Document:

Purchase Contract Agreement

 Exhibit 4.3 
  
  
 AMBAC FINANCIAL GROUP, INC. 
 and 
 THE BANK OF NEW YORK, 
 as Purchase Contract Agent 
 PURCHASE CONTRACT
AGREEMENT 
 Dated as of March 12, 2008 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

			
	Section 1.01.	  	Definitions	  	1
	Section 1.02.	  	Compliance Certificates and Opinions	  	15
	Section 1.03.	  	Form of Documents Delivered to Purchase Contract Agent	  	16
	Section 1.04.	  	Acts of Holders; Record Dates	  	17
	Section 1.05.	  	Notices	  	18
	Section 1.06.	  	Notice to Holders; Waiver	  	19
	Section 1.07.	  	Effect of Headings and Table of Contents	  	20
	Section 1.08.	  	Successors and Assigns	  	20
	Section 1.09.	  	Separability Clause	  	20
	Section 1.10.	  	Benefits Of Agreement	  	20
	Section 1.11.	  	Governing Law; Waiver of Trial by Jury	  	20
	Section 1.12.	  	Legal Holidays	  	21
	Section 1.13.	  	Counterparts	  	21
	Section 1.14.	  	Inspection of Agreement	  	21
	Section 1.15.	  	Appointment of Financial Institution as Agent for the Company	  	21
	Section 1.16.	  	No Waiver	  	21
	
	 ARTICLE 2
 CERTIFICATE FORMS

			
	Section 2.01.	  	Forms of Certificates Generally	  	22
	Section 2.02.	  	Form of Purchase Contract Agent’s Certificate of Authentication	  	22
	
	 ARTICLE 3
 THE UNITS

			
	Section 3.01.	  	Amount; Form and Denominations	  	22
	Section 3.02.	  	Rights and Obligations Evidenced by the Certificates	  	23
	Section 3.03.	  	Execution, Authentication, Delivery and Dating	  	24
	Section 3.04.	  	Temporary Certificates	  	24
	Section 3.05.	  	Registration; Registration of Transfer and Exchange	  	25
	Section 3.06.	  	Book-Entry Interests	  	26
	Section 3.07.	  	Notices to Holders	  	27
	Section 3.08.	  	Appointment of Successor Depositary	  	27
	Section 3.09.	  	Definitive Certificates	  	28
	Section 3.10.	  	Mutilated, Destroyed, Lost and Stolen Certificates	  	28
	Section 3.11.	  	Persons Deemed Owners	  	30
	Section 3.12.	  	Cancellation	  	30
	Section 3.13.	  	Creation of Treasury Units by Substitution of Treasury Securities	  	31
	Section 3.14.	  	Recreation of Corporate Units	  	33

  

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 TABLE OF CONTENTS 
 (Continued) 
  

					
	 	  	 	  	Page
	Section 3.15.	  	Transfer of Collateral upon Occurrence of Termination Event	  	35
	Section 3.16.	  	No Consent to Assumption	  	35
	
	ARTICLE 4
	THE APPLICABLE OWNERSHIP INTERESTS IN SENIOR NOTES AND APPLICABLE
OWNERSHIP INTERESTS IN THE TREASURY PORTFOLIO
			
	Section 4.01.	  	Interest Payments; Rights to Interest Payments Preserved	  	36
	Section 4.02.	  	Notice and Voting	  	37
	
	ARTICLE 5
	THE PURCHASE CONTRACTS
			
	Section 5.01.	  	Purchase of Shares of Common Stock	  	38
	Section 5.02.	  	Remarketing; Put Right; Cash Settlement; Payment of Purchase Price	  	40
	Section 5.03.	  	Issuance of Shares of Common Stock or Series A Preferred Stock	  	46
	Section 5.04.	  	Adjustment of Each Fixed Settlement Rate	  	47
	Section 5.05.	  	Notice of Adjustments and Certain Other Events	  	58
	Section 5.06.	  	Termination Event; Notice	  	59
	Section 5.07.	  	Early Settlement	  	60
	Section 5.08.	  	Purchase of Shares of Series A Preferred Stock	  	63
	Section 5.09.	  	No Fractional Shares	  	63
	Section 5.10.	  	Charges and Taxes	  	63
	Section 5.11.	  	Contract Adjustment Payments	  	64
	
	ARTICLE 6
	REMEDIES
			
	Section 6.01.	  	Unconditional Right of Holders to Receive Contract Adjustment Payments and To Purchase Shares of Common Stock or Series A Preferred Stock	  	69
	Section 6.02.	  	Restoration of Rights and Remedies	  	69
	Section 6.03.	  	Rights and Remedies Cumulative	  	69
	Section 6.04.	  	Delay or Omission Not Waiver	  	70
	Section 6.05.	  	Undertaking for Costs	  	70
	Section 6.06.	  	Waiver of Stay or Extension Laws	  	70
	
	ARTICLE 7
	THE PURCHASE CONTRACT AGENT
			
	Section 7.01.	  	Certain Duties and Responsibilities	  	70
	Section 7.02.	  	Notice of Default	  	71
	Section 7.03.	  	Certain Rights of Purchase Contract Agent	  	72
	Section 7.04.	  	Not Responsible for Recitals or Issuance of Units	  	73

  

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 TABLE OF CONTENTS 
 (Continued) 
  

					
	 	  	 	  	Page
	Section 7.05.	  	May Hold Units	  	73
	Section 7.06.	  	Money Held in Custody	  	74
	Section 7.07.	  	Compensation and Reimbursement	  	74
	Section 7.08.	  	Corporate Purchase Contract Agent Required, Eligibility	  	75
	Section 7.09.	  	Resignation and Removal; Appointment of Successor	  	75
	Section 7.10.	  	Acceptance of Appointment by Successor	  	76
	Section 7.11.	  	Merger, Conversion, Consolidation or Succession to Business	  	77
	Section 7.12.	  	Preservation of Information; Communications to Holders	  	77
	Section 7.13.	  	No Obligations of Purchase Contract Agent	  	77
	Section 7.14.	  	Tax Compliance	  	78
	
	ARTICLE 8
	SUPPLEMENTAL AGREEMENTS
			
	Section 8.01.	  	Supplemental Agreements Without Consent of Holders	  	79
	Section 8.02.	  	Supplemental Agreements With Consent of Holders	  	79
	Section 8.03.	  	Execution of Supplemental Agreements	  	80
	Section 8.04.	  	Effect of Supplemental Agreements	  	80
	Section 8.05.	  	Reference to Supplemental Agreements	  	81
	
	ARTICLE 9
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
			
	Section 9.01.	  	Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except Under Certain Conditions	  	81
	Section 9.02.	  	Rights and Duties of Successor Corporation	  	81
	Section 9.03.	  	Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent	  	82
	
	ARTICLE 10
	COVENANTS
			
	Section 10.01.	  	Performance under Purchase Contracts	  	82
	Section 10.02.	  	Maintenance of Office or Agency	  	82
	Section 10.03.	  	Company to Reserve Common Stock	  	83
	Section 10.04.	  	Covenants as to Common Stock and Series A Preferred Stock	  	83
	Section 10.05.	  	Statements of Officers of the Company as to Default	  	83
	Section 10.06.	  	ERISA	  	84
	Section 10.07.	  	Tax Treatment	  	84
	Section 10.08.	  	Listing	  	84

  

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 TABLE OF CONTENTS 
 (Continued) 
 EXHIBITS 
 Exhibit A - Form of Corporate Units Certificate 
 Exhibit B - Form of Treasury Units Certificate 
 Exhibit C - Instruction to Purchase Contract Agent 
 Exhibit D -
Notice from Purchase Contract Agent to Holders 
 Exhibit E - Notice to Settle by Separate Cash 
 Exhibit F - Notice from Purchase Contract Agent to Collateral Agent 
  

 -iv- 

 PURCHASE CONTRACT AGREEMENT, dated as of March 12, 2008, between AMBAC FINANCIAL GROUP, INC., a
Delaware corporation (the “Company”), and THE BANK OF NEW YORK, a New York banking corporation, acting as purchase contract agent for, and as attorney-in-fact of, the Holders of Units (as defined herein) from time to time (in such
capacities, together with its successors and assigns in such capacities, the “Purchase Contract Agent”). 
 RECITALS

 WHEREAS, the Company has duly authorized the execution and delivery of this Agreement and the Certificates evidencing the Units; and

 WHEREAS, all things necessary to make the Purchase Contracts (as defined herein) the valid obligations of the Company, when the
Certificates (as defined herein) are executed by the Company and authenticated, executed on behalf of the Holders and delivered by the Purchase Contract Agent, as provided in this Agreement, in accordance with its terms, have been done. 

For and in consideration of the premises and the purchase of the Units by the Holders thereof, it is mutually agreed as follows: 
 ARTICLE 1 
 DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION 
 Section 1.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires: 
 (a) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular, and nouns and pronouns of the masculine gender include the feminine and neuter genders; 
 (b) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States; 
 (c) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and
not to any particular Article, Section, Exhibit or other subdivision; and 
 (d) the following terms have the meanings given to them in
this Section 1.01(d): 
 “Act” has the meaning, with respect to any Holder, set forth in Section 1.04. 

“Adjustment Factor” has the meaning set forth in Section 5.04(a)(vii). 

 “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

“Agreement” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more
agreements supplemental hereto entered into pursuant to the applicable provisions hereof. 
 “Applicable Market Value” means
the average of the Volume Weighted Average Price per share of Common Stock (or, if the Company enters into a Reorganization Event, Exchange Property Units) on each Trading Day during the Observation Period. For purposes of calculating the value of
an Exchange Property Unit, (x) the value of any common stock included in the Exchange Property Unit shall be determined using the average of the volume weighted average price per share of such common stock on each Trading Day during the
Observation Period (adjusted as set forth under Section 5.04) and (y) the value of any other property, including securities other than common stock included in the Exchange Property Unit, shall be the value of such property on the first
Trading Day of the Observation Period (as determined in good faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution). 
 “Applicable Ownership Interest in Senior Notes” means, a 1/20th or a 5% undivided beneficial ownership interest in $1,000 principal amount of Senior Notes that is a component of a Corporate Unit, and “Applicable
Ownership Interests in Senior Notes” means the aggregate of every Applicable Ownership Interest in Senior Notes that is a component of the Corporate Units then Outstanding. 
 “Applicable Ownership Interest in the Treasury Portfolio” shall mean, with respect to the Treasury Portfolio contained in a Corporate
Unit, (i) a 1/20, or 5%, undivided beneficial ownership interest in $1,000 face amount of U.S. Treasury securities (or principal or interest strips thereof) included in the Treasury Portfolio that mature on or prior to May 17, 2011, and
(ii) an undivided beneficial ownership interest in U.S. Treasury securities (or principal or interest strips thereof) that mature on or prior to May 17, 2011 in an aggregate amount at maturity equal to the aggregate interest that would
have accrued from, and including, February 15, 2011 to, but excluding, May 17, 2011 (assuming no reset of the interest rate and that May 17, 2011 is a Payment Date in lieu of May 15, 2011) on the principal amount of the Senior
Notes that were formerly included in Corporate Units but that were remarketed. 
 “Applicable Principal Amount” means the
aggregate principal amount of the Senior Notes in which a beneficial ownership interest is a component of the Corporate Units. 
 “Applicants” has the meaning set forth in Section 7.12(b). 
 “Authorized Share Condition”
means that the Company has a sufficient number of authorized and unissued shares of Common Stock on reserve and registered on a Registration 

  

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Statement under the Securities Act for the settlement in all circumstances of all outstanding Purchase Contracts and the automatic conversion of all
outstanding shares of Series A Preferred Stock into shares of Common Stock in accordance with the Certificate of Designations. 
 “Bankruptcy Code” means Title 11 of the United States Code, or any other law of the United States that from time to time provides a uniform system of bankruptcy laws. 
 “Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the beneficial owner of such Book-Entry Interest as
reflected on the books of the Depositary or on the books of a Person maintaining an account with such Depositary (directly as a Depositary Participant or as an indirect participant, in each case in accordance with the rules of such Depositary).

 “Board of Directors” means the board of directors of the Company or a duly authorized committee of that board.

 “Board Resolution” means one or more resolutions of the Board of Directors, a copy of which has been 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 Purchase Contract Agent. 
 “Book-Entry Interest” means a beneficial interest in a Global Certificate, registered in the name of a Depositary or a nominee thereof,
ownership and transfers of which shall be maintained and made through book entries by such Depositary as described in Section 3.06. 
 “Business Day” means any day other than a Saturday or Sunday or any other day on which banking institutions or trust companies in New York City, New York are permitted or required by applicable law to remain closed or a day
on which the Indenture Trustee, the Purchase Contract Agent or the Collateral Agent is closed for business; provided that for purposes of the second paragraph of Section 1.12 only, the term “Business Day” shall also be deemed to
exclude any day on which DTC is closed. 
 “Cash Merger” has the meaning set forth in Section 5.04(b)(ii). 

“Cash Merger Early Settlement” has the meaning set forth in Section 5.04(b)(ii). 
 “Cash Merger Early Settlement Date” has the meaning set forth in Section 5.04(b)(ii)(C). 
 “Cash Settlement” has the meaning set forth in Section 5.02(c)(i). 
 “Certificate” means a Corporate Units Certificate or a Treasury Units Certificate, as the case may be. 
  

 3 

 “Certificate of Designations” means the Certificate of Designations governing the Series
A Preferred Stock of the Company, dated as of March 12, 2008. 
 “Closing Price” per share of Common Stock on any date of
determination means: 
 (i) the closing price as of the close of the principal trading session (or, if no closing price is
reported, the last reported sale price) per share on the NYSE on such date; 
 (ii) if the Common Stock is not listed for
trading on the NYSE on any such date, the closing price (or, if no closing price is reported, the last reported sale price) per share as reported in the composite transactions for the principal United States national or regional securities exchange
on which the Common Stock is so listed; 
 (iii) if the Common Stock is not so listed on a United States national or regional
securities exchange, the last quoted bid price for the Common Stock in the over-the-counter market as reported by the National Quotation Bureau or similar organization; or 
 (iv) if the Common Stock is not listed on a United States national or regional securities exchange and the bid price referred to in clause
(iii) is not available, the market value of Common Stock on such date as determined by a nationally recognized independent investment banking firm retained by the Company for purposes of determining the Closing Price. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Collateral” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
 “Collateral Account” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
 “Collateral Agent” means The Bank of New York, a New York banking corporation, as Collateral Agent under the Pledge Agreement until a
successor Collateral Agent shall have become such pursuant to the applicable provisions of the Pledge Agreement, and thereafter “Collateral Agent” shall mean the Person who is then the Collateral Agent thereunder. 
 “Collateral Substitution” means (i) with respect to any Corporate Units, (x) the substitution of the Pledged Applicable
Ownership Interests in Senior Notes included in such Corporate Units (if the Applicable Ownership Interests in the Treasury Portfolio have not replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units) with
Treasury Securities in an aggregate principal amount at maturity equal to the aggregate principal amount of such Pledged Applicable Ownership Interests in Senior Notes, or (y) the substitution of the Pledged Applicable Ownership Interests in
the Treasury Portfolio included in such Corporate Units (if the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the 

  

 4 

 
Corporate Units) with Treasury Securities in an aggregate principal amount at maturity equal to the aggregate principal amount of U.S. treasury securities at
maturity included in the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition thereof) constituting a part of the Corporate Units for which Collateral Substitution is effected or (ii) with
respect to the Treasury Units, (x) the substitution of the Pledged Treasury Securities included in such Treasury Units (if the Applicable Ownership Interests in the Treasury Portfolio have not replaced the Applicable Ownership Interests in
Senior Notes as a component of the Corporate Units) with Applicable Ownership Interests in Senior Notes in an aggregate principal amount equal to the aggregate principal amount at maturity of the Pledged Treasury Securities, or (y) the
substitution of the Pledged Treasury Securities included in such Treasury Units (if the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units)
with Applicable Ownership Interests in the Treasury Portfolio (such that the amount specified in clause (i) of the definition thereof equals the aggregate principal amount at maturity of such Pledged Treasury Securities). 
 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor shall have
become such pursuant to the applicable provision of this Agreement, and thereafter “Company” shall mean such successor. 
 “Constituent Person” has the meaning set forth in Section 5.04(b)(i). 
 “Contract Adjustment Payments” means the payments payable by the Company on the Payment Dates in respect of each Purchase Contract, at an initial rate per year of 0% of the Stated Amount per Purchase
Contract; provided, however, that if the Authorized Share Condition is not satisfied by the 120th day following the initial issuance date of the
Units, the Contract Adjustment Payments shall increase to 5% per year of the Stated Amount per Purchase Contract from such 120th day to, but
excluding, the date on which the Authorized Share Condition is satisfied. 
 “Conversion Ratio” means 0.01. 
 “Corporate Trust Office” means the office of the Purchase Contract Agent at which, at any particular time, its corporate trust business
shall be principally administered, which office at the date hereof is located at 101 Barclay Street – 8W, New York, New York 10286, Attention: Corporate Trust Division – Corporate Finance Unit, or such other address as the Purchase
Contract Agent may designate from time to time by notice to the Company. 
 “Corporate Unit” means the collective rights and
obligations of a Holder of a Corporate Units Certificate in respect of the Applicable Ownership Interest in Senior Notes or the Applicable Ownership Interest in the Treasury Portfolio, as the case may be, subject in each case (except for the
Applicable Ownership Interest in the Treasury Portfolio specified in clause (ii) of the definition of such term) to the Pledge thereof, and the related Purchase Contract. 
 “Corporate Units Certificate” means a certificate evidencing the rights and obligations of a Holder in respect of the number of
Corporate Units specified on such certificate. 
  

 5 

 “Current Market Price” means, in respect of a share of Common Stock or any other
security on any date of determination, the average of the daily closing sale price per share of the Common Stock or other security for the 20 consecutive Trading Days preceding the earlier of the day preceding the day in question and the day before
the “ex date” with respect to the issuance or distribution requiring such computation. For purposes of this definition, the term “ex date,” when used with respect to any issuance or distribution, shall mean the first date on
which Common Stock or such other security trades, regular way, on the principal U.S. securities exchange or quotation system on which shares of Common Stock or such other security, as applicable, are listed or quoted at that time, without the right
to receive such issuance or distribution, provided that, in the event of a Spin-Off that is not effective simultaneously with an Initial Public Offering, the Current Market Price means the daily average of the closing sale price of the Common Stock
for the first 10 consecutive Trading Days following the effective date of the Spin-Off, and in the event of a Spin-Off that is effective simultaneously with an Initial Public Offering, the Current Market Price of Common Stock means the closing sale
price of the Common Stock on the Trading Day on which the Initial Public Offering price is determined. 
 “Custodial Agent”
means The Bank of New York, a New York banking corporation, as Custodial Agent under the Pledge Agreement until a successor Custodial Agent shall have become such pursuant to the applicable provisions of the Pledge Agreement, and thereafter
“Custodial Agent” shall mean the Person who is then the Custodial Agent thereunder. 
 “Depositary” means a
clearing agency registered under Section 17A of the Exchange Act that is designated to act as Depositary for the Units as contemplated by Sections 3.06 and 3.08 or its nominee. 
 “Depositary Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time the
Depositary effects book entry transfers and pledges of securities deposited with the Depositary. 
 “DTC” means The
Depository Trust Company. 
 “Early Settlement” has the meaning set forth in Section 5.07(a). 
 “Early Settlement Amount” has the meaning set forth in Section 5.07(b). 
 “Early Settlement Date” has the meaning set forth in Section 5.07(d). 
 “Early Settlement Rate” has the meaning set forth in Section 5.07(h). 
 “Effective Date” has the meaning set forth in Section 5.04(b)(iii). 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time,
and the rules and regulations promulgated thereunder. 
  

 6 

 “Exchange Property Unit” has the meaning set forth in Section 5.04(b)(i).

 “Expiration Date” has the meaning set forth in Section 1.04(e). 
 “Expiration Time” has the meaning set forth in Section 5.04(a)(vi). 
 “Failed Remarketing” has the meaning set forth in Section 5.02(a)(iv). 
 “Fair Market Value” means 
  

	 	(a)	in the case of any Spin-Off that is effected simultaneously with an Initial Public Offering of the securities being distributed in the Spin-Off, the Initial Public Offering price of
those securities, and 

  

	 	(b)	in the case of any other Spin-Off, the average of the Closing Prices of the securities being distributed in the Spin-Off over the first 10 Trading Days after the effective date of
such Spin-Off. 

 “Final Remarketing Date” means the earlier of (i) the fourth Business Day immediately
succeeding the Initial Remarketing Date and (ii) the day on which a Successful Remarketing takes place. 
 “Fixed Settlement
Rate” means the Minimum Settlement Rate and the Maximum Settlement Rate, collectively. 
 “Global Certificate”
means a Certificate that evidences all or part of the Units and is registered in the name of the Depositary or a nominee thereof. 
 “Holder” means, with respect to a Unit, the Person in whose name the Unit evidenced by a Certificate is registered in the Security Register; provided, however, that solely for the purpose of determining whether the Holders
of the requisite number of Units have voted on any matter (and not for any other purpose hereunder), if the Unit remains in the form of one or more Global Certificates and if the Depositary that is the registered holder of such Global Certificate
has sent an omnibus proxy assigning voting rights to the Depositary Participants to whose accounts the Units are credited on the record date, the term “Holder” shall mean such Depositary Participant acting at the direction of the
Beneficial Owners. 
 “Indemnitees” has the meaning set forth in Section 7.07(c). 
 “Indenture” means the Indenture, dated as of February 15, 2006, between the Company and the Indenture Trustee (including any
provisions of the TIA that are deemed incorporated therein), as amended and supplemented by the Supplemental Indenture pursuant to which the Senior Notes will be issued, and as otherwise amended and supplemented from time to time. 
 “Indenture Trustee” means The Bank of New York, a New York banking corporation, as trustee under the Indenture, or any successor
thereto. 
  

 7 

 “Initial Public Offering” means the first time securities of the same class or type as
the securities being distributed in the Spin-Off are offered to the public for cash. 
 “Initial Remarketing” has the
meaning set forth in Section 5.02(a)(i). 
 “Initial Remarketing Date” means February 4, 2011. 
 “Issuer Order” or “Issuer Request” means a written order or request signed in the name of the Company by
(i) either its Chief Executive Officer, its President or one of its Vice Presidents, and (ii) either its Corporate Secretary or one of its Assistant Corporate Secretaries or its Treasurer or one of its Assistant Treasurers, and delivered
to the Purchase Contract Agent. 
 “Make-Whole Share Amount” has the meaning set forth in Section 5.04(b)(ii).

 “Maximum Settlement Rate” has the meaning set forth in Section 5.01(a)(iii). 
 “Minimum Settlement Rate” has the meaning set forth in Section 5.01(a)(i). 
 “NYSE” means the New York Stock Exchange, Inc. 
 “Observation Period” means the 20 consecutive Trading Days ending on the third Trading Day immediately preceding the Purchase Contract Settlement Date. 
 “Officers’ Certificate” means a certificate signed by (i) either the Company’s Chief Executive Officer, its President or
one of its Vice Presidents, and (ii) either the Company’s Corporate Secretary or one of its Assistant Corporate Secretaries or its Treasurer or one of its Assistant Treasurers, and delivered to the Purchase Contract Agent. Any
Officers’ Certificate delivered with respect to compliance with a condition or covenant provided for in this Agreement (other than the Officers’ Certificate provided for in Section 10.05) shall include the information set forth in
Section 1.02. 
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company, and who
shall be reasonably acceptable to the Purchase Contract Agent. An opinion of counsel may rely on certificates as to matters of fact. 
 “Outstanding” means, as of any date of determination, all Units evidenced by Certificates theretofore authenticated, executed and delivered under this Agreement, except: 
 (i) all Units, if a Termination Event has occurred; 
 (ii) Units evidenced by Certificates theretofore cancelled by the Purchase Contract Agent or delivered to the Purchase Contract Agent for
cancellation or deemed cancelled pursuant to the provisions of this Agreement; and 
 (iii) Units evidenced by Certificates in
exchange for or in lieu of which other Certificates have been authenticated, executed on behalf of the Holder and delivered pursuant to this Agreement, other than any such Certificate in respect of which there shall have been presented to the
Purchase Contract Agent proof satisfactory to it 

  

 8 

 
that such Certificate is held by a protected purchaser in whose hands the Units evidenced by such Certificate are valid obligations of the Company;

 provided, however, that in determining whether the Holders of the requisite number of the Units have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Units owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding Units, except that, in determining whether the Purchase Contract Agent shall be authorized and
protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Units that a Responsible Officer of the Purchase Contract Agent actually knows to be so owned shall be so disregarded. Units so owned that
have been pledged in good faith may be regarded as Outstanding Units if the pledgee establishes to the satisfaction of the Purchase Contract Agent the pledgee’s right so to act with respect to such Units and that the pledgee is not the Company
or any Affiliate of the Company. 
 “Payment Date” means February 15, May 15, August 15 and
November 15 of each year, commencing May 15, 2008; provided, however, that the final Payment Date shall be the Purchase Contract Settlement Date in lieu of May 15, 2011 and will include amounts accrued to, but excluding, May 17,
2011. 
 “Permitted Investments” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
 “Person” means a legal person, including any individual, corporation, estate, partnership, limited partnership, joint venture,
association, joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof or any other entity of whatever nature. 
 “Plan” means an employee benefit plan that is subject to ERISA, a plan or individual retirement account that is subject to
Section 4975 of the Code or any entity whose assets are considered assets of any such plan. 
 “Pledge” means the
pledge under the Pledge Agreement of the Applicable Ownership Interest in the Senior Notes, the Treasury Securities or the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as
the case may be, in each case constituting a part of the Units (it being understood that the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (ii) of the definition of such term) shall not be subject to the
Pledge). 
 “Pledge Agreement” means the Pledge Agreement, dated as of March 12, 2008, among the Company, the
Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract Agent, on its own behalf and as attorney-in-fact for the Holders from time to time of the Units, as amended from time to time. 
 “Pledged Applicable Ownership Interests in Senior Notes” means the Applicable Ownership Interests in Senior Notes and security
entitlements with respect thereto from time to time credited to the Collateral Account and not then released from the Pledge. 
  

 9 

 “Pledged Applicable Ownership Interests in the Treasury Portfolio” means the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition thereof) and security entitlements with respect thereto from time to time credited to the Collateral Account and not then released from the Pledge.

 “Pledged Treasury Securities” means Treasury Securities and security entitlements with respect thereto from time to time
credited to the Collateral Account and not then released from the Pledge. 
 “Predecessor Corporate Units Certificate” of
any particular Corporate Units Certificate means every previous Corporate Units Certificate evidencing all or a portion of the rights and obligations of the Company and the Holder under the Corporate Units evidenced thereby; and, for the purposes of
this definition, any Corporate Units Certificate authenticated and delivered under Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Corporate Units Certificate shall be deemed to evidence the same rights and
obligations of the Company and the Holder as the mutilated, destroyed, lost or stolen Corporate Units Certificate. 
 “Predecessor
Treasury Units Certificate” of any particular Treasury Units Certificate means every previous Treasury Units Certificate evidencing all or a portion of the rights and obligations of the Company and the Holder under the Treasury Units
evidenced thereby; and, for the purposes of this definition, any Treasury Units Certificate authenticated and delivered under Section 3.10 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Treasury Units Certificate shall be
deemed to evidence the same rights and obligations of the Company and the Holder as the mutilated, destroyed, lost or stolen Treasury Units Certificate. 
 “Primary Treasury Dealer” means a primary U.S. government securities dealer. 
 “Pro
Rata” means pro rata to each Holder according to the aggregate Stated Amount of the Units held by such Holder in relation to the aggregate Stated Amount of all Units outstanding. 
 “Proceeds” has the meaning set forth in Section 1.01(d) of the Pledge Agreement. 
 “Prospectus” means the prospectus relating to the delivery of shares or any securities in connection with an Early Settlement pursuant
to Section 5.07 or a Cash Merger Early Settlement of Purchase Contracts pursuant to Section 5.04(b)(ii), in the form in which first filed, or transmitted for filing, with the Securities and Exchange Commission after the effective date of
the Registration Statement pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by reference therein as of the date of such Prospectus. 
 “Purchase Contract” means, with respect to any Unit, the contract forming a part of such Unit and obligating the Company to
(i) sell, and the Holder of such Unit to purchase, (x) a number of shares of Common Stock equal to the applicable Settlement Rate or (y) if the Authorized Share Condition has not been satisfied, a number of shares of Series A
Preferred Stock equal to the product of the Conversion Ratio multiplied by the number of shares set forth in the preceding clause (x); and (ii) pay the Holder thereof Contract Adjustment Payments, in each case on the terms and subject to the
conditions set forth in Article 5 hereof. 
  

 10 

 “Purchase Contract Agent” means the Person named as the “Purchase Contract
Agent” in the first paragraph of this Agreement until a successor Purchase Contract Agent shall have become such pursuant to the applicable provisions of this Agreement, and thereafter “Purchase Contract Agent” shall mean such Person
or any subsequent successor who is appointed pursuant to this Agreement. 
 “Purchase Contract Settlement Date” means
May 17, 2011. 
 “Purchase Contract Settlement Fund” has the meaning set forth in Section 5.03. 
 “Purchase Price” has the meaning set forth in Section 5.01(a). 
 “Purchased Shares” has the meaning set forth in Section 5.04(a)(vi). 
 “Put Price” means, for each Applicable Ownership Interest in Senior Notes that is a component of a Corporate Unit, an amount equal to
the Stated Amount plus accrued and unpaid interest, including without limitation accrued and unpaid interest on the Senior Notes from, and including, May 15, 2011 to, but excluding, May 17, 2011. 
 “Put Right” has the meaning set forth in Section 8.05 of the Supplemental Indenture. 
 “Quotation Agent” means any Primary Treasury Dealer in New York City selected by the Company. 
 “Record Date” for any distribution and Contract Adjustment Payment payable on any Payment Date means, as to any Global Certificate or
any other Certificate, the first Business Day of the calendar month in which the relevant Payment Date falls. 
 “Reference
Dividend” has the meaning set forth in Section 5.04(a)(v). 
 “Reference Price” has the meaning set forth in
Section 5.01(a)(ii). 
 “Registration Statement” means a registration statement under the Securities Act prepared by
the Company covering, inter alia, the delivery by the Company of any securities in connection with an Early Settlement on the Early Settlement Date under Section 5.07 or a Cash Merger Early Settlement of Purchase Contracts on the Cash
Merger Early Settlement Date under Section 5.04(b)(ii), including all exhibits thereto and the documents incorporated by reference in the prospectus contained in such registration statement, and any post-effective amendments thereto.

 “Remarketing” means the remarketing of the Senior Notes by the Remarketing Agent pursuant to the Remarketing Agreement.

 “Remarketing Agent” has the meaning set forth in the Remarketing Agreement. 
 “Remarketing Agreement” means the Remarketing Agreement, dated as of March 12, 2008 among the Company, Credit Suisse Securities
(USA) LLC, Citigroup Global Markets 

  

 11 

 
Inc., UBS Securities LLC, Banc of America Securities LLC and the Purchase Contract Agent, as amended from time to time. 
 “Remarketing Fee” has the meaning set forth in Remarketing Agreement. 
 “Remarketing Price Per Senior Note” means the Treasury Portfolio Purchase Price divided by the number of Senior Notes included in a
Remarketing that are held as components of Corporate Units. 
 “Remarketing Settlement Date” means February 15, 2011.

 “Reorganization Event” means the following events, in each case as a result of which Holders of Common Stock are entitled
to receive stock, other securities, other property or assets (including cash or any combination thereof) with respect to or in exchange for Common Stock: 
  

	 	•	 	 any consolidation or merger of the Company with or into another Person or of another Person with or into the Company (other than a consolidation or merger in which
the Company is the continuing corporation and in which its shares of Common Stock outstanding immediately prior to the consolidation or merger are not exchanged for cash, securities or other property of the Company or another Person); or

  

	 	•	 	 any sale, transfer, lease or conveyance to another Person of all or substantially all of the assets of the Company; or 

  

	 	•	 	 any statutory share exchange of the Company with another Person (other than in connection with a merger or acquisition); or 

  

	 	•	 	 any liquidation, dissolution or termination of the Company (other than as a result of or after the occurrence of a Termination Event). 

“Reset Rate” has the meaning set forth in Section 1.02(e) of the Supplemental Indenture. 
 “Responsible Officer” means, with respect to the Purchase Contract Agent, any officer of the Purchase Contract Agent assigned to the
Corporate Trust Division—Corporate Finance Unit (or any successor division or unit) of the Purchase Contract Agent located at the Corporate Trust Office of the Purchase Contract Agent, who shall have direct responsibility for the administration
of this Agreement and, for the purposes of Section 7.01(b)(ii), shall also include any other officer of the Purchase Contract Agent to whom any corporate trust matter is referred because of such officer’s knowledge of and familiarity with
the particular subject. 
 “Rights” has the meaning set forth in Section 5.04(a)(x). 
 “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each case as amended from time to time, and the
rules and regulations promulgated thereunder. 
  

 12 

 “Securities Intermediary” means The Bank of New York, a New York banking corporation, as
Securities Intermediary under the Pledge Agreement until a successor Securities Intermediary shall have become such pursuant to the applicable provisions of the Pledge Agreement, and thereafter “Securities Intermediary” shall mean such
successor or any subsequent successor who is appointed pursuant to the Pledge Agreement. 
 “Security Register” and
“Security Registrar” have the respective meanings set forth in Section 3.05(a). 
 “Senior
Indebtedness” means, indebtedness of any kind of the Company unless the instrument under which such indebtedness is incurred expressly provides that it is on a parity in right of payment with or subordinate in right of payment to the
Contract Adjustment Payments. 
 “Senior Notes” means the series of notes designated the 9.5% Senior Notes due
February 15, 2021. 
 “Separate Senior Notes” means Senior Notes that have been released from the Pledge following
Collateral Substitution and therefore no longer underlie Corporate Units. 
 “Separate Senior Notes Purchase Price” means
the amount in cash equal to the product of the Remarketing Price Per Senior Note multiplied by the number of Separate Senior Notes remarketed in a Remarketing. 
 “Series A Preferred Stock” means the Series A Participating Preferred Stock, par value $0.01 per share, of the Company. 
 “Settlement Rate” has the meaning set forth in Section 5.01(a). 
 “Spin-Off” means payment of a dividend or distribution on the Common Stock or shares of capital stock of any class or series, or similar equity interests, of or relating to a subsidiary or other business unit of the
Company. 
 “Stated Amount” means $50.00 per Unit. 
 “Stock Price” has the meaning set forth in Section 5.04(b)(iii). 
 “Successful Remarketing” has the meaning set forth in Section 5.02(a)(iii). 
 “Supplemental Indenture” means the Supplemental Indenture No. 1 dated as of the date hereof between the Company and the Indenture
Trustee pursuant to which the Senior Notes are issued. 
 “Termination Date” means the date, if any, on which a Termination
Event occurs. 
 “Termination Event” means the occurrence of any of the following events: 
  

 13 

 (i) at any time on or prior to the Purchase Contract Settlement Date, a judgment, decree
or court order shall have been entered granting relief under the Bankruptcy Code or any other similar applicable Federal or state law, adjudicating the Company to be insolvent, or approving as properly filed a petition seeking reorganization or
liquidation of the Company and if such judgment, decree or order shall have been entered more than 60 days prior to the Purchase Contract Settlement Date, such decree or order shall have continued undischarged and unstayed for a period of 60 days;

 (ii) at any time on or prior to the Purchase Contract Settlement Date, a judgment, decree or court order for the
appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of the Company or of its property, or for the termination or liquidation of its affairs, shall have been entered and if such judgment, decree or order shall
have been entered more than 60 days prior to the Purchase Contract Settlement Date, such judgment, decree or order shall have continued undischarged and unstayed for a period of 60 days; or 
 (iii) at any time on or prior to the Purchase Contract Settlement Date, the Company shall file a petition for relief under the Bankruptcy
Code, or shall consent to the filing of a bankruptcy proceeding against it, or shall file a petition or answer or consent seeking reorganization or liquidation under the Bankruptcy Code or any other similar applicable Federal or State law, or shall
consent to the filing of any such petition, or shall consent to the appointment of a receiver or liquidator or trustee or assignee in bankruptcy or insolvency of it or of its property, or shall make an assignment for the benefit of creditors, or
shall admit in writing its inability to pay its debts generally as they become due. 
 “Threshold Appreciation Price” has
the meaning set forth in Section 5.01(a)(i). 
 “TIA” means the Trust Indenture Act of 1939, as amended from time to
time, or any successor legislation. 
 “Trading Day” means a day on which the Common Stock (i) is not suspended from
trading on any national or regional securities exchange or association or over-the-counter market at the close of business and (ii) has traded at least once on the national or regional securities exchange or association or over-the-counter
market that is the primary market for the trading of the Common Stock. 
 “Treasury Portfolio” means a portfolio of
(1) U.S. treasury securities (or principal or interest strips thereof) that mature on or prior to May 17, 2011 in an aggregate amount at maturity equal to the Applicable Principal Amount of the Senior Notes that were formerly included in
Corporate Units but that were remarketed, and (2) U.S. treasury securities (or principal or interest strips thereof) that mature on or prior to May 17, 2011 in an aggregate amount at maturity equal to the aggregate interest that would have
accrued from, and including, February 15, 2011 to, but excluding, May 17, 2011 (assuming no reset of the interest rate and that May 17, 2011 is a Payment Date in lieu of May 15, 2011) on the Applicable Principal Amount of the
Senior Notes that were formerly included in Corporate Units but that were 

  

 14 

 
remarketed; provided, however, that U.S. treasury securities may be added to or removed from the Treasury Portfolio pursuant to Section 3.14(b) or
Section 3.13(b), respectively. 
 “Treasury Portfolio Purchase Price” means the lowest aggregate ask-side price quoted
by a Primary Treasury Dealer to the Quotation Agent between 9:00 a.m. and 11:00 a.m. (New York City time), in the case of any Successful Remarketing, on the date of such Successful Remarketing for the purchase of the applicable Treasury
Portfolio for settlement on the Remarketing Settlement Date. 
 “Treasury Securities” means, as applicable, (i) on or
prior to February 15, 2011, zero-coupon U.S. treasury securities, with an individual principal amount at maturity of $1,000, that mature on February 15, 2011 (CUSIP No. 912820GC5); or (ii) after February 15, 2011,
zero-coupon U.S. treasury securities (or principal or interest strips thereof), with an individual principal amount at maturity of $1,000, that mature on or prior to the Purchase Contract Settlement Date. 
 “Treasury Unit” means, following the substitution of Treasury Securities for Pledged Applicable Ownership Interests in Senior Notes or
the Pledged Applicable Ownership Interests in the Treasury Portfolio, as the case may be, as collateral to secure a Holder’s obligations under the Purchase Contract, the collective rights and obligations of a Holder of a Treasury Units
Certificate in respect of such Treasury Securities, subject to the Pledge thereof, and the related Purchase Contract. 
 “Treasury
Units Certificate” means a certificate evidencing the rights and obligations of a Holder in respect of the number of Treasury Units specified on such certificate. 
 “Underwriters” means the underwriters that are a party to the Underwriting Agreement. 
 “Underwriting Agreement” means the Underwriting Agreement, dated March 6, 2008, among the Company and the Underwriters, relating to
the issuance of Corporate Units by the Company. 
 “Unit” means a Corporate Unit or a Treasury Unit, as the case may be.

 “Vice President” means any vice president, whether or not designated by a number or a word or words added before or after
the title “vice president.” 
 “Volume Weighted Average Price” per share of Common Stock on any Trading Day means
such price as displayed on Bloomberg (or any successor service) page ABK.N <equity> VAP in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such Trading Day; or, if such price is not available, the Volume Weighted
Average Price means the market value per share of the Common Stock on such Trading Day as determined by a nationally recognized independent investment banking firm retained by the Company for this purpose. 
 Section 1.02. Compliance Certificates and Opinions. Except as otherwise expressly provided by this Agreement, upon any application or request
by the Company to the Purchase Contract Agent to take any action in accordance with any provision of this Agreement, 

  

 15 

 
the Company shall furnish to the Purchase Contract Agent an Officers’ Certificate stating that all conditions precedent, if any, provided for in this
Agreement relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in the case of any such application
or request as to which the furnishing of such documents is specifically required by any provision of this Agreement relating to such particular application or request, no additional certificate or opinion need be furnished. 
 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Agreement (other than the Officers’
Certificate provided for in Section 10.05) shall include: 
 (i) a statement that each individual signing such
certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 
 (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; 
 (iii) a statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to
enable such individual 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, in the opinion of each such individual, such condition or covenant has been complied with. 
 Section 1.03. Form of Documents Delivered to Purchase Contract Agent. 
 In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 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 its certificate or opinion is based are erroneous. Any such certificate or 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 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. 
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements,
opinions or other instruments under this Agreement, they may, but need not, be consolidated and form one instrument. 
  

 16 

 Section 1.04. Acts of Holders; Record Dates. 
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Agreement to be given or taken by Holders may
be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective
when such instrument or instruments are delivered to the Purchase Contract Agent and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Agreement and (subject to
Section 7.01) conclusive in favor of the Purchase Contract Agent and the Company, if made in the manner provided in this Section. 
 (b)
The fact and date of the execution by any Person of any such instrument or writing may be proved in any manner which the Purchase Contract Agent deems sufficient. 
 (c) The ownership of Units shall be proved by the Security Register. 
 (d) Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of any Unit shall bind every future Holder of the same Unit and the Holder of every Certificate evidencing such Unit issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Purchase Contract Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Certificate. 
 (e) The Company may set any date as a record date for the purpose of determining the Holders of Outstanding Units entitled to give, make or take any
request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Agreement to be given, made or taken by Holders of Units. If any record date is set pursuant to this paragraph, the Holders of the
Outstanding Corporate Units and the Outstanding Treasury Units, as the case may be, on such record date, and no other Holders, shall be entitled to take the relevant action with respect to the Corporate Units or the Treasury Units, as the case may
be, whether or not such Holders remain Holders after such record date; provided that no such action shall be effective hereunder unless taken prior to or on the applicable Expiration Date by Holders of the requisite number of Outstanding Units on
such record date. Nothing contained in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be cancelled and be of no effect), and nothing contained in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite number of
Outstanding Units on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Purchase Contract Agent in writing and to each Holder of Units in the manner set forth in Section 1.06. 
  

 17 

 With respect to any record date set pursuant to this Section 1.04(e), the Company may designate any
date as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day; provided that no such change shall be effective unless notice of the proposed new Expiration Date is given to the Purchase
Contract Agent in writing, and to each Holder of Units in the manner set forth in Section 1.05 and Section 1.06, prior to or on the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set
pursuant to this Section, the Company shall be deemed to have initially designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph.
Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date. 
 Section 1.05.
Notices. 
 Any notice or communication is duly given if in writing and delivered in Person or mailed by first-class mail (registered
or certified, return receipt requested), telecopier (with receipt confirmed) or overnight air courier guaranteeing next day delivery, to the others’ address; provided that notice shall be deemed given to the Purchase Contract Agent, Collateral
Agent and Indenture Trustee, as the case may be, only upon actual receipt thereof: 
 If to the Purchase Contract Agent: 
 The Bank of New York 
 101 Barclay Street
– 8W 
 New York, New York 10286 
 Attention: Corporate Trust Division- Corporate Finance Unit 
 Fax: 212-815-5704 
 If to the Company: 
 Ambac Financial Group, Inc. 

One State Street Plaza 
 New York, New York
10004 
 Attention: Anne Gill Kelly 
 Fax: 212-509-9190 
 If to the Collateral Agent: 
 The Bank of New York 
 101 Barclay Street – 8W 
 New York, New York 10286 
 Attention:
Corporate Trust Division- Corporate Finance Unit 
 Fax: 212-815-5704 
  

 18 

 If to the Indenture Trustee: 
 The Bank of New York 
 101 Barclay Street – 8W 
 New York, New York 10286 
 Attention:
Corporate Trust Division- Corporate Finance Unit 
 Fax: 212-815-5704 
 The Purchase Contract Agent shall send to the Indenture Trustee at the facsimile number set forth above a copy of any notices in the form of
Exhibits C, D, E or F it sends or receives. 
 The Purchase Contract Agent shall have the right, but shall not be required, to rely upon
and comply with instructions and directions sent by e-mail, facsimile and other similar unsecured electronic methods by persons reasonably believed by the Purchase Contract Agent to be authorized to give instructions and directions on behalf of the
Company; provided, that the Purchase Contract Agent shall notify the party delivering such notice that it has elected not to rely upon and comply with such instructions should it so choose. The Purchase Contract Agent shall have no duty or
obligation to verify or confirm that the person who sent such instructions or directions is, in fact, a person authorized to give instructions or directions on behalf of the Company; and the Purchase Contract Agent shall have no liability for any
losses, liabilities, costs or expenses incurred or sustained by the Company as a result of such reliance upon or compliance with such instructions or directions. The Company agrees to assume all risks arising out of the use of such electronic
methods to submit instructions and directions to the Purchase Contract Agent, including without limitation the risk of the Purchase Contract Agent acting on unauthorized instructions, and the risk of interception and misuse by third parties.

 Section 1.06. Notice to Holders; Waiver. 
 Where this Agreement provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each
Holder affected by such event, at its address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by
mail, neither the failure to mail such notice, nor any defect in any notice so mailed to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Agreement provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Purchase Contract Agent,
but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
 In case by reason of
the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made with the approval of the Purchase Contract Agent shall constitute a sufficient
notification for every purpose hereunder. 
  

