Document:

INDENTURE

 EXHIBIT 4.1 
 EXECUTION VERSION 
  

 TRANSWITCH CORPORATION 
 And 
 U.S. BANK NATIONAL ASSOCIATION 
 as Trustee 
 INDENTURE 
  

 Dated as of July 6, 2007 
  

 5.45% Convertible Notes due 2010 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1 Definitions and Other Provisions of General Application
	  	1
			
	 SECTION 1.01.
	  	 Definitions
	  	1
	 SECTION 1.02.
	  	 Other Definitions
	  	5
	 SECTION 1.03.
	  	 Compliance Certificates and Opinions
	  	6
	 SECTION 1.04.
	  	 Form of Documents Delivered to Trustee
	  	6
	 SECTION 1.05.
	  	 Acts of Holders
	  	7
	 SECTION 1.06.
	  	 Notices, Etc to Trustee and Company
	  	8
	 SECTION 1.07.
	  	 Notice to Holders; Waiver
	  	9
	 SECTION 1.08.
	  	 Effect of Headings and Table of Contents
	  	9
	 SECTION 1.09.
	  	 Successors and Assigns
	  	9
	 SECTION 1.10.
	  	 Separability Clause
	  	9
	 SECTION 1.11.
	  	 Benefits of Indenture
	  	9
	 SECTION 1.12.
	  	 Governing Law
	  	9
	 SECTION 1.13.
	  	 Legal Holidays
	  	9
	 SECTION 1.14.
	  	 Personal Immunity from Liability for Incorporators, Stockholders, Etc
	  	10
	 SECTION 1.15.
	  	 Conflict with Trust Indenture Act
	  	10
	 SECTION 1.16.
	  	 Execution in Counterparts
	  	10
		
	 ARTICLE 2 Securities Forms
	  	10
			
	 SECTION 2.01.
	  	 Forms of Securities
	  	10
	 SECTION 2.02.
	  	 Form of Trustee’s Certificate of Authentication
	  	10
	 SECTION 2.03.
	  	 Securities Issuable in Global Form
	  	10
		
	 ARTICLE 3 The Securities
	  	12
			
	 SECTION 3.01.
	  	 Title and Term
	  	12
	 SECTION 3.02.
	  	 Denominations
	  	12
	 SECTION 3.03.
	  	 Execution, Authentication, Delivery and Dating
	  	12
	 SECTION 3.04.
	  	 Registration, Registration of Transfer and Exchange
	  	12
	 SECTION 3.05.
	  	 Mutilated, Destroyed, Lost and Stolen Securities
	  	16
	 SECTION 3.06.
	  	 Payment of Interest; Interest Rights Preserved
	  	17
	 SECTION 3.07.
	  	 Persons Deemed Owners
	  	18
	 SECTION 3.08.
	  	 Cancellation
	  	18
	 SECTION 3.09.
	  	 Computation of Interest
	  	19
	 SECTION 3.10.
	  	 CUSIP Numbers
	  	19
		
	 ARTICLE 4 Remedies
	  	19
			
	 SECTION 4.01.
	  	 Events of Default
	  	19
	 SECTION 4.02.
	  	 Acceleration of Maturity; Rescission and Annulment
	  	20
	 SECTION 4.03.
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	21
	 SECTION 4.04.
	  	 Trustee May File Proofs of Claim
	  	22
	 SECTION 4.05.
	  	 Trustee May Enforce Claims Without Possession of Securities
	  	22
	 SECTION 4.06.
	  	 Application of Money Collected
	  	22
	 SECTION 4.07.
	  	 Limitation on Suits
	  	23
	 SECTION 4.08.
	  	 Unconditional Right of Holders to Receive Principal, Premium, If Any, and Interest
	  	23
	 SECTION 4.09.
	  	 Restoration of Rights and Remedies
	  	23
	 SECTION 4.10.
	  	 Rights and Remedies Cumulative
	  	23

  

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	 	  	 	  	Page
	 SECTION 4.11.
	  	 Delay or Omission Not Waiver
	  	24
	 SECTION 4.12.
	  	 Control by Holders of Securities
	  	24
	 SECTION 4.13.
	  	 Waiver of Past Defaults
	  	24
	 SECTION 4.14.
	  	 Waiver of Usury, Stay or Extension Laws
	  	24
	 SECTION 4.15.
	  	 Undertaking for Costs
	  	25
		
	 ARTICLE 5 The Trustee
	  	25
			
	 SECTION 5.01.
	  	 General
	  	25
	 SECTION 5.02.
	  	 Certain Rights of Trustee
	  	25
	 SECTION 5.03.
	  	 Individual Rights of Trustee
	  	26
	 SECTION 5.04.
	  	 Trustee’s Disclaimer
	  	26
	 SECTION 5.05.
	  	 Notice of Default
	  	27
	 SECTION 5.06.
	  	 Conflicting Interests of Trustee
	  	27
	 SECTION 5.07.
	  	 Compensation and Indemnity
	  	27
	 SECTION 5.08.
	  	 Replacement of Trustee
	  	27
	 SECTION 5.09.
	  	 Successor Trustee by Merger, Etc
	  	28
	 SECTION 5.10.
	  	 Eligibility
	  	28
	 SECTION 5.11.
	  	 Money Held in Trust
	  	28
	 SECTION 5.12.
	  	 Preferential Collection of Claims
	  	28
	 SECTION 5.13.
	  	 Trustee’s Application for Instructions from the Company; Liquidated Damages
	  	29
		
	 ARTICLE 6 Holders’ Lists And Reports By Trustee And Company
	  	29
			
	 SECTION 6.01.
	  	 Disclosure of Names and Addresses of Holders
	  	29
	 SECTION 6.02.
	  	 Reports by Trustee
	  	29
	 SECTION 6.03.
	  	 Reports by Company
	  	29
	 SECTION 6.04.
	  	 Company to Furnish Trustee Names and Addresses of Holders
	  	30
		
	 ARTICLE 7 Consolidation, Merger, Sale, Lease Or Conveyance
	  	30
			
	 SECTION 7.01.
	  	 Consolidations and Mergers of Company and Sales, Leases and Conveyances Permitted Subject to Certain Conditions
	  	30
	 SECTION 7.02.
	  	 Rights and Duties of Successor Corporation
	  	31
	 SECTION 7.03.
	  	 Officers’ Certificate and Opinion of Counsel
	  	31
		
	 ARTICLE 8 Supplemental Indentures
	  	31
			
	 SECTION 8.01.
	  	 Supplemental Indentures Without Consent of Holders
	  	31
	 SECTION 8.02.
	  	 Supplemental Indentures with Consent of Holders
	  	32
	 SECTION 8.03.
	  	 Execution of Supplemental Indenture
	  	32
	 SECTION 8.04.
	  	 Effect of Supplemental Indentures
	  	33
	 SECTION 8.05.
	  	 Conformity with Trust Indenture Act
	  	33
	 SECTION 8.06.
	  	 Reference in Securities to Supplemental Indentures
	  	33
		
	 ARTICLE 9 Covenants
	  	33
			
	 SECTION 9.01.
	  	 Payment of Principal, Premium, If Any, and Interest
	  	33
	 SECTION 9.02.
	  	 Maintenance of Office or Agency
	  	33
	 SECTION 9.03.
	  	 Money for Securities Payments to Be Held in Trust
	  	34
	 SECTION 9.04.
	  	 Existence
	  	34
	 SECTION 9.05.
	  	 Payment of Taxes and Other Claims
	  	35
	 SECTION 9.06.
	  	 No Senior Debt
	  	35
	 SECTION 9.07.
	  	 Statement as to Compliance; Notice of Default
	  	35
	 SECTION 9.08.
	  	 Waiver of Certain Covenants
	  	35
	 SECTION 9.09.
	  	 Rule 144A Information Requirement
	  	35

  

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	 	  	 	  	Page
	 ARTICLE 10 Redemption Of Securities
	  	36
			
	 SECTION 10.01.
	  	 Optional Redemption by the Company
	  	36
	 SECTION 10.02.
	  	 Election to Redeem; Notice to Trustee
	  	36
	 SECTION 10.03.
	  	 Selection by Trustee of Securities to Be Redeemed
	  	36
	 SECTION 10.04.
	  	 Notice of Redemption
	  	36
	 SECTION 10.05.
	  	 Deposit of Redemption Price
	  	37
	 SECTION 10.06.
	  	 Securities Payable on Redemption Date
	  	37
	 SECTION 10.07.
	  	 Securities Redeemed in Part
	  	38
		
	 ARTICLE 11 Repurchase At Option Of Holders Upon Change In Control
	  	38
			
	 SECTION 11.01.
	  	 Right to Require Repurchase
	  	38
	 SECTION 11.02.
	  	 Notices; Method of Exercising Repurchase Right, Etc
	  	38
	 SECTION 11.03.
	  	 Certain Definitions
	  	40
	 SECTION 11.04.
	  	 Change in Control
	  	40
		
	 ARTICLE 12 Conversion
	  	41
			
	 SECTION 12.01.
	  	 Conversion Privilege, Conversion Rate and Conversion Price
	  	41
	 SECTION 12.02.
	  	 Exercise of Conversion Privilege
	  	42
	 SECTION 12.03.
	  	 Fractions of Shares
	  	44
	 SECTION 12.04.
	  	 Adjustment of Conversion Rate
	  	44
	 SECTION 12.05.
	  	 Notice of Adjustments of Conversion Rate
	  	48
	 SECTION 12.06.
	  	 Notice of Certain Corporate Action
	  	48
	 SECTION 12.07.
	  	 Company’s Obligation Regarding Common Stock
	  	49
	 SECTION 12.08.
	  	 Taxes on Conversions
	  	49
	 SECTION 12.09.
	  	 Covenant as to Common Stock
	  	50
	 SECTION 12.10.
	  	 Cancellation of Converted Securities
	  	50
	 SECTION 12.11.
	  	 Provisions in Case of Reclassification, Consolidation, Merger or Sale of Assets
	  	50
	 SECTION 12.12.
	  	 Company’s Obligation
	  	50
		
	 SIGNATURES
	  	
		
	 EXHIBIT A—FORM OF SECURITY
	  	

  

 iii 

 INDENTURE, dated as of July 6, 2007, between TRANSWITCH CORPORATION, a Delaware corporation (the
“Company”), having its principal office at Three Enterprise Drive, Shelton, Connecticut 06484 and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States, as Trustee
hereunder (the “Trustee”). 
 RECITALS OF THE COMPANY 
 The Company has duly authorized the issue of its 5.45% Convertible Notes due 2010 (the “Securities”), and to provide for such issuance,
the Company has duly authorized the execution and delivery of this Indenture. 
 Upon qualification of this Indenture under the Trust
Indenture Act, it shall be subject to the provisions of the Trust Indenture Act that are deemed to be incorporated into this Indenture and shall, to the extent applicable, be governed by such provisions. 
 All things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 
 For and in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all the holders of the Securities, as follows: 

ARTICLE 1 
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 SECTION 1.01. Definitions. For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise
requires: 
 (1) 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 references to he or him or she or her are intended to be gender neutral; 
 (2) all
other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) the word “including” means “including without limitation,” and 
 (4)
the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 
 “$” means a dollar or other equivalent unit in such coin or currency of the United States of America as at the time shall be legal
tender for the payment of public and private debts. 
 “Act,” when used with respect to any Holder, has the meaning
specified in Section 1.05. 
 “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. 
 “Authorized Newspaper” means a newspaper, printed in the English language or in an official language of
the country of publication, customarily published on each Business Day, whether or not published on Saturdays, 

  

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Sundays or holidays, and of general circulation in each place in connection with which the term is used or in the financial community of each such place.
Whenever successive publications are required to be made in Authorized Newspapers, the successive publications may be made in the same or in different Authorized Newspapers in the same city meeting the foregoing requirements and in each case on any
Business Day. 
 “Board of Directors” means the board of directors of the Company, the executive committee of that board or
any committee of that board duly authorized to act hereunder. 
 “Board Resolution” means a copy of a resolution certified
by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in The City
of New York or a city in which the Corporate Trust Office is located or, when used with respect to any Place of Payment, such Place of Payment, are authorized or obligated by law, regulation or executive order to close. 
 “Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at
any time after execution of this instrument such Commission is not existing and performing substantially the duties now assigned to it under the Trust Indenture Act, then the body performing such duties on such date. 
 “Common Stock” means the common stock of the Company, $0.001 par value, as it exists on the date of this Indenture and any shares of any
class or classes of capital stock of the Company resulting from any reclassification or reclassifications thereof. 
 “Company” means the Person named as the “Company” in the first paragraph of this Indenture until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” shall mean such successor corporation. 
 “Company Request” and “Company
Order” mean, respectively, a written request or order signed in the name of the Company by the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Chief Financial Officer or a Vice President of the Company
and any of the foregoing or any Assistant Vice President, the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. 
 “Conversion Agent” means any Person authorized by the Company pursuant to Section 9.02 to convert Securities in accordance with
Article 12. 
 “Corporate Trust Office” means the office of the
Trustee at which, at any particular time, its corporate trust business as it relates to this Indenture shall be principally administered and as to which notice to that effect has been delivered to the Company and the Holders in accordance with the
provisions hereof, which office at the date hereof is located at U.S. Bank National Association, Corporate Trust Services, One Federal Street, 3rd Floor, Boston, MA 02110, Attention: Corporate Trust Services/ David J. Ganss. 
 “corporation” means a corporation, association, partnership, company (including limited liability company), joint-stock company or business trust. 
 “Default” means any event that is, or after notice or passage of time or both would be, an Event of Default. 
 “DTC” means The Depository Trust Company. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

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 “Holder” means the Person in whose name a Security is registered in the Security
Register. 
 “Indenture” means this instrument as originally executed or as it may from time to time be supplemented or
amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 
 “Interest Payment
Date” means, with respect to any Security, the Stated Maturity of an installment of interest on such Security. 
 “Liquidated Damages” means additional interest that may accrue on the Securities and be payable to Holders pursuant to and in accordance in each case with the terms of the Registration Rights Agreement. 
 “Maturity” means the date on which the principal of the Securities becomes due and payable as therein or herein provided, whether at the
Stated Maturity or upon conversion or by declaration of acceleration, notice of redemption, notice of option to elect repayment or otherwise. 
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board of Directors, the President or a Vice President and by any of the foregoing or the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of the Company, and delivered to the Trustee. 
 “Opinion of Counsel” means a written opinion of
counsel, who may be counsel for the Company or who may be an employee of or other counsel for the Company and who shall be reasonably satisfactory to the Trustee. 
 “Outstanding,” when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except: 
 (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 
 (ii) Securities, or portions thereof, for whose payment or redemption or repayment at the option of the Holder, money in the necessary
amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 
 (iii) Securities that have been paid pursuant to Section 3.05 or in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands
such Securities are valid obligations of the Company; and 
 (iv) Securities converted into Common Stock pursuant to or in
accordance with this Indenture; 
 provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder or are present at a meeting of Holders for quorum purposes, and for the purpose of making the calculations required by TIA
Section 313, Securities owned by the Company or any other obligor upon the Securities under a supplemental indenture entered into in accordance herewith or any Affiliate of the Company or of such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be protected in making such calculation or in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities that the Trustee
knows to be so owned shall be so disregarded. Securities so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to
such Securities and that the pledgee is not the Company or any other obligor upon the Securities under a supplemental indenture entered into in accordance herewith or any Affiliate of the Company or of such other obligor. 
  

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 “Paying Agent” means any Person (including the Company) authorized by the Company to pay
the principal of (and premium, if any) or interest (including any Liquidated Damages) on any Securities on behalf of the Company. 
 “Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision
thereof. 
 “Place of Payment” means the place or places where the principal of (and premium, if any), interest on
(including any Liquidated Damages) and the Redemption Prices and the Repurchase Price with respect to the Securities are payable as specified by Section 9.02. 
 “Predecessor Security” means, with respect to any Security, every previous Security evidencing all or a portion of the same debt as that evidenced by such Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.05 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Security. 
 “Redemption Date,” when used with respect to any Security to be redeemed, in whole or in part, means the date
fixed for such redemption by or pursuant to this Indenture. 
 “Registration Rights Agreement” means the Registration Rights
Agreement, dated as of July 6, 2007, among the Company and the initial purchasers party thereto. 
 “Regular Record
Date” for the interest payable on any Interest Payment Date on the Securities means the date specified for that purpose as contemplated by Section 3.06, whether or not a Business Day. 
 “Responsible Officer,” when used with respect to the Trustee, means any senior vice president, any vice president, any assistant vice
president, any assistant secretary, or other officer of the Trustee working in its Corporate Trust division, or any other officer of the Trustee working in its Corporate Trust Division and customarily performing functions similar to those performed
by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 
 “Rule 144A” shall mean Rule 144A as promulgated under the Securities Act. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
 “Security” has the meaning stated in the first recital of this Indenture and, more particularly, means any Security or Securities
authenticated and delivered under this Indenture. 
 “Significant Subsidiary” means any Subsidiary that is a
“significant subsidiary” (as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated under the Securities Act) of the Company. 
 “Special Record Date” for the payment of any Defaulted Interest on the Securities means a date fixed by the Trustee pursuant to Section 3.06. 
 “Stated Maturity” means the date specified in the Securities as the fixed date on which the principal of, or interest on, such
Securities is due and payable. 
 “Subsidiary” means a corporation a majority of the outstanding voting securities of which
is owned, directly or indirectly, by the Company or by one or more other Subsidiaries of the Company, or by the Company 

  

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and one or more other Subsidiaries. For the purposes of this definition, “voting securities” means shares, interests, participations or
other equivalents of corporate stock, partnership or limited liability company interests or any other participation, right or other interest in the nature of an equity interest that ordinarily have voting power for the election of directors,
managers or trustees, whether at all times or only so long as no senior class of equity interest has such voting power by reason of any contingency. 
 A “Termination of Trading” shall be deemed to occur if the Common Stock (or other common stock into which the Securities are then convertible) is neither listed for trading on a U.S. national
securities exchange nor approved for trading on an established United States system of automated dissemination of quotations of securities prices or an established over-the-counter trading market in the United States. 
 “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, and the rules and regulations promulgated
thereunder, as in force on the date this Indenture is qualified thereunder; provided, however, that in the event the Trust Indenture Act of 1939 or such rules and regulations are amended after such date, “Trust Indenture Act”
means, to the extent required by any such amendment, the Trust Indenture Act of 1939 and such rules and regulations as so amended. 
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter
“Trustee” shall mean or include each Person who is then a Trustee hereunder. 
 “United States” means the United
States of America (including the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction. 
 SECTION 1.02. Other Definitions.
  

			
	 Term
	  	Defined in
Section
	 “Average Sale Price”
	  	12.04
	 “Bankruptcy Law”
	  	4.01
	 “beneficial owner”
	  	11.03
	 “beneficial ownership”
	  	11.03
	 “Change in Control”
	  	11.04
	 “Change in Control Purchase Notice”
	  	11.02
	 “Closing Price”
	  	12.03
	 “Commencement Date”
	  	12.04
	 “Company Notice”
	  	11.02
	 “Conversion Price”
	  	12.01
	 “Conversion Rate”
	  	12.01
	 “Current Event”
	  	12.04
	 “Custodian”
	  	4.01
	 “Defaulted Interest”
	  	3.06
	 “Effective Date”
	  	12.01
	 “Event of Default”
	  	4.01
	 “Ex-Dividend Time”
	  	12.04
	 “Expiration Time”
	  	12.04
	 “Indemnities”
	  	5.07
	 “Make-Whole Premium”
	  	12.01
	 “Material Adverse Effect”
	  	9.04
	 “Non-Stock Change in Control”
	  	12.01
	 “Notice of Default”
	  	4.01

  

 5 

			
	 Term
	  	Defined in
Section
	 “Operating Adjustment”
	  	12.04
	 “Operating Adjustment Determination Date”
	  	12.04
	 “Optional Redemption”
	  	10.01
	 “Other Event”
	  	12.04
	 “Person”
	  	11.03
	 “Purchased Shares”
	  	12.04
	 “Redeemable Capital Stock”
	  	11.04
	 “Redemption Price”
	  	10.01
	 “Reference Date”
	  	12.04
	 “Repurchase Date”
	  	11.01
	 “Repurchase Price”
	  	11.01
	 “Restricted Securities”
	  	3.04
	 “Security Register”
	  	3.04
	 “Security Registrar”
	  	3.04
	 “September 30, 2008 Trailing Twelve Month Net Income”
	  	12.04
	 “Share Price”
	  	12.01
	 “Time of Determination”
	  	12.04
	 “Trading Day”
	  	12.03
	 “Volume-Weighted Average Price”
	  	12.04

 SECTION 1.03. Compliance Certificates and Opinions. Upon any application or
request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture
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 Indenture 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 Indenture shall include: 
 (a) a statement that each individual signing such certificate or opinion has read such condition or covenant and the definitions herein
relating thereto; 
 (b) a brief statement as to the nature and scope of the examination or investigation upon which the
statements or opinions contained in such certificate or opinion are based; 
 (c) a statement that, in the opinion of each
such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such condition or covenant has been complied with; and 
 (d) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 
 SECTION 1.04. Form of Documents Delivered to Trustee. 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 as 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 an Opinion of Counsel, or a
certificate or representations by counsel, unless such officer knows, or in the 

  

 6 

 
exercise of reasonable care should know, that the opinion, certificate or representations with respect to the matters upon which such certificate or opinion
is based are erroneous. Any such Opinion of Counsel or certificate or representations may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that
the information as to such factual matters is in the possession of the Company, unless such counsel knows that the certificate or opinion or representations as 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 Indenture, they may, but need not, be consolidated and form one instrument. 
 SECTION 1.05. Acts of
Holders. 
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this
Indenture to be given or taken by Holders of the Outstanding Securities may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agents duly appointed in writing. Except as
herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee 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, or of
the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided in this
Section 1.05. 
 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness to such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the
execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such
instrument or writing, or the authority of the Person executing the same, may also be proved in any other reasonable manner which the Trustee deems sufficient. 
 (c) The ownership of the Securities shall be proved by the Security Register. 
 (d)(i) If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company may, at its option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to effect such request, demand, authorization, direction, notice, consent, waiver or other Act, but the
Company shall have no obligation to do so; provided that the Company shall not be entitled to set a record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice, declaration,
request or direction referred to in clause 1.05(d)(iii) below. Notwithstanding TIA Section 316(c), such record date shall be the record date specified in or pursuant to such Board Resolution, which shall be a date not earlier than the date 30
days prior to the first solicitation of Holders generally in connection therewith and not later than the date such solicitation is completed. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or
other Act may be effected before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of
Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date;
provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than eleven months after the record
date. 
  

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 (ii) Subject to clause 1.05(d)(iii) below, in the absence of any such record date
fixed by the Company, regardless as to whether any solicitation of the Holders is occurring on behalf of the Company or any Holder, the Trustee may, at its option, fix in advance a record date for the determination of such Holders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Trustee shall have no obligation to do so. Any such record date shall be a date not more than 30 days prior to the first solicitation of Holders generally
in connection therewith and no later than the date of such solicitation. 
 (iii) The Trustee may set any day as a record
date for the purpose of determining the Holders of Outstanding Securities entitled to join in the giving or making of (A) any notice of default, (B) any declaration of acceleration referred to in Section 4.02, (C) any request to
institute proceedings referred to in Section 4.07(b), or (D) any direction referred to in Section 4.12, and may also set an expiration date by which the relevant Act must be taken. If any record date is set pursuant to this paragraph,
the Holders of Outstanding Securities on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such record date; provided that no
such Act shall be effective hereunder unless taken on or prior to any applicable expiration date by Holders of the requisite principal amount of Outstanding Securities on such record date. Nothing in this paragraph shall be construed to prevent the
Trustee from setting a new record date for any action (whereupon the record date previously set shall automatically and without any action by any Person be canceled and of no effect), nor shall anything in this paragraph be construed to render
ineffective any Act taken by Holders of the requisite principal amount of Outstanding Securities on the date such Act is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause
notice of such record date, the proposed Act by Holders and the applicable expiration date to be given to the Company in writing and to each Holder of Outstanding Securities in the manner set forth in Section 1.07. 
 (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every
future Holder of the same Security and the Holder of every Security 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 Trustee, any Security
Registrar, any Paying Agent, any Conversion Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
 SECTION 1.06. Notices, Etc to Trustee and Company. 
 Any request, demand, authorization,
direction, notice, consent, waiver or other Act of Holders or other notice or communication provided or permitted by this Indenture to be made upon, given or furnished to, or filed with: 
 (a) the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee, delivered in person, mailed by first class mail, postage prepaid, or sent by facsimile or overnight courier, at its address as follows: if mailed by first class mail, to U.S. Bank National Association, Corporate Trust
Services, P.O. Box 960778, Boston, MA 02102-0778, Attention: TranSwitch Corporation 5.45% Convertible Notes due 2010, or if sent by other means to U.S. Bank National Association, Corporate Trust Services, One Federal Street, 3rd Floor, Boston, MA
02110, Attention: Corporate Trust Services/ David J. Ganss, Attention: TranSwitch Corporation 5.45% Convertible Notes due 2010 (facsimile: 617-603-6667), or to such other address or facsimile number as the Trustee may designate by written notice
from time to time; provided that notices or other communications to the Trustee shall only be deemed given when actually received by the Trustee, 
 (b) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and delivered in person, mailed by first class mail, postage
prepaid, or sent by facsimile or overnight courier, to the Company addressed to it at the address of its principal office specified in the first paragraph of this Indenture; provided that the Company may, by 

  

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notice furnished in writing to the Trustee, designate additional or different addresses for subsequent notices or communications by the Company; and
further provided that notices or other communications to the Company shall only be deemed given when actually received by the Company. 
 SECTION 1.07. Notice to Holders; Waiver. Where this Indenture provides for notice of any event to Holders by the Company or the Trustee, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each such Holder affected by such event, at his 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. Such notice shall be deemed to have been given when such notice is mailed. 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 given as provided herein. Any notice mailed to a Holder in the manner herein prescribed shall be conclusively deemed to have been received by such Holder,
whether or not such Holder actually receives such notice. 
 If by reason of the suspension of or irregularities in regular mail service or
by reason of any other cause it shall be impracticable to give such notice by mail, then such notification to Holders as shall be made with the approval of the Trustee shall constitute a sufficient notification to such Holders for every purpose
hereunder. 
 Any request, demand, authorization, direction, notice, consent, waiver or other Act required or permitted under this Indenture
shall be in the English language, except that any published notice may be in an official language of the country of publication. 
 Where
this Indenture 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 Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
 SECTION 1.08. 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 1.09. Successors and Assigns. All covenants and agreements in this Indenture by the Company shall bind its
successors and assigns, whether so expressed or not. 
 SECTION 1.10. Separability Clause. In case any provision in this
Indenture or in any Security shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 1.11. Benefits of Indenture. Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other
than the parties hereto, any Security Registrar, any Paying Agent, any Conversion Agent and their successors hereunder and the Holders any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 SECTION 1.12. Governing Law. This Indenture and the Securities shall be governed by and construed in accordance with the law of the
State of New York without regard to conflict of laws principles. 
 SECTION 1.13. Legal Holidays. In any case where any
Interest Payment Date, Redemption Date, Repurchase Date, Stated Maturity or Maturity of any Security or the last date on which a Holder has the right to convert his Securities shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or any Security), payment of Redemption Price, Repurchase Price, interest (including any Liquidated Damages) or principal (and premium, if any), or conversion of the Securities, need not be made
at 

  

 9 

 
such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on
the Interest Payment Date, Redemption Date, Repurchase Date or at the Stated Maturity or Maturity or on such last day for conversion; provided that no interest shall accrue on the amount so payable for the period from and after such Interest Payment
Date, Redemption Date, Repurchase Date, Stated Maturity or Maturity or on such last day for conversion, as the case may be. 
 SECTION 1.14. Personal Immunity from Liability for Incorporators, Stockholders, Etc. No recourse shall be had for the payment of the principal of or premium, if any, or interest (including any Liquidated Damages), if any, on any
Security, or for any claim based thereon, or otherwise in respect of any Security, or based on or in respect of this Indenture or any indenture supplemental hereto, against any incorporator, or against any past, present or future stockholder,
director or officer, as such, of the Company or of any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being expressly waived
and released as a condition of, and as consideration for, the execution of this Indenture and the issue of Securities. 
 SECTION 1.15.
Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with a provision of the TIA that is required under such Act to be a part of and govern this Indenture, the latter provision shall control. If any
provision of this Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be. To the extent that
any provision of a Security conflicts with a provision in this Indenture, the provision of this Indenture shall control. 
 SECTION 1.16. Execution in Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

 ARTICLE 2 
 SECURITIES FORMS 
 SECTION 2.01. Forms of Securities. The Securities shall be
in substantially the form of Exhibit A hereto, and shall have notations, legends or endorsements required by law, stock exchange rule or usage or as otherwise indicated in Exhibit A hereto. 
 SECTION 2.02. Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of authentication shall be in
substantially the following form: 
 This is one of the Securities described in the within-mentioned Indenture. 
  

									
	DATED:	 		 	U.S. BANK NATIONAL ASSOCIATION
		 		 	 as Trustee

				
		 		 	By:  	 	  
		 		 		 		 	Authorized Signatory

 SECTION 2.03. Securities Issuable in Global Form. Except as otherwise provided in
this Section 2.03 or in Section 3.04, the Securities shall be issuable only in global form and deposited with the Trustee, at its Corporate Trust Office (or such other location as it may determine from time to time for such purpose), as
custodian for DTC or the nominees thereof, and any such Security shall represent such of the Outstanding Securities as shall be set forth in the books and records of the Trustee and may provide that it shall represent the aggregate amount of
Outstanding Securities from time to time as adjusted in the books and records of the Trustee, and that the aggregate amount of Outstanding Securities represented thereby may from time to time be increased or decreased to reflect exchanges.

  

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 Notwithstanding anything to the contrary contained herein, each of the Company’s and any
Holder’s obligations or exercise of any right or procedure described herein shall be made in accordance with and subject to the procedures of the Trustee and the depository or the nominees thereof. Members of, or participants in, the depositary
(“Agent Members”) shall have no rights under this Indenture with respect to any Note in global form held on their behalf by the depositary or by the Trustee as the custodian of the depositary or under such Note in global form, and
the depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of such Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the depositary or impair, as between the depositary and its Agent Members, the operation of customary
practices of such depositary governing the exercise of the rights of a holder of a beneficial interest in any Note held in global form. Any adjustment of the aggregate amount of Outstanding Securities represented by a Security in global form to
reflect the amount, or any increase or decrease in the amount, of Outstanding Securities represented thereby shall be made by the Trustee in such manner and upon instructions given by such Person or Persons as shall be specified therein or in the
Company Order to be delivered to the Trustee pursuant to Section 3.03. Subject to the provisions of Section 3.03, the Trustee shall, if required, deliver and redeliver any Security in global form in the manner and upon instructions given
by the Person or Persons specified therein or in the applicable Company Order. If a Company Order pursuant to Section 3.03 has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or
redelivery of a Security in global form shall be in writing but need not comply with Section 1.03 and need not be accompanied by an Opinion of Counsel. 
 The provisions of the last sentence of Section 3.03 shall apply to any Security represented by a Security in global form if such Security was never issued and sold by the Company and the Company delivers to the
Trustee the Security in global form together with written instructions (which need not comply with Section 1.03 and need not be accompanied by an Opinion of Counsel) with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence of Section 3.03. 
 Notwithstanding the provisions of
Section 3.07, payment of principal of and any premium and interest (including any Liquidated Damages) on any Security in global form shall be made to the Person or Persons specified in such Security. 
 All Securities issued in global form shall bear the following legend: 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A
SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. 
  

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 ARTICLE 3 
 THE SECURITIES 
 SECTION 3.01. Title and Term. The
Securities shall be and are hereby authorized to be designated as “5.45% Convertible Notes due 2010.” The Securities are limited in aggregate principal amount to $25,013,000. The Securities shall mature and the principal thereof shall be
due and payable, together with all accrued and unpaid interest thereon, on September 30, 2010. The Securities shall be convertible into shares of Common Stock as set forth herein. The Securities are entitled to the payment of Liquidated Damages
as set forth herein and in the Registration Rights Agreement. 
 SECTION 3.02. Denominations. The Securities shall be
issuable in denominations of $1,000 and any integral multiple thereof. 
 SECTION 3.03. Execution, Authentication, Delivery and
Dating. The Securities shall be executed on behalf of the Company by the Chief Executive Officer, the Chief Financial Officer, the Treasurer, the President or a Vice President of the Company. The signature of any of these individuals on the
Securities may be a manual or facsimile signature of such authorized officer and may be imprinted or otherwise reproduced on the Securities. 
 Securities bearing the manual or facsimile signatures of an individual who was at any time the proper officer of the Company shall bind the Company, notwithstanding that such individual shall have ceased to hold such office prior to the
authentication and delivery of such Securities or did not hold such office at the date of such Securities. 
 At any time and from time to
time after the execution and delivery of this Indenture, the Company may deliver Securities, executed by the Company, to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver such Securities. 
 Each Security shall be dated the date of its
authentication. 
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there
appears on such Security a certificate of authentication substantially in the form provided for in Section 2.02, duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 3.08 together with a written statement (which need not comply with
Section 1.03 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture, such Security shall be deemed not to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this Indenture. 
 SECTION 3.04. Registration, Registration of
Transfer and Exchange.
 (a) The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any
office or agency of the Company in a Place of Payment a register for the Securities (the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of
the Securities and of transfers of the Securities. The Security Register shall be in written form or any other form capable of being converted into written form within a reasonable time. The Trustee, at its Corporate Trust Office, is hereby
appointed “Security Registrar” for the purpose of registering the 

  

 12 

 
Securities and transfers of the Securities on such Security Register as herein provided. In the event that the Trustee shall cease to be Security Registrar,
it shall have the right to examine the Security Register at all reasonable times. 
 Subject to the provisions of this Section 3.04 and
except as otherwise provided in any Security, including any legend thereon, upon surrender for registration of transfer of any Security at any office or agency of the Company in a Place of Payment, the Company shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities, of any authorized denominations and of a like aggregate principal amount, bearing a number not contemporaneously outstanding, and
containing identical terms and provisions. 
 Subject to the provisions of this Section 3.04, at the option of the Holder, the
Securities may be exchanged for other Securities, of any authorized denomination or denominations and of a like aggregate principal amount, containing identical terms and provisions, upon surrender of the Securities to be exchanged at any such
office or agency. Whenever any such Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the Holder making the exchange is entitled to receive. 
 Notwithstanding the foregoing, any global Security shall be exchangeable only as provided in this paragraph. The depositary for the global Securities
shall be DTC, and the global Securities may be transferred, in whole but not in part, only to a nominee of DTC, or by a nominee of DTC to DTC, or to a successor to DTC for such global Security selected or approved by the Company or to a nominee of
such successor to DTC. If at any time DTC notifies the Company that it is unwilling or unable to continue as depositary for the applicable global Security or Securities or if at any time DTC ceases to be a clearing agency registered under the
Exchange Act, if so required by applicable law or regulation, the Company shall appoint a successor depositary with respect to such global Security or Securities. If (x) a successor depositary for such global Security or Securities is not
appointed by the Company within 90 days after the Company receives such notice or becomes aware of such unwillingness, inability or ineligibility, or (y) a Default or an Event of Default has occurred and is continuing, or (z) the Company,
in its sole discretion, executes and delivers to the Trustee and the Security Registrar an Officers’ Certificate stating that definitive Securities may be issued in exchange for interests in a global Security or Securities, then the Company
shall execute, and the Trustee shall authenticate and deliver, definitive Securities of like rank, tenor and terms in definitive form, registered in such names as DTC shall direct and bearing such legends as the Company shall specify in writing, in
an aggregate principal amount equal to the principal amount of such global Security or Securities. If a Security is issued in exchange for any portion of a global Security after the close of business at the office or agency where such exchange
occurs on (i) any Regular Record Date and before the opening of business at such office or agency on the relevant Interest Payment Date or (ii) any Special Record Date and before the opening of business at such office or agency on the
related proposed date for payment of Defaulted Interest, interest or Defaulted Interest, as the case may be, shall not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of such Security, but will
be payable on such Interest Payment Date or proposed date for payment, as the case may be, only to the Person to whom interest in respect of such portion of such global Security is payable in accordance with the provisions of this Indenture.

 All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange. 
 Every Security presented or surrendered for registration of transfer or for exchange or redemption shall (if so required by the Company or the Security Registrar) be duly endorsed, or be accompanied by a written
instrument of transfer, in form satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. 
  

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 No service charge shall be made to a Holder for any registration of transfer or exchange of Securities,
but the Company may require payment 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 Securities, other than exchanges pursuant to Section 10.07
or 11.02(e) not involving any transfer. 
 The Company or the Trustee, as applicable, shall not be required (i) to issue, register the
transfer of or exchange any Security during a period beginning at the opening of business 15 days before the date of the mailing of a notice of redemption with respect to the Securities to be redeemed under Section 10.03 and ending at the close
of business on the day of the mailing of the relevant notice of redemption, or (ii) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except, in the case of any Security to be redeemed in part,
the portion thereof not to be redeemed, or (iii) to issue, register the transfer of or exchange any Security that has been surrendered for repayment at the option of the Holder, except the portion, if any, of such Security not to be so repaid.

 (b) Every Security that bears or is required under this Section 3.04(b) to bear the legend set forth in this
Section 3.04(b) (together with any Common Stock issued upon conversion or exchange of the Securities and required to bear the legend set forth in Section 3.04(c), collectively, the “Restricted Securities”) shall be subject
to the restrictions on transfer set forth in this Section 3.04(b) (including one of the legends set forth below), unless such restrictions on transfer shall be waived by written consent of the Company, and the holder of each such Restricted
Security, by such holder’s acceptance thereof, agrees to be bound by all such restrictions on transfer. As used in Sections 3.04(b) and 3.04(c), the term “transfer” encompasses any sale, pledge, transfer or other disposition
whatsoever of any Restricted Security. Upon the effectiveness of a filed registration statement covering the Securities, the Company shall deliver an Officers’ Certificate to the Trustee in a form reasonably satisfactory to the Trustee
informing the Trustee of the effectiveness of such registration and instructing the Trustee regarding the issuance and delivery of unlegended Securities. 
 Until two years after the original issuance date of any Security, any certificate evidencing such Security (and all securities issued in exchange therefor or substitution thereof, other than Common Stock, if any,
issued upon conversion thereof, which shall bear the legend set forth in Section 3.04(c), if applicable) shall bear a legend in substantially the following form (unless such Securities have been transferred pursuant to a registration statement
that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer), or pursuant to the exemption from registration provided by Rule 144 under the Securities Act (as evidenced by such
certifications or other information as the Company may reasonably require), with instruction to remove the legend having been given to the Trustee by the Company in the form of an Officers’ Certificate, or unless otherwise agreed by the Company
in writing, with notice thereof to the Trustee in the form of an Officers’ Certificate): 
 THE SECURITY EVIDENCED HEREBY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER
(1) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THE SECURITY EVIDENCED HEREBY RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OR EXCHANGE OF SUCH SECURITY
EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT (IF AVAILABLE), (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION, OR (E) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF
SUCH TRANSFER); AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THE SECURITY EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(E) ABOVE) A 

  

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NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THE SECURITY EVIDENCED HEREBY WITHIN TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF SUCH SECURITY (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(D) ABOVE), THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS CERTIFICATE TO U.S. BANK NATIONAL
ASSOCIATION, AS TRUSTEE. IF THE PROPOSED TRANSFER IS PURSUANT TO CLAUSE 2(C) OR 2(D) ABOVE, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, SUCH CERTIFICATIONS OR OTHER INFORMATION (OR, IN THE CASE OF
A TRANSFER PURSUANT TO CLAUSE 2(D), SUCH LEGAL OPINIONS) AS THE COMPANY MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THE SECURITY EVIDENCED HEREBY PURSUANT TO CLAUSE 2(C) OR 2(E) ABOVE OR THE EXPIRATION OF TWO YEARS FROM THE ORIGINAL ISSUANCE OF THE SECURITY EVIDENCED HEREBY.

 Any Security (or Security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired or
terminated in accordance with their terms may, upon surrender of such Security for exchange to the Security Registrar in accordance with the provisions of this Section 3.04, be exchanged for a new Security or Securities, of like tenor and
aggregate principal amount, which shall not bear the restrictive legend required by this Section 3.04(b). 
 At such time as all
interests in the global Security have been redeemed, converted, canceled, repurchased or transferred, the global Security shall be, upon receipt thereof, canceled by the Trustee in accordance with standing procedures and instructions existing
between the depositary and the Custodian. 
 (c) Until two years after the original issuance date of any Security, any stock
certificate representing Common Stock issued upon conversion or exchange of such Security shall bear a legend in substantially the following form (unless such Common Stock has been or is being transferred or sold pursuant to the exemption from
registration provided by Rule 144 under the Securities Act (as evidenced by such certifications or other information as the Company may require), with written instruction to remove the legend having been given by the Company to its transfer agent,
or pursuant to a registration statement that has been declared effective under the Securities Act, and which continues to be effective at the time of such transfer, or such Common Stock has been issued upon conversion or exchange of Securities that
have been transferred pursuant to a registration statement that has been declared effective under the Securities Act, or unless otherwise agreed by the Company with written notice thereof to the Trustee (in the form of an Officers’ Certificate)
and any transfer agent for the Common Stock): 
 THE COMMON STOCK EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. THE HOLDER HEREOF AGREES THAT UNTIL THE EXPIRATION OF TWO YEARS AFTER THE ORIGINAL ISSUANCE OF
THE SECURITY UPON THE CONVERSION OR EXCHANGE OF WHICH THE COMMON STOCK EVIDENCED HEREBY WAS ISSUED, (1) IT WILL NOT RESELL OR OTHERWISE TRANSFER THE COMMON STOCK EVIDENCED HEREBY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF,
(B) IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, (D) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION OR (E) IN ACCORDANCE WITH A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT AND THAT CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER; (2) PRIOR TO ANY SUCH TRANSFER (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 1(E) ABOVE), IT WILL FURNISH TO THE COMPANY’S TRANSFER AGENT, SUCH
CERTIFICATIONS AND OTHER INFORMATION (OR, 

  

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IN THE CASE OF A TRANSFER PURSUANT TO CLAUSE 1(D), SUCH LEGAL OPINIONS) AS THE COMPANY MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (3) IT WILL DELIVER TO EACH PERSON TO WHOM THE COMMON STOCK EVIDENCED HEREBY IS TRANSFERRED (OTHER THAN A TRANSFER
PURSUANT TO CLAUSE 1(E) ABOVE) A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THE COMMON STOCK EVIDENCED HEREBY PURSUANT TO CLAUSE 1(C) OR 1(E) ABOVE OR THE EXPIRATION OF TWO
YEARS FROM THE ORIGINAL ISSUANCE OF THE SECURITY UPON THE CONVERSION OR EXCHANGE OF WHICH THE COMMON STOCK EVIDENCED HEREBY WAS ISSUED. 
 Any such Common Stock as to which such restrictions on transfer shall have expired or terminated in accordance with their terms may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with
the procedures of the transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like aggregate number of shares of Common Stock, which shall not bear the restrictive legend required by this Section 3.04(c).

 (d) Any Security or Common Stock issued upon the conversion or exchange of a Security that, prior to the expiration of the
holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), is purchased or owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate unless registered
under the Securities Act or resold pursuant to an exemption from the registration requirements of the Securities Act in a transaction that results in such Securities or Common Stock, as the case may be, no longer being “restricted
securities” (as defined under Rule 144). 
 (e) Notwithstanding any provision of Section 3.04 to the contrary, in
the event Rule 144(k) as promulgated under the Securities Act (or any successor rule) is amended to change the two-year period under Rule 144(k) (or the corresponding period under any successor rule), from and after receipt by the Trustee of the
Officers’ Certificate and Opinion of Counsel provided for in this Section 3.04(e), (i) each reference in Section 3.04(b) to “two years” and in the restrictive legend set forth in such paragraph to “TWO YEARS”
shall be deemed for all purposes hereof to be references to such changed period, (ii) each reference in Section 3.04(c) to “two years” and in the restrictive legend set forth in such paragraph to “TWO YEARS” shall be
deemed for all purposes hereof to be references to such changed period and (iii) all corresponding references in the Securities and the restrictive legends thereon shall be deemed for all purposes hereof to be references to such changed period,
provided that such changes shall not become effective if they are otherwise prohibited by, or would otherwise cause a violation of, the then-applicable federal securities laws. As soon as practicable after the Company has knowledge of the
effectiveness of any such amendment to change the two-year period under Rule 144(k) (or the corresponding period under any successor rule), unless such changes would otherwise be prohibited by, or would otherwise cause a violation of, the
then-applicable federal securities law, the Company shall provide to the Trustee an Officers’ Certificate and Opinion of Counsel informing the Trustee of the effectiveness of such amendment and the effectiveness of the foregoing changes to
Sections 3.04(b) and 3.04(c) and the Securities. The provisions of this Section 3.04(e) shall not be effective until such time as the Opinion of Counsel and Officers’ Certificate have been received by the Trustee hereunder. This
Section 3.04(e) shall apply to successive amendments to Rule 144(k) (or any successor rule) changing the holding period thereunder. 
 SECTION 3.05. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered to the Trustee or the Company, together with such security or indemnity as may be required by the Company or the
Trustee to save each of them or any agent of either of them harmless, the Company shall, at the relevant Holder’s expense, execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same principal amount,
containing identical terms and provisions and bearing a number not contemporaneously outstanding. 
  

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 If there shall be delivered to the Company and to the Trustee (i) evidence to their satisfaction of
the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such
Security has been acquired by a bona fide purchaser, the Company, at the relevant Holder’s expense, shall execute, and upon the Company’s request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same principal amount, containing identical terms and provisions and bearing a number not contemporaneously outstanding, appertaining to such destroyed, lost or stolen Security. 
 Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
 Upon the issuance of any
new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith. 
 Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen Security,
shall constitute an original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities duly issued hereunder. 
 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 Securities. 
 SECTION 3.06. Payment of Interest; Interest Rights Preserved. Interest on any Security (including any Liquidated Damages) that is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest at the office or agency of the Company maintained for
such purpose pursuant to Section 9.02; provided, however, that each installment of interest (including any Liquidated Damages) on any Security may at the Company’s option be paid by (i) mailing a check for such interest, payable to or
upon the written order of the Person entitled thereto pursuant to Section 3.07, to the address of such Person as it appears on the Security Register or (ii) if the Trustee shall have received written bank wire instructions prior to the
Regular Record Date for such payment, transfer to an account maintained by the payee located inside the United States; provided, however, that payments to DTC shall be made by wire transfer of immediately available funds to the account of DTC or its
nominee. The term “Regular Record Date” with respect to any Interest Payment Date shall mean the March 15 or September 15 preceding March 31 or September 30, respectively. 
 Any interest (including any Liquidated Damages) on any Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment
Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered Holder thereof on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the
Company, at its election in each case, as provided in clause 3.06(a) or 3.06(b) below: 
 (a) The Company may elect to make
payment of any Defaulted Interest to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be
fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the date of the proposed payment (which shall not be less than 30 days after such notice is
received by the Trustee) and at the same time the Company shall deposit with the Trustee an amount of 

  

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money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such
deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Company shall fix a Special Record
Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment. The Company shall promptly notify the Trustee of such Special Record Date and, in the name and
at the expense of the Company, the Trustee shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities at his address as it
appears in the Security Register not less than 10 days prior to such Special Record Date. The Trustee may, in its discretion, in the name and at the expense of the Company, cause a similar notice to be published at least once in an Authorized
Newspaper in each Place of Payment, but such publications shall not be a condition precedent to the establishment of such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been
mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the Securities (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable
pursuant to the following clause (b). 
 (b) The Company may make payment of any Defaulted Interest on the Securities in
any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 
 Subject to the foregoing
provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by
such other Security. 
 SECTION 3.07. Persons Deemed Owners. Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any),
and (subject to Sections 3.04 and 3.06) interest on, such Security and for all other purposes whatsoever, whether or not such Security is overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary. 
 None of the Company, the Trustee, any Paying Agent or the Security Registrar shall have any
responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Security in global form or for maintaining, supervising or reviewing any records relating to such beneficial
ownership interests. 
 Notwithstanding the foregoing, with respect to any global Security, nothing herein shall prevent the Company, the
Trustee, or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by any depositary, as a Holder, with respect to such global Security or impair, as between such depositary
and owners of beneficial interests in such global Security, the operation of customary practices governing the exercise of the rights of such depositary (or its nominee) as a Holder of such global Security. 
 SECTION 3.08. Cancellation. All Securities surrendered for payment, redemption, repayment at the option of the Holder or registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such Securities surrendered directly to the Trustee for any such purpose shall be promptly canceled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation 

  

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any Securities previously authenticated hereunder that the Company has not issued and sold, and all Securities so delivered shall be promptly canceled by the
Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are surrendered to the Trustee
for cancellation. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. Canceled Securities held by the Trustee shall be destroyed by
the Trustee and the Trustee shall deliver a certificate of such destruction to the Company, unless by a Company Order the Company directs their return to it. 
 SECTION 3.09. Computation of Interest. Interest (including any Liquidated Damages) on the Securities shall be computed on the basis of a 360-day year consisting of twelve 30-day months. 
 SECTION 3.10. CUSIP Numbers. The Company in issuing the Securities shall use “CUSIP” numbers, and the Trustee shall use CUSIP
numbers in notices of redemption as a convenience to Holders; provided however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of
a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the
Trustee of any change in the CUSIP numbers applicable to the Securities. 
 ARTICLE 4 
 REMEDIES 
 SECTION 4.01. Events of Default. “Event of Default,” wherever used herein with respect to the Securities, means any one of the following events (whatever the reason for such Event of Default and whether or
not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 
 (a) default in the payment of any interest (including any Liquidated Damages) upon any Security, when such interest becomes due and
payable, and continuance of such default for a period of 30 days; or 
 (b) default in the payment of (i) the principal
of (or premium, if any, on) any Security when it becomes due and payable at its Maturity, or (ii) the Redemption Price with respect to any Security when it becomes due and payable; or 
 (c) default in the payment of the Repurchase Price in respect of any Security on the Repurchase Date therefor (whether or not a Person
other than the Company has offered to repurchase Outstanding Securities as contemplated by Section 11.02(k)); or 
 (d)
failure by the Company to give the Company Notice in accordance with Section 11.02(a) to all Holders of Outstanding Securities and to the Trustee; or 
 (e) failure by the Company to deliver shares of Common Stock (together with cash in lieu of fractional shares or with respect to the Make-Whole Premium, if any) when such Common Stock (or cash in lieu of fractional
shares or with respect to the Make-Whole Premium, if any) is required to be delivered following conversion of a Security and continuation of such default for a period of 10 days; or 
 (f) default in the performance, or breach, of any covenant or warranty of the Company in this Indenture with respect to any Security
(other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with) and continuance of such default or breach for a period of 60 days after there has been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities a written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a “Notice of Default” hereunder; or 
  

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 (g) a default under any bonds, debentures, notes or other evidences of indebtedness for
money borrowed of the Company or under any mortgages, indentures or instruments under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company, whether such indebtedness now exists or
shall hereafter be created, which indebtedness, individually or in the aggregate, has a principal amount outstanding in excess of $10,000,000, which default shall have resulted in such indebtedness becoming or being declared due and payable prior to
the date on which it would otherwise have become due and payable, without such indebtedness having been discharged, or such acceleration having been rescinded or annulled, within a period of 60 days after there shall have been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Securities then Outstanding, a written notice specifying such default and requiring the Company to cause
such indebtedness to be discharged or cause such acceleration to be rescinded or annulled and stating that such notice is a “Notice of Default” hereunder (unless such default has been cured or waived); or 
 (h) the Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 
 (i) commences a voluntary case, 
 (ii) consents to the entry of an order for relief against it in an involuntary case, 
 (iii)
consents to the appointment of a Custodian of it or for all or substantially all of its property, or 
 (iv) makes a general
assignment for the benefit of its creditors; 
 (i) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: 
 (v) is for relief against the Company or any Significant Subsidiary in an involuntary case,

 (vi) appoints a Custodian of the Company or any Significant Subsidiary or for all or substantially all of the property of
any of them, or 
 (vii) orders the winding up or liquidation of the Company or any Significant Subsidiary, 
 and the order or decree remains unstayed and in effect for 60 days; or 
 (j) the Company shall fail to timely file its quarterly report on Form 10-Q for the period ending September 30, 2008 or its annual
report on Form 10-K for the year ended December 31, 2007, or the net income amounts disclosed for the four consecutive fiscal quarters ending immediately prior to October 1, 2008 in such reports, as filed with the SEC, shall not have been
determined in accordance with GAAP, consistently applied or shall not fairly present the Company’s results of operation for any such quarter. 
 As used in this Section 4.01 only, the term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors; and the term “Custodian” means any receiver,
trustee, assignee, liquidator or other similar official under any Bankruptcy Law. 
 SECTION 4.02. Acceleration of Maturity;
Rescission and Annulment. Subject to the immediately succeeding paragraph, if an Event of Default with respect to Securities at the time Outstanding occurs and is continuing, then and in every such case the Trustee, or the Holders of not
less than 25% in principal amount of the Outstanding Securities, may declare the principal of all the Securities, and accrued interest thereon to the date of such declaration, to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by the Holders), and upon any such declaration such principal shall become immediately due and payable. If an Event of Default specified in Section 4.01(h) or Section 4.01(i) occurs, the principal of, and
accrued interest on, all the Securities shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 
  

 20 

 At any time after such a declaration of acceleration with respect to the Securities has been made and
before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter provided in this Article, the Holders of a majority in principal amount of the Outstanding Securities, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if: 
 (a) the Company has paid or deposited with the
Trustee a sum sufficient to pay: 
 (i) all overdue installments of interest on all Outstanding Securities, 
 (ii) the principal of (and premium, if any, on) any Outstanding Securities that have become due otherwise than by reason of such
declaration of acceleration and interest thereon at the rate or rates borne by or provided for in such Securities, 
 (iii) to
the extent that payment of such interest is lawful, interest upon overdue installments of interest at the rate or rates borne by or provided for in such Securities, and 
 (iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel; and 
 (b) all Events of Default with respect to the Securities, other than the nonpayment of
the principal of (or premium, if any) or interest on Securities which have become due solely by reason of such declaration of acceleration, have been cured or waived as provided in Section 4.13. 
 No such rescission shall affect any subsequent Default or Event of Default or impair any right in respect thereof. 
 SECTION 4.03. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company covenants that if: 
 (a) default is made in the payment of any installment of interest (including any Liquidated Damages) on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or 
 (b) default is made in the payment of the
principal of (or premium, if any, on) any Security at its Maturity, 
 then the Company shall, upon demand of the Trustee, pay to the Trustee,
for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal (and premium, if any) and interest (including any Liquidated Damages), with interest upon any overdue principal (and premium,
if any) and, to the extent that payment of such interest shall be legally enforceable, upon any overdue installments of interest (including any Liquidated Damages), at the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon such Securities under a supplemental
indenture entered into in accordance herewith and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other such obligor upon such Securities, wherever situated. 
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy. 
  

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 SECTION 4.04. Trustee May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities under a supplemental indenture entered into in
accordance herewith or the property of the Company or of such other obligor or the Company’s, or any such other obligor’s, creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as
therein expressed or by acceleration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal, premium, if any, or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise: 
 (a) to file and prove a claim for the whole amount, or such lesser amount as may be
provided for in the Securities, of principal (and premium, if any) and interest, owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and 
 (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby directed
by each Holder to make such payments to the Trustee, and in the event that the Trustee shall request or consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee and any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any predecessor Trustee under Section 5.07. 
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Security,
any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a Security in any such proceeding; provided
however, that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other similar committee. 
 SECTION 4.05. Trustee May Enforce Claims Without Possession of Securities. All rights of action and claims under this Indenture or any
of the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its
own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been recovered. 
 SECTION 4.06. Application of Money
Collected. Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if
any) or interest, upon presentation of the Securities, or both, as the case may be, and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under Section 5.07; 
 SECOND: To the payment of the amounts then due and unpaid upon the Securities for principal (and premium, if any) and interest (including Liquidated
Damages, if any) payable, and any other amounts due and payable under this Indenture or under the Securities (including with respect to the Make-Whole Premium, if any), in respect of which or for the benefit of which such money has been collected,
ratably, without preference or 

  

 22 

 
priority of any kind, according to the aggregate amounts due and payable on such Securities for principal (and premium, if any), interest (including
Liquidated Damages, if any) and any Make-Whole Premium, respectively; and 
 THIRD: To the payment of the remainder, if any, to the Company.

 SECTION 4.07. Limitation on Suits. No Holder of any Security shall have any right to institute any proceeding, judicial
or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
 (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities; 
 (b) the Holders of not less than 25% in principal amount of the Outstanding Securities shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (c) such Holder or Holders
have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; 
 (d) the Trustee for 60 days after its receipt of such notice, request and offer of security or indemnity has failed to institute any such
proceeding; and 
 (e) no direction inconsistent with such written request has been given to the Trustee during such 60-day
period by the Holders of a majority in principal amount of the Outstanding Securities; 
 it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
 SECTION 4.08. Unconditional Right of Holders to Receive Principal, Premium, If Any, and Interest. Notwithstanding any other provision in
this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of, and premium, if any, including the Redemption Prices, the Repurchase Price pursuant to Article 11 and
(subject to Sections 3.04 and 3.06) interest (including Liquidated Damages, if any) on such Security on the respective due dates expressed in such Security (or, in the case of redemption or repurchase, on the Redemption Date or Repurchase Date,
as the case may be) and to convert such Security in accordance with the provisions of this Indenture and to institute suit for the enforcement of any such payment and right to convert, and such rights shall not be impaired or adversely affected
without the consent of such Holder. 
 SECTION 4.09. Restoration of Rights and Remedies. If the Trustee or any Holder of a
Security has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every
such case, the Company, the Trustee and the Holders of Securities shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been instituted. 
 SECTION 4.10. Rights and Remedies
Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.05, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be 

  

 23 

 
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. 
 SECTION 4.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may
be deemed expedient, by the Trustee or by the Holders of Securities, as the case may be. 
 SECTION 4.12. Control by Holders of
Securities. The Holders of not less than a majority in principal amount of the Outstanding Securities shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the Securities, provided that: 
 (a) such direction
shall not be in conflict with any rule of law or with this Indenture, 
 (b) the Trustee may take any other action deemed
proper by the Trustee that is not inconsistent with such direction, and 
 (c) the Trustee need not take any action that might
involve it in personal liability or be unduly prejudicial to the Holders of Securities not joining therein. 
 SECTION 4.13. Waiver
of Past Defaults. The Holders of not less than a majority in principal amount of the Outstanding Securities may on behalf of the Holders of all the Securities waive any past Default or Event of Default hereunder with respect to such
Securities and its consequences, except a Default or Event of Default: 
 (a) in the payment of the principal of (or premium,
if any) or interest (including Liquidated Damages) on any Security, 
 (b) in respect of the conversion by the Company of any
Security into Common Stock, 
 (c) in the payment of the Redemption Price pursuant to Article 10, 
 (d) in the payment of the Repurchase Price pursuant to Article 11, 
 (e) in the payment of the Additional Interest Payment, if any, pursuant to Article 12, 
 (f) in the payment of the Make-Whole Premium, if any, pursuant to Article 12, 
 (g) in respect of a covenant or provision hereof that under Article 8 cannot be modified or amended without the consent of the Holder
of each Outstanding Security affected; or 
 (h) in respect of a covenant or provision hereof for the personal protection or
benefit of the Trustee, without the consent of the Trustee. 
 Upon any such waiver, such Default or Event of Default shall cease to exist,
and any Event of Default arising from any such Default shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent
thereon. 
 SECTION 4.14. Waiver of Usury, Stay or Extension Laws. The Company covenants (to the extent that it may lawfully
do so) that it shall not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that 

  

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it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 SECTION 4.15. Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, 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, 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; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the
Outstanding Securities, or to any suit instituted by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security on or after the respective Stated Maturities expressed in such Security (or, in
the case of redemption or repurchase, on or after the Redemption Date or the Repurchase Date, respectively), or the right to convert any Security in accordance with Article 12. 
 ARTICLE 5 
 THE TRUSTEE 
 SECTION 5.01. General. The Trustee, prior to the occurrence of an Event of Default known to a Responsