount (if positive) equal to the excess, if any, of (A) the Company’s “Investment” in such
Subsidiary at the time of such redesignation over (B) the portion (proportionate to the Company’s equity interest in such Subsidiary) of the Fair Market Value of such Subsidiary at the time of such redesignation; and (ii) any property
transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer. 

“Issue Date” means March 17, 2011. 
 “IRB Financing” means the obligations of the Borrower in connection with the Trust Indenture, dated as of December 1, 2005, by and among St. Louis County, Missouri and UMB Bank,
N.A., as Trustee. 
 “Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including, without limitation, any conditional sale or other title retention agreement, any lease in the nature thereof and any agreement to give any security interest). 

“Makena” means MakenaTM (hydroxyprogesterone caproate injection). 

“Makena Agreement” means that certain asset purchase agreement, dated as of January 16, 2008, between the Company
and Hologic, Inc., providing for the Company’s acquisition of Makena, as amended by the first amendment, dated as of January 8, 2010 and the second amendment, dated of February 4, 2011. 

“Makena NDA Approval Date” means February 4, 2011. 

“Maturity Date” means March 15, 2015. 
 “MECW” means MECW, LLC, a limited liability company formed and existing under the laws of the State of Delaware. 
 “MECW Mortgage Financing” means the obligations of MECW in connection with the Deed of Trust, Leasehold Deed of Trust, Security Agreement and Fixture Filing, dated as of March 23,
2006, by MECW as grantor to Steve Dieckmann, as Trustee for the benefit of LaSalle Bank National Association, as Beneficiary. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Mortgages” means the mortgages, deeds of trust, deeds to secure Indebtedness or other similar documents granting Liens
on real property owned by the Company or any 

  
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Pledgor, as well as the other Collateral secured by and described in the mortgages, deeds of trust, deeds to secure Indebtedness or other similar documents. 

“Net Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the form of cash or Cash Equivalents
(including, without limitation, payments in respect of deferred payment obligations, if received in the form of cash or Cash Equivalents (other than the portion of any such deferred payment constituting interest)) received by the Company or any of
its Restricted Subsidiaries from such Asset Sale, net of: (1) reasonable out-of-pocket expenses and fees relating to such Asset Sale (including legal, accounting and investment banking fees and sales commissions); (2) all taxes and other
costs and expenses actually paid or reasonably estimated in good faith by the Company to be payable in cash in connection with such Asset Sale; (3) repayment of Indebtedness that is secured by the property or assets that are the subject of such
Asset Sale (other than property or assets constituting Collateral) and is required to be repaid in connection with such Asset Sale; and (4) appropriate amounts to be provided by the Company or any of its Restricted Subsidiaries, as the case may
be, as a reserve, in accordance with GAAP, against any liabilities associated with such Asset Sale and retained by the Company or any of its Restricted Subsidiaries, as the case may be, after such Asset Sale (including, without limitation, pension
and other post-employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale). 

“Net Loss Proceeds” means the aggregate cash proceeds received by the Company or any Guarantor, and not required to be
paid over by the Company or any Guarantor, in respect of any Event of Loss, including, without limitation, insurance proceeds, condemnation awards or damages awarded by any judgment, net of the direct cost in recovery of such Net Loss Proceeds
(including, without limitation, legal, accounting, appraisal and insurance adjuster fees and any relocation expenses incurred as a result thereof) and any taxes paid or payable as a result thereof. 

“Obligations” means all obligations for principal, premium, interest (including, with respect to the Securities,
interest accruing thereon after the commencement of an insolvency, bankruptcy or similar proceeding, whether or not a claim for post-filing or post-petition interest is allowed in any such proceeding), penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness. 

“Obligors” means the Company and the Guarantors. 

“Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, the General Counsel, any Executive Vice President, any Senior Vice President, the Treasurer or the Secretary of the Company. 
 “Officers’ Certificate” means a certificate signed by two Officers or by an Officer and an Assistant Treasurer or an Assistant Secretary of the Company. 

  
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 “Opinion of Counsel” means a written opinion from legal counsel reasonably
acceptable to the Trustee who may be an employee of or counsel for the Company, or other counsel. 
 “Optional
Redemption Premium” means an amount equal to the sum of (i) 100% and (ii) the product of (A) 75% and (B) the Stated Interest Rate. 
 “Optional Redemption Price” has the following meaning with respect to a Security to be redeemed by the Company in accordance with Section 3.01(D) and Article III:
(i) if such Redemption Date is on or after March 15, 2013 and before March 15, 2014, a cash amount equal to the product of (A) the Optional Redemption Premium and (B) the principal amount of such Security; and (ii) if
such Redemption Date is on or after March 15, 2014, an amount equal to 100% of the principal amount of such Security. 

“Permitted Business” means any business that is reasonably related, complementary or incidental to the business in which
the Company and its Restricted Subsidiaries are engaged on the Issue Date. 
 “Permitted Holders” means the
lineal descendants of Victor M. Hermelin and their immediate families. 
 “Permitted Indebtedness” means,
without duplication, each of the following: 
 (1) Indebtedness under the Securities issued on the Issue Date or
in the Exchange Offer with respect to such Securities in an aggregate outstanding principal amount not to exceed $225,000,000 and the related Subsidiary Guarantees; 

(2) [reserved]; 
 (3) Indebtedness of the Company (other than Indebtedness described under clause (1) above) and its Restricted Subsidiaries outstanding on the Issue Date, after giving effect to the use of proceeds
from the Securities; 
 (4) any Interest Swap Obligation of the Company or any Restricted Subsidiary of the
Company covering Indebtedness of the Company or any of its Restricted Subsidiaries, provided that (x) such Interest Swap Obligation is entered into for the purpose of fixing or hedging interest rates with respect to any fixed or variable rate
Indebtedness that is permitted by this Indenture to be outstanding and (y) the notional amount of such Interest Swap Obligation does not exceed the principal amount of Indebtedness to which such Interest Swap Obligation relates; 

(5) Indebtedness under any Currency Agreement, provided that such Currency Agreement is not entered into for speculative
purposes and, in the event such Currency Agreement relates to Indebtedness, such Currency Agreement does not increase the outstanding Indebtedness of the Company and its Restricted Subsidiaries other than as a result of fluctuations in foreign
currency exchange rates or by reason of fees, indemnities and compensation payable thereunder; 

  
 -14-

 (6) Intercompany Indebtedness of the Company or a Guarantor for so long as
such Indebtedness is held by the Company or a Guarantor; provided, however, that if, as of any date, any Person other than the Company or a Guarantor owns or holds any such Indebtedness or holds a Lien in respect of any such
Indebtedness, then, on such date, such Indebtedness shall cease to constitute Permitted Indebtedness pursuant to this clause (6); 
 (7) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business, provided that such Indebtedness is extinguished within five business days of incurrence; 
 (8) Indebtedness of the Company or any of its Restricted Subsidiaries in order to provide security for workers’ compensation claims, payment obligations in connection with self-insurance, deferred
compensation or similar requirements in the ordinary course of business; 
 (9) obligations in respect of
performance, bid, appeal and surety bonds, bankers’ acceptances, bank overdrafts (and letters of credit in respect thereof) and completion guarantees provided by the Company or any Restricted Subsidiary in the ordinary course of business;

 (10) Indebtedness represented by Capitalized Lease Obligations and Purchase Money Indebtedness of the Company
and its Restricted Subsidiaries and Refinancings thereof; provided, however, that the maximum amount that may be deemed to be Permitted Indebtedness pursuant to this clause (10) at any time shall not exceed $5,000,000; 

(11) Refinancing Indebtedness; 
 (12) Indebtedness represented by guarantees, by any Restricted Subsidiary of the Company, of Indebtedness incurred by the Company or a Guarantor, provided the incurrence of such Indebtedness by the
Company or such Guarantor is otherwise permitted by the terms of this Indenture; 
 (13) Indebtedness arising
from agreements of the Company or a Restricted Subsidiary of the Company providing for indemnification, “earn-out” obligations, guarantees, adjustment of purchase price or similar obligations, in each case, incurred in connection with the
disposition of any business, assets, rights or capital stock, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or capital stock for the purpose of financing such acquisition;
provided, however, such Indebtedness shall be deemed not to be Permitted Indebtedness pursuant to this clause (13) to the extent the maximum aggregate liability in respect of such Indebtedness exceeds the gross proceeds actually
received by the Company or such Restricted Subsidiary in connection with such disposition; 

  
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 (14) Indebtedness in the form of contingent milestone liabilities incurred
in connection with the acquisition of a product or product right so long as the Company’s pro forma Total Leverage Ratio is less than or equal to 3.0 to 1.0; 

(15) Indebtedness of Foreign Subsidiaries in an amount not to exceed $2,500,000 in the aggregate at any time outstanding
under this clause (15); 
 (16) additional Indebtedness of the Company or any Restricted Subsidiary not to exceed
$500,000 in the aggregate at any time outstanding under this clause (16); 
 (17) Indebtedness in connection with
the dissolution of Ethex Corporation in an amount not to exceed $1,000,000 in the aggregate; and 
 (18)
Indebtedness consisting of financing premiums with respect to insurance policies of the Company and its Restricted Subsidiaries. 
 For purposes of determining compliance with Section 4.13, (a) the outstanding principal amount of any item of Indebtedness shall be counted only once; and (b) in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness described in clauses (1) through (18) above or is entitled to be incurred pursuant to the proviso to Section 4.13(A), the Company shall, in
its sole discretion, classify (or later reclassify) such item of Indebtedness in any manner in one or more categories that complies with Section 4.13. Accrual of interest, accretion or amortization of original issue discount, the payment of
interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on Disqualified Capital Stock in the form of additional shares of the same class of Disqualified Capital Stock or changes in the
amount of Indebtedness under GAAP with respect to an acquisition of rights covered by clause (14), will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Capital Stock for purposes of Section 4.13. 

“Permitted Investments” means: 
 (1) Investments by the Company or any of its Restricted Subsidiaries in any Person that is or will become, immediately after such Investment, a Guarantor or that will merge or consolidate with or into the
Company or a Guarantor, or that transfers or conveys all or substantially all of its assets to the Company or a Guarantor; 
 (2) Investments in the Company by any of its Restricted Subsidiaries, provided that any Indebtedness evidencing such Investment is unsecured and subordinated to the Company’s Obligations under the
Notes and this Indenture; 
 (3) Investments in cash and Cash Equivalents; 

  
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 (4) Currency Agreements and Interest Swap Obligations, in each case, entered
into not for speculative purposes and otherwise in compliance with this Indenture; 
 (5) Investments in the
Securities; 
 (6) Investments in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers in exchange for claims against such trade creditors or customers; 

(7) Investments made by the Company or its Restricted Subsidiaries as a result of consideration received in connection
with an asset sale made in compliance with Section 4.15; 
 (8) Investments in existence on the Issue Date
and any renewals, replacements, refinancings or refundings thereof that do not increase the amount of such Investments; 
 (9) loans and advances (including, without limitation, advances for travel and moving expenses) to employees, officers and directors of the Company and its Restricted Subsidiaries in the ordinary course
of business for bona fide business purposes not in excess of $2,500,000 at any one time outstanding; 

(10) advances to suppliers and customers in the ordinary course of business; 

(11) Investments in Subsidiaries that are not Guarantors in an amount not to exceed $2,500,000 in the aggregate at any
time; 
 (12) Investments constituting the Citibank Auction Rate Securities, so long as (A) prior to the
purchase of such Investments, the Company has received a binding commitment from a willing purchaser to purchase such Investments at a price higher than the purchase price paid by the Company or its Restricted Subsidiaries for such Investments and
(B) such Investments are sold substantially concurrently with the purchase thereof; and 
 (13) Investments
of a Restricted Subsidiary that was acquired after the Issue Date or of any entity merged with or into the Company or a Restricted Subsidiary, so long as the Investment was not made in anticipation of the acquisition or merger and such Investment
does not constitute a majority of the assets acquired. 
 “Permitted Liens” means the following: 

(1) Liens for taxes, assessments or governmental charges or claims that either are not delinquent or are contested in good
faith by appropriate proceedings, provided that the Company or its Restricted Subsidiaries shall have 

  
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set aside on its books such reserves, as to such taxes, assessments or governmental charges or claims, as may be required pursuant to GAAP; 

(2) Liens of landlords, banks (and rights of set-off), carriers, warehousemen, mechanics, suppliers, materialmen,
repairmen and other Liens imposed by law or pursuant to customary reservations or retentions of title incurred in the ordinary course of business for sums not yet delinquent or being contested in good faith, if such reserve or other appropriate
provision, if any, as shall be required by GAAP, shall have been made in respect thereof; 
 (3) Liens incurred
or pledges or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, including any Lien securing letters of credit issued in the ordinary course of
business consistent with past practice in connection therewith, or Liens to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and other
similar obligations (exclusive of obligations for the payment of borrowed money); 
 (4) any judgment Lien not
giving rise to an Event of Default; 
 (5) easements, rights-of-way, zoning restrictions and other similar
charges or encumbrances and other minor defects or irregularities in title in respect of real property not interfering in any material respect with the ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

 (6) any interest or title of a lessor under any Capitalized Lease Obligation permitted pursuant to clause
(10) of the definition of “Permitted Indebtedness,” provided that such Liens do not extend to any property or assets which is not leased property subject to such Capitalized Lease Obligation (other than other property that is subject
to a separate Capitalized Lease Obligation with the same lessor or any of its affiliates pursuant to clause (10) of the definition of “Permitted Indebtedness”); 

(7) Liens securing Purchase Money Indebtedness permitted pursuant to clause (10) of the definition of “Permitted
Indebtedness,” provided that (i) such Indebtedness does not exceed the cost of the property or assets acquired, together, in the case of real property, with the cost of the construction thereof and improvements thereto, and is not secured
by a Lien on any property or assets of the Company or any Restricted Subsidiary of the Company other than such property or assets so acquired or constructed and improvements thereto and (ii) the Lien securing such Indebtedness is created within
180 days of such acquisition or construction or, in the case of a refinancing of any Purchase Money Indebtedness, within 180 days of such refinancing; 
 (8) Liens upon specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’

  
 -18-

 
acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods; 

(9) Liens securing reimbursement obligations with respect to commercial letters of credit which encumber documents and
other property relating to such letters of credit and products and proceeds thereof; 
 (10) Liens encumbering
deposits made to secure obligations arising from statutory, regulatory, contractual, or warranty requirements of the Company or any of its Restricted Subsidiaries, including rights of offset and set-off; 

(11) Liens securing Interest Swap Obligations that relate to Indebtedness that is otherwise permitted under this
Indenture; 
 (12) Liens securing Indebtedness under Currency Agreements that are permitted under this Indenture;

 (13) Liens securing Acquired Indebtedness incurred in accordance with Section 4.13, provided that
(i) such Liens secured such Acquired Indebtedness at the time of and prior to the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company and were not granted in connection with, or in anticipation of,
the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company; and (ii) such Liens do not extend to or cover any property or assets of the Company or any of its Restricted Subsidiaries other than the
property or assets that secured the Acquired Indebtedness prior to the time such Indebtedness became Acquired Indebtedness of the Company or any of its a Restricted Subsidiaries and are no more favorable to the lienholders than those securing the
Acquired Indebtedness prior to the incurrence of such Acquired Indebtedness by the Company or such Restricted Subsidiary; 
 (14) Liens existing as of the Issue Date and securing Indebtedness permitted to be outstanding under clause (3) of the definition of the term “Permitted Indebtedness,” to the extent and in
the manner such Liens are in effect on the Issue Date and any renewals and extensions thereof so long as the aggregate principal amount of the Indebtedness being secured does not increase (plus accrued interest and premium in respect thereof) and
the Lien does not extend to any additional assets; 
 (15) Liens securing the Securities and all other
Obligations under this Indenture, the Collateral Documents and the Subsidiary Guarantees; 
 (16) Liens on up to
$2,500,000 of cash in deposit accounts with financial institutions established for the purpose of cash collateralizing letters of credit; 
 (17) any Lien that (i) secures Refinancing Indebtedness that is incurred to Refinance any Indebtedness that is secured by a Lien that is a Permitted Lien

  
 -19-

 
and that was incurred in accordance with Section 4.13; (ii) is no less favorable to the Holders and is not more favorable to the lienholders with respect to such Lien than the Liens
in respect of the Indebtedness being Refinanced; and (iii) does not extend to or cover any property or assets of the Company or any of its Restricted Subsidiaries not securing the Indebtedness so Refinanced; 

(18) Liens on property of a Person existing at the time such Person is merged with or into or consolidated with the
Company or any of its Restricted Subsidiaries, provided that such Liens were not incurred in contemplation of such merger or consolidation and do not extend to any assets other than those of the Person merged into or consolidated with the Company or
such Restricted Subsidiary; 
 (19) Liens on assets of a Restricted Subsidiary of the Company that is not a
Guarantor to secure Indebtedness of such Restricted Subsidiary that is otherwise permitted under this Indenture; 

(20) Liens arising from filing UCC financing statements regarding leases; 

(21) Liens securing Indebtedness incurred pursuant to clause (14) of the definition of Permitted Indebtedness
(including related Indebtedness permitted by the last sentence of the definition of “Indebtedness”); provided that any Lien granted pursuant to this clause (21) shall be permitted (i) only on the acquired asset that is
subject to future milestone payments and (ii) only during such time as there remains a potential obligation to make one or more such milestone payments; 
 (22) Liens on insurance policies and the proceeds thereof securing the financing of premiums with respect thereto; 
 (23) non-exclusive Licenses of intellectual property granted by the Company or any Restricted Subsidiary in the ordinary course of business; 

(24) interests of title of lessor or sublessor under any lease of real property; 

(25) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods; 
 (26) Liens in respect of any zoning or similar law or right reserved
to or vested in any governmental office or agency to control or regulate the use of any real property; and 

(27) other Liens securing Indebtedness in an aggregate amount not exceeding $1,000,000 outstanding at any time.

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

“Pledge and Security Agreement” means the Pledge and Security Agreement in between the Pledgors and the Collateral Agent
dated as of the Issue Date, as amended, restated, modified or supplemented from time to time in accordance with this Indenture. 

“Pledgors” has the meaning defined in the Pledge and Security Agreement. 

“Post-Exchange Securities” means Securities issued pursuant to Sections 2.20 and 4.22, which Post-Exchange
Securities shall (1) be substantially in the form set forth in Exhibit A but which shall (a) not bear the Private Placement Legend and (b) have appropriate changes made to the “Form of Assignment” on the reverse
thereof; and (2) bear interest in the same manner as, and at the same rate and on the same dates (and with the same record dates) as that under, the Pre-Exchange Securities, except that, for purposes of determining the amount of the first
interest payment on each Post-Exchange Security, and the Person to whom it must be paid, such Post-Exchange Security and the Pre-Exchange Security exchanged for such Post Exchange Security shall be deemed to be one and the same Security. 

“Pre-Exchange Securities” means Securities issued on the Issue Date, which Securities shall, as provided in Section
2.01, be substantially in the form set forth in Exhibit A and which shall initially bear the Private Placement Legend, except to the extent otherwise provided herein. 

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

 “Provisional Redemption Discount Rate” means a rate, per annum, equal to the sum of the Treasury Rate and 50
basis points. 
 “Provisional Redemption Make-Whole Amount” means, with respect to a Security to be redeemed by
the Company on a Redemption Date in accordance with Section 3.01(E), a cash amount equal to sum of the present value, discounted to such Redemption Date using an annual discount rate equal to the Provisional Redemption Discount Rate, of each
the following: (i) a cash payment to be made on March 15, 2013 in amount equal to the product of (A) the Optional Redemption Premium and (B) the principal amount of such Security; and (ii) each interest payment on such
Security that is scheduled to be made on or after such Redemption Date and on or before March 15, 2013; provided, however, that (1) if such Redemption Date is after a record date for the payment of an installment of interest
and on or before the related interest payment date, then the first scheduled interest payment on such Security on or after such Redemption Date shall be deemed, for purposes of clause (ii) above, to be zero (it being understood

  
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that such scheduled interest payment shall be made in accordance with Section 3.01(G)); and (2) if such Redemption Date does not occur during the period that begins on the day
immediately following a record date for the payment of an installment of interest and ends on, and includes, the related interest payment date, then the amount of the first scheduled interest payment on such Security on or after such Redemption Date
shall be deemed, for purposes of clause (ii) above, to be a cash amount equal to the excess of the actual scheduled interest payment over the amount of unpaid interest that has accrued to, but excluding, such Redemption Date (it being
understood that such amount of accrued and unpaid interest shall be paid, pursuant to Section 3.01(E), to the Holder submitting such Security for Redemption). 
 “Provisional Redemption Price” means, with respect to a Security to be redeemed by the Company in accordance with Section 3.01(E), a cash amount equal to the greater of
(i) 101% of the principal amount of such Security; and (ii) the Provisional Redemption Make-Whole Amount for such Security. 
 “Purchase Money Indebtedness” means Indebtedness of the Company and its Restricted Subsidiaries incurred for the purpose of financing all or any part of the purchase price, or the cost of
installation, construction or improvement, of property or equipment, provided, that the aggregate principal amount of such Indebtedness does not exceed the lesser of (i) the Fair Market Value of such property or equipment and (ii) such
purchase price or cost. 
 “Purchase Notice” means a Purchase Notice in the form set forth in the Securities.

 “QIB” means a “qualified institutional buyer” (as defined in Rule 144A). 

“QIB Global Security” means a Global Security in registered form representing a Security sold pursuant to Rule 144A.

 “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital Stock. 

“Redemption Date” means the date specified for Redemption of the Securities in accordance with the terms of the
Securities and this Indenture. 
 “Redemption Price” means, (i) with respect to a Security to be redeemed
by the Company pursuant to Section 3.01(D), the Optional Redemption Price for such Security; (ii) with respect to a Security to be redeemed by the Company pursuant to Section 3.01(E), the Provisional Redemption Price for such
Security; and (iii) with respect to a Security to be redeemed by the Company pursuant to Section 3.01(F), the Equity Offering Redemption Price for such Security. 
 “Refinance” means, in respect of any security or Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue a security or Indebtedness in
exchange or replacement for, such security or Indebtedness in whole or in part. “Refinanced” and “Refinancing” shall have correlative meanings. 

  
 -22-

 “Refinancing Indebtedness” means Indebtedness that (i) is incurred by
the Company or any Restricted Subsidiary to Refinance Indebtedness incurred in accordance with Section 4.13 (other than Permitted Indebtedness) or clause (1), (3) or (11) of the definition of Permitted Indebtedness; (ii) does
not have an aggregate principal amount (or, if such Indebtedness is issued with original issue discount, an aggregate offering price) that is greater than the sum of (x) the aggregate principal amount of such Indebtedness being Refinanced (or,
if such Indebtedness being Refinanced is issued with original issue discount, the aggregate accreted value) as of the date of such Refinancing plus (y) the amount of fees, expenses, premiums, defeasance costs and accrued and unpaid interest
relating to the Refinancing of such Indebtedness being Refinanced; (iii) does not have (x) a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is incurred that is less than the Weighted Average Life to Maturity of
such Indebtedness being Refinanced or (y) a stated final maturity that is earlier than the final maturity of such Indebtedness being Refinanced; (iv) is not secured by any Lien that that did not, immediately prior to such Refinancing,
secure such Indebtedness being Refinanced; (v) (in the event the Indebtedness being Refinanced is subordinate or junior by its terms to the Securities) is, by its terms, subordinate to the Securities at least to the same extent and in the same
manner as such Indebtedness being Refinanced; and (vi) (in the event the Indebtedness being Refinanced was incurred by a Restricted Subsidiary that is not a Guarantor) is incurred by a Restricted Subsidiary that is not a Guarantor. 

“Regulation D” means Regulation D under the Securities Act. 

“Regulation S” means Regulation S under the Securities Act. 

“Regulation S Global Security” means a Global Security in registered form representing a Security sold in reliance on
Regulation S under the Securities Act. 
 “Responsible Officer” shall mean, when used with respect to the
Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and
who shall have direct responsibility for the administration of this Indenture. 
 “Restricted Payment” means
each of the following: 
 (1) the payment of any dividend or making of any distribution (other than dividends or
distributions payable in Qualified Capital Stock of the Company and dividends and distributions payable to the Company or any of its Restricted Subsidiaries) on or in respect of shares of Capital Stock of the Company or its Restricted Subsidiaries;

 (2) the purchase, redemption or other acquisition or retirement, for value, of any Capital Stock issued by the
Company or any of its Restricted 

  
 -23-

 
Subsidiaries (other than dividends paid by a Restricted Subsidiary on a pro rata basis); 
 (3) the making of any principal payment on, or the purchase, defeasance, redemption, prepayment, decrease or other acquisition or retirement, for value, more than one year prior to any scheduled final
maturity, scheduled repayment or scheduled sinking fund payment, of any Indebtedness of the Company or any Guarantor that (i) is senior unsecured Indebtedness or Indebtedness secured by a Lien on the Collateral that is junior to the Lien
securing the Obligations or (ii) is subordinate or junior in right of payment to the Securities or a Subsidiary Guarantee; and 
 (4) the making of any Investment (other than a Permitted Investment). 

“Restricted Security” means a Security that constitutes a “restricted security” within the meaning of Rule
144(a)(3) under the Securities Act; provided, however, that the Trustee shall be entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any Security constitutes a Restricted Security. 

“Restricted Subsidiary” of any Person means any Subsidiary of such Person which, at the time of determination, is not an
Unrestricted Subsidiary. 
 “Rule 144A” means Rule 144A under the Securities Act. 

“Sale and Leaseback Transaction” means any direct or indirect arrangement with any Person or to which any such Person is
a party, providing for the leasing to the Company or any of its Restricted Subsidiaries of any property, whether owned by the Company or any of its Restricted Subsidiaries on the Issue Date or later acquired, which has been or is to be sold or
transferred by the Company or such Restricted Subsidiary to such Person or to any other Person from whom funds have been or are to be advanced by such Person on the security of such Property other than (i) the obligations of the Company under
the IRB Financing and (ii) the obligations of MECW under the MECW Mortgage Financing. 
 “S&P” means
Standard & Poor’s Ratings Group. 
 “SEC” means the Securities and Exchange Commission.

 “Secured Parties” means each Securityholder, the Trustee and the Collateral Agent. 

“Securities” means the 12% Senior Secured Notes due 2015 issued by the Company pursuant to this Indenture. 

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

  
 -24-

 “Securities Agent” means any Registrar, Paying Agent or co-Registrar or
co-agent. 
 “Significant Subsidiary” with respect to any person means any subsidiary of such person that
constitutes a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X under the Securities Act, as such regulation is in effect on the Issue Date. 

“Stated Interest Rate” means a rate, per annum, equal to 12%. 

“Subsidiary” means, with respect to a reference Person, (i) a corporation a majority of whose Capital Stock with
voting power, under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such reference Person, by one or more subsidiaries of such reference Person or by such reference Person and one or more of its
subsidiaries or (ii) any other person (other than a corporation) in which such reference Person, one or more of its subsidiaries, or such reference Person and one or more of its subsidiaries, directly or indirectly, at the date of determination
thereof, own at least a majority ownership interest. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.
Code §§ 77aaa-77bbbb) as amended and in effect from time to time. 
 “Total Leverage Ratio” means,
with respect to any Person, at any date the ratio of (i) Indebtedness of such Person and its Restricted Subsidiaries as of the last day of the fiscal quarter for which internal financial statements are available immediately preceding the date
of calculation, determined on a consolidated basis in accordance with GAAP to (ii) Consolidated EBITDA of such Person for the four full fiscal quarters for which internal financial statements are available immediately preceding the date of
calculation. For purposes of calculating the Total Leverage Ratio for any period, the amount of Indebtedness of any Person represented by outstanding letters of credit shall be excluded from the amount of Debt except to the extent such letter of
credit has been drawn and not reimbursed by such Person. The Total Leverage Ratio shall be calculated in a manner consistent with the pro forma provisions (to the extent applicable) of the definition of “Fixed Charge Coverage Ratio.”

 “Treasury Rate” means, as of any Redemption Date on or before March 15, 2013, the yield to maturity, as
of such Redemption Date, of U.S. Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days before such
redemption date (or, if such statistical release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from, and including, such Redemption Date to, but excluding, March 15, 2013;
provided, however, that if such period is not equal to the constant maturity of the U.S. Treasury security for which a weekly average yield is given, then the Treasury Rate shall be obtained by linear interpolation (calculated to
one-twelfth of a year) from the weekly average yields of U.S. Treasury securities for which such yields are given, except that if 

  
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such period is less than one year, then the weekly average yield on actually traded U.S. Treasury securities adjusted to a constant maturity of one year shall be used. 

“Trustee” means the party named as such in this Indenture until a successor replaces it in accordance with the
provisions hereof and thereafter means the successor. 
 “UCC” means the Uniform Commercial Code as in effect
from time to time in the State of New York; provided, however, that, at any time, if by reason of mandatory provisions of law, any or all of the perfection or priority of the Collateral Agent’s security interest in any item or portion of the
Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than that of the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect, at such time, in such other jurisdiction for
purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions. 
 “Unrestricted Subsidiary” of any Person means (1) any Subsidiary of such Person that at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by
the board of directors of such Person in the manner provided below, (2) any Subsidiary of an Unrestricted Subsidiary, and (3) Ethex Corporation. The Board of Directors may designate any Subsidiary (including any Restricted Subsidiary or
newly acquired or newly formed Subsidiary) of the Company to be an Unrestricted Subsidiary, unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property of, the Company or any other Subsidiary of the Company that is
not a Subsidiary of the Subsidiary to be so designated; provided, however, that the Company shall not be permitted to make any such designation unless (i) the Company provides the Trustee with a copy of the Board Resolution giving
effect to such designation and an Officers’ Certificate certifying that such designation complied with this sentence and with Section 4.11; (ii) none of the Subsidiaries to be so designated or any of their respective Subsidiaries
has, at the time of designation, and none will thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender of such Indebtedness has recourse to
any of the assets of the Company or any of its Restricted Subsidiaries; (iii) immediately after giving effect to such designation, the Company is able to incur at least one dollar of additional Indebtedness (other than Permitted Indebtedness)
in compliance with the proviso to Section 4.13(A); and (iv) immediately before and immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing (including as a result of the
Company’s deemed Investment in such Unrestricted Subsidiary in accordance with the definition of “Investment”). 

“U.S. Government Obligations” means non-callable direct obligations of, and non-callable obligations guaranteed by, the
United States for the payment of which the full faith and credit of the United States is pledged. 
 “U.S. Legal
Tender” means such coin or currency of the United States which, as at the time of payment, shall be immediately available legal tender for the payment of public and private debts. 

  
 -26-

 “Weighted Average Life to Maturity” means, with respect to any Indebtedness
at any date, a number of years equal to a fraction (i) whose numerator is the sum, for each then-remaining installment, sinking fund, serial maturity or other required payment of principal (including, without limitation, payment at final
maturity) in respect of such Indebtedness, of the product of (x) the amount of such installment or payment and (y) the number of years (calculated to the nearest one-twelfth) between such date and the due date of such installment or
payment; and (ii) whose denominator is the aggregate principal amount of such Indebtedness outstanding as of such date. 

“Voting Stock” of any Person means the total voting power of all classes of the Capital Stock of such Person entitled to
vote generally in the election of directors of such Person. 
 1.02 OTHER DEFINITIONS. 

 

					
	 Term
	  	Defined in Section	 
	 “Affiliate Transaction”
	  	 	4.12	  
	 “Asset Sale Notice”
	  	 	3.09	  
	 “Asset Sale Repurchase Date”
	  	 	3.09	  
	 “Asset Sale Repurchase Price”
	  	 	3.09	  
	 “Asset Sale Repurchase Right”
	  	 	3.09	  
	 “Automatic Exchange”
	  	 	2.18	  
	 “Automatic Exchange Notice”
	  	 	2.18	  
	 “Bankruptcy Law”
	  	 	6.01	  
	 “Business Day”
	  	 	12.07	  
	 “Covenant Defeasance”
	  	 	10.01	  
	 “Custodian”
	  	 	6.01	  
	 “Event of Default”
	  	 	6.01	  
	 “Exchange Offer”
	  	 	4.22	  
	 “Exchange Offer Registration Statement”
	  	 	4.22	  
	 “Fundamental Change”
	  	 	3.08	  
	 “Fundamental Change Notice”
	  	 	3.08	  
	 “Fundamental Change Repurchase Date”
	  	 	3.08	  
	 “Fundamental Change Repurchase Price”
	  	 	3.08	  
	 “Fundamental Change Repurchase Right”
	  	 	3.08	  
	 “Global Security”
	  	 	2.01	  
	 “Legal Defeasance”
	  	 	10.01	  
	 “Legal Holiday”
	  	 	12.07	  
	 “Maximum Dollar Amount for Repurchase Upon Asset Sale”
	  	 	3.09	  
	 “Notice of Default”
	  	 	6.01	  
	 “Participants”
	  	 	2.15	  
	 “Paying Agent”
	  	 	2.03	  
	 “Physical Securities”
	  	 	2.01	  
	 “Premises”
	  	 	9.03	  
	 “Private Placement Legend”
	  	 	2.17	  

  
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	 “Redemption”
	  	 	3.01	  
	 “Reference Date”
	  	 	4.11	  
	 “Registrar”
	  	 	2.03	  
	 “Registration Default”
	  	 	4.22	  
	 “Repurchase Upon Asset Sale”
	  	 	3.01	  
	 “Repurchase Upon Fundamental Change”
	  	 	3.01	  
	 “Required Offer Amount”
	  	 	4.15	  
	 “Resale Restriction Termination Date”
	  	 	2.17	  
	 “Restricted Global Security”
	  	 	2.18	  
	 “Special Interest”
	  	 	4.22	  
	 “Subsidiary Guarantee”
	  	 	8.01	  
	 “Trust Funds”
	  	 	10.01	  
	 “Unrestricted Global Security”
	  	 	2.18	  

 1.03 INCORPORATION
BY REFERENCE OF TRUST INDENTURE ACT. 
 Only at all times after the effectiveness of the Exchange Offer Registration Statement, will this Indenture be subject to the mandatory provisions of the TIA, which are incorporated by reference in and
made a part of this Indenture. At all times, whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 

The following TIA terms used in this Indenture have the following meanings: 

“indenture securities” means the Securities; 
 “indenture security holder” means a Securityholder or a Holder; 

“indenture to be qualified” means this Indenture; 

“indenture trustee” or “institutional trustee” means the Trustee; and 

“obligor” on the indenture securities means the Company and each Guarantor, or any successor thereto. 

All other terms used in this Indenture that are defined by the TIA, defined by the TIA by reference to another statute or defined by SEC
rule under the TIA and not otherwise defined herein have the meanings so assigned to them. 
 1.04 RULES OF
CONSTRUCTION. 
 Unless the context otherwise requires: 

(i) a term has the meaning assigned to it; 

(ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 

(iii) “including” means “including without limitation”; 

(iv) words in the singular include the plural and in the plural include the singular; 

  
 -28-

 (v) “herein,” “hereof” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or other subdivision of this Indenture; 
 (vi) references to currency shall mean the lawful currency of the United States of America, unless the context requires otherwise; and 

(vii) the phrase “in writing” as used herein shall be deemed to include .pdf attachments and other electronic
means of transmission, unless the context requires otherwise. 
 II. THE SECURITIES 

2.01 FORM AND DATING. 
 The Securities and the Trustee’s certificate of authentication shall be substantially in the form set forth in Exhibit A, which is incorporated in and forms a part of this Indenture. The
Securities may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date of its authentication. 
 Securities offered and sold in reliance on Regulation D shall be issued initially in the form of Global Securities, substantially in the form set forth in Exhibit A (the “Global
Security”), deposited with the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter provided and bearing the legends set forth in Exhibits B-1, B-2 and B-3. The
aggregate principal amount of the Global Security may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary, as hereinafter provided; provided, that, except as permitted
by Section 2.07, in no event shall the aggregate principal amount of the Global Security or Securities exceed $225,000,000. 
 Securities issued in exchange for interests in a Global Security pursuant to Section 2.15 may be issued in the form of permanent certificated Securities in registered form in substantially the form
set forth in Exhibit A (the “Physical Securities”) and, if applicable, bearing any legends required by Section 2.17. 
 2.02 EXECUTION AND AUTHENTICATION. 
 One duly authorized Officer shall sign the Securities for the Company by manual or facsimile signature. 
 A Security’s validity shall not be affected by the failure of an Officer whose signature is on such Security to hold, at the time the Security is authenticated, the same office at the Company.

  
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 A Security shall not be valid until authenticated by the manual signature of the Trustee.
The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. 
 Upon a Company
Order, the Trustee shall authenticate Securities for original issue in the aggregate principal amount of $225,000,000 and such additional principal amount, if any, as shall be determined pursuant to the next sentence of this Section 2.02. The
aggregate principal amount of Securities outstanding at any time may not exceed $225,000,000 except as provided in Section 2.07. 
 Upon a Company Order, the Trustee shall authenticate Securities not bearing the Private Placement Legend to be issued to the transferee when sold pursuant to an effective registration statement under the
Securities Act as set forth in Section 2.16(C). 
 The Trustee shall act as the initial authenticating agent. Thereafter,
the Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such authenticating agent. An authenticating agent has the same rights as a Securities Agent to deal with the Company and its Affiliates. 
 If a Company Order pursuant to this Section 2.02 has been, or simultaneously is, delivered, any instructions by the Company to the Trustee with respect to endorsement, delivery or redelivery of a
Security issued in global form shall be in writing but need not comply with Section 12.04 hereof and need not be accompanied by an Opinion of Counsel. 
 The Securities shall be issuable only in registered form without interest coupons and only in minimum denominations of $2,000 principal amount and any integral multiples of $1,000 in excess thereof.

 2.03 REGISTRAR, AND PAYING AGENT. 

The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange
(“Registrar”) and an office or agency where Securities may be presented for payment (“Paying Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may appoint
or change one or more co-Registrars and one or more additional paying agents without notice and may act in any such capacity on its own behalf. The term “Registrar” includes any co-Registrar; the term “Paying Agent”
includes any additional paying agent. 
 The Company shall enter into an appropriate agency agreement with any Securities Agent
not a party to this Indenture. The agreement shall implement the provisions of this Indenture that relate to such Securities Agent. The Company shall notify the Trustee of the name and address of any Securities Agent not a party to this Indenture.
If the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such. 

  
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 The Company initially appoints the Trustee as Paying Agent and Registrar. 

2.04 PAYING AGENT TO HOLD MONEY IN TRUST.

 Each Paying Agent shall hold in trust for the benefit of the Securityholders or the Trustee all moneys held by the Paying
Agent for the payment of the Securities, and shall notify the Trustee of any Default by the Company in making any such payment. While any such Default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The
Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent shall have no further liability for such money. If the Company acts as Paying Agent, it shall segregate and
hold as a separate trust fund all money held by it as Paying Agent. 
 2.05 SECURITYHOLDER LISTS.

 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names
and addresses of Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee on or before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such
date as the Trustee may reasonably require, of the names and addresses of Securityholders. 
  

	2.06	TRANSFER AND EXCHANGE. 

 Subject to Sections 2.15 and 2.16 hereof, where Securities are presented to the Registrar with a request to register their transfer or to exchange them for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the transfer or make the exchange if its requirements for such transaction are met. To permit registrations of transfer and exchanges, the Trustee shall authenticate
Securities at the Registrar’s request. The Company or the Trustee, as the case may be, shall not be required to register the transfer of or exchange any Security (i) for a period of 15 days before selecting, pursuant to Section
3.03, Securities to be redeemed or (ii) during a period beginning at the opening of business 15 days before the mailing of a notice of redemption of the Securities selected for Redemption under Section 3.04 and ending at the close of
business on the day of such mailing or (iii) that has been selected for Redemption or for which a Purchase Notice has been delivered, and not withdrawn, in accordance with this Indenture, except the unredeemed or unrepurchased portion of
Securities being redeemed or repurchased in part. 
 No service charge shall be made for any transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge that may be imposed in connection with any transfer or exchange of Securities, other than exchanges pursuant to Sections 2.10 or
11.05, or Article III, not involving any transfer. 

  
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 2.07 REPLACEMENT SECURITIES. 

If the Holder of a Security claims that the Security has been mutilated, lost, destroyed or wrongfully taken, the Company shall issue and
the Trustee shall authenticate a replacement Security upon surrender to the Trustee of the mutilated Security, or upon delivery to the Trustee of evidence of the loss, destruction or theft of the Security satisfactory to the Trustee and the Company.
In the case of a lost, destroyed or wrongfully taken Security, if required by the Trustee or the Company, an indemnity bond must be provided by the Holder that is reasonably satisfactory to the Trustee and the Company to protect the Company, the
Trustee or any Securities Agent from any loss which any of them may suffer if such Security is replaced. The Trustee may charge for its expenses in replacing a Security. 
 In case any such mutilated, lost, destroyed or wrongfully taken Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such
Security when due. 
 Every replacement Security is an additional obligation of the Company only as provided in Section
2.08. 
 2.08 OUTSTANDING SECURITIES. 

Securities outstanding at any time are all the Securities authenticated by the Trustee except for those cancelled by it (including,
without limitation, those cancelled by it pursuant to Section 2.20), those delivered to it for cancellation and those described in this Section 2.08 as not outstanding. Except to the extent provided in Section 2.09, a Security
does not cease to be outstanding because the Company or one of its Subsidiaries or Affiliates holds the Security. 
 If a
Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee receives proof satisfactory to it, or a court holds, that the replaced Security is held by a protected purchaser. 

If the Paying Agent (other than the Company) holds on a Redemption Date, Fundamental Change Repurchase Date, Asset Sale Repurchase Date
or Maturity Date, money sufficient to pay the aggregate Redemption Price, Fundamental Change Repurchase Price, Asset Sale Repurchase Price or principal amount, as the case may be, with respect to all Securities to be redeemed, purchased or paid upon
Redemption, Repurchase Upon Fundamental Change, Repurchase Upon Asset Sale or maturity, as the case may be, in each case plus, if applicable, accrued and unpaid interest, if any, payable as herein provided upon Redemption, Repurchase Upon
Fundamental Change, Repurchase Upon Asset Sale or maturity, then (unless there shall be a Default in the payment of such aggregate Redemption Price, Fundamental Change Repurchase Price, Asset Sale Repurchase Price or principal amount, or of such
accrued and unpaid interest), except as otherwise provided herein, on and after such date such Securities shall be deemed to be no longer outstanding, interest on such Securities shall cease to accrue, and such Securities shall be deemed paid
whether or not such Securities are delivered to the 

  
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Paying Agent. Thereafter, all rights of the Holders with respect to such Securities shall terminate with respect to such Securities, other than the right to receive the Redemption Price,
Fundamental Change Repurchase Price, Asset Sale Repurchase Price or principal amount, as the case may be, plus, if applicable, such accrued and unpaid interest, in accordance with this Indenture. 

2.09 SECURITIES HELD BY THE COMPANY OR AN
AFFILIATE. 
 In determining whether the Holders of the required aggregate principal amount of Securities have
concurred in any direction, waiver or consent, to the extent required by the TIA, Securities owned by the Company or any of its Subsidiaries or Affiliates shall be considered as though not outstanding, except that, for the purposes of determining
whether a Responsible Officer of the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee knows are so owned shall be so disregarded. Securities so owned which have been pledged in good
faith may be considered to be outstanding for purposes of this Section 2.09 if the pledgee establishes, to the satisfaction of the Trustee, the pledgee’s right so to concur with respect to such Securities and that the pledgee is not, and
is not acting at the direction or on behalf of, the Company, any other obligor on the Securities, an Affiliate of the Company or an affiliate of any such other obligor. In the event of a dispute as to whether the pledgee has established the
foregoing, the Trustee may rely on the advice of counsel or on an Officers’ Certificate. 
 2.10 TEMPORARY
SECURITIES. 
 Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate definitive Securities in exchange for temporary Securities. Until so exchanged, each temporary Security shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities, and such temporary Security shall be exchangeable for definitive Securities in accordance with the terms of this Indenture. 
 2.11 CANCELLATION. 
 The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any Securities surrendered to them for transfer, exchange or payment. The Trustee shall promptly cancel all Securities surrendered for transfer,
exchange, payment or cancellation in accordance with its customary procedures. The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation. 

2.12 DEFAULTED INTEREST. 
 If and to the extent the Company defaults in a payment of interest on the Securities, the Company shall pay in cash the defaulted interest in any lawful manner

  
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plus, to the extent not prohibited by applicable statute or case law, interest on such defaulted interest at the rate provided in the Securities. The Company may pay the defaulted interest (plus
interest on such defaulted interest) to the persons who are Securityholders on a subsequent special record date. The Company shall fix such record date and payment date. At least 15 calendar days before the record date, the Company shall mail to
Securityholders (with a copy to the Trustee) a notice that states the record date, payment date and amount of interest to be paid. 
 2.13
CUSIP NUMBERS. 
 The Company in issuing the Securities may use one or more “CUSIP” numbers, and,
if so, the Trustee shall use the CUSIP numbers in notices of redemption or exchange as a convenience to Holders; provided, however, that no representation is hereby deemed to be made by the Trustee as to the correctness or accuracy of
the CUSIP numbers printed on the notice or on the Securities; provided further, that reliance may be placed only on the other identification numbers printed on the Securities, and the effectiveness of any such notice shall not be affected by
any defect in, or omission of, such CUSIP numbers. The Company shall promptly notify the Trustee of any change in the CUSIP numbers. 
 2.14
DEPOSIT OF MONEYS. 
 Prior to 11:00 A.M., New York City time, on each
interest payment date, Maturity Date, Redemption Date, Asset Sale Repurchase Date or Fundamental Change Repurchase Date, the Company shall have deposited with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust in accordance with Section 2.04) money, in funds immediately available on such date, sufficient to make cash payments, if any, due on such interest payment date, Maturity Date, Redemption Date, Asset Sale Repurchase Date or
Fundamental Change Repurchase Date, as the case may be, in a timely manner which permits the Paying Agent to remit payment to the Holders on such interest payment date, Maturity Date, Redemption Date, Asset Sale Repurchase Date or Fundamental Change
Repurchase Date, as the case may be. The Paying Agent shall return to the Company, as soon as practicable, any excess money not required for that purpose, including money received from the Interest Reserve Account as provided in the Interest Reserve
Account Control Agreement . 
 2.15 BOOK-ENTRY PROVISIONS FOR
GLOBAL SECURITIES. 
 (A) The Global Securities initially shall (i) be registered in the
name of the Depositary or the nominee of the Depositary, (ii) be delivered to the Trustee as custodian for the Depositary and (iii) bear legends as set forth in Section 2.17. 

Members of, or participants in, the Depositary (“Participants”) shall have no rights under this Indenture with respect
to any Global Security held on their behalf by the Depositary, or the Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute
owner of the Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or 

  
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any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and
Participants, the operation of customary practices governing the exercise of the rights of a Holder of any Security. 
 (B)
Transfers of Global Securities shall be limited to transfers in whole, but not in part, to the Depositary, its successors or their respective nominees. In addition, Physical Securities shall be transferred to all beneficial owners, as identified by
the Depositary, in exchange for their beneficial interests in Global Securities only if (i) the Depositary notifies the Company that the Depositary is unwilling or unable to continue as depositary for any Global Security (or the Depositary
ceases to be a “clearing agency” registered under Section 17A of the Exchange Act) and a successor Depositary is not appointed by the Company within 90 days of such notice or cessation or (ii) an Event of Default has occurred and
is continuing and the Registrar has received a written request from the Depositary to issue Physical Securities. 
 (C) In
connection with the transfer of a Global Security in its entirety to beneficial owners pursuant to Section 2.15(B), such Global Security shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the
Trustee shall upon written instructions from the Company authenticate and deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial interest in such Global Security, an equal aggregate principal amount of Physical
Securities of authorized denominations. 
 (D) Any Physical Security constituting a Restricted Security delivered in exchange
for an interest in a Global Security pursuant to Section 2.15(B) shall, except as otherwise provided by Section 2.16, bear the Private Placement Legend. 
 (E) The Holder of any Global Security may grant proxies and otherwise authorize any Person, including Participants and Persons that may hold interests through Participants, to take any action which a
Holder is entitled to take under this Indenture or the Securities. 
 2.16 SPECIAL TRANSFER
PROVISIONS. 
 (A) Transfers Pursuant to Regulation S. The following provisions shall apply with
respect to the registration of any proposed transfer of a Security that is a Restricted Security pursuant to Regulation S: 
 (i) The Registrar shall register such proposed transfer if there is delivered to the Registrar and the Company a certificate substantially in the form of Exhibit C-1 (with such changes as may be
reasonably requested by the Company) and, if reasonably requested by the Registrar or the Company in connection with a transfer that is not to be executed in, on or through the facilities of a “designated offshore securities market” (as
defined in Regulation S), a certificate substantially in the form of Exhibit C-2 (with such changes as may be reasonably requested by the Company) 

  
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and any legal opinions and other certifications reasonably requested by the Company. 
 (ii) If such Security is not a Regulation S Global Security, then the Company shall issue, and the Trustee shall authenticate, a Regulation S Global Security having a principal amount equal to the
principal amount to be transferred or, alternatively, the Registrar shall accept the instructions from Participants of the Depositary to increase the principal amount of an existing Regulation S Global Security by the principal amount to be
transferred, and in each case, correspondingly decrease the principal amount of the Security from which the principal amount was transferred. 
 (B) Transfers to QIBS. The following provisions shall apply with respect to the registration of any proposed transfer of a Restricted Security (other than pursuant to Regulation S):

 (i) The Registrar shall register the transfer of a Restricted Security by a Holder to a QIB if such transfer
is being made by a proposed transferor who has provided the Registrar with (a) an appropriately completed certificate of transfer in the form attached to the Note and (b) a letter substantially in the form set forth in Exhibit D
hereto. 
 (ii) If such Security is not a QIB Global Security, then the Company shall issue, and the Trustee
shall authenticate, a QIB Global Security having a principal amount equal to the principal amount to be transferred or, alternatively, the Registrar shall accept the instructions from Participants of the Depositary to increase the principal amount
of an existing QIB Global Security by the principal amount to be transferred, and in each case, correspondingly decrease the principal amount of the Security from which the principal amount was transferred. 

(C) Restrictions on Transfer and Exchange of Global Securities. Notwithstanding any other provisions of this Indenture, but except
as provided in Section 2.15(B), a Global Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. 
 (D) Private Placement
Legend. Upon the transfer, exchange or replacement of Securities not bearing the Private Placement Legend, the Registrar shall deliver Securities that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of
Securities bearing the Private Placement Legend, the Registrar shall deliver only Securities that bear the Private Placement Legend unless there is delivered to the Company and the Trustee an Opinion of Counsel reasonably satisfactory to the Company
and the Trustee to the effect that neither such legend nor the related restrictions 

  
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on transfer are required in order to maintain compliance with the provisions of the Securities Act. 
 (E) General. By its acceptance of any Security bearing the Private Placement Legend, each Holder of such a Security acknowledges the restrictions on transfer of such Security set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Security only as provided in this Indenture. 
 The Registrar shall retain copies of all letters, notices and other written communications received pursuant to Section 2.15 or this Section 2.16. The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at the Company’s expense at any reasonable time upon the giving of reasonable written notice to the Registrar. 

2.17 RESTRICTIVE LEGENDS. 
 Each Global Security and Physical Security that constitutes a Restricted Security shall bear the legend (the “Private Placement Legend”) as set forth in Exhibit B-1 on the face
thereof (1) until after the first anniversary of the later of (i) the Issue Date and (ii) the last date on which the Company or any Affiliate was the owner of such Security (or any predecessor security) (or such shorter period of time
as permitted by Rule 144 under the Securities Act or any successor provision thereunder) (or such longer period of time as may be required under the Securities Act or applicable state securities laws, as set forth in an Opinion of Counsel, unless
otherwise agreed between the Company and the Holder thereof) (such date, the “Resale Restriction Termination Date”); or (2) as otherwise provided in or permitted by Section 2.16(D). 

Each Global Security shall bear the legend set forth in Exhibit B-2. 

Each Global Security and Physical Security shall bear the legend as set forth in Exhibit B-3. The Company shall provide notice to
the Trustee of any Resale Restriction Termination Date. 
 2.18 AUTOMATIC EXCHANGE FROM
RESTRICTED GLOBAL NOTE TO UNRESTRICTED GLOBAL NOTE. 
 On the Resale Restriction Termination Date, beneficial interests in a Global Security that bears the Private Placement Legend (a “Restricted Global Security”) shall be automatically
exchanged (the “Automatic Exchange”) into beneficial interests in a Global Security not bearing the Private Placement Legend (an “Unrestricted Global Security”) without any action required by or on behalf of the
Holder thereof. The Company shall at least 15 days but not more than 30 days before the Resale Restriction Termination Date, deliver a notice of Automatic Exchange (the “Automatic Exchange Notice”) to each Holder and to the Trustee,
which Automatic Exchange Notice shall identify the Securities subject to the Automatic Exchange and shall state: (1) the date of the Automatic Exchange; (2) the CUSIP number of the Restricted Global Security being exchanged; and
(3) the CUSIP number of the Unrestricted Global Security for which such Restricted Global Security is being exchanged. 

  
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 At the Company’s request, upon reasonable prior notice, the Trustee shall deliver, in
the Company’s name and at its expense, the Automatic Exchange Notice to each Holder; provided, however, that the form and content of such Automatic Exchange Notice shall be prepared by the Company. In connection with an Automatic
Exchange pursuant to this Section 2.18, the Trustee shall be entitled to receive from the Company, and rely conclusively upon, an Officers’ Certificate and an Opinion of Counsel to the Company, each in form and in substance reasonably
satisfactory to the Trustee, to the effect that such Automatic Exchange complies with the Securities Act. Upon an Automatic Exchange pursuant to this Section 2.18 and in accordance with Depositary procedures, the Registrar shall reflect on
its books and records the date of such Automatic Exchange and a decrease and increase, respectively, in the principal amount of the applicable Restricted Global Security(ies) and the Unrestricted Global Security(ies), respectively, equal to the
principal amount of beneficial interests transferred pursuant to such Automatic Exchange. If an Unrestricted Global Security is not then outstanding at the time of an Automatic Exchange, then the Company shall execute, and the Trustee shall
authenticate and deliver, an Unrestricted Global Security to the Depositary. Following any Automatic Exchange, each resulting Restricted Global Security whose principal amount is reduced to zero shall be cancelled. 

2.19 RANKING. 
 The indebtedness of the Company arising under or in connection with this Indenture and every outstanding Security issued under this Indenture from time to time constitutes and will constitute a senior
obligation of the Company, ranking equally with other existing and future senior indebtedness of the Company and ranking senior to any existing or future subordinated indebtedness of the Company. 

2.20 POST-EXCHANGE NOTES. 
 Upon receipt by the Trustee of an Officers’ Certificate stating that the Exchange Offer Registration Statement has become effective under the Securities Act and that a specified principal amount of
Pre-Exchange Securities have been duly tendered for exchange pursuant to the Exchange Offer, and containing any other information as the Trustee may reasonably request, the Trustee shall, upon receipt of certificates for, or book-entry transfer of,
such Pre-Exchange Securities, promptly cancel such Pre-Exchange Securities and authenticate and deliver such specified principal amount of Securities in the form of Post-Exchange Securities to or upon a Company Order. As a condition precedent to the
Trustee’s obligations under this Section 2.20, the Company shall deliver to the Trustee an executed Global Security or Global Securities representing the Post-Exchange Securities to be issued and any Opinion of Counsel reasonably
requested by the Trustee. 

  
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 III. REDEMPTION AND REPURCHASE 

3.01 RIGHT OF REDEMPTION AND REPURCHASE. 

(A) A redemption or repurchase of the Securities by the Company, as permitted by any provision of this Indenture, shall be made:

 (i) with respect to a repurchase at the Company’s option, in accordance with Section 3.01(D),
Section 3.01(E) or Section 3.01(F) (a “Redemption”); or 
 (ii) with respect to
any repurchase in accordance with Section 3.08 (a “Repurchase Upon Fundamental Change”); or 
 (iii) with respect to any repurchase in accordance with Section 3.09 (a “Repurchase Upon Asset Sale”), 
 in each case in accordance with the applicable provisions of this Article III. 
 (B) The Company will comply with all federal and state securities laws, and the applicable laws of any foreign jurisdiction, in connection with any offer to sell or solicitations of offers to buy
Securities pursuant to this Article III and if such securities laws conflict with the provisions of this Article III, the securities law provisions shall apply. 
 (C) The Company shall not have the right to redeem any Securities except pursuant to Section 3.01(D), Section 3.01(E) or Section 3.01(F). 

(D) The Company shall have the right, at the Company’s option, at any time, and from time to time, on a Redemption Date on or after
March 15, 2013, to redeem all or any part of the Securities at a price payable in cash equal to the Optional Redemption Price plus (subject to Section 3.01(G)) accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

 (E) The Company shall have the right, at the Company’s option, at any time, and from time to time, on a Redemption Date
before March 15, 2013, to redeem all or any part of the Securities at a price payable in cash equal to the Provisional Redemption Price plus (subject to Section 3.01(G)) accrued and unpaid interest, if any, to, but excluding, the
Redemption Date. 
 (F) The Company shall have the right, at the Company’s option, at any time, and from time to time, on a
Redemption Date before March 15, 2013, to redeem Securities at a price payable in cash equal to the Equity Offering Redemption Price plus (subject to Section 3.01(G)) accrued and unpaid interest, if any, to, but excluding, the Redemption
Date; provided, however, that no such Redemption shall be made pursuant to this Section 3.01(F) unless: 

  
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 (i) such Equity Offering Redemption Price is paid solely from the proceeds
of one or more Equity Offerings; 
 (ii) the aggregate principal amount of Securities to be redeemed pursuant to
such Redemption, when taken together with the aggregate principal amount of Securities theretofore redeemed pursuant to this Section 3.01(F), may in no event exceed 35% of the principal amount of the Securities initially issued pursuant
hereto on the Issue Date; 
 (iii) at least 65% of the Securities outstanding immediately prior to such
Redemption will remain outstanding immediately after giving effect to such Redemption; and 
 (iv) such
Redemption Date cannot occur on a date that is more than 90 days after the date of closing of the earliest Equity Offering the proceeds of which are to be used to pay such Equity Offering Redemption Price and accrued and unpaid interest. 

(G) Notwithstanding anything herein to the contrary, (i) in no event shall any Redemption Date be a Legal Holiday; and (ii) the
Redemption Price, plus accrued interest up to but excluding the Redemption Date shall be owing to the Holder upon surrender of such Security. 
 (H) Securities in denominations larger than $2,000 principal amount may be redeemed in part but only in integral multiples of $1,000 principal amount. 

3.02 NOTICES TO TRUSTEE. 
 If the Company elects to redeem Securities pursuant to Sections 3.01(D), (E) or (F), it shall notify the Trustee of the Redemption Date, the applicable provision of this Indenture
pursuant to which the Redemption is to be made and the aggregate principal amount of Securities to be redeemed, which notice shall be provided to the Trustee by the Company at least 15 days prior to the delivery, in accordance with Section
3.04, of the notice of Redemption (unless a shorter notice period shall be satisfactory to the Trustee). 
 3.03 SELECTION
OF SECURITIES TO BE REDEEMED. 
 If the Company
has elected to redeem less than all the Securities pursuant to Sections 3.01(D), (E) or (F), the Trustee shall, within five Business Days after receiving the notice specified in Section 3.02, select the Securities to be
redeemed by lot, on a pro rata basis or in accordance with any other method the Trustee considers fair and appropriate or is required by the Depositary for the Securities. The Trustee shall make such selection from Securities then outstanding
and not already to be redeemed by virtue of having been previously called for Redemption. Securities and portions of them the Trustee selects for Redemption shall be in a minimum amount of $2,000 or integral multiples of $1,000 in excess thereof;
provided that the principal amount of any remaining Security is at least $2,000. The Trustee shall promptly notify the Company in 

  
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writing of the Securities selected for Redemption and the principal amount thereof to be redeemed. 
 The Registrar need not register the transfer of or exchange any Securities that have been selected for Redemption, except the unredeemed portion of the Securities being redeemed in part. 

3.04 NOTICE OF REDEMPTION. 
 At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail, or cause to be mailed, by first-class mail a notice of Redemption to each Holder whose Securities are to be
redeemed, at the address of such Holder appearing in the security register. 
 The notice shall identify the Securities and the
aggregate principal amount thereof to be redeemed pursuant to the Redemption and shall state: 
 (i) the
Redemption Date; 
 (ii) the Redemption Price plus accrued and unpaid interest, if any, to, but excluding, the
Redemption Date; 
 (iii) the name and address of the Paying Agent; 

(iv) the Section of the Indenture pursuant to which the Securities are to be redeemed; 

(v) that Securities called for Redemption must be surrendered to the Paying Agent to collect the Redemption Price plus
accrued and unpaid interest, if any, payable as herein provided upon Redemption; 
 (vi) that, unless there shall
be a Default in the payment of the Redemption Price or accrued and unpaid interest, if any, payable as herein provided upon Redemption, interest on Securities called for Redemption ceases to accrue on and after the applicable Redemption Date and all
rights of the Holders with respect to such Securities shall terminate on and after such Redemption Date, other than the right to receive, upon surrender of such Securities and in accordance with this Indenture, the amounts due hereunder on such
Securities upon Redemption (and the rights of the Holder(s) of record of such Securities to receive, on the applicable interest payment date, accrued and unpaid interest on such Securities in accordance herewith in the event such Redemption Date is
after a record date for the payment of an installment of interest and on or before the related interest payment date); 
 (vii) the CUSIP number or numbers, as the case may be, of the Securities; and 

  
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 (viii) in the case of a redemption of Notes pursuant to
Section 3.01(F), whether the redemption is subject to any conditions precedent (it being understood that only redemptions under Section 3.01(F) may be subject to any conditions precedent), and if so, that in the event that
any or all conditions are not satisfied by the redemption date, the Company will have the discretion to delay the redemption date until such time as any or all the conditions are satisfied, so long as the redemption occurs within 60 days of such
notice, or to rescind the notice and cancel the redemption. 
 At the Company’s request, upon 45 days written notice prior
to the Redemption Date (or such shorter period that is acceptable to the Trustee), the Trustee shall mail the notice of Redemption in the Company’s name and at the Company’s expense; provided, however, that the form and
content of such notice shall be prepared by the Company. 
 3.05 EFFECT OF NOTICE
OF REDEMPTION. 
 Once notice of Redemption is mailed, subject to clause (viii) of
Section 3.04, Securities called for Redemption become due and payable on the Redemption Date at the consideration set forth herein, and, on and after such Redemption Date (unless there shall be a Default in the payment of such
consideration), except as otherwise provided herein, such Securities shall cease to bear interest, and all rights of the Holders with respect to such Securities shall terminate, other than the right to receive such consideration upon surrender of
such Securities to the Paying Agent (except that, if the Redemption Date is after a record date for the payment of an installment of interest and on or before the related interest payment date, then accrued and unpaid interest on such Securities to,
but excluding, such interest payment date will be paid, on such interest payment date, to the Holder(s) of record of such Securities at the close of business on such record date without any requirement to surrender such Securities to the Paying
Agent). 
 If any Security shall not be fully and duly paid in accordance herewith upon Redemption, the principal of, and
accrued and unpaid interest on, such Security shall, until paid, bear interest at the rate borne by such Security on the principal amount of such Security. 
 Notwithstanding anything herein to the contrary, there shall be no purchase of any Securities pursuant to a Redemption if the principal amount of the Securities has been accelerated pursuant to
Section 6.02 and such acceleration shall not have been rescinded on or before the applicable Redemption Date. The Paying Agent will promptly return to the respective Holders thereof any Securities tendered to it for Redemption during the
continuance of such an acceleration. 
 3.06 DEPOSIT OF REDEMPTION PRICE.

 Prior to 11:00 A.M., New York City time on the Redemption Date, the Company shall deposit with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds immediately available on the Redemption Date, sufficient to pay the consideration

  
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payable as herein provided upon Redemption on all Securities to be redeemed on that date. The Paying Agent shall return to the Company, as soon as practicable, any excess money not required for
that purpose. 
 3.07 SECURITIES REDEEMED IN PART. 

Any Security to be submitted for Redemption only in part shall be delivered pursuant to Section 3.05 (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or its attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and make available for delivery to the Holder of such Security without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder, of the same tenor and in aggregate
principal amount equal to the portion of such Security not submitted for Redemption. 
 3.08 REPURCHASE AT
OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE. 
 (A) In the event any Fundamental Change (as defined below) shall occur, each Holder of Securities shall have the right (the “Fundamental Change Repurchase Right”), at such Holder’s
option, to require the Company to repurchase all of such Holder’s Securities (or portions thereof that are integral multiples of $1,000 in principal amount, subject to a minimum of $2,000), on a date selected by the Company (the
“Fundamental Change Repurchase Date”), which Fundamental Change Repurchase Date shall be no later than 35 days, nor earlier than 20 days, after the date the Fundamental Change Notice (as defined below) is mailed in accordance with
Section 3.08(B), at a price, payable in cash, equal to 101% of the principal amount of the Securities (or portions thereof) to be so repurchased (the “Fundamental Change Repurchase Price”), plus accrued and unpaid
interest, if any, to, but excluding, the Fundamental Change Repurchase Date, upon: 
 (i) delivery to the Company
(if it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for such purpose in the Fundamental Change Notice, no later than the close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date, of a Purchase Notice, in the form set forth in the Securities or any other form of written notice substantially similar thereto, in each case, duly completed and signed, with appropriate signature guarantee, stating: 

(a) the certificate number(s) of the Securities which the Holder will deliver to be repurchased, if such Securities are in
certificated form; 
 (b) the principal amount of Securities to be repurchased, which must be in a minimum amount
of $2,000 or an integral multiple of $1,000 in excess thereof; and 

  
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 (c) that such principal amount of Securities are to be repurchased pursuant
to the terms and conditions specified in this Section 3.08; and 
 (ii) delivery to the Company (if
it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for such purpose in the Fundamental Change Notice, at any time after the delivery of such Purchase Notice, of such Securities (together with all necessary
endorsements) with respect to which the Fundamental Change Repurchase Right is being exercised. 
 If such Securities are held
in book-entry form through the Depositary, the Purchase Notice shall comply with applicable procedures of the Depositary. 

Notwithstanding anything herein to the contrary, any Holder that has delivered the Purchase Notice contemplated by this
Section 3.08(A) to the Company (if it is acting as its own Paying Agent) or to a Paying Agent designated by the Company for such purpose in the Fundamental Change Notice shall have the right to withdraw such Purchase Notice by delivery,
at any time prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, of a written notice of withdrawal to the Company (if acting as its own Paying Agent) or the Paying Agent, which notice shall
contain the information specified in Section 3.08(B)(xi). 
 The Paying Agent shall promptly notify the Company of
the receipt by it of any Purchase Notice or written notice of withdrawal thereof. 
 (B) No later than 15 Business Days after
the occurrence of a Fundamental Change, the Company shall mail, or cause to be mailed, to all Holders of record of the Securities at their addresses shown in the register of the Registrar, and to beneficial owners as required by applicable law, a
notice (the “Fundamental Change Notice”) of the occurrence of such Fundamental Change and the Fundamental Change Repurchase Right arising as a result thereof. The Company shall deliver a copy of the Fundamental Change Notice to the
Trustee and issue a press release through a national newswire. For the avoidance of doubt, a Fundamental Change Notice may be sent prior to the consummation of the related Fundamental Change and in such case may be made conditional on the
consummation of that Fundamental Change. 
 Each Fundamental Change Notice shall state: 

(i) the events causing the Fundamental Change; 

(ii) the date of such Fundamental Change; 

(iii) the Fundamental Change Repurchase Date; 

(iv) the date by which the Fundamental Change Repurchase Right must be exercised; 

  
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 (v) the Fundamental Change Repurchase Price plus accrued and unpaid
interest, if any, to, but excluding, the Fundamental Change Repurchase Date; 
 (vi) the name and address of the
Paying Agent; 
 (vii) a description of the procedures which a Holder must follow to exercise the Fundamental
Change Repurchase Right; 
 (viii) that, in order to exercise the Fundamental Change Repurchase Right, the
Securities must be surrendered for payment of the Fundamental Change Repurchase Price plus accrued and unpaid interest, if any, payable as herein provided upon Repurchase Upon Fundamental Change; 

(ix) that the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any, to, but excluding, the
Fundamental Change Repurchase Date, for any Security as to which a Purchase Notice has been given and not withdrawn will be paid as promptly as practicable, but in no event later than the later of such Fundamental Change Repurchase Date and the time
of delivery of the Security (together with all necessary endorsements) as described in clause (viii) above; provided, however, that if such Fundamental Change Repurchase Date is after a record date for the payment of an
installment of interest and on or before the related interest payment date, then the accrued and unpaid interest, if any, on such Security to, but excluding, such interest payment date will be paid on such interest payment date to the Holder of
record of such Security at the close of business on such record date (without any surrender of such Securities by such Holder), and the Holder surrendering such Security for repurchase will not be entitled to any such accrued and unpaid interest
unless such Holder was also the Holder of record of such Security at the close of business on such record date; 

(x) that, except as otherwise provided herein, on and after such Fundamental Change Repurchase Date (unless there shall be
a Default in the payment of the consideration payable as herein provided upon Repurchase Upon Fundamental Change), interest on Securities subject to Repurchase Upon Fundamental Change will cease to accrue, and all rights of the Holders with respect
to such Securities shall terminate, other than the right to receive, in accordance herewith, the consideration payable as herein provided upon Repurchase Upon Fundamental Change; 

(xi) that a Holder will be entitled to withdraw its election in the Purchase Notice if the Company (if acting as its own
Paying Agent), or the Paying Agent receives, prior to the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date, or such longer period as may be required by law, a letter or telegram, telex or facsimile
transmission (receipt of which is confirmed and promptly followed by a letter) setting forth (I) the name of such Holder, (II) a statement that such Holder is 

  
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withdrawing its election to have Securities purchased by the Company on such Fundamental Change Repurchase Date pursuant to a Repurchase Upon Fundamental Change, (III) the certificate number(s)
of such Securities to be so withdrawn, if such Securities are in certificated form, (IV) the principal amount of the Securities of such Holder to be so withdrawn, which amount must be in a minimum amount of $2,000 or an integral multiple of $1,000
in excess thereof and (V) the principal amount, if any, of the Securities of such Holder that remain subject to the Purchase Notice delivered by such Holder in accordance with this Section 3.08, which amount must be in a minimum
amount of $2,000 or an integral multiple of $1,000 in excess thereof; 
 (xii) the CUSIP number or numbers, as
the case may be, of the Securities; and 
 (xiii) in the case of a Fundamental Change Notice sent prior to the
consummation of a Fundamental Change, that the Fundamental Change Repurchase Right is conditional on the consummation of that Fundamental Change. 
 At the Company’s request, upon reasonable prior notice, the Trustee shall mail such Fundamental Change Notice in the Company’s name and at the Company’s expense; provided, however,
that the form and content of such Fundamental Change Notice shall be prepared by the Company. 
 No failure of the Company to
give a Fundamental Change Notice shall limit any Holder’s right to exercise a Fundamental Change Repurchase Right. 
 (C)
Subject to the provisions of this Section 3.08, the Company shall pay, or cause to be paid, the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change Repurchase Date,
with respect to each Security as to which the Fundamental Change Repurchase Right shall have been exercised to the Holder thereof as promptly as practicable, but in no event later than the later of the Fundamental Change Repurchase Date and the time
such Security (together with all necessary endorsements) is surrendered or transferred, by book-entry, to the Paying Agent; provided, however, that if such Fundamental Change Repurchase Date is after a record date for the payment of an
installment of interest and on or before the related interest payment date, then the accrued and unpaid interest, if any, on such Security to, but excluding, such interest payment date will be paid on such interest payment date to the Holder of
record of such Security at the close of business on such record date, and the Holder surrendering such Security for repurchase will not be entitled to any such accrued and unpaid interest unless such Holder was also the Holder of record of such
Security at the close of business on such record date. 
 (D) Prior to 11:00 A.M., New York City time on a Fundamental Change
Repurchase Date, the Company shall deposit with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds immediately available on the Fundamental
Change Repurchase 

  
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Date, sufficient to pay the consideration payable as herein provided upon Repurchase Upon Fundamental Change for all of the Securities that are to be repurchased by the Company on such
Fundamental Change Repurchase Date pursuant to a Repurchase Upon Fundamental Change. The Paying Agent shall return to the Company, as soon as practicable, any excess money not required for that purpose. 

(E) Once the Fundamental Change Notice and the Purchase Notice have been duly given in accordance with this Section 3.08 (and
subject to Section 3.08(b)), the Securities to be repurchased pursuant to a Repurchase Upon Fundamental Change shall, on the Fundamental Change Repurchase Date, become due and payable in accordance herewith, and, on and after such date (unless
there shall be a Default in the payment of the consideration payable as herein provided upon Repurchase Upon Fundamental Change), except as otherwise herein provided, such Securities shall cease to bear interest, and all rights of the Holders with
respect to such Securities shall terminate, other than the right to receive, in accordance herewith, such consideration. 
 (F)
If any Security shall not be paid upon surrender thereof for Repurchase Upon Fundamental Change, the principal of, and accrued and unpaid interest on, such Security shall, until paid, bear interest, payable in cash, at the rate borne by such
Security on the principal amount of such Security. 
 (G) Any Security which is to be submitted for Repurchase Upon Fundamental
Change only in part shall be delivered pursuant to this Section 3.08 (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or its attorney duly authorized in writing), and the Company shall execute, and the Trustee, upon receipt of a Company Order, shall authenticate and make available for delivery to the Holder of such Security without
service charge, a new Security or Securities, of any authorized denomination as requested by such Holder, of the same tenor and in aggregate principal amount equal to the portion of such Security not duly submitted for Repurchase Upon Fundamental
Change. 
 (H) Notwithstanding anything herein to the contrary, there shall be no purchase of any Securities pursuant to this
Section 3.08 if the principal amount of the Securities has been accelerated pursuant to Section 6.02 and such acceleration shall not have been rescinded on or before the applicable Fundamental Change Repurchase Date. The
Paying Agent will promptly return to the respective Holders thereof any Securities tendered to it for Repurchase Upon Fundamental Change during the continuance of such an acceleration. 

(I) Notwithstanding anything herein to the contrary, if the option granted to Holders to require the repurchase of the Securities upon
the occurrence of a Fundamental Change is determined to constitute a tender offer, the Company shall comply with all applicable tender offer rules under the Exchange Act, including Rule 13e-4 and Regulation 14E thereunder, and with all other
applicable laws, and will file a Schedule TO or any other schedules required under the Exchange Act or any other applicable laws. 

  
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 (J) As used herein and in the Securities, a “Fundamental Change” shall be
deemed to have occurred at such time as: 
 (i) any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the “beneficial owner” (as such term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50% of
the total outstanding voting power of all classes of the Company’s Capital Stock entitled to vote generally in the election of directors; or 
 (ii) there occurs a sale, transfer, lease, conveyance or other disposition of all or substantially all of the property or assets of the Company, or of the Company and its Subsidiaries on a consolidated
basis, to any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, including any group acting for the purpose of acquiring, holding, voting or
disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange Act; or 
 (iii) the Company
consolidates with, or merges with or into, another person or any person consolidates with, or merges with or into, the Company, unless the persons that “beneficially owned” (as such term is used in Rule 13d-3 under the Exchange Act),
directly or indirectly, the shares of the Company’s Voting Stock immediately prior to such consolidation or merger, “beneficially own,” directly or indirectly, immediately after such consolidation or merger, shares of the surviving or
continuing corporation’s Voting Stock representing at least a majority of the total outstanding voting power of all outstanding classes of the Voting Stock of the surviving or continuing corporation in substantially the same proportion as such
ownership immediately prior to such consolidation or merger; or 
 (iv) the following persons cease for any
reason to constitute a majority of the Company’s Board of Directors: 
 (a) individuals who on the Issue
Date constituted the Company’s Board of Directors; and 
 (b) any new directors whose election to the
Company’s Board of Directors or whose nomination for election by the Company’s stockholders was approved by at least a majority of the directors of the Company then still in office (or by at least a majority of the members of a duly
authorized committee of the directors of the Company then still in office) either who were directors of the Company on the Issue Date or whose election or nomination for election was previously so approved; or 

(v) the Company is liquidated or dissolved or there is adopted any plan or proposal for the liquidation or dissolution of
the Company; or 

  
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 (vi) there occurs a “Change in Control” under (and as defined in)
the indenture governing the Company’s 2.5% Contingent Convertible Subordinated Notes Due 2033. 
 3.09 REPURCHASE
AT OPTION OF HOLDER UPON AN ASSET SALE. 
 (A) In the event any Asset Sale shall occur and the Company elects, or is required, pursuant to Section 4.15, to make an offer to repurchase Securities pursuant to this
Section 3.09, each Holder of Securities shall, subject to Section 3.09(B), have the right (the “Asset Sale Repurchase Right”), at such Holder’s option, to require the Company to repurchase all of such
Holder’s Securities (or portions thereof that are integral multiples of $1,000 in principal amount, subject to a minimum of $2,000), on a date selected by the Company (the “Asset Sale Repurchase Date”), which Asset Sale
Repurchase Date shall be no later than 35 days, nor earlier than 20 days, after the date the Asset Sale Notice (as defined below) is mailed in accordance with Section 3.09(C), at a price, payable in cash, equal to 100% of the principal
amount of the Securities (or portions thereof) to be so repurchased (the “Asset Sale Repurchase Price”), plus accrued and unpaid interest, if any, to, but excluding, the Asset Sale Repurchase Date, upon: 

(i) delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for
such purpose in the Asset Sale Notice, no later than the close of business on the Business Day immediately preceding the Asset Sale Repurchase Date, of a Purchase Notice, in the form set forth in the Securities or any other form of written notice
substantially similar thereto, in each case, duly completed and signed, with appropriate signature guarantee, stating: 
 (a) the certificate number(s) of the Securities which the Holder will deliver to be repurchased, if such Securities are in certificated form; 

(b) the principal amount of Securities to be repurchased, which must be in a minimum amount of $2,000 or an integral
multiple of $1,000 in excess thereof; and 
 (c) that such principal amount of Securities are to be repurchased
pursuant to the terms and conditions specified in this Section 3.09; and 
 (ii) delivery to the
Company (if it is acting as its own Paying Agent), or to a Paying Agent designated by the Company for such purpose in the Asset Sale Notice, at any time after the delivery of such Purchase Notice, of such Securities (together with all necessary
endorsements) with respect to which the Asset Sale Repurchase Right is being exercised. 
 If such Securities are held in
book-entry form through the Depositary, the Purchase Notice shall comply with applicable procedures of the Depositary. 

  
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 Notwithstanding anything herein to the contrary, any Holder that has delivered the Purchase
Notice contemplated by this Section 3.09(A) to the Company (if it is acting as its own Paying Agent) or to a Paying Agent designated by the Company for such purpose in the Asset Sale Notice shall have the right to withdraw such Purchase
Notice by delivery, at any time prior to the close of business on the Business Day immediately preceding the Asset Sale Repurchase Date, of a written notice of withdrawal to the Company (if acting as its own Paying Agent) or the Paying Agent, which
notice shall contain the information specified in Section 3.09(C)(xiii). 
 The Paying Agent shall promptly notify
the Company of the receipt by it of any Purchase Notice or written notice of withdrawal thereof. 
 (B) Notwithstanding anything
to the contrary herein, in connection with a Repurchase Upon Asset Sale, (1) payment by the Company of the principal amount of Securities to be repurchased pursuant to this Section 3.09 shall be made by Net Cash Proceeds from one or
more Asset Sales in accordance with Section 4.15; (2) in no event shall the Company be required to repurchase Securities pursuant to this Section 3.09 to the extent that the aggregate principal amount of the Securities
to be repurchased exceeds an amount (the “Maximum Dollar Amount for Repurchase Upon Asset Sale”) equal to the greater of (i) the Required Offer Amount and (ii) any greater amount (which shall not exceed the total Net Cash
Proceeds of all Asset Sales theretofore effected) elected by Company; and (2) if the aggregate principal amount of all Securities properly tendered for repurchase pursuant to such Repurchase Upon Asset Sale exceeds such Maximum Dollar Amount
for Repurchase Upon Asset Sale, then the Trustee will select, from such Securities so tendered, the Securities to be repurchased pursuant to such Repurchase Upon Asset Sale on a pro rata basis, by lot or any other method the Trustee considers fair
or appropriate or is required by the Depositary of the Securities, such that the aggregate principal amount of such selected Securities will be as close as possible to, but not exceeding, such Maximum Dollar Amount for Repurchase Upon Asset Sale;
provided, however, that such selection must be made in a minimum amount of $2,000 or an integral multiple of $1,000 in excess thereof. 
 (C) At any time after the Asset Sale, but no later than 10 Business Days after the Company becomes obligated, pursuant to Section 4.15, to make an offer to repurchase Securities pursuant to
this Section 3.09, the Company shall mail, or cause to be mailed, to all Holders of record of the Securities at their addresses shown in the register of the Registrar, and to beneficial owners as required by applicable law, a notice (the
“Asset Sale Notice”) of the occurrence of the applicable Asset Sale and the Asset Sale Repurchase Right arising as a result thereof. The Company shall contemporaneously deliver a copy of the Asset Sale Notice to the Trustee and
issue a press release through a national newswire. 
 Each Asset Sale Notice for a Repurchase Upon Asset Sale shall state:

 (i) the events causing the Asset Sale; 

(ii) the date of such Asset Sale; 

  
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 (iii) the Asset Sale Repurchase Date; 

(iv) the date by which the Asset Sale Repurchase Right must be exercised; 

(v) the Asset Sale Repurchase Price plus accrued and unpaid interest, if any, to, but excluding, the Asset Sale Repurchase
Date; 
 (vi) the applicable Maximum Dollar Amount for Repurchase Upon Asset Sale; 

(vii) that if the aggregate principal amount of all Securities properly tendered for repurchase pursuant to such
Repurchase Upon Asset sale exceeds such Maximum Dollar Amount for Repurchase Upon Asset Sale, then the Trustee will select, from such Securities so tendered, the Securities to be repurchased pursuant to such Repurchase Upon Asset Sale on a pro rata
basis, by lot or any other method the Trustee considers fair or appropriate or is required by the Depositary of the Securities, such that the aggregate principal amount of such selected Securities will be as close as possible to, but not exceeding,
such Maximum Dollar Amount for Repurchase Upon Asset Sale; provided, however, that such selection must be made in a minimum amount of $2,000 or an integral multiple of $1,000 in excess thereof; 

(viii) the name and address of the Paying Agent; 

(ix) a description of the procedures which a Holder must follow to exercise the Asset Sale Repurchase Right; 

(x) that, in order to exercise the Asset Sale Repurchase Right, the Securities must be surrendered for payment of the
Asset Sale Repurchase Price plus accrued and unpaid interest, if any, payable as herein provided upon Repurchase Upon Asset Sale; 
 (xi) that, subject to Section 3.09(B), the Asset Sale Repurchase Price, plus accrued and unpaid interest, if any, to, but excluding, the Asset Sale Repurchase Date, for any Security as to
which a Purchase Notice has been given and not withdrawn will be paid as promptly as practicable, but in no event later than the later of such Asset Sale Repurchase Date and the time of delivery of the Security (together with all necessary
endorsements) as described in Section 3.09(C)(x) above; 
 (xii) that, except as otherwise provided
herein, on and after such Asset Sale Repurchase Date (unless there shall be a Default in the payment of the consideration payable as herein provided upon Repurchase Upon Asset Sale), interest on Securities subject to Repurchase Upon Asset Sale will
cease to accrue, and all rights of the Holders with respect to such Securities shall terminate, other than the right to receive, in accordance herewith, the consideration payable as herein provided upon Repurchase Upon Asset Sale; 

  
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 (xiii) that a Holder will be entitled to withdraw its election in the
Purchase Notice if the Company (if acting as its own Paying Agent), or the Paying Agent receives, prior to the close of business on the Business Day immediately preceding the Asset Sale Repurchase Date, or such longer period as may be required by
law, a letter or telegram, telex or facsimile transmission (receipt of which is confirmed and promptly followed by a letter) setting forth (I) the name of such Holder, (II) a statement that such Holder is withdrawing its election to have
Securities purchased by the Company on such Asset Sale Repurchase Date pursuant to a Repurchase Upon Asset Sale, (III) the certificate number(s) of such Securities to be so withdrawn, if such Securities are in certificated form, (IV) the principal
amount of the Securities of such Holder to be so withdrawn, which amount must be in a minimum amount of $2,000 or an integral multiple of $1,000 in excess thereof and (V) the principal amount, if any, of the Securities of such Holder that
remain subject to the Purchase Notice delivered by such Holder in accordance with this Section 3.09, which amount must be in a minimum amount of $2,000 or an integral multiple of $1,000 in excess thereof; and 

(xiv) the CUSIP number or numbers, as the case may be, of the Securities. 

At the Company’s request, upon reasonable prior notice, the Trustee shall mail such Asset Sale Notice in the Company’s name and
at the Company’s expense; provided, however, that the form and content of such Asset Sale Notice shall be prepared by the Company. 
 No failure of the Company to give an Asset Sale Notice shall limit any Holder’s right to exercise an Asset Sale Repurchase Right. 

(D) Subject to the provisions of this Section 3.09 (including, without limitation, Section 3.09(B)), the Company
shall pay, or cause to be paid, the Asset Sale Repurchase Price, plus accrued and unpaid interest, if any, to, but excluding, the Asset Sale Repurchase Date, with respect to each Security as to which the Asset Sale Repurchase Right shall have been
exercised to the Holder thereof as promptly as practicable, but in no event later than the later of the Asset Sale Repurchase Date and the time such Security (together with all necessary endorsements) is surrendered or transferred, by book-entry, to
the Paying Agent; provided, however, that if such Asset Sale Repurchase Date is after a record date for the payment of an installment of interest and on or before the related interest payment date, then the accrued and unpaid interest,
if any, on such Security to, but excluding, such interest payment date will be paid on such interest payment date to the Holder of record of such Security at the close of business on such record date, and the Holder surrendering such Security for
repurchase will not be entitled to any such accrued and unpaid interest unless such Holder was also the Holder of record of such Security at the close of business on such record date. 

(E) Subject to Section 3.09(B), prior to 11:00 A.M., New York City time on an Asset Sale Repurchase Date, the Company shall
deposit with a Paying Agent (or, if the 

  
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Company is acting as its own Paying Agent, segregate and hold in trust in accordance with Section 2.04) money, in funds immediately available on the Asset Sale Repurchase Date,
sufficient to pay the consideration payable as herein provided upon Repurchase Upon Asset Sale for all of the Securities that are to be repurchased by the Company on such Asset Sale Repurchase Date pursuant to a Repurchase Upon Asset Sale. The
Paying Agent shall return to the Company, as soon as practicable, any excess money not required for that purpose. 
 (F) Once
the Asset Sale Notice and the Purchase Notice have been duly given in accordance with this Section 3.09, the Securities to be repurchased pursuant to a Repurchase Upon Asset Sale shall, on the Asset Sale Repurchase Date, become due and
payable in accordance herewith, and, on and after such date (unless there shall be a Default in the payment of the consideration payable as herein provided upon Repurchase Upon Asset Sale), except as otherwise herein provided, such Securities shall
cease to bear interest, and all rights of the Holders with respect to such Securities shall terminate, other than the right to receive, in accordance herewith, such consideration. 

(G) If any Security shall not be paid upon surrender thereof for Repurchase Upon Asset Sale, the principal of, and accrued and unpaid
interest on, such Security shall, until paid, bear interest, payable in cash, at the rate borne by such Security on the principal amount of such Security. 
 (H) Any Security which is to be submitted for Repurchase Upon Asset Sale only in part shall be delivered pursuant to this Section 3.09 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or its attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Security without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder, of the same tenor and in aggregate principal amount equal
to the portion of such Security not duly submitted for Repurchase Upon Asset Sale. 
 (I) Notwithstanding anything herein to the
contrary, there shall be no purchase of any Securities pursuant to this Section 3.09 if the principal amount of the Securities has been accelerated pursuant to Section 6.02 and such acceleration shall not have been rescinded
on or before the applicable Asset Sale Repurchase Date. The Paying Agent will promptly return to the respective Holders thereof any Securities tendered to it for Repurchase Upon Asset Sale during the continuance of such an acceleration. 

(J) Notwithstanding anything herein to the contrary, if the option granted to Holders to require the repurchase of the Securities upon
the occurrence of an Asset Sale is determined to constitute a tender offer, the Company shall comply with all applicable tender offer rules under the Exchange Act, including Rule 13e-4 and Regulation 14E thereunder, and with all other applicable
laws, and will file a Schedule TO or any other schedules required under the Exchange Act or any other applicable laws. 

  
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 IV. COVENANTS 
 4.01 PAYMENT OF SECURITIES. 

The Company shall pay all amounts due with respect to the Securities on the dates and in the manner provided in the Securities. All such
amounts shall be considered paid on the date due if the Paying Agent holds (or, if the Company is acting as Paying Agent, the Company has segregated and holds in trust in accordance with Section 2.04) on that date prior to 11:00 AM New
York City time, money sufficient to pay the amount then due with respect to the Securities (unless there shall be a Default in the payment of such amounts to the respective Holder(s)). 

The Company shall pay, in cash, interest on any overdue amount (including, to the extent permitted by applicable law, overdue interest)
at the rate borne by the Securities. 
  

	4.02	MAINTENANCE OF OFFICE OR AGENCY. 

The Company will maintain an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or
co-Registrar) where Securities may be surrendered for registration of transfer or exchange or payment. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations and surrenders may be made at the Corporate Trust Office of the Trustee. 

The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or
surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 

The Company hereby designates the Corporate Trust Office of the Trustee as an agency of the Company in accordance with
Section 2.03. 
  

	4.03	SEC REPORTS AND RULE 144A INFORMATION AND OTHER REPORTS.

 (A) SEC Reports and Rule 144A Information. 

(i) At any time any Securities bear the Private Placement Legend and when the Company is not subject to Sections 13 or
15(d) of the Exchange Act, the Company shall promptly provide to the Trustee and shall, upon request, provide to any Holder, beneficial owner or prospective purchaser of Securities, the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act to facilitate the resale of such Securities pursuant to Rule 144A. The Company shall take such further action as any 

  
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Holder or beneficial holder of such Securities may reasonably request to the extent required from time to time to enable such Holder or beneficial holder to sell its Securities in accordance with
Rule 144A, as such rule may be amended from time to time. 
 (ii) The Company shall deliver to the Trustee, no
later than 15 business days after the time such report is required to be filed with the SEC pursuant to the Exchange Act, a copy of each report the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act;
provided, however, that the Company shall not be required to deliver to the Trustee any material for which the Company has sought and received confidential treatment by the SEC; provided further, that each such report will be deemed to
be so delivered to the Trustee by filing such report with the SEC through the SEC’s EDGAR database. In the event the Company is at any time while any Securities are outstanding no longer subject to the reporting requirements of Section 13
or Section 15(d) of the Exchange Act, the Company shall continue to provide to the Trustee and, upon request, to each Holder, no later than 15 business days after the date the Company would have been required to file the same with the SEC, the
reports the Company would have been required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act if the Company were subject to the reporting requirements of such sections. Following qualification of this Indenture under
the TIA, the Company shall also comply with the other provisions of TIA § 314(a). Delivery of such reports, information and documents to the Trustee is for informational purposes only, and the Trustee’s receipt thereof 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). 
 (iii) Notwithstanding anything herein to the contrary, the Company will not be
deemed to have failed to comply with any of its obligations under this Section 4.03 for the purposes of clause (iv) of Section 6.01 until 45 days after the date any report or information is due under this
Section 4.03. 
 (B) Other Reports. Following qualification of this Indenture under the TIA, the
Company shall furnish to the Trustee and the Collateral Agent on a semi-annual basis, an Officer’s Certificate stating that (if applicable) all dispositions of Collateral made during the preceding six-month period were made in the ordinary
course of business. 
  

	4.04	COMPLIANCE CERTIFICATE. 

 The Company shall deliver to the Trustee beginning in 2012, within 90 calendar days after the end of each fiscal year of the Company (which is currently set to end each March 31st) or, if earlier, by the date the Company is, or would be, required
to file with the SEC the Company’s annual report (whether on Form 10-K under the Exchange Act or another appropriate form) for such fiscal year, an Officers’ Certificate stating whether or

  
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not the signatories to such Officers’ Certificate know of any Default or Event of Default by the Company in performing any of its obligations under this Indenture or the Securities. If such
signatories do know of any such Default or Event of Default on such date, then such Officers’ Certificate shall describe the Default or Event of Default and its status. 
 4.05 STAY, EXTENSION AND USURY LAWS. 
 Each of the Company and the Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and each of the Company and the Guarantors (in each case, to the extent that
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 has been enacted. 
 4.06 CORPORATE
EXISTENCE. 
 Subject to Article V, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence and the corporate existence of each of its Significant Subsidiaries, in accordance with the respective organizational documents of the Company and of each of its Significant
Subsidiaries, and the rights (charter and statutory), licenses and franchises of the Company and its Significant Subsidiaries; provided, however, that the Company shall not be required to preserve any such right, license or franchise,
or the corporate existence of any of its Subsidiaries, if in the good faith judgment of the Company (i) such preservation or existence is not material to the conduct of business of the Company and (ii) the loss of such right, license or
franchise or the dissolution of such Subsidiary does not have a material adverse impact on the ability of Holders to be repaid. 
  

	4.07	NOTICE OF DEFAULT. 

 Upon becoming aware of any Default or Event of Default, the Company shall give written notice of such Default or Event of Default within 15 days thereof, and any remedial action proposed to be taken, to
the Trustee unless such Default or Event of Default has been cured within the 15-day period. 
  

	4.08	PAYMENT OF TAXES. 

 The Company shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all material taxes, assessments and governmental charges (including, without limitation,
withholding taxes and any penalties, interest and additions to taxes) levied or imposed upon the Company or any of its Restricted Subsidiaries or the properties of the Company or any of its Restricted Subsidiaries; provided, however,
that the Company shall not be required, pursuant to this Section 4.08, to pay or discharge or 

  
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cause to be paid or discharged any such tax, assessment or charge whose amount, applicability or validity is, or will be, contested in good faith by appropriate proceedings properly instituted
and diligently conducted and for which adequate reserves, to the extent required under GAAP, have been taken. 
 4.09
MAINTENANCE OF PROPERTIES AND INSURANCE. 
 (A)
The Company shall, and shall cause each of its Restricted Subsidiaries to, maintain its properties in good working order and condition in all material respects (subject to ordinary wear and tear) and make all necessary repairs, renewals,
replacements, additions, betterments and improvements thereto and actively conduct and carry on its business; provided, however, that nothing in this Section 4.09 shall prevent the Company or any of its Restricted
Subsidiaries from discontinuing the operation and maintenance of any of its properties if such discontinuance is, in the good faith judgment of the Company, desirable in the conduct of the business of Company and its Subsidiaries, taken as a whole.

 (B) The Company shall maintain insurance (including, without limitation, appropriate self-insurance) against loss or damage
of the kinds that, in the good faith judgment of the Company, are adequate and appropriate for the conduct of the business of the Company and its Restricted Subsidiaries in a prudent manner, with reputable insurers or with the government of the
United States or an agency or instrumentality thereof, in such amounts, with such deductibles, and by such methods, as shall be prudent, in the good faith judgment of the Company, in each case unless the failure to maintain such insurance would not,
in the good faith judgment of the Company, have a material adverse effect on the financial condition or results of operations of the Company and its Subsidiaries, taken as a whole. Each such policy of insurance shall (i) name Collateral Agent,
on behalf of the Secured Parties, as an additional insured thereunder as its interests may appear, (ii) in the case of each casualty insurance policy, contain a loss payable clause or endorsement, satisfactory in form to the Collateral Agent,
that names Collateral Agent, on behalf of the Secured Parties, as the loss payee thereunder and provide for at least thirty days’ prior written notice to Collateral Agent of any modification or cancellation of such policy. 

4.10 [RESERVED]. 
  

	4.11	LIMITATION ON RESTRICTED PAYMENTS. 

(A) The Company shall not, and shall not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, make any
Restricted Payment if, at the time of such Restricted Payment or immediately after giving effect thereto: 
 (i)
a Default or an Event of Default shall have occurred and be continuing; 
 (ii) the Company is not able to incur
at least one dollar of additional Indebtedness (other than Permitted Indebtedness) in compliance with the proviso to Section 4.13(A); 

  
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 (iii) such Restricted Payment is a payment described in clause (1),
(2) or (3) of the definition of “Restricted Payment”; 
 (iv) the aggregate amount of
Restricted Payments (including such proposed Restricted Payment) made after the Issue Date (the amount expended for such purposes, if other than in cash, being the Fair Market Value of the applicable property at the time of the making thereof) shall
exceed the sum of: 
 (a) 50% of the cumulative Consolidated Net Income (or, if cumulative Consolidated Net
Income is a loss, 100% of such loss, expressed as a negative number) of the Company earned during the period beginning on, and including, the first day of the first fiscal quarter of the Company after the Issue Date and ending on, and including, the
last day (such day, the “Reference Date”) of the Company’s most recent fiscal quarter ending before the date such Restricted Payment occurs for which financial statements are available (treating such period as a single
accounting period); 
 (b) 100% of the aggregate net cash proceeds received by the Company, and the Fair Market
Value (as determined in good faith by the Board of Directors) of other property and marketable securities received, from any Person (other than a Subsidiary of the Company) from the issuance and sale, on or after the Issue Date and on or before the
Reference Date, of Qualified Capital Stock of the Company (excluding any net proceeds from an Equity Offering, to the extent used to redeem Securities pursuant to Section 3.01(F)); 

(c) without duplication of any amounts included in Section 4.11(A)(iv)(b), 100% of the aggregate net cash
proceeds of any capital contribution received by the Company from holders of the Company’s Capital Stock on or after the Issue Date and on or before the Reference Date (excluding any net proceeds from an Equity Offering, to the extent used to
redeem Securities pursuant to Section 3.01(F)); 
 (d) 100% of the aggregate proceeds received from
the issuance of Indebtedness or shares of Disqualified Capital Stock of the Company that have been converted into or exchanged for Qualified Capital Stock of the Company on or after the Issue Date and on or before the Reference Date; 

(e) an amount equal to the sum of (I) the net reduction in the Investments (other than Permitted Investments) made by
the Company or any of its Restricted Subsidiaries in any Person resulting from repurchases, repayments or redemptions of such Investments by such Person, proceeds realized on the sale of such Investment and proceeds representing the return of
capital (excluding dividends and distributions otherwise included in Consolidated Net Income), in each case received by 

  
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the Company or any of its Restricted Subsidiaries, and (II) to the extent such Person is an Unrestricted Subsidiary, the portion (proportionate to the Company’s equity interest in such
Unrestricted Subsidiary) of the Fair Market Value of such Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided, however, that the foregoing sum in this
Section 4.11(A)(iv)(e) shall not exceed, in the case of any such Person or Unrestricted Subsidiary, the amount of Investments (excluding Permitted Investments) previously made (and treated as a Restricted Payment) by the Company or any
of its Restricted Subsidiaries in such Person or Unrestricted Subsidiary. 
 (B) Notwithstanding anything to the contrary
herein, Section 4.11(A) shall not prohibit any of the following: 
 (i) the payment of any dividend
or other distribution or redemption within 60 days after the date of declaration of such dividend or call for redemption, if such payment would have been permitted on the date of declaration or call for redemption; 

(ii) the acquisition of any shares of Qualified Capital Stock of the Company, either (1) solely in exchange for other
shares of Qualified Capital Stock of the Company or (2) through the application of net proceeds of a sale for cash (other than to a Subsidiary of the Company) of shares of Qualified Capital Stock of the Company or a cash capital contribution
received by the Company from holders of the Company’s Capital Stock within 90 days after such exchange, sale or receipt of such cash capital contribution; 
 (iii) the acquisition of any Indebtedness of the Company or the Guarantors that is either (i) senior unsecured Indebtedness or Indebtedness secured by a Lien on the Collateral that is junior to the
Lien securing the Obligations or (ii) subordinate or junior in right of payment to the Securities or a Subsidiary Guarantee (in each case, a “Subordinated Obligation”), either (1) solely in exchange for shares of Qualified
Capital Stock of the Company; or (2) through the application of (a) net proceeds of a sale for cash (other than to a Subsidiary of the Company) of shares of Qualified Capital Stock of the Company or a cash capital contribution received by
the Company from holders of the Company’s Capital Stock within 60 days after such sale or receipt of such cash capital contribution or (b) Refinancing Indebtedness; 

(iv) an Investment either (1) solely in exchange for shares of Qualified Capital Stock of the Company or
(2) through the application of the net proceeds of a sale for cash (other than to a Subsidiary of the Company) of shares of Qualified Capital Stock of the Company or a cash capital contribution received by the Company from holders of the
Company’s Capital Stock within 90 days after such sale or receipt of such cash capital contribution; 

  
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 (v) if no Default or Event of Default has occurred and is continuing or
would exist after giving effect thereto, the repurchase or other acquisition of shares of Capital Stock of the Company from employees, former employees, directors or former directors of the Company or of its Restricted Subsidiaries (or permitted
transferees of such employees, former employees, directors or former directors), pursuant to the terms of the agreements (including, without limitation, employment agreements) or plans (or amendments thereto) or other arrangements approved by the
Board of Directors under which such shares were granted, issued or sold or such other repurchases or acquisitions as may be approved by the Board of Directors; provided, however, that the aggregate amount of such repurchases and other
acquisitions in any calendar year shall not exceed $1,000,000 (with any unused amounts in any calendar year being permitted to be carried over into succeeding calendar years); provided further, that such amount in any calendar year may be
increased by an amount not to exceed the net cash proceeds of key-person life insurance policies received by the Company after the Issue Date; 
 (vi) repurchases of Capital Stock deemed to occur upon exercise of stock options, warrants or other similar rights, if such Capital Stock represents a portion of the exercise price of such options,
warrants or other similar rights; 
 (vii) payments of scheduled dividends on Disqualified Capital Stock of any
Restricted Subsidiary, the incurrence or issuance of which was permitted by this Indenture; 
 (viii) cash
payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Capital Stock of the Company; 

(ix) payments or distributions to dissenting stockholders of Capital Stock of the Company pursuant to applicable law,
pursuant to or in connection with a consolidation, merger or transfer of assets that complies with the this Indenture; 
 (x) cash dividends on the Company’s 7% cumulative convertible Preferred Stock outstanding on the Issue Date in an amount not to exceed $75,000 per year; 

(xi) the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value of any Subordinated
Obligation after a “change of control” in accordance with a provision similar to Section 3.09 (at a purchase price not greater than 101% of the principal amount of the Indebtedness) or an “asset sale” or “event of
loss” in accordance with provisions similar to Section 3.08 (at a purchase price not greater than 100% of the principal amount of the Indebtedness), in each case, plus accrued and unpaid interest; provided that, prior to or
simultaneously with such purchase, 

  
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repurchase, redemption, defeasance or other acquisition or retirement, the Company has made the Fundamental Change offer in accordance with Section 3.08 or the Asset Sale offer in
accordance with Section 3.09, as the case may be, and has completed the repurchase or redemption of all such notes validly tendered for payment in connection with such offer; and 

(xii) other Investments and the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value
of any Subordinated Obligation in an amount not to exceed $25,000,000 in the aggregate after the Issue Date. 
 (C) In
determining the aggregate amount of Restricted Payments made after the Issue Date in accordance with Section 4.11(A)(iii), amounts expended pursuant to Sections 4.11(B)(i) shall be included in the calculation. 

4.12 LIMITATIONS ON TRANSACTIONS WITH AFFILIATES.

 (A) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or
permit to exist any transaction or series of related transactions (including the purchase, sale, lease or exchange of any property or the rendering of any service) with, or for the benefit of, any of its Affiliates (each an “Affiliate
Transaction”), other than: 
 (i) Affiliate Transactions permitted by Section 4.12(B); and

 (ii) Affiliate Transactions on terms that are no less favorable than those that might reasonably have been
obtained in a comparable transaction at such time on an arm’s-length basis from a Person that is not an Affiliate of the Company or such Restricted Subsidiary. 
 With respect to Affiliate Transactions (other than those described in Section 4.12(B)) completed in any fiscal quarter of the Company, the Company shall deliver an Officers’ Certificate to the
Trustee within 10 Business Days of the end of such fiscal quarter certifying that such transactions are in compliance with Section 4.12(A)(ii) (it being understood that such officer may rely on a third-party expert in arriving at any such
determination). All Affiliate Transactions (and each series of related Affiliate Transactions which are similar or part of a common plan) involving aggregate payments or other property with a Fair Market Value in excess of $500,000 shall be approved
by a majority of the members of the Board of Directors (including a majority of the disinterested members thereof), such approval to be evidenced by a Board Resolution stating that such Board of Directors has determined that such transaction
complies with the foregoing provisions. If the Company or any Restricted Subsidiary of the Company enters into an Affiliate Transaction (or a series of related Affiliate Transactions related to a common plan) that involves an aggregate Fair Market
Value of more than $5,000,000, then the Company shall, prior to the consummation thereof, obtain a favorable opinion as to the fairness of the financial terms of such transaction or series of related transactions to

  
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the Company or the relevant Restricted Subsidiary, as the case may be, from an Independent Financial Advisor and file a copy of the same with the Trustee. 

(B) Notwithstanding anything to the contrary herein, the restrictions set forth in Section 4.12(A) shall not apply to the
following: 
 (i) loans, advances, fees and compensation (including bonuses) paid to, and indemnity provided on
behalf of, officers, directors, employees or consultants of the Company or any of its Restricted Subsidiaries as determined in good faith by the Board of Directors or senior management; 

(ii) transactions exclusively between or among the Company and any of its Restricted Subsidiaries or exclusively between
or among such Restricted Subsidiaries, provided such transactions are not otherwise prohibited by this Indenture; 
 (iii) any agreement as in effect as of the Issue Date or any transaction contemplated thereby and any amendment thereto or any replacement agreement thereto so long as any such amendment or replacement
agreement is not more disadvantageous to the Holders in any material respect than the original agreement as in effect on the Issue Date; 
 (iv) Restricted Payments permitted by this Indenture and Permitted Investments of the type described in the definition thereof; 

(v) any merger or other transaction with an Affiliate solely for the purpose of reincorporating the Company in another
jurisdiction or creating a holding company of the Company; 
 (vi) any employment, stock option, stock
repurchase, employee benefit compensation, business expense reimbursement, severance, termination or other employment-related agreements, arrangements or plans entered into by the Company or any of its Restricted Subsidiaries in the ordinary course
of business; and 
 (vii) the issuance of Qualified Capital Stock of the Company or receipt of capital
contributions from holders of the Company’s Capital Stock. 
 4.13 LIMITATION ON INCURRENCE
OF ADDITIONAL INDEBTEDNESS AND THE ISSUANCE OF DISQUALIFIED CAPITAL STOCK. 

(A) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume,
guarantee, acquire, become liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (other than Permitted Indebtedness); provided, however, that this Section 4.13(A) shall not
prohibit the Company or any Restricted Subsidiary that is or, upon such incurrence, becomes a Guarantor from incurring Indebtedness (including Acquired Indebtedness), if the Consolidated Fixed Charge Coverage Ratio as of the date of such incurrence
would 

  
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have been at least 2.5 to 1.0, determined on a pro forma basis (including a pro forma application of the net proceeds from such incurrence), as such Indebtedness had been issued at the beginning
of applicable Four-Quarter Period used to calculate such Consolidated Fixed Charge Coverage Ratio. 
 (B) The Company will not,
and will not permit any of its Domestic Restricted Subsidiaries to, directly or indirectly, incur any Indebtedness which by its terms (or by the terms of any agreement governing such Indebtedness) is subordinated in right of payment to any other
Indebtedness of the Company or such Domestic Restricted Subsidiary, unless such Indebtedness is also by its terms (or by the terms of any agreement governing such Indebtedness) made expressly subordinate to the Obligations of the Company or such
Domestic Restricted Subsidiary under (i) in the case of the Company, the Securities and this Indenture or (ii) in the case of such Domestic Restricted Subsidiary, its Subsidiary Guarantee and this Indenture, in each case, to the same
extent and in the same manner as such Indebtedness is subordinated to other Indebtedness of the Company or such Domestic Restricted Subsidiary. Unless otherwise expressly set forth in this Indenture, no Indebtedness will be deemed to be subordinated
in right of payment to any other Indebtedness of the Company or any Domestic Restricted Subsidiary solely by virtue of such Indebtedness being unsecured, having a junior lien on any collateral (whether by intercreditor agreement, operation of law,
or otherwise), lacking a security interest in any assets that secure other Indebtedness, or lacking one or more guarantees granted to other Indebtedness. 
 (C) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, issue any Disqualified Capital Stock; provided, however, that this Section
4.13(C) shall not prohibit the Company or any of its Restricted Subsidiaries from issuing Disqualified Capital Stock if the Consolidated Fixed Charge Coverage Ratio as of the date of such issuance would have been at least 2.5 to 1.0, determined
on a pro forma basis (including a pro forma application of the net proceeds from such issuance), as such Disqualified Capital Stock had been issued at the beginning of applicable Four-Quarter Period used to calculate such Consolidated Fixed Charge
Coverage Ratio. 
 4.14 LIMITATION ON DIVIDEND AND OTHER
PAYMENT RESTRICTIONS AFFECTING RESTRICTED SUBSIDIARIES. 
 The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or become effective any encumbrance or restriction on the
ability of any Restricted Subsidiary of the Company to: 
 (A) pay dividends or make any other distributions on or in respect of
its Capital Stock, 
 (B) make loans or advances to or pay any Indebtedness or other obligation owed to the Company or any other
Restricted Subsidiary of the Company, or 

  
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 (C) transfer any of its property or assets to the Company or any other Restricted Subsidiary
of the Company, 
 except, in each case, for such encumbrances or restrictions existing under or by reason of: 

(1) applicable law, rule or regulation; 
 (2) this Indenture, the Notes, the Subsidiary Guarantees and the Collateral Documents; 
 (3) customary non-assignment provisions of any contract governing a leasehold interest of or any lease of any Restricted Subsidiary of the Company; 

(4) any instrument governing Acquired Indebtedness, which encumbrance or restriction is not applicable to any Person, or the properties or
assets of any Person, other than the Person or the properties or assets of the Person so acquired; 
 (5) agreements existing on
the Issue Date to the extent and in the manner such agreements are in effect on the Issue Date; 
 (6) restrictions on the
transfer of assets subject to any Lien permitted under this Indenture; 
 (7) restrictions imposed by any agreement to sell
assets or Capital Stock permitted under this Indenture to any Person pending the closing of such sale; 
 (8) provisions in joint
venture agreements and other similar agreements (in each case relating solely to the respective joint venture or similar entity or the equity interests therein); 
 (9) restrictions in other Indebtedness incurred in compliance with Section 4.13 (including Permitted Indebtedness), provided that (i) such restrictions, taken as a whole, are, in the good
faith judgment of the Board of Directors, no more materially restrictive with respect to such encumbrances and restrictions than those customary in comparable financings and (ii) the Company determines that any such encumbrance or restriction
will not materially affect the Company’s ability to make principal, premium, if any, or interest, if any, on payments on the Securities or any Guarantor’s ability to honor its Subsidiary Guarantee in respect thereof; or 

(10) an agreement governing Indebtedness incurred to Refinance the Indebtedness issued, assumed or incurred pursuant to an agreement
referred to in clause (2), (4), (5) or (6) above, provided that the provisions relating to such encumbrance or restriction contained in any such Indebtedness are no less favorable to the Company in any material respect, as determined by
the Board of Directors, than the provisions relating to such encumbrance or restriction contained in agreements referred to in such clause (2), (4), (5) or (6). 

  
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 4.15 LIMITATION ON ASSET SALES.

 (A) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, consummate an
Asset Sale unless: 
 (i) the Company or such Restricted Subsidiary, as the case may be, receives consideration
at the time of such Asset Sale equal to or greater than the Fair Market Value of the assets sold or otherwise disposed of pursuant to such Asset Sale; 
 (ii) at least 75% of the consideration received by the Company or such Restricted Subsidiary, as the case may be, from such Asset Sale is in the form of cash, Cash Equivalents or Designated Non-Cash
Consideration and is received at the time of such Asset Sale; provided, however, that the following shall be deemed to be cash for purposes of this Section 4.15(A)(ii): (a) the amount of any liabilities (as shown on the
most recent applicable balance sheet) of the Company or such Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Securities) that are assumed by the transferee of the assets sold or otherwise disposed of
pursuant to such Asset Sale and (b) the Fair Market Value of any securities or other assets received by the Company or such Restricted Subsidiary in exchange for such assets, which securities or assets are converted into cash or Cash
Equivalents within 180 days after such Asset Sale; and provided, further, that any sale of transfer of the Designated Assets shall not be subject to the requirements of this Section 4.15(A)(ii); and 

(iii) the Company applies, or causes such Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset
Sale or any Net Loss Proceeds from an Event of Loss, as applicable, within 365 days of receipt thereof, either: 

(a) to make an investment in property, plant, equipment or other tangible or intangible non-current assets (including any
intellectual property or other rights to manufacture and sell pharmaceuticals) that replace the properties and assets that were the subject of such Asset Sale or Event of Loss, as applicable, or that will be used or useful in a Permitted Business
(including, without limitation, expenditures for maintenance, repair or improvement of existing properties and assets and research and development costs and expenses), or to make a capital expenditure, or to acquire all of the Capital Stock of a
Person engaged in a Permitted Business; provided that to the extent the subject of the Asset Sale or Event of Loss constituted Collateral, the acquired properties and assets shall be pledged as additional Collateral in accordance with and
pursuant to the Collateral Documents; 
 (b) to repay or repurchase Indebtedness secured by the property or
assets that were the subject of the Asset Sale or Event of Loss, as 

  
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applicable, but only to the extent that Indebtedness requires such a repayment or repurchase; 
 (c) solely with respect to any Asset Sale, to make an offer to repurchase, or to repurchase, Securities pursuant to a Repurchase Upon Asset Sale in accordance with Section 3.09; 

(d) solely with respect to any Asset Sale, for any other purpose; provided, however, that the aggregate
maximum amount pursuant to which the Company may apply pursuant to this Section 4.15(A)(iii)(d) with respect to all Asset Sales occurring on or after the Issue Date shall not exceed $2,500,000; 

(e) to make milestone payments to Hologic under the Makena Agreement; and 

(f) any combination of the foregoing. 
 Notwithstanding the foregoing, the Company shall not be permitted to sell, convey, transfer, lease, assign or otherwise transfer Makena or any rights therein or related thereto, other than the license or
sale of rights for jurisdictions outside the Unites States where the Company is not conducting material sales of Makena or related products. 
 For the avoidance of doubt, if the Company shall, in compliance with Section 4.15(A), make an offer to repurchase, with a specified amount of Net Cash Proceeds, Securities pursuant to a
Repurchase Upon Asset Sale in accordance with Section 3.09 and if the aggregate Asset Sale Repurchase Price in respect of all Securities tendered for repurchase pursuant to such Repurchase Upon Asset Sale is less than such specified amount of
Net Cash Proceeds, then the excess of such specified amount of Net Cash Proceeds over such aggregate Asset Sale Repurchase Price shall be deemed to have been properly applied by the Company pursuant to Section 4.15(A)(iii). 

If, on the date that is 366 days after the receipt of Net Cash Proceeds in connection with an Asset Sale or Net Loss Proceeds in
connection with an Event of Loss, as applicable, not all of such Net Cash Proceeds or Net Loss Proceeds, as applicable, were applied pursuant to Section 4.15(A)(iii), then (i) such date shall be deemed to be the date that the Company is
required, pursuant to Section 4.15(A)(iii), to make an offer to repurchase Securities; and (ii) the amount (the “Required Offer Amount”) that the Company is required to offer to repurchase Securities pursuant to
Section 3.09 shall be the amount of all Net Cash Proceeds and Net Loss Proceeds, as applicable, in respect of all Asset Sales and Events of Loss occurring before such date, that were not theretofore applied pursuant to Section
4.15(A)(iii). 
 4.16 LIMITATION ON LIENS. 

The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
permit any Liens (other 

  
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than Permitted Liens) of any kind to secure Indebtedness against or upon any property or assets of the Company or any of its Restricted Subsidiaries, whether owned on the Issue Date or acquired
after the Issue Date, or any proceeds therefrom, or assign or otherwise convey any right to receive income or profits therefrom. The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, assume or permit any Liens (other than Permitted Liens) of any kind to secure Indebtedness against or upon any leasehold interests in real property with respect to which the Company or any of its Restricted Subsidiaries is a tenant or
subtenant, provided that no Permitted Lien described in clause (6) of the definition thereof shall be permitted unless the Notes or the applicable Subsidiary Guarantee shall also be secured by such leasehold interests pursuant to a Permitted
Lien described in clause (15) of the definition thereof. 
 4.17 CONDUCT OF BUSINESS.

 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, engage in any
business that would be material to the Company and its Restricted Subsidiaries taken as a whole, other than a Permitted Business. 
 4.18
PAYMENTS TO HOLOGIC 
 The Company shall make a $45,000,000
payment to Hologic on or prior to the first anniversary of the Makena NDA Approval Date; provided that, notwithstanding the foregoing, the Company shall have the ability to modify the amount or timing of such payment so long as the revised
payment schedule (i) is not materially less favorable to Securityholders than the royalty schedule under the Makena Agreement as in effect on the Issue Date and (ii) does not increase the total payments to Hologic during the term of the
Securities. 
 4.19 [RESERVED]. 
 4.20 LIMITATION ON SALE AND LEASEBACK TRANSACTIONS. 

The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into any Sale and Leaseback
Transaction with respect to any property unless: 
 (A) the Company or such Restricted Subsidiary would be entitled to
(i) incur Indebtedness in an amount equal to the Attributable Debt relating to such Sale and Leaseback Transaction pursuant to the proviso to Section 4.13(A) and (ii) incur a Lien on such property securing such Attributable Debt
pursuant to Section 4.16; 
 (B) the net proceeds of such Sale and Leaseback Transaction are at least equal to the Fair
Market Value of such property; and 
 (C) the transfer of assets in such Sale and Leaseback Transaction is treated as an Asset
Sale and permitted by, and the Company applies the Net Cash Proceeds of such deemed Asset Sale in compliance with, Section 4.15. 

  
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 The foregoing provisions will not apply to transactions (i) among the Company and any
of the Guarantors, (ii) among the Guarantors or (iii) among Subsidiaries of the Company that are not Guarantors. 
 4.21
PAYMENTS FOR CONSENTS. 
 The Company will not, and will not permit any of
its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture,
the Securities, the Subsidiary Guarantees or any Collateral Document unless such consideration is offered to be paid or is paid to all Holders that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating
to such consent, waiver or agreement. 
 4.22 EXCHANGE OFFER. 

(A) The Company and each Guarantor agree, at their own expense, to use their commercially reasonable efforts to: (i) file no later
than June 30, 2011, a registration statement under the Securities Act (the “Exchange Offer Registration Statement”) to register, under the Securities Act, the exchange (the “Exchange Offer”) of the Pre-Exchange
Securities for the Post-Exchange Securities; (ii) cause the Exchange Offer to be consummated by September 30, 2011. 

(B) Each Pre-Exchange Security tendered pursuant to the Exchange Offer in accordance herewith shall be exchanged for a Post-Exchange
Security with a principal amount equal to the principal amount of such tendered Pre-Exchange Security. Interest on each Post-Exchange Security will accrue from the most recent date on which interest has been paid on the Pre-Exchange Security, or if
no interest has been paid on such note, from the Issue Date. 
 (C) On the date the Exchange Offer Registration Statement
becomes effective under the Securities Act, the Company shall mail, or cause to be mailed, to all Holders of the Securities at their addresses shown in the register of the Registrar, and to beneficial owners as required by applicable law, with a
copy thereof to the Trustee, a notice stating that such Exchange Offer Registration Statement has become effective under the Securities Act. 
 (D) If the Company is unable to consummate the Exchange Offer (including, without limitation, because of any change in law or the interpretation thereof), then the Company shall: 

(i) promptly deliver to the Holders and the Trustee written notice thereof; and 

(ii) at its expense, (1) within 60 days of becoming aware but no sooner than June 30, 2011, prepare and file a
shelf registration statement under the Securities Act covering resales of the Pre-Exchange Notes; (2) use its commercially reasonable efforts to cause such registration statement to become

  
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effective under the Securities Act as soon as reasonably practicable; and (3) keep such registration statement effective until the earlier of (x) the date all Pre-Exchange Securities
are able to be sold by non-affiliates of the Company pursuant to Rule 144(b)(1) under the Securities Act without compliance with the current public information requirements of such rule and (y) the date all Pre-Exchange Securities are resold
pursuant to such registration statement. 
 (E) If (i) the Exchange Offer Registration Statement is not filed on or prior
to June 30, 2011 or (ii) the Exchange Offer has not been consummated by September 30, 2011 (each such event referred to in clauses (i) and (ii), a “Registration Default”), then the Company and the Guarantors
shall jointly and severally agree to pay to each Holder affected thereby special interest (“Special Interest”) in the same manner and at the same times as other interest payments in an amount equal to 0.25% per annum for the
first 90-day period immediately following the occurrence of such Registration Default. The amount of the Special Interest shall increase to 0.50% per annum for the second 90-day period following the occurrence of such Registration Default,
0.75% per annum for the third 90-day period following the occurrence of such Registration Default and 1.00% per annum thereafter for the remaining potion of the Registration Default; provided that the Company and the Guarantors
shall in no event be required to pay Special Interest for more than one Registration Default at any given time. Notwithstanding anything to the contrary set forth herein, (1) upon filing of the Exchange Offer Registration Statement, in the case
of clause (i) above, (2) upon the consummation of the Exchange Offer, in the case of clause (ii) above, (3) upon the effectiveness of a shelf registration statement required by Section 4.22(D) and only during such
time as that shelf registration statement is effective (other than its becoming not effective pursuant to Section 4.22(D)(ii)(3)), or (4) upon the Pre-Exchange Securities becoming saleable without restriction pursuant to Rule 144,
the Special Interest payable with respect to the Pre-Exchange Securities as a result of such clause (i) and (ii), as applicable, shall cease. For the avoidance doubt, a Registration Default shall not be considered a Default under
Section 6.01(iv) or any other provision of this Indenture, but the failure by the Company and the Guarantors to pay Special Interest to each affected Holder shall be considered a Default under Section 6.01(ii). The Company
shall provide notice of (i) when a Registration Default occurs and (ii) when such Special Interest shall cease to be payable. 
 4.23
INTEREST RESERVE ACCOUNT. 
 The Company shall establish the Interest Reserve
Account prior to the issuance of the Securities and on the Issue Date, the Company shall deposit cash or Cash Equivalents in an amount equal to $27,000,000 into the Interest Reserve Account. The Company shall not be permitted to make withdrawals
from the Interest Reserve Account other than for payment of interest on the Securities (it being understood that any amounts remaining in the Interest Reserve Account in the nature of investment income shall be released to the Company after the
first two scheduled interest payments are made, and otherwise provided no Default or Event of Default has occurred and is continuing), except as provided in the Interest Reserve Account Control Agreement. 

  
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 4.24 ADDITIONAL GUARANTORS TO BECOME
PARTY TO COLLATERAL DOCUMENTS. 
 If any additional Domestic
Restricted Subsidiary of the Company becomes a Guarantor after the Issue Date, the Company shall notify the Collateral Agent in writing and as soon as practicable, and in any event within 30 days after the date such Subsidiary becomes a Guarantor,
the Company shall cause the new Guarantor to execute a joinder to the applicable Collateral Documents and grant a first priority security interest (subject to Permitted Liens) on the Collateral of such Person in favor of the Collateral Agent for the
benefit of the Secured Parties. All security interests provided pursuant this Section 4.24(C) shall be accompanied by such Opinions of Counsel as customarily given by counsel in the relevant jurisdiction. In addition, the Company shall
deliver an Officers’ Certificate to the Collateral Agent certifying that the necessary measures have been taken to perfect the security interest in such Collateral in the manner and by the times otherwise required hereunder or under the
applicable Collateral Documents. 
 4.25 NO IMPAIRMENT OF SECURITY
INTEREST. 
 No Obligor shall take any action, or knowingly or negligently omit to take any action, which
action or omission could reasonably be expected to have the result of materially impairing the security interest with respect to any material portion of the Collateral in favor of the Collateral Agent for the benefit of the Secured Parties, except
for actions or omissions that are permitted by, or not in violation of, this Indenture and the Collateral Documents. 
 4.26
CERTAIN POST-CLOSING OBLIGATIONS. 
 As promptly as
practicable, and in any event within 90 days after the Issue Date, the Obligors shall deliver the documents and take the actions specified on Schedule 1. 
 V. SUCCESSORS 
 5.01 WHEN COMPANY MAY
MERGE, ETC. 
 The Company shall not consolidate with, or merge with or into, or sell,
transfer, lease, convey or otherwise dispose of all or substantially all of the property or assets of the Company, or of the Company and its Restricted Subsidiaries taken as a whole, to, another person (other than the Company or a Guarantor),
whether in a single transaction or series of related transactions, unless: 
 (A) the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale, transfer, lease, conveyance or disposition is made (1) is a corporation organized or existing under the laws of the United States, any state of the United States or the
District of Columbia and (2) assumes all the obligations of the Company under (x) the Securities and this Indenture, pursuant to a supplemental indenture reasonably satisfactory in form to the Trustee and (y) the Collateral Documents,
by amendment, supplement or other instrument satisfactory in form to the Trustee and the Collateral Agent executed and delivered to the Trustee and the Collateral 

  
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agent, and in connection therewith shall cause such instruments to be filed and recorded in such jurisdictions and take such other actions as may be required by applicable law to perfect or
continue the perfection of the Lien created under the Collateral Documents on the Collateral owned by or transferred to such Person; 
 (B) immediately after giving effect to such transaction or series of transactions, no Default or Event of Default shall exist; and 
 (C) the Company or the Person formed by or surviving any such consolidation or merger (if other than the Company) or to which such sale, transfer, lease, conveyance or disposition is made would, on the
date of such transaction or series of transactions, after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the applicable Four Quarter Period, be permitted to incur at least one
dollar of additional Indebtedness (other than Permitted Indebtedness) in compliance with the proviso to Section 4.13(A). 

The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers’ Certificate to the
foregoing effect and an Opinion of Counsel (which may rely upon such Officers’ Certificate as to the absence of Defaults and Events of Default) stating that the proposed transaction and such supplemental indenture will, upon consummation of the
proposed transaction, comply with this Indenture. 
 Notwithstanding anything herein to the contrary, the foregoing requirements
shall not apply to any transaction or series of transactions involving the sale, transfer, lease, conveyance or disposition of any properties or assets by any Subsidiary to any Guarantor, or the consolidation or merger of any Subsidiary with or into
any other Guarantor or the Company. 
 5.02 SUCCESSOR SUBSTITUTED. 

Upon any consolidation, merger or any sale, transfer, lease, conveyance or other disposition of all or substantially all of the property
or assets of the Company, or of the Company and its Subsidiaries on a consolidated basis, the successor person formed by such consolidation or into which the Company is merged or to which such sale, transfer, lease, conveyance or other disposition
is made shall succeed to, and, except in the case of a lease, be substituted for, and may exercise every right and power of, and shall assume every duty and obligation of, the Company under this Indenture with the same effect as if such successor
had been named as the Company herein. When the successor assumes all obligations of the Company hereunder, except in the case of a lease, all obligations of the predecessor shall terminate. 

VI. DEFAULTS AND REMEDIES 

6.01 EVENTS OF DEFAULT. 
 An “Event of Default” occurs if: 

  
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 (i) the Company fails to pay the principal of, or premium, if any, on, any
Security when the same becomes due and payable, whether at maturity, upon Redemption, on a Fundamental Change Repurchase Date with respect to a Repurchase Upon Fundamental Change, on an Asset Sale Repurchase Date with respect to a Repurchase Upon
Asset Sale or otherwise; 
 (ii) the Company fails to pay an installment of interest (including Special Interest
required by Section 4.22, if any) on any Security when due, if such failure continues for 30 days after the date when due; 
 (iii) the Company fails to timely provide a Fundamental Change Notice or Asset Sale Notice, as required by the provisions of this Indenture, if such failure continues for 30 days; 

(iv) the Company or any Guarantor fails to comply with any other term, covenant or agreement set forth in the Securities
or this Indenture (other than pursuant to Section 4.22) and such failure continues for the period, and after the notice, specified in the last paragraph of this Section 6.01; 

(v) the Company or any of its Subsidiaries defaults in the payment when due, after the expiration of any applicable grace
period, of principal of, or premium, if any, on Indebtedness for money borrowed, in the aggregate principal amount then outstanding of $5,000,000 or more, or the acceleration of Indebtedness of the Company or any of its Subsidiaries for money
borrowed in such aggregate principal amount or more so that it becomes due and payable prior to the date on which it would otherwise become due and payable and such default is not cured or waived, or such acceleration is not rescinded, within 30
days after notice to the Company by the Trustee or to the Company and the Trustee by Holders of at least 25% in aggregate principal amount of the Securities then outstanding, each in accordance with this Indenture; 

(vi) the Company or any of its Subsidiaries fails to pay final judgments, the aggregate uninsured portion of which is at
least $5,000,000, and such judgments are not paid or discharged within 60 days; 
 (vii) any Lien or security
interest created by any Collateral Document with respect to Collateral in excess of $5,000,000 ceases to be in full force and effect (except (i) as permitted by the terms of this Indenture or the Collateral Documents or (ii) as a result of
the release of a Guarantor or the sale or other disposition of the applicable Collateral in a transaction permitted hereunder or under the Collateral Documents); 

(viii) except as permitted by this Indenture, any Subsidiary Guarantee of a Significant Subsidiary shall be held in any
final, non-appealable judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full force and effect or any Guarantor that is a Significant Subsidiary, or 

  
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any Person acting on behalf of any Guarantor that is a Significant Subsidiary, shall deny or disaffirm its obligations under its Subsidiary Guarantee; 

(ix) the Company or any of its Significant Subsidiaries or any group of the Company’s Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company, pursuant to, or within the meaning of, any Bankruptcy Law, insolvency law, or other similar law now or hereafter in effect or otherwise, either: 

(A) commences a voluntary case, 
 (B) consents to the entry of an order for relief against it in an involuntary case, 
 (C) consents to the appointment of a Custodian of it or for all or substantially all of its property, or 
 (D) makes a general assignment for the benefit of its creditors; or 

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

(A) is for relief against the Company or any of its Significant Subsidiaries or any group of the Company’s
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company in an involuntary case or proceeding, or adjudicates the Company or any of its Significant Subsidiaries or any group of the Company’s Subsidiaries that
in the aggregate would constitute a Significant Subsidiary of the Company insolvent or bankrupt, 
 (B) appoints
a Custodian of the Company or any of its Significant Subsidiaries or any group of the Company’s Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company for all or substantially all of the property of the
Company or any such Significant Subsidiary or any group of the Company’s Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company, as the case may be, or 

(C) orders the winding up or liquidation of the Company or any of its Significant Subsidiaries or any group of the
Company’s Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company, 
 and, in the case
of each of the foregoing clauses (A), (B) and (C) of this Section 6.01(x), the order or decree remains unstayed and in effect for at least 90 consecutive days; or 

  
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 (xi) the Company defaults under a material provision of the Makena Agreement
and the default would, with the giving of notice or the passage of time, give the counterparty to the Makena Agreement the right to foreclose upon any assets securing the Company’s obligations under the Makena Agreement, and such default
continues for a period of 30 days without being cured or waived. 
 The term “Bankruptcy Law” means Title 11,
U.S. Code or any similar Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

A Default under clause (iv) above is not an Event of Default until (I) the Trustee notifies the Company, or the Holders of at
least 25% in aggregate principal amount of the Securities then outstanding notify the Company and the Trustee, of the Default and (II) the Default is not cured within 60 days after receipt of such notice. Such notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default.” If the Holders of at least 25% in aggregate principal amount of the outstanding Securities request the Trustee to give such notice on their behalf, the Trustee
shall do so. When a Default is cured, it ceases. For the avoidance of doubt, no failure of the Company or any Restricted Subsidiary to comply with the terms of Section 4.22 may result in a Default or Event of Default, other than upon the
failure to pay any Special Interest required thereby. 
 6.02 ACCELERATION. 

If an Event of Default (excluding an Event of Default specified in Section 6.01(ix) or (x) with respect to the Company (but
including an Event of Default specified in Section 6.01(ix) or (x) solely with respect to a Significant Subsidiary of the Company or any group of the Company’s Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company)) occurs and is continuing, the Trustee by written notice to the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then outstanding by written notice to the Company and the Trustee, may
declare the Securities to be immediately due and payable in full. Upon such declaration, the principal of, and any accrued and unpaid interest on, all Securities shall be due and payable immediately. If an Event of Default specified in Section
6.01(ix) or (x) with respect to the Company (excluding, for purposes of this sentence, an Event of Default specified in Section 6.01(ix) or (x) solely with respect to a Significant Subsidiary of the Company or any group of
the Company’s Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company) occurs, the principal of, and accrued and unpaid interest on, all the Securities shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or any Holder. The Holders of a majority in aggregate principal amount of the Securities then outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict with any order or decree, (B) all existing Events of Default, except the nonpayment of principal or interest that has become due solely because of the acceleration,
have been cured or waived and (C) all amounts due to the Trustee under Section 7.07 have been paid. 

  
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 6.03 OTHER REMEDIES. 

Notwithstanding anything herein to the contrary, if an Event of Default occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of amounts due with respect to the Securities or to enforce the performance of any provision of the Securities or this Indenture and may also direct the Collateral Agent to pursue any
available remedy or exercise any rights the Collateral Agent has pursuant to the Pledge and Security Agreement, other Collateral Documents or applicable law. 
 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in exercising
any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative. 
 6.04 WAIVER OF PAST DEFAULTS. 
 Subject to Sections 6.07 and 11.02, the Holders of a majority in aggregate principal amount of the Securities then outstanding may, by notice to the Trustee, waive any Default or Event of
Default and its consequences, other than (A) a Default or Event of Default in the payment of the principal of, or premium, if any, or interest on, any Security, or in the payment of the Redemption Price, the Fundamental Change Repurchase Price
or the Asset Sale Repurchase Price (or accrued and unpaid interest, if any, payable as herein provided, upon Redemption, Repurchase Upon Fundamental Change or Repurchase Upon Asset Sale) or (B) any Default or Event of Default in respect of any
provision of this Indenture or the Securities which, under Section 11.02, cannot be modified or amended without the consent of the Holder of each outstanding Security affected. When a Default or an Event of Default is waived, it is cured and
ceases. This Section 6.04 shall be in lieu of TIA § 316(a)(1)(B), and, as permitted by the TIA, TIA § 316(a)(1)(B) is hereby expressly excluded from this Indenture. 
 6.05 CONTROL BY MAJORITY. 
 The
Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, is unduly prejudicial to the rights of other Holders or would involve the Trustee in personal liability unless the Trustee is offered indemnity or
security satisfactory to it; provided, that the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. This Section 6.05 shall be in lieu of TIA § 316(a)(1)(A), and, as
permitted by the TIA, TIA § 316(a)(1)(A) is hereby expressly excluded from this Indenture. 

  
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 6.06 LIMITATION ON SUITS. 

Except as provided in Section 6.07, a Securityholder may not institute any proceeding under this Indenture, or for the appointment
of a receiver or a trustee, or for any other remedy under this Indenture unless: 
 (i) the Holder gives to the
Trustee written notice of a continuing Event of Default; 
 (ii) the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding make a written request to the Trustee to pursue the remedy; 

(iii) such Holder or Holders offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against
any loss, liability or expense; 
 (iv) the Trustee does not comply with the request within 60 days after receipt
of such notice, request and offer of indemnity; and 
 (v) during such 60 day period, the Holders of a majority
in aggregate principal amount of the Securities then outstanding do not give the Trustee a direction inconsistent with the request. 
 A Securityholder may not use this Indenture to prejudice the rights of another Securityholder or to obtain a preference or priority over another Securityholder. 

6.07 RIGHTS OF HOLDERS TO RECEIVE PAYMENT. 

Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of all amounts due with respect to the
Securities, on or after the respective due dates as provided herein, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of the Holder. 

6.08 COLLECTION SUIT BY TRUSTEE. 

If an Event of Default specified in Section 6.01(i) or (ii) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company for the whole amount due with respect to the Securities, including any unpaid and accrued interest. 
 6.09 TRUSTEE MAY FILE PROOFS OF CLAIM. 

The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee, any predecessor Trustee and the Securityholders allowed in any judicial proceedings relative to the Company or its creditors or properties. 

  
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 The Trustee may collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents, advisors and counsel,
and any other amounts due the Trustee under Section 7.07. 
 Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding. 
 6.10 PRIORITIES. 

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

  

			
	First:	  	to the Trustee for amounts due under Section 7.07 and the Collateral Agent pursuant to the Collateral Documents;
		
	Second:	  	to Securityholders for all amounts due and unpaid on the Securities, without preference or priority of any kind, according to the amounts due and payable on the Securities;
and
		
	Third:	  	to the Company.

 The Trustee, upon prior
written notice to the Company, may fix a record date and payment date for any payment by it to Securityholders pursuant to this Section 6.10. At least 15 days before each such record date, the Trustee shall mail to each Holder and the Company
a written notice that states such record date and payment date and the amount of such payment. 
 6.11 UNDERTAKING
FOR COSTS. 
 In any suit for the enforcement of any right or remedy under this Indenture or in
any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit other than the Trustee of an undertaking to pay the costs of the suit, and the court in
its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section
6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in aggregate principal amount of the outstanding Securities. 

  
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 VII. TRUSTEE 
 7.01 DUTIES OF TRUSTEE. 
 (A)
If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of his or her own affairs. 
 (B) Except during the continuance of an Event of Default:

 (i) the Trustee need perform only those duties that are specifically set forth in this Indenture and no
implied covenants or obligations shall be read into this Indenture against the Trustee; and 
 (ii) in the
absence of bad faith, willful misconduct or negligence on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein). 

(C) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful
misconduct, except that: 
 (i) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; 

(ii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with
a direction received by it pursuant to Section 6.05 or any direction provided by the Company in accordance with the terms of the Indenture; and 
 (iii) this paragraph does not limit the effect of Section 7.01(B). 

(D) Every provision of this Indenture that in any way relates to the Trustee is subject to the provisions of this Section 7.01.

 (E) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with
the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 

  
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 7.02 RIGHTS OF TRUSTEE. 

(A) Subject to Section 7.01, the Trustee may conclusively rely on any document believed by it to be genuine and to have been signed
or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document; if, however, the Trustee shall determine to make such further inquiry or investigation, it shall be entitled during normal business hours
to examine the relevant books, records and premises of the Company, personally or by agent or attorney upon reasonable prior notice. 
 (B) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate and/or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in
good faith in reliance on such Officers’ Certificate or Opinion of Counsel. 
 (C) Any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or Company Order, and any resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution. 

(D) The Trustee may consult with counsel, and the advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 
 (E) The Trustee may act through agents or attorneys and shall not be responsible for the misconduct or negligence of any agent or attorney appointed with due care. 

(F) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within
its discretion, rights or powers conferred upon it by this Indenture. 
 (G) The Trustee shall have no duty to inquire as to the
performance of the Company with respect to the covenants contained in Article IV. In addition, the Trustee shall not be deemed to have knowledge of a Default or an Event of Default except (I) any Default or Event of Default occurring
pursuant to Sections 6.01(i) or (ii) or (II) any Default or Event of Default of which a Responsible Officer of the Trustee shall have received written notification or obtained actual knowledge. Delivery of reports, information and
documents to the Trustee under Article IV (other than Sections 4.04 and 4.07) is for informational purposes only and the Trustee’s receipt of the foregoing 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 on Officers’ Certificates). 

(H) The Trustee shall be under no obligation to exercise any of the rights or powers vested by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture unless such Holders shall have offered to the Trustee security or 

  
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indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. 

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

(J) The Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles
of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded. 
 (K) Any permissive right of the Trustee to take or refrain
from taking actions enumerated in this Indenture shall not be construed as a duty. 
 (L) The Trustee shall not be responsible
for delays or failures in performance resulting from acts beyond its control. 
 (M) No provision of this Indenture or any
Collateral Document shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or under any Collateral Document or to take or omit to take any action under
this Indenture or under any Collateral Document or take any action at the request or direction of Holders if it shall have reasonable grounds for believing that repayment of such funds is not assured to it. 

(N) Notwithstanding anything contained herein to the contrary, neither the Trustee nor the Registrar shall be responsible for
ascertaining whether any transfer, exchange, redemption or repurchase complies with the registration provisions of or exemptions from the Securities Act, Exchange Act, applicable state securities laws or other applicable law. 

(O) To the extent not inconsistent herewith, the rights, protections, immunities and indemnities afforded to the Trustee pursuant to this
Indenture also shall be afforded to the Collateral Agent acting pursuant to the Collateral Documents. 
 7.03 INDIVIDUAL
RIGHTS OF TRUSTEE. 
 The Trustee in its individual or any other capacity may
become the owner or pledgee of Securities and may otherwise deal with the Company or any of its Affiliates with the same rights the Trustee would have if it were not Trustee. Any Securities Agent may do the same with like rights. The Trustee,
however, must comply with Sections 7.10 and 7.11. 

  
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 7.04 TRUSTEE’S DISCLAIMER. 

The Trustee makes no representation as to the validity or adequacy of this Indenture, the Collateral Documents or the Securities; the
Trustee shall not be accountable for the Company’s use of the proceeds from the Securities; and the Trustee shall not be responsible for any statement in the Securities other than its certificate of authentication. 

7.05 NOTICE OF DEFAULTS. 

If a Default or Event of Default occurs and is continuing as to which the Trustee has received notice pursuant to the provisions of this
Indenture, or as to which a Responsible Officer of the Trustee shall have actual knowledge, then the Trustee shall mail to each Holder a notice of the Default or Event of Default within 90 days after the Trustee has received notice or has actual
knowledge thereof unless such Default or Event of Default has been cured or waived; provided, however, that, except in the case of a Default or Event of Default in payment of any amounts due with respect to any Security, the Trustee
may withhold such notice if, and so long as it in good faith determines that, withholding such notice is in the interests of Holders. 
 7.06
REPORTS BY TRUSTEE TO HOLDERS. 
 Within 60
days after each March 15, beginning with March 15, 2012, the Trustee shall mail to each Securityholder if required by TIA § 313(a) a brief report dated as of such May 15 that complies with TIA § 313(c). In such event, the
Trustee also shall comply with TIA § 313(b). 
 A copy of each report at the time of its mailing to Securityholders shall
be mailed by first class mail to the Company and filed by the Trustee with the SEC and each stock exchange, if any, on which the Securities are listed. The Company shall promptly notify the Trustee of the listing or delisting of the Securities on or
from any stock exchange. 
 7.07 COMPENSATION AND INDEMNITY. 

The Company shall pay to the Trustee from time to time such compensation for its services as shall be agreed upon in writing. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include
the reasonable compensation and out-of-pocket expenses of the Trustee’s agents, advisors and counsel. 
 The Company shall
indemnify the Trustee against any and all loss, liability, damage, claim or expense (including the reasonable fees and expenses of counsel and taxes other than those based upon the income of the Trustee) incurred by it in connection with the
acceptance or administration of this trust and the performance of its duties hereunder, including the reasonable costs and expenses of defending itself against any claim (whether asserted by the Company, any Holder or any other Person) or liability
in connection with the exercise or performance of any of its powers and duties hereunder. 

  
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The Company need not pay for any settlement made without its consent (such consent not to be unreasonably withheld). The Trustee shall notify the Company promptly of any claim for which it may
seek indemnification; provided that failure to provide any such notice shall not limit the Company’s obligations under this Section 7.07. The Company need not reimburse any expense or indemnify against any loss or liability
incurred by the Trustee through the Trustee’s negligence, bad faith or willful misconduct. 
 To secure the Company’s
payment obligations in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay amounts due on particular Securities. 

The Company shall pay all amounts owing to the Trustee (including in its capacity as Collateral Agent) pursuant to the Collateral
Documents. 
 The obligations of the Company with respect to the Trustee provided for in this Section 7.07 shall survive
any resignation or removal of the Trustee and the termination of this Indenture. 
 When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.01(ix) or (x) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law. 

7.08 REPLACEMENT OF TRUSTEE. 
 A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.08. 
 The Trustee may resign by so notifying the Company in writing 30 Business Days prior to such resignation. The
Holders of a majority in aggregate principal amount of the Securities then outstanding may remove the Trustee by so notifying the Trustee and the Company in writing and may appoint a successor Trustee with the Company’s consent. The Company may
remove the Trustee if: 
 (i) the Trustee fails to comply with Section 7.10; 

(ii) the Trustee is adjudged a bankrupt or an insolvent; 

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

(iv) the Trustee becomes incapable of acting. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. 

If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee (at the
Company’s expense), the Company or 

  
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the Holders of at least 10% in aggregate principal amount of the outstanding Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

If the Trustee fails to comply with Section 7.10, the Company or any Holder may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee. 
 A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section
7.07. 
 7.09 SUCCESSOR TRUSTEE BY MERGER, ETC.

 If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further act shall be the successor Trustee, if such successor corporation is otherwise eligible hereunder. 
 7.10 ELIGIBILITY; DISQUALIFICATION. 
 There
shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state thereof, which Trustee (A) is authorized under such laws to exercise corporate trustee
power, (B) is subject to supervision or examination by federal or state authorities and (C) has a combined capital and surplus of at least $100,000,000 as set forth in its most recent published annual report of condition. The Trustee shall
comply with TIA § 310(b). Nothing in this Indenture shall prevent the Trustee from filing with the SEC the application referred to in the penultimate paragraph of TIA § 310(b). 
 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. 

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

 8.01 SUBSIDIARY GUARANTEES. 
 (A) The Securities shall be guaranteed by each of the Guarantors (each such guarantee, a “Subsidiary Guarantee”) in accordance with the provisions of this Article VIII. 

  
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 (B) Subject to this Article VIII, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of the Securities and the Trustee and Collateral Agent: (i) that the principal of, and interest on, the Securities will be promptly paid in full when due, whether at the Maturity Date, the
Redemption Date, the Fundamental Change Repurchase Date, Asset Sale Repurchase Date or other due date, and interest on the overdue principal of and interest and premium, if any, on the Securities, if any, if lawful, and that all other obligations of
the Company to the Holders or the Trustee or Collateral Agent hereunder or under the Collateral Documents will be promptly paid in full or performed, all in accordance with the terms of this Indenture; and (ii) in case of any extension of time
of payment or renewal of any Securities or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at the Maturity Date, the Redemption Date,
the Fundamental Change Repurchase Date, the Asset Sale Repurchase Date or other due date. Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors shall be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection. 
 (C) Subject to this Article VIII, the Guarantors hereby, jointly and severally, agree that their obligations hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions of this Indenture or of the Securities, 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 its Subsidiary Guarantee shall not be discharged except
by complete performance of the obligations contained in this Indenture and the Securities. 
 (D) If any Holder or the Trustee
or Collateral Agent 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 either the Company or the Guarantors any amount paid by any of
the foregoing to such Holder or the Trustee or Collateral Agent, then each Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. 

(E) Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Trustee or Collateral Agent or the
Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee or Collateral Agent,
on the other hand, (i) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article VI for the purposes of the Subsidiary Guarantees, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby and (ii) in the event of any declaration of acceleration of such obligations as provided in 

  
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Article VI, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guarantors for the purpose of the Subsidiary Guarantees. 

(F) The Guarantors shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not
impair the rights of the Holders under the Subsidiary Guarantees. The provisions of this Section 8.01(F) shall in no respect limit the obligations and liabilities of each Guarantor to the Secured Parties and the Holders and each
Guarantor shall remain liable to the Secured Parties and the Holders for the full amount guaranteed by such Guarantor hereunder. 
 8.02
GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS. 
 No Guarantor shall consolidate with, or merge with or into, or sell, transfer, lease, convey or otherwise dispose of all or substantially all of its property or assets to another person, whether in a
single transaction or series of related transactions, unless: 
 (A) immediately after giving effect to such transaction or
series of related transactions, no Default or Event of Default exists; and 
 (B) subject to Section 8.03, the surviving
person (if not such Guarantor) or the person acquiring such property or assets assumes all the obligations of such Guarantor under this Indenture and its Subsidiary Guarantee pursuant to a supplemental indenture in form satisfactory to the Trustee.

 Subject to Section 8.03, if there shall occur any such consolidation, merger, sale, transfer, lease, conveyance or
disposition with respect to a Guarantor, then, upon the assumption by the successor person, by supplemental indenture executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee of such Guarantor and
the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by such Guarantor, such successor person shall succeed to and be substituted for such Guarantor with the same effect as if such successor
person had been named in this Indenture as a Guarantor. Each Subsidiary Guarantee so issued shall in all respects have the same legal rank and benefit under this Indenture and the Securities as the Subsidiary Guarantees theretofore and thereafter
issued in accordance with the terms of this Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. 
 Except as provided in Article V, and notwithstanding Section 8.02(A) and Section 8.02(B), nothing contained in this Indenture or in any of the Securities shall prevent any sale,
transfer, lease, conveyance or disposition of all or substantially all of the property or assets of a Guarantor to the Company or another Guarantor or prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor.

 The Company shall deliver to the Trustee prior to the consummation of the foregoing transaction an Officers’ Certificate
to the foregoing effect and an Opinion of Counsel (which may rely upon such Officers’ Certificate as to the absence of Defaults and Events of Default) stating that the proposed transaction and such supplemental

  
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indenture will, upon consummation of the proposed transaction, comply with this Indenture. 
 8.03 RELEASE OF SUBSIDIARY GUARANTEES. 
 The Subsidiary Guarantee of a Guarantor will be released, and any Person acquiring assets (including by way of merger or consolidation) or Capital Stock of a Guarantor shall not be required to assume the
obligations of such Guarantor: 
 (A) in connection with any sale, transfer, lease, conveyance or disposition of all or
substantially all of the property or assets of such Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) the Company or a Subsidiary of the Company otherwise
permitted by this Indenture; 
 (B) in connection with any sale of a majority of the Capital Stock of such Guarantor to a Person
that is not (either before or after giving effect to such transaction) the Company or a Subsidiary of the Company otherwise permitted by this Indenture; or 
 (C) if the Company’s obligations under this Indenture and the Securities are discharged in accordance with the terms thereof. 
 Upon delivery by the Company to the Trustee of an Officers’ Certificate and an Opinion of Counsel to the foregoing effect, the Trustee will execute any documents reasonably requested in order to
evidence the release of the Guarantor from its obligations under its Subsidiary Guarantee. 
 8.04 FRAUDULENT
CONVEYANCES. 
 Each Guarantor, and, by its acceptance of any Security, each Holder, hereby confirms that it
is the intention of all such parties that the Subsidiary Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law to the extent applicable to any Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under its
Subsidiary Guarantee shall be limited to the maximum amount as will, after giving effect to all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under its Subsidiary Guarantee, result in the obligations of such Guarantor under its Subsidiary Guarantee not
constituting a fraudulent transfer or conveyance. 
 8.05 ADDITIONAL SUBSIDIARY GUARANTEES.

 If, after the Issue Date, a Person who was not theretofore a wholly owned Domestic Restricted Subsidiary of the Company
becomes a wholly owned Domestic Restricted Subsidiary of the Company, then such Person shall, within 15 days after the 

  
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end of the fiscal quarter in which such Person becomes a Guarantor, execute a supplemental indenture giving effect to such Subsidiary Guarantee, and deliver an Opinion of Counsel stating that the
proposed transaction and such supplemental indenture will, upon consummation of the proposed transaction, comply with this Indenture. 
 8.06
EXECUTION AND DELIVERY OF GUARANTY. 
 The
execution by each Guarantor of this Indenture (or a supplemental indenture) evidences the Subsidiary Guarantee of such Guarantor, whether or not the person signing as an officer of the Guarantor still holds that office at the time of authentication
of any Security. The delivery of any Security by the Trustee after authentication constitutes due delivery of the Subsidiary Guarantee set forth in this Indenture on behalf of each Guarantor. 

IX. SECURITY 
 9.01
COLLATERAL DOCUMENTS. 
 (a) The Trustee shall initially act as Collateral Agent. Whether or
not so expressly stated therein, in entering into, or taking (or forbearing from) any action under or pursuant to, any Collateral Document, the Collateral Agent shall have all of the rights, immunities, indemnities and other protections granted to
it and to the Trustee under this Indenture (in addition to those that may be granted to it under the terms of any Collateral Document or such other agreement or agreements). 
 (b) In order to secure the due and punctual payment of principal of and interest and premium, if any, on the Securities, the Obligors have entered or will enter into the Collateral Documents to create
security interests in the Collateral on a first priority basis (subject to Permitted Liens) in accordance with the terms hereof of the Collateral Documents. In the event of a conflict between the terms of this Indenture and the Collateral Documents,
the Indenture shall control. 
 The Company shall deliver to the Collateral Agent copies of all the Collateral Documents, and
will do or cause to be done all such acts and things as may be reasonably required to assure and confirm to the Collateral Agent the security interest in the Collateral contemplated hereby, by the Collateral Documents or any part thereof, as from
time to time constituted, so as to render the same available for the security and benefit of this Indenture and of the Securities secured hereby, according to the intent and purposes herein expressed. The Company shall use its commercially
reasonable efforts to take any and all actions required to cause the Collateral Documents to create and maintain, as security for the Obligations, a valid and enforceable perfected Lien and security interest in and on all of the Collateral (subject
to the terms hereof and of the Collateral Documents), in favor of the Collateral Agent for the benefit of the Secured Parties. 

The Company shall use its commercially reasonable efforts to make all filings (including filings of continuation statements and
amendments to financing 

  
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statements that may be necessary to continue the effectiveness of such financing statements) and take all other actions as are necessary or required by the Collateral Documents to maintain (at
the sole cost and expense of the Company) the security interest created by the Collateral Documents in the Collateral (other than with respect to any Collateral the security interest in which is not required to be perfected or maintained hereunder
or under the Collateral Documents) as a perfected security interest with the priority set forth in the Collateral Documents. 

(c) Each Holder, by accepting such Security, agrees to all of the terms and provisions of the Collateral Documents, the execution and
delivery of each such Collateral Document by the Trustee and by the Collateral Agent (including the provisions providing for the possession, use, release and foreclosure of Collateral) as the same may be in effect or may be amended from time to time
in accordance with their terms and this Indenture, and authorizes and directs the Collateral Agent to enter into the Collateral Documents and to perform its obligations and exercise its rights thereunder in accordance therewith. 

9.02 OPINIONS OF COUNSEL. 
 The Company shall furnish to the Trustee and the Collateral Agent: 

(a) at the time when this Indenture is qualified under the TIA, Opinion(s) of Counsel to the effect that, in the opinion
of such counsel, this Indenture and the grant of a Security Interest in the Collateral intended to be made by each Collateral Document and all other instruments of further assurance or assignment have been properly recorded and filed to the extent
necessary to perfect the security interests created by each such Collateral Document; 
 (b) following
qualification of this Indenture under the TIA, within 30 days after February 1 in each year, beginning with March 1, 2012, Opinion(s) of Counsel, dated as of such date, either (1) to the effect that in the opinion of such counsel,
such action has been taken with respect to the recordings, filings, re-recordings, and refilings of all financing statements, continuation statements or other instruments of further assurance as is necessary to maintain the security interests of
each of the Collateral Documents or (2) to the effect that, in the opinion of such counsel, no such action is necessary to maintain such security interests. 
 9.03 APPLICATION OF PROCEEDS OF COLLATERAL. 
 Subject to the terms of the Pledge and Security Agreement and any other Collateral Documents, upon any realization upon the Collateral, the proceeds thereof shall be applied in accordance with
Section 6.10 hereof. 
 9.04 ADDITIONAL COLLATERAL. 

(A) Within 60 days following the end of each fiscal quarter, commencing with June 30, 2011, the Company shall (i) notify the
Collateral Agent in writing, at the sole cost and expense of the Company, if any Obligor acquires any assets with a Fair Market 

  
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Value individually in excess of $500,000 that would constitute Collateral (other than real property, which shall be the subject of Section 9.04(B)) that are not otherwise
automatically subject to a perfected security interest under the Collateral Documents and (ii) to the extent applicable, shall within 60 days of delivery of the notice specified in the foregoing clause (i), and to the extent required hereunder
and under the Collateral Documents, execute and deliver to the Collateral Agent such security agreement supplements and other documentation (in form and scope, and covering such additional Collateral on terms consistent with the Pledge and Security
Agreement and other Collateral Documents in effect on the Issue Date, and take such additional actions as are necessary to create and fully perfect (except to the extent perfection is not required hereunder or thereunder)) in favor of the Collateral
Agent for the benefit of the Secured Parties a valid and enforceable security interest in such Collateral, which shall be free of any other Liens except for Permitted Liens. Any security interest provided pursuant this Section 9.03(A)
shall be accompanied by such Opinions of Counsel to the Company as customarily given by counsel in the relevant jurisdiction. 

(B) If the Company or any Guarantor (i) owns, on the Issue Date, any fee interest in any land and the related improvements
(including fixtures) thereon with a Fair Market Value that exceeds $2,500,000 or (ii) acquires, after the Issue Date, any fee interest in any land and the related improvements (including fixtures) thereon with a Fair Market Value that exceeds
$2,500,000 (such interests in clause (i) and (ii) above, the “Premises”), then within 90 days of the Issue Date or the date of acquisition of such land and related improvements, as applicable, to the extent such property
does not constitute Excluded Assets: 
 (i) the Company or such Guarantor shall deliver to the Collateral Agent,
as mortgagee, fully executed counterparts of Mortgages, each dated as of the Issue Date, the date of acquisition of such Premises or such later date specified above, as the case may be, duly executed by the Company or the applicable Guarantor,
together with related opinions and evidence of the completion (or satisfactory arrangements for the completion) of all recordings and filings of such Mortgage as may be necessary to create a valid, perfected Lien, subject to Permitted Liens, against
the properties purported to be covered thereby; 
 (ii) the Company or such Guarantor shall deliver to the
Collateral Agent mortgagee’s title insurance policies in favor of the Collateral Agent, as mortgagee for the benefit of the Secured Parties, in an amount equal to 100% of the Fair Market Value of the Premises purported to be covered by the
related Mortgage, insuring that title to such property is marketable and that the interests created by the Mortgage constitute valid Liens thereon free and clear of all Liens, defects and encumbrances other than Permitted Liens; and 

(iii) the Company or such Guarantor shall deliver to the Collateral Agent, with respect to each of the covered Premises,
the most recent survey of such Premises, together with either (i) an updated survey certification in favor of the Collateral Agent from the applicable surveyor stating that, based on a 

  
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visual inspection of the property and the knowledge of the surveyor, there has been no change in the facts depicted in the survey; or (ii) an affidavit or indemnity from the Company or the
applicable Guarantor, as the case may be, stating that to its knowledge, there has been no change in the facts depicted in the survey, other than, in each case, changes that do not materially adversely affect the use by the Company or Guarantor, as
applicable, of such Premises for the Company’s or such Guarantor’s business as so conducted, or intended to be conducted, at such Premises and in each case, in form sufficient for the title insurer issuing the title policy to remove the
standard survey exception from such policy and provide survey coverage to such policy. 
 Notwithstanding anything herein to the
contrary, the Trustee makes no representation as to the validity, adequacy or sufficiency of the documents listed in clauses (i), (ii) or (iii) of this Section 9.03(B) and assumes no responsibility for their
correctness. 
 (C) Upon payment of the Company’s final payment under the Makena Agreement, the Company shall promptly (and
in any event within 15 days following termination or expiration of the Makena Agreement) grant to the Collateral Agent, for the benefit of the Secured Parties, a first priority security interest (subject to Permitted Liens) in all of the
Company’s interests in Makena. 
 9.05 RELEASE OF COLLATERAL. 

(a) The Collateral Agent’s Liens upon the Collateral will no longer secure the Securities and Guarantees thereof outstanding under
this Indenture or any other Obligations under this Indenture, and the right of the Holders of the Securities and such Obligations to the benefits and proceeds of the Collateral Agent’s Liens on the Collateral will terminate and be automatically
discharged without further action by the Trustee, the Collateral Agent or any other Person: 
 (1) in part, as to
all property subject to such Liens which has been taken by eminent domain, condemnation or other similar circumstances; 
 (2) in whole, upon: 
 (A) payment in full of the principal of,
accrued and unpaid interest and premium, if any, on the Securities, any payment of all other Obligations hereunder or under any Collateral Documents; or 
 (B) satisfaction and discharge of this Indenture as set forth in Article X hereof; or 
 (C) legal defeasance or covenant defeasance of this Indenture as set forth in Article X hereof; 
 (3) in part, as to any property that (A) is sold, transferred or otherwise disposed of by the Company or one of its Restricted Subsidiaries in a transaction not

  
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prohibited by this Indenture, at the time of such sale, transfer or disposition, to the extent of the interest sold, transferred or disposed of or (B) is owned or at any time acquired by a
Guarantor that has been released from its Guarantee of the Securities, concurrently with the release of such Guarantee; 
 (4) in part, as to any property that constitutes all or substantially all of the Collateral securing the Securities Obligations, with the consent of Holders of 75% in aggregate principal amount of the
Securities (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, Securities); or 
 (6) in part, as to any property that constitutes less than substantially all of the Collateral securing the Securities Obligations, with the consent of Holders of a majority in aggregate principal amount
of the Securities (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, Securities). 
 (b) To the extent applicable and where necessary to comply with §314(c) of the TIA, the Company and each Guarantor will furnish to the Trustee, prior to each proposed release of Collateral pursuant
to the Collateral Documents and this Indenture: 
 (A) an Officers’ Certificate requesting such release; 

(B) an Officers’ Certificate and an Opinion of Counsel to the effect that all conditions precedent provided for in this Indenture
and the Collateral Documents to such release have been complied with; 
 (C) where applicable, a certificate or opinion of an
accountant verifying such conditions precedent that are subject to verification by an accountant; and 
 (D) a form of such
release (which release shall be in form reasonably satisfactory to the Trustee and shall provide that the requested release is without recourse or warranty to the Trustee). 
 Upon compliance by the Company or the Guarantors, as the case may be, with the conditions precedent set forth above, and upon delivery by the Company or such Guarantor to the Trustee of an Opinion of
Counsel to the effect that such conditions precedent have been complied with, the Trustee or the Collateral Agent shall promptly execute and deliver such documents as are provided to the Trustee or the Collateral Agent to cause to be released and
reconveyed to the Company, or the Guarantors, as the case may be, the released Collateral. 
 (c) The release of any Collateral
from the terms of the Collateral Documents will not be deemed to impair the security under this Indenture in contravention of the provisions hereof or affect the Lien of this Indenture or the Collateral Documents if and to the extent the Collateral
is released pursuant to this Indenture, the Collateral Documents or upon the termination of this Indenture. 

  
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 9.06 SUITS TO PROTECT THE
COLLATERAL. 
 Subject to the provisions of the Collateral Documents and without limiting the obligations of
the Company to protect the security interest of the Collateral Agent in the Collateral, the Trustee shall have the authority (but not the obligation) to direct the Collateral Agent to institute and to maintain such suits and proceedings as to
prevent any impairment of the Collateral by any acts which may be unlawful or in violation of any of the Collateral Documents or this Indenture, and such suits and proceedings to preserve or protect its interests and the interests of any Holder in
the Collateral (including suits or proceedings to restrain the enforcement of or compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid if the enforcement of, or compliance
with, such enactment, rule or order would impair the Liens or be prejudicial to the interests of the Holders). 
 9.07 CERTAIN
TIA REQUIREMENTS. 
 Following the qualification of this Indenture under the TIA, to the extent applicable,
and in addition to any other requirements under this Indenture, the Company will cause §313(b) of the TIA (relating to reports) and §314(d) of the TIA (relating to the release of property or securities from the Liens or relating to the
substitution for such Liens of any property or securities to be subjected to the Liens) to be complied with and will furnish to the Trustee, prior to each proposed release of Collateral pursuant to this Indenture and the Collateral Documents, all
documents required by §314(d) of the TIA. 
 9.08 USE OF COLLATERAL.

Subject to the terms of this Indenture and the Collateral Documents, the Company and each Guarantor shall have the right to remain in
possession and retain exclusive control of the Collateral, to freely operate the Collateral and to collect, invest and dispose of any income therefrom. 
 X. DISCHARGE AND DEFEASANCE OF INDENTURE 
 10.01 LEGAL
DEFEASANCE AND COVENANT DEFEASANCE. 
 (A) The Company may, at
its option and at any time, elect to have either Section 10.01(B) or Section 10.01(C) apply to the outstanding Securities upon compliance with the applicable conditions set forth in Section 10.01(D). 

(B) Upon the Company’s exercise under Section 10.01(A) of the option applicable to this Section 10.01(B), the Company
and the Guarantors shall be deemed to have been released and discharged from their obligations with respect to the outstanding Securities on the date the applicable conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Securities, which shall thereafter be deemed to be outstanding
only for the purposes of the Sections and matters under this Indenture referred to in clauses (i) and (ii)

  
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below, and to have satisfied all their other obligations under such Securities and this Indenture insofar as such Securities are concerned, except for the following which shall survive until
otherwise terminated or discharged hereunder: (i) the rights of Holders of outstanding Securities to receive solely from the Trust Fund described in Section 10.01(D) and as more fully set forth in Section 10.01(D) payments in
respect of the principal of, and premium, if any, interest on such Securities when such payments are due and (ii) Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.10, 2.15,
2.16, 2.17, 3.05, 3.06, 4.01, 4.02, 4.05, 7.07 and 7.08 and Article X. The Company may exercise its option under this Section 10.01(B) notwithstanding the prior exercise of
its option under Section 10.01(C) below with respect to the Securities. 
 (C) Upon the Company’s exercise, under
Section 10.01(A) of the option applicable to this Section 10.01(C), the Company and its Restricted Subsidiaries shall be released and discharged from their obligations under any covenant contained in Section 5.01(C),
Section 4.03 and Sections 4.08 through 4.27, inclusive, with respect to the outstanding Securities on and after the date the conditions set forth below are satisfied (a “Covenant Defeasance”), and the
Securities shall thereafter be deemed to be not “outstanding” for the purpose of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to
be deemed “outstanding” for all other purposes hereunder. For this purpose, such Covenant Defeasance means that, with respect to the outstanding Securities, the Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any
other document and such omission to comply shall not constitute a Default or an Event of Default, but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby. 

(D) The following shall be the conditions to application of either Section 10.01(B) or Section 10.01(C) to the outstanding
Securities: 
 (i) the Company shall have irrevocably deposited with the Trustee, in trust, for the benefit of the Holders, U.S.
Legal Tender or non-callable U.S. Government Obligations or a combination thereof (collectively, the “Trust Funds”), in such amounts and at such times as are sufficient, in the opinion of a nationally recognized firm of independent
public accountants, to pay the principal of, and premium, if any, and interest on the outstanding Securities on the stated dates for payment or Redemption, as the case may be; 
 (ii) in the case of Legal Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel that the Company has received from, or there has been published by, the Internal Revenue Service
a ruling, or since the Issue Date, there has been a change in the applicable federal income tax law, in either case to the effect that the Holders and beneficial owners will not recognize income, gain or loss for federal income tax purposes as a
result of such Legal Defeasance and will be subject 

  
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to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

(iii) in the case of Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel that the Holders and
beneficial owners will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have
been the case if such Covenant Defeasance had not occurred; 
 (iv) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit pursuant to Section 10.01(D)(i) (except such Default or Event of Default resulting the borrowing of funds required to effect such deposit); 

(v) such Legal Defeasance or Covenant Defeasance shall not result in a breach of, or constitute a default under any other material
agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound; 
 (vi) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders over any other creditors
of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others; and 
 (vii) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance
or the Covenant Defeasance, as applicable, have been complied with. 
 10.02 TERMINATION OF THE
OBLIGATIONS OF THE COMPANY; SATISFACTION AND DISCHARGE. 
 This Indenture shall cease to be of further effect if (a) either (i) all outstanding Securities (other than Securities replaced pursuant to Section 2.07 hereof) have been delivered to the
Trustee for cancellation or (ii) all outstanding Securities have become due and payable at their scheduled maturity or upon Redemption, Repurchase Upon Asset Sale or Repurchase Upon Fundamental Change, or will become due and payable at maturity
within one year or will be redeemed within one year on terms reasonably acceptable to the Trustee and in any case the Company has irrevocably deposited with the Trustee or the Paying Agent (if the Paying Agent is not the Company or any of its
Affiliates) Trust Funds in such amounts and at such times as are sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, and premium, if any, and interest on the outstanding Securities
on the stated dates for payment or Redemption, as the case may be, sufficient to pay all amounts due and owing on all outstanding Securities (other than Securities replaced pursuant to Section 2.07 

  
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hereof) on the Maturity Date or a Redemption Date, Asset Sale Repurchase Date or Fundamental Change Repurchase Date, as the case may be; (b) the Company has paid to the Trustee all other
sums payable hereunder by the Company; (c) no Default or Event of Default with respect to the Securities shall exist on the date of such deposit; (d) such deposit will not result in a breach or violation of, or constitute a Default or
Event of Default under, this Indenture (other than as a result of the borrowing to fund such deposit) or any other agreement or instrument to which the Company is a party or by which it is bound; and (e) the Company has delivered to the Trustee
an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for herein relating to the satisfaction and discharge of this Indenture have been complied with; provided, however, that
Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.10, 2.15, 2.16, 2.17, 4.01, 4.02, 4.05, 7.07 and 7.08 and Article X and shall
survive any discharge of this Indenture until such time as the Securities have been paid in full and there are no Securities outstanding. Thereafter the Company’s obligations in Sections 7.07 and 7.08 and Article X shall survive.

 10.03 APPLICATION OF TRUST MONEY. 

The Trustee shall hold in trust all money deposited with it pursuant to Section 10.02 and shall apply such deposited money through
the Paying Agent and in accordance with this Indenture to the payment of amounts due on the Securities. 
 10.04 REPAYMENT
TO COMPANY. 
 The Trustee and the Paying Agent shall promptly notify the Company of, and pay
to the Company upon the request of the Company, any excess money held by them at any time. Subject to any applicable abandonment laws, the Trustee and the Paying Agent shall pay to the Company upon the written request of the Company any money held
by them for the payment of the principal of, premium, if any, or any accrued and unpaid interest on, the notes that remains unclaimed for two years; provided, however, that the Trustee or such Paying Agent, before being required to
make any such repayment, may, at the expense of the Company, cause to be published once in a newspaper of general circulation in the City of New York or cause to be mailed to each Holder, notice stating that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the date of such publication or mailing, any unclaimed balance of such money then remaining will be repaid to the Company. After payment to the Company, Securityholders
entitled to the money must look to the Company for payment as general creditors, subject to applicable law, and all liability of the Trustee and the Paying Agent with respect to such money and payment shall, subject to applicable law, cease.

 10.05 REINSTATEMENT. 
 If the Trustee or Paying Agent is unable to apply any money in accordance with Sections 10.01, 10.02 and 10.03 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 obligations of the Company under this 

  
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Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Sections 10.01, 10.02 and 10.03; provided, however,
that if the Company has made any payment of amounts due with respect to any Securities because of the reinstatement of its obligations, then the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from
the money held by the Trustee or Paying Agent. 
 XI. AMENDMENTS 
 11.01 WITHOUT CONSENT OF HOLDERS. 
 The Company and the Guarantors, and the Trustee and the Collateral Agent, if applicable, may amend or supplement this Indenture, the Securities or the Collateral Documents without notice to or the consent
of any Securityholder: 
 (i) to comply with Section 5.01; 

(ii) to make any changes or modifications to this Indenture necessary in connection with any registration statement filed
pursuant to Section 4.22 or the qualification of this Indenture under the TIA; 
 (iii) to provide
additional security for the obligations of the Company in respect of the Securities; 
 (iv) to comply with
Section 8.05 or Section 9.04; 
 (v) to make such changes as are necessary in connection
with any addition or release of Collateral permitted under this Indenture or the Collateral Documents; 
 (vi) to
release a Guarantor as permitted under this Indenture; 
 (vii) to add to the covenants of the Company described
in this Indenture for the benefit of Securityholders or to surrender any right or power conferred upon the Company; and 
 (viii) to cure any ambiguity, defect, omission or inconsistency in this Indenture, the Securities or the Collateral Documents. 
 Promptly after an amendment, supplement or waiver under this Section 11.01 becomes effective, the Company shall mail, or cause to be mailed, to the Securityholders a notice briefly describing such
amendment, supplement or waiver. Any failure of the Company to mail such notice shall not in any way impair or affect the validity of such amendment, supplement or waiver. 

  
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 11.02 WITH CONSENT OF HOLDERS.

 The Company, and the Guarantors, and the Trustee and Collateral Agent, if applicable, may amend or supplement this Indenture,
the Securities or Collateral Documents without notice to any Securityholder but with the written consent of the Holders of at least a majority in aggregate principal amount of the outstanding Securities. Subject to Sections 6.04 and 6.07, the
Holders of a majority in aggregate principal amount of the outstanding Securities may, by notice to the Trustee, waive compliance by the Company with any provision of this Indenture, the Collateral Documents or the Securities without notice to any
other Securityholder. Notwithstanding anything herein to the contrary, without the consent of each Holder of each outstanding Security affected, an amendment, supplement or waiver, including a waiver pursuant to Section 6.04, may not:

 (i) change the stated maturity of the principal of, or the payment date of any installment of interest on, any
Security; 
 (ii) reduce the principal amount of, or any premium, interest on, any Security; 

(iii) change the place, manner or currency of payment of principal of, or any premium, interest on, any Security;

 (iv) impair the right to institute suit for the enforcement of any payment on, or with respect to, any
Security; 
 (v) modify, in a manner adverse to Holders, the provisions with respect to the right of Holders
pursuant to Article III to require the Company to repurchase Securities once the obligation to repurchase has occurred; 
 (vi) modify the provisions of Section 2.19 in a manner adverse to Holders; 
 (vii) reduce the percentage of the aggregate principal amount of the outstanding Securities whose Holders must consent to a modification to or amendment of any provision of this Indenture or the
Securities; 
 (viii) release any Guarantor from any of its obligations under its Subsidiary Guarantee, this
Indenture or the Securities, otherwise than in accordance with the terms of this Indenture; 
 (ix) reduce the
percentage of the aggregate principal amount of the outstanding Securities whose Holders must consent to a waiver of compliance with any provision of this Indenture or the Securities or a waiver of any Default or Event of Default; or 

(x) modify the provisions of this Indenture with respect to modification and waiver (including waiver of a Default or an
Event of 

  
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Default), except to increase the percentage required for modification or waiver or to provide for the consent of each affected Holder. 

In addition, without the consent of the Holders of at least 75% of the aggregate principal amount of the outstanding Securities, an
amendment, supplement or waiver, including a waiver pursuant to Section 6.04, may not permit the release of all or substantially all of the Collateral, other than in accordance with the terms of the Collateral Documents or this Indenture.

 Promptly after an amendment, supplement or waiver under this Section 11.02 becomes effective, the Company shall mail,
or cause to be mailed, to Securityholders a notice briefly describing such amendment, supplement or waiver. Any failure of the Company to mail such notice shall not in any way impair or affect the validity of such amendment, supplement or waiver.

 It shall not be necessary for the consent of the Holders under this Section 11.02 to approve the particular form of
any proposed amendment, supplement or waiver, but it shall be sufficient if such consent approves the substance thereof. 
 11.03
COMPLIANCE WITH TRUST INDENTURE ACT. 
 Every
amendment, waiver or supplement to this Indenture or the Securities shall comply with the TIA as then in effect. 
 11.04
REVOCATION AND EFFECT OF CONSENTS. 
 Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s
Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as to its Security or portion of a Security if the Trustee receives the notice of revocation before the date
the amendment, supplement or waiver becomes effective. An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder. 
 After an amendment, supplement or waiver becomes effective with respect to the Securities, it shall bind every subsequent Holder. 
 11.05 NOTATION ON OR EXCHANGE OF SECURITIES. 

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

  
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 11.06 TRUSTEE PROTECTED. 

The Trustee shall sign any amendment, supplemental indenture or waiver authorized pursuant to this Article XI; provided,
however, that the Trustee need not sign any amendment, supplement or waiver authorized pursuant to this Article XI that adversely affects the Trustee’s rights, duties, liabilities or immunities. The Trustee shall be entitled to
receive and conclusively rely upon an Opinion of Counsel as to legal matters and an Officers’ Certificate as to factual matters that any supplemental indenture, amendment or waiver is permitted or authorized pursuant to this Indenture and that
all conditions precedent thereto have been satisfied. 
 XII. MISCELLANEOUS 

12.01 TRUST INDENTURE ACT CONTROLS. 

If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision of the TIA shall control. 
 12.02 NOTICES. 

Any notice or communication will be deemed if given in writing (i) when delivered in person or when sent by telecopy or electronic
mail, (ii) five days after mailing if mailed by first-class mail, (iii) the next Business Day when sent by next day express delivery to the other party’s address stated in this Section 12.02. The Company or the Trustee by
notice to the other may designate additional or different addresses for subsequent notices or communications. 
 Any notice or
communication to a Holder shall be mailed by first class mail to its address shown on the register kept by the Registrar or in any other manner that is in accordance with the procedures of the Depositary. Failure to mail a notice or communication to
a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. 
 If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
 If the Company mails a
notice or communication to Holders, it shall mail a copy to the Trustee and each Securities Agent at the same time. 
 Notices
or communications to a Guarantor will be deemed given if given to the Company. 

  
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 The Company’s address is: 

K-V Pharmaceutical Company 
 One Corporate Woods Drive 
 Bridgeton, MO 63044 

Attn: Chief Financial Officer 
 Fax: (314) 646-3751 
 The Trustee’s address is: 

Wilmington Trust FSB 
 50 South Sixth Street, Suite 1290 
 Minneapolis, Minnesota 55402-1544 

Attn: Corporate Capital Markets—K-V Pharmaceutical Administrator 

Fax: (612) 217-5651 
 E-mail: JSchweiger@wilmingtontrust.com 
 12.03 COMMUNICATION BY
HOLDERS WITH OTHER HOLDERS. 
 Holders may communicate pursuant
to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 

12.04 CERTIFICATE AND OPINION AS TO CONDITIONS
PRECEDENT. 
 Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee (upon which the Trustee may rely): 
 (i) an Officers’
Certificate stating that, in the opinion of the signatories to such Officers’ Certificate, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and 

(ii) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied
with. 
 12.05 STATEMENTS REQUIRED IN CERTIFICATE OR
OPINION. 
 Each Officers’ Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include: 
 (i) a statement that the person making such
certificate or opinion has read such covenant or condition; 
 (ii) a brief statement as to the nature and scope
of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

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

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

 Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or
opinion is based are erroneous. Any Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the information with respect
to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 

12.06 RULES BY TRUSTEE AND AGENTS. 

The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules
and set reasonable requirements for their respective functions. 
 12.07 LEGAL HOLIDAYS. 

A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions are not required to be open in the City
of New York, in the State of New York or in the city in which the Trustee administers its corporate trust business. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not
a Legal Holiday, and no interest shall accrue on that payment for the intervening period. If a regular record date is a Legal Holiday, the record date shall not be affected. 
 A “Business Day” is a day other than a Legal Holiday. 
 12.08
DUPLICATE ORIGINALS. 
 The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same agreement. Delivery of an executed counterpart by facsimile shall be effective as delivery of a manually executed counterpart thereof. 

12.09 GOVERNING LAW. 
 The internal laws of the State of New York shall govern this Indenture, including the Subsidiary Guarantor, and the Securities. 

  
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 12.10 NO ADVERSE INTERPRETATION OF
OTHER AGREEMENTS. 
 This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or any of its Subsidiaries. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
 12.11 SUCCESSORS. 
 All agreements of the Company or any
Guarantor in this Indenture and the Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind its successors. 
 12.12 SEPARABILITY. 
 In case any provision in this Indenture
or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and a Holder shall have no claim therefor against any party
hereto. 
 12.13 TABLE OF CONTENTS, HEADINGS, ETC. 

The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof. 
 12.14 CALCULATIONS IN RESPECT OF THE SECURITIES. 

In computing any amounts under this Indenture: (a) to the extent relevant, the Company shall use audited financial statements of the
Company, its Subsidiaries, any Person that would become a Subsidiary in connection with the transaction that requires the computation and any Person from which the Company or a Subsidiary has acquired an operating business, or is acquiring an
operating business in connection with the transaction that requires the computation (each such Person whose financial statements are relevant in computing any particular amount, a “Relevant Person”) for the period or portions of the
period to which the computation relates for which audited financial statements are available on the date of computation and unaudited financial statements and other current financial data based on the books and records of the Relevant Person or
Relevant Persons, as the case may be, to the extent audited financial statements for the period or any portion of the period to which the computation relates are not available on the date of computation; and (b) the Company shall be permitted
to rely in good faith on the financial statements and other financial data derived from the books and records of any Relevant Person that are available on the date of the computation. 

[The Remainder of This Page Intentionally Left Blank; Signature Page Follows] 

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

					
	K-V PHARMACEUTICAL COMPANY
		
	By:	 	/s/ Gregory J. Divis
		 	Name:	 	Gregory J. Divis
		 	Title:	 	President and CEO

  

					
	 NESHER PHARMACEUTICALS INC., AS A
GUARANTOR
 THER-RX CORPORATION, AS A
GUARANTOR
 NESHER SOLUTIONS USA, INC., AS A
GUARANTOR
 NESHER DISCOVERY SOLUTIONS, INC., AS
A GUARANTOR
 DRUGTECH CORPORATION, AS A
GUARANTOR
 ZERATECH TECHNOLOGIES USA, INC., AS A
GUARANTOR
 FP1096, INC., AS A GUARANTOR

		
	By:	 	/s/ Gregory J. Divis
		 	Name:	 	Gregory J. Divis
		 	Title:	 	President

  

					
	 WILMINGTON TRUST FSB,
 AS TRUSTEE

		
	By:	 	/s/ Jane Schweiger
		 	Name:	 	Jane Schweiger
		 	Title:	 	Vice President

 EXHIBIT A 
 [Face of Security] 
 K-V PHARMACEUTICAL COMPANY 

Certificate No.                     

 [INSERT ORIGINAL ISSUE DISCOUNT LEGEND AND, AS REQUIRED, PRIVATE 

PLACEMENT LEGEND AND GLOBAL SECURITY LEGEND] 
 12% Senior Secured Note due 2015 
 CUSIP No.
                     

K-V Pharmaceutical Company, a Delaware corporation (the “Company”), for value received, hereby promises to pay to
Cede & Co., or its registered assigns, the principal sum of up to                      dollars
($            ) (as such amount may be increased or decreased on Schedule A) on March 15, 2015 and to pay interest thereon, as provided on the reverse hereof, until the
principal and any unpaid and accrued interest are paid or duly provided for. 
 Interest Payment Dates: March 15 and
September 15, with the first payment to be made on September 15, 2011. 
 Record Dates: March 1 and
September 1. 
 The provisions on the back of this certificate are incorporated as if set forth on the face hereof.

 IN WITNESS WHEREOF, K-V Pharmaceutical Company has caused this instrument to be duly signed. 

 

					
	K-V PHARMACEUTICAL COMPANY
		
	By: 	 	 
		 	Name:	 	
		 	Title:	 	

 Dated:
                     

  
 A-1

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

 

			
	This is one of the Securities referred to in the within-mentioned Indenture.
	
	WILMINGTON TRUST FSB, as Trustee
		
	By:	 	 
		 	Authorized Signatory

 Dated:
                     

  
 A-2

 [REVERSE OF SECURITY] 

K-V PHARMACEUTICAL COMPANY 
 12% Senior Secured Note due 2015 
 1. Interest. K-V Pharmaceutical
Company, a Delaware corporation (the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum equal to 12%, plus, if applicable, interest on defaulted interest as provided in
Section 2.12 of the Indenture referred to below. The Company will pay interest, payable semi-annually in arrears, on March 15 and September 15 of each year, with the first payment to be made on September 15, 2011. Interest on
the Securities will accrue on the principal amount from, and including, the most recent date to which interest has been paid or, if no interest has been paid, from, and including, March 17, 2011, in each case to, but excluding, the next
interest payment date or Maturity Date, as the case may be. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
 2. Maturity. The Securities will mature on March 15, 2015. 
 3.
Method of Payment. Except as provided in the Indenture (as defined below), the Company will pay interest on the Securities to the persons who are Holders of record of Securities at the close of business on the record date set forth on the
face of this Security next preceding the applicable interest payment date. Holders must surrender Securities to a Paying Agent to collect the principal amount, Redemption Price, Asset Sale Repurchase Price or Fundamental Change Repurchase Price of
the Securities, plus, if applicable, accrued and unpaid interest, if any, payable as herein provided upon Redemption, Repurchase Upon Asset Sale or Repurchase Upon Fundamental Change, as the case may be. The Company will pay, in money of the United
States that at the time of payment is legal tender for payment of public and private debts, all amounts due in cash with respect to the Securities, which amounts shall be paid (A) in the case this Security is in global form, by wire transfer of
immediately available funds to the account designated by the Depositary or its nominee; (B) in the case of a Security that is held, other than global form, by a Holder of more than $10,000,000 in aggregate principal amount of Securities, by
wire transfer of immediately available funds to the account specified by such Holder or, if such Holder does not specify an account, by mailing a check to the address of such Holder set forth in the register of the Registrar; and (C) in the
case of a Security that is held, other than global form, by a Holder of $5,000,000 or less in aggregate principal amount of Securities, by mailing a check to the address of such Holder set forth in the register of the Registrar. 

4. Paying Agent and Registrar. Initially, Wilmington Trust FSB (the “Trustee”) will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice. 
 5. Indenture. The Company issued the
Securities under an Indenture dated as of March 17, 2011 (the “Indenture”), between the Company the Guarantors party thereto from time to time and the Trustee. To the extent any of the terms of this Security conflict with the
provisions of the Indenture, the provisions of the Indenture shall govern. The terms of the 

  
 A-3

 
Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the
“TIA”) as amended and in effect from time to time. The Securities are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent permitted by applicable law, in the
event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture will govern. The Securities are general senior obligations of the Company limited to $225,000,000 aggregate principal amount,
except as otherwise provided in the Indenture (except for Securities issued in substitution for destroyed, mutilated, lost or stolen Securities). Terms used herein without definition and which are defined in the Indenture have the meanings assigned
to them in the Indenture. 
 6. Redemption. 

The Company shall have the right, at the Company’s option, at any time, and from time to time, on a Redemption Date
on or after March 15, 2013, to redeem all or any part of the Securities at a price payable in cash equal to the Optional Redemption Price plus (subject to Section 3.01(G) of the Indenture) accrued and unpaid interest, if any, to, but
excluding, the Redemption Date. 
 The Company shall have the right, at the Company’s option, at any time,
and from time to time, on a Redemption Date before March 15, 2013, to redeem all or any part of the Securities at a price payable in cash equal to the Provisional Redemption Price plus (subject to Section 3.01(G)) accrued and unpaid
interest, if any, to, but excluding, the Redemption Date. 
 Pursuant to Section 3.01(F) of the Indenture,
the Company shall have the right, at the Company’s option, at any time, and from time to time, on a Redemption Date before March 15, 2013, to redeem all or any part of the Securities at a price payable in cash equal to the Equity Offering
Redemption Price plus (subject to Section 3.01(G) of the Indenture) accrued and unpaid interest, if any, to, but excluding, the Redemption Date; provided, however, that no such Redemption shall be made pursuant to Section
3.01(F) of the Indenture unless: 
 (i) such Equity Offering Redemption Price and accrued and unpaid interest
are paid solely from the proceeds of one or more Equity Offerings; 
 (ii) the aggregate principal amount of
Securities to be redeemed pursuant to such Redemption, when taken together with the aggregate principal amount of Securities theretofore redeemed pursuant to Section 3.01(F) of the Indenture, may in no event exceed 35% of the principal amount
of the Securities initially issued pursuant thereto on the Issue Date; 
 (iii) at least 65% of the original
Securities outstanding immediately prior to such Redemption will remain outstanding immediately after giving effect to such Redemption; and 
 (iv) such Redemption Date cannot occur on a date that is more than 90 days after the date of closing of the earliest Equity Offering the proceeds of which are to be used to pay such Equity Offering
Redemption Price and accrued and unpaid interest. 

  
 A-4

 7. Notice of Redemption. Notice of Redemption will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Securities to be redeemed at its address appearing in the security register. Securities in denominations larger than $2,000 principal amount may be redeemed in part but only in integral
multiples of $1,000 principal amount. 
 8. Repurchase at Option of Holder Upon a Fundamental Change. Subject to the
terms and conditions of the Indenture, in the event of a Fundamental Change, each Holder of the Securities shall have the right, at the Holder’s option, to require the Company to repurchase such Holder’s Securities pursuant to the terms
set forth in the Indenture. 
 9. Repurchase at Option of Holder Upon Certain Asset Sales. Subject to the terms and
conditions of the Indenture, if any Asset Sale shall occur, the Company may elect, or be required, pursuant to Section 3.09 of the Indenture, to make an offer to repurchase Securities at a price, payable in cash, equal to 100% of the
principal amount of the Securities (or portions thereof) to be so repurchased (the “Asset Sale Repurchase Price”), plus accrued and unpaid interest, if any, to, but excluding, the Asset Sale Repurchase Date. 

10. Denominations, Transfer, Exchange. The Securities are in registered form, without coupons, in minimum denominations of $2,000
principal amount and integral multiples of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents. No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or similar governmental charge that may be
imposed in connection with certain transfers or exchanges. The Company or the Trustee, as the case may be, shall not be required to register the transfer of or exchange any Security (i) during a period beginning at the opening of business 15
days before the mailing of a notice of redemption of the Securities selected for Redemption under Section 3.04 of the Indenture and ending at the close of business on the day of such mailing or (ii) for a period of 15 days before
selecting, pursuant to Section 3.03 of the Indenture, Securities to be redeemed or (iii) that has been selected for Redemption or for which a Purchase Notice has been delivered, and not withdrawn, in accordance with the Indenture, except
the unredeemed or unrepurchased portion of Securities being redeemed or repurchased in part. 
 11. Persons Deemed
Owners. The registered Holder of a Security may be treated as the owner of such Security for all purposes. 
 12. Merger
or Consolidation. The Company shall not consolidate with, or merge with or into, or sell, transfer, lease, convey or otherwise dispose of all or substantially all of the property or assets of the Company, or of the Company and its Restricted
Subsidiaries taken as a whole, to, another person, whether in a single transaction or series of related transactions, unless the conditions of Section 5.01 of the Indenture are satisfied. 

13. Amendments, Supplements and Waivers. Subject to certain exceptions, the Indenture or the Securities may be amended or
supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the outstanding Securities, and certain 

  
 A-5

 
existing Defaults or Events of Default may be waived with the consent of the Holders of a majority in aggregate principal amount of the Securities then outstanding. In accordance with the terms
of the Indenture, the Company, with the consent of the Trustee, may amend or supplement the Indenture or the Securities without notice to or the consent of any Securityholder as set forth in the Indenture. 

14. Subsidiary Guarantees. Obligations of the Company under the Indenture and the Securities will be guaranteed by certain of the
Company’s Domestic Subsidiaries as provided in Article VIII of the Indenture. 
 15. Security. Obligations of
the Company and the Guarantors under the Indenture and the Securities will be secured as provided in Article IX. 
 16.
[Reserved]. 
 17. Defaults and Remedies. The Indenture contains provisions governing the rights and remedies of
Holders upon an Event of Default. 
 18. Trustee Dealings with the Company. The Trustee under the Indenture, or any
banking institution serving as successor Trustee thereunder, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for, the Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not Trustee. 
 19. No Recourse Against Others. No past, present or future director, officer,
employee or stockholder, as such, of the Company shall have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder, by accepting a Security, waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
 20. Authentication. This Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent in accordance with the Indenture. 

21. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (Uniform Gifts to Minors Act). 

22. Governing Law. THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 THE COMPANY WILL FURNISH TO ANY HOLDER UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE INDENTURE. REQUESTS MAY BE MADE
TO: 
 K-V Pharmaceutical Company 

  
 A-6

 One Corporate Woods Drive 

Bridgeton, MO 63044 

Attention: Chief Financial Officer 

  
 A-7

 [FORM OF ASSIGNMENT] 

 

			
	I or we assign to	  	
		
	 PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER
	  	
		
	_________________________________________	  	
		
	 	  	 
	(please print or type name and address)	  	
		
	 	  	 
		
	 	  	 
	
	the within Security and all rights thereunder, and hereby irrevocably constitute and appoint
		
	 	  	 
	
	Attorney to transfer the Security on the books of the Company with full power of substitution in the premises.
		
	Dated:                            
                                         
    	  	 
		
		  	NOTICE: The signature on this assignment must correspond with the name as it appears upon the face of the within Security in every particular without alteration or enlargement or
any change whatsoever and be guaranteed by a guarantor institution participating in the Securities Transfer Agents Medallion Program or in such other guarantee program acceptable to the Trustee.
	
	Signature
Guarantee:                                       
                                         
                                         
                    

  
 A-8

 In connection with any transfer of this Security occurring prior to the Resale Restriction Termination Date,
the undersigned confirms that it is making, and it has not utilized any general solicitation or general advertising in connection with, the transfer: 
 [Check One] 
  

					
	(1)	 	 ̈	  	to the Company or any Subsidiary thereof, or
			
	(2)	 	 ̈	  	to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) pursuant to, and in compliance with, the exemption from registration
provided by Rule 144A under the Securities Act of 1933, as amended, or
			
	(3)	 	 ̈	  	pursuant to, and in compliance with, an exemption from registration under the Securities Act of 1933, as amended, other than Rule 144A or Rule 144, or
			
	(4)	 	 ̈	  	pursuant to an effective registration statement under the Securities Act of 1933, as amended,

 and, unless the box below is checked, the undersigned confirms that this Security is not being transferred to an “affiliate” of the Company (an “Affiliate”) as defined in Rule
144 under the Securities Act of 1933, as amended: 
  ̈ The transferee is an
Affiliate of the Company. (If the Security is transferred to an Affiliate, the restrictive legend must remain on the Security for at least two (2) years following the date of the transfer.) 

Unless one of the items (1) through (4) is checked, the Trustee will refuse to register any of the Securities evidenced by this certificate in
the name of any person other than the registered Holder thereof; provided, however, that if item (3) is checked, the Company or the Trustee may require, prior to registering any such transfer of the Securities, in their sole
discretion, such written legal opinions, certifications and other information as the Trustee or the Company have reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, as amended. If item (2) is checked, the purchaser must complete the certification below. 
 If none of the foregoing items are checked, the Trustee or Registrar shall not be obligated to register this Security in the name of any person other than the Holder hereof unless and until the conditions
to any such transfer of registration set forth herein and in the Indenture shall have been satisfied. 
  

									
					
	Dated: 	 	 	 		 	Signed: 	 	 
		 		 		 		 	(Sign exactly as name appears on the other side of this Security)

 Signature
Guarantee:                                       
                                         
                                         

  
 A-9

 TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED 

The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule
144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A and acknowledges that the transferor is relying upon the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A. 

									
					
	Dated: 	 	 	 		 		 	 
		 		 		 		 	NOTICE:     To be executed by an executive officer

  
 A-10

 PURCHASE NOTICE 
 Certificate No. of Security:                      

If you want to elect to have this Security purchased by the Company pursuant to Section 3.08 of the Indenture, check the box:  ̈ 
 If you want to elect to have this Security purchased by the Company pursuant to
Section 3.09 of the Indenture, check the box:  ̈ 
 If you want to elect
to have only part of this Security purchased by the Company pursuant to Section 3.08 or Section 3.09 of the Indenture, as applicable, state the principal amount to be so purchased by the Company: 

$                     

 (in an integral multiple of $1,000, subject to a minimum of $2,000) 

									
					
	Date: 	 	 	 		 	Signature(s):	 	 
				
		 		 		 	 
		 		 		 	(Sign exactly as your name(s) appear(s) on the other side of this Security)
			
	 Signature(s) guaranteed by:
	 		 	 
		 		 	(All signatures must be guaranteed by a guarantor institution participating in the Securities Transfer Agents Medallion Program or in such other guarantee program
acceptable to the Trustee.)

  
 A-11

 SCHEDULE A 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY1 

The following exchanges of a part of this Global Security for an interest in another Global Security or for Securities in certificated
form, have been made: 
  

									
	Date of Exchange	  	Amount of Decrease
in Principal Amount
of this Global
Security	  	Amount of Increase
in Principal amount
of this Global
Security	  	 Principal Amount of
this Global

Security Following

such Decrease
 or
Increase
	  	Signature of
Authorized
Signatory of Trustee
or Note Custodian

 
  

	1	 This is included in Global Securities only. 

  
 A-12

 EXHIBIT B-1 
 FORM OF PRIVATE PLACEMENT LEGEND 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER

 [(1) REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE
144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND 

(2) AGREES THAT IT WILL NOT DIRECTLY OR INDIRECTLY ENGAGE IN ANY HEDGING TRANSACTIONS INVOLVING THIS SECURITY UNLESS IN COMPLIANCE
WITH THE SECURITIES ACT, AND]a 

[(3)] AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN
PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) OR
SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER, AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT ONLY 

 

	 	(A)	TO THE COMPANY OR ANY SUBSIDIARY THEREOF, 

  

	 	(B)	OUTSIDE THE UNITED STATES IN ACCORDANCE WITH REGULATION S, 

  

	 	(C)	PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, 

 

	 	(D)	TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, OR 

 

	 	(E)	PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. 

 PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D) ABOVE, A DULY COMPLETED AND SIGNED
CERTIFICATE (THE FORM OF WHICH 
  

	a	 To be included in Rule 144A Note only. 

  
 B-1-1

 
MAY BE OBTAINED FROM THE TRUSTEE) MUST BE DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(E) ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT
TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.
NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 

  
 B-1-2

 EXHIBIT B-2 
 FORM OF LEGEND FOR GLOBAL SECURITY 
 Any Global Security authenticated and
delivered hereunder shall bear a legend (which would be in addition to any other legends required in the case of a Restricted Security) in substantially the following form: 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. THIS SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE. 

  
 B-2-1

 EXHIBIT B-3 
 FORM OF ORIGINAL ISSUE DISCOUNT LEGEND 
 THIS NOTE HAS BEEN ISSUED WITH
“ORIGINAL ISSUE DISCOUNT” (WITHIN THE MEANING OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. UPON WRITTEN REQUEST TO THE CHIEF FINANCIAL OFFICER AT (314) 646-3751 AND ONE CORPORATE WOODS DRIVE, BRIDGETON, MO 63044,
THE COMPANY WILL PROMPTLY MAKE AVAILABLE TO ANY HOLDER OF THIS NOTE THE FOLLOWING INFORMATION: (1) THE ISSUE PRICE AND ISSUE DATE OF THE NOTE, (2) THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE NOTE AND (3) THE YIELD TO MATURITY
ON THE NOTE. 

  
 B-2-1

 EXHIBIT C-1 
 Form of Transferor Certificate in Connection with 
 Transfers Pursuant to
Regulation S 
 K-V Pharmaceutical Company 
 One Corporate Woods Drive 
 Bridgeton, MO 63044 

Attn: Chief Financial Officer 
 Wilmington Trust
FSB 
 50 South Sixth Street, Suite 1290 

Minneapolis, Minnesota 55402-1544 
 Attn:
Corporate Capital Markets—K-V Pharmaceutical Administrator 
  

	 	Re:	K-V Pharmaceutical Company (the “Company”) 12% Senior Secured Notes due 2015 (the “Securities”) 

Ladies and Gentlemen: 
 In
connection with the undersigned’s proposed sale of Securities (the “Proposed Sale”), the undersigned hereby confirms that: 
 1. The offer of the Securities was not made to a person in the United States. 
 2.
Either (1) at the time the buy order was originated, the transferee was outside the United States or the undersigned and any person acting on the undersigned’s behalf reasonably believes that the buyer was outside the United States or
(2) the Proposed Sale is to be executed in, on or through the facilities of a “designated offshore securities market” (within the meaning of Regulation S under the Securities Act of 1933, as amended (the “Securities
Act”)) and neither the undersigned nor any person acting on the undersigned’s behalf knows that the transaction has been pre-arranged with a buyer in the United States. 

3. The offer and sale is not specifically targeted at identifiable groups of U.S. citizens abroad. 

4. No “directed selling efforts” (within the meaning of Regulation S under the Securities Act) were or will be made in the
United States by the undersigned, an affiliate of the undersigned or any person acting on their behalf. 
 5. The Proposed Sale
is not part of a plan or scheme to evade the registration requirements of the Securities Act. 
 6. If the undersigned is an
affiliate of the Company or a distributor of the Securities solely by virtue of being an officer or director thereof, then the undersigned confirms that no 

  
 C-1-1

 
selling concession, fee or other remuneration has been or will be paid in connection with the Proposed Sale other than the usual and customary broker’s commission that would be received by a
person executing such transaction as agent. 
 7. If the Proposed Sale is made before the “distribution compliance
period” (as defined in Regulation S under the Securities Act) has ended, and if the undersigned is a dealer or a person receiving a selling concession, fee or other remuneration in respect of the securities offered or resold, then the
undersigned represents that (1) neither the undersigned nor any person acting on the undersigned’s behalf knows that the offeree or buyer of the securities is a “U.S. person” (as defined in Regulation S under the Securities Act)
and (2) if the undersigned or any person acting on the undersigned’s behalf knows that the purchaser is a dealer or a person receiving a selling concession, fee or other remuneration in respect of the Securities, then the undersigned or a
person acting on the undersigned’s behalf has sent or will send to the purchaser a confirmation or other notice meeting the requirements of Rule 904(b)(2)(ii) of Regulation S under the Securities Act. 

8. The undersigned is not a “distributor” (as defined in Regulation S under the Securities Act) or an affiliate of a
distributor or of the Company (except solely by virtue of being an officer or director thereof) and is not acting on behalf of any of the foregoing or of the Company. 
 You, the Company and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceeding
or official inquiry with respect to the matters covered hereby. 
  

					
	Very truly yours,
	
	[Name of Transferor]
		
	By: 	 	 
		 	Name:	 	
		 	Title:	 	

  
 C-1-2

 EXHIBIT C-2 
 Form of Transferee Certificate in Connection with 
 Transfers Pursuant to
Regulation S 
 K-V Pharmaceutical Company 
 One Corporate Woods Drive 
 Bridgeton, MO 63044 

Attn: Chief Financial Officer 
 Wilmington Trust
FSB 
 50 South Sixth Street, Suite 1290 

Minneapolis, Minnesota 55402-1544 
 Attn:
Corporate Capital Markets—K-V Pharmaceutical Administrator 
  

	 	Re:	K-V Pharmaceutical Company (the “Company”) 12% Senior Secured Notes due 2015 (the “Securities”) 

Ladies and Gentlemen: 
 In
connection with the undersigned’s proposed purchase of Securities (the “Proposed Purchase”), the undersigned hereby confirms that: 
 1. The undersigned was outside the United States at the time the offer of the Securities was made to the undersigned. 
 2. At the time the buy order was originated, the undersigned was outside the United States. 
 3. The Proposed Purchase is not part of a plan or scheme to evade the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). 

You, the Company and others are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof
to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

					
	Very truly yours,
	
	[Name of Transferee]
		
	By: 	 	 
		 	Name:	 	
		 	Title:	 	

  
 C-2-1

 EXHIBIT D 
 Form of Transferor Certificate in Connection with 
 Transfers Pursuant to
Rule 144A 
 K-V Pharmaceutical Company 
 One Corporate Woods Drive 
 Bridgeton, MO 63044 

Attn: Chief Financial Officer 
 Wilmington Trust
FSB 
 50 South Sixth Street, Suite 1290 

Minneapolis, Minnesota 55402-1544 
 Attn:
Corporate Capital Markets—K-V Pharmaceutical Administrator 
  

	 	Re:	K-V Pharmaceutical Company (the “Company”) 12% Senior Secured Notes due 2015 (the “Securities”) 

Ladies and Gentlemen: 
 In
connection with our proposed sale of $              aggregate principal amount at maturity of the Securities, we hereby certify that such transfer is being effected pursuant to and
in accordance with Rule 144A (“Rule 144A”) under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we hereby further certify that the Securities are being
transferred to a person that we reasonably believe is purchasing the Securities for its own account, or for one or more accounts with respect to which such person exercises sole investment discretion, and such person and each such account is a
“qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and such Securities are being transferred in compliance with any applicable blue sky securities laws of any
state of the United States. 
 You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 

 

					
	Very truly yours,
	
	[Name of Transferor]
		
	By: 	 	 
		 	Name:	 	
		 	Title:	 	

  
 D-1

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