 19 

 Section 1.07. Effect of Headings and Table of Contents. 
 The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 Section 1.08. Successors and Assigns. 
 This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the Company and the Purchase Contract Agent, and the Holders from time to time of the Units, by their
acceptance of the same, shall be deemed to have agreed to be bound by the provisions hereof and to have ratified the agreements of the Purchase Contract Agent. 
 Section 1.09. Separability Clause. 
 In case any provision in this Agreement or in the Units
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof and thereof shall not in any way be affected or impaired thereby. 
 Section 1.10. Benefits of Agreement. 
 Nothing contained in this Agreement or in the Units, express or implied, shall give to any Person, other than to the holders of Senior Notes the parties hereto and their successors hereunder and, to the extent provided hereby, the Holders,
any benefits or any legal or equitable right, remedy or claim under this Agreement. The Holders from time to time shall be beneficiaries of this Agreement and shall be bound by all of the terms and conditions hereof and of the Units evidenced by
their Certificates by their acceptance of delivery of such Certificates. 
 Section 1.11. Governing Law; Waiver of Trial by Jury.

 THIS AGREEMENT AND THE UNITS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
THE CONFLICTS OF LAW PROVISIONS THEREOF. The Company, the Purchase Contract Agent and the Holders from time to time of the Units, acting through the Purchase Contract Agent as their attorney-in-fact, hereby submit to the nonexclusive jurisdiction of
the United States District Court for the Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated
hereby. The Company, the Purchase Contract Agent and the Holders from time to time of the Units, acting through the Purchase Contract Agent as their attorney-in-fact, irrevocably waive, to the fullest extent permitted by applicable law, any
objection which they may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. 
 EACH PARTY HERETO, AND EACH HOLDER OF A UNIT BY ITS ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT 

  

 20 

 
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. 
 Section 1.12. Legal Holidays. 
 In any case where any Payment Date shall not be a Business Day (notwithstanding any other provision of this Agreement or the Units), the relevant payments shall not be paid on such date, but the interest payments on the Senior Notes,
Contract Adjustment Payments and other distributions shall be paid on the next succeeding Business Day with the same force and effect as if made on such scheduled Payment Date; provided that no interest shall accrue or be payable by the Company or
to any Holder in respect of such delay. 
 In any case where the Purchase Contract Settlement Date or any Early Settlement Date or Cash
Merger Early Settlement Date shall not be a Business Day (notwithstanding any other provision of this Agreement or the Units), Purchase Contracts shall not be performed and Early Settlement and Cash Merger Early Settlement shall not be effected on
such date, but Purchase Contracts shall be performed or Early Settlement or Cash Merger Early Settlement shall be effected, as applicable, on the next succeeding Business Day with the same force and effect as if made on such Purchase Contract
Settlement Date, Early Settlement Date or Cash Merger Early Settlement Date, as applicable. 
 Section 1.13. Counterparts.

 This Agreement may be executed in any number of counterparts by the parties hereto on separate counterparts, each of which, when so
executed and delivered, shall be deemed an original, but all such counterparts shall together constitute one and the same instrument. 
 Section 1.14. Inspection of Agreement. 
 A copy of this Agreement shall be available at all reasonable times during
normal business hours at the Corporate Trust Office for inspection by any Holder or Beneficial Owner. 
 Section 1.15. Appointment of
Financial Institution as Agent for the Company. 
 The Company may appoint a financial institution (which may be the Collateral Agent) to
act as its agent in performing its obligations and in accepting and enforcing performance of the obligations of the Purchase Contract Agent and the Holders, under this Agreement and the Purchase Contracts, by giving notice of such appointment in the
manner provided in Section 1.05 hereof. Any such appointment shall not relieve the Company in any way from its obligations hereunder. 
 Section 1.16. No Waiver. No failure on the part of the Company, the Purchase Contract Agent, the Collateral Agent, the Securities Intermediary or any of their respective agents to exercise, and no course of dealing with respect
to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Company, the Collateral Agent, the Securities Intermediary or any of their respective agents of
any right, power or remedy hereunder preclude any other or further exercise 

  

 21 

 
thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law.

 ARTICLE 2 
 CERTIFICATE FORMS

 Section 2.01. Forms of Certificates Generally. 
 The Certificates (including the form of Purchase Contract forming part of each Unit evidenced thereby) shall be in substantially the form set forth in Exhibit A hereto (in the case of Certificates evidencing
Corporate Units) or Exhibit B hereto (in the case of Certificates evidencing Treasury Units), with such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon
as may be required by the rules of any securities exchange on which the Units are listed or any depositary therefor, or as may, consistently herewith, be determined by the officers of the Company executing such Certificates, as evidenced by their
execution of the Certificates. 
 The definitive Certificates shall be produced in any manner as determined by the officers of the Company
executing the Units evidenced by such Certificates, consistent with the provisions of this Agreement, as evidenced by their execution thereof. 
 Every Global Certificate authenticated, executed on behalf of the Holders and delivered hereunder shall bear a legend substantially in the form set forth in Exhibit A and Exhibit B attached hereto. 
 Section 2.02. Form of Purchase Contract Agent’s Certificate of Authentication. 
 The form of the Purchase Contract Agent’s certificate of authentication of the Units shall be in substantially the form set forth on the form of the
applicable Certificates. 
 ARTICLE 3 
 THE UNITS 
 Section 3.01. Amount; Form and Denominations. 
 The aggregate number of Units evidenced by Certificates authenticated, executed on behalf of the Holders and delivered hereunder is limited to 5,000,000
(plus the number of Units issued upon the exercise of the over-allotment option granted to the Underwriters pursuant to the Underwriting Agreement), except for Certificates authenticated, executed and delivered upon registration of, transfer of, in
exchange for, or in lieu of, other Certificates pursuant to Section 3.04, Section 3.05, Section 3.10, Section 3.13, Section 3.14 or Section 8.05. 
 The Certificates shall be issuable only in registered form and only in denominations of a single Corporate Unit or Treasury Unit and any integral
multiple thereof. 
  

 22 

 Section 3.02. Rights and Obligations Evidenced by the Certificates. 
 (a) Each Corporate Units Certificate shall evidence the number of Corporate Units specified therein, with each such Corporate Unit representing
(1) the ownership by the Holder thereof of an Applicable Ownership Interest in Senior Notes or an Applicable Ownership Interest in the Treasury Portfolio, as the case may be, subject to the Pledge of such Applicable Ownership Interest in Senior
Notes or the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as the case may be, by such Holder pursuant to the Pledge Agreement, and (2) the rights and obligations of
the Holder thereof and the Company under one Purchase Contract. The Purchase Contract Agent is hereby authorized, as attorney-in-fact for, and on behalf of, the Holder of each Corporate Unit, to pledge, pursuant to the Pledge Agreement, the
Applicable Ownership Interest in Senior Notes and the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the definition of such term), if any, forming a part of such Corporate Unit, to the Collateral Agent
for the benefit of the Company, and to grant to the Collateral Agent, for the benefit of the Company, a security interest in the right, title and interest of such Holder in such Applicable Ownership Interest in Senior Notes or Applicable Ownership
Interest in the Treasury Portfolio (as specified in clause (i) of the definition of such term), if any, to secure the obligation of the Holder under each Purchase Contract to purchase shares of Common Stock (or, in the circumstances described
in Section 5.08, shares of Series A Preferred Stock). To effect perfect such security interest, the Purchase Contract Agent on behalf of the Holders of Corporate Units has, on the date hereof, delivered to the Collateral Agent the Senior Notes.

 (b) Upon the formation of a Treasury Unit pursuant to Section 3.13, each Treasury Unit Certificate shall evidence the number of
Treasury Units specified therein, with each such Treasury Unit representing (1) the ownership by the Holder thereof of a 1/20 or 5% undivided beneficial interest in a Treasury Security with a principal amount equal to $1,000, subject to the
Pledge of such interest by such Holder pursuant to the Pledge Agreement, and (2) the rights and obligations of the Holder thereof and the Company under one Purchase Contract. The Purchase Contract Agent is hereby authorized, as attorney-in-fact
for, and on behalf of, the Holder of each Treasury Unit, to pledge, pursuant to the Pledge Agreement, such Holder’s interest in the Treasury Security forming a part of such Treasury Unit to the Collateral Agent, for the benefit of the Company,
and to grant to the Collateral Agent, for the benefit of the Company, a security interest in the right, title and interest of such Holder in such Treasury Security to secure the obligation of the Holder under each Purchase Contract to purchase
shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock). 
 (c) Prior to the
purchase of shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) under each Purchase Contract, such Purchase Contracts shall not entitle the Holder of a Unit to any of the rights of a
holder of shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock), including, without limitation, the right to vote or receive any dividends or other payments or to consent or to receive
notice as a shareholder in respect of the meetings of shareholders or for the election of directors of the Company or for any other matter, or any other rights whatsoever as a shareholder of the Company. 
  

 23 

 Section 3.03. Execution, Authentication, Delivery and Dating. 
 (a) Subject to the provisions of Section 3.13 and Section 3.14 hereof, upon the execution and delivery of this Agreement, and at any time and
from time to time thereafter, the Company may deliver Certificates executed by the Company to the Purchase Contract Agent for authentication, execution on behalf of the Holders and delivery, together with its Issuer Order for authentication of such
Certificates, and the Purchase Contract Agent in accordance with such Issuer Order shall authenticate, execute on behalf of the Holders and deliver such Certificates. 
 (b) The Certificates shall be executed on behalf of the Company by its Chairman of the Board of Directors, its Chief Executive Officer, its President, its Treasurer or one of its Vice Presidents. The signature of any
of these officers on the Certificates may be manual or facsimile. 
 (c) Certificates bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of such Certificates. 
 (d) No Purchase Contract evidenced by a Certificate shall be valid until such
Certificate has been executed on behalf of the Holder by the manual signature of an authorized signatory of the Purchase Contract Agent, as such Holder’s attorney-in-fact. Such signature by an authorized signatory of the Purchase Contract Agent
shall be conclusive evidence that the Holder of such Certificate has entered into the Purchase Contract or Contracts evidenced by such Certificate. 
 (e) Each Certificate shall be dated the date of its authentication. 
 (f) No Certificate shall be entitled to any benefit under
this Agreement or be valid or obligatory for any purpose unless there appears on such Certificate a certificate of authentication substantially in the form provided for herein executed by an authorized officer of the Purchase Contract Agent by
manual signature, and such certificate of authentication upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly authenticated and delivered hereunder. 
 Section 3.04. Temporary Certificates. 
 Pending the preparation of definitive Certificates, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the Holders, and deliver, in lieu of such
definitive Certificates, temporary Certificates which are in substantially the form set forth in Exhibit A or Exhibit B hereto, as the case may be, with such letters, numbers or other marks of identification or designation and such legends
or endorsements printed, lithographed or engraved thereon as may be required by the rules of any securities exchange on which the Corporate Units or Treasury Units, as the case may be, are listed, or as may, consistently herewith, be determined by
the officers of the Company executing such Certificates, as evidenced by their execution of the Certificates. 
  

 24 

 If temporary Certificates are issued, the Company will cause definitive Certificates to be prepared
without unreasonable delay. After the preparation of definitive Certificates, the temporary Certificates shall be exchangeable for definitive Certificates upon surrender of the temporary Certificates at the Corporate Trust Office, at the expense of
the Company and without charge to the Holder. Upon surrender for cancellation of any one or more temporary Certificates, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate,
execute on behalf of the Holder, and deliver in exchange therefor, one or more definitive Certificates of like tenor and denominations and evidencing a like number of Units as the temporary Certificate or Certificates so surrendered. Until so
exchanged, the temporary Certificates shall in all respects evidence the same benefits and the same obligations with respect to the Units evidenced thereby as definitive Certificates. 
 Section 3.05. Registration; Registration of Transfer and Exchange. 
 (a) The Purchase Contract Agent, acting solely for purposes of this Section 3.05 as agent for the Company, shall keep at the Corporate Trust Office a
register (the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Purchase Contract Agent shall provide for the registration of Certificates and of transfers of Certificates (the Purchase
Contract Agent, in such capacity, the “Security Registrar”). The Security Registrar shall record separately the registration and transfer of the Certificates evidencing Corporate Units and Treasury Units. 
 (b) Upon surrender for registration of transfer of any Certificate at the Corporate Trust Office, the Company shall execute and deliver to the Purchase
Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the designated transferee or transferees, and deliver, in the name of the designated transferee or transferees, one or more new Certificates of any authorized
denominations, like tenor, and evidencing a like number of Corporate Units or Treasury Units, as the case may be. 
 (c) At the option of the
Holder, Certificates may be exchanged for other Certificates, of any authorized denominations and evidencing a like number of Corporate Units or Treasury Units, as the case may be, upon surrender of the Certificates to be exchanged at the Corporate
Trust Office. Whenever any Certificates are so surrendered for exchange, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf of the Holder, and deliver the
Certificates which the Holder making the exchange is entitled to receive. 
 (d) All Certificates issued upon any registration of transfer or
exchange of a Certificate shall evidence the ownership of the same number of Corporate Units or Treasury Units, as the case may be, and be entitled to the same benefits and subject to the same obligations under this Agreement as the Corporate Units
or Treasury Units, as the case may be, evidenced by the Certificate surrendered upon such registration of transfer or exchange. 
 (e) Every
Certificate presented or surrendered for registration of transfer or exchange shall (if so required by the Purchase Contract Agent) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the

  

 25 

 
Purchase Contract Agent duly executed by the Holder thereof or its attorney duly authorized in writing. 
 (f) No service charge shall be made for any registration of transfer or exchange of a Certificate, but the Company and the Purchase Contract Agent may
require payment from the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Certificates, other than any exchanges pursuant to
Section 3.04, Section 3.06 and Section 8.05 not involving any transfer. 
 (g) Notwithstanding the foregoing, the Company
shall not be obligated to execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to authenticate, execute on behalf of the Holder and deliver any Certificate in exchange for any other Certificate
presented or surrendered for registration of transfer or for exchange on or after the Business Day immediately preceding the earliest to occur of any Early Settlement Date with respect to such Certificate, any Cash Merger Early Settlement Date with
respect to such Certificate, the Purchase Contract Settlement Date or the Termination Date. In lieu of delivery of a new Certificate, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate
registration or transfer instructions from such Holder, the Purchase Contract Agent shall: 
 (i) if the Purchase Contract
Settlement Date (including upon any Cash Settlement) or an Early Settlement Date or a Cash Merger Early Settlement Date with respect to such other Certificate (or portion thereof) has occurred, deliver the shares of Common Stock (or, in the
circumstances described in Section 5.08, shares of Series A Preferred Stock) issuable in respect of the Purchase Contracts forming a part of the Units evidenced by such other Certificate (or portion thereof); or 
 (ii) if a Termination Event, Early Settlement or Cash Merger Early Settlement shall have occurred, prior to the Purchase Contract
Settlement Date, or a Cash Settlement shall have occurred, transfer the Senior Notes, the Treasury Securities, or the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, evidenced thereby, in each case subject to the
applicable conditions and in accordance with the applicable provisions of Section 3.15 and Article 5 hereof. 
 Section 3.06.
Book-Entry Interests. 
 The Certificates will be issued in the form of one or more fully registered Global Certificates, to be
delivered to the Depositary, as agent for the Company, or its custodian by, or on behalf of, the Company. The Company hereby designates DTC as the initial Depositary. Such Global Certificates shall initially be registered on the Security Register in
the name of Cede & Co., the nominee of the Depositary, and no Beneficial Owner will receive a definitive Certificate representing such Beneficial Owner’s interest in such Global Certificate, except as provided in Section 3.09. The
Purchase Contract Agent shall enter into an agreement with the Depositary if so requested by the Company. Following the issuance of such Global Certificates 

  

 26 

 
and unless and until definitive, fully registered Certificates have been issued to Beneficial Owners pursuant to Section 3.09: 
 (i) the provisions of this Section 3.06 shall be in full force and effect; 
 (ii) the Company shall be entitled to deal with the Depositary for all purposes of this Agreement (including, without limitation, making
Contract Adjustment Payments and receiving approvals, votes or consents hereunder) as the Holder of the Units or any Purchase Contracts and Senior Notes that are components thereof and the sole holder of the Global Certificates and shall have no
obligation to the Beneficial Owners, provided that a Beneficial Owner may directly enforce against the Company, without any consent, proxy, waiver or involvement of the Depositary of any kind, such Beneficial Owner’s right to receive a
definitive Certificate representing the Units beneficially owned by such Beneficial Owner, as set forth in Section 3.09; 
 (iii) to the extent that the provisions of this Section 3.06 conflict with any other provisions of this Agreement, the provisions of this Section 3.06 shall control; and 
 (iv) except as set forth in the proviso of clause (ii) of this Section 3.06, the rights of the Beneficial Owners shall be
exercised only through the Depositary and shall be limited to those established by law and agreements between such Beneficial Owners and the Depositary or the Depositary Participants. The Depositary will make book-entry transfers among Depositary
Participants and receive and transmit all payments on the Units represented by Global Certificates and all transfers and deliveries of the related Senior Notes, Treasury Securities, the Applicable Ownership Interest in the Treasury Portfolio and
Common Stock to such Depositary Participants. 
 Transfers of securities evidenced by Global Certificates shall be made through the facilities of the
Depositary, and any cancellation of, or increase or decrease in the number of, such securities (including the creation of Treasury Units and the recreation of Corporate Units pursuant to Section 3.13 and Section 3.14 respectively) shall be
accomplished by making appropriate annotations on the Schedule of Increases or Decreases set forth in such Global Certificate. 
 Section 3.07. Notices to Holders. 
 Whenever a notice or other communication to the Holders is required to be given
under this Agreement, the Company or the Company’s agent shall give such notices and communications to the Holders and, with respect to any Units registered in the name of the Depositary or the nominee of the Depositary, the Company or the
Company’s agent shall, except as set forth herein, have no obligations to the Beneficial Owners. 
 Section 3.08. Appointment of
Successor Depositary. 
 If the Depositary elects to discontinue its services as securities depositary with respect to the Units or any
Purchase Contracts and Senior Notes that are components thereof, the 

  

 27 

 
Company may, in its sole discretion, appoint a successor Depositary with respect to the Units or any Purchase Contracts and Senior Notes that are components
thereof. 
 Section 3.09. Definitive Certificates. 
 If: 
 (i) the Depositary notifies the Company that it is unwilling or unable to continue its
services as securities depositary with respect to the Global Certificates and no successor Depositary has been appointed pursuant to Section 3.08 within 90 days after such notice; or 
 (ii) the Depositary ceases to be a “clearing agency” registered under Section 17A of the Exchange Act when the Depositary
is required to be so registered to act as the Depositary and so notifies the Company, and no successor Depositary has been appointed pursuant to Section 3.08 within 90 days after the Company learns that the Depositary has ceased to be so
registered; 
 (iii) to the extent permitted by the Depositary, the Company determines, in its sole discretion, at any time
that the Units shall no longer be represented by Global Certificates and shall inform such Depositary of such determination and Depositary Participants elect to withdraw their beneficial interests in the Units from such Depositary, following
notification by the Depositary of their right to do so; or 
 (iv) there shall have occurred and be continuing an Event of
Default (as defined in the Indenture) with respect to the Senior Notes; 
 then (x) definitive Certificates shall be prepared by the Company with
respect to such Units and delivered to the Purchase Contract Agent and (y) upon surrender of the Global Certificates representing the Units by the Depositary, accompanied by registration instructions, the Company shall cause definitive
Certificates to be delivered to Beneficial Owners in accordance with the instructions of the Depositary. The Company and the Purchase Contract Agent shall not be liable for any delay in delivery of such instructions and may conclusively rely on and
shall be authorized and protected in relying on, such instructions. Each definitive Certificate so delivered shall evidence Units of the same kind and tenor as the Global Certificate so surrendered in respect thereof. 
 Section 3.10. Mutilated, Destroyed, Lost and Stolen Certificates. 
 (a) If any mutilated Certificate is surrendered to the Purchase Contract Agent, the Company shall execute and deliver to the Purchase Contract Agent, and
the Purchase Contract Agent shall authenticate, execute on behalf of the Holder, and deliver in exchange therefor, a new Certificate, evidencing the same number of Corporate Units or Treasury Units, as the case may be, and bearing a Certificate
number not contemporaneously outstanding. 
 (b) If there shall be delivered to the Company and the Purchase Contract Agent (i) evidence
to their satisfaction of the destruction, loss or theft of any Certificate, and 

  

 28 

 
(ii) such security or indemnity as may be required by them to hold each of them and any agent of any of them harmless, then, in the absence of notice to
the Company or the Purchase Contract Agent that such Certificate has been acquired by a protected purchaser, the Company shall execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent shall authenticate, execute on behalf
of the Holder, and deliver to the Holder, in lieu of any such destroyed, lost or stolen Certificate, a new Certificate, evidencing the same number of Corporate Units or Treasury Units, as the case may be, and bearing a Certificate number not
contemporaneously outstanding. 
 (c) Notwithstanding the foregoing, the Company shall not be obligated to execute and deliver to the
Purchase Contract Agent, and the Purchase Contract Agent shall not be obligated to authenticate, execute on behalf of the Holder, and deliver to the Holder, with respect to such lost or mutilated Certificate, a new Certificate on or after the
Business Day immediately preceding the earliest of any Early Settlement Date with respect to such lost or mutilated Certificate, any Cash Merger Early Settlement Date with respect to such lost or mutilated Certificate, the Purchase Contract
Settlement Date or the Termination Date. In lieu of delivery of a new Certificate, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer instructions from such Holder,
the Purchase Contract Agent shall: 
 (i) if the Purchase Contract Settlement Date (including upon any Cash Settlement), Early
Settlement Date or Cash Merger Early Settlement Date with respect to such lost, stolen, destroyed or mutilated Certificate has occurred, deliver the shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A
Preferred Stock) issuable in respect of the Purchase Contracts forming a part of the Units evidenced by such Certificate; and 
 (ii) if a Cash Merger Early Settlement or Early Settlement with respect to such lost or mutilated Certificate or a Termination Event shall have occurred prior to the Purchase Contract Settlement Date, or a Cash Settlement shall have
occurred, transfer the Senior Notes, the Treasury Securities or the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as the case may be, evidenced thereby, in each case subject
to the applicable conditions and in accordance with the applicable provisions of Section 3.15 and Article 5 hereof. 
 (d) Upon the
issuance of any new Certificate under this Section, the Company and the Purchase Contract Agent may require the payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any
other fees and expenses (including, without limitation, the fees and expenses of the Purchase Contract Agent) connected therewith. 
 (e)
Every new Certificate issued pursuant to this Section in lieu of any destroyed, lost or stolen Certificate shall constitute an original additional contractual obligation of the Company and of the Holder in respect of the Units evidenced
thereby, whether or not the destroyed, lost or stolen Certificate (and the Units evidenced thereby) shall be at any time enforceable by anyone, and shall be entitled to all the benefits and be subject to all the 

  

 29 

 
obligations of this Agreement equally and proportionately with any and all other Certificates delivered hereunder. 
 (f) The provisions of this Section are exclusive and shall preclude, to the extent lawful, all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Certificates. 
 Section 3.11. Persons Deemed Owners. 

Prior to due presentment of a Certificate for registration of transfer, the Company and the Purchase Contract Agent, and any agent of the Company or
the Purchase Contract Agent, may treat the Person in whose name such Certificate is registered as the owner of the Units evidenced thereby for purposes of (subject to any applicable record date) any payment or distribution on the Applicable
Ownership Interests in Senior Notes or on the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of the definition of such term) (if any), as applicable, payment of Contract Adjustment Payments and performance
of the Purchase Contracts and for all other purposes whatsoever in connection with such Units, whether or not such payment, distribution, or performance shall be overdue and notwithstanding any notice to the contrary, and neither the Company nor the
Purchase Contract Agent, nor any agent of the Company or the Purchase Contract Agent, shall be affected by notice to the contrary. 
 Notwithstanding the foregoing, with respect to any Global Certificate, nothing contained herein shall prevent the Company, the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent, from giving effect to any
written certification, proxy or other authorization furnished by the Depositary (or its nominee), as a Holder, with respect to such Global Certificate, or impair, as between such Depositary and the related Beneficial Owner, the operation of
customary practices governing the exercise of rights of the Depositary (or its nominee) as Holder of such Global Certificate. None of the Company, the Purchase Contract Agent or any agent of the Company or the Purchase Contract Agent will have any
responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Certificate or maintaining, supervising or reviewing any records relating to such beneficial ownership
interests or for the performance by the Depositary, the Depositary Participants or any of the Depositary’s indirect participants under the rules and procedures governing the Depositary. 
 Section 3.12. Cancellation. 
 All
Certificates surrendered for delivery of shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) on or after the Purchase Contract Settlement Date or in connection with an Early Settlement
or a Cash Merger Early Settlement, or for delivery of the Senior Notes underlying the Applicable Ownership Interests in Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be, after the
occurrence of a Termination Event or pursuant to a Cash Settlement, an Early Settlement or a Cash Merger Early Settlement, or upon the registration of transfer or exchange of a Unit, or a Collateral Substitution shall, if surrendered to any Person
other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent along with appropriate written instructions regarding the cancellation thereof and, if not already cancelled, shall be promptly cancelled by it. The Company may at
any time deliver to the Purchase Contract Agent for cancellation any Certificates previously authenticated, executed and 

  

 30 

 
delivered hereunder which the Company may have acquired in any manner whatsoever, and all Certificates so delivered shall, upon an Issuer Order, be promptly
cancelled by the Purchase Contract Agent. No Certificates shall be authenticated, executed on behalf of the Holder and delivered in lieu of or in exchange for any Certificates cancelled as provided in this Section, except as expressly permitted by
this Agreement. All cancelled Certificates held by the Purchase Contract Agent shall be disposed of in accordance with its customary practices. 
 If the Company or any Affiliate of the Company shall acquire any Certificate, such acquisition shall not operate as a cancellation of such Certificate unless and until such Certificate is delivered to the Purchase Contract Agent cancelled
or for cancellation. 
 Section 3.13. Creation of Treasury Units by Substitution of Treasury Securities. 
 (a) Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of
the Corporate Units, and subject to the conditions set forth in this Agreement, a Holder of Corporate Units may, at any time from and after the date of this Agreement and on or prior to the close of business on the second Business Day immediately
preceding the Purchase Contract Settlement Date (except as provided in clause (c) below), effect a Collateral Substitution and separate the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes from the related
Purchase Contracts in respect of such Holder’s Corporate Units by substituting for such Pledged Applicable Ownership Interests in Senior Notes, Treasury Securities in an aggregate principal amount at maturity equal to the aggregate principal
amount of the Senior Notes underlying such Applicable Ownership Interests in Senior Notes; provided that Holders may make such a Collateral Substitution only in integral multiples of 20 Corporate Units. To effect such substitution, the Holder must:

  

	 	(1)	deposit with the Securities Intermediary Treasury Securities having an aggregate principal amount at maturity equal to the aggregate principal amount of the Senior Notes underlying
the Pledged Applicable Ownership Interests in Senior Notes comprising part of such Corporate Units; and 

  

	 	(2)	transfer the Corporate Units to the Purchase Contract Agent accompanied by a notice to the Purchase Contract Agent, substantially in the form of Exhibit C hereto,
(i) stating that the Holder has deposited the relevant amount of Treasury Securities to the Securities Intermediary and (ii) requesting that the Purchase Contract Agent instruct the Collateral Agent to release the Senior Notes underlying
such Corporate Units, whereupon the Purchase Contract Agent shall promptly provide an instruction to such effect to the Collateral Agent, substantially in the form of Exhibit A to the Pledge Agreement. 

 Upon receipt of the Treasury Securities described in clause (1) above and the instruction described in clause (2) above, in accordance with the terms of the
Pledge Agreement, the Collateral Agent will cause the Securities Intermediary to effect the release of such Pledged Applicable Ownership Interests in Senior Notes from the Pledge, free and clear of the Company’s security interest therein, and
the transfer of the Senior Notes underlying such 

  

 31 

 
Pledged Applicable Ownership Interests in Senior Notes to the Purchase Contract Agent on behalf of the Holder. Upon receipt of the Senior Notes underlying
such Pledged Applicable Ownership Interests in Senior Notes, the Purchase Contract Agent shall promptly: 
 (i) cancel the
Corporate Units; 
 (ii) transfer such Senior Notes to the Holder (such Senior Notes shall be tradeable as a separate
security, independent of the resulting Treasury Units); and 
 (iii) authenticate, execute on behalf of such Holder and
deliver Treasury Units in book-entry form, or if applicable, in the form of a Treasury Units Certificate executed by the Company in accordance with Section 3.03 evidencing the same number of Purchase Contracts as were evidenced by the cancelled
Corporate Units. 
 Holders who elect to separate the Applicable Ownership Interest in Senior Notes from the related Purchase Contracts and
to substitute Treasury Securities for such Applicable Ownership Interest in Senior Notes shall be responsible for any fees or expenses (including, without limitation, fees and expenses payable to the Collateral Agent for its services as Collateral
Agent) in respect of the substitution, and neither the Company nor the Purchase Contract Agent shall be responsible for any such fees or expenses. 
 (b) If the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units and subject to the conditions set forth in this Agreement, a Holder
may, at any time from and after the date of this Agreement and on or prior to the close of business on the second Business Day immediately preceding the Purchase Contract Settlement Date (except as provided in clause (c) below), substitute for
the Applicable Ownership Interests in the Treasury Portfolio included in such Corporate Units, Treasury Securities having an aggregate principal amount at maturity equal to the aggregate principal amount of U.S. treasury securities at maturity (as
specified in clause (i) of the definition thereof) in the Treasury Portfolio (as specified in clause (i) of the definition thereof) constituting a part of the Corporate Units for which Collateral Substitution is being effected, but only in integral
multiples of 360,000 Corporate Units. In such an event, the Holder shall transfer Treasury Securities to the Securities Intermediary, and the Purchase Contract Agent shall instruct the Collateral Agent to release the Pledge of and transfer to the
Holder the appropriate Applicable Ownership Interests in the Treasury Portfolio in the manner set forth above (such Treasury Portfolio shall be tradeable as a separate security, independent of the resulting Treasury Unit). 
 (c) Notwithstanding the foregoing, a Holder shall not have the right to effect a Collateral Substitution during the period beginning on the Business Day
immediately preceding the Initial Remarketing Date and ending on the Remarketing Settlement Date. 
 (d) In the event a Holder making a
Collateral Substitution pursuant to this Section 3.13 fails to effect a book-entry transfer of the Corporate Units or fails to deliver Corporate Units Certificates to the Purchase Contract Agent after depositing Treasury Securities 

  

 32 

 
with the Securities Intermediary, any distributions on the Senior Notes underlying the Applicable Ownership Interests in Senior Notes or Applicable Ownership
Interests in the Treasury Portfolio, in each case, constituting a part of such Corporate Units shall be held in the name of the Purchase Contract Agent or its nominee in trust for the benefit of such Holder, until such Corporate Units are so
transferred or the Corporate Units Certificate is so delivered, as the case may be, or, such Holder provides evidence satisfactory to the Company and the Purchase Contract Agent that such Corporate Units Certificate has been destroyed, lost or
stolen, together with any indemnity that may be required by the Purchase Contract Agent and the Company. 
 (e) Except as described in
Section 5.02 or in this Section 3.13 or in connection with a Cash Settlement, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long as the Purchase Contract underlying a Corporate Unit remains in effect,
such Corporate Unit shall not be separable into its constituent parts, and the rights and obligations of the Holder in respect of the Applicable Ownership Interests in Senior Notes or Applicable Ownership Interests in the Treasury Portfolio, as the
case may be, and the Purchase Contract comprising such Corporate Units may be acquired, and may be transferred and exchanged, only as a Corporate Unit. 
 (f) Holders of Treasury Units will be entitled to receive Contract Adjustment Payments until the earliest of a Termination Event, the Purchase Contract Settlement Date, the Cash Merger Early Settlement Date, and the
most recent quarterly payment date on or before any other early settlement of the related Purchase Contracts. 
 Section 3.14.
Recreation of Corporate Units. 
 (a) Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable
Ownership Interests in Senior Notes as a component of the Corporate Units, and subject to the conditions set forth in this Agreement, a Holder of Treasury Units may recreate Corporate Units at any time on or prior to the close of business on the
second Business Day immediately preceding the Purchase Contract Settlement Date (except as provided in clause (c) below), by substituting for Treasury Securities included in such Treasury Units, the Applicable Ownership Interests in Senior
Notes in an aggregate principal amount equal to the aggregate principal amount at maturity of such Treasury Securities; provided that Holders of Treasury Units may only recreate such Corporate Units in integral multiples of 20 Treasury Units. To
recreate Corporate Units, the Holder must: 
  

	 	(1)	deposit with the Securities Intermediary Senior Notes having an aggregate principal amount equal to the aggregate principal amount at maturity of the Pledged Treasury Securities
comprising part of the Treasury Units; and 

  

	 	(2)	 transfer the Treasury Units to the Purchase Contract Agent accompanied by a notice to the Purchase Contract Agent, substantially in the form of Exhibit C
hereto, (i) stating that the Holder has transferred the relevant amount of Senior Notes to the Securities Intermediary and (ii) requesting that the Purchase Contract Agent instruct the Collateral Agent to release the Pledged Treasury
Securities underlying such Treasury Units, whereupon the Purchase Contract Agent shall promptly provide an 

  

 33 

	 	 
instruction to such effect to the Collateral Agent, substantially in the form of Exhibit C to the Pledge Agreement. 

 Upon receipt of the Senior Notes described in clause (1) above and the instruction described in clause (2) above, in accordance with the terms of the Pledge
Agreement, the Collateral Agent will cause the Securities Intermediary to effect the release of the Pledged Treasury Securities having a corresponding aggregate principal amount at maturity from the Pledge, free and clear of the Company’s
security interest therein, and the transfer thereof to the Purchase Contract Agent on behalf of the Holder. Upon receipt of such Treasury Securities, the Purchase Contract Agent shall promptly: 
 (i) cancel the Treasury Units; 
 (ii) transfer the Treasury Securities to the Holder; and 
 (iii) authenticate, execute on
behalf of such Holder and deliver Corporate Units in book-entry form or, if applicable, in the form of a Corporate Units Certificate executed by the Company in accordance with Section 3.03 evidencing the same number of Purchase Contracts as
were evidenced by the cancelled Treasury Units. 
 Holders who elect to recreate Corporate Units shall be responsible for any fees or
expenses (including, without limitation, fees and expenses payable to the Collateral Agent for its services as Collateral Agent) in respect of the recreation, and neither the Company nor the Purchase Contract Agent shall be responsible for any such
fees or expenses. 
 (b) If the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in
Senior Notes as a component of the Corporate Units, a Holder of Treasury Units may at any time on or prior to the close of business on the second Business Day immediately preceding the Purchase Contract Settlement Date (except as provided in clause
(c) below) substitute for Treasury Securities included in such Treasury Units, Applicable Ownership Interests in the Treasury Portfolio in an aggregate principal amount at maturity equal to the aggregate principal amount of U.S. treasury
securities at maturity included in the Applicable Ownership Interests in the Treasury Portfolio, but only in multiples of 360,000 Treasury Units. In such an event, the Holder shall transfer the required Applicable Ownership Interests in the Treasury
Portfolio to the Securities Intermediary, and the Purchase Contract Agent shall instruct the Collateral Agent to release the Pledge of and transfer to the Holder the Pledged Treasury Securities in the manner set forth above. 
 (c) Notwithstanding the foregoing, a Holder shall not have the right to effect a Collateral Substitution during the period beginning on the Business Day
immediately preceding the Initial Remarketing Date and ending on the Remarketing Settlement Date. 
 (d) Except as provided in
Section 5.02 or in this Section 3.14 or in connection with a Cash Settlement, an Early Settlement, a Cash Merger Early Settlement or a Termination Event, for so long as the Purchase Contract underlying a Treasury Unit remains in effect,
such Treasury Unit shall not be separable into its constituent parts and the rights and obligations of the Holder of such Treasury Unit in respect of the 1/20 of a Treasury Security and the Purchase 

  

 34 

 
Contract comprising such Treasury Unit may be acquired, and may be transferred and exchanged, only as a Treasury Unit. 
 Section 3.15. Transfer of Collateral upon Occurrence of Termination Event. 
 (a) Upon the occurrence of a Termination Event and the transfer to the Purchase Contract Agent of the Senior Notes underlying the Pledged Applicable
Ownership Interests in Senior Notes, the Pledged Applicable Ownership Interests in the Treasury Portfolio or the Pledged Treasury Securities, as the case may be, underlying the Corporate Units and the Treasury Units, as the case may be, pursuant to
the terms of the Pledge Agreement, the Purchase Contract Agent shall request transfer instructions with respect to such Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, the Pledged Applicable Ownership Interests in
the Treasury Portfolio or the Pledged Treasury Securities, as the case may be, from each Holder by written request, substantially in the form of Exhibit D hereto, mailed to such Holder at its address as it appears in the Security Register.

 (b) Upon book-entry transfer of the Corporate Units or the Treasury Units or delivery of a Corporate Units Certificate or Treasury Units
Certificate to the Purchase Contract Agent with such transfer instructions, the Purchase Contract Agent shall transfer the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, the Pledged Applicable Ownership Interests
in the Treasury Portfolio or the Pledged Treasury Securities, as the case may be, underlying such Corporate Units or Treasury Units, as the case may be, to such Holder by book-entry transfer, or other appropriate procedures, in accordance with such
instructions and the terms of the Indenture. In the event a Holder of Corporate Units or Treasury Units fails to effect such transfer or delivery, the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, the Pledged
Applicable Ownership Interests in the Treasury Portfolio or the Pledged Treasury Securities, as the case may be, underlying such Corporate Units or Treasury Units, as the case may be, and any distributions thereon, shall be held in the name of the
Purchase Contract Agent or its nominee in trust for the benefit of such Holder, until the earlier to occur of: 
 (i) the
transfer of such Corporate Units or Treasury Units or surrender of the Corporate Units Certificate or Treasury Units Certificate or the receipt by the Company and the Purchase Contract Agent from such Holder of satisfactory evidence that such
Corporate Units Certificate or Treasury Units Certificate has been destroyed, lost or stolen, together with any indemnity that may be required by the Purchase Contract Agent and the Company; and 
 (ii) the expiration of the time period specified in the abandoned property laws of the relevant State in which the Purchase Contract Agent
holds such property. 
 Section 3.16. No Consent to Assumption. 
 Each Holder of a Unit, by acceptance thereof, shall be deemed expressly to have withheld any consent to the assumption under Section 365 of the
Bankruptcy Code or otherwise, of the Purchase Contract by the Company or its trustee, receiver, liquidator or a person or entity 

  

 35 

 
performing similar functions in the event that the Company becomes the debtor under the Bankruptcy Code or subject to other similar state or Federal law
providing for reorganization or liquidation. 
 ARTICLE 4 
 THE APPLICABLE OWNERSHIP INTERESTS IN SENIOR NOTES AND 
 APPLICABLE OWNERSHIP INTERESTS IN THE TREASURY
PORTFOLIO 
 Section 4.01. Interest Payments; Rights to Interest Payments Preserved. 
 (a) Any payment on the Applicable Ownership Interests in Senior Notes or Applicable Ownership Interests in the Treasury Portfolio (as specified in clause
(ii) of the definition thereof), as the case may be, which is paid on any Payment Date (which for purposes of the Payment Date occurring on May 17, 2011 includes the payment of interest on the Senior Notes due on May 15, 2011) shall,
subject to receipt thereof by the Purchase Contract Agent as provided by the terms of the Pledge Agreement, be paid to the Person in whose name the Corporate Units Certificate (or one or more Predecessor Corporate Units Certificates) of which such
Applicable Ownership Interests in Senior Notes or Applicable Ownership Interests in the Treasury Portfolio, as the case may be, forms a part is registered at the close of business on the Record Date for such Payment Date. 
 (b) Each Corporate Units Certificate evidencing Applicable Ownership Interests in Senior Notes or Applicable Ownership Interests in the Treasury
Portfolio delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of any other Corporate Units Certificate shall carry the right to accrued and unpaid interest or distributions, as the case may be, and to accrue
interest or distributions, as the case may be, which were carried by the Applicable Ownership Interests in Senior Notes or Applicable Ownership Interests in the Treasury Portfolio underlying such other Corporate Units Certificate. 
 (c) In the case of any Corporate Unit with respect to which (A) Cash Settlement of the underlying Purchase Contract is properly effected pursuant to
Section 5.02(c) hereof, (B) Early Settlement of the underlying Purchase Contract is properly effected pursuant to Section 5.07 hereof, (C) Cash Merger Early Settlement of the underlying Purchase Contract is properly effected
pursuant to Section 5.04(b)(ii) hereof, (D) a Collateral Substitution is properly effected pursuant to Section 3.13, or (E) a Successful Remarketing occurs with respect to the Senior Note that is part of such Corporate Unit, in
each case on a date that is after any Record Date and prior to or on the next succeeding Payment Date, interest on the Applicable Ownership Interests in Senior Notes or distributions on the Applicable Ownership Interests in the Treasury Portfolio,
as the case may be, underlying such Corporate Unit otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such Cash Settlement, Early Settlement, Cash Merger Early Settlement, Collateral Substitution or
Remarketing, and such payment or distributions shall, subject to receipt thereof by the Purchase Contract Agent, be payable to the Person in whose name the Corporate Units Certificate (or one or more Predecessor Corporate Units Certificates) was
registered at the close of business on the related Record Date. 
 (d) Except as otherwise expressly provided in the immediately preceding
paragraph, in the case of any Corporate Units with respect to which Cash Settlement, Early 

  

 36 

 
Settlement or Cash Merger Early Settlement of the underlying Purchase Contract is properly effected, or with respect to which a Collateral Substitution has
been effected, payments on the related Applicable Ownership Interests in Senior Notes or distributions on the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, that would otherwise be payable or made after the Purchase
Contract Settlement Date, Early Settlement Date, Cash Merger Early Settlement Date or the date of the Collateral Substitution, as the case may be, shall not be payable hereunder to the Holder of such Corporate Units. 
 Section 4.02. Notice and Voting. 
 (a) The Purchase Contract Agent will be entitled to exercise the voting and any other consensual rights pertaining to the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, but only to the extent instructed
in writing by the Holders as described below. Upon receipt of notice of any meeting at which holders of Senior Notes are entitled to vote or upon any solicitation of consents, waivers or proxies of holders of Senior Notes, the Purchase Contract
Agent shall, as soon as practicable thereafter, mail, first class, postage pre-paid, to the Holders of Corporate Units a notice: 
 (i) containing such information as is contained in the notice or solicitation; 
 (ii) stating that each Holder on
the record date set by the Purchase Contract Agent therefor (which, to the extent possible, shall be the same date as the record date for determining the holders of Senior Notes, as the case may be, entitled to vote) shall be entitled to instruct
the Purchase Contract Agent as to the exercise of the voting rights pertaining to such Senior Notes underlying their Corporate Units; and 
 (iii) stating the manner in which such instructions may be given. 
 (b) Upon the written request of the
Holders of Corporate Units on such record date received by the Purchase Contract Agent at least six days prior to such meeting, the Purchase Contract Agent shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the
instructions set forth in such requests, the maximum number of Senior Notes, as the case may be, as to which any particular voting instructions are received. In the absence of specific instructions from the Holder of a Corporate Unit, the Purchase
Contract Agent shall abstain from voting the Senior Notes underlying such Corporate Unit. The Company hereby agrees, if applicable, to solicit Holders of Corporate Units to timely instruct the Purchase Contract Agent in order to enable the Purchase
Contract Agent to vote such Senior Notes. 
 (c) The Holders of Corporate Units and Treasury Units, in such capacities, shall have no voting
or other rights in respect of Common Stock or Series A Preferred Stock. 
  

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 ARTICLE 5 
 THE PURCHASE CONTRACTS 
 Section 5.01. Purchase of Shares of Common Stock. 
 (a) Subject to Section 5.08, each Purchase Contract shall obligate the Holder of the related Units to purchase, and the Company to sell, on the
Purchase Contract Settlement Date at a price equal to the Stated Amount (the “Purchase Price”), a number of newly issued shares of Common Stock (subject to Section 5.09) equal to the Settlement Rate unless an Early Settlement,
a Cash Merger Early Settlement or a Termination Event with respect to the Units of which such Purchase Contract is a part shall have occurred. The “Settlement Rate” is equal to: 
 (i) if the Applicable Market Value is greater than or equal to $7.97 (the “Threshold Appreciation Price”), 6.2775 shares
of Common Stock per Purchase Contract (such Settlement Rate being referred to as the “Minimum Settlement Rate”); 
 (ii) if the Applicable Market Value is less than the Threshold Appreciation Price but greater than $6.75 (the “Reference Price”), the number of shares of Common Stock per Purchase Contact having a value equal to the Stated
Amount divided by the Applicable Market Value; and 
 (iii) if the Applicable Market Value is less than or equal to the
Reference Price, 7.4074 shares of Common Stock per Purchase Contract (such Settlement Rate being referred to as the “Maximum Settlement Rate”); 
 in each case subject to adjustment as provided in Section 5.04 (and in each case rounded upward or downward to the nearest 1/10,000th of a share). 
 (b) Each Holder of a Corporate Unit or a Treasury Unit, by its acceptance of such Unit: 
 (i)
irrevocably authorizes the Purchase Contract Agent to enter into and perform the related Purchase Contract on its behalf as its attorney-in-fact (including, without limitation, the execution of Certificates on behalf of such Holder); 
 (ii) agrees to be bound by the terms and provisions hereof; 
 (iii) covenants and agrees to perform its obligations under such Purchase Contract for so long as such Holder remains a Holder of a
Corporate Unit or a Treasury Unit; 
 (iv) consents to the provisions hereof; 
  

 38 

 (v) irrevocably authorizes the Purchase Contract Agent to enter into and perform this
Agreement and the Pledge Agreement on its behalf and in its name as its attorney-in-fact; 
 (vi) consents to, and agrees to
be bound by, the Pledge of such Holder’s right, title and interest in and to the Collateral Account, including the Applicable Ownership Interests in Senior Notes and the Applicable Ownership Interests in the Treasury Portfolio (as specified in
clause (i) of the definition of such term) or the Treasury Securities pursuant to the Pledge Agreement; and 
 (vii) for
United States federal, state and local income and franchise tax purposes, agrees to (i) treat an acquisition of the Corporate Units as an acquisition of the Applicable Ownership Interest in Senior Notes and Purchase Contract constituting the
Corporate Units, (ii) treat the Senior Notes underlying the Applicable Ownership Interest in Senior Notes as indebtedness and (iii) treat itself as the owner of the applicable interest in the Collateral Account, including the Applicable
Ownership Interests in Senior Notes and the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) or the Treasury Securities. 
 provided that upon a Termination Event, the rights of the Holder of such Units with respect to the occurrence of such Termination Event may be enforced without regard to
any other rights or obligations. 
 (c) Each Holder of a Corporate Unit or a Treasury Unit, by its acceptance thereof, further covenants and
agrees that to the extent and in the manner provided in Section 5.02 hereof and the provisions of the Pledge Agreement, but subject to the terms thereof, Proceeds of the Applicable Ownership Interests in Senior Notes, the Treasury Securities or
the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as applicable, on the Purchase Contract Settlement Date, but only in an amount equal to the Stated Amount per Unit, shall
be paid by the Collateral Agent to the Company in satisfaction of such Holder’s obligations under such Purchase Contract. Notwithstanding the foregoing, any remaining Proceeds of the Applicable Ownership Interests in Senior Notes, the Treasury
Securities or the Applicable Ownership Interests in the Treasury Portfolio, including but not limited to, any amounts in respect of accrued and unpaid interest in respect of the Applicable Ownership Interests in the Senior Notes from, and including,
February 15, 2011 to, but excluding, May 17, 2011, shall be paid to the Holder. 
 (d) Upon registration of transfer of a
Certificate, the transferee shall be bound (without the necessity of any other action on the part of such transferee) by the terms of this Agreement, the Purchase Contracts underlying such Certificate and the Pledge Agreement and the transferor
shall be released from the obligations under this Agreement, the Purchase Contracts underlying the Certificate so transferred and the Pledge Agreement. The Company covenants and agrees, and each Holder of a Certificate, by its acceptance thereof,
likewise covenants and agrees, to be bound by the provisions of this paragraph. 
  

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 Section 5.02. Remarketing; Put Right; Cash Settlement; Payment of Purchase Price. 

(a) Remarketing. 
 (i) The Company shall engage the Remarketing Agent pursuant to the Remarketing Agreement for Remarketing the Senior Notes. On or prior to the close of business on the Business Day immediately preceding the Initial Remarketing Date, the
Purchase Contract Agent shall notify the Remarketing Agent of the aggregate principal amount of Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes, and the Custodial Agent shall notify the Remarketing Agent of the
aggregate principal amount of Separate Senior Notes (if any) that are to be remarketed pursuant to clause (ii) below. Concurrently, the Custodial Agent will deliver for remarketing the Separate Senior Notes to the Remarketing Agent. Upon
receipt of such notice from the Purchase Contract Agent and Custodial Agent, and the Separate Senior Notes for remarketing from the Custodial Agent, the Remarketing Agent will, on the Initial Remarketing Date, use its reasonable efforts to remarket
(based on the Reset Rate and modified maturity date and redemption provisions, if any, each determined in accordance with the Remarketing Agreement) (the “Initial Remarketing”) such Senior Notes underlying Pledged Applicable
Ownership Interests in Senior Notes and Separate Senior Notes on such date at a price of approximately 100% of the sum of the Treasury Portfolio Purchase Price and the Separate Senior Notes Purchase Price. 
 (ii) On or prior to the close of business on the second Business Day immediately preceding the Initial Remarketing Date, but no earlier
than the Payment Date immediately preceding such date, Holders of Separate Senior Notes may elect to have their Separate Senior Notes remarketed under the Remarketing Agreement by delivering their Separate Senior Notes, along with a notice of such
election, substantially in the form of Exhibit F to the Pledge Agreement, to the Custodial Agent. The Custodial Agent shall hold Separate Senior Notes in an account separate from the Collateral Account in which the Pledged Applicable Ownership
Interests in Senior Notes shall be held. Holders of Separate Senior Notes electing to have their Separate Senior Notes remarketed will also have the right to withdraw that election by written notice to the Custodial Agent, substantially in the form
of Exhibit G to the Pledge Agreement, on or prior to the close of business on the second Business Day immediately preceding the Initial Remarketing Date, upon which notice the Custodial Agent shall return such Separate Senior Notes to such
Holder. After such time, the election to have such Separate Senior Notes remarketed in such Remarketing shall become irrevocable. By the close of business on the Business Day immediately preceding the Initial Remarketing Date, the Custodial Agent
shall notify the Remarketing Agent of the aggregate principal amount of the Separate Senior Notes to be remarketed. 
 (iii)
If the Remarketing Agent is able to remarket the Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes and Separate 

  

 40 

 
Senior Notes (if any) at a price equal to or greater than 100% of the Treasury Portfolio Purchase Price and the Separate Senior Notes Purchase Price (a
“Successful Remarketing”), the Collateral Agent shall, in accordance with the Pledge Agreement, cause the Securities Intermediary to transfer the Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes upon
confirmation of deposit by the Remarketing Agent of the proceeds of such Successful Remarketing in the Collateral Account, and the portion of the proceeds from such Successful Remarketing equal to the Treasury Portfolio Purchase Price will be
applied to purchase the Treasury Portfolio. The Treasury Portfolio will be substituted for the Pledged Applicable Ownership Interests in Senior Notes and the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause
(i) of the definition of such term) will be pledged to the Collateral Agent to secure the obligation of the Holders of Corporate Units to pay the Purchase Price for the shares of Common Stock (or, in the circumstances described in
Section 5.08, shares of Series A Preferred Stock) under the related Purchase Contracts on the Purchase Contract Settlement Date. With respect to Separate Senior Notes upon a Successful Remarketing, any proceeds of the Remarketing attributable
to the Separate Senior Notes will be remitted to the Custodial Agent for payment to the holders of Separate Senior Notes. With respect to Pledged Applicable Ownership Interests in Senior Notes, any proceeds of the Successful Remarketing in excess of
the sum of the Treasury Portfolio Purchase Price plus the Separate Senior Notes Purchase Price will be remitted to the Purchase Contract Agent for payment to the Holders of the related Corporate Units. 
 (iv) If the Initial Remarketing is not a Successful Remarketing, it shall be deemed a “Failed Remarketing,” and so long
as no Successful Remarketing has occurred, the Remarketing Agent shall, on each of the four succeeding Business Days until a Successful Remarketing occurs, attempt to remarket the Senior Notes for settlement on the Remarketing Settlement Date. If a
Successful Remarketing has not occurred by the Final Remarketing Date, the Remarketing Agent will promptly return Separate Senior Notes to the Custodial Agent, in accordance with the Pledge Agreement, for delivery to the appropriate Holders.

 (v) Following the occurrence of a Successful Remarketing, the Holders of Corporate Units and the Collateral Agent shall
have such security interests, rights and obligations with respect to the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) as the Holder of Corporate Units and the Collateral
Agent had in respect of the Applicable Ownership Interests in Senior Notes, subject to the Pledge thereof as provided in the Pledge Agreement, and any reference herein or in the Certificates to the Applicable Ownership Interests in Senior Notes
shall be deemed to be a reference to such Applicable Ownership Interests in the Treasury Portfolio and any reference herein or in the Certificates to interest on the Applicable Ownership Interests in Senior Notes shall be deemed to be a reference to
corresponding distributions on such Applicable Ownership Interests in the Treasury Portfolio. The Company may cause to be made in any Corporate Units Certificates thereafter to be issued such change in phraseology and form (but not 

  

 41 

 
in substance) as may be appropriate to reflect the substitution of such Applicable Ownership Interests in the Treasury Portfolio for Applicable Ownership
Interests in Senior Notes. 
 (vi) None of the Purchase Contract Agent, any Holders of Corporate Units or Holders of Senior
Notes underlying Applicable Ownership Interests in Senior Notes or Separate Senior Notes whose Senior Notes are so remarketed will be responsible for the payment of any Remarketing Fee in connection therewith. The Company shall be solely responsible
for the payment of the Remarketing Fee in accordance with the terms of the Remarketing Agreement. 
 (vii) Not later than
seven calendar days nor more than fifteen calendar days prior to the Initial Remarketing Date, the Company shall request the Depositary or its nominee to notify the Beneficial Owners or Depositary Participants holding Units or Separate Senior Notes
of the procedures to be followed in such Remarketing, including the procedures that must be followed if a Holder wishes to exercise its Put Right in the case where a Successful Remarketing does not occur during the Remarketing Period. 
 (viii) The Company agrees to use its commercially reasonable efforts to ensure that, if required by applicable law, a registration
statement with regard to the full amount of the Senior Notes to be remarketed in the Initial Remarketing shall be effective and a related Prospectus shall be available with the Securities and Exchange Commission in a form that will enable the
Remarketing Agent to rely on it in connection with such Remarketing. 
 (ix) If a Successful Remarketing has not occurred by
the Final Remarketing Date, the Company shall cause a notice of a Failed Remarketing to be published (with a copy of such notice to be provided to the Purchase Contract Agent) on the Business Day immediately following the Remarketing Settlement
Date, in a daily newspaper in the English language of general circulation in the City of New York, which is expected to be The Wall Street Journal. 
 (b) Exercise of Put Right. 
 (i) Unless a Successful Remarketing, Early Settlement or Cash Merger Early
Settlement has occurred, or the Purchase Contract Agent has been notified of a Cash Settlement, on or prior to 11:00 a.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date, each Holder of any
Applicable Ownership Interests in Senior Notes that are a component of a Corporate Unit shall be deemed to have automatically exercised such Holder’s Put Right with respect to such Senior Notes and to have authorized the Collateral Agent to
pay, in the manner provided for in the Pledge Agreement, the Purchase Price for the shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) to be issued under the related Purchase Contract
from a portion of the Proceeds of the Put Right in full satisfaction of such Holder’s obligations under the related Purchase Contract; 

  

 42 

 
provided that if the Company shall fail to pay the Put Price when due, the Company shall be deemed to have netted such Holder’s obligation to pay the
Company the Purchase Price under the Purchase Contracts against the Company’s obligation to pay the Put Price, in full satisfaction of such Holder’s obligation under the Purchase Contracts. Any portion of the Put Price in excess of the
Stated Amount, including, but not limited to, any accrued and unpaid interest from, and including, May 15, 2011 to, but excluding, May 17, 2011, shall be remitted to the Holders together with the interest payment on the Senior Notes in
respect of the interest payment date falling on May 15, 2011. 
 (ii) The Put Right of each Holder of Separate Senior
Notes shall only be exercisable upon delivery of a notice to the Indenture Trustee by such Holder on or prior to the close of business on the second Business Day prior to the Purchase Contract Settlement Date. On or prior to the Purchase Contract
Settlement Date, the Company shall deposit with the Indenture Trustee immediately available funds in an amount sufficient to pay, on the Purchase Contract Settlement Date, the aggregate Put Price of all Separate Senior Notes with respect to which a
Holder has exercised a Put Right. In exchange for any Separate Senior Notes surrendered pursuant to the Put Right, the Indenture Trustee shall then distribute such amount to the Holders of such Separate Senior Notes. 
 (iii) Promptly after 11:00 a.m. (New York City time) on the Business Day preceding the Purchase Contract Settlement Date,
the Collateral Agent, based on cash payment received by the Collateral Agent pursuant to Section 5.02(c)(iv) hereof, shall promptly notify the Purchase Contract Agent and the Indenture Trustee of the aggregate principal amount of Senior Notes
underlying the Applicable Ownership Interest in Senior Notes pursuant to which a Put Right has been automatically exercised pursuant to Section 5.02(b)(i) hereof. 
 (c) Cash Settlement. 
 (i) Unless an Early Settlement or a Cash Merger Early
Settlement has occurred, each Holder shall have the right (except as provided in clause (ii) below) to satisfy such Holder’s obligations under the Purchase Contract on the Purchase Contract Settlement Date in cash by notifying the Purchase
Contract Agent by use of a notice in substantially the form of Exhibit E hereto delivered on or prior to 11:00 a.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date of its
intention to pay in cash (“Cash Settlement”), together with the Corporate Units Certificate or the Treasury Units Certificate, unless the Units are then issued in book-entry form, at the Corporate Trust Office. By 11:00 a.m.
(New York City time) on the Business Day immediately preceding the Purchase Contract Settlement Date, the Purchase Contract Agent shall notify the Collateral Agent and the Indenture 

  

 43 

 
Trustee of the receipt of such notices from Holders intending to make a Cash Settlement. 
 (ii) Notwithstanding the foregoing, a Holder shall not have the right to elect Cash Settlement on or prior to the Remarketing Settlement
Date. 
 (iii) Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership
Interests in Senior Notes as a component of the Corporate Units, Holders of Corporate Units may make Cash Settlements only in integral multiples of 20 Corporate Units. If the Applicable Ownership Interests in the Treasury Portfolio have replaced the
Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, Holders of Corporate Units may make Cash Settlements only in integral multiples of 360,000 Corporate Units. Holders of Treasury Units may make Cash Settlements
only in integral multiples of 20 Treasury Units. 
 (iv) A Holder who has so notified the Purchase Contract Agent of its
intention to effect a Cash Settlement shall pay the Purchase Price to the Collateral Agent for deposit in the Collateral Account prior to 11:00 a.m. (New York City time) on the Business Day immediately preceding the Purchase Contract Settlement
Date, in lawful money of the United States by certified or cashiers’ check or wire transfer, in each case in immediately available funds payable to or upon the order of the Securities Intermediary. Any cash so received shall be invested
promptly by the Securities Intermediary in Permitted Investments and paid to the Company on the Purchase Contract Settlement Date in settlement of the Purchase Contracts in accordance with the terms of this Agreement and the Pledge Agreement. Any
funds received by the Securities Intermediary in respect of the investment earnings from such Permitted Investments in excess of the Purchase Price for the shares of Common Stock (or, in the circumstances described in Section 5.08, shares of
Series A Preferred Stock) to be purchased by such Holder shall be distributed to the Purchase Contract Agent when received for payment to the Holder. 
 (v) If a Holder of a Corporate Unit (with respect to which the Applicable Ownership Interest in the Treasury Portfolio has not replaced the Applicable Ownership Interest in Senior Notes as a component of the Corporate
Unit) does not notify the Purchase Contract Agent of its intention to make a Cash Settlement in accordance with Section 5.02(c)(i) above, or does notify the Purchase Contract Agent in accordance with Section 5.02(c)(i) above but fails to
make such payment as required by Section 5.02(c)(iv) above, such Holder shall be deemed to have automatically exercised such Holder’s Put Right as described in paragraph Section 5.02(b)(i) above. 
 (vi) If a Holder of a Treasury Unit or Corporate Unit (with respect to which the Applicable Ownership Interest in the Treasury Portfolio
has replaced the Applicable Ownership Interest in Senior Notes as a component of such Corporate Unit) fails to notify the Purchase Contract Agent of its intention to 

  

 44 

 
make a Cash Settlement in accordance with Section 5.02(c)(i), or does notify the Purchase Contract Agent as provided in Section 5.02(c)(i) of its
intention to pay the Purchase Price in cash, but fails to make such payment as required by Section 5.02(c)(iv), then upon the maturity of the Pledged Treasury Securities or the Pledged Applicable Ownership Interests in the Treasury Portfolio
held by the Securities Intermediary on or prior to the Business Day immediately preceding the Purchase Contract Settlement Date, the principal amount of the Treasury Securities or the Pledged Applicable Ownership Interests in the Treasury Portfolio
received by the Collateral Agent shall be invested promptly in Permitted Investments. On the Purchase Contract Settlement Date, an amount equal to the Purchase Price shall be remitted to the Company as payment of such Holder’s obligation to pay
such Purchase Price under the related Purchase Contracts without receiving any instructions from the Holder. In the event the sum of the Proceeds from the related Pledged Treasury Securities or Pledged Applicable Ownership Interests in the Treasury
Portfolio and the Proceeds from such Permitted Investments is in excess of the aggregate Purchase Price, the Collateral Agent shall cause the Securities Intermediary to distribute such excess to the Purchase Contract Agent for the benefit of the
Holder of the related Treasury Units or Corporate Units when received. 
 (d) Any distribution to Holders of any payments described above
shall be payable at the office of the Purchase Contract Agent in New York City maintained for that purpose or, at the option of the Holder, by check mailed to the address of the Person entitled thereto at such address as it appears on the Security
Register. 
 (e) Upon Cash Settlement of any Purchase Contract: 
 (i) the Collateral Agent will in accordance with the terms of the Pledge Agreement cause the Pledged Applicable Ownership Interests in
Senior Notes, the Pledged Applicable Ownership Interests in the Treasury Portfolio or the Pledged Treasury Securities, as the case may be, underlying the relevant Units to be released from the Pledge, free and clear of any security interest of the
Company, and transferred to the Purchase Contract Agent for delivery to the Holder thereof or its designee as soon as practicable; and 
 (ii) subject to the receipt thereof, the Purchase Contract Agent shall, by book-entry transfer or other appropriate procedures, in accordance with written instructions provided by the Holder thereof, transfer such
Applicable Ownership Interest in Senior Notes, Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) or Treasury Securities, as the case may be (or, if no such instructions are
given to the Purchase Contract Agent by the Holder, the Purchase Contract Agent shall hold such Applicable Ownership Interests in Senior Notes, Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of such term) or Treasury Securities, as the case may be, and any interest payment thereon, in the name of the Purchase Contract Agent or its nominee in trust for the benefit of 

  

 45 

 
such Holder until the expiration of the time period specified in the abandoned property laws of the relevant state where such property is held). 

(f) The obligations of the Holders to pay the Purchase Price are non-recourse obligations and, except to the extent satisfied by Early Settlement,
Cash Merger Early Settlement or Cash Settlement, are payable solely out of the proceeds of any Collateral pledged to secure the obligations of the Holders, and in no event will Holders be liable for any deficiency between the proceeds of the
disposition of Collateral and the Purchase Price. 
 Section 5.03. Issuance of Shares of Common Stock or Series A Preferred
Stock. Unless a Termination Event, an Early Settlement or a Cash Merger Early Settlement shall have occurred, subject to Section 5.04(b), on the Purchase Contract Settlement Date upon receipt of the aggregate Purchase Price payable on all
Outstanding Units, the Company shall issue and deposit with the Purchase Contract Agent, for the benefit of the Holders of the Outstanding Units, one or more certificates representing newly issued shares of Common Stock (or, in the circumstances
described in Section 5.08, shares of Series A Preferred Stock) registered in the name of the Purchase Contract Agent (or its nominee) as custodian for the Holders (such certificates for shares of Common Stock (or, in the circumstances described
in Section 5.08, shares of Series A Preferred Stock), together with any dividends or distributions for which a record date and payment date for such dividend or distribution has occurred after the Purchase Contract Settlement Date, being
hereinafter referred to as the “Purchase Contract Settlement Fund”) to which the Holders are entitled hereunder. 
 Subject
to the foregoing, upon surrender of a Certificate to the Purchase Contract Agent on or after the Purchase Contract Settlement Date, Early Settlement Date or Cash Merger Early Settlement Date, as the case may be, together with settlement instructions
thereon duly completed and executed, the Holder of such Certificate shall be entitled to receive forthwith in exchange therefor a certificate representing that number of newly issued whole shares of Common Stock (or, in the circumstances described
in Section 5.08, shares of Series A Preferred Stock) which such Holder is entitled to receive pursuant to the provisions of this Article 5 (after taking into account all Units then held by such Holder), together with cash in lieu of
fractional shares as provided in Section 5.09 and any dividends or distributions with respect to such shares constituting part of the Purchase Contract Settlement Fund, but without any interest thereon, and the Certificate so surrendered shall
forthwith be cancelled. Such shares shall be registered in the name of the Holder or the Holder’s designee as specified in the settlement instructions provided by the Holder to the Purchase Contract Agent. If any shares of Common Stock (or, in
the circumstances described in Section 5.08, shares of Series A Preferred Stock) issued in respect of a Purchase Contract are to be registered to a Person other than the Person in whose name the Certificate evidencing such Purchase Contract is
registered (but excluding any Depositary or nominee thereof), no such registration shall be made unless the Person requesting such registration has paid any transfer and other taxes required by reason of such registration in a name other than that
of the registered Holder of the Certificate evidencing such Purchase Contract or has established to the satisfaction of the Company that such tax either has been paid or is not payable. Notwithstanding the foregoing, shares of Series A Preferred
Stock need not be issued in whole shares, but may be issued in fractional shares in accordance with Section 5.09(b). 
  

 46 

 Section 5.04. Adjustment of Each Fixed Settlement Rate. 
 (a) Each Fixed Settlement Rate shall be subject to the following adjustments: 
 (i) Stock Dividends. In case the Company shall pay or make a dividend or other distribution on the Common Stock in Common Stock,
each Fixed Settlement Rate, as in effect at the opening of business on the day following the date fixed for the determination of stockholders of the Company entitled to receive such dividend or other distribution shall be increased by dividing each
Fixed Settlement Rate by a fraction of which (A) the numerator shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination and (B) the denominator shall be the sum of such
number of shares and the total number of shares constituting such dividend or other distribution, each such increase to become effective immediately after the opening of business on the day following the date fixed for such determination. For the
avoidance of doubt, if any dividend or distribution described in this paragraph is declared but not so paid or made, the new Fixed Settlement Rate shall be readjusted to the Fixed Settlement Rate that would then be in effect if such dividend or
distribution had not been declared upon the failure to pay or make such dividend or distribution. 
 (ii) Stock Purchase
Rights. In case the Company shall issue to all or substantially all holders of its Common Stock rights, options, warrants or other securities, entitling them to subscribe for or purchase shares of Common Stock for a period expiring within 60
days from the date of issuance of such rights, options, warrants or other securities at a price per share of Common Stock less than the Current Market Price on the date fixed for the determination of stockholders of the Company entitled to receive
such rights, options, warrants or securities (other than pursuant to a dividend reinvestment, share purchase or similar plan), each Fixed Settlement Rate in effect at the opening of business on the day following the date fixed for such determination
shall be increased by dividing each Fixed Settlement Rate by a fraction, (A) the numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of
shares of Common Stock which the aggregate consideration expected to be received by the Company upon the exercise, conversion or exchange of such rights, options, warrants or securities (as determined in good faith by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution) would purchase at such Current Market Price and (B) the denominator of which shall be the number of shares of Common Stock outstanding at the close of business on the date
fixed for such determination plus the number of shares of Common Stock so offered for subscription or purchase, either directly or indirectly, each such increase to become effective immediately after the opening of business on the day following the
date fixed for such determination. For the avoidance of doubt, if any right, option, warrant or other security described in this paragraph is not exercised or converted prior to the expiration of the exercisability or convertibility thereof, the new
Fixed Settlement Rate shall be readjusted to the Fixed Settlement Rate that 

  

 47 

 
would then be in effect if such right, option, warrant or other security had not been so issued upon such expiration. 
 (iii) Stock Splits; Reverse Splits; and Combinations. In case outstanding shares of Common Stock shall be subdivided, split or
reclassified into a greater number of shares of Common Stock, each Fixed Settlement Rate in effect at the opening of business on the day following the day upon which such subdivision, split or reclassification becomes effective shall be
proportionately increased, and, conversely, in case outstanding shares of Common Stock shall each be combined or reclassified into a smaller number of shares of Common Stock, each Fixed Settlement Rate in effect at the opening of business on the day
following the day upon which such combination or reclassification becomes effective shall be proportionately reduced, such increase or reduction, as the case may be, to become effective immediately after the opening of business on the day following
the day upon which such subdivision, split, combination or reclassification becomes effective. 
 (iv) Debt, Asset or
Security Distributions. (1) In case the Company shall, by dividend or otherwise, distribute to all or substantially all holders of its Common Stock evidences of its indebtedness, assets (including cash) or securities (but excluding any
rights, options, warrants or other securities referred to in paragraph (a)(ii) of this Section 5.04, any dividend or distribution paid exclusively in cash referred to in paragraph (a)(v) of this Section 5.04 and any dividend or
distribution of, shares of capital stock of any class or series, or similar equity interests, of or relating to a subsidiary or other business unit in the case of a Spin-Off referred to in the next subparagraph or dividend or distribution referred
to in paragraph (a)(i) of this Section 5.04), each Fixed Settlement Rate shall be increased by dividing each Fixed Settlement Rate in effect immediately prior to the close of business on the date fixed for the determination of stockholders of
the Company entitled to receive such distribution by a fraction, (A) the numerator of which shall be the Current Market Price on the date fixed for such determination less the then fair market value (as determined in good faith by the Board of
Directors, whose determination shall be conclusive and described in a Board Resolution) of the portion of the assets, securities or evidences of indebtedness so distributed applicable to one share of Common Stock and (B) the denominator of
which shall be such Current Market Price, such adjustment to become effective immediately after the opening of business on the day following the date fixed for the determination of stockholders of the Company entitled to receive such distribution.
In any case in which this paragraph (a)(iv)(1) is applicable, paragraph (a)(iv)(2) of this Section 5.04 shall not be applicable. For the avoidance of doubt, if any dividend or distribution described in this paragraph (iv) is declared but
not so paid or made, the new Fixed Settlement Rate shall be readjusted to the Fixed Settlement Rate that would then be in effect if such dividend or distribution had not been declared upon the failure to pay or make such dividend or distribution.

  

 48 

 (2) In the case of a Spin-Off, each Fixed Settlement Rate in effect immediately before
the close of business on the record date fixed for determination of stockholders of the Company entitled to receive that distribution will be increased by dividing each Fixed Settlement Rate by a fraction, the (A) numerator of which is the
Current Market Price and (B) the denominator of which is the Current Market Price plus the Fair Market Value of the portion of those shares of capital stock or similar equity interests so distributed applicable to one share of Common Stock. Any
adjustment to the Fixed Settlement Rate under this paragraph (a)(iv)(2) will occur on the date that is the earlier of (x) the 10th Trading Day from, and including, the effective date of the Spin-Off and (y) the date of the securities being
offered in the Initial Public Offering of the Spin-Off, if that Initial Public Offering is effected simultaneously with the Spin-Off. 
 (v) Cash Distributions. In case the Company shall, by dividend or otherwise, make distributions to all or substantially all holders of the Common Stock exclusively in cash during any quarterly period (excluding
any cash that is distributed in a Reorganization Event to which Section 5.04(b) applies or as part of a distribution referred to in paragraph (a)(iv) of this Section 5.04) in an amount in excess of $0.01 per share of Common Stock (the
“Reference Dividend”), immediately after the close of business on such date for determination, each Fixed Settlement Rate shall be increased by dividing each Fixed Settlement Rate in effect immediately prior to the close of business
on the date fixed for determination of the stockholders of the Company entitled to receive such distribution by a fraction, (A) the numerator of which shall be equal to the Current Market Price on the date fixed for such determination less the
per share amount of the distribution and (B) the denominator of which shall be equal to the Current Market Price on the date fixed for such determination minus the Reference Dividend. 
 The Reference Dividend shall be subject to adjustment on account of the event set forth in paragraphs (i), (ii), (iii), (iv) and
(vi). Any such adjustment shall be effected by multiplying the Reference Dividend by a fraction, the numerator of which will equal the Fixed Settlement Rate in effect immediately prior to the adjustment on account of such events and the denominator
of which will equal the Fixed Settlement Rate as adjusted. For the avoidance of doubt, if any dividend or distribution described in this paragraph (v) is declared but not so paid or made, the new Fixed Settlement Rate shall be readjusted to the
Fixed Settlement Rate that would then be in effect if such dividend or distribution had not been declared upon the failure to pay or make such dividend or distribution. 
 (vi) Tender Offers and Exchange Offers. In the case that a tender or exchange offer made by the Company or any subsidiary of the
Company for all or any portion of the Common Stock shall expire and such tender or exchange offer (as amended through the expiration thereof) shall require the payment to stockholders of the Company (based on the acceptance (up to any maximum

  

 49 

 
specified in the terms of the tender or exchange offer) of Purchased Shares) of an aggregate consideration having a fair market value (as determined in good
faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution) per share of the Common Stock that exceeds the Closing Price of the Common Stock on the Trading Day next succeeding the last date on which
tenders or exchanges may be made pursuant to such tender or exchange offer, then, immediately prior to the opening of business on the day after the date of the last time (the “Expiration Time”) tenders or exchanges could have been
made pursuant to such tender or exchange offer (as amended through the Expiration Time), each Fixed Settlement Rate shall be increased by dividing each Fixed Settlement Rate immediately prior to the close of business on the date of the Expiration
Time by a fraction (A) the numerator of which shall be equal to (x) the product of (I) the Current Market Price on the date of the Expiration Time and (II) the number of shares of Common Stock outstanding (including any tendered or
exchanged shares) on the date of the Expiration Time less (y) the amount of cash plus the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders of the Company pursuant to the tender or exchange offer
(assuming the acceptance, up to any maximum specified in the terms of the tender or exchange offer, of Purchased Shares), and (B) the denominator of which shall be equal to the product of (x) the Current Market Price on the date of the
Expiration Time and (y) the result of (I) the number of shares of Common Stock outstanding (including any tendered or exchanged shares) on the date of the Expiration Time less (II) the number of all shares validly tendered or exchanged,
not withdrawn and accepted for payment on the date of the Expiration Time (such validly tendered or exchanged shares, up to any such maximum, being referred to as the “Purchased Shares”). 
 (vii) If any adjustments are made to each Fixed Settlement Rate pursuant to this Section 5.04(a), an adjustment shall also be made to
the Applicable Market Value solely to determine which of clauses (i), (ii) or (iii) of the definition of Settlement Rate in Section 5.01(a) will apply on the Purchase Contract Settlement Date or any Cash Merger Early Settlement
Date. Such adjustment shall be made by multiplying the Applicable Market Value by the Adjustment Factor. The “Adjustment Factor” means, initially, a fraction the numerator of which shall be the Maximum Settlement Rate immediately
after the first adjustment to each Fixed Settlement Rate pursuant to this Section 5.04(a) and the denominator of which shall be the Maximum Settlement Rate immediately prior to such adjustment. Each time an adjustment is required to be made to
each Fixed Settlement Rate pursuant to this Section 5.04(a), the Adjustment Factor shall be multiplied by a fraction the numerator of which shall be the Maximum Settlement Rate immediately after such adjustment to each Fixed Settlement Rate
pursuant to this Section 5.04(a) and the denominator of which shall be the Maximum Settlement Rate immediately prior to such adjustment. Notwithstanding the foregoing, if any adjustment to each Fixed Settlement Rate is required to be made
pursuant to the occurrence of any of the events contemplated by this Section 5.04(a) during the Observation Period, the 20 individual Volume Weighted Average Prices used to determine the Applicable Market Value shall be 

  

 50 

 
adjusted rather than the Applicable Market Value and the Applicable Market Value shall be determined by (A) multiplying the Volume Weighted Average
Prices for Trading Days prior to such adjustment to each Fixed Settlement Rate by the Adjustment Factor in effect prior to such adjustment, (B) multiplying the Volume Weighted Average Prices for Trading Days following such adjustment by the
Adjustment Factor reflecting such adjustment, and (C) dividing the sum of all such adjusted Volume Weighted Average Prices by 20. 
 (viii) Calculation of Adjustments. All adjustments to the Fixed Settlement Rate shall be calculated to the nearest 1/10,000th of a share of Common Stock (or if there is not a nearest 1/10,000th of a share to
the next lower 1/10,000th of a share). No adjustment in the Fixed Settlement Rate shall be required unless such adjustment would require an increase or decrease of at least one percent therein; provided, that any adjustments which by reason of this
subparagraph are not required to be made shall be carried forward and taken into account in any subsequent adjustment; and provided further that effect shall be given to all adjustments not later than the applicable Cash Merger Early Settlement
Date, Early Settlement Date or Purchase Contract Settlement Date for a Unit. 
 (ix) Increase of Settlement Rate. The
Company may make such increases in the Settlement Rate, in addition to those required by this Section 5.04(a), as the Board of Directors considers advisable in order to avoid or diminish any income tax to any holders of shares of Common Stock
resulting from any dividend or distribution of stock or issuance of rights or warrants to purchase or subscribe for stock or from any event treated as such for income tax purposes or for any other reasons. 
 (x) If the Company hereafter adopts any stockholder rights plan involving the issuance of preference share purchase rights or other
similar rights (the “Rights”) to all holders of the Common Stock, a Holder shall be entitled to receive upon settlement of any Purchase Contract, in addition to the shares of Common Stock issuable upon settlement of such Purchase
Contract, the related Rights for the Common Stock, unless such rights plan has expired or terminated or such Rights under the future stockholder rights plan have separated from the Common Stock at the time of conversion, in which case each
Settlement Rate shall be adjusted as provided in Section 5.04(a)(i) or (iv) on the date such Rights separate from the Common Stock, subject to readjustment in the event of the expiration, termination or redemption of such rights. For the
avoidance of doubt, a distribution of rights pursuant to such a stockholder rights plan shall not trigger a Fixed Settlement Rate adjustment pursuant to Section 5.04(a)(ii) or (iv). 
 No adjustment to the Settlement Rate need be made if Holders may participate in the transaction that would otherwise give rise to an adjustment, so long
as the distributed assets or securities the Holders would receive upon settlement of Units, if convertible, exchangeable, or exercisable, are convertible, exchangeable or exercisable, as applicable, without any loss of rights or privileges for a
period of at least 60 days following settlement of the Units. 
  

 51 

 The Fixed Settlement Rate shall not be adjusted: 
 (1) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable
on the Company’s securities and the investment of additional optional amounts in shares of Common Stock under any plan; 
 (2) upon the
issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its subsidiaries; 
 (3) upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security
outstanding as of the date the Units were first issued; 
 (4) for a change in the par value of the Common Stock; or 
 (5) for accumulated and unpaid dividends, other than to the extent contemplated by Section 5.04(a) hereof. 
 (xi) The reclassification of Common Stock into securities including securities other than Common Stock (other than any reclassification
upon a Reorganization Event to which Section 5.04(b)(i) applies) shall be deemed to involve: 
 (A) a distribution of
such securities other than Common Stock to all holders of Common Stock (and the effective date of such reclassification shall be deemed to be “the date fixed for the determination of shareholders entitled to receive such distribution” and
the “date fixed for such determination” within the meaning of paragraph (iv) of this Section); and 
 (B) a
subdivision, split or combination, as the case may be, of the number of shares of Common Stock outstanding immediately prior to such reclassification into the number of shares of Common Stock outstanding immediately thereafter (and the effective
date of such reclassification shall be deemed to be “the day upon which such subdivision or split becomes effective” or “the day upon which such combination becomes effective,” as the case may be, and “the day upon which
such subdivision, split or combination becomes effective” within the meaning of paragraph (iii) of this Section). 
 (b)
Adjustment for Consolidation, Merger or Other Reorganization Event. 
 (i) Upon a Reorganization Event, each Unit shall
thereafter, in lieu of a variable number of shares of Common Stock, be settled by delivery of a variable number of Exchange Property Units. Following the occurrence of any such event, references in this Agreement to the purchase or issuance of
shares of Common 

  

 52 

 
Stock shall be construed to be references to settlement into Exchange Property Units and references herein to the purchase or issuance of any specified
number of shares of Common Stock upon the settlement of the Purchase Contracts will be construed to be references to settlements into the same number of Exchange Property Units. An “Exchange Property Unit” represents the right to
receive the kind and amount of securities, cash and other property receivable in such Reorganization Event (without any interest thereon, and without any right to dividends or distributions thereon that have a record date that is prior to the
applicable Settlement Date) per share of Common Stock by a holder of Common Stock that is not a Person with which the Company consolidated or into which the Company merged or which merged into the Company or to which such sale, transfer lease or
conveyance was made or with whom shares were exchanged pursuant to any such statutory share exchange, as the case may be (any such Person, a “Constituent Person”), or an Affiliate of a Constituent Person to the extent such
Reorganization Event provides for different treatment of Common Stock held by Affiliates of the Company and non-Affiliates. In the event holders of Common Stock have the opportunity to elect the form of consideration to be received in such
transaction, the Exchange Property Unit that Holders of the Corporate Units or Treasury Units would have been entitled to receive will be deemed to be (A) the weighted average of the types and amounts of consideration received by the holders of
Common Stock that affirmatively make an election or (B) if no holders of Common Stock affirmatively make such an election, the types and amounts of consideration actually received by such holders. The number of Exchange Property Units to be
delivered upon settlement of a Purchase Contract following the effective date of a Reorganization Event shall equal the Settlement Rate, subject to adjustment as provided in Section 5.04, determined as if the references to “shares of
Common Stock” in Section 5.01(a)(i), (ii) and (iii) were to “Exchange Property Units.” 
 In the
event of such a Reorganization Event, the Person formed by such consolidation or merger, the Person which acquires the assets of the Company or the Person with whom such statutory share exchange was made, shall execute and deliver to the Purchase
Contract Agent an agreement supplemental hereto providing that the Holder of each Unit that remains Outstanding after the Reorganization Event (if any) shall have the rights provided by this Section 5.04(b). Such supplemental agreement shall
provide for adjustments to the amount of any securities constituting all or a portion of an Exchange Property Unit which, for events subsequent to the effective date of such Reorganization Event, shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Section 5.04. The above provisions of this Section 5.04(b) shall similarly apply to successive Reorganization Events. 
 (ii) (A) Prior to the Purchase Contract Settlement Date, if the Company enters into a consolidation, acquisition or merger, or a sale of
all or substantially all of the assets of the Company, in each case in which 10% or more of the consideration received by holders of Common Stock consists of cash or cash equivalents (a “Cash Merger”), then following such Cash
Merger a Holder of a Unit will have the right to accelerate and settle (“Cash Merger Early  

  

 53 

 
Settlement”) its Purchase Contract, upon the conditions set forth below, at the Settlement Rate (determined as if the Applicable Market Value
equaled the Stock Price), and receive (unless the price paid per share of Common Stock in the Cash Merger is in excess of $35.00, subject to adjustment) an additional make-whole amount of shares (the “Make-Whole Share Amount”);
provided that no Cash Merger Early Settlement will be permitted pursuant to this Section 5.04(b)(ii) unless, at the time such Cash Merger Early Settlement is effected, there is a Registration Statement in effect and a Prospectus
available with respect to any securities to be issued and delivered in connection with such Cash Merger Early Settlement, if such a Registration Statement and Prospectus are required (in the view of counsel, which need not be in the form of a
written opinion, for the Company) under the Securities Act. If such a Registration Statement and Prospectus are so required, the Company covenants and agrees to use its commercially reasonable efforts to have a Registration Statement in effect and a
related Prospectus available covering any securities to be delivered in respect of the Purchase Contracts being settled, in each case in a form that may be used in connection with such Cash Merger Early Settlement. In the event that a Holder seeks
to exercise its Cash Merger Early Settlement right and a Registration Statement and Prospectus are required to be effective in connection with the exercise of such right but no such Registration Statement is then effective or such Prospectus is
available, the Holder’s exercise of such right shall be void unless and until such a Registration Statement shall be effective and a Prospectus available and the Company shall have no further obligation with respect to any such Registration
Statement or Prospectus if, notwithstanding using its commercially reasonable efforts, no Registration Statement is then effective or Prospectus is available. 
 (B) If a Holder elects a Cash Merger Early Settlement of some or all of its Purchase Contracts, such Holder shall be entitled to receive,
on the Cash Merger Early Settlement Date, the aggregate amount of any accrued and unpaid Contract Adjustment Payments, with respect to such Purchase Contracts. The Company shall pay such amount as a credit against the amount otherwise payable by
such Holder to effect such Cash Merger Early Settlement. 
 (C) Within five Business Days of the completion of a Cash Merger,
the Company shall provide written notice to Holders of Units of such completion of a Cash Merger, which shall specify (1) the deadline for submitting the notice to settle early in cash pursuant to this Section 5.04(b)(ii) and how and where
such notice to settle early should be delivered, (2) the date on which such Cash Merger Early Settlement shall occur (which date shall be at least ten days after the date of the notice but not later than the earlier of (x) 20 days after
the date of such notice and (y) two Business Days prior to the Purchase Contract Settlement Date) (the “Cash Merger Early Settlement Date”), (3) the amount of cash payable in respect of the exercise of such Cash Merger
Early Settlement (giving effect to the credit for any accrued and unpaid Contract Adjustment 

  

 54 

 
Payments as provided in the preceding paragraph), (4) the applicable Settlement Rate, (5) the Make-Whole Share Amount and (6) the amount (per
share of Common Stock) of cash, securities and other consideration receivable by the Holder, including any amount of Contract Adjustment Payments receivable, upon settlement. 
 (D) Corporate Units Holders (unless Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership
Interests in Senior Notes as a component of the Corporate Units) and Treasury Units Holders may only effect Cash Merger Early Settlement pursuant to this Section 5.04(b)(ii) in integral multiples of 20 Corporate Units or Treasury Units, as the
case may be. If Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, Corporate Units Holders may only effect Cash Merger Early Settlement
pursuant to this Section 5.04(b)(ii) in multiples of 360,000 Corporate Units; provided that the Company shall attempt to allow Holders of fewer than 360,000 Corporate Units to exercise the right to effect Cash Merger Early Settlement by
aggregating the total number of Corporate Units in respect of which the Holders have elected to exercise such right. Any such aggregation will be made on a Pro Rata basis to the extent that any such aggregation does not allow each Holder to exercise
such right in full. Other than the provisions relating to timing of notice and settlement, which shall be as set forth above, the provisions of Section 5.01 shall apply with respect to a Cash Merger Early Settlement pursuant to this
Section 5.04(b)(ii). 
 (E) In order to exercise the right to effect Cash Merger Early Settlement with respect to any
Purchase Contracts, the Holder of the Certificate evidencing Units shall deliver to the Purchase Contract Agent, no later than the close of business on the third Business Day immediately preceding the Cash Merger Early Settlement Date, such
Certificate to the Purchase Contract Agent at the Corporate Trust Office duly endorsed for transfer to the Company or in blank with the form of Election to Settle Early on the reverse thereof duly completed and accompanied by payment (payable to the
Company in immediately available funds) in an amount equal to the excess of: 
 (x) product of (1) the Stated Amount
multiplied by (2) the number of Purchase Contracts with respect to which the Holder has elected to effect Cash Merger Early Settlement, over 
 (y) the amount of any accrued and unpaid Contract Adjustment Payments (excluding, if the Cash Merger Early Settlement occurs after the Record Date for such Contract Adjustment Payments, the amount of such payments to
be made on the Payment Date immediately succeeding such Record Date). 
  

 55 

 (F) In the event that Units are held by or through DTC or another Depositary, the
exercise of the right to effect Cash Merger Early Settlement shall occur in conformity with the procedures established by DTC or such Depositary. 
 (G) Upon receipt of any such Certificate and payment of such funds, the Purchase Contract Agent shall pay the Company from such funds the related Purchase Price pursuant to the terms of the related Purchase Contracts,
and notify the Collateral Agent that all the conditions necessary for a Cash Merger Early Settlement by a Holder of Units have been satisfied pursuant to which the Purchase Contract Agent has received from such Holder, and paid to the Company as
confirmed in writing by the Company, the related Purchase Price. 
 (H) Upon receipt by the Collateral Agent of the notice
from the Purchase Contract Agent set forth in the preceding paragraph, the Collateral Agent shall release from the Pledge (1) the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes or the Pledged Applicable
Ownership Interests in the Treasury Portfolio, in the case of a Holder of Corporate Units, or (2) the Pledged Treasury Securities, in the case of a Holder of Treasury Units, in each case with a Value equal to the product of (x) the Stated
Amount multiplied by (y) the number of Purchase Contracts as to which such Holder has elected to effect Cash Merger Early Settlement, and shall instruct the Securities Intermediary to Transfer all such Pledged Applicable Ownership Interests in
the Treasury Portfolio, Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes or Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent for distribution to such Holder, in each case free and clear of
the Pledge. 
 (I) If a Holder properly effects an effective Cash Merger Early Settlement in accordance with the provisions
of this Section 5.04(b)(ii), the Company will deliver (or will cause the Collateral Agent to deliver) to the Holder on the Cash Merger Early Settlement Date: 
 (1) the kind and amount of securities, cash and other property receivable upon such Cash Merger by a Holder of the number of shares of
Common Stock (assuming the Authorized Share Condition has been satisfied) issuable on account of each Purchase Contract if the Purchase Contract Settlement Date had occurred immediately prior to such Cash Merger (based on the Settlement Rate in
effect at such time plus the Make-Whole Share Amount), assuming such Holder of Common Stock is not a Constituent Person or an Affiliate of a Constituent Person to the extent such Cash Merger provides for different treatment of Common Stock held by
Affiliates of the Company and non-Affiliates. In the event holders of Common Stock have the opportunity to elect the form of consideration to be received in the Cash Merger, the kind and amount of 

  

 56 

 
securities, cash and other property receivable by Holders of the Corporate Units or Treasury Units exercising their right to effect a Cash Merger Early
Settlement will be deemed to be (A) the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively make an election or (B) if no holders of Common Stock affirmatively make such an
election, the types and amounts of consideration actually received by such holders. For the avoidance of doubt, for the purposes of determining the Applicable Market Value (in connection with determining the appropriate Settlement Rate to be applied
in the foregoing sentence), the date of the closing of the Cash Merger shall be deemed to be the Purchase Contract Settlement Date; 
 (2) the Senior Notes underlying Pledged Applicable Ownership Interests in Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be, related to the Purchase Contracts with respect
to which the Holder is effecting a Cash Merger Early Settlement; 
 (3) any accrued and unpaid Contract Adjustment Payments
(to the extent such payments are not offset to settle the Purchase Contracts); and 
 (4) if so required under the Securities
Act, a Prospectus as contemplated by this Section 5.04(b)(ii). 
 (J) The Corporate Units or the Treasury Units of the
Holders who do not elect Cash Merger Early Settlement in accordance with Section 5.04(b)(ii) will continue to remain outstanding and be subject to settlement on the Purchase Contract Settlement Date in accordance with the terms hereof.

 (iii) (A) The Make-Whole Share Amounts applicable to a Cash Merger Early Settlement will be determined by reference to the
table below, based on the date on which the Cash Merger becomes effective (the “Effective Date”) and the price (the “Stock Price”) paid per share for Common Stock in such Cash Merger. If holders of Common Stock
receive only cash in such transaction, the Stock Price paid per share will be the cash amount paid per share. Otherwise, the Stock Price paid per share will be the average of the Closing Prices of the Common Stock on the 20 Trading Days prior to,
but not including, the Effective Date of such Cash Merger. 
  

																									
	 Stock Price on Effective Date

	  	  	$ 2.50	  	$ 4.00	  	$ 5.50	  	$ 6.75	  	$ 7.97	  	$ 10.00	  	$ 12.50	  	$ 15.00	  	$ 20.00	  	$ 25.00	  	$ 30.00	  	$35.00
	 Effective Date
	  		  		  		  		  		  		  		  		  		  		  		  	
	 March 12, 2008
	  	3.8034	  	1.6454	  	0.6772	  	0.2346	  	1.0941	  	0.8253	  	0.6485	  	0.5476	  	0.4357	  	0.3707	  	0.3250	  	0.2897
	 May 15, 2009
	  	2.6529	  	1.0134	  	0.2107	  	0.0000	  	0.7524	  	0.5517	  	0.4358	  	0.3768	  	0.3126	  	0.2707	  	0.2377	  	0.2108
	 May 15, 2010
	  	1.5362	  	0.5311	  	0.0000	  	0.0000	  	0.4664	  	0.3112	  	0.2467	  	0.2217	  	0.1892	  	0.1609	  	0.1375	  	0.1192
	 May 17, 2011
	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000

  

 57 

 (B) The Stock Prices set forth in the first row of the table (i.e., the column headers)
will be adjusted upon the occurrence of certain events requiring adjustments to each Fixed Settlement Rate pursuant to Section 5.04(a). 
 (C) Each of the Make-Whole Share Amounts set forth in the table will be subject to adjustment in the same manner as the Fixed Settlement Rates as set forth in Section 5.04(a). 
 (D) If the Stock Price or Effective Date applicable to a Cash Merger is not expressly set forth on the table, then the Make-Whole Share
Amount will be determined as follows: 
 (1) if the Stock Price is between two Stock Price amounts on the table or the
Effective Date is between two dates on the table, the Make-Whole Share Amount will be determined by straight-line interpolation between the Make-Whole Share Amounts set forth for the higher and lower Stock Price amounts and the two dates, as
applicable, based on a 360-day year; 
 (2) if the Stock Price is in excess of $35.00 per share (subject to adjustment as set
forth in Section 5.04(a)), then the Make-Whole Share Amount shall be zero; and 
 (3) if the Stock Price is less than
$2.50 per share (subject to adjustment as set forth in Section 5.04(a)) (the “Minimum Stock Price”), then the Make-Whole Share Amount shall be determined as if the Stock Price equaled the Minimum Stock Price, using
straight-line interpolation, as described in clause (1) above, if the Effective Date is between two dates on the table. 
 (E) All calculations and determinations pursuant to this Section 5.04 shall be made by the Company or its agent. 
 Section 5.05. Notice of Adjustments and Certain Other Events. 
 (a) Whenever the Settlement Rate is adjusted as herein
provided, the Company shall as soon as practicable after an adjustment to the Settlement Rate pursuant to Section 5.04 (or if the Company is not aware of such occurrence, as soon as practicable after becoming so aware): 
 (i) compute the adjusted Fixed Settlement Rate in accordance with Section 5.04 and prepare and transmit to the Purchase Contract
Agent an Officers’ Certificate setting forth the adjusted Fixed Settlement Rate, the method of calculation thereof in reasonable detail, and the facts requiring such adjustment and upon which such adjustment is based; and 
  

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 (ii) provide a written notice to the Holders of the Units of the occurrence of such event
and a statement in reasonable detail setting forth the method by which the adjustment to each Fixed Settlement Rate was determined and setting forth the adjusted Fixed Settlement Rate. 
 (b) The Purchase Contract Agent shall not at any time be under any duty or responsibility to any Holder of Units to determine whether any facts exist
which may require any adjustment of the Fixed Settlement Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the method employed in making the same. The Purchase Contract Agent shall be
fully authorized and protected in relying on any Officers’ Certificate delivered pursuant to Section 5.05(a)(i) and any adjustment contained therein and the Purchase Contract Agent shall not be deemed to have knowledge of any adjustment
unless and until it has received such certificate. The Purchase Contract Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock (or, in the circumstances described in
Section 5.08, shares of Series A Preferred Stock), or of any securities or property, which may at the time be issued or delivered with respect to any Purchase Contract; and the Purchase Contract Agent makes no representation with respect
thereto. The Purchase Contract Agent shall not be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock)
pursuant to a Purchase Contract or to comply with any of the duties, responsibilities or covenants of the Company contained in this Article. 
 Section 5.06. Termination Event; Notice. 
 The Purchase Contracts and all obligations and rights of the Company and the
Holders thereunder, including, without limitation, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments (including any accrued and unpaid Contract Adjustment Payments), if the Company shall
have such obligation, and the rights and obligations of Holders to purchase Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock), shall immediately and automatically terminate, without the
necessity of any notice or action by any Holder, the Purchase Contract Agent or the Company, if, prior to or on the Purchase Contract Settlement Date, a Termination Event shall have occurred. In the event of such a termination of the Purchase
Contracts, Holders will not have a claim in bankruptcy under the Purchase Contract with respect to the Company’s issuance of Common Stock or the right to receive Contract Adjustment Payments. 
 Upon and after the occurrence of a Termination Event, the Units shall thereafter represent the right to receive the Applicable Ownership Interests in
Senior Notes, the Treasury Securities or the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, forming part of such Units, in accordance with the provisions of Section 5.04 of the Pledge Agreement. 
 Upon the occurrence of a Termination Event, the Company shall promptly but in no event later than two Business Days thereafter give written notice to the
Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as they appear in the Security Register. 
  

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 Section 5.07. Early Settlement. (a) Subject to and upon compliance with the provisions
of this Section 5.07, at the option of the Holder thereof, Purchase Contracts underlying Units may be settled (“Early Settlement”) at any time prior to 5:00 p.m. (New York City time) on the second Business Day immediately
preceding the Purchase Contract Settlement Date (except as provided in clause (c) below); provided that no Early Settlement will be permitted pursuant to this Section 5.07 unless, at the time such Early Settlement is effected, there is an
effective Registration Statement and Prospectus available with respect to any securities to be issued and delivered in connection with such Early Settlement, if such a Registration Statement and Prospectus are required (in the view of counsel, which
need not be in the form of a written opinion, for the Company) under the Securities Act. If such a Registration Statement and Prospectus are so required, the Company covenants and agrees to use commercially reasonable efforts to have a Registration
Statement in effect and Prospectus available covering any securities to be delivered in respect of the Purchase Contracts being settled, in each case in a form that may be used in connection with such Early Settlement. Should the Company be unable
to deliver registered shares of Common Stock or other securities to be delivered in respect of the Purchase Contracts, the Holder shall not be able to elect an Early Settlement until such time that registered shares of Common Stock or other
securities are available, and if this occurs there is no obligation on the part of the Company to net cash settle the Purchase Contracts. 
 (b) In order to exercise the right to effect Early Settlement with respect to any Purchase Contracts, the Holder of the Certificate evidencing Units shall deliver, at any time prior to 5:00 p.m. (New York City time) on the second Business
Day immediately preceding the Purchase Contract Settlement Date (except as provided in clause (c) below), such Certificate to the Purchase Contract Agent at the Corporate Trust Office duly endorsed for transfer to the Company or in blank with
the form of Election to Settle Early on the reverse thereof duly completed and accompanied by payment (payable to the Company in immediately available funds) in an amount (the “Early Settlement Amount”) equal to the sum of:

 (i) the product of (A) the Stated Amount multiplied by (B) the number of Purchase Contracts with respect to which
the Holder has elected to effect Early Settlement, plus 
 (ii) if such delivery is made with respect to any Purchase
Contracts during the period after the close of business on any Record Date next preceding any Payment Date and prior to the opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments payable on such Payment Date
with respect to all such Purchase Contracts. 
 In the case of Book-Entry Interests, each Beneficial Owner electing Early Settlement must
deliver the Early Settlement Amount to the Purchase Contract Agent along with a facsimile of the Election to Settle Early form duly completed, make book-entry transfer of such Book-Entry Interests and comply with the applicable procedures of the
Depositary. 
 (c) Notwithstanding the foregoing, a Holder shall not have the right to elect Early Settlement during the period beginning on
and including the Business Day immediately preceding the Initial Remarketing Date and ending on and including the Remarketing Settlement Date. 
  

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 (d) Except as provided in Section 5.07(b)(ii) above, no payment shall be made upon Early Settlement
of any Purchase Contract on account of any Contract Adjustment Payments accrued on such Purchase Contract or on account of any dividends on the Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred
Stock) issued upon such Early Settlement. If the foregoing requirements are first satisfied with respect to Purchase Contracts underlying any Units on or prior to 5:00 p.m. (New York City time) on a Business Day, such day shall be the “Early
Settlement Date” with respect to such Units and if such requirements are first satisfied after 5:00 p.m. (New York City time) on a Business Day or on a day that is not a Business Day, the “Early Settlement Date” with
respect to such Units shall be the next succeeding Business Day. 
 (e) Upon the receipt of such Certificate and Early Settlement Amount from
the Holder, the Purchase Contract Agent shall pay to the Company such Early Settlement Amount, the receipt of which payment the Company shall confirm in writing. The Purchase Contract Agent shall then, in accordance with Section 5.06 of the
Pledge Agreement, notify the Collateral Agent that (A) such Holder has elected to effect an Early Settlement, which notice shall set forth the number of such Purchase Contracts as to which such Holder has elected to effect Early Settlement,
(B) the Purchase Contract Agent has received from such Holder, and paid to the Company as confirmed in writing by the Company, the related Early Settlement Amount and (C) all conditions to such Early Settlement have been satisfied.

 (f) Holders of Corporate Units or Treasury Units may only effect Early Settlement pursuant to this Section 5.07 in integral multiples
of 20 Treasury Units; provided that if the Applicable Ownership Interest in the Treasury Portfolio has replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, Corporate Units Holders may only effect Early
Settlement pursuant to this Section 5.07 in integral multiples of 360,000 Corporate Units. 
 (g) Upon Early Settlement of the Purchase
Contracts, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments (including any accrued and unpaid Contract Adjustment Payments) with respect to such Purchase Contracts shall immediately and
automatically terminate (unless such Early Settlement occurs after the close of business on a Record Date and on or prior to the next succeeding Payment Date, in which case the Contract Adjustment Payment due and payable on such Payment Date will be
paid to the Person who was the record holder of the applicable Equity Units on the applicable Record Date). 
 (h) Upon Early Settlement of
Purchase Contracts by a Holder of the related Units, the Company shall issue, and the Holder shall be entitled to receive (subject to Section 5.08), 6.2775 shares of Common Stock on account of each Purchase Contract as to which Early Settlement
is effected (the “Early Settlement Rate”), which is equivalent to the Minimum Settlement Rate. The Early Settlement Rate shall be adjusted in the same manner and at the same time as the Settlement Rate is adjusted pursuant to
Section 5.04. 
  

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 (i) No later than the third Business Day after the applicable Early Settlement Date, the Company shall
cause: 
 (i) the shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A
Preferred Stock) issuable upon Early Settlement of Purchase Contracts to be issued and delivered, together with payment in lieu of any fraction of a share, as provided in Section 5.09; and 
 (ii) the Pledged Applicable Ownership Interests in Senior Notes or the Pledged Applicable Ownership Interests in the Treasury Portfolio,
as applicable, in the case of Corporate Units, or the related Pledged Treasury Securities, in the case of Treasury Units, to be released from the Pledge by the Collateral Agent and transferred, in each case, to the Purchase Contract Agent for
delivery to the Holder thereof or its designee. 
 (j) Upon Early Settlement of any Purchase Contracts, and subject to receipt of shares of
Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) from the Company and the Applicable Ownership Interests in Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio or
Treasury Securities, as the case may be, from the Securities Intermediary, as applicable, the Purchase Contract Agent shall, in accordance with the instructions provided by the Holder thereof in accordance with the procedures established by the
Depositary or on the applicable form of Election to Settle Early on the reverse of the Certificate evidencing the related Units: 
 (i) transfer to the Holder Senior Notes underlying the Applicable Ownership Interests in Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities, as the case may be, forming a part of such Units,

 (ii) deliver to the Holder a certificate or certificates for the full number of shares of Common Stock (or, in the
circumstances described in Section 5.08, shares of Series A Preferred Stock) issuable upon such Early Settlement, together with payment in lieu of any fraction of a share, as provided in Section 5.09, and 
 (iii) if so required under the Securities Act, deliver a Prospectus for the shares of Common Stock (or, in the circumstances described in
Section 5.08, shares of Series A Preferred Stock) issuable upon such Early Settlement as contemplated by Section 5.07(a). 
 (k) In
the event that Early Settlement is effected with respect to Purchase Contracts underlying less than all the Units evidenced by a Certificate, upon such Early Settlement the Company shall execute and the Purchase Contract Agent shall execute on
behalf of the Holder, authenticate and deliver to the Holder thereof, at the expense of the Company, a Certificate evidencing the Units as to which Early Settlement was not effected. 
 (l) A Holder of a Unit who effects Early Settlement may elect to have the Senior Notes no longer a part of a Corporate Unit remarketed in accordance with
the provisions of Section 5.02(a). 
  

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 Section 5.08. Purchase of Shares of Series A Preferred Stock. 
 (a) On the Purchase Contract Settlement Date, Early Settlement Date or Cash Merger Early Settlement Date, as applicable, if the Authorized Share Condition
has not been satisfied on or prior to such date, the Purchase Contract shall obligate the Holder of the related Units to purchase, and the Company to sell, at the Purchase Price, a number of newly issued shares of Series A Preferred Stock in lieu of
Common Stock, unless a Termination Event with respect to the Units of which such Purchase Contract is a part shall have occurred. The number of shares of Series A Preferred Stock that the Holder will receive shall be equal to the product of
(i) the Conversion Ratio multiplied by (ii) the number of shares of Common Stock the Holder would have otherwise received, as if the Authorized Share Condition had been satisfied, pursuant to the Settlement Rate (combined with any
Make-Whole Share Amount, if applicable, pursuant to Section 5.04(b)(iii)) or Early Settlement Rate. 
 Section 5.09. No
Fractional Shares. 
 (a) No fractional shares or scrip representing fractional shares of Common Stock shall be issued or delivered upon
settlement on the Purchase Contract Settlement Date, or upon Early Settlement or Cash Merger Early Settlement of any Purchase Contracts. If Certificates evidencing more than one Purchase Contract shall be surrendered for settlement at one time by
the same Holder, the number of full shares of Common Stock which shall be delivered upon settlement shall be computed on the basis of the aggregate number of Purchase Contracts evidenced by the Certificates so surrendered. Instead of any fractional
share of Common Stock which would otherwise be deliverable upon settlement of any Purchase Contracts on the Purchase Contract Settlement Date, or upon Early Settlement or Cash Merger Early Settlement, the Company, through the Purchase Contract
Agent, shall make a cash payment in respect of such fractional interest in an amount equal to the percentage of such fractional share multiplied by the Applicable Market Value calculated as if the date of such settlement were the Purchase Contract
Settlement Date. The Company shall provide the Purchase Contract Agent from time to time with sufficient funds to permit the Purchase Contract Agent to make all cash payments required by this Section 5.09 in a timely manner. 
 (b) Fractional shares of Series A Preferred Stock may be issued down to 1/100th of a share. 
 Section 5.10. Charges and
Taxes. 
 The Company will pay all stock transfer and similar taxes attributable to the initial issuance and delivery of the shares of
Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) pursuant to the Purchase Contracts; provided, however, that the Company shall not be required to pay any such tax or taxes which may be
payable in respect of any exchange of or substitution for a Certificate evidencing a Unit or any issuance of a share of Common Stock (or, in the circumstances described in Section 5.08, a share of Series A Preferred Stock) in a name other than
that of the registered Holder of a Certificate surrendered in respect of the Units evidenced thereby, other than in the name of the Purchase Contract Agent, as custodian for such Holder, and the Company shall not be required to issue or deliver such
share certificates or Certificates unless or until the Person or Persons 

  

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requesting the transfer or issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid. 
 Section 5.11. Contract Adjustment Payments. 
 (a) Subject to Section 5.11(d), the Company shall pay, on each Payment Date, the Contract Adjustment Payments payable in respect of each Purchase
Contract to the Person in whose name a Certificate is registered at the close of business on the Record Date relating to such Payment Date. The Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in the Borough
of Manhattan, New York City maintained for that purpose and the Purchase Contract Agent shall hold Contract Adjustment Payments received for the benefit of the Holders of the Purchase Contracts relating to the Units. If the book-entry system for the
Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire
transfer to the account designated by such Person by a prior written notice to the Purchase Contract Agent. If any date on which Contract Adjustment Payments are to be made is not a Business Day, then payment of the Contract Adjustment Payments
payable on such date will be made on the next succeeding day that is a Business Day, with the same force and effect as if made on that Payment Date (and without any interest in respect of any such delay). Contract Adjustment Payments payable for any
period will be computed on the basis of a 360-day year of twelve 30-day months. The Contract Adjustment Payments will accrue from March 12, 2008. 
 (b) Upon the occurrence of a Termination Event, the Company’s obligation to pay future Contract Adjustment Payments (including any accrued Contract Adjustment Payments) shall cease. 
 (c) Each Certificate delivered under this Agreement upon registration of transfer of or in exchange for or in lieu of (including as a result of a
Collateral Substitution or the recreation of Corporate Units) any other Certificate shall carry the right to accrued and unpaid Contract Adjustment Payments, which right was carried by the Purchase Contracts underlying such other Certificates.

 (d) In the case of any Unit with respect to which Early Settlement or Cash Merger Early Settlement of the underlying Purchase Contract is
effected on a date that is after any Record Date and prior to or on the next succeeding Payment Date, accrued and unpaid Contract Adjustment Payments otherwise payable on such Payment Date shall be payable on such Payment Date notwithstanding such
Early Settlement or Cash Merger Early Settlement, and such Contract Adjustment Payments shall be paid to the Person in whose name the Certificate evidencing such Unit is registered at the close of business on such Record Date. Except as otherwise
expressly provided in the immediately preceding sentence, and the right to receive accrued and unpaid Contract Adjustment Payments as set forth in Section 5.04(b)(ii), in the case of any Unit with respect to which Early Settlement or Cash
Merger Early Settlement of the underlying Purchase Contract is effected, Contract Adjustment Payments that would otherwise be payable after the Early Settlement or Cash Merger Early Settlement Date with respect to such Purchase Contract shall not be
payable. 
  

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 (e) The Company’s obligations with respect to Contract Adjustment Payments, if any, will be
subordinated and junior in right of payment to the Company’s obligations under any Senior Indebtedness. 
 (f) In the event (x) of
any payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, to creditors upon any dissolution, winding-up, liquidation or reorganization of the Company, whether voluntary or
involuntary or in bankruptcy, insolvency, receivership or other proceedings, or (y) subject to the provisions of Section 5.11(h) below, that (i) a default shall have occurred and be continuing with respect to the payment of principal,
interest or any other monetary amounts due and payable on any Senior Indebtedness and such default shall have continued beyond the period of grace, if any, specified in the instrument evidencing such Senior Indebtedness (and the Purchase Contract
Agent shall have received written notice thereof from the Company or one or more holders of Senior Indebtedness or their representative or representatives or the trustee or trustees under any indenture pursuant to which any such Senior Indebtedness
may have been issued), or (ii) the maturity of any Senior Indebtedness shall have been accelerated because of a default in respect of such Senior Indebtedness (and the Purchase Contract Agent shall have received written notice thereof from the
Company or one or more holders of Senior Indebtedness or their representative or representatives or the trustee or trustees under any indenture pursuant to which any such Senior Indebtedness may have been issued), then: 
 (i) the holders of all Senior Indebtedness shall first be entitled to receive, in the case of clause (x) above, payment of all
amounts due or to become due upon all Senior Indebtedness and, in the case of subclauses (i) and (ii) of clause (y) above, payment of all amounts due thereon, or provision shall be made for such payment in money or money’s worth,
before the Holders of any of the Units are entitled to receive any Contract Adjustment Payments on the Purchase Contracts underlying the Units; 
 (ii) any payment by, or distribution of assets of, the Company of any kind or character, whether in cash, property or securities, to which the Holders of any of the Units would be entitled except for the provisions of
Section 5.11(e) through (q), including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company being subordinated to the payment of such Contract Adjustment Payments
on the Purchase Contracts underlying the Units, shall be paid or delivered by the Person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the representative or
representatives of the holders of Senior Indebtedness or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining
unpaid on account of such Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid after giving effect to any concurrent payment or distribution (or provision
therefor) to the holders of such Senior Indebtedness, before any payment or distribution is made of such Contract Adjustment Payments to the Holders of such Units; and 
  

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 (iii) in the event that, notwithstanding the foregoing, any payment by, or distribution
of assets of, the Company of any kind or character, whether in cash, property or securities, including any such payment or distribution which may be payable or deliverable by reason of the payment of any other indebtedness of the Company being
subordinated to the payment of Contract Adjustment Payments on the Purchase Contracts underlying the Units, shall be received by the Purchase Contract Agent or the Holders of any of the Units when such payment or distribution is prohibited pursuant
to Section 5.11(e) through (q), such payment or distribution shall be paid over to the representative or representatives of the holders of Senior Indebtedness or to the trustee or trustees under any indenture pursuant to which any instruments
evidencing any such Senior Indebtedness may have been issued, ratably as aforesaid, for application to the payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to
any concurrent payment or distribution (or provision therefor) to the holders of such Senior Indebtedness. 
 (g) For purposes of
Section 5.11(e) through (q), the words “cash, property or securities” shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other Person provided for by a plan
of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in Section 5.11(e) through (q) with respect to such Contract Adjustment Payments on the Units to the payment of all Senior Indebtedness
which may at the time be outstanding; provided that (i) the indebtedness or guarantee of indebtedness, as the case may be, that constitutes Senior Indebtedness is assumed by the Person, if any, resulting from any such reorganization or
readjustment, and (ii) the rights of the holders of the Senior Indebtedness are not, without the consent of each such holder adversely affected thereby, altered by such reorganization or readjustment; 
 (h) Any failure by the Company to make any payment on or perform any other obligation under Senior Indebtedness, other than any indebtedness incurred by
the Company or assumed or guaranteed, directly or indirectly, by the Company for money borrowed (or any deferral, renewal, extension or refunding thereof) or any indebtedness or obligation as to which the provisions of Section 5.11(e) through
(q) shall have been waived by the Company in the instrument or instruments by which the Company incurred, assumed, guaranteed or otherwise created such indebtedness or obligation, shall not be deemed a default or event of default if
(i) the Company shall be disputing its obligation to make such payment or perform such obligation and (ii) either (A) no final judgment relating to such dispute shall have been issued against the Company which is in full force and
effect and is not subject to further review, including a judgment that has become final by reason of the expiration of the time within which a party may seek further appeal or review, and (B) in the event a judgment that is subject to further
review or appeal has been issued, the Company shall in good faith be prosecuting an appeal or other proceeding for review and a stay of execution shall have been obtained pending such appeal or review. 
 (i) Subject to the irrevocable payment in full of all Senior Indebtedness, the Holders of the Units shall be subrogated (equally and ratably with the
holders of all obligations of the Company which by their express terms are subordinated to Senior Indebtedness of the 

  

 66 

 
Company to the same extent as payment of the Contract Adjustment Payments in respect of the Purchase Contracts underlying the Units is subordinated and which
are entitled to like rights of subrogation) to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to the Senior Indebtedness until all such Contract
Adjustment Payments owing on the Units shall be paid in full, and as between the Company, its creditors other than holders of such Senior Indebtedness and the Holders, no such payment or distribution made to the holders of Senior Indebtedness by
virtue of Section 5.11(e) through (q) that otherwise would have been made to the Holders shall be deemed to be a payment by the Company on account of such Senior Indebtedness, it being understood that the provisions of Section 5.11(e)
through (q) are and are intended solely for the purpose of defining the relative rights of the Holders, on the one hand, and the holders of Senior Indebtedness, on the other hand. 
 (j) Nothing contained in Section 5.11(e) through (q) or elsewhere in this Agreement or in the Units is intended to or shall impair, as among
the Company, its creditors other than the holders of Senior Indebtedness and the Holders, the obligation of the Company, which is absolute and unconditional, to pay to the Holders such Contract Adjustment Payments on the Units as and when the same
shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders and creditors of the Company other than the holders of Senior Indebtedness, nor shall anything herein or therein
prevent the Purchase Contract Agent or any Holder from exercising all remedies otherwise permitted by applicable law upon default under this Agreement, subject to the rights, if any, under Section 5.11(e) through (q), of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. 
 (k) Upon payment or
distribution of assets of the Company referred to in Section 5.11(e) through (q), the Purchase Contract Agent and the Holders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which any such
dissolution, winding up, liquidation or reorganization proceeding affecting the affairs of the Company is pending or upon a certificate of the trustee in bankruptcy, receiver, assignee for the benefit of creditors, liquidating trustee or Purchase
Contract Agent or other person making any payment or distribution, delivered to the Purchase Contract Agent or to the Holders, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the
Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to these Section 5.11(e) through (q). 
 (l) The Purchase Contract Agent shall be entitled to rely on the delivery to it of a written notice by a Person representing himself to be a holder of
Senior Indebtedness (or a trustee or representative on behalf of such holder) to establish that such notice has been given by a holder of Senior Indebtedness or a trustee or representative on behalf of any such holder or holders. In the event that
the Purchase Contract Agent determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to Section 5.11(e) through
(q), the Purchase Contract Agent may request such Person to furnish evidence to the reasonable satisfaction of the Purchase Contract Agent as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts 

  

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pertinent to the rights of such Person under Section 5.11(e) through (q), and, if such evidence is not furnished, the Purchase Contract Agent may defer
payment to such Person pending judicial determination as to the right of such Person to receive such payment. 
 (m) Nothing contained in
Section 5.11(e) through (q) shall affect the obligations of the Company to make, or prevent the Company from making, payment of the Contract Adjustment Payments, except as otherwise provided in these Section 5.11(e) through (q).

 (n) Each Holder of Units, by its acceptance thereof, authorizes and directs the Purchase Contract Agent on its behalf to take such action
as may be necessary or appropriate to effectuate the subordination provided in Section 5.11(e) through (q) and appoints the Purchase Contract Agent its attorney-in-fact, as the case may be, for any and all such purposes. 
 (o) The Company shall give prompt written notice to the Purchase Contract Agent of any fact known to the Company that would prohibit the making of any
payment of moneys to or by the Purchase Contract Agent in respect of the Units pursuant to the provisions of this Section. Notwithstanding the provisions of Section 5.11(e) through (q) or any other provisions of this Agreement, the
Purchase Contract Agent shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of moneys to or by the Purchase Contract Agent, or the taking of any other action by the Purchase Contract Agent,
unless and until a Responsible Officer of the Purchase Contract Agent shall have received written notice thereof mailed or delivered to the Purchase Contract Agent at its Corporate Trust Office from the Company, any Holder, or the holder or
representative of any Senior Indebtedness; provided that if at least two Business Days prior to the date upon which by the terms hereof any such moneys may become payable for any purpose, the Purchase Contract Agent shall not have received with
respect to such moneys the notice provided for in this Section, then, anything herein contained to the contrary notwithstanding, the Purchase Contract Agent shall have full power and authority to receive such moneys and to apply the same to the
purpose for which they were received and shall not be affected by any notice to the contrary that may be received by it within two Business Days prior to or on or after such date. 
 (p) The Purchase Contract Agent in its individual capacity shall be entitled to all the rights set forth in this Section with respect to any Senior
Indebtedness at the time held by it, to the same extent as any other holder of Senior Indebtedness and nothing in this Agreement shall deprive the Purchase Contract Agent of any of its rights as such holder. 
 (q) No right of any present or future holder of any Senior Indebtedness to enforce the subordination herein shall at any time or in any way be prejudiced
or impaired by any act or failure to act on the part of the Company or by any noncompliance by the Company with the terms, provisions and covenants of this Agreement, regardless of any knowledge thereof which any such holder may have or be otherwise
charged with. 
 (r) Nothing in this Section 5.11 shall apply to claims of, or payments to, the Purchase Contract Agent under or
pursuant to Section 7.07. 
  

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 (s) With respect to the holders of Senior Indebtedness, (i) the duties and obligations of the
Purchase Contract Agent shall be determined solely by the express provisions of this Agreement; (ii) the Purchase Contract Agent shall not be liable to any such holders if it shall, acting in good faith, mistakenly pay over or distribute to the
Holders or to the Company or any other Person cash, property or securities to which any holders of Senior Indebtedness shall be entitled by virtue of this Section 5.11 or otherwise; (iii) no implied covenants or obligations shall be read
into this Agreement against the Purchase Contract Agent; and (iv) the Purchase Contract Agent shall not be deemed to be a fiduciary as to such holders. 
 ARTICLE 6 
 REMEDIES 
 Section 6.01. Unconditional Right of Holders to Receive Contract Adjustment Payments and To Purchase Shares of Common Stock or Series A Preferred Stock. 
 Each Holder of a Unit shall have the right, which is absolute and unconditional, (i) subject to Article 5, to receive each Contract Adjustment
Payment with respect to the Purchase Contract comprising part of such Unit on the respective Payment Date for such Unit and (ii) except upon and following a Termination Event, to purchase shares of Common Stock (or, in the circumstances
described in Section 5.08, shares of Series A Preferred Stock) pursuant to such Purchase Contract and, in each such case, to institute suit for the enforcement of any such right to receive Contract Adjustment Payments and the right to purchase
shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock), and such rights shall not be impaired without the consent of such Holder. 
 Section 6.02. Restoration of Rights and Remedies. 
 If any Holder has instituted any proceeding to enforce any right or remedy under this Agreement and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to such Holder,
then and in every such case, subject to any determination in such proceeding, the Company and such Holder shall be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of such Holder shall
continue as though no such proceeding had been instituted. 
 Section 6.03. Rights and Remedies Cumulative. 
 Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Certificates in the last paragraph of
Section 3.10, no right or remedy herein conferred upon or reserved to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every
other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy. 
  

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 Section 6.04. Delay or Omission Not Waiver. 
 No delay or omission of any Holder to exercise any right upon a default or remedy upon a default shall impair any such right or remedy or constitute a
waiver of any such right. Every right and remedy given by this Article or by law to the Holders may be exercised from time to time, and as often as may be deemed expedient, by such Holders. 
 Section 6.05. Undertaking for Costs. 
 All parties to this Agreement agree, and each Holder of a Unit, by its acceptance of such Unit shall be deemed to have agreed, that any court of competent jurisdiction may in its discretion require, in any suit for the enforcement of any
right or remedy under this Agreement, or in any suit against the Purchase Contract Agent for any action taken, suffered or omitted by it as Purchase Contract Agent, the filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and costs against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made
by such party litigant; provided that the provisions of this Section shall not apply to any suit instituted by the Purchase Contract Agent, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% of the
Outstanding Units, or to any suit instituted by any Holder for the enforcement of interest on any Senior Notes underlying such Holder’s Applicable Ownership Interests in Senior Notes or Contract Adjustment Payments on or after the respective
Payment Date therefor in respect of any Unit held by such Holder, or for enforcement of the right to purchase shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) under the Purchase
Contracts constituting part of any Unit held by such Holder. 
 Section 6.06. Waiver of Stay or Extension Laws. 
 The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Agreement; and the Company (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 hinder, delay or impede the execution of any power herein granted to the Purchase Contract Agent or the Holders, but will suffer and permit the execution
of every such power as though no such law had been enacted. 
 ARTICLE 7 
 THE PURCHASE CONTRACT AGENT 
 Section 7.01. Certain Duties and
Responsibilities. 
 (a) The Purchase Contract Agent: 
 (i) undertakes to perform such duties and only such duties as are specifically set forth in this Agreement, the Pledge Agreement and the
Remarketing Agreement to be performed by the Purchase Contract Agent and no 

  

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implied covenants or obligations shall be read into this Agreement, the Pledge Agreement or the Remarketing Agreement against the Purchase Contract Agent;
and 
 (ii) in the absence of bad faith on its part, 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 Purchase Contract Agent and conforming to the requirements of this Agreement or the Pledge Agreement or the Remarketing Agreement, as applicable, but in
the case of any certificates or opinions which by any provision hereof are specifically required to be furnished to the Purchase Contract Agent, the Purchase Contract Agent shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Agreement (but need not confirm or investigate the accuracy of the mathematical calculations or other facts or matters stated therein). 
 (b) No provision of this Agreement, the Pledge Agreement or the Remarketing Agreement shall be construed to relieve the Purchase Contract Agent from
liability for its own grossly negligent action, its own grossly negligent failure to act, or its own willful misconduct, except that: 
 (i) this Subsection shall not be construed to limit the effect of subsection (a) or (c) of this Section; 
 (ii) the Purchase Contract Agent shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be conclusively determined by a court of competent jurisdiction that the
Purchase Contract Agent was grossly negligent in ascertaining the pertinent facts; and 
 (c) No provision of this Agreement or the Pledge
Agreement or the Remarketing Agreement shall require the Purchase Contract Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or
powers. 
 (d) Whether or not therein expressly so provided, every provision of this Agreement, the Pledge Agreement and the Remarketing
Agreement relating to the conduct or affecting the liability of or affording protection to the Purchase Contract Agent shall be subject to the provisions of this Section. 
 (e) The Purchase Contract Agent is authorized to execute and deliver the Pledge Agreement and the Remarketing Agreement in its capacity as Purchase Contract Agent. 
 Section 7.02. Notice of Default. 
 Within 90 days after the occurrence of any default by the Company hereunder of which a Responsible Officer of the Purchase Contract Agent has actual knowledge, the Purchase Contract Agent shall transmit by mail to the Company and the
Holders of Units, as their names and addresses appear in the Security Register, notice of such default hereunder, unless such default shall have been cured or waived. 
  

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 Section 7.03. Certain Rights of Purchase Contract Agent. 
 Subject to the provisions of Section 7.01: 
 (a) the Purchase Contract Agent may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, Senior Note, note, other evidence of indebtedness or other paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by an Officers’ Certificate, Issuer Order or Issuer
Request, and any resolution of the Board of Directors of the Company may be sufficiently evidenced by a Board Resolution; 
 (c) whenever in
the administration of this Agreement or the Pledge Agreement or the Remarketing Agreement the Purchase Contract Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting to take any action hereunder,
the Purchase Contract Agent (unless other evidence be herein specifically prescribed in this Agreement) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
 (d) the Purchase Contract Agent may consult with counsel of its selection 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 Purchase Contract Agent shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but the Purchase Contract Agent, in its discretion, may make further inquiry or investigation into such facts or matters related to the execution, delivery and performance
of the Purchase Contracts as it may see fit, and, if the Purchase Contract Agent shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or
attorney; 
 (f) the Purchase Contract Agent may execute any of the powers hereunder or perform any duties hereunder either directly or by or
through agents, attorneys, custodians or nominees or an Affiliate and the Purchase Contract Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney, custodian or nominee or an Affiliate appointed with due
care by it hereunder; 
 (g) the Purchase Contract Agent shall be under no obligation to exercise any of the rights or powers vested in it by
this Agreement at the request or direction of any of the Holders pursuant to this Agreement, unless such Holders shall have offered to the Purchase Contract Agent security or indemnity satisfactory to the Purchase Contract Agent against the costs,
expenses and liabilities which might be incurred by it in compliance with such request or direction; 
  

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 (h) the Purchase Contract Agent shall not be liable for any action taken, suffered, or omitted to be
taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement; 
 (i) the Purchase Contract Agent shall not be deemed to have notice or be charged with knowledge of any adjustment to the Settlement Rate, the occurrence of a Termination Event or any default hereunder unless written notice from the Company
of any such adjustment or occurrence or event which is in fact such an adjustment, occurrence, or default is received at the Corporate Trust Office of the Purchase Contract Agent, and such notice references the Units and this Agreement; 

(j) the Purchase Contract Agent 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 Agreement, 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) the rights, privileges, protections, immunities and
benefits given to the Purchase Contract Agent, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Purchase Contract Agent in each of its capacities hereunder, and to each agent, custodian
and other Person employed to act hereunder and under the Pledge Agreement; 
 (l) the Purchase Contract Agent shall not be required to
initiate or conduct any litigation or collection proceedings hereunder and shall have no responsibilities with respect to any default hereunder except as expressly set forth herein; and 
 (m) the permissive right of the Purchase Contract Agent to take or refrain from taking action hereunder or under the Pledge Agreement shall not be
construed as a duty. 
 Section 7.04. Not Responsible for Recitals or Issuance of Units. 
 The recitals contained herein, in the Pledge Agreement, the Remarketing Agreement and in the Certificates shall be taken as the statements of the Company,
and the Purchase Contract Agent assumes no responsibility for their accuracy or validity. The Purchase Contract Agent makes no representations as to the validity or sufficiency of either this Agreement or of the Units, or of the Pledge Agreement or
the Pledge or the Collateral and shall have no responsibility for perfecting or maintaining the perfection of any security interest in the Collateral. The Purchase Contract Agent shall not be accountable for the use or application by the Company of
the proceeds in respect of the Units or the Purchase Contracts. 
 Section 7.05. May Hold Units. 
 Any Security Registrar or any other agent of the Company, or the Purchase Contract Agent and its Affiliates, in their individual or any other capacity,
may become the owner or pledgee of Units and may otherwise deal with the Company, the Collateral Agent or any other Person with the same rights it would have if it were not Security Registrar or such 

  

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other agent, or the Purchase Contract Agent. The Company may become the owner or pledgee of Units. 
 Section 7.06. Money Held in Custody. 
 Money held by the Purchase Contract Agent in custody hereunder need not be segregated from the Purchase Contract Agent’s other funds except to the extent required by law or provided herein. The Purchase Contract Agent shall be under no
obligation to invest or pay interest on any money received by it hereunder except as otherwise provided hereunder or agreed in writing with the Company. 
 Section 7.07. Compensation and Reimbursement. 
 The Company agrees: 
 (a) to pay to the Purchase Contract Agent compensation for all services rendered by it hereunder, under the Pledge Agreement and under the Remarketing
Agreement as the Company and the Purchase Contract Agent shall from time to time agree in writing; 
 (b) except as otherwise expressly
provided for herein, to reimburse the Purchase Contract Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by the Purchase Contract Agent in accordance with any provision of this Agreement, the Pledge
Agreement and the Remarketing Agreement (including the reasonable compensation, expenses and disbursements of its agents and counsel) except any such expense, disbursement or advance as may be attributable to its gross negligence or willful
misconduct; and 
 (c) to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent, and each of its directors,
officers, agents and employees (collectively, with the Purchase Contract Agent, the “Indemnitees”) for, and to hold it harmless against, any loss, claim, damage, fine, penalty, liability or expense (including reasonable fees and
expenses of counsel) incurred without gross negligence or willful misconduct on its part, arising out of or in connection with the acceptance or administration by the Purchase Contract Agent of its duties hereunder and under the Pledge Agreement and
the Remarketing Agreement, including the Indemnitees’ reasonable costs and expenses of defending itself against any claim (whether asserted by the Company, a Holder or any other Person) or liability in connection with the exercise or
performance of any of the Purchase Contract Agent’s powers or duties hereunder or thereunder or of enforcing the provisions of this Section. 
 The provisions of this Section shall survive the resignation or removal of the Purchase Contract Agent, the satisfaction of discharge of the Units, the Purchase Contacts and the Senior Notes, and the termination of this Agreement.

 “Purchase Contract Agent” for purposes of this Section shall include any predecessor Purchase Contract Agent; provided, however,
that the negligence, willful misconduct or bad faith of any Purchase Contract Agent hereunder shall not affect the rights of any other Purchase Contract Agent hereunder. 
  

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 Section 7.08. Corporate Purchase Contract Agent Required, Eligibility. 
 There shall at all times be a Purchase Contract Agent hereunder which shall be a Person organized and doing business under the laws of the United States
of America, any State thereof or the District of Columbia, authorized under such laws to exercise corporate trust powers, having (or being a member of a bank holding company having) a combined capital and surplus of at least $50,000,000, subject to
supervision or examination by Federal or State authority and having a corporate trust office in the Borough of Manhattan, New York City, if there be such a Person in the Borough of Manhattan, New York City, qualified and eligible under this
Article and willing to act on reasonable terms. If such Person publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Purchase Contract Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 
 Section 7.09. Resignation and Removal; Appointment of Successor. 
 (a) No resignation or removal of the Purchase
Contract Agent and no appointment of a successor Purchase Contract Agent pursuant to this Article shall become effective until the acceptance of appointment by the successor Purchase Contract Agent in accordance with the applicable requirements
of Section 7.10. 
 (b) The Purchase Contract Agent may resign at any time by giving written notice thereof to the Company 30 days prior
to the effective date of such resignation. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase Contract Agent within 30 days after the giving of such
notice of resignation, the resigning Purchase Contract Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent. 
 (c) The Purchase Contract Agent may be removed at any time by Act of the Holders of a majority in number of the Outstanding Units delivered to the
Purchase Contract Agent and the Company. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase Contract Agent within 30 days after such Act, the Purchase
Contract Agent being removed may petition any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent. 
 (d) If at any time: 
 (i) the Purchase Contract Agent fails to comply with Section 310(b) of the TIA, as if the
Purchase Contract Agent were an indenture trustee under an indenture qualified under the TIA, and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Unit for at least six
months; 
  

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 (ii) the Purchase Contract Agent shall cease to be eligible under Section 7.08 and
shall fail to resign after written request therefor by the Company or by any such Holder; or 
 (iii) the Purchase Contract
Agent shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Purchase Contract Agent or of its property shall be appointed or any public officer shall take charge or control of the Purchase Contract Agent
or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 
 then, in any such case, (i) the Company
by a Board Resolution may remove the Purchase Contract Agent, or (ii) any Holder who has been a bona fide Holder of a Unit for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Purchase Contract Agent and the appointment of a successor Purchase Contract Agent. 
 (e) If the
Purchase Contract Agent shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of the Purchase Contract Agent for any cause, the Company, by a Board Resolution, shall promptly appoint a successor Purchase
Contract Agent and shall comply with the applicable requirements of Section 7.10. If no successor Purchase Contract Agent shall have been so appointed by the Company and accepted appointment in the manner required by Section 7.10, any
Holder who has been a bona fide Holder of a Unit for at least six months, on behalf of itself and all others similarly situated, or the Purchase Contract Agent may petition at the expense of the Company any court of competent jurisdiction for
the appointment of a successor Purchase Contract Agent. 
 (f) The Company shall give, or shall cause such successor Purchase Contract Agent
to give, notice of each resignation and each removal of the Purchase Contract Agent and each appointment of a successor Purchase Contract Agent by mailing written notice of such event by first-class mail, postage prepaid, to all Holders as their
names and addresses appear in the Security Register. Each notice shall include the name of the successor Purchase Contract Agent and the address of its Corporate Trust Office. 
 Section 7.10. Acceptance of Appointment by Successor. 
 (a) In case of the appointment hereunder of a successor Purchase Contract Agent, every such successor Purchase Contract Agent so appointed shall execute, acknowledge and deliver to the Company and to the retiring
Purchase Contract Agent an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Purchase Contract Agent shall become effective and such successor Purchase Contract Agent, without any further act, deed or
conveyance, shall become vested with all the rights, powers, agencies and duties of the retiring Purchase Contract Agent; but, on the request of the Company or the successor Purchase Contract Agent, such retiring Purchase Contract Agent shall, upon
payment of its charges and all other amounts payable to it hereunder or under the Pledge Agreement or Remarketing Agreement, execute and deliver an instrument transferring to such successor Purchase Contract Agent all the rights, powers and trusts
of the retiring Purchase Contract Agent 

  

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and duly assign, transfer and deliver to such successor Purchase Contract Agent all property and money held by such retiring Purchase Contract Agent
hereunder. 
 (b) Upon request of any such successor Purchase Contract Agent, the Company shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Purchase Contract Agent all such rights, powers and agencies referred to in (a) of this Section. 
 (c) No successor Purchase Contract Agent shall accept its appointment unless at the time of such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this Article. 
 Section 7.11. Merger, Conversion, Consolidation or Succession to Business. 
 Any Person into which the Purchase Contract Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Purchase Contract Agent shall be a party, or any Person succeeding to all or substantially all the corporate trust business of the Purchase Contract Agent, shall be the successor of the Purchase
Contract Agent hereunder, provided that such Person shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Certificates
shall have been authenticated and executed on behalf of the Holders, but not delivered, by the Purchase Contract Agent then in office, any successor by merger, conversion or consolidation to such Purchase Contract Agent may adopt such authentication
and execution and deliver the Certificates so authenticated and executed with the same effect as if such successor Purchase Contract Agent had itself authenticated and executed such Units. 
 Section 7.12. Preservation of Information; Communications to Holders. 
 (a) The Purchase Contract Agent shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders received by the
Purchase Contract Agent in its capacity as Security Registrar. 
 (b) If three or more Holders (herein referred to as
“Applicants”) apply in writing to the Purchase Contract Agent, and furnish to the Purchase Contract Agent reasonable proof that each such Applicant has owned a Unit for a period of at least six months preceding the date of such
application, and such application states that the Applicants desire to communicate with other Holders with respect to their rights under this Agreement or under the Units and is accompanied by a copy of the form of proxy or other communication which
such Applicants propose to transmit, then the Purchase Contract Agent shall mail to all the Holders copies of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Purchase
Contract Agent of the materials to be mailed and of payment, or provision for the payment, of the reasonable expenses of such mailing. 
 Section 7.13. No Obligations of Purchase Contract Agent. 
 Except to the extent otherwise expressly provided in this
Agreement, the Purchase Contract Agent assumes no obligations and shall not be subject to any liability under this 

  

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Agreement, the Pledge Agreement, the Remarketing Agreement or any Purchase Contract in respect of the obligations of the Holder of any Unit thereunder. The
Company agrees, and each Holder of a Certificate, by its acceptance thereof, shall be deemed to have agreed, that the Purchase Contract Agent’s execution of the Certificates on behalf of the Holders shall be solely as agent and attorney-in-fact
for the Holders, and that the Purchase Contract Agent shall have no obligation to perform such Purchase Contracts on behalf of the Holders, except to the extent expressly provided in Article Five hereof. Anything contained in this Agreement to
the contrary notwithstanding, in no event shall the Purchase Contract Agent or its officers, directors, employees or agents be liable under this Agreement, the Pledge Agreement or the Remarketing Agreement for (i) indirect, incidental, special,
punitive, or consequential loss or damage of any kind whatsoever, including lost profits, whether or not the likelihood of such loss or damage was known to the Purchase Contract Agent and regardless of the form of action or (ii) any failure or
delay in the performance of its obligations under this Agreement or the Pledge Agreement, arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God, earthquakes,
fire, flood, terrorism, wars and other military disturbances, sabotage, epidemics, riots, interruptions, loss or malfunctions of utilities, computer (hardware or software) or communication services, accidents, labor disputes, acts of civil or
military authority and governmental action. 
 Section 7.14. Tax Compliance. 
 (a) The Company will comply with all applicable certification, information reporting and withholding (including “backup” withholding)
requirements imposed by applicable tax laws, regulations or administrative practice with respect to (i) any payments made with respect to the Units or (ii) the issuance, delivery, holding, transfer, redemption or exercise of rights under
the Units. Such compliance shall include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts required to be withheld to the appropriate taxing authority or its designated agent.
Notwithstanding the immediately preceding sentence, the Purchase Contract Agent, as agent of the Company, shall perform the customary duties of withholding and tax reporting (including backup withholding) with respect to the Units upon being advised
by the Company of the applicable withholding and tax reporting requirements. 
 (b) The Purchase Contract Agent shall comply in accordance
with the terms hereof with any reasonable written direction received from the Company with respect to the execution or certification of any required documentation and the application of such requirements to particular payments or Holders or in other
particular circumstances, and may for purposes of this Agreement conclusively rely on any such direction in accordance with the provisions of Section 7.01(a) hereof. 
 (c) The Purchase Contract Agent shall maintain all appropriate records documenting compliance with such requirements, and shall make such records available, on written request, to the Company or its authorized
representative within a reasonable period of time after receipt of such request. 
  

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 ARTICLE 8 
 SUPPLEMENTAL AGREEMENTS 
 Section 8.01. Supplemental Agreements Without Consent of Holders.

 Without the consent of any Holders, the Company and the Purchase Contract Agent, at any time and from time to time, may enter into one or
more agreements supplemental hereto, in form satisfactory to the Company and the Purchase Contract Agent, to: 
 (a) evidence the succession
of another Person to the obligations of the Company, and the assumption by any such successor of the covenants of the Company herein and in the Certificates; 
 (b) evidence and provide for the acceptance of appointment hereunder by a successor Purchase Contract Agent; 
 (c) add to the covenants of the Company for the benefit of the Holders, or surrender any right or power herein conferred upon the Company; 
 (d) make provision with respect to the rights of Holders pursuant to the requirements of Section 5.04(b); 
 (e) cure any
ambiguity, correct or supplement any provisions herein which may be inconsistent with any other provisions herein; or 
 (f) make any other
provisions that such do not materially adversely affect the interests of the Holders. 
 Section 8.02. Supplemental Agreements With
Consent of Holders. 
 With the consent of the Holders of not less than a majority of the Outstanding Units at any one time, including
without limitation the consent of the Holders obtained in connection with a tender or an exchange offer, by Act of such Holders delivered to the Company and the Purchase Contract Agent, the Company, when duly authorized by a Board Resolution, and
the Purchase Contract Agent may enter into an agreement or agreements supplemental hereto for the purpose of modifying in any manner the terms of the Purchase Contracts, or the provisions of this Agreement or the rights of the Holders in respect of
the Units; provided, however, that, except as contemplated herein, no such supplemental agreement shall, without the unanimous consent of the Holders of each Outstanding Unit affected thereby, 
 (a) change any Payment Date; 
 (b) change
the amount or the type of Collateral required to be Pledged to secure a Holder’s obligations under the Purchase Contract, impair the right of the Holder of any Purchase Contract to receive distributions on the related Collateral or otherwise
adversely affect the Holder’s rights in or to such Collateral or adversely alter the rights in or to such Collateral; 
  

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 (c) impair the right to institute suit for the enforcement of any Purchase Contract or any Contract
Adjustment Payments; 
 (d) reduce the number of shares of Common Stock (or, in the circumstances described in Section 5.08, shares of
Series A Preferred Stock) or the amount of any other property or securities to be purchased pursuant to any Purchase Contract, increase the price to purchase shares of Common Stock (or, in the circumstances described in Section 5.08, shares of
Series A Preferred Stock) or any other property or securities upon settlement of any Purchase Contract or change the Purchase Contract Settlement Date or the right to Early Settlement or Cash Merger Early Settlement or otherwise adversely affect the
Holder’s rights under the Purchase Contract; 
 (e) reduce any Contract Adjustment Payments or change any place where, or the coin or
currency in which, any Contract Adjustment Payment is payable; or 
 (f) reduce the percentage of the Outstanding Units the consent of whose
Holders is required for any modification or amendment to the provisions of this Agreement, the Purchase Contracts or the Pledge Agreement; 
 provided that
if any amendment or proposal referred to above would adversely affect only the Corporate Units or the Treasury Units, then only the affected class of Holders as of the record date for the Holders entitled to vote thereon will be entitled to vote on
such amendment or proposal, and such amendment or proposal shall not be effective except with the consent of Holders of not less than a majority of such class; and provided, further, that the unanimous consent of the Holders of each Outstanding Unit
of such class affected thereby shall be required to approve any amendment or proposal specified in clauses (a) through (f) above. 
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental agreement, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 8.03. Execution of Supplemental Agreements. 
 In executing, or accepting the additional agencies created by, any supplemental agreement permitted by this Article or the modifications thereby of the agencies created by this Agreement, the Purchase Contract
Agent shall be provided, and (subject to Section 7.01) shall be fully authorized and protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such supplemental agreement is authorized or
permitted by this Agreement and that any and all conditions precedent to the execution and delivery of such supplemental agreement have been satisfied. The Purchase Contract Agent may, but shall not be obligated to, enter into any such supplemental
agreement which affects the Purchase Contract Agent’s own rights, duties or immunities under this Agreement or otherwise. 
 Section 8.04. Effect of Supplemental Agreements. 
 Upon the execution of any supplemental agreement under this Article,
this Agreement shall be modified in accordance therewith, and such supplemental agreement shall form a part of this Agreement for all purposes; and every Holder of Certificates theretofore or 

  

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thereafter authenticated, executed on behalf of the Holders and delivered hereunder, shall be bound thereby. 
 Section 8.05. Reference to Supplemental Agreements. 
 Certificates authenticated, executed on behalf of the Holders and delivered after the execution of any supplemental agreement pursuant to this Article may, and shall if required by the Purchase Contract Agent,
bear a notation in form approved by the Purchase Contract Agent as to any matter provided for in such supplemental agreement. If the Company shall so determine, new Certificates so modified as to conform, in the opinion of the Purchase Contract
Agent and the Company, to any such supplemental agreement may be prepared and executed by the Company and authenticated, executed on behalf of the Holders and delivered by the Purchase Contract Agent in exchange for outstanding Certificates.

 ARTICLE 9 
 CONSOLIDATION,
MERGER, CONVEYANCE, TRANSFER OR LEASE 
 Section 9.01. Covenant Not to Consolidate, Merge, Convey, Transfer or Lease Property Except
Under Certain Conditions. 
 The Company covenants that it will not consolidate or merge with and into any other Person or convey,
transfer or lease its properties and assets as an entirety or substantially as an entirety to any Person, unless: 
 (a) either the Company
shall be the continuing Person, or the successor (if other than the Company) shall be a Person organized and existing under the laws of the United States of America, a State thereof or the District of Columbia and such Person shall expressly assume
all the obligations of the Company under the Purchase Contracts, this Agreement, the Pledge Agreement, the Indenture (including any supplement thereto), the Senior Notes and the Remarketing Agreement by one or more supplemental agreements in form
reasonably satisfactory to the Purchase Contract Agent and the Collateral Agent, executed and delivered to the Purchase Contract Agent and the Collateral Agent by such Person; and 
 (b) the Company or such successor Person, as the case may be, shall not, immediately after such consolidation, merger, conveyance, transfer or lease, be
in default of payment obligations under the Purchase Contracts, this Agreement, the Pledge Agreement, the Indenture (including any supplement thereto), the Senior Notes or the Remarketing Agreement or in material default in the performance of any
other covenants under any of the foregoing agreements. 
 Section 9.02. Rights and Duties of Successor Corporation. 

In case of any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance and upon any such assumption by a successor
Person in accordance with Section 9.01, such successor Person shall succeed to and be substituted for the Company with the same effect as if it had been named herein as the Company. Such successor Person thereupon may cause to be signed, and
may issue either in its own name or in the name of 

  

 81 

 
Ambac Financial Group, Inc. any or all of the Certificates evidencing Units issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Purchase Contract Agent; and, upon the order of such successor Person, instead of the Company, and subject to all the terms, conditions and limitations in this Agreement prescribed, the Purchase Contract Agent shall authenticate
and execute on behalf of the Holders and deliver any Certificates which previously shall have been signed and delivered by the officers of the Company to the Purchase Contract Agent for authentication and execution, and any Certificate evidencing
Units which such successor Person thereafter shall cause to be signed and delivered to the Purchase Contract Agent for that purpose. All the Certificates issued shall in all respects have the same legal rank and benefit under this Agreement as the
Certificates theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Certificates had been issued at the date of the execution hereof. 
 In case of any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance such change in phraseology and form (but not
in substance) may be made in the Certificates evidencing Units thereafter to be issued as may be appropriate. 
 Section 9.03.
Officers’ Certificate and Opinion of Counsel Given to Purchase Contract Agent. 
 The Purchase Contract Agent, subject to
Section 7.01, shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance, and any such assumption, complies
with the provisions of this Article and that all conditions precedent to the consummation of any such merger, consolidation, share exchange, sale, assignment, transfer, lease or conveyance have been met. 
 ARTICLE 10 
 COVENANTS 
 Section 10.01. Performance under Purchase Contracts. 
 The Company covenants and agrees for the benefit of the Holders from time to time of the Units that it will duly and punctually perform its obligations under the Purchase Contracts in accordance with the terms of the
Purchase Contracts and this Agreement. 
 Section 10.02. Maintenance of Office or Agency. 
 The Company will maintain in the Borough of Manhattan, New York City an office or agency where Certificates may be presented or surrendered for
acquisition of shares of Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) upon settlement of the Purchase Contracts on the Purchase Contract Settlement Date or upon Early Settlement or Cash
Merger Early Settlement and for transfer of Collateral upon occurrence of a Termination Event, where Certificates may be surrendered for registration of transfer or exchange, for a Collateral Substitution or recreation of Corporate Units and where
notices and demands to or upon the Company in respect of the Units and this Agreement may be served. The Company will give prompt written notice to the Purchase Contract Agent of the 

  

 82 

 
location, and any change in the location, of such office or agency. The Company initially designates the Corporate Trust Office of the Purchase Contract
Agent as such office of the Company and the Company hereby appoints the Purchase Contract Agent as its agent to receive all such presentations, surrenders, notices and demands. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Purchase Contract Agent with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Company hereby appoints the Purchase
Contract Agent as its agent to receive all such presentations, surrenders, notices and demands. 
 The Company may also from time to time
designate one or more other offices or agencies where Certificates 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 in the Borough of Manhattan, New York City for such purposes. The Company will give prompt written notice to the Purchase Contract Agent of any such designation or
rescission and of any change in the location of any such other office or agency. The Company hereby designates as the place of payment for the Units the Corporate Trust Office and appoints the Purchase Contract Agent at its Corporate Trust Office as
paying agent in the city in which the Corporate Trust Office is located. 
 Section 10.03. Company to Reserve Common Stock.

 The Company shall at all times following satisfaction of the Authorized Share Condition and prior to the Purchase Contract Settlement Date
reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock the full number of shares of Common Stock issuable against tender of payment in respect of all Purchase Contracts constituting a part of the
Outstanding Units. 
 The Company shall use commercially reasonable efforts to satisfy the Authorized Share Condition as promptly as
practicable after the date hereof. In the event that the Company authorizes any additional shares of Common Stock following the initial issuance date of the Units, such shares must first be used by the Company to satisfy the Authorized Share
Condition and the Company shall not apply or reserve such shares for any other purpose until the Authorized Share Condition has been satisfied. 
 Section 10.04. Covenants as to Common Stock and Series A Preferred Stock. 
 The Company covenants that all shares of
Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) which may be issued against tender of payment in respect of any Purchase Contract constituting a part of the Outstanding Units will, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable. 
 Section 10.05. Statements of Officers of the Company
as to Default. 
 The Company will deliver to the Purchase Contract Agent, within 120 days after the end of each fiscal year of the
Company (which as of the date hereof is December 31) ending after the date hereof, an Officers’ Certificate, stating whether or not to the knowledge of the 

  

 83 

 
signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions hereof, and if the Company shall
be in default, specifying all such defaults and the nature and status thereof of which they have knowledge. 
 Section 10.06.
ERISA. 
 Each Holder from time to time of the Units that is a Plan or who used assets of a Plan to purchase Units hereby represents
that either (i) no portion of the assets used by such Holder to acquire the Corporate Units constitutes assets of the Plan or (ii) the purchase or holding of the Corporate Units by such purchaser or transferee will not constitute a
non-exempt prohibited transaction under Section 406 of ERISA or Section 4973 of the Code or similar violation under any applicable laws. 
 Section 10.07. Tax Treatment. 
 The Company covenants and agrees, for United States federal, state and local income and
franchise tax purposes, to (i) treat a Holder’s acquisition of the Corporate Units as the acquisition of the Applicable Ownership Interest in Senior Notes and the Purchase Contract constituting the Corporate Units, (ii) treat the
Senior Notes underlying the Applicable Ownership Interests in the Senior Notes as indebtedness and (iii) treat each Holder as the owner of the applicable interest in the Collateral Account, including the Applicable Ownership Interests in Senior
Notes, the Applicable Ownership Interests in the Treasury Portfolio or the Treasury Securities. 
 Section 10.08. Listing.

 (a) The Company covenants that, if at any time the Common Stock (or, in the circumstances described in Section 5.08, shares of Series
A Preferred Stock) shall be listed on the NYSE or any other national securities exchange or automated quotation system, the Company will, if permitted by the rules of such exchange or automated quotation system, list and keep listed, so long as the
Common Stock (or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) shall be so listed on such exchange or automated quotation system, all Common Stock (or, in the circumstances described in Section 5.08,
shares of Series A Preferred Stock) issuable upon Settlement of Purchase Contracts; provided, however, that, if the rules of such exchange or automated quotation system permit the Company to defer the listing of such Common Stock (or, in the
circumstances described in Section 5.08, shares of Series A Preferred Stock) until the date on which any Purchase Contract is first settled in accordance with the provisions of this Agreement, the Company covenants to list such Common Stock
(or, in the circumstances described in Section 5.08, shares of Series A Preferred Stock) issuable upon settlement of the Purchase Contracts in accordance with the requirements of such exchange or automated quotation system no later than at such
time. 
 (b) The Corporate Units have been approved for listing on the NYSE under the symbol “ABK-Prz” subject to official notice
of issuance. Once Collateral Substitution has been effected with respect to a Corporate Unit pursuant to Section 3.13, the Applicable Ownership Interest in Senior Notes or the Applicable Ownership Interest in the Treasury 

  

 84 

 
Portfolio that formerly composed part of such Corporate Unit will trade separately from the Treasury Units resulting from such Collateral Substitution.

 [SIGNATURES ON THE FOLLOWING PAGE] 
  

 85 

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

			
	AMBAC FINANCIAL GROUP, INC.
		
	By:	 	 /s/ David Trick

	Name:	 	David Trick
	Title:	 	Managing Director and Treasurer
	
	 THE BANK OF NEW YORK,
 as
Purchase Contract Agent

		
	By:	 	 /s/ Franca M. Ferrera

	Name:	 	Franca M. Ferrera
	Title:	 	Assistant Vice President

 EXHIBIT A 
 (FORM OF FACE OF CORPORATE UNITS CERTIFICATE) 
 [For inclusion in Global Certificates only - THIS
CERTIFICATE IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS THE NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE 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 LIMITED CIRCUMSTANCES. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
  

			
	No.         	  	CUSIP No. 023139 702
	Number of Corporate Units:         	  	

 AMBAC FINANCIAL GROUP, INC. 
 Corporate Units 
 This Corporate Units Certificate certifies that [Cede & Co.]
[                    ] is the registered Holder of the number of Corporate Units set forth above [For inclusion in Global Certificates only -
or such other number of Corporate Units reflected in the Schedule of Increases or Decreases in Global Certificate attached hereto]. Each Corporate Unit consists of (i) either (a) the Applicable Ownership Interests in Senior Notes,
subject to the Pledge of such Senior Note by such Holder pursuant to the Pledge Agreement, or (b) upon the occurrence of a Successful Remarketing of the Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio, subject to the
pledge of the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) by such Holder pursuant to the Pledge Agreement, and (ii) the rights and obligations of the Holder under one
Purchase Contract with the Company. All capitalized terms used but not otherwise defined herein which are defined in 

 
the Purchase Contract Agreement (as defined on the reverse hereof) have the meaning set forth therein. 
 Pursuant to the Pledge Agreement, the Applicable Ownership Interests in Senior Notes, the Applicable Ownership Interests in the Treasury Portfolio (as
specified in clause (i) of the definition of such term), as the case may be, constituting part of each Corporate Unit evidenced hereby have been pledged to the Collateral Agent, for the benefit of the Company, to secure the obligations of the
Holder under the Purchase Contract comprising part of such Corporate Unit. 
 The Pledge Agreement provides that all payments of the
principal amount with respect to any of the Pledged Applicable Ownership Interests in Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, or interest or distributions on any Pledged Applicable Ownership
Interests in Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of the definition of such term), as the case may be, constituting part of the Corporate Units received by the Securities
Intermediary shall be paid by wire transfer in same day funds (i) in the case of (A) interest on Pledged Applicable Ownership Interests in Senior Notes or distributions with respect to the Applicable Ownership Interests in the Treasury
Portfolio (as specified in clause (ii) of the definition of such term), as the case may be, and (B) any payments of the principal amount of any Applicable Ownership Interests in Senior Notes or with respect to the Applicable Ownership
Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as the case may be, that have been released from the Pledge pursuant to the Pledge Agreement, to the Purchase Contract Agent to the account
designated by the Purchase Contract Agent, no later than 12:00 p.m., New York City time, on the Business Day such payment is received by the Securities Intermediary (provided that in the event such payment is received by the Securities
Intermediary on a day that is not a Business Day or after 11:00 a.m., New York City time, on a Business Day, then such payment shall be made no later than 10:30 a.m., New York City time, on the next succeeding Business Day) and
(ii) in the case of payments with respect to the principal amount of the Pledged Applicable Ownership Interests in Senior Notes or with respect to the Pledged Applicable Ownership Interests in the Treasury Portfolio, to the Company on the
Purchase Contract Settlement Date (as described herein) in accordance with the terms of the Pledge Agreement, in full satisfaction of the respective obligations of the Holders of the Corporate Units of which such Pledged Applicable Ownership
Interests in Senior Notes or the Pledged Applicable Ownership Interests in the Treasury Portfolio, as the case may be, are a part under the Purchase Contracts forming a part of such Corporate Units. Interest on the Pledged Applicable Ownership
Interests in Senior Notes and distributions on the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of the definition of such term), as the case may be, forming part of a Corporate Units evidenced hereby,
which are payable quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, commencing May 15, 2008 (provided that the final payment date in respect of a Corporate Unit shall be the
Purchase Contract Settlement Date in lieu of May 15, 2011 and will include amounts accrued to, but excluding, May 17, 2011 and will include the payment of interest on the Senior Notes due on May 15, 2011) (a “Payment
Date”), shall, subject to receipt thereof by the Purchase Contract Agent from the Securities Intermediary, be paid to the Person in whose name this Corporate Units Certificate (or a Predecessor Corporate Units Certificate) is registered at
the close of business on the Record Date for such Payment Date. 
  

 A-2 

 Each Purchase Contract evidenced hereby obligates the Holder of this Corporate Units Certificate to
purchase, and the Company to sell, on May 17, 2011 (the “Purchase Contract Settlement Date”), at a price equal to $50.00 (the “Stated Amount”), a number of newly issued shares of common stock, par value $0.01
per share (“Common Stock”), of the Company, equal to the Settlement Rate (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, a number shares of Series A Preferred Stock equal to the product
of the Settlement Rate and the Conversion Ratio), unless on or prior to the Purchase Contract Settlement Date there shall have occurred a Termination Event or an Early Settlement or Cash Merger Early Settlement with respect to such Purchase
Contract, all as provided in the Purchase Contract Agreement and more fully described on the reverse hereof. The purchase price (the “Purchase Price”) for the shares of Common Stock (or, in the circumstances described in
Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) purchased pursuant to each Purchase Contract evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract Settlement Date by application of
payment received in respect of the principal amount with respect to the proceeds from the related Pledged Applicable Ownership Interests in the Treasury Portfolio at maturity pledged to secure the obligations under such Purchase Contract of the
Holder of the Corporate Units of which such Purchase Contract is a part or a portion of the proceeds from the Put Right exercised by the Holder. 
 Each Purchase Contract evidenced hereby obligates the holder to agree, for United States federal, state and local income and franchise tax purposes, to (i) treat an acquisition of the Corporate Units as an acquisition of the Applicable
Ownership Interest in Senior Notes and the Purchase Contract constituting the Corporate Units; (ii) treat the Senior Notes underlying the Applicable Ownership Interest in Senior Notes as indebtedness; and (iii) treat itself as the owner of
the applicable interest in the Collateral Account, including the Applicable Ownership Interest in Senior Notes and the Applicable Ownership Interest in the Treasury Portfolio. 
 The Company shall pay, on each Payment Date, in respect of each Purchase Contract forming part of
a Corporate Unit evidenced hereby, an amount (the “Contract Adjustment Payments”) equal to 0.00% per year of the Stated Amount; provided, however, that if the Authorized Share Condition is not satisfied by the 120th day following the initial issuance date of the Units, the Contract Adjustment Payments shall increase to 5% per year of the Stated Amount per Purchase
Contract from such date to, but excluding, the date on which the Authorized Share Condition is satisfied. Such Contract Adjustment Payments shall be payable to the Person in whose name this Corporate Units Certificate is registered at the close of
business on the Record Date for such Payment Date. 
 Interest on the Applicable Ownership Interests in Senior Notes and distributions on the
Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (ii) of the definition of such term) and the Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in New York City. If the
book-entry system for the Corporate Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the Person entitled thereto at such Person’s address as it appears
on the Security Register, or by wire transfer to the account designated by such Person by a prior written notice to the Purchase Contract Agent. 
  

 A-3 

 Reference is hereby made to the further provisions set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Purchase Contract Agent by manual signature, this Corporate Units Certificate shall not be entitled to any benefit under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any purpose.

  

 A-4 

 IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to be duly
executed. 
  

			
	 AMBAC FINANCIAL GROUP, INC.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

					
	HOLDER SPECIFIED ABOVE (as to obligations of such Holder under the Purchase Contracts)
		
	By:	 	 THE BANK OF NEW YORK,
 not individually
but solely as
 Attorney-in-Fact of such Holder

			
		 	By:	 	  

		 		 	Authorized Signatory

 CERTIFICATE OF AUTHENTICATION 
 OF PURCHASE CONTRACT AGENT 
 This is one of the Corporate Units Certificates referred
to in the within mentioned Purchase Contract Agreement. 
  

			
	 THE BANK OF NEW YORK,
 as
Purchase Contract Agent

		
		 	  

		 	  

	By:	 	  

		 	Authorized Signatory

 Dated:
                     
  

 A-5 

 (FORM OF REVERSE OF CORPORATE UNIT CERTIFICATE) 
 Each Purchase Contract evidenced hereby is governed by a Purchase Contract Agreement, dated as of March 12, 2008 (as may be supplemented from time
to time, the “Purchase Contract Agreement”), between the Company and The Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury Units from time to time (including its
successors hereunder, the “Purchase Contract Agent”), to which Purchase Contract Agreement and supplemental agreements thereto reference is hereby made for a description of the respective rights, limitations of rights, obligations,
duties and immunities thereunder of the Purchase Contract Agent, the Company, and the Holders and of the terms upon which the Corporate Units Certificates are, and are to be, executed and delivered. 
 Each Purchase Contract evidenced hereby obligates the Holder of this Corporate Units Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date at a price equal to the Stated Amount (the “Purchase Price”), a number of newly issued shares of Common Stock equal to the Settlement Rate (or, in the circumstances described in Section 5.08 of the
Purchase Contract Agreement, a number of shares of Series A Preferred Stock equal to the product of the Settlement Rate and the Conversion Ratio), unless an Early Settlement, a Cash Merger Early Settlement or a Termination Event with respect to the
Units of which such Purchase Contract is a part shall have occurred. 
 No fractional shares of Common Stock will be issued upon settlement
of Purchase Contracts, as provided in Section 5.09 of the Purchase Contract Agreement. 
 Each Purchase Contract evidenced hereby, which
is settled through Early Settlement or Cash Merger Early Settlement shall obligate the Holder of the related Corporate Units to purchase at the Purchase Price, and the Company to sell, a number of newly issued shares of Common Stock equal to the
Early Settlement Rate (in the case of an Early Settlement) or applicable Settlement Rate plus the Make-Whole Share Amount (in the case of a Cash Merger Early Settlement) (or, in the circumstances described in Section 5.08 of the Purchase
Contract Agreement, a number of shares of Series A Preferred Stock equal to the product of the Conversion Ratio and the Early Settlement Rate (in the case of an Early Settlement) or applicable Settlement Rate plus the Make-Whole Share Amount (in the
case of a Cash Merger Early Settlement)). 
 In accordance with the terms of the Purchase Contract Agreement, unless a Termination Event has
occurred, the Holder of this Corporate Units Certificate shall pay the Purchase Price for the shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock)
purchased pursuant to each Purchase Contract evidenced hereby by effecting a Cash Settlement, an Early Settlement or, if applicable, a Cash Merger Early Settlement or from the proceeds of the Applicable Ownership Interests in the Treasury Portfolio
(as specified in clause (i) of the definition of such term). Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of Corporate Units, a Holder of
Corporate Units who does not, on or prior to 11:00 a.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date, notify the Purchase Contract Agent of its intention to effect a Cash
Settlement, or who does so 

  

 A-6 

 
notify the Purchase Contract Agent but fails to make an effective Cash Settlement prior to 11:00 a.m. (New York City time) on the Business Day
immediately preceding the Purchase Contract Settlement Date, shall be deemed to have exercised such Holder’s Put Right and to have elected to pay the Purchase Price under the Purchase Contract out of a portion of the proceeds from the Put Right
in full satisfaction of such Holder’s obligations under the Purchase Contract. In the event of the Company’s failure to pay the Put Price when due, the Company shall be deemed to have netted such Holder’s obligation to pay the Company
the Purchase Price under the Purchase Contracts against the Company’s obligation to pay the Put Price, in full satisfaction of such Holder’s obligation under the Purchase Contracts. Any portion of the Put Price in excess of the Stated
Amount, including but not limited to, accrued and unpaid interest from, and including, May 15, 2011 to, but excluding, May 17, 2011, shall be remitted to the Holders together with the interest payment on the Senior Notes in respect of the
interest payment date falling on May 15, 2011. If the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of Corporate Units, a Holder of Corporate Units who
does not notify the Purchase Contract Agent, on or prior to 11:00 a.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date of its intention to effect a Cash Settlement shall pay the
Purchase Price for the shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) to be delivered under the related Purchase Contract from the proceeds at
maturity of the Applicable Ownership Interests in the Treasury Portfolio (as defined in clause (i) of the definition of such term). 
 Each Purchase Contract evidenced hereby and all obligations and rights of the Company and the Holder thereunder shall terminate if a Termination Event shall occur. Upon the occurrence of a Termination Event, the Company shall give written
notice to the Purchase Contract Agent and to the Holders, at their addresses as they appear in the Security Register. Upon and after the occurrence of a Termination Event, the Collateral Agent shall release the Pledged Applicable Ownership Interests
in Senior Notes or the Pledged Applicable Ownership Interests in the Treasury Portfolio forming a part of each Corporate Unit from the Pledge. A Corporate Unit shall thereafter represent the right to receive the Applicable Ownership Interests in
Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio forming a part of such Corporate Units in accordance with the terms of the Purchase Contract Agreement and the Pledge Agreement. 
 Under the terms of the Pledge Agreement and the Purchase Contract Agreement, the Purchase Contract Agent will be entitled to exercise the voting and any
other consensual rights pertaining to the Pledged Applicable Ownership Interests in Senior Notes, but only to the extent instructed in writing by the Holders. Upon receipt of notice of any meeting at which holders of Senior Notes are entitled to
vote or upon any solicitation of consents, waivers or 

  

 A-7 

 
proxies of holders of Senior Notes, the Purchase Contract Agent shall, as soon as practicable thereafter, mail, first class, postage pre-paid, to the
Corporate Units Holders a notice: 
 (1) containing such information as is contained in the notice or solicitation;

 (2) stating that each Holder on the record date set by the Purchase Contract Agent therefor (which, to the extent possible,
shall be the same date as the record date for determining the holders of Senior Notes, as the case may be, entitled to vote) shall be entitled to instruct the Purchase Contract Agent as to the exercise of the voting rights pertaining to the Senior
Notes underlying such Holder’s Corporate Units; and 
 (3) stating the manner in which such instructions may be given.

 Upon the written request of the Corporate Units Holders on such record date received by the Purchase Contract Agent at least six days
prior to such meeting, the Purchase Contract Agent shall endeavor insofar as practicable to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum aggregate principal amount of Senior Notes, as the
case may be, as to which any particular voting instructions are received. In the absence of specific instructions from the Holder of a Corporate Unit, the Purchase Contract Agent shall abstain from voting the Senior Note underlying such Corporate
Unit. The Company hereby agrees, if applicable, to solicit Holders of Corporate Units to timely instruct the Purchase Contract Agent in order to enable the Purchase Contract Agent to vote the Senior Notes. The Holders of Corporate Units shall have
no voting or other rights in respect of Common Stock or Series A Preferred Stock. 
 Upon the occurrence of a Successful Remarketing of
Senior Notes underlying the Applicable Ownership Interests in Senior Notes, pursuant to the terms of the Remarketing Agreement, the Remarketing Agent will apply an amount equal to the Treasury Portfolio Purchase Price to purchase on behalf of the
Holders of Corporate Units, the Treasury Portfolio, and promptly remit the remaining portion of such proceeds of such Successful Remarketing to the Purchase Contract Agent for payment to the Holders of such Corporate Units. 
 Following the occurrence of a Successful Remarketing of the Senior Notes underlying Applicable Ownership Interests in Senior Notes, the Holders of
Corporate Units and the Collateral Agent shall have such security interest rights and obligations with respect to the Applicable Ownership Interests in the Treasury Portfolio as the Holder of Corporate Units and the Collateral Agent had in respect
of the Applicable Ownership Interests in Senior Notes, as the case may be, subject to the Pledge of the Applicable Ownership Interest in the Treasury Portfolio (as specified in clause (i) of the definition of such term) as provided in the
Pledge Agreement and any reference herein to the Senior Notes shall be deemed to be a reference to such Treasury Portfolio. 
 The Corporate
Units Certificates are issuable only in registered form and only in denominations of a single Corporate Unit and any integral multiple thereof. The transfer of any Corporate Units Certificate will be registered and Corporate Units Certificates may
be exchanged 

  

 A-8 

 
as provided in the Purchase Contract Agreement. The Security Registrar may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents permitted by the Purchase Contract Agreement. No service charge shall be required for any such registration of transfer or exchange, but the Company and the Purchase Contract Agent may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. A Holder who elects to substitute a Treasury Security for a Senior Note, thereby creating Treasury Units, shall be responsible for any fees or expenses payable in connection
therewith. Except as provided in the Purchase Contract Agreement, for so long as the Purchase Contract underlying a Corporate Unit remains in effect, such Corporate Unit shall not be separable into its constituent parts, and the rights and
obligations of the Holder of such Corporate Unit in respect of the Applicable Ownership Interests in Senior Notes and the Purchase Contract constituting such Corporate Units may be transferred and exchanged only as a Corporate Unit. 
 Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of
the Corporate Units, and subject to the conditions set forth in the Purchase Contract Agreement, the Holder of Corporate Units may, at any time prior to the close of business on the second Business Day immediately preceding the Purchase Contract
Settlement Date (except as provided below), substitute for the Pledged Applicable Ownership Interests in Senior Notes securing such Holder’s obligations under the related Purchase Contracts, Treasury Securities in an aggregate principal amount
at maturity equal to the aggregate principal amount of the Pledged Applicable Ownership Interests in Senior Notes in accordance with the terms of the Purchase Contract Agreement and the Pledge Agreement. Notwithstanding the foregoing, a Holder shall
not have the right to effect such a Collateral Substitution during the period beginning on the Business Day immediately preceding the Initial Remarketing Date and ending on the Remarketing Settlement Date. From and after such Collateral
Substitution, each Unit for which such Pledged Treasury Securities secures the Holder’s obligation under the Purchase Contract shall be referred to as a “Treasury Unit”. A Holder may make such Collateral Substitution only in integral
multiples of 20 Corporate Units for 20 Treasury Units. 
 If the Applicable Ownership Interests in the Treasury Portfolio have replaced the
Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, a Holder may, at any time on or prior to the close of business on the second Business Day immediately preceding the Purchase Contract Settlement Date (except as
provided below), substitute for the Applicable Ownership Interests in the Treasury Portfolio, Treasury Securities having an aggregate principal amount at maturity equal to the aggregate principal amount of U.S. treasury securities at maturity
included in the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition thereof) constituting a part of the Corporate Units, but only in integral multiples of 360,000 Corporate Units. In such an event,
the Holder shall transfer Treasury Securities to the Collateral Agent, and the Purchase Contract Agent shall instruct the Collateral Agent to release the Pledge of and transfer to the Holder the Applicable Ownership Interests in the Treasury
Portfolio. Notwithstanding the foregoing, a Holder shall not have the right to effect such a Collateral Substitution during the period beginning on the Business Day immediately preceding the Initial Remarketing Date and ending on the Remarketing
Settlement Date. 
 The Company shall pay, on each Payment Date, the Contract Adjustment Payments payable in respect of each Purchase
Contract to the Person in whose name the 

  

 A-9 

 
Corporate Units Certificate evidencing such Purchase Contract is registered at the close of business on the Record Date for such Payment Date. Contract
Adjustment Payments will be payable at the office of the Purchase Contract Agent in New York City. If the book-entry system for the Corporate Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company,
by check mailed to the address of the Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire transfer to the account designated by such Person by a prior written notice to the Purchase Contract
Agent. 
 The Purchase Contracts and all obligations and rights of the Company and the Holders thereunder, including, without limitation, the
rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments, shall immediately and automatically terminate, without the necessity of any notice or action by any Holder, the Purchase Contract Agent or
the Company, if, on or prior to the Purchase Contract Settlement Date, a Termination Event shall have occurred. Upon the occurrence of a Termination Event, the Company shall promptly but in no event later than two Business Days thereafter give
written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as they appear in the Security Register. Upon and after the occurrence of a Termination Event, the Collateral Agent shall release the Pledged
Applicable Ownership Interests in Senior Notes or the Pledged Applicable Ownership Interests in the Treasury Portfolio, as the case may be, from the Pledge in accordance with the provisions of the Pledge Agreement. 
 Subject to and upon compliance with the provisions of the Purchase Contract Agreement, at the option of the Holder thereof, Purchase Contracts underlying
Units may be settled early at any time prior to 5:00 p.m. (New York City time) on the second Business Day immediately preceding the Purchase Contract Settlement Date (“Early Settlement”) as provided in the Purchase Contract
Agreement; provided, that a holder shall not have the right to elect Early Settlement during the period beginning on the Business Day immediately preceding the Initial Remarketing Date and ending on the Remarketing Settlement Date. In order to
exercise the right to effect Early Settlement with respect to any Purchase Contract evidenced by this Certificate, the Holder of this Corporate Units Certificate shall deliver to the Purchase Contract Agent at the Corporate Trust Office an Election
to Settle Early form set forth below duly completed and accompanied by payment in the form of immediately available funds payable to the order of the Company in an amount (the “Early Settlement Amount”) equal to the sum of:

 (i) the product of (A) the Stated Amount multiplied by (B) the number of Purchase Contracts with respect to which
the Holder has elected to effect Early Settlement, plus 
 (ii) if such delivery is made with respect to any Purchase
Contracts during the period after the close of business on any Record Date next preceding any Payment Date and prior to the opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments payable on such Payment Date
with respect to such Purchase Contracts. 
 Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Pledged Senior
Notes or Pledged Applicable Ownership Interests underlying such Units shall be released from the Pledge as provided in the Pledge Agreement and the Holder shall be entitled to 

  

 A-10 

 
receive a number of shares of Common Stock on account of each Purchase Contract forming part of a Corporate Unit as to which Early Settlement is effected
equal (subject to Section 5.08) to 6.2775 shares of Common Stock per Purchase Contract (the “Early Settlement Rate”). The Early Settlement Rate shall be adjusted in the same manner and at the same time as the Settlement Rate is
adjusted as provided in Section 5.04 of the Purchase Contract Agreement. 
 Upon the occurrence of a Cash Merger, a Holder of Corporate
Units may effect Cash Merger Early Settlement of the Purchase Contracts underlying such Corporate Units pursuant to the terms of Section 5.04(b)(ii) of the Purchase Contract Agreement. Upon Cash Merger Early Settlement of Purchase Contracts by
a Holder of the related Corporate Units, the Pledged Applicable Ownership Interests in Senior Notes or Pledged Applicable Ownership Interests in the Treasury Portfolio underlying such Corporate Units shall be released from the Pledge as provided in
the Pledge Agreement. 
 Upon registration of transfer of this Corporate Units Certificate, the transferee shall be bound (without the
necessity of any other action on the part of such transferee, except as may be required by the Purchase Contract Agent pursuant to the Purchase Contract Agreement), under the terms of the Purchase Contract Agreement and the Purchase Contracts
evidenced hereby and the transferor shall be released from the obligations under the Purchase Contracts evidenced by this Corporate Units Certificate. The Company covenants and agrees, and the Holder, by its acceptance hereof, likewise covenants and
agrees, to be bound by the provisions of this paragraph. 
 The Holder of this Corporate Units Certificate, by its acceptance hereof,
irrevocably authorizes the Purchase Contract Agent to enter into and perform the related Purchase Contracts forming part of the Corporate Units evidenced hereby on its behalf as its attorney-in-fact, expressly withholds any consent to the assumption
(i.e., affirmance) of the Purchase Contracts by the Company or its trustee in the event that the Company becomes the subject of a case under the Bankruptcy Code, agrees to be bound by the terms and provisions thereof, covenants and agrees to
perform its obligations under such Purchase Contracts, consents to the provisions of the Purchase Contract Agreement, authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract Agreement and the Pledge Agreement on its
behalf as its attorney-in-fact, and consents to the Pledge of the Applicable Ownership Interests in Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term), as the
case may be, underlying this Corporate Units Certificate pursuant to the Pledge Agreement. The Holder further covenants and agrees that, to the extent and in the manner provided in the Purchase Contract Agreement and the Pledge Agreement, but
subject to the terms thereof, payments with respect to the aggregate principal amount of the Applicable Ownership Interests in Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of such term), as the case may be, on the Purchase Contract Settlement Date shall be paid by the Collateral Agent to the Company in satisfaction of such Holder’s obligations under such Purchase Contract and such Holder shall acquire
no right, title or interest in such payments. 
 Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be
amended with the consent of the Holders of a majority of the Outstanding Units. 
  

 A-11 

 The Purchase Contracts shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to the conflicts of law provisions thereof. 
 Prior to due presentment of this Certificate for registration of
transfer, the Company, the Purchase Contract Agent and any agent of the Company or the Purchase Contract Agent may treat the Person in whose name this Corporate Units Certificate is registered as the owner of the Corporate Units evidenced hereby for
the purpose of receiving payments of interest payable on the Applicable Ownership Interests in Senior Notes, receiving payments of Contract Adjustment Payments (subject to any applicable record date), performance of the Purchase Contracts and for
all other purposes whatsoever, whether or not any payments in respect thereof be overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the
contrary. 
 The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any of the rights of a holder of shares
of Common Stock or Series A Preferred Stock. 
 A copy of the Purchase Contract Agreement is available for inspection at the offices of the
Purchase Contract Agent. 
  

 A-12 

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

			
	TEN COM:	  	as tenants in common
	UNIF GIFT MIN ACT:	  	                      Custodian
                            
 (cust)                 (minor)
 Under Uniform
Gifts to Minors Act of

		  	  

	TENANT:	  	as tenants by the entireties
	JT TEN:	  	 as joint tenants with right of survivorship and
 not
as tenants in common

 Additional abbreviations may also be used though not in the above list. 
  

			
	 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
	  	  

	(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)
	  

	(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

 the within Corporate Units Certificates and all rights thereunder, hereby irrevocably constituting and appointing
                            , attorney to transfer said Corporate Units Certificates on the books of Ambac
Financial Group, Inc., with full power of substitution in the premises. 
  

							
	Dated:                     	 		 	Signature	 	  

		 		 	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Corporate Units Certificates in every particular, without
alteration or enlargement or any change whatsoever.

			
	Signature Guarantee:	  	  

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

 A-13 

 SETTLEMENT INSTRUCTIONS 
 The undersigned Holder directs that a certificate for shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) deliverable
upon settlement on or after the Purchase Contract Settlement Date of the Purchase Contracts underlying the number of Corporate Units evidenced by this Corporate Units Certificate be registered in the name of, and delivered, together with a check in
payment for any fractional share (except with respect to shares of Series A Preferred Stock), to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares are to be registered in the name
of a Person other than the undersigned, the undersigned will pay any transfer tax payable incident thereto. 
 Dated:
                         
  

			
	 If shares are to be registered in the
 name of and
delivered to a Person
 other than the Holder, please (i)
 print
such Person’s name and address
 and (ii) provide a guarantee of your
 signature:
	  	 REGISTERED HOLDER
  
 Please print name and address of
 Registered Holder:

		  	  

	  
	  	Name
	Name	  	
		
	  
	  	  

	Address	  	Address
		  	
	  
	  	  

	  
	  	  

	  
	  	  

		
	 Social Security or other
 Taxpayer
Identification
 Number, if any
	  	
	  
	  	
	Signature	  	
	Signature Guarantee:
                            	  	
	(if assigned to another person)	  	
	  
 SIGNATURE GUARANTEE
  
 Signatures must be guaranteed by an “eligible guarantor institution” meeting
the requirements of the Security
	  	

  

 A-14 

			
	Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as
may be determined by the Security Registrar in addition to, or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.	  	

  

 A-15 

 ELECTION TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT 
 The undersigned Holder of this Corporate Units Certificate hereby irrevocably exercises the option to effect [Early Settlement] [Cash Merger Early Settlement following a
Cash Merger] in accordance with the terms of the Purchase Contract Agreement with respect to the Purchase Contracts underlying the number of Corporate Units evidenced by this Corporate Units Certificate specified below. The option to effect [Early
Settlement] [Cash Merger Early Settlement] may be exercised only with respect to Purchase Contracts underlying Corporate Units in multiples of 20 Corporate Units or an integral multiple thereof; provided that if Applicable Ownership Interests in the
Treasury Portfolio have replaced Applicable Ownership Interests in the Senior Notes as a component of the Corporate Units, Corporate Units Holders may only effect [Early Settlement] [Cash Merger Early Settlement] in multiples of 360,000 Corporate
Units. The undersigned Holder directs that a certificate for shares of Common Stock, (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) or other securities deliverable
upon such [Early Settlement] [Cash Merger Early Settlement] be registered in the name of, and delivered, together with a check in payment for any fractional share (except with respect to shares of Series A Preferred Stock) and any Corporate Units
Certificate representing any Corporate Units evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the related Purchase Contracts is not effected, to the undersigned at the address indicated below unless a different name
and address have been indicated below. Pledged Applicable Ownership Interests in Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, deliverable upon such [Early Settlement] [Cash Merger Early
Settlement] will be transferred in accordance with the transfer instructions set forth below. If shares are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer tax payable incident thereto.

  

							
	Dated:	 	  
	    	Signature	 	  

  

			
	Signature Guarantee:	 	  

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

 A-16 

 Number of Units evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the
related Purchase Contracts is being elected: 
  

			
	If shares of Common Stock, Series A Preferred Stock or Corporate Units Certificates are to be registered in the name of and delivered to and Pledged Applicable Ownership Interests in
Senior Notes or the Applicable Ownership Interests in the Treasury Portfolio, as the case may be, are to be transferred to a Person other than the Holder, please print such Person’s name and address:	  	 REGISTERED HOLDER
  
 Please print name and address of
 Registered Holder:

	  	  

		  	Name
		  	  

	  
	  	Address
	Name	  	  

		  	  

	  
	  	  

	Address	  	
		
	  
	  	
	  
	  	
	  
	  	
		
	 Social Security or other
 Taxpayer
Identification
	  	
		
	Number, if any	  	
		
	 SIGNATURE GUARANTEE
  
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.
	  	

  

 A-17 

 Transfer Instructions for Pledged Applicable Ownership Interests in Senior Notes or the Applicable Ownership Interests in
the Treasury Portfolio, as the case may be, transferable upon [Early Settlement] [Cash Merger Early Settlement] or a Termination Event: 
  

	
	  

	  

	  

  

 A-18 

 [TO BE ATTACHED TO GLOBAL CERTIFICATES] 
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE 
 The initial number of Corporate Units
represented by this Global Certificate is 5,000,000. The following increases or decreases in this Global Certificate have been made: 
  

									
	 Date
	  	 Amount of
increase in
Number of
Corporate Units
evidenced by
the
Global
Certificates
	  	 Amount of
decrease in
Number of
Corporate Units
evidenced by
the
Global Certificate
	  	 Number of
Corporate Units
evidenced by
this
Global
Certificate
following such
decrease or
increase
	  	 Signature of
authorized
signatory
of
Purchase
Contract
Agent

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

 A-19 

 EXHIBIT B 
 (FORM OF FACE OF TREASURY UNITS CERTIFICATE) 
 [For inclusion in Global Certificate only - THIS CERTIFICATE
IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
“DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS CERTIFICATE IS EXCHANGEABLE FOR CERTIFICATES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS CERTIFICATE (OTHER THAN A TRANSFER OF THIS CERTIFICATE 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 LIMITED CIRCUMSTANCES. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
  

			
	 No.         
	  	CUSIP No. 023139 801
	 Number of Treasury Units:         
	  	

 AMBAC FINANCIAL GROUP, INC. 
 Treasury Units 
 This Treasury Units Certificate certifies that [Cede & Co.]
[                    ] is the registered Holder of the number of Treasury Units set forth above [For inclusion in Global Certificates only -
or such other number of Treasury Units reflected in the Schedule of Increases or Decreases in Global Certificate attached hereto]. Each Treasury Unit consists of (i) a 1/20 undivided beneficial ownership interest of a Treasury Security
having a principal amount at maturity equal to $1,000, subject to the Pledge of such Treasury Security by such Holder pursuant to the Pledge Agreement, and (ii) the rights and obligations of the Holder under one Purchase Contract with the
Company. All capitalized terms used but not otherwise defined herein which are defined in the Purchase Contract Agreement (as defined on the reverse hereof) have the meaning set forth therein. 

 Pursuant to the Pledge Agreement, the Treasury Securities constituting part of each Treasury Unit
evidenced hereby have been pledged to the Collateral Agent, for the benefit of the Company, to secure the obligations of the Holder under the Purchase Contract comprising part of such Treasury Unit. 
 Each Purchase Contract evidenced hereby obligates the Holder of this Treasury Units Certificate to purchase, and the Company, to sell, on May 17,
2011 (the “Purchase Contract Settlement Date”), at a price equal to $50.00 (the “Stated Amount”), a number of newly issued shares of common stock, par value $0.01 per share (“Common Stock”), of the
Company, equal to the Settlement Rate (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, a number of shares of Series A Preferred Stock equal to the product of the Settlement Rate and the Conversion Ratio),
unless prior to or on the Purchase Contract Settlement Date there shall have occurred a Termination Event, an Early Settlement or a Cash Merger Early Settlement with respect to such Purchase Contract, all as provided in the Purchase Contract
Agreement and more fully described on the reverse hereof. The purchase price (the “Purchase Price”) for the shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares
of Series A Preferred Stock) purchased pursuant to each Purchase Contract evidenced hereby, if not paid earlier, shall be paid on the Purchase Contract Settlement Date by application of the proceeds from the Treasury Securities at maturity pledged
to secure the obligations of the Holder under such Purchase Contract of the Treasury Units of which such Purchase Contract is a part. 
 Each Purchase Contract evidenced hereby obligates the holder to agree, for United States federal,
state and local income and franchise tax purposes, to (i) treat an acquisition of the Treasury Units as an acquisition of the Applicable Ownership Interest in the Treasury Security and Purchase Contract constituting the Treasury Units and
(ii) treat itself as owner of the applicable interest in the Collateral Account, including the Applicable Ownership Interest in the Treasury Securities. The Company shall pay, on each Payment Date, in respect of each Purchase Contract forming
part of a Treasury Unit evidenced hereby, an amount (the “Contract Adjustment Payments”) equal to 0.00% per year of the Stated Amount; provided, however, that if the Authorized Share Condition is not satisfied by the 120th day following the initial issuance date of the Units, the Contract Adjustment Payments shall increase to 5% per year of the Stated Amount per Purchase
Contract from such date to, but excluding, the date on which the Authorized Share Condition is satisfied. Such Contract Adjustment Payments shall be payable to the Person in whose name this Treasury Units Certificate is registered at the close of
business on the Record Date for such Payment Date. 
 Contract Adjustment Payments will be payable at the office of the Purchase Contract
Agent in New York City. If the book-entry system for the Corporate Units has been terminated, the Contract Adjustment Payments will be payable, at the option of the Company, by check mailed to the address of the Person entitled thereto at such
Person’s address as it appears on the Security Register, or by wire transfer to the account designated by such Person by a prior written notice to the Purchase Contract Agent. 
 Reference is hereby made to the further provisions set forth on the reverse hereof, which further provisions shall for all purposes have the same effect
as if set forth at this place. 
  

 B-2 

 Unless the certificate of authentication hereon has been executed by the Purchase Contract Agent by
manual signature, this Treasury Units Certificate shall not be entitled to any benefit under the Pledge Agreement or the Purchase Contract Agreement or be valid or obligatory for any purpose. 
  

 B-3 

 IN WITNESS WHEREOF, the Company and the Holder specified above have caused this instrument to be duly
executed. 
  

			
	AMBAC FINANCIAL GROUP, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

					
	 HOLDER SPECIFIED ABOVE (as to obligations of such Holder under the Purchase Contracts)

		
	 By:
	 	 THE BANK OF NEW YORK,
 not individually
but solely
 as Attorney-in-Fact or such Holder

			
		 	By:	 	  

		 		 	Authorized Signatory

 CERTIFICATE OF AUTHENTICATION OF 
 PURCHASE CONTRACT AGENT 
 This is one of the Treasury Units referred to in the
within-mentioned Purchase Contract Agreement. 
  

			
	Company Name
	
	 THE BANK OF NEW YORK,
as Purchase Contract Agent

		
	By:	 	  

		 	    Authorized Signatory

 Dated:
                     
  

 B-4 

 (REVERSE OF TREASURY UNIT CERTIFICATE) 
 Each Purchase Contract evidenced hereby is governed by a Purchase Contract Agreement, dated as of March 12, 2008 (as may be supplemented from time
to time, the “Purchase Contract Agreement”) between the Company and The Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury Units from time to time (including its
successors thereunder, herein called the “Purchase Contract Agent”), to which the Purchase Contract Agreement and supplemental agreements thereto reference is hereby made for a description of the respective rights, limitations of
rights, obligations, duties and immunities thereunder of the Purchase Contract Agent, the Company and the Holders and of the terms upon which the Treasury Units Certificates are, and are to be, executed and delivered. 
 Each Purchase Contract evidenced hereby obligates the Holder of this Treasury Units Certificate to purchase, and the Company to sell, on the Purchase
Contract Settlement Date at a price equal to the Stated Amount (the “Purchase Price”) a number of newly issued shares of Common Stock equal to the Settlement Rate (or, in the circumstances described in Section 5.08 of the
Purchase Contract Agreement, a number of shares of Series A Preferred Stock equal to the product of the Settlement Rate and the Conversion Ratio), unless an Early Settlement, a Cash Merger Early Settlement or a Termination Event with respect to the
Units of which such Purchase Contract is a part shall have occurred. 
 No fractional shares of Common Stock will be issued upon settlement
of Purchase Contracts, as provided in Section 5.09 of the Purchase Contract Agreement. 
 Each Purchase Contract evidenced hereby, which
is settled through Early Settlement or Cash Merger Early Settlement shall obligate the Holder of the related Corporate Units to purchase at the Purchase Price, and the Company to sell, a number of newly issued shares of Common Stock equal to the
Early Settlement Rate (in the case of an Early Settlement) or applicable Settlement Rate plus the Make-Whole Share Amount (in the case of a Cash Merger Early Settlement) (or, in the circumstances described in Section 5.08 of the Purchase
Contract Agreement, a number of shares of Series A Preferred Stock equal to the product of the Conversion Ratio and the Early Settlement Rate (in the case of an Early Settlement) or applicable Settlement Rate plus the Make-Whole Share Amount (in the
case of a Cash Merger Early Settlement)). 
 In accordance with the terms of the Purchase Contract Agreement, unless a Termination Event has
occurred, the Holder of this Treasury Unit shall pay the Purchase Price for the shares of the Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) purchased
pursuant to each Purchase Contract evidenced hereby by effecting a Cash Settlement, an Early Settlement or, if applicable, a Cash Merger Early Settlement of each such Purchase Contract or by applying a principal amount of the Pledged Treasury
Securities underlying such Holder’s Treasury Unit equal to the Stated Amount of such Purchase Contract to the purchase of the Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of
Series A Preferred Stock). A Holder of Treasury Units who (1) does not on or prior to 11:00 a.m. (New York City time) on the second Business Day immediately preceding the 

  

 B-5 

 
Purchase Contract Settlement Date, notify the Purchase Contract Agent of its intention to effect a Cash Settlement, or who does so notify the Purchase
Contract Agent but fails to make an effective Cash Settlement prior to 11:00 a.m. (New York City time) on the Business Day immediately preceding the Purchase Contract Settlement Date, (2) on or prior to 5:00 p.m. (New York City time) on
the second Business Day prior to the Purchase Contract Settlement Date, does not make an effective Early Settlement, or (3) in the event of a Cash Merger, on or prior to the close of business on the second Business Day immediately preceding the
Purchase Contract Settlement Date, does not make an effective Cash Merger Early Settlement, shall pay the Purchase Price for the shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement,
shares of Series A Preferred Stock) to be issued under the related Purchase Contract from the proceeds of the Pledged Treasury Securities. 
 The Purchase Contracts and all obligations and rights of the Company and the Holders thereunder, including, without limitation, the rights of the Holders to receive and the obligation of the Company to pay any Contract Adjustment Payments,
shall immediately and automatically terminate, without the necessity of any notice or action by any Holder, the Purchase Contract Agent or the Company, if, on or prior to the Purchase Contract Settlement Date, a Termination Event shall have
occurred. Upon the occurrence of a Termination Event, the Company shall promptly but in no event later than two Business Days thereafter give written notice to the Purchase Contract Agent, the Collateral Agent and the Holders, at their addresses as
they appear in the Security Register. Upon and after the occurrence of a Termination Event, the Collateral Agent shall release the Pledged Treasury Securities (as defined in the Pledge Agreement) forming a part of each Treasury Unit. A Treasury Unit
shall thereafter represent the right to receive the Proceeds of the Treasury Security forming a part of such Treasury Unit, in accordance with the terms of the Purchase Contract Agreement and the Pledge Agreement. 
 The Treasury Units Certificates are issuable only in registered form and only in denominations of a single Treasury Unit and any integral multiple
thereof. The transfer of any Treasury Units Certificate will be registered and Treasury Units Certificates may be exchanged as provided in the Purchase Contract Agreement. The Security Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents permitted by the Purchase Contract Agreement. No service charge shall be required for any such registration of transfer or exchange, but the Company and the Purchase Contract Agent may require payment
of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. A Holder who elects to substitute Applicable Ownership Interests in Senior Notes, for Treasury Securities, thereby recreating Corporate Units, shall
be responsible for any fees or expenses associated therewith. Except as provided in the Purchase Contract Agreement, for so long as the Purchase Contract underlying a Treasury Unit remains in effect, such Treasury Unit shall not be separable into
its constituent parts, and the rights and obligations of the Holder of 

  

 B-6 

 
such Treasury Unit in respect of the Treasury Security and the Purchase Contract constituting such Treasury Unit may be transferred and exchanged only as a
Treasury Unit. 
 Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in
Senior Notes as a component of the Corporate Units and subject to the conditions set forth in the Purchase Contract Agreement, a Holder of Treasury Units may recreate, at any time prior to the close of business on the second Business Day immediately
preceding the Purchase Contract Settlement Date (except as provided below), Corporate Units by delivering to the Collateral Agent Senior Notes with an aggregate principal amount, equal to the aggregate principal amount at maturity of the Pledged
Treasury Securities in exchange for the release of such Pledged Treasury Securities in accordance with the terms of the Purchase Contract Agreement and the Pledge Agreement. Notwithstanding the foregoing, a Holder shall not have the right to effect
such a Collateral Substitution during the period beginning on the Business Day immediately preceding the Initial Remarketing Date and ending on the Remarketing Settlement Date. From and after such substitution, the Holder’s Units shall be
referred to as a “Corporate Unit”. Any such creation of Corporate Units may be effected only in multiples of 20 Treasury Units for 20 Corporate Units. 
 If the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, a Holder may, at any time on or prior to the
close of business on the second Business Day immediately preceding the Purchase Contract Settlement Date (except as provided below), substitute for the Applicable Ownership Interests in the Treasury Portfolio, Treasury Securities having an aggregate
principal amount at maturity equal to the aggregate principal amount at U.S. treasury securities at maturity included in the Applicable Ownership Interests in the Treasury Portfolio constituting a part of the Corporate Units, but only in integral
multiples of 360,000 Treasury Units. In such an event, the Holder shall transfer the Treasury Securities to the Collateral Agent, and the Purchase Contract Agent shall instruct the Collateral Agent to release the Pledge of and transfer to the Holder
the appropriate Applicable Ownership Interests in the Treasury Portfolio. Notwithstanding the foregoing, a Holder shall not have the right to effect such a Collateral Substitution during the period beginning on and including the Business Day
immediately preceding the Initial Remarketing Date and ending on and including the Remarketing Settlement Date. 
 The Company shall pay, on
each Payment Date, the Contract Adjustment Payments payable in respect of each Purchase Contract to the Person in whose name the Treasury Units Certificate evidencing such Purchase Contract is registered at the close of business on the Record Date
for such Payment Date. Contract Adjustment Payments will be payable at the office of the Purchase Contract Agent in New York City. If the book-entry system for the Corporate Units has been terminated, the Contract Adjustment Payments will be
payable, at the option of the Company, by check mailed to the address of the Person entitled thereto at such Person’s address as it appears on the Security Register, or by wire transfer to the account designated by such Person by a prior
written notice to the Purchase Contract Agent. 
 Subject to and upon compliance with the provisions of the Purchase Contract Agreement, at
the option of the Holder thereof, Purchase Contracts underlying Units may be settled early at any time prior to 5:00 p.m. (New York City time) on the second Business Day 

  

 B-7 

 
immediately preceding the Purchase Contract Settlement Date (“Early Settlement”) as provided in the Purchase Contract Agreement; provided,
that a holder shall not have the right to elect Early Settlement during the period beginning on the Business Day immediately preceding the Initial Remarketing Date and ending on the Remarketing Settlement Date. In order to exercise the right to
effect Early Settlement with respect to any Purchase Contract evidenced by this Certificate, the Holder of this Treasury Units Certificate shall deliver to the Purchase Contract Agent at the Corporate Trust Office an Election to Settle Early form
set forth below duly completed and accompanied by payment in the form of immediately available funds payable to the order of the Company in an amount (the “Early Settlement Amount”) equal to the sum of: 
 (i) the product of (A) the Stated Amount multiplied by (B) the number of Purchase Contracts with respect to which the Holder has
elected to effect Early Settlement, plus 
 (ii) if such delivery is made with respect to any Purchase Contracts during the
period after the close of business on any Record Date next preceding any Payment Date and prior to the opening of business on such Payment Date, an amount equal to the Contract Adjustment Payments payable on such Payment Date with respect to such
Purchase Contracts. 
 Upon Early Settlement of Purchase Contracts by a Holder of the related Units, the Pledged Treasury Securities
underlying such Units shall be released from the Pledge as provided in the Pledge Agreement and the Holder shall be entitled to receive a number of shares of Common Stock on account of each Purchase Contract forming part of a Treasury Unit as to
which Early Settlement is effected equal (subject to Section 5.08) to 6.2775 shares of Common Stock per Purchase Contract (the “Early Settlement Rate”). The Early Settlement Rate shall be adjusted in the same manner and at the
same time as the Settlement Rate is adjusted as provided in Section 5.04 of the Purchase Contract Agreement. 
 Upon the occurrence of a
Cash Merger, a Holder of Treasury Units may effect Cash Merger Early Settlement of the Purchase Contract underlying such Treasury Units pursuant to the terms of Section 5.04(b)(ii) of the Purchase Contract Agreement. Upon Cash Merger Early
Settlement of Purchase Contracts by a Holder of the related Treasury Units, the Pledged Treasury Securities underlying such Treasury Units shall be released from the Pledge as provided in the Pledge Agreement. 
 Upon registration of transfer of this Treasury Units Certificate, the transferee shall be bound (without the necessity of any other action on the part of
such transferee, except as may be required by the Purchase Contract Agent pursuant to the Purchase Contract Agreement), under the terms of the Purchase Contract Agreement and the Purchase Contracts evidenced hereby and the transferor shall be
released from the obligations under the Purchase Contracts evidenced by this Treasury Units Certificate. The Company covenants and agrees, and the Holder, by its acceptance hereof, likewise covenants and agrees, to be bound by the provisions of this
paragraph. 
 The Holder of this Treasury Units Certificate, by its acceptance hereof, irrevocably authorizes the Purchase Contract Agent to
enter into and perform the related 

  

 B-8 

 
Purchase Contracts forming part of the Treasury Units evidenced hereby on its behalf as its attorney-in-fact, expressly withholds any consent to the
assumption (i.e., affirmance) of the Purchase Contracts by the Company or its trustee in the event that the Company becomes the subject of a case under the Bankruptcy Code, agrees to be bound by the terms and provisions thereof, covenants and agrees
to perform its obligations under such Purchase Contracts, consents to the provisions of the Purchase Contract Agreement, authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract Agreement and the Pledge Agreement on its
behalf as its attorney-in-fact, and consents to the Pledge of the Treasury Securities underlying this Treasury Units Certificate pursuant to the Pledge Agreement. The Holder further covenants and agrees, that, to the extent and in the manner
provided in the Purchase Contract Agreement and the Pledge Agreement, but subject to the terms thereof, payments in respect to the aggregate principal amount of the Pledged Treasury Securities on the Purchase Contract Settlement Date shall be paid
by the Collateral Agent to the Company in satisfaction of such Holder’s obligations under such Purchase Contract and such Holder shall acquire no right, title or interest in such payments. 
 Subject to certain exceptions, the provisions of the Purchase Contract Agreement may be amended with the consent of the Holders of a majority of the
Outstanding Units. 
 The Purchase Contracts shall be governed by, and construed in accordance with, the laws of the State of New York,
without regard to the conflicts of law provisions thereof. 
 Prior to due presentment of this Certificate for registration or transfer, the
Company, the Purchase Contract Agent and any agent of the Company or the Purchase Contract Agent may treat the Person in whose name this Treasury Units Certificate is registered as the owner of the Treasury Units evidenced hereby for the purpose of
receiving payments of interest on the Treasury Securities, receiving payments of Contract Adjustment Payments (subject to any applicable record date), performance of the Purchase Contracts and for all other purposes whatsoever, whether or not any
payments in respect thereof be overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the contrary. 
 The Purchase Contracts shall not, prior to the settlement thereof, entitle the Holder to any of the rights of a holder of shares of Common Stock or
Series A Preferred Stock. 
 A copy of the Purchase Contract Agreement is available for inspection at the offices of the Purchase Contract
Agent. 
  

 B-9 

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

			
	TEN COM:	  	as tenants in common
	UNIF GIFT MIN ACT:	  	                      Custodian
                                
   (cust)               (minor)
 Under Uniform Gifts to Minors Act of

		  	  

	TENANT:	  	as tenants by the entireties
	JT TEN:	  	 as joint tenants with right of survivorship and
 not as
tenants in common

	Additional abbreviations may also be used though not in the above list.	  	

  
  
  

			
	 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
	 	  

	(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

  

	
	  

 (Please Print or Type Name and Address Including Postal Zip Code of Assignee) 
 the within Treasury Units Certificates and all rights thereunder, hereby irrevocably constituting and appointing
                                    , attorney to transfer
said Treasury Units Certificates on the books of Ambac Financial Group, Inc., with full power of substitution in the premises. 
  

							
	Dated:                     	 	Signature	 	  

		 	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Treasury Units Certificates in every particular, without
alteration or enlargement or any change whatsoever.

  

			
	Signature Guarantee:	  	  

	SIGNATURE GUARANTEE

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

 B-10 

 SETTLEMENT INSTRUCTIONS 
 The undersigned Holder directs that a certificate for shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) deliverable
upon settlement on or after the Purchase Contract Settlement Date of the Purchase Contracts underlying the number of Treasury Units evidenced by this Treasury Units Certificate be registered in the name of, and delivered, together with a check in
payment for any fractional share (except with respect to shares of Series A Preferred Stock), to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares are to be registered in the name
of a Person other than the undersigned, the undersigned will pay any transfer tax payable incident thereto. 
 Dated:
                     
  

			
	 If shares are to be registered in the
 name of and
delivered to a Person
 other than the Holder, please (i)
 print
such Person’s name and address
 and (ii) provide a guarantee of your
 signature:
	  	 REGISTERED HOLDER
  
 Please print name and address of Registered Holder:

	  
	  	  

	Name	  	Name
	  
	  	  

	Address	  	Address
		
		  	
	  
	  	  

	  
	  	  

	  
	  	  

		
	 Social Security or other
 Taxpayer
Identification
 Number, if any
	  	
	  
	  	
	Signature	  	
	Signature Guarantee:                                  
                                        
   	  	
	(if assigned to another person)	  	
	  
 SIGNATURE GUARANTEE
  
 Signatures must be guaranteed by an “eligible guarantor
institution” meeting the requirements.

  

 B-11 

			
	 of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program
(“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.
	  	

  

 B-12 

 ELECTION TO SETTLE EARLY/CASH MERGER EARLY SETTLEMENT 
 The undersigned Holder of this Treasury Units Certificate hereby irrevocably exercises the option to effect [Early Settlement] [Cash Merger Early Settlement following a
Cash Merger] in accordance with the terms of the Purchase Contract Agreement with respect to the Purchase Contracts underlying the number of Treasury Units evidenced by this Treasury Units Certificate specified below. The option to effect [Early
Settlement] [Cash Merger Early Settlement] may be exercised only with respect to Purchase Contracts underlying Treasury Units in multiples of 20 Treasury Units or an integral multiple thereof. The undersigned Holder directs that a certificate for
shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) or other securities deliverable upon such [Early Settlement] [Cash Merger Early Settlement] be
registered in the name of, and delivered, together with a check in payment for any fractional share (except with respect to shares of Series A Preferred Stock) and any Treasury Units Certificate representing any Treasury Units evidenced hereby as to
which [Early Settlement] [Cash Merger Early Settlement] of the related Purchase Contracts is not effected, to the undersigned at the address indicated below unless a different name and address have been indicated below. Treasury Securities
deliverable upon such [Early Settlement] [Cash Merger Early Settlement] will be transferred in accordance with the transfer instructions set forth below. If shares are to be registered in the name of a Person other than the undersigned, the
undersigned will pay any transfer tax payable incident thereto. 
  

							
	 Dated:
	 	  
	  	Signature	  	  

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

 B-13 

 Number of Units evidenced hereby as to which [Early Settlement] [Cash Merger Early Settlement] of the
related Purchase Contracts is being elected: 
  
  

			
	If shares of Common Stock, Series A Preferred Stock or Treasury Units Certificates are to be registered in the name of and delivered Applicable Ownership Interests in the Treasury
Portfolio, as the case may be, are to be transferred to a Person other than the Holder, please print such Person’s name and address:	 	REGISTERED HOLDER
	 	 Please print name and address of Registered Holder:

		
	  
	 	  

	Name	 	Name
		
	  
	 	  

	 Address
	 	Address
		
	  
	 	  

	  
	 	  

	  
	 	  

		
	 Social Security or other
 Taxpayer Identification
 Number, if any
	 	
	  
	 	
	Signature	 	
	Signature Guarantee:                                  
                                        
   	 	
	(if assigned to another person)	 	

  

 B-14 

 Transfer Instructions for Pledged Treasury Securities Transferable upon [Early Settlement] [Cash Merger
Early Settlement] or a Termination Event: 
  
  
  
  
  
  
  

 B-15 

 [TO BE ATTACHED TO GLOBAL CERTIFICATES] 
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE 
 The initial number of Treasury Units
represented by this Global Certificate is zero. The following increases or decreases in this Global Certificate have been made: 
  

									
	 Date
	  	 Amount of
 increase in
 Number of
 Treasury Units
 evidenced by the

 Global
 Certificates
	  	 Amount of
 decrease in
 Number of
 Treasury Units
 evidenced by the

 Global
 Certificate

	  	 Number of
 Treasury Units
 evidenced by this
 Global
 Certificate
 following such
 decrease
or
 increase
	  	 Signature of
 authorized
 signatory of
 Purchase
 Contract
 Agent

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

 B-16 

 EXHIBIT C 
 INSTRUCTION TO PURCHASE CONTRACT AGENT 
 (To Create Treasury Units or Corporate Units) 
 The Bank of New York, 
 as Purchase Contract Agent 
 101 Barclay Street – 8W 
 New York, New York 10286 
 Attention: Corporate Trust Division–Corporate Finance Unit 
 Fax:
212-815-5704 
  

	 	Re:	[                     Corporate Units]
[                     Treasury Units] of Ambac Financial Group, Inc., a Delaware corporation (the “Company”).

 The undersigned Holder hereby notifies you that it has delivered to The Bank of New York, as Securities Intermediary, for
credit to the Collateral Account, $             aggregate principal amount of [Applicable Ownership Interests in Senior Notes] [Treasury Securities] [Applicable Ownership Interests
in the Treasury Portfolio] in exchange for the [Pledged Applicable Ownership Interests in Senior Notes] [Pledged Treasury Securities] [Pledged Applicable Ownership Interests in the Treasury Portfolio] held in the Collateral Account, in accordance
with the Pledge Agreement, dated as of March 12, 2008 (the “Pledge Agreement”; unless otherwise defined herein, terms defined in the Pledge Agreement are used herein as defined therein), between you, the Company, the Collateral
Agent, the Custodial Agent and the Securities Intermediary. The undersigned Holder has paid all applicable fees and expenses relating to such exchange. The undersigned Holder hereby instructs you to instruct the Collateral Agent to release to you on
behalf of the undersigned Holder the [Pledged Applicable Ownership Interests in Senior Notes] [Pledged Treasury Securities] [Pledged Applicable Ownership Interests in the Treasury Portfolio] related to such [Corporate Units] [Treasury Units].

  

											
	Date:	 	  
	 		 		 		 	  

		 		 		 		 		 	Signature

											
					
		 		 		 	Signature Guarantee:	 	  

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

 C-1 

 Please print name and address of Registered Holder: 
  

					
	  
	  	  
	 	Name
	Social Security or other Taxpayer	  	Identification Number, if any	 	
			
	Address	  		 	
			
	  
	  		 	
			
	  
	  		 	
			
	  
	  		 	
			
	  
	  		 	

  

 C-2 

 EXHIBIT D 
 NOTICE FROM PURCHASE CONTRACT AGENT 
 TO HOLDERS 
 (Transfer of Collateral upon Occurrence of a Termination Event) 
 [HOLDER] 
 [ADDRESS] 
 Attention:
[                    ] 
 Fax:
[                    ] 
  

	 	Re:	[                     Corporate Units]
[                     Treasury Units] of Ambac Financial Group, Inc., a Delaware corporation (the “Company”)

 Please refer to the Purchase Contract Agreement, dated as of March 12, 2008 (the “Purchase Contract
Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders
of Corporate Units and Treasury Units from time to time. 
 We hereby notify you that a Termination Event has occurred and that [Applicable
Ownership Interests in Senior Notes] [Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term)] [the Treasury Securities] comprising a portion of your ownership interest in
                     [Corporate Units] [Treasury Units] have been released and are being held by us for your account pending receipt of
transfer instructions with respect to such [Applicable Ownership Interests in Senior Notes] [Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) and] [Treasury Securities] (the
“Released Securities”). 
 Pursuant to Section 3.15 of the Purchase Contract Agreement, we hereby request written
transfer instructions with respect to the Released Securities. Upon receipt of your instructions and upon transfer to us of your [Corporate Units][Treasury Units] effected through book-entry or by delivery to us of your [Corporate Units
Certificate][Treasury Units Certificate], we shall transfer the Released Securities by book-entry transfer or other appropriate procedures, in accordance with your instructions. In the event you fail to effect such transfer or delivery, the Released
Securities and any distributions thereon, shall be held in our name, or a nominee in trust for your benefit, until such time as such [Corporate Units][Treasury Units] are transferred or your [Corporate Units Certificate] [Treasury Units Certificate]
is surrendered or satisfactory evidence is provided that such [Corporate Units Certificate][Treasury Units Certificate] has been destroyed, lost or stolen, together with any indemnification that we or the Company may require. 
  

 D-1 

					
	Date:	  	 THE BANK OF NEW YORK,
 as the Purchase
Contract Agent

			
		  	By:	 	  

		  	Name:	 	
		  		 	Authorized Signatory

  

 D-2 

 EXHIBIT E 
 NOTICE TO SETTLE BY SEPARATE CASH 
 The Bank of New York 
 The Purchase Contract Agent 
 101 Barclay Street – 8W 
 New York, New York 10286 
 Attention: Corporate Trust Division–Corporate Finance Unit 
 Fax: 212-815-5704 
  

	 	Re:	[                     Corporate Units] [Treasury Units] of Ambac Financial
Group, Inc., a Delaware corporation (the “Company”) 

 The undersigned Holder hereby irrevocably notifies you
in accordance with Section 5.02 of the Purchase Contract Agreement, dated as of March 12, 2008 (the “Purchase Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract Agreement are used
herein as defined therein), between the Company and you, as Purchase Contract Agent and as Attorney-in-Fact for the Holders of the Purchase Contracts, that such Holder has elected to pay to the Securities Intermediary for deposit in the Collateral
Account, prior to or on 11:00 a.m. (New York City time) on the Business Day immediately preceding the Purchase Contract Settlement Date (in lawful money of the United States wire transfer, in immediately available funds),
$             as the Purchase Price for the shares of Common Stock [Series A Preferred Stock] issuable to such Holder by the Company with respect to
                     Purchase Contracts on the Purchase Contract Settlement Date. The undersigned Holder hereby instructs you to notify
promptly the Collateral Agent of the undersigned Holders’ election to make such Cash Settlement with respect to the Purchase Contracts related to such Holder’s [Corporate Units] [Treasury Units]. 
  

					
	 Date:
	 	  
	  	  

		 		  	Signature
			
		 		  	Signature Guarantee:                                  
                                     

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

 E-1 

 Please print name and address of Registered Holder: 
  

	
	  

	
	  

  

 E-2 

 EXHIBIT F 
 NOTICE FROM PURCHASE CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Settlement of Purchase Contract through Remarketing) 
 The
Bank of New York, 
 as Collateral Agent 
 101 Barclay Street
– 8W 
 New York, New York 10286 
 Attention: Corporate Trust
Division–Corporate Finance Unit 
 Fax: 212-815-5704 
  

	 	Re:	[                    ] Corporate Units of Ambac Financial Group, Inc., a
Delaware corporation (the “Company”) 

 Please refer to the Purchase Contract Agreement, dated as of
March 12, 2008 (the “Purchase Contract Agreement”; unless otherwise defined herein, terms defined in the Purchase Contract Agreement are used herein as defined therein), between the Company and the undersigned, as Purchase
Contract Agent and as attorney-in-fact for the Holders of Corporate Units and Treasury Units from time to time. 
 In accordance with
Section 5.02 of the Purchase Contract Agreement and, based on notices of [Early Settlements] received from Holders of Corporate Units as of the close of business on the second Business Day immediately preceding the Initial Remarketing Date, we
hereby notify you that an aggregate principal amount of $             Senior Notes are to be tendered for purchase in the Remarketing. 
  

					
	Date:	  	 THE BANK OF NEW YORK,
 as the Purchase Contract Agent

			
		  	By:	 	  

		  	Name:	 	
		  		 	Authorized Signatory

  

 F-1Pledge Agreement

 Exhibit 4.4 
 AMBAC FINANCIAL GROUP, INC. 
 and 
 THE BANK OF NEW YORK, as Collateral Agent, Custodial Agent 
 and Securities Intermediary

 and 
 THE BANK OF NEW YORK, as
Purchase Contract Agent 
 PLEDGE AGREEMENT 
 Dated as of March 12, 2008 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1
	Definitions
			
	Section 1.01.	  	Definitions	  	2
	
	ARTICLE 2
	Pledge
			
	Section 2.01.	  	Pledge	  	6
	Section 2.02.	  	Control	  	6
	Section 2.03.	  	Termination	  	6
	
	ARTICLE 3
	Distributions on Pledged Collateral
			
	Section 3.01.	  	Income and Distributions	  	6
	Section 3.02.	  	Principal Payments Following Termination Event	  	6
	Section 3.03.	  	Principal Payments Prior to or on Purchase Contract Settlement Date	  	7
	Section 3.04.	  	Payments to Purchase Contract Agent	  	7
	Section 3.05.	  	Assets Not Properly Released	  	7
	
	ARTICLE 4
	Control
			
	Section 4.01.	  	Establishment of Collateral Account	  	8
	Section 4.02.	  	Treatment as Financial Assets	  	8
	Section 4.03.	  	 Sole Control by Collateral Agent
	  	8
	Section 4.04.	  	Securities Intermediary’s Location	  	9
	Section 4.05.	  	No Other Claims	  	9
	Section 4.06.	  	Investment and Release	  	9
	Section 4.07.	  	Statements and Confirmations	  	9
	Section 4.08.	  	Tax Allocations	  	9
	Section 4.09.	  	No Other Agreements	  	9
	Section 4.10.	  	Powers Coupled with an Interest	  	9
	Section 4.11.	  	Waiver Of Lien; Waiver Of Set-off	  	10
	
	ARTICLE 5
	Initial Deposit; Creation of Treasury Units and Recreation of Corporate Units
			
	Section 5.01.	  	Initial Deposit of Senior Notes	  	10
	Section 5.02.	  	Creation of Treasury Units	  	10
	Section 5.03.	  	Recreation of Corporate Units	  	11
	Section 5.04.	  	Termination Event	  	13

  

 i 

					
	 Section 5.05.
	  	Cash Settlement	  	14
	 Section 5.06.
	  	Early Settlement and Cash Merger Early Settlement	  	16
	 Section 5.07.
	  	Application of Proceeds in Settlement of Purchase Contracts	  	17
	 Section 5.08.
	  	Remarketing	  	18
	 Section 5.09.
	  	Remarketing of Separate Senior Notes	  	19
	
	ARTICLE 6
	Voting Rights of Senior Notes Underlying the Pledged Applicable Ownership Interests in Senior Notes
			
	 Section 6.01.
	  	Voting Rights	  	20
	
	ARTICLE 7
	Rights and Remedies
			
	 Section 7.01.
	  	Rights and Remedies of the Collateral Agent	  	20
	 Section 7.02.
	  	Substitutions	  	21
	
	ARTICLE 8
	Representations and Warranties; Covenants
			
	 Section 8.01.
	  	Representations and Warranties	  	21
	 Section 8.02.
	  	Covenants	  	22
	
	ARTICLE 9
	The Collateral Agent, the Custodial Agent and the Securities Intermediary
			
	 Section 9.01.
	  	Appointment, Powers and Immunities	  	23
	 Section 9.02.
	  	Instructions of the Company	  	24
	 Section 9.03.
	  	Reliance by Collateral Agent and Securities Intermediary	  	24
	 Section 9.04.
	  	Certain Rights	  	24
	 Section 9.05.
	  	Merger, Conversion, Consolidation or Succession to Business	  	25
	 Section 9.06.
	  	Rights in Other Capacities	  	25
	 Section 9.07.
	  	Non-reliance on Collateral Agent, the Custodial Agent and Securities Intermediary	  	25
	 Section 9.08.
	  	Compensation and Indemnity	  	26
	 Section 9.09.
	  	Failure to Act	  	26
	 Section 9.10.
	  	Resignation of Collateral Agent, the Custodial Agent and Securities Intermediary	  	27
	 Section 9.11.
	  	Right to Appoint Agent or Advisor	  	28
	 Section 9.12.
	  	Survival	  	29
	 Section 9.13.
	  	Exculpation	  	29
	
	ARTICLE 10
	Amendment
			
	 Section 10.01.
	  	Amendment Without Consent of Holders	  	29
	 Section 10.02.
	  	Amendment with Consent of Holders	  	29

  

 ii 

					
	 Section 10.03.
	  	Execution of Amendments	  	30
	 Section 10.04.
	  	Effect of Amendments	  	31
	 Section 10.05.
	  	Reference of Amendments	  	31
	
	ARTICLE 11
	Miscellaneous
			
	 Section 11.01.
	  	No Waiver	  	31
	 Section 11.02.
	  	Governing Law; Submission to Jurisdiction; Waiver of Trial by Jury	  	31
	 Section 11.03.
	  	Notices	  	32
	 Section 11.04.
	  	Successors and Assigns	  	32
	 Section 11.05.
	  	Counterparts	  	32
	 Section 11.06.
	  	Severability	  	33
	 Section 11.07.
	  	Expenses, Etc	  	33
	 Section 11.08.
	  	Security Interest Absolute	  	33
	 Section 11.09.
	  	Notice of Termination Event	  	34

 EXHIBITS 
 Exhibit A
– Instruction from Purchase Contract Agent to Collateral Agent (Creation of Treasury Units) 
 Exhibit B – Instruction from Collateral Agent to
Securities Intermediary (Creation of Treasury Units) 
 Exhibit C – Instruction from Purchase Contract Agent to Collateral Agent (Recreation of Corporate
Units) 
 Exhibit D – Instruction from Collateral Agent to Securities Intermediary (Recreation of Corporate Units) 
 Exhibit E – Notice of Cash Settlement from Collateral Agent to Purchase Contract Agent 
 Exhibit F – Instruction to Custodial Agent Regarding Remarketing 
 Exhibit G – Instruction to Custodial Agent
Regarding Withdrawal From Remarketing 
  

 iii 

 PLEDGE AGREEMENT 
 PLEDGE AGREEMENT dated as of March 12, 2008 among AMBAC FINANCIAL GROUP, INC., a Delaware corporation (the “Company”), THE BANK OF NEW YORK, a New York banking corporation, as collateral agent (in such
capacity, together with its successors in such capacity, the “Collateral Agent”), as custodial agent (in such capacity, together with its successors in such capacity, the “Custodial Agent”), and as securities intermediary (as
defined in Section 8-102(a)(14) of the UCC) with respect to the Collateral Account (in such capacity, together with its successors in such capacity, the “Securities Intermediary”), and THE BANK OF NEW YORK, a New York banking
corporation, as purchase contract agent and as attorney-in-fact of the Holders from time to time of the Units (in such capacity, together with its successors in such capacity, the “Purchase Contract Agent”) under the Purchase Contract
Agreement. 
 RECITALS 
 WHEREAS,
the Company and the Purchase Contract Agent are parties to the Purchase Contract Agreement dated as of the date hereof (as modified and supplemented and in effect from time to time, the “Purchase Contract Agreement”), pursuant to which
5,000,000 Corporate Units will be issued (or up to 5,750,000 Corporate Units, in the event the over-allotment option is exercised with respect thereto pursuant to the Underwriting Agreement, dated March 6, 2008, among the Company and the
representatives of the underwriters named therein). 
 WHEREAS, each Corporate Unit, at issuance, consists of a unit comprised of (a) a
stock purchase contract (a “Purchase Contract”) pursuant to which the Holder will purchase from the Company not later than the Purchase Contract Settlement Date, for an amount equal to $50.00 (the “Stated Amount”), a number of
shares of the Company’s common stock, par value $0.01 per share (“Common Stock”), equal to the Settlement Rate or, if applicable, a number of shares of Series A Participating Preferred Stock, par value $0.01 (the “Series A
Preferred Stock”), as determined in accordance with Section 5.08 of the Purchase Contract Agreement and (b) either a 1/20, or 5.0%, undivided beneficial ownership interest in $1,000 principal amount of 9.5% Senior Notes due 2021,
issued by the Company (the “Senior Notes”) that is a component of a Corporate Unit then Outstanding (the “Applicable Ownership Interest in Senior Notes”) or an Applicable Ownership Interest in the Treasury Portfolio. 

WHEREAS, pursuant to the terms of the Purchase Contract Agreement and the Purchase Contracts, the Holders of the Units have irrevocably authorized the
Purchase Contract Agent, as attorney-in-fact of such Holders, among other things, to execute and deliver this Agreement on behalf of such Holders and to grant the pledge provided herein of the Collateral to secure the Obligations. 
 NOW, THEREFORE, the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract Agent agree as follows:

 ARTICLE 1 DEFINITIONS 
 Section 1.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 (a) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as
a whole and not to any particular Article, Section, Exhibit or other subdivision; and references herein to any Article, Section or other subdivision are to Articles, Sections and subdivisions of this Agreement, unless the context otherwise
indicates; 
 (b) the following terms which are defined in the UCC shall have the meanings set forth therein: “certificated
security,” “control,” “financial asset,” “entitlement order,” “securities account” and “security entitlement”; 
 (c) capitalized terms used herein and not defined herein have the meanings assigned to them in the Purchase Contract Agreement; and 
 (d) the following terms have the meanings given to them in this Section 1.01(d): 
 “Agreement” means this Pledge Agreement, as the same may be amended, modified or supplemented from time to time. 
 “Applicable Ownership Interest in Senior Notes” has the meaning given in the Recitals. 
 “Cash” means any coin
or currency of the United States as at the time shall be legal tender for payment of public and private debts. 
 “Collateral”
means the collective reference to: 
 (i) the Collateral Account and all investment property and other financial assets from
time to time credited to the Collateral Account and all security entitlements with respect thereto, including, without limitation, (A) the Applicable Ownership Interests in Senior Notes and all security entitlements relating thereto that are a
component of the Corporate Units from time to time (and the Senior Notes and all security entitlements relating thereto delivered to the Collateral Agent in respect of such Applicable Ownership Interests in Senior Notes), (B) the Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) which are a component of the Corporate Units from time to time and all security entitlements relating thereto; (C) any Treasury
Securities and all security entitlements relating thereto Transferred to the Securities Intermediary from time to time in connection with the creation of Treasury Units in accordance with Section 5.02 hereof and (D) payments made by
Holders pursuant to Section 5.05 hereof; 
  

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 (ii) all Proceeds of any of the foregoing (whether such Proceeds arise before or after
the commencement of any proceeding under any applicable bankruptcy, insolvency or other similar law, by or against the pledgor or with respect to the pledgor); and 
 (iii) all powers and rights now owned or hereafter acquired under or with respect to the Collateral. 
 “Collateral Account” means the securities account of the Collateral Agent maintained by the Securities Intermediary and designated “The
Bank of New York, as Collateral Agent of Ambac Financial Group, Inc., as pledgee of The Bank of New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for the Holders”. 
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor shall have become such
pursuant to the applicable provisions of the Purchase Contract Agreement, and thereafter “Company” shall mean such successor. 
 “Corporate Unit” means the collective rights and obligations of a Holder of a Corporate Units Certificate in respect of the Applicable Ownership Interests in Senior Notes or the Applicable Ownership Interests in the Treasury
Portfolio, as the case may be, subject in each case (except for the Applicable Ownership Interest in the Treasury Portfolio specified in clause (ii) of the definition of such term) to the Pledge thereof, and the related Purchase Contract.

 “Corporate Units Certificate” means a certificate evidencing the rights and obligations of a Holder in respect of the number of
Corporate Units specified on such certificate. 
 “Obligations” means, with respect to each Holder, all obligations of such Holder
under such Holder’s Purchase Contract. 
 “Permitted Investments” means any one of the following, in each case maturing on the
Business Day following the date of acquisition: 
 (1) any evidence of indebtedness with an original maturity of 365 days or
less issued, or directly and fully guaranteed or insured, by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support of the timely payment
thereof or such indebtedness constitutes a general obligation of the United States of America); 
  

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 (2) deposits, certificates of deposit or acceptances with an original maturity of 365
days or less of any institution which is a member of the Federal Reserve System having combined capital and surplus and undivided profits of not less than $500 million at the time of deposit (and which may include the Collateral Agent); 

(3) investments with an original maturity of 365 days or less of any Person that is fully and unconditionally guaranteed by a bank
referred to in clause (2); 
 (4) repurchase agreements and reverse repurchase agreements relating to marketable direct
obligations issued or unconditionally guaranteed by the United States of America or issued by any agency thereof and backed as to timely payment by the full faith and credit of the United States of America; 
 (5) investments in commercial paper, other than commercial paper issued by the Company or its affiliates, of any corporation incorporated
under the laws of the United States or any State thereof, which commercial paper has a rating at the time of purchase at least equal to “A-1” by Standard & Poor’s Ratings Services (“S&P”) or at least equal to
“P-1” by Moody’s Investors Service, Inc. (“Moody’s”); and 
 (6) investments in money market
funds (including, but not limited to, money market funds managed by the Collateral Agent or an affiliate of the Collateral Agent) registered under the Investment Company Act of 1940, as amended, rated in the highest applicable rating category by
S&P or Moody’s. 
 “Person” means any legal person, including, without limitation, any individual, corporation, estate,
partnership, limited partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Pledge” means the lien and security interest in the Collateral created by this Agreement. 
 “Pledged Applicable Ownership Interest in Senior Notes” means the Applicable Ownership Interests in Senior Notes and all security entitlements
with respect thereto from time to time credited to the Collateral Account and not then released from the Pledge. 
 “Pledged Applicable
Ownership Interests in the Treasury Portfolio” means the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition thereof) and all security entitlements with respect thereto from time to time
credited to the Collateral Account and not then released from the Pledge. 
 “Pledged Securities” means the Pledged Applicable
Ownership Interests in Senior Notes, the Pledged Applicable Ownership Interests in the Treasury Portfolio and the Pledged Treasury Securities, collectively. 
  

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 “Pledged Treasury Securities” means Treasury Securities and security entitlements with respect
thereto from time to time credited to the Collateral Account and not then released from the Pledge. 
 “Proceeds” has the meaning
ascribed thereto in the UCC and includes, without limitation, all interest, dividends, cash, instruments, securities, financial assets and other property received, receivable or otherwise distributed upon the sale (including, without limitation, the
Remarketing), exchange, collection or disposition of any financial assets from time to time held in the Collateral Account. 
 “Purchase
Contract Agent” has the meaning specified in the paragraph preceding the recitals of this Agreement. 
 “Purchase Contract
Agreement” means that certain purchase contract agreement, dated the date hereof, by and between the Company and the Purchase Contract Agent, as amended from time to time. 
 “Remarketing Settlement Date” means February 15, 2011. 
 “Separate Senior Notes” means Senior Notes that have been released from the Pledge following Collateral Substitution and therefore no longer underlie Corporate Units. 
 “TRADES” means the Treasury/Reserve Automated Debt Entry System maintained by the Federal Reserve Bank of New York pursuant to the TRADES
Regulations. 
 “TRADES Regulations” means the regulations of the United States Department of the Treasury, published at 31 C.F.R.
Part 357, as amended from time to time. Unless otherwise defined herein, all terms defined in the TRADES Regulations are used herein as therein defined. 
 “Transfer” means (i) in the case of certificated securities in registered form, delivery as provided in 8-301(a) of the UCC; (ii) in the case of Treasury Securities, registration of the transferee
as the owner of such Treasury Securities on TRADES; and (iii) in the case of security entitlements, including, without limitation, security entitlements with respect to Treasury Securities, a securities intermediary indicating by book entry
that such security entitlement has been credited to the transferee’s securities account. 
 “Treasury Unit” means, following
the substitution of Treasury Securities for Pledged Applicable Ownership Interest in Senior Notes or Pledged Applicable Ownership Interest in the Treasury Portfolio, as the case may be, as collateral to secure a Holder’s Obligations under the
Purchase Contract, the collective rights and obligations of a Holder of a Treasury Units Certificate in respect of such Treasury Securities, subject to the Pledge thereof, and the related Purchase Contract. 
 “Treasury Units Certificate” means a certificate evidencing the rights and obligations of a Holder in respect of the number of Treasury Units
specified on such certificate. 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York from time to time.

  

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 “Value” means, with respect to any item of Collateral on any date, as to (1) Cash, the
face amount thereof, (2) Treasury Securities, the aggregate principal amount thereof at maturity, (3) Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term), the
appropriate percentage of the aggregate principal amount at maturity of the Treasury Portfolio, and (4) Applicable Ownership Interests in Senior Notes, the appropriate aggregate principal amount of the underlying Senior Notes. 
 ARTICLE 2 
 PLEDGE 
 Section 2.01. Pledge. Each Holder, acting through the Purchase Contract Agent as such Holder’s attorney-in-fact, and the Purchase Contract
Agent, acting solely as such attorney-in-fact, hereby pledges and grants to the Collateral Agent, as agent of and for the benefit of the Company, a continuing first priority security interest in and to, and a lien upon and right of set-off against,
all of such Person’s right, title and interest in and to the Collateral to secure the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Obligations. The Collateral Agent shall
have all of the rights, remedies and recourses with respect to the Collateral afforded a secured party by the UCC, in addition to, and not in limitation of, the other rights, remedies and recourses afforded to the Collateral Agent by this Agreement.

 Section 2.02. Control. The Collateral Agent shall have control of the Collateral Account pursuant to the provisions of Article 4 of
this Agreement. 
 Section 2.03. Termination. As to each Holder, this Agreement and the Pledge created hereby shall terminate upon the
satisfaction of such Holder’s Obligations or earlier termination of such Holder’s Purchase Contracts in accordance with their terms. Upon such termination, the Collateral Agent shall instruct the Securities Intermediary to Transfer such
Holder’s portion of the Collateral to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
 ARTICLE 3 
 DISTRIBUTIONS ON PLEDGED COLLATERAL 
 Section 3.01. Income and Distributions. The Collateral Agent shall transfer all income and distributions received by the Collateral Agent on
account of the Applicable Ownership Interests in Senior Notes, the Pledged Applicable Ownership Interests in the Treasury Portfolio, the Pledged Treasury Securities or Permitted Investments from time to time held in the Collateral Account (ABA
No. 021000018, A/C No. 106830, Re: Ambac Financial Group, Inc.) to the Purchase Contract Agent for distribution to the applicable Holders as provided in the Purchase Contracts or Purchase Contract Agreement. 
 Section 3.02. Principal Payments Following Termination Event. Upon receipt by the Collateral Agent of written notice from the Company that a
Termination Event has occurred, the Collateral Agent shall transfer all principal payments it receives, if any, in respect of (1) the Pledged Applicable Ownership Interests in Senior Notes, (2) the Applicable Ownership Interests in the
Treasury Portfolio, and (3) the Pledged Treasury Securities, to the 

  

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Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with their respective interests, free and
clear of the Pledge created hereby. 
 Section 3.03. Principal Payments Prior to or on Purchase Contract Settlement Date. 

(a) Subject to the provisions of Section 5.06, and except as provided in Section 3.03(b) below, if no Termination Event shall have occurred,
all principal payments received by the Securities Intermediary in respect of (1) the Pledged Applicable Ownership Interests in Senior Notes, (2) the Pledged Applicable Ownership Interests in the Treasury Portfolio and (3) the Pledged
Treasury Securities, shall, except as provided in Section 5.02(c), be held and invested in Permitted Investments until the Purchase Contract Settlement Date, and transferred to the Company on the Purchase Contract Settlement Date as provided in
Section 5.07 hereof. Any balance remaining in the Collateral Account shall be released from the Pledge and transferred to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with
their respective interests, free and clear of the Pledge created thereby. The Company shall instruct the Collateral Agent in writing as to the type of Permitted Investments in which any payments made under this Section 3.03(a) shall be
invested, provided, however, that if the Company fails to deliver such instructions by 10:30 a.m. (New York City time) on the day such payments are received by the Securities Intermediary, the Collateral Agent shall instruct the Securities
Intermediary to invest such payments in the Permitted Investments described in clause (6) of the definition of Permitted Investments. In no event shall the Collateral Agent or the Securities Intermediary be liable for the selection of Permitted
Investments or for investment losses incurred thereon. The Collateral Agent and the Securities Intermediary shall have no liability in respect of losses incurred as a result of the failure of the Company to provide timely written investment
direction. 
 (b) All principal payments received by the Securities Intermediary in respect of (1) the Pledged Applicable Ownership
Interests in Senior Notes, (2) the Pledged Applicable Ownership Interests in the Treasury Portfolio, and (3) the Pledged Treasury Securities or security entitlements thereto, that, in each case, have been released from the Pledge pursuant
hereto shall be transferred to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with their respective interests. 
 Section 3.04. Payments to Purchase Contract Agent. The Securities Intermediary shall use commercially reasonable efforts to deliver payments to
the Purchase Contract Agent hereunder to the account designated by the Purchase Contract Agent for such purpose not later than 12:00 p.m. (New York City time) on the Business Day such payment is received by the Securities Intermediary; provided,
however, that if such payment is received on a day that is not a Business Day or after 11:00 a.m. (New York City time) on a Business Day, then the Securities Intermediary shall use commercially reasonable efforts to deliver such payment to the
Purchase Contract Agent no later than 10:30 a.m. (New York City time) on the next succeeding Business Day. 
 Section 3.05. Assets Not
Properly Released. If the Purchase Contract Agent or any Holder shall receive any principal payments on account of financial assets credited to the Collateral Account and not released therefrom in accordance with this Agreement, the Purchase

  

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Contract Agent or such Holder shall hold the same as trustee of an express trust for the benefit of the Company and, upon receipt of an Officers’
Certificate of the Company so directing, promptly deliver the same to the Securities Intermediary for credit to the Collateral Account or to the Company for application to the Obligations of the Holders. The Purchase Contract Agent shall have no
liability under this Section 3.05 unless and until it has been notified in writing that such payment was delivered to it erroneously and shall have no liability for any action taken, suffered or omitted to be taken prior to its receipt of such
notice. 
 ARTICLE 4 
 CONTROL 
 Section 4.01. Establishment of Collateral Account. The Securities Intermediary hereby confirms that:

 (a) the Securities Intermediary has established the Collateral Account; 
 (b) the Collateral Account is a securities account; 
 (c) the Securities Intermediary shall identify in its records the Collateral Agent as the entitlement holder entitled to exercise the rights that comprise any financial asset credited to the Collateral Account; 
 (d) all property delivered to the Securities Intermediary pursuant to this Agreement or the Purchase Contract Agreement, including any Applicable
Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition thereof), Treasury Securities and the Permitted Investments, will be credited promptly to the Collateral Account; and 
 (e) all securities or other property underlying any financial assets credited to the Collateral Account shall be (i) registered in the name of the
Purchase Contract Agent and indorsed to the Securities Intermediary or in blank, (ii) registered in the name of the Securities Intermediary or (iii) credited to another securities account maintained in the name of the Securities
Intermediary. In no case will any financial asset credited to the Collateral Account be registered in the name of the Purchase Contract Agent or any Holder or specially indorsed to the Purchase Contract Agent or any Holder, unless such financial
asset has been further indorsed to the Securities Intermediary or in blank. 
 Section 4.02. Treatment as Financial Assets. Each item
of property (whether investment property, financial asset, security, instrument or cash) credited to the Collateral Account shall be treated as a financial asset. 
 Section 4.03. Sole Control by Collateral Agent. At all times prior to the termination of the Pledge, the Collateral Agent shall have sole control of the Collateral Account, and the Securities Intermediary shall
take instructions and directions with respect to the Collateral Account solely from the Collateral Agent. If at any time the Securities Intermediary shall receive an entitlement order issued by the Collateral Agent and relating to the Collateral
Account, the Securities Intermediary shall comply with such entitlement order without further consent by the Purchase Contract Agent, any Holder or any other Person. Except as otherwise 

  

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permitted under this Agreement, until termination of the Pledge, the Securities Intermediary will not comply with any entitlement orders issued by the
Purchase Contract Agent or any Holder. 
 Section 4.04. Securities Intermediary’s Location. The Collateral Account, and the
rights and obligations of the Securities Intermediary, the Collateral Agent, the Purchase Contract Agent and the Holders with respect thereto, shall be governed by the laws of the State of New York. Regardless of any provision in any other
agreement, for purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction. 
 Section 4.05. No
Other Claims. Except for the claims and interest of the Collateral Agent and of the Purchase Contract Agent and the Holders in the Collateral Account, the Securities Intermediary (without having conducted any investigation) does not know of any
claim to, or interest in, the Collateral Account or in any financial asset credited thereto. If the Securities Intermediary receives written notice at its principal corporate trust office or has actual knowledge that any Person asserts any lien,
encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Collateral Account or in any financial asset carried therein, the Securities Intermediary will as soon as
practicable notify the Collateral Agent and the Purchase Contract Agent. 
 Section 4.06. Investment and Release. All proceeds of
financial assets from time to time deposited in the Collateral Account shall be invested and reinvested as provided in this Agreement. At all times prior to termination of the Pledge, no property shall be released from the Collateral Account except
in accordance with this Agreement or upon written instructions of the Collateral Agent. 
 Section 4.07. Statements and Confirmations.
The Securities Intermediary will as soon as practicable send copies of all statements, confirmations and other correspondence concerning the Collateral Account and any financial assets credited thereto simultaneously to each of the Purchase Contract
Agent and the Collateral Agent at their addresses for notices under this Agreement. 
 Section 4.08. Tax Allocations. The Company
shall report all items of income, gain, expense and loss recognized in the Collateral Account, to the extent such reporting is required by law, to the Internal Revenue Service and all state and local taxing authorities in the manner required by law.
None of the Securities Intermediary, the Purchase Contract Agent, the Collateral Agent or the Custodial Agent shall have any tax reporting duties hereunder. 
 Section 4.09. No Other Agreements. The Securities Intermediary has not entered into, and prior to the termination of the Pledge will not enter into, any agreement with any other Person relating to the
Collateral Account or any financial assets credited thereto, including, without limitation, any agreement to comply with entitlement orders of any Person other than the Collateral Agent. 
 Section 4.10. Powers Coupled with an Interest. The rights and powers granted in this Agreement to the Collateral Agent have been granted in order
to perfect its security interests in the Collateral Account, are powers coupled with an interest and will be affected neither by the 

  

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bankruptcy of the Purchase Contract Agent or any Holder nor by the lapse of time. The obligations of the Securities Intermediary under this Agreement shall
continue in effect until the termination of the Pledge. 
 Section 4.11. Waiver Of Lien; Waiver Of Set-off. The Securities
Intermediary waives any security interest, lien or right to make deductions or set-offs that it may now have or hereafter acquire in or with respect to the Collateral Account, any financial asset credited thereto or any security entitlement in
respect thereof. Neither the financial assets credited to the Collateral Account nor the security entitlements in respect thereof will be subject to deduction, set-off, banker’s lien, or any other right in favor of any Person other than the
Company. 
 ARTICLE 5 
 INITIAL DEPOSIT; CREATION OF TREASURY UNITS AND 
 RECREATION OF CORPORATE UNITS 
 Section 5.01. Initial Deposit of Senior Notes. 
 (a) Prior to or concurrently with the execution and delivery of this Agreement, the Purchase Contract Agent, on behalf of the initial Holders of the Corporate Units, shall Transfer to the Securities Intermediary,
for credit to the Collateral Account, the Applicable Ownership Interests in Senior Notes and the Senior Notes underlying such Applicable Ownership Interests in Senior Notes and all security entitlements relating thereto, and, in the case of security
entitlements, the Securities Intermediary shall indicate by book-entry that a securities entitlement to such Applicable Ownership Interests in Senior Notes has been credited to the Collateral Account. 
 (b) The Collateral Agent may, at any time or from time to time, in its sole discretion, cause any or all securities or other property underlying any
financial assets credited to the Collateral Account to be re-registered in the name of the Securities Intermediary, the Collateral Agent or their respective nominees; provided, however, that unless any Event of Default (as defined in the Indenture)
shall have occurred and be continuing, the Collateral Agent agrees not to cause any Senior Notes to be so re-registered. 
 Section 5.02.
Creation of Treasury Units. 
 (a) Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable
Ownership Interests in Senior Notes as a component of the Corporate Units, and subject to the conditions set forth herein and in the Purchase Contract Agreement, a Holder of Corporate Units shall have the right, at any time on or prior to the close
of business on the second Business Day immediately preceding the Purchase Contract Settlement Date (except that a Holder does not have the right to effect such a substitution during the period beginning on the Business Day immediately preceding the
Initial Remarketing Date and ending on and including the Remarketing Settlement Date), to create Treasury Units by substitution of Treasury Securities or security entitlements with respect thereto for the Senior Notes underlying such Holder’s
Pledged Applicable Ownership Interest in Senior Notes comprising a part of such Holder’s Corporate Units in integral multiples of 20 Corporate Units by: 
 (i) Transferring to the Securities Intermediary Treasury Securities or security entitlements with respect thereto having a Value equal to
the Value of the 

  

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Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes for which such Collateral Substitution is made (and the Securities
Intermediary shall Transfer to the Collateral Account the security entitlements relating to such Treasury Securities); and 
 (ii) Transferring the related Corporate Units (in integral multiples of 20 Corporate Units) to the Purchase Contract Agent, accompanied by a notice, substantially in the form of Exhibit C to the Purchase Contract Agreement, whereupon the
Purchase Contract Agent shall deliver to the Collateral Agent a notice, substantially in the form of Exhibit A hereto, (A) stating that such Holder has notified the Purchase Contract Agent that such Holder has Transferred Treasury Securities or
security entitlements with respect thereto to the Securities Intermediary for credit to the Collateral Account, (B) stating the Value of the Treasury Securities or security entitlements with respect thereto Transferred by such Holder and
(C) requesting that the Collateral Agent release from the Pledge the Pledged Applicable Ownership Interest in Senior Notes that are a component of such Corporate Units. 
 Upon the Transfers pursuant to clauses (i) and (ii) and receipt of the notice referred to in clause (i), the Collateral Agent shall be deemed
to accept the Treasury Securities Transferred pursuant to clause (i) as Collateral subject to the Pledge, and shall instruct the Securities Intermediary by a notice, substantially in the form of Exhibit B, to release such Senior Notes
underlying the Pledged Applicable Ownership Interest in Senior Notes from the Pledge by Transfer to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
 If the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the
Corporate Units and subject to the conditions of the Purchase Contract Agreement, a Holder of Corporate Units may, at any time on or prior to the close of business on the second Business Day immediately preceding the Purchase Contract Settlement
Date (except that the Holder does not have the right to effect such a substitution during the period beginning on the Business Day immediately preceding the Initial Remarketing Date and ending on and including the Remarketing Settlement Date),
substitute Treasury Securities for the Applicable Ownership Interests in the Treasury Portfolio with respect to such Corporate Units, but only in multiples of 360,000 Corporate Units. In such an event, the Holder shall Transfer the required amount
of Treasury Securities to the Securities Intermediary, and the Securities Intermediary shall Transfer to the Collateral Account the security entitlements relating to such Treasury Securities, and the Purchase Contract Agent shall request the
Collateral Agent to instruct the Securities Intermediary to release the Pledge of and Transfer to the Holder the appropriate Applicable Ownership Interests in the Treasury Portfolio in the manner set forth above. 
 (b) Upon Transfer of Treasury Securities to the Securities Intermediary or credit to the Collateral Account of security entitlements with respect thereto
delivered by a Holder of Corporate Units and receipt of the related instruction from the Collateral Agent, the Securities Intermediary shall promptly release the Senior Notes underlying the appropriate Pledged Applicable Ownership Interest in Senior
Notes or Pledged Applicable Ownership 

  

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Interest in the Treasury Portfolio, as the case may be, and shall promptly Transfer the same to the Purchase Contract Agent for distribution to such Holder,
free and clear of the Pledge created hereby. 
 (c) Notwithstanding the foregoing, prior to the maturity of the Treasury Securities (as
described in clause (i) of the definition thereof) that are a component of Treasury Units, the Company shall select for purchase and notify the Collateral Agent of new Treasury Securities, which conform to the description in clause (ii) of
the definition thereof. The Collateral Agent shall apply all or a portion of the proceeds of the maturing Treasury Securities to the purchase of new Treasury Securities by such maturity date. Such new Treasury Securities shall be Transferred to the
Securities Intermediary and the related securities entitlements shall be credited to the Collateral Account and shall collectively be a component of the Treasury Units. The Collateral Agent shall promptly remit any excess of the proceeds of the
maturing Treasury Securities over the purchase price of the new Treasury Securities to Holders of the Treasury Units. The Purchase Contract together with such new treasury security shall then constitute a Treasury Unit. 
 Section 5.03. Recreation of Corporate Units. 
 (a) Unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, at any time on or prior to the close of business on the second
Business Day immediately preceding the Purchase Contract Settlement Date (except that the Holder does not have the right to effect such a substitution during the period beginning on the Business Day immediately preceding the Initial Remarketing Date
and ending on and including the Remarketing Settlement Date), a Holder of Treasury Units shall have the right to recreate Corporate Units by substitution of Senior Notes or security entitlements with respect thereto for Treasury Securities in
integral multiples of 20 Treasury Units by: 
 (i) Transferring to the Securities Intermediary for credit to the Collateral
Account Senior Notes or security entitlements with respect thereto (which must be purchased in the open market at the Holder’s expense unless otherwise owned by the Holder) having a Value equal to the Value of the Pledged Treasury Securities to
be released; and 
 (ii) delivering the related Treasury Units (in integral multiples of 20 Treasury Units) to the Purchase
Contract Agent, accompanied by a notice, substantially in the form of Exhibit C to the Purchase Contract Agreement, whereupon the Purchase Contract Agent shall deliver to the Collateral Agent a notice, substantially in the form of Exhibit C hereto,
(A) stating that such Holder has Transferred the Senior Notes or security entitlements with respect thereto to the Securities Intermediary for credit to the Collateral Account, (B) stating the Value of the Senior Notes or security
entitlements with respect thereto transferred by such Holder, and (C) requesting that the Collateral Agent release from the Pledge the Pledged Treasury Securities related to such Treasury Units. 
  

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 Upon receipt of such notice and confirmation that Senior Notes or security entitlements with respect
thereto have been credited to the Collateral Account as described in such notice, the Collateral Agent shall instruct the Securities Intermediary by a notice substantially in the form of Exhibit D hereto to release such Pledged Treasury Securities
from the Pledge by Transfer to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
 If the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of the Corporate Units, a Holder of Treasury Units may, at any time on or prior to the second
Business Day immediately preceding the Purchase Contract Settlement Date, substitute the Applicable Ownership Interests in the Treasury Portfolio for the Pledged Treasury Securities with respect to such Treasury Units, but only in multiples of
360,000 Treasury Units. In such an event, the Holder shall Transfer the required Applicable Ownership Interests in the Treasury Portfolio to the Securities Intermediary, and the Securities Intermediary shall credit the related security entitlements
to the Collateral Account, and the Purchase Contract Agent shall request the Collateral Agent to instruct the Securities Intermediary to release and Transfer to the Holder the Pledged Treasury Securities in the manner set forth above. 
 (b) Upon credit to the Collateral Account of Senior Notes or security entitlements with respect thereto or Applicable Ownership Interests in the Treasury
Portfolio delivered by a Holder of Treasury Units and receipt of the related instruction from the Collateral Agent, the Securities Intermediary shall release such Pledged Treasury Securities and shall promptly Transfer the same to the Purchase
Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
 Section 5.04. Termination Event.

 (a) Upon receipt by the Collateral Agent of written notice from the Company that a Termination Event has occurred, the Collateral Agent
shall release all Collateral from the Pledge and shall promptly instruct the Securities Intermediary to Transfer: 
 (i) any
Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes or security entitlements with respect thereto or Pledged Applicable Ownership Interests in the Treasury Portfolio; 
 (ii) any Pledged Treasury Securities, 
 (iii) any payments by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 hereof, and 
 (iv) any Proceeds and all other payments the Collateral Agent receives in respect of the foregoing, 
 to the Purchase
Contract Agent for the benefit of the Holders for distribution to such Holders, in accordance with their respective interests, free and clear of the Pledge created hereby; provided, however, if any Holder shall be entitled to receive less than
$1,000 with respect to its Pledged Applicable Ownership Interests in the Treasury Portfolio or its Pledged Treasury Securities, any 

  

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securities having a principal amount at maturity of less than $1,000, as applicable, then the Purchase Contract Agent shall have the right (but not the
obligation) to dispose of such interest for Cash and deliver to such Holder Cash in lieu of delivering the Pledged Applicable Ownership Interests in the Treasury Portfolio or Pledged Treasury Securities. 
 (b) If such Termination Event shall result from the Company’s becoming a debtor under the Bankruptcy Code, and if the Collateral Agent shall for any
reason fail promptly to effectuate the release and Transfer of all Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, Pledged Applicable Ownership Interests in the Treasury Portfolio, Pledged Treasury Securities and
payments by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 and Proceeds and all other payments received by the Collateral Agent in respect of any of the foregoing, as the case may be, as provided by this
Section 5.04, the Purchase Contract Agent shall use its best efforts to obtain an opinion of a nationally recognized law firm to the effect that, notwithstanding the Company’s being the debtor in such a bankruptcy case, the Collateral
Agent will not be prohibited from releasing or Transferring the Collateral as provided in this Section 5.04, and shall deliver or cause to be delivered such opinion to the Collateral Agent within ten days after the occurrence of such
Termination Event, and if (A) the Purchase Contract Agent shall be unable to obtain such opinion within ten days after the occurrence of such Termination Event or (B) the Collateral Agent shall continue, after delivery of such opinion, to
refuse to effectuate the release and Transfer of all Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, Pledged Applicable Ownership Interests in the Treasury Portfolio, Pledged Treasury Securities and the payments
by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 hereof and Proceeds and all other payments received by the Collateral Agent in respect of any of the foregoing, as the case may be, as provided in this
Section 5.04, then the Purchase Contract Agent shall within fifteen days after the occurrence of such Termination Event commence an action or proceeding in the court having jurisdiction of the Company’s case under the Bankruptcy Code
seeking an order requiring the Collateral Agent to effectuate the release and transfer of all Senior Notes underlying the Pledged Applicable Ownership Interest in Senior Notes, Pledged Applicable Ownership Interests in the Treasury Portfolio,
Pledged Treasury Securities and the payments by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 hereof and Proceeds and all other payments received by the Collateral Agent in respect of any of the foregoing, or
as the case may be, as provided by this Section 5.04. 
 Section 5.05. Cash Settlement. 
 (a) Upon receipt by the Collateral Agent of (1) a notice from the Purchase Contract Agent promptly after the receipt by the Purchase Contract Agent
of the certificate evidencing the Corporate Units or Treasury Units, as the case may be, at the offices of the Purchase Contract Agent with a notice from a Holder of Corporate Units or Treasury Units that such Holder has elected, in accordance with
the procedures specified in Section 5.02(c)(i) of the Purchase Contract Agreement, respectively, to effect a Cash Settlement and (2) payment by such Holder by deposit in the Collateral Account prior to 11:00 a.m. (New York City time) on
the Business Day immediately preceding the Purchase Contract Settlement Date of the Purchase Price in lawful money of the United States by certified or cashier’s check or wire transfer of 

  

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immediately available funds payable to or upon the order of the Securities Intermediary, then the Collateral Agent shall: 
 (i) instruct the Securities Intermediary promptly to invest any such Cash in Permitted Investments consistent with the instructions of the
Company as provided for below in this Section 5.05(a); 
 (ii) instruct the Securities Intermediary to release from the
Pledge such Holder’s related Senior Notes underlying the Pledged Applicable Ownership Interest in Senior Notes, Pledged Applicable Ownership Interests in the Treasury Portfolio and Pledged Treasury Securities, as applicable, as to which such
Holder has effected a Cash Settlement pursuant to this Section 5.05(a); and 
 (iii) instruct the Securities Intermediary
to Transfer all such Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, Pledged Applicable Ownership Interests in the Treasury Portfolio and the Pledged Treasury Securities, as the case may be, to the Purchase
Contract Agent for distribution to such Holder, in each case free and clear of the Pledge created hereby. 
 The Company shall instruct the
Collateral Agent in writing as to the type of Permitted Investments in which any such Cash shall be invested; provided, however, that if the Company fails to deliver such written instructions by 10:30 a.m. (New York City time) on the day such Cash
is received by the Collateral Agent or to be reinvested by the Securities Intermediary, the Collateral Agent shall instruct the Securities Intermediary to invest such Cash in the Permitted Investments described in clause (6) of the definition
of Permitted Investments. In no event shall the Collateral Agent or Securities Intermediary be liable for the selection of Permitted Investments or for investment losses incurred thereon. The Collateral Agent and Securities Intermediary shall have
no liability in respect of losses incurred as a result of the failure of the Company to provide timely written investment direction. 
 Upon
receipt of the proceeds upon the maturity of the Permitted Investments on the Purchase Contract Settlement Date, the Collateral Agent shall (A) instruct the Securities Intermediary to pay the portion of such proceeds and deliver any certified
or cashier’s checks received, in an aggregate amount equal to the Purchase Price, to the Company on the Purchase Contract Settlement Date, and (B) cause the Securities Intermediary to release any amounts in excess of the Purchase Price
earned from such Permitted Investments to the Purchase Contract Agent for distribution to such Holder. 
 (b) If a Holder of Corporate Units
(unless the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interests in Senior Notes as a component of such Corporate Units) (i) fails to notify the Purchase Contract Agent of its intention to
make a Cash Settlement as provided in Section 5.02(c)(i) of the Purchase Contract Agreement or (ii) does notify the Purchase Contract Agent of its intention to pay the Purchase Price in cash, but fails to make such payment as required by
Section 5.02(c)(iv) of the Purchase Contract Agreement, such Holder shall be deemed to have exercised such Holder’s Put Right 

  

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with respect to the Senior Notes in accordance with Section 5.02(b) of the Purchase Contract Agreement. 
 (c) If a Holder of a Treasury Unit or a Holder of a Corporate Unit (if the Applicable Ownership Interests in the Treasury Portfolio have replaced the
Applicable Ownership Interests in Senior Notes as a component of such Corporate Unit) (i) fails to notify the Purchase Contract Agent of its intention to make a Cash Settlement as provided in Section 5.02(c)(i) of the Purchase Contract
Agreement or (ii) does notify the Purchase Contract Agent of its intention to pay the Purchase Price in cash, but fails to make such payment as required by Section 5.02(c)(iv) of the Purchase Contract Agreement, such Holder shall be deemed
to have consented to the disposition of such Holder’s Applicable Ownership Interest in the Treasury Portfolio or the Treasury Securities in accordance with Section 5.02(c)(vi) of the Purchase Contract Agreement 
 (d) Promptly after 11:00 a.m. (New York City time) on the Business Day preceding the Purchase Contract Settlement Date, the Collateral Agent shall
deliver to the Purchase Contract Agent and Trustee a notice, substantially in the form of Exhibit E hereto, stating (i) the amount of Cash that it has received with respect to the Cash Settlement of Corporate Units, (ii) the amount of Cash
that it has received with respect to the Cash Settlement of Treasury Units and (iii) the amount of Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes with respect to which an automatic deemed exercise of the Put
Rights has occurred pursuant to Section 5.02(b) of the Purchase Contract Agreement. 
 Section 5.06. Early Settlement and Cash Merger
Early Settlement. Upon receipt by the Collateral Agent of a notice from the Purchase Contract Agent that a Holder of Units has elected to effect either (i) Early Settlement of its Obligations under the Purchase Contracts forming a part of
such Units in accordance with the terms of the Purchase Contracts and Section 5.07 of the Purchase Contract Agreement or (ii) Cash Merger Early Settlement of its Obligations under the Purchase Contracts forming a part of such Units in
accordance with the terms of the Purchase Contracts and Section 5.04(b)(ii) of the Purchase Contract Agreement (which notice shall set forth the number of such Purchase Contracts as to which such Holder has elected to effect Early Settlement or
Cash Merger Early Settlement), and that the Purchase Contract Agent has received from such Holder, and paid to the Company as confirmed in writing by the Company, the related Purchase Price pursuant to the terms of the Purchase Contracts and the
Purchase Contract Agreement and that all conditions to such Early Settlement or Cash Merger Early Settlement, as the case may be, have been satisfied, then the Collateral Agent shall release from the Pledge, within three Business Days following the
date of such settlement, (1) in the case of a Holder of Corporate Units, the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, or the Pledged Applicable Ownership Interests in the Treasury Portfolio, as the
case may be, relating to the Purchase Contracts to which Early Settlement or Cash Merger Early Settlement, as the case may be, is effected, or (2) in the case of a Holder of Treasury Units, Pledged Treasury Securities, in each case with a Value
equal to the product of (x) the Stated Amount times (y) the number of Purchase Contracts as to which such Holder has elected to effect Early Settlement or Cash Merger Early Settlement, and shall instruct the Securities Intermediary to
Transfer all such Pledged Applicable Ownership Interests in the Treasury Portfolio or Senior Notes underlying such Pledged Applicable Ownership Interests in Senior Notes or Pledged Treasury Securities, as the case may be, to the Purchase Contract
Agent 

  

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for distribution to such Holder or such Holder’s designee, in each case free and clear of the Pledge created hereby; provided, that a Holder of Treasury
Units may settle early only in integral multiples of 20 Treasury Units, and a Holder of Corporate Units, if the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interest in Senior Notes as a component
of such Corporate Units, may settle early only in integral multiples of 360,000 Corporate Units and if the Applicable Ownership Interests in the Treasury Portfolio have not been replaced, 20 Corporate Units; provided, further, that with respect to
Cash Merger Early Settlement where the Applicable Ownership Interests in the Treasury Portfolio have replaced the Applicable Ownership Interest in Senior Notes as a component of Corporate Units, the Company shall attempt to allow Holders of fewer
than 360,000 Corporate Units to exercise the right to effect Cash Merger Early Settlement by aggregating the total number of Corporate Units in respect of which the Holders have elected to exercise such right. 
 Section 5.07. Application of Proceeds in Settlement of Purchase Contracts. 
 (a) Each Holder of Corporate Units (unless the Treasury Portfolio has replaced the Senior Notes represented by such Corporate Units) that has not elected
to make an effective Cash Settlement by notifying the Purchase Contract Agent in the manner provided for in Section 5.02(c)(i) of the Purchase Contract Agreement or does notify the Purchase Contract Agent as provided in Section 5.02(c)(i)
of the Purchase Contract Agreement of its intention to pay the Purchase Price in cash, but fails to make such payment as required by paragraph 5.02(c)(iv) of the Purchase Contract Agreement, shall be deemed to have exercised such Holder’s Put
Right with respect to the Senior Notes underlying such Applicable Ownership Interest in Senior Notes that are a component of Corporate Units as described in Section 5.02(b)(i) of the Purchase Contract Agreement. Upon exercise of the Put Right
with respect to such Senior Notes, the Company shall on the Purchase Contract Settlement Date cause the aggregate Put Price with respect to such Senior Notes to be deposited in the Collateral Account and the Collateral Agent shall cause the
Securities Intermediary to remit the Purchase Price for the shares of Common Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) to be issued under the related
Purchase Contract from a portion of the Proceeds of the Put Right to the Company in full satisfaction of the Holder’s obligations under the related Purchase Contract; provided that if the Company shall fail to pay the Put Price when due, the
Company shall be deemed to have netted the Holders’ obligations to pay the aggregate Purchase Price under such Purchase Contracts against the Company’s obligation to pay the Put Price in full satisfaction of the Holders’ obligations
under the Purchase Contracts. Following such payment or netting of the Put Price, the Holders’ obligations to pay the Purchase Price under the Purchase Contracts will be deemed to be satisfied in full, and the Collateral Agent shall cause the
Securities Intermediary to release the Senior Notes underlying such Applicable Ownership Interests in Senior Notes from the Collateral Account and shall promptly Transfer such Senior Notes to the Company. Thereafter, the Collateral Agent shall
promptly remit the remaining portion, if any, of the Put Price, including but not limited to accrued interest from, and including, May 15, 2011 to, but excluding, May 17, 2011, in excess of the aggregate Purchase Price under such Purchase
Contracts to the Purchase Contract Agent for payment to the Holder of the Corporate Units to which such Senior Notes relate. For the avoidance of doubt, the Collateral Agent shall retain the May 15, 2011 payment with respect to the Senior Notes
for which the Put Right has been 

  

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exercised and distribute such payment on May 17, 2011 in accordance with the immediately preceding sentence. 
 (b) If a Holder of a Treasury Unit or a Holder of a Corporate Unit (if the Applicable Ownership Interest in the Treasury Portfolio has replaced the
Applicable Ownership Interest in Senior Notes as a component of such Corporate Unit) has not elected to make an effective Cash Settlement by notifying the Purchase Contract Agent in the manner provided for in Section 5.02(c)(i) of the
Purchase Contract Agreement, or has given such notice but failed to make such payment in the manner required by Section 5.02(c)(iv) of the Purchase Contract Agreement, such Holder shall be deemed to have elected to pay for the shares of Common
Stock (or, in the circumstances described in Section 5.08 of the Purchase Contract Agreement, shares of Series A Preferred Stock) to be issued under such Purchase Contracts from the Proceeds of the related Pledged Treasury Securities or Pledged
Applicable Ownership Interests in the Treasury Portfolio, as the case may be. Upon the maturity of the Pledged Treasury Securities or the Pledged Applicable Ownership Interests in the Treasury Portfolio held by the Securities Intermediary on or
prior to the Business Day immediately preceding the Purchase Contract Settlement Date, the principal amount of the Treasury Securities or the Pledged Applicable Ownership Interests in the Treasury Portfolio received by the Collateral Agent shall be
invested promptly in Permitted Investments. In no event shall the Collateral Agent or the Holders be liable for the selection of Permitted Investments or for investment losses incurred thereon. The Collateral Agent shall have no liability in respect
of losses incurred as a result of the failure of the Company to provide timely written investment direction. Without receiving any instruction from any Holder, the Collateral Agent shall instruct the Securities Intermediary to remit the Proceeds of
the related Pledged Treasury Securities or Pledged Applicable Ownership Interests in the Treasury Portfolio, as the case may be, and the Proceeds from such Permitted Investments to the settlement of such Purchase Contracts on the Purchase Contract
Settlement Date. In the event the sum of the Proceeds from the related Pledged Treasury Securities or Pledged Applicable Ownership Interests in the Treasury Portfolio, as the case may be, and the Proceeds from such Permitted Investments exceed the
aggregate Purchase Price of the Purchase Contracts being settled thereby, the Collateral Agent shall cause the Securities Intermediary to distribute such excess to the Purchase Contract Agent for distribution to Holder of the related Treasury Units
or Corporate Units, when received. 
 Section 5.08. Remarketing. 
 (a) In the event of a Successful Remarketing, the Collateral Agent shall instruct the Securities Intermediary to transfer the Senior Notes underlying
Pledged Applicable Ownership Interests in Senior Notes upon confirmation of deposit by the Remarketing Agent of the proceeds of such Successful Remarketing in the Collateral Account, and the portion of the proceeds from such Successful Remarketing
equal to the Treasury Portfolio Purchase Price will be applied to purchase the Treasury Portfolio. With respect to Pledged Applicable Ownership Interests in Senior Notes, any proceeds of the Remarketing in excess of the sum of the Treasury Portfolio
Purchase Price plus the Separate Senior Notes Purchase Price will be remitted to the Purchase Contract Agent for payment to the Holders of the related Corporate Units. The Treasury Portfolio will be substituted for the Pledged Applicable Ownership
Interests in Senior Notes and the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the definition of such term) will be pledged to the Collateral Agent to secure the Obligations. 

  

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With respect to Separate Senior Notes upon a Successful Remarketing, any proceeds of such Remarketing attributable to the Separate Senior Notes will be
remitted to the Custodial Agent for payment to the holders of Separate Senior Notes. 
 (b) Following the occurrence of a Successful
Remarketing, the Holders of Corporate Units and the Collateral Agent shall have such security interests, rights and obligations with respect to the Applicable Ownership Interests in the Treasury Portfolio (as specified in clause (i) of the
definition of such term) as the Holder of Corporate Units and the Collateral Agent had in respect of the Applicable Ownership Interests in Senior Notes, subject to the Pledge thereof as provided herein, and any reference herein or in the
Certificates to the Applicable Ownership Interests in Senior Notes shall be deemed to be a reference to such Applicable Ownership Interests in the Treasury Portfolio. The Company may cause to be made in any Corporate Units Certificates thereafter to
be issued such change in phraseology and form (but not in substance) as may be appropriate to reflect the substitution of such Applicable Ownership Interests in the Treasury Portfolio for Applicable Ownership Interests in Senior Notes. 

Section 5.09. Remarketing of Separate Senior Notes. On or prior to the close of business on the second Business Day immediately preceding the
Initial Remarketing Date, but no earlier than the Payment Date immediately preceding such date, Holders of Separate Senior Notes may elect to have their Separate Senior Notes remarketed under the Remarketing Agreement, by delivering their Separate
Senior Notes along with a notice of such election, substantially in the form of Exhibit F hereto, to the Custodial Agent. The Custodial Agent shall hold Separate Senior Notes in an account separate from the Collateral Account in which the Pledged
Applicable Ownership Interests in Senior Notes shall be held. Holders of Separate Senior Notes electing to have their Separate Senior Notes remarketed will also have the right to withdraw that election by written notice to the Custodial Agent,
substantially in the form of Exhibit G hereto, on or prior to the close of business on the second Business Day immediately preceding the Initial Remarketing Date, upon which notice the Custodial Agent shall return such Separate Senior Notes to such
Holder. After such time, such election shall become an irrevocable election to have such Separate Senior Notes remarketed in such Remarketing. On or prior to the close of business on the Business Day immediately preceding the Initial Remarketing
Date, the Custodial Agent shall notify the Remarketing Agent of the aggregate principal amount of the Separate Senior Notes to be remarketed pursuant to Section 5.02(a)(ii) of the Purchase Contract Agreement and this Section 5.09.
Concurrently, the Custodial Agent shall deliver to the Remarketing Agent for remarketing all Separate Senior Notes delivered to the Custodial Agent pursuant to this Section 5.09 and not validly withdrawn prior to such date. In the event that a
Successful Remarketing has not occurred by the Final Remarketing Date, the Remarketing Agent will promptly return such Separate Senior Notes to the Custodial Agent and the Custodial Agent shall deliver such Separate Senior Notes to the appropriate
Holders. 
  

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 ARTICLE 6 
 VOTING RIGHTS OF SENIOR NOTES UNDERLYING THE PLEDGED 
 APPLICABLE OWNERSHIP INTERESTS IN SENIOR
NOTES 
 Section 6.01. Voting Rights. Subject to the terms of Section 4.02 of the Purchase Contract Agreement, the Purchase
Contract Agent may exercise, or refrain from exercising, any and all voting and other consensual rights pertaining to the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes or any part thereof for any purpose not
inconsistent with the terms of this Agreement and in accordance with the terms of the Purchase Contract Agreement; provided, that the Purchase Contract Agent shall not exercise or shall not refrain from exercising such right, as the case may be, if,
in the judgment of the Company, such action would impair or otherwise have a material adverse effect on the value of all or any of the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes; and provided, further, that
the Purchase Contract Agent shall give the Company and the Collateral Agent at least five Business Days’ prior written notice of the manner in which it intends to exercise, or its reasons for refraining from exercising, any such right. Upon
receipt of any notices and other communications in respect of any Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, including notice of any meeting at which holders of the Senior Notes are entitled to vote or
solicitation of consents, waivers or proxies of holders of the Senior Notes, the Collateral Agent shall use reasonable efforts to send promptly to the Purchase Contract Agent such notice or communication, and as soon as reasonably practicable after
receipt of a written request therefor from the Purchase Contract Agent, execute and deliver to the Purchase Contract Agent such proxies and other instruments in respect of such Senior Notes underlying the Pledged Applicable Ownership Interests in
Senior Notes (in form and substance satisfactory to the Collateral Agent) as are prepared by the Company and delivered to the Purchase Contract Agent with respect to the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior
Notes. 
 ARTICLE 7 
 RIGHTS AND REMEDIES 
 Section 7.01. Rights and Remedies of the Collateral Agent. 
 (a) In addition to the rights and remedies specified in Section 5.07 hereof or otherwise available at law or in equity, after an event of default (as
specified in Section 7.01(b) below) hereunder, the Collateral Agent shall have all of the rights and remedies with respect to the Collateral of a secured party under the UCC (whether or not the UCC is in effect in the jurisdiction where the
rights and remedies are asserted) and the TRADES Regulations and such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may be asserted. Without
limiting the generality of the foregoing, such remedies may include, to the extent permitted by applicable law, (1) retention of the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, Pledged Treasury Securities
or Pledged Applicable Ownership Interests in the Treasury Portfolio in full satisfaction of the Holders’ Obligations or (2) sale of the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, Pledged Treasury
Securities or Pledged Applicable Ownership Interests in the Treasury Portfolio in one or more public or private sales. 
  

 20 

 (b) Without limiting any rights or powers otherwise granted by this Agreement to the Collateral Agent, in
the event the Collateral Agent is unable to make payments to the Company on account of Proceeds of (i) the Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes (other than any interest payments thereon),
(ii) Pledged Applicable Ownership Interests in the Treasury Portfolio, or (iii) the Pledged Treasury Securities as provided in Article 3 hereof, in satisfaction of the Obligations of the Holder of the Units of which such applicable Pledged
Applicable Ownership Interests in the Treasury Portfolio or such Pledged Treasury Securities, as applicable, are a part under the related Purchase Contracts, the inability to make such payments shall constitute an event of default hereunder and the
Collateral Agent shall have and may exercise, with reference to such Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes, Pledged Treasury Securities or Pledged Applicable Ownership Interests in the Treasury Portfolio,
as applicable, any and all of the rights and remedies available to a secured party under the UCC and the TRADES Regulations after default by a debtor, and as otherwise granted herein or under any other law. For the avoidance of doubt, the occurrence
of a Failed Remarketing shall not constitute a default hereunder. 
 (c) Without limiting any rights or powers otherwise granted by this
Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably authorized to receive, collect and apply to the satisfaction of the Obligations all payments with respect to (i) the principal amount of Senior Notes underlying the
Pledged Applicable Ownership Interests in Senior Notes (other than any interest payments thereon), (ii) the principal amount of the Pledged Treasury Securities and (iii) the principal amount of the Pledged Applicable Ownership Interests in
the Treasury Portfolio, subject, in each case, to the provisions of Article 3 hereof, and as otherwise granted herein. 
 (d) The Purchase
Contract Agent and each Holder of Units agrees that, from time to time, upon the written request of the Collateral Agent, the Purchase Contract Agent, on behalf of such Holder shall execute and deliver such further documents and do such other acts
and things as the Collateral Agent may reasonably request in order to maintain the Pledge, and the perfection and priority thereof, and to confirm the rights of the Collateral Agent hereunder. The Purchase Contract Agent shall have no liability to
any Holder for executing any documents or taking any such acts requested by the Collateral Agent hereunder, except for liability for its own grossly negligent acts, its own grossly negligent failure to act or its own willful misconduct. 

(e) Anything herein or in the Purchase Contract Agreement or elsewhere to the contrary notwithstanding, the Collateral Agent shall have no duty to (1)
choose (a) the U.S. treasury securities that comprise the U.S. treasury securities referred to in clause (ii) of the definition of “Treasury Securities” in the Purchase Contract Agreement or (b) the Treasury Portfolio or (2) arrange for
the purchase of such U.S. treasury securities or the Treasury Portfolio, other than to transfer from funds available in the Collateral Account in payment of the purchase price thereof against delivery to it of such U.S. treasury securities or the
Treasurer Portfolio, as the case may be. 
 Section 7.02. Substitutions. Whenever a Holder has the right to substitute Treasury
Securities, Senior Notes underlying the Applicable Ownership Interest in Senior Notes or the appropriate Applicable Ownership Interest in the Treasury Portfolio (as defined in clause (i) of the definition of term), or security entitlements for
any of them, as the case may be, for financial assets held in the Collateral Account, such substitution shall not constitute a novation of the security interest created hereby. 
 ARTICLE 8 
 REPRESENTATIONS AND WARRANTIES; COVENANTS 
 Section 8.01. Representations and Warranties. Each Holder from time to time, acting through the Purchase Contract Agent as attorney-in-fact (it
being understood that the 

  

 21 

 
Purchase Contract Agent shall not be liable for any representation or warranty made by or on behalf of a Holder), hereby represents and warrants to the
Collateral Agent (with respect to such Holder’s interest in the Collateral), which representations and warranties shall be deemed repeated on each day a Holder Transfers Collateral, that: 
 (a) such Holder has the power to grant a security interest in and lien on the Collateral; 
 (b) such Holder is the sole beneficial owner of the Collateral and, in the case of Collateral delivered in physical form, is the sole holder of such
Collateral and is the sole beneficial owner of, or has the right to Transfer, the Collateral it Transfers to the Collateral Agent for credit to the Collateral Account, free and clear of any security interest, lien, encumbrance, call, liability to
pay money or other restriction other than the security interest and lien granted under Article 2 hereof; 
 (c) upon the Transfer of the
Collateral to the Securities Intermediary for credit to the Collateral Account, the Collateral Agent, for the benefit of the Company, will have a valid and perfected first priority security interest therein (assuming that any central clearing
operation or any securities intermediary or other entity not within the control of the Holder involved in the Transfer of the Collateral, including the Collateral Agent and the Securities Intermediary, gives the notices and takes the action required
of it hereunder and under applicable law for perfection of that interest and assuming the establishment and exercise of control pursuant to Article 4 hereof); and 
 (d) the execution and performance by the Holder of its Obligations under this Agreement will not result in the creation of any security interest, lien or other encumbrance on the Collateral other than the security
interest and lien granted under Article 2 hereof or violate any provision of any existing law or regulation applicable to it or of any mortgage, charge, pledge, indenture, contract or undertaking to which it is a party or which is binding on it or
any of its assets. 
 Section 8.02. Covenants. The Purchase Contract Agent and the Holders from time to time, acting through the
Purchase Contract Agent as their attorney-in-fact (it being understood that the Purchase Contract Agent shall not be liable for any covenant made by or on behalf of a Holder), hereby covenant to the Collateral Agent that for so long as the
Collateral remains subject to the Pledge: 
 (a) neither the Purchase Contract Agent nor such Holders will create or purport to create or
allow to subsist any mortgage, charge, lien, pledge or any other security interest whatsoever over the Collateral or any part of it other than pursuant to this Agreement; and 
 (b) neither the Purchase Contract Agent nor such Holders will sell or otherwise dispose (or attempt to dispose) of the Collateral or any part of it
except for the beneficial interest therein, subject to the Pledge hereunder, transferred in connection with the Transfer of the Units. 
  

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 ARTICLE 9 
 THE COLLATERAL AGENT, THE CUSTODIAL AGENT 
 AND THE SECURITIES INTERMEDIARY 
 It is hereby agreed as follows: 
 Section
9.01. Appointment, Powers and Immunities. The Collateral Agent, the Custodial Agent or Securities Intermediary shall act solely as agent for the Company hereunder and will not assume any obligation or relationship of agency or trust for or
with any of the Holders except for the obligations owed by a pledgee of property to the owner of the property under this Agreement and applicable law, and shall have such powers as are specifically vested in the Collateral Agent, the Custodial Agent
or Securities Intermediary, as the case may be, by the terms of this Agreement. The Collateral Agent, the Custodial Agent and Securities Intermediary shall: 
 (a) have no duties or responsibilities except those expressly set forth in this Agreement and no implied covenants or obligations shall be inferred from this Agreement against the Collateral Agent, the Custodial Agent
and Securities Intermediary, nor shall the Collateral Agent, the Custodial Agent and Securities Intermediary be bound by the provisions of any agreement by any party hereto beyond the specific terms hereof; 
 (b) not be responsible for any recitals contained in this Agreement, or in any certificate or other document referred to or provided for in, or received
by it under, this Agreement, the Units or the Purchase Contract Agreement, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement (other than as against the Collateral Agent, the Custodial Agent or
Securities Intermediary, as the case may be), the Units, any Collateral or the Purchase Contract Agreement or any other document referred to or provided for herein or therein or for any failure by the Company or any other Person (except the
Collateral Agent, the Custodial Agent or Securities Intermediary, as the case may be) to perform any of its obligations hereunder or thereunder or for the perfection, priority or, except as expressly required hereby, maintenance of any security
interest created hereunder; 
 (c) not be required to initiate or conduct any litigation or collection proceedings hereunder (except, in the
case of the Collateral Agent pursuant to directions furnished under Section 9.02 hereof, subject to Section 9.08 hereof); 
 (d)
not be responsible for any action taken or omitted to be taken by it hereunder or under any other document or instrument referred to or provided for herein or in connection herewith or therewith, except for its own gross negligence or willful
misconduct; and 
 (e) not be required to advise any party as to selling or retaining, or taking or refraining from taking any action with
respect to, any securities or other property deposited hereunder. 
 Subject to the foregoing, during the term of this Agreement, the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall take all reasonable action in connection with the safekeeping and preservation of the Collateral hereunder as determined by industry standards. 
  

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 No provision of this Agreement shall require the Collateral Agent, Custodial Agent or Securities
Intermediary to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. In no event shall the Collateral Agent, Custodial Agent or Securities Intermediary be liable for any amount in
excess of the Value of the Collateral. 
 Section 9.02. Instructions of the Company. The Company shall have the right, by one or more
written instruments executed and delivered to the Collateral Agent, to direct the time, method and place of conducting any proceeding for the realization of any right or remedy available to the Collateral Agent, or of exercising any power conferred
on the Collateral Agent, or to direct the taking or refraining from taking of any action authorized by this Agreement; provided, however, that (i) such direction shall not conflict with the provisions of any law or of this Agreement or involve
the Collateral Agent in personal liability and (ii) the Collateral Agent shall be indemnified to its satisfaction as provided herein. Nothing contained in this Section 9.02 shall impair the right of the Collateral Agent in its discretion
to take any action or omit to take any action which it deems proper and which is not inconsistent with such direction. None of the Collateral Agent, the Custodial Agent or the Securities Intermediary has any obligation or responsibility to file UCC
financing or continuation statements. Each Holder, acting through the Purchase Contract Agent as such Holder’s attorney-in-fact, and the Purchase Contract Agent, acting solely as such attorney-in-fact, authorizes the Company to file one or more
UCC financing statements naming the Purchase Contract Agent as debtor, describing the Collateral. 
 Section 9.03. Reliance by Collateral
Agent and Securities Intermediary. Each of the Securities Intermediary, the Custodial Agent and the Collateral Agent shall be entitled to rely conclusively upon any certification, order, judgment, opinion, notice or other written communication
(including, without limitation, any thereof by e-mail or similar electronic means, telecopy, or facsimile) believed by it to be genuine and to have been signed or sent by or on behalf of the proper Person or Persons (without being required to
determine the correctness of any fact stated therein) and consult with and conclusively rely upon advice, opinions and statements of legal counsel and other experts selected by the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be. Each of the Collateral Agent, the Securities Intermediary and the Custodial Agent 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. As to any matters not expressly provided for by this Agreement, the Collateral Agent, the Custodial Agent and the Securities
Intermediary shall in all cases be fully protected in acting, or in refraining from acting, hereunder in accordance with instructions given by the Company. 
 Section 9.04. Certain Rights. (a) Whenever in the administration of the provisions of this Agreement the Collateral Agent, the Custodial Agent or the Securities Intermediary shall deem it necessary or
desirable that a matter be proved or established prior to taking, omitting to take any action hereunder or suffering to exist any state of events, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, be
deemed to be conclusively proved and established by a certificate signed by one of the Company’s officers, and delivered to the Collateral Agent, the Custodial Agent or the Securities Intermediary and such certificate, shall, in the absence of
willful misconduct or bad faith on the part of the Collateral Agent, the Custodial Agent or the Securities Intermediary, be full warrant to the 

  

 24 

 
Collateral Agent, the Custodial Agent or the Securities Intermediary for any action taken, suffered or omitted by it under the provisions of this Agreement
upon reliance thereon. 
 (b) The Collateral Agent, the Custodial Agent or the Securities Intermediary shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or other paper or document. 
 Section 9.05. Merger, Conversion, Consolidation or Succession to Business. Any Person into which the Collateral Agent, the Custodial Agent or the
Securities Intermediary may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Collateral Agent, the Custodial Agent or the Securities Intermediary shall be
a party, or any Person succeeding to the corporate trust or agency business of the Collateral Agent, the Custodial Agent or the Securities Intermediary shall be the successor of the Collateral Agent, the Custodial Agent or the Securities
Intermediary hereunder without the execution or filing of any paper with any party hereto or any further act on the part of any of the parties hereto except where an instrument of transfer or assignment is required by law to effect such succession,
anything herein to the contrary notwithstanding. 
 Section 9.06. Rights in Other Capacities. The Collateral Agent, the Custodial
Agent and the Securities Intermediary and their affiliates may (without having to account therefor to the Company) accept deposits from, lend money to, make their investments in and generally engage in any kind of banking, trust or other business
with the Purchase Contract Agent, any other Person interested herein and any Holder of Units (and any of their respective subsidiaries or affiliates) as if it were not acting as the Collateral Agent, the Custodial Agent or the Securities
Intermediary, as the case may be, and the Collateral Agent, the Custodial Agent, the Securities Intermediary and their affiliates may accept fees and other consideration from the Purchase Contract Agent and any Holder of Units without having to
account for the same to the Company; provided that each of the Securities Intermediary, the Custodial Agent and the Collateral Agent covenants and agrees with the Company that it shall not accept, receive or permit there to be created in favor of
itself and shall take no affirmative action to permit there to be created in favor of any other Person, any security interest, lien or other encumbrance of any kind in or upon the Collateral other than the lien created by the Pledge. 
 Section 9.07. Non-reliance on Collateral Agent, the Custodial Agent and Securities Intermediary. None of the Securities Intermediary, the
Custodial Agent or the Collateral Agent shall be required to keep itself informed as to the performance or observance by the Purchase Contract Agent or any Holder of Units of this Agreement, the Purchase Contract Agreement, the Units or any other
document referred to or provided for herein or therein or to inspect the properties or books of the Purchase Contract Agent or any Holder of Units. None of the Collateral Agent, the Custodial Agent or the Securities Intermediary shall have any duty
or responsibility to provide the Company with any credit or other information concerning the affairs, financial condition or business of the Purchase Contract Agent or any Holder of Units (or any of their respective affiliates) that may come into
the possession of the Collateral Agent, the Custodial Agent or the Securities Intermediary or any of their respective affiliates. 
  

 25 

 Section 9.08. Compensation and Indemnity. The Company agrees to: 
 (a) pay the Collateral Agent, the Custodial Agent and the Securities Intermediary from time to time such compensation as shall be agreed in writing
between the Company and the Collateral Agent, the Custodial Agent or the Securities Intermediary, as the case may be, for all services rendered by them hereunder; 
 (b) indemnify and hold harmless the Collateral Agent, the Custodial Agent, the Securities Intermediary and each of their respective directors, officers, agents and employees (collectively with the Collateral Agent,
the Custodial Agent and the Securities Intermediary, the “Indemnitees”), from and against any and all claims, liabilities, losses, damages, fines, penalties and expenses (including reasonable fees and expenses of counsel) (collectively,
“Losses” and individually, a “Loss”) that may be imposed on, incurred by, or asserted against, the Indemnitees or any of them for following any instructions or other directions upon which either the Collateral Agent, the
Custodial Agent or the Securities Intermediary is entitled to rely pursuant to the terms of this Agreement; and 
 (c) in addition to and not
in limitation of paragraph (b) immediately above, indemnify and hold the Indemnitees and each of them harmless from and against any and all Losses that may be imposed on, incurred by or asserted against, the Indemnitees or any of them in
connection with or arising out of the Collateral Agent’s, the Custodial Agent’s or the Securities Intermediary’s acceptance or performance of its powers and duties under this Agreement, provided the Collateral Agent, the Custodial
Agent or the Securities Intermediary has not acted with gross negligence or engaged in willful misconduct or bad faith with respect to the specific Loss against which indemnification is sought, including the Indemnitees’ reasonable costs and
expenses of defending themselves against any claim (whether asserted by the Company, a Holder or any other Person) or liability in connection with the exercise or performance of any of the Collateral Agent’s, the Custodial Agent’s or the
Securities Intermediary’s powers or duties hereunder or thereunder or of enforcing the provisions of this Section and Section 11.07. 
 Without prejudice to its rights hereunder, when any of the Collateral Agent or Securities Intermediary incurs expenses after a Termination Event occurs, or renders services after a Termination Event occurs, such expenses and compensation
are intended to constitute expenses of administration under the Bankruptcy Code or any applicable state bankruptcy, insolvency or other similar law. 
 The provisions of this Section and Section 11.07 shall survive the resignation or removal of the Collateral Agent, Custodial Agent or Securities Intermediary and the termination of this Agreement. 
 Section 9.09. Failure to Act. In the event of any ambiguity in the provisions of this Agreement or any dispute between or conflicting claims by or
among the parties hereto or any other Person with respect to any funds or property deposited hereunder, then at its sole option, each of the Collateral Agent, the Custodial Agent and the Securities Intermediary shall be entitled, after prompt notice
to the Company and the Purchase Contract Agent, to refuse to 

  

 26 

 
comply with any and all claims, demands or instructions with respect to such property or funds so long as such dispute or conflict shall continue, and the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall not be or become liable in any way to any of the parties hereto for its failure or refusal to comply with such conflicting claims, demands or instructions. The Collateral
Agent, the Custodial Agent and the Securities Intermediary shall be entitled to refuse to act until either: 
 (a) such conflicting or adverse
claims or demands shall have been finally determined by a court of competent jurisdiction or settled by agreement between the conflicting parties as evidenced in a writing provided to the Collateral Agent, the Custodial Agent or the Securities
Intermediary; or 
 (b) the Collateral Agent, the Custodial Agent or the Securities Intermediary shall have received security or an indemnity
satisfactory to it sufficient to save it harmless from and against any and all loss, liability or reasonable out-of-pocket expense which it may incur by reason of its acting. 
 The Collateral Agent, the Custodial Agent and the Securities Intermediary may in addition elect to commence an interpleader action or seek other judicial
relief or orders as the Collateral Agent, the Custodial Agent or the Securities Intermediary may deem necessary. Notwithstanding anything contained herein to the contrary, none of the Collateral Agent, the Custodial Agent or the Securities
Intermediary shall be required to take any action that is in its opinion contrary to law or to the terms of this Agreement, or which would in its opinion subject it or any of its officers, employees or directors to liability. 
 Section 9.10. Resignation of Collateral Agent, the Custodial Agent and Securities Intermediary. 
 (a) Subject to the appointment and acceptance of a successor Collateral Agent, Custodial Agent or Securities Intermediary as provided below: 

(i) the Collateral Agent, the Custodial Agent and the Securities Intermediary may resign at any time by giving notice thereof to the
Company and the Purchase Contract Agent as attorney-in-fact for the Holders of Units; 
 (ii) the Collateral Agent, the
Custodial Agent and the Securities Intermediary may be removed at any time by the Company; and 
 (iii) if the Collateral
Agent, the Custodial Agent or the Securities Intermediary fails to perform any of its obligations hereunder in any material respect for a period of not less than 20 days after receiving written notice of such failure by the Purchase Contract Agent
and such failure shall be continuing, the Collateral Agent, the Custodial Agent and the Securities Intermediary may be removed by the Purchase Contract Agent, acting at the direction of the Holders of Units. 
 The Purchase Contract Agent shall promptly notify the Company of any removal of the Collateral Agent, the Custodial Agent or the Securities Intermediary
pursuant to clause 

  

 27 

 
(iii) of this Section 9.10. Upon any such resignation or removal, the Company shall have the right to appoint a successor Collateral Agent, Custodial
Agent or Securities Intermediary, as the case may be, which shall not be an Affiliate of the Purchase Contract Agent. If no successor Collateral Agent, Custodial Agent or Securities Intermediary shall have been so appointed and shall have accepted
such appointment within 30 days after the retiring Collateral Agent’s, Custodial Agent’s or Securities Intermediary’s giving of notice of resignation or the Company’s or the Purchase Contract Agent’s giving notice of such
removal, then the retiring or removed Collateral Agent, Custodial Agent or Securities Intermediary may petition any court of competent jurisdiction, at the expense of the Company, for the appointment of a successor Collateral Agent, Custodial Agent
or Securities Intermediary. The Collateral Agent, the Custodial Agent and the Securities Intermediary shall each be a bank or a national banking association which has an office (or an agency office) in New York City with a combined capital and
surplus of at least $50,000,000. Upon the acceptance of any appointment as Collateral Agent, Custodial Agent or Securities Intermediary hereunder by a successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, such
successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent, Custodial Agent or
Securities Intermediary, as the case may be, and the retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, shall take all appropriate action, subject to payment of any amounts then due and payable to it
hereunder, to transfer any money and property held by it hereunder (including the Collateral) to such successor. The retiring Collateral Agent, Custodial Agent or Securities Intermediary shall, upon such succession, be discharged from its duties and
obligations as Collateral Agent, Custodial Agent or Securities Intermediary hereunder. After any retiring Collateral Agent’s, Custodial Agent’s or Securities Intermediary’s resignation hereunder as Collateral Agent, Custodial Agent or
Securities Intermediary, the provisions of this Article 9 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Collateral Agent, Custodial Agent or Securities Intermediary.
Any resignation or removal of the Collateral Agent, Custodial Agent or Securities Intermediary hereunder, at a time when such Person is acting as the Collateral Agent, Custodial Agent or Securities Intermediary, shall be deemed for all purposes of
this Agreement as the simultaneous resignation or removal of the Collateral Agent, Securities Intermediary or Custodial Agent, as the case may be. 
 (b) Because The Bank of New York is serving as the Collateral Agent hereunder and the Purchase Contract Agent under the Purchase Contract Agreement, if an event of default occurs hereunder or under the Purchase Contract Agreement, The Bank
of New York will resign as the Collateral Agent, but continue to act as the Purchase Contract Agent. A successor Collateral Agent will be appointed in accordance with the terms hereof. If any such event of default is cured or waived prior to the
appointment of a successors Collateral Agent, the duty of The Bank of New York to resign in respect of such event of default shall cease. 
 Section 9.11. Right to Appoint Agent or Advisor. The Collateral Agent shall have the right to appoint agents or advisors in connection with any of its duties hereunder, and the Collateral Agent shall not be liable for any action
taken or omitted by, or in reliance upon the advice of, such agents or advisors selected in good faith. The appointment of agents pursuant to this Section 9.11 shall be subject to prior written consent of the Company, which consent shall not be
unreasonably withheld. 
  

 28 

 Section 9.12. Survival. The provisions of this Article 9 and Section 11.07 shall survive
termination of this Agreement and the resignation or removal of the Collateral Agent, the Custodial Agent or the Securities Intermediary. 
 Section 9.13. Exculpation. Anything contained in this Agreement to the contrary notwithstanding, in no event shall the Collateral Agent, the Custodial Agent or the Securities Intermediary or their officers, directors, employees or
agents be liable under this Agreement for (i) indirect, special, punitive, or consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits, whether or not the likelihood of such loss or damage was known to
the Collateral Agent, the Custodial Agent or the Securities Intermediary, or any of them and regardless of the form of action or (iii) any failure or delay in the performance of its obligations under this Agreement arising out of or caused,
directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God, earthquakes, fire, flood, terrorism, wars and other military disturbances, sabotage, epidemics, riots, interruptions, loss or
malfunctions of utilities, computer (hardware or software) or communication services, accidents, labor disputes, acts of civil or military authority and governmental action. 
 ARTICLE 10 
 AMENDMENT 
 Section 10.01. Amendment Without Consent of Holders. Without the consent of any Holders, the Company, the Collateral Agent and the Purchase
Contract Agent, at any time and from time to time, may amend this Agreement, in form satisfactory to the Company and the Collateral Agent, to: 
 (a) evidence the succession of another Person to the obligations of the Company and the assumption by any such successor of the covenants of the Company herein; 
 (b) evidence and provide for the acceptance of appointment hereunder by a successor Collateral Agent, Custodial Agent, Securities Intermediary or Purchase Contract Agent; 
 (c) add to the covenants of the Company for the benefit of the Holders, or surrender any right or power herein conferred upon the Company; 
 (d) make any provisions with respect to the rights of holders pursuant to the requirements applicable to Reorganization Events; or 
 (e) cure any ambiguity or to correct or supplement any provisions herein which may be inconsistent with any other such provisions herein, or make any
other provisions with respect to such matters or questions arising under this Agreement, provided that such action shall not materially adversely affect the interests of the Holders. 
 Section 10.02. Amendment with Consent of Holders. With the consent of the Holders of not less than a majority of the outstanding Purchase
Contracts at any one time, including without limitation the consent of the Holders of Purchase Contracts obtained in connection with a tender or an exchange offer, by Act of such Holders delivered to the Company, the Purchase Contract Agent and the
Collateral Agent, the Company, the Purchase Contract 

  

 29 

 
Agent and the Collateral Agent may amend this Agreement for the purpose of modifying in any manner the provisions of this Agreement or the rights of the
Holders in respect of the Units; provided, however, that no such supplemental agreement shall, without the unanimous consent of the Holders of each outstanding Purchase Contract adversely affected thereby: 
 (a) change any payment date; 
 (b) change the
amount or type of Pledged Securities related to the Purchase Contract, impair the right of the Holder of any Unit to receive distributions on the Pledged Securities or otherwise adversely affect the Holder’s rights in or to the Pledged
Securities; 
 (c) change the place or currency of payment of or reduce any contract adjustment payments; 
 (d) impair the right to institute suit for the enforcement of the purchase contract or payment of any contract adjustment payments; 
 (e) reduce the number of shares of common stock or the amount of any other property or securities purchasable under the purchase contract, increase the
price to purchase shares of common stock or any other property or securities upon settlement of the purchase contract, change the purchase contract settlement date or the right to early settlement or cash merger early settlement or otherwise
adversely affect the holder’s rights under the purchase contract; or 
 (f) reduce the percentage of Purchase Contracts the consent of
whose Holders is required for the modification or amendment of the provisions of this Agreement; 
 provided that if any amendment or proposal referred to
above would adversely affect only the Corporate Units or only the Treasury Units, then only the affected class of Holders as of the record date for the Holders entitled to vote thereon will be entitled to vote on such amendment or proposal, and such
amendment or proposal shall not be effective except with the consent of Holders of not less than a majority of such class or of all of the holders of such class, as applicable; provided, further, that the unanimous consent of the Holders of each
outstanding Purchase Contract of such class affected thereby shall be required to approve any amendment or proposal specified in clauses (a) through (c) above. 
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed amendment, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 10.03. Execution of Amendments. In executing any amendment permitted by this Article, the Collateral Agent, the Custodial Agent, the
Securities Intermediary and the Purchase Contract Agent shall be entitled to receive and (subject to Section 7.01 of the Purchase Contract Agreement with respect to the Purchase Contract Agent) shall be fully authorized and protected in relying
upon, an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent, if any, to the execution and delivery of such amendment have been satisfied. The Collateral
Agent, Custodial Agent, Securities Intermediary and Purchase Contract Agent may, but shall not 

  

 30 

 
be obligated to, enter into any such amendment which affects their own respective rights, duties or immunities under this Agreement or otherwise. 

Section 10.04. Effect of Amendments. Upon the execution of any amendment under this Article, this Agreement shall be modified in accordance
therewith, and such amendment shall form a part of this Agreement for all purposes; and every Holder of Certificates theretofore or thereafter authenticated, executed on behalf of the Holders and delivered under the Purchase Contract Agreement shall
be bound thereby. 
 Section 10.05. Reference of Amendments. Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any amendment pursuant to this Section may bear a notation in form as to any matter provided for in such amendment. If the Company shall so determine, new Certificates so modified as to conform, in the opinion of the
Company, to any such amendment may be prepared and executed by the Company and authenticated, executed on behalf of the Holders and delivered by the Purchase Contract Agent in accordance with the Purchase Contract Agreement in exchange for
Certificates representing Outstanding Units. 
 ARTICLE 11 
 MISCELLANEOUS 
 Section 11.01. No Waiver. No failure on the part of the Company, the
Collateral Agent, the Custodial Agent, the Securities Intermediary or any of their respective agents to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary or any of their respective agents of any right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law. 
 Section 11.02. Governing Law; Submission to Jurisdiction; Waiver of Trial by Jury. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE
CONFLICTS OF LAW PROVISIONS THEREOF. The Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Holders from time to time of the Units, acting through the Purchase Contract Agent as their attorney-in-fact, hereby
submit to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal proceedings arising out of or relating to this
Agreement or the transactions contemplated hereby. The Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Holders from time to time of the Units, acting through the Purchase Contract Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such
proceeding brought in such a court has been brought in an inconvenient forum. 
  

 31 

 EACH PARTY HERETO, AND EACH HOLDER OF A UNIT BY ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. 
 Section 11.03. Notices. All notices, requests, consents and other communications provided for herein (including, without limitation, any
modifications of, or waivers or consents under, this Agreement) shall be given or made in writing (including, without limitation, by telecopy, if promptly confirmed by telephone) delivered to the intended recipient at the “Address for
Notices” specified below its name on the signature pages hereof or, as to any party, at such other address as shall be designated by such party in a notice to the other parties. Except as otherwise provided in this Agreement, all such
communications shall be deemed to have been duly given when transmitted by telecopier or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid except in the case of notices or
communications given to the Collateral Agent, the Custodial Agent, the Securities Intermediary or the Purchase Contract Agent, which shall be effective only upon actual receipt. 
 Each of the Securities Intermediary, the Custodial Agent and the Collateral Agent shall have the right, but shall not be required, to rely upon and
comply with instructions and directions sent by e-mail, facsimile and other similar unsecured electronic methods by persons believed by any of them to be authorized to give instructions and directions on behalf of the Company; provided, that the
Securities Intermediary, the Custodial Agent or the Collateral Agent shall notify the party delivering such notice that it has elected not to rely upon and comply with such instructions should it so choose. Each of the Securities Intermediary, the
Custodial Agent and the Collateral Agent shall have no duty or obligation to verify or confirm that the person who sent such instructions or directions is, in fact, a person authorized to give instructions or directions on behalf of the Company; and
the Securities Intermediary, the Custodial Agent and the Collateral Agent shall have no liability for any losses, liabilities, costs or expenses incurred or sustained by the Company as a result of such reliance upon or compliance with such
instructions or directions. The Company agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Securities Intermediary, the Custodial Agent or the Collateral Agent, including without
limitation the risk of the any of them acting on unauthorized instructions, and the risk of interception and misuse by third parties. 
 Section 11.04. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and
the Purchase Contract Agent, and the Holders from time to time of the Units, by their acceptance of the same, shall be deemed to have agreed to be bound by the provisions hereof and to have ratified the agreements of, and the grant of the Pledge
hereunder by, the Purchase Contract Agent. 
 Section 11.05. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart. 
  

 32 

 Section 11.06. Severability. If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out the intentions of the parties hereto
as nearly as may be possible and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 
 Section 11.07. Expenses, Etc. The Company agrees to reimburse the Collateral Agent, the Custodial Agent and the Securities Intermediary for:

 (a) all reasonable costs and expenses of the Collateral Agent, the Custodial Agent and the Securities Intermediary (including, without
limitation, the reasonable fees and expenses of counsel to the Collateral Agent, the Custodial Agent and the Securities Intermediary), in connection with (i) the negotiation, preparation, execution and delivery or performance of this Agreement
and (ii) any modification, supplement or waiver of any of the terms of this Agreement; 
 (b) in addition to and not in limitation of
paragraph (a) immediately above, all reasonable costs and expenses of the Collateral Agent, the Custodial Agent and the Securities Intermediary (including, without limitation, reasonable fees and expenses of counsel) in connection with
(i) any enforcement or proceedings resulting or incurred in connection with causing any Holder of Units to satisfy its obligations under the Purchase Contracts forming a part of the Units and (ii) the enforcement of this
Section 11.07; 
 (c) all transfer, stamp, documentary or other similar taxes, assessments or charges levied by any governmental or
revenue authority in respect of this Agreement or any other document referred to herein and all costs, expenses, taxes, assessments and other charges incurred in connection with any filing, registration, recording or perfection of any security
interest contemplated hereby (it being understood, however, that none of the Collateral Agent, Securities Intermediary or Custodial Agent shall have any duty or obligation in respect of any such filing, registration, recording or perfection unless
and until specifically requested in writing by the Company to take any action in respect thereto); 
 (d) all reasonable fees and expenses of
any agent or advisor appointed by the Collateral Agent and consented to by the Company under Section 9.11 of this Agreement; and 
 (e)
any other out-of-pocket costs and expenses reasonably incurred by the Collateral Agent, the Custodial Agent and the Securities Intermediary in connection with the performance of their duties hereunder. 
 Section 11.08. Security Interest Absolute. All rights of the Collateral Agent and security interests hereunder, and all obligations of the Holders
from time to time hereunder, shall be absolute and unconditional irrespective of: 
 (a) any lack of validity or enforceability of any
provision of the Purchase Contracts or the Units or any other agreement or instrument relating thereto; 
  

 33 

 (b) any change in the time, manner or place of payment of, or any other term of, or any increase in the
amount of, all or any of the obligations of Holders of the Units under the related Purchase Contracts, or any other amendment or waiver of any term of, or any consent to any departure from any requirement of, the Purchase Contract Agreement or any
Purchase Contract or any other agreement or instrument relating thereto; or 
 (c) any other circumstance which might otherwise constitute a
defense available to, or discharge of, a borrower, a guarantor or a pledgor. 
 Section 11.09. Notice of Termination Event. Upon the
occurrence of a Termination Event, the Company shall deliver written notice to the Purchase Contract Agent, the Collateral Agent and the Securities Intermediary. Upon the written request of the Purchase Contract Agent, the Collateral Agent or the
Securities Intermediary, the Company shall inform such party whether or not a Termination Event has occurred. 
 SIGNATURES ON THE FOLLOWING
PAGE. 
  

 34 

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

									
	AMBAC FINANCIAL GROUP, INC.	 		 	 THE BANK OF NEW YORK, as
 Purchase
Contract Agent and as
 attorney-in-fact of the Holders
 from time
to time of the Units

					
	 By:
	 	 /s/ David Trick
	 		 	By:	 	 /s/ Franca M. Ferrera

	Name:	 	David Trick	 		 	Name:	 	Franca M. Ferrera
	Title:	 	Managing Director and Treasurer	 		 	Title:	 	Assistant Vice President
	Address for Notices:	 		 	Address for Notices:
			
	 Ambac Financial Group, Inc.
 One State Street
Plaza
 New York, NY 10004
 Attention: General
Counsel
	 		 	 The Bank of New York,
 as Purchase Contract
Agent
 101 Barclay Street, 8W
 New York, NY 10286
 Telephone No.: 212-815-5995
 Telecopier No.: 212-815-5704
 Attention: Corporate Trust Division -
 Corporate Finance
Unit

  

			
	 THE BANK OF NEW YORK,
 as Collateral Agent,
Custodial Agent
 and Securities Intermediary

		
	 By:
	 	 /s/ Franca M. Ferrera

	 Name:
	 	Franca M. Ferrera
	 Title:
	 	Assistant Vice President

 Address for Notices: 
 Address for Notices: 
 The Bank of New York, 
 as
Collateral Agent, Custodial Agent 
 and/or Securities Intermediary 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone
No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention:
Corporate Trust Division - 
 Corporate Finance Unit 

 EXHIBIT A 
 INSTRUCTION 
 FROM PURCHASE CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Creation of Treasury Units) 
 The Bank of New York, 
 as Collateral Agent 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division - 
 Corporate Finance Unit 
 Re:                     Corporate Units of Ambac Financial
Group, Inc. (the “Company”) 
 Please refer to the Pledge Agreement, dated as of March 12, 2008 (the “Pledge
Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary and as Custodial Agent and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time.
Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge Agreement. 
 We hereby notify you in accordance
with Section 5.02 of the Pledge Agreement that the holder of securities named below (the “Holder”) has elected to substitute $             Value of Treasury Securities
or security entitlements with respect thereto in exchange for an equal Value of [Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio] relating to
             Corporate Units and has delivered to the undersigned a notice stating that the Holder has Transferred such Treasury Securities or security entitlements with respect
thereto to the Securities Intermediary, for credit to the Collateral Account. 
 We hereby request that you instruct the Securities
Intermediary, upon confirmation that such Treasury Securities or security entitlements thereto have been credited to the Collateral Account, to release to the undersigned an equal Value of [Senior Notes underlying the Pledged Applicable Ownership
Interests in Senior Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio] in accordance with Section 5.02 of the Pledge Agreement. 
  

					
	Date:	 	 The Bank of New York, as
 Purchase
Contract Agent and as
 attorney-in-fact of the Holders
 from time
to time of the Units

			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

 A-1 

 Please print name and address of Holder electing to substitute Treasury Securities or security entitlements with respect
thereto for the [Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio]: 
  

					
	  
	 		 	  

	 Name:
	 		 	 Social Security or other Taxpayer
 Identification
Number, if any

			
	  
	 		 	
	Address	 		 	
		 		 	
	  
	 		 	
	  
	 		 	

  

 A-2 

 EXHIBIT B 
 INSTRUCTION 
 FROM COLLATERAL AGENT 
 TO SECURITIES INTERMEDIARY 
 (Creation of Treasury Units) 
 The Bank of New York, 
 as Securities Intermediary 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division - 
 Corporate Finance Unit 
 Re:                      Corporate Units of Ambac Financial
Group, Inc. (the “Company”) 
 Please refer to the Pledge Agreement, dated as of March 12, 2008 (the “Pledge
Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary and as Custodial Agent and The Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units and Treasury Units from
time to time. Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge Agreement. 
 When you have
confirmed that $             Value of Treasury Securities or security entitlements thereto has been credited to the Collateral Account by or for the benefit of
                    , as Holder of Corporate Units (the “Holder”), you are hereby instructed to release from the Collateral Account
an equal Value of [Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio] or security entitlements with respect thereto relating to
                     Corporate Units of the Holder by Transfer to the Purchase Contract Agent. 
  

 B-1 

									
	Dated:	 	  
	 		 	 The Bank of New York,
 as Collateral Agent

					
		 		 		 	By:	 	  

		 		 		 	Name:	 	
		 		 		 	Title:	 	
				
	Please print name and address of Holder:	 		 		 	
			
	  
	 		 	  

	Name	 		 		 	 Social Security or other Taxpayer
 Identification Number, if any

				
	  
	 		 		 	
	Address	 		 		 		 	
				
	  
	 		 		 	
	  
	 		 		 	

  

 B-2 

 EXHIBIT C 
 INSTRUCTION 
 FROM PURCHASE CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Recreation of Corporate Units) 
 The Bank of New York, 
 as Collateral Agent 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division - 
 Corporate Finance Unit 
 Re:
                             Treasury Units of Ambac Financial Group, Inc. (the “Company”)

 Please refer to the Pledge Agreement dated as of March 12, 2008 (the “Pledge Agreement”), among the Company, you, as
Collateral Agent, as Securities Intermediary, as Custodial Agent and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Treasury Units from time to time. Capitalized terms used herein but not defined shall have
the meaning set forth in the Pledge Agreement. 
 We hereby notify you in accordance with Section 5.03 of the Pledge Agreement that the
holder of securities named below (the “Holder”) has elected to substitute $             Value of [Senior Notes underlying the Pledged Applicable Ownership Interests in
Senior Notes] [Pledged Applicable Ownership Interests in the Treasury Portfolio] or security entitlements with respect thereto in exchange for $             Value of Pledged Treasury
Securities relating to Treasury Units and has delivered to the undersigned a notice stating that the holder has Transferred such [Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes] [Pledged Applicable Ownership
Interests in the Treasury Portfolio] or security entitlements with respect thereto to the Securities Intermediary, for credit to the Collateral Account. 
  

 C-1 

 We hereby request that you instruct the Securities Intermediary, upon confirmation that such [Senior
Notes] [Applicable Ownership Interests in the Treasury Portfolio] or security entitlements with respect thereto have been credited to the Collateral Account, to release to the undersigned
$             Value of Treasury Securities or security entitlements with respect thereto related to             
Treasury Units of such Holder in accordance with Section 5.03 of the Pledge Agreement. 
  

									
	Dated:	 	  
	 		 	The Bank of New York,
		 		 		 	as Purchase Contract Agent
					
		 		 		 	By:	 	  

		 		 		 	Name:	 	
		 		 		 	Title:	 	

  

 C-2 

 Please print name and address of Holder electing to substitute [Senior Notes] [Applicable Ownership Interests in the
Treasury Portfolio] or security entitlements with respect thereto for Pledged Treasury Securities: 
  

					
	  
	 		 	  

	Name:	 		 	Social Security or other Taxpayer
		 		 	Identification Number, if any
	  
	 		 	
	Address	 		 	
			
	  
	 		 	
	  
	 		 	

  

 C-3 

 EXHIBIT D 
 INSTRUCTION 
 FROM COLLATERAL AGENT 
 TO SECURITIES INTERMEDIARY 
 (Recreation of Corporate Units) 
 The Bank of New York 
 as Securities Intermediary 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division - 
             Corporate Finance Unit 
 Re:
                             Treasury Units of Ambac Financial Group, Inc. (the “Company”)

 Please refer to the Pledge Agreement dated as of March 12, 2008 (the “Pledge Agreement”), among the Company, you, as
Securities Intermediary, Custodial Agent and Collateral Agent, and The Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time. Capitalized terms used herein but not defined shall
have the meaning set forth in the Pledge Agreement. 
 When you have confirmed that
$             Value of [Senior Notes] [Applicable Ownership Interests in the Treasury Portfolio] or security entitlements with respect thereto has been credited to the Collateral
Account by or for the benefit of                             , as Holder of Treasury Units (the
“Holder”), you are hereby instructed to release from the Collateral Account $             Value of Treasury Securities or security entitlements thereto by Transfer to the
Purchase Contract Agent. 
  

 D-1 

									
		 		 		 	 The Bank of New York,
 as Collateral Agent

					
		 		 		 	By:	 	  

		 		 		 	Name:	 	
	Dated:	 	  
	 		 	Title:	 	
		 		 		 		 	
	Please print name and address of Holder:	 		 		 	
			
	  
	 		 	  

	Name:	 		 	 Social Security or other Taxpayer
 Identification Number, if any

	  
	 		 		 	
	Address	 		 		 	
				
	  
	 		 		 	
	  
	 		 		 	

  

 D-2 

 EXHIBIT E 
 NOTICE OF CASH SETTLEMENT FROM COLLATERAL 
 AGENT TO PURCHASE CONTRACT AGENT 
 (Cash Settlement Amounts) 
 The Bank of New York, 

as Purchase Contract Agent 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division -

 Corporate Finance Unit 
  

			
	Re:	  	             Corporate Units of Ambac Financial Group, Inc. (the “Company”)
		  	             Treasury Units of the Company

 Please refer to the Pledge Agreement dated as of March 12, 2008 (the “Pledge
Agreement”), by and among you, the Company, and The Bank of New York, as Collateral Agent, Custodial Agent and Securities Intermediary. Unless otherwise defined herein, terms defined in the Pledge Agreement are used herein as defined therein.

 In accordance with Section 5.05(d) of the Pledge Agreement, we hereby notify you that as of 11:00 a.m. (New York City time) on the
Business Day immediately preceding the Purchase Contract Settlement Date, we have received (i) $              in immediately available funds paid in an aggregate amount equal to
the Purchase Price due to the Company on the Purchase Contract Settlement Date with respect to                      Corporate Units,
(ii) $              in immediately available funds paid in an aggregate amount equal to the Purchase Price due to the Company on the Purchase Contract Settlement Date with
respect to                      Treasury Units and (iii) $
             of Senior Notes underlying the Pledged Applicable Ownership Interests in Senior Notes with respect to which an automatic deemed exercise of the Put Rights has occurred.

  

									
		 		 		 	 The Bank of New York,
 as Collateral Agent

					
		 		 		 	By:	 	  

		 		 		 	Name:	 	
	Dated:	 	  
	 		 	Title:	 	

  

 E-1 

 EXHIBIT F 
 INSTRUCTION TO CUSTODIAL AGENT REGARDING REMARKETING 
 The Bank of New York, 
 as Custodial Agent 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division -

 Corporate Finance Unit 
  

	Re:	Senior Notes Due February 15, 2021 of Ambac Financial Group, Inc. (the “Company”) 

 The undersigned hereby notifies you in accordance with Section 5.09 of the Pledge Agreement, dated as of March 12, 2008 (the “Pledge
Agreement”), among the Company, you, as Collateral Agent, Custodial Agent and Securities Intermediary and The Bank of New York, as the Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time, that
the undersigned elects to deliver $             aggregate principal amount of Separate Senior Notes for delivery to the Remarketing Agent prior to the close of business on the second
Business Day immediately preceding the Initial Remarketing Date pursuant to Section 5.09 of the Pledge Agreement. The undersigned will, upon request of the Remarketing Agent, execute and deliver any additional documents deemed by the
Remarketing Agent or by the Company to be necessary or desirable to complete the sale, assignment and transfer of the Separate Senior Notes tendered hereby. Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge
Agreement. 
 The undersigned hereby instructs you, upon receipt of the Proceeds of such remarketing from the Remarketing Agent, to deliver
such Proceeds to the undersigned in accordance with the instructions indicated herein under “A. Payment Instructions.” The undersigned hereby instructs you, in the event of a Failed Remarketing, upon receipt of the Separate Senior Notes
tendered herewith from the Remarketing Agent, to deliver such Separate Senior Notes to the person(s) and the address(es) indicated herein under “B. Delivery Instructions.” 
 With this notice, the undersigned hereby (i) represents and warrants that the undersigned has full power and authority to tender, sell, assign and
transfer the Separate Senior Notes tendered hereby and that the undersigned is the record owner of any Separate Senior Notes tendered herewith in physical form or a participant in The Depositary Trust Company (“DTC”) and the beneficial
owner of any Separate Senior Notes tendered herewith by book-entry transfer to your account at DTC, (ii) agrees to be bound by the terms and conditions of Section 5.09 of the Pledge Agreement and (iii) acknowledges and agrees that
after the close of business on the Business Day immediately preceding the Initial Remarketing Date, such election shall become an irrevocable election to have such Separate Senior Notes remarketed in the Remarketing, and that the Separate Senior
Notes tendered herewith will only be returned in the event of a Failed Remarketing. 
  

 F-1 

					
	 Date:
	 		 	
		 	By:	 	  

		 		 	Name:
		 		 	Title:
		 		 	Signature Guarantee:
	  
	 		 	
	Name	 		 	
		 		 	  

		 		 	Social Security or other Taxpayer Identification Number, if any
	  
	 		 	
	Address	 		 	

  

 F-2 

	A.	PAYMENT INSTRUCTIONS 

 Proceeds of the remarketing should be paid by check
in the name of the person(s) set forth below and mailed to the address set forth below. 
 Name(s) 
 (Please Print) 
 Address 
 (Please Print) 
 (Zip Code) 
 (Tax Identification or Social Security Number) 
  

	B.	DELIVERY INSTRUCTIONS 

 In the event of a Failed Remarketing, Senior Notes
which are in physical form should be delivered to the person(s) set forth below and mailed to the address set forth below. 
 Name(s) 
 (Please Print) 
 Address 
 (Please Print) 
 (Zip Code) 
  

 F-3 

 (Tax Identification or Social Security Number) 
 In the event of a Failed Remarketing, Senior Notes which are in book-entry form should be credited to the account at The Depository Trust Company set forth below. 
  

			
	  

	DTC Account Number

			
		
	Name of Account Party:	 	  

  

 F-4 

 EXHIBIT G 
 INSTRUCTION TO CUSTODIAL AGENT REGARDING 
 WITHDRAWAL FROM REMARKETING 
 The Bank of New York, 
 as Custodial Agent 
 101 Barclay Street, 8W 
 New York, NY 10286 
 Telephone No.: 212-815-5995 
 Telecopier No.: 212-815-5704 
 Attention: Corporate Trust Division - 
 Corporate Finance Unit 
  

	Re:	Senior Notes due February 15, 2021 of Ambac Financial Group, Inc. (the “Company”) 

 The undersigned hereby notifies you in accordance with Section 5.09 of the Pledge Agreement, dated as of March 12, 2008 (the “Pledge
Agreement”), among the Company and you, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time, that
the undersigned elects to withdraw the $             aggregate principal amount of Separate Senior Notes delivered to the Collateral Agent on
            , 20     for remarketing pursuant to Section 5.09 of the Pledge Agreement. The undersigned hereby instructs you to return such Senior
Notes to the undersigned in accordance with the undersigned’s instructions. With this notice, the Undersigned hereby agrees to be bound by the terms and conditions of Section 5.09 of the Pledge Agreement. Capitalized terms used herein but
not defined shall have the meaning set forth in the Pledge Agreement. 
  
  

							
	 Date:
	 		 		 	
		 		 	By:	 	  

		 		 		 	Name:
		 		 		 	Title:
		 		 		 	 Signature Guarantee:
  

	  
	 		 		 	
	Name	 		 		 	
		 		 		 	  

		 		 		 	Social Security or other Taxpayer Identification Number, if any
	  
	 		 		 	
	Address	 		 		 	

  

 G-1

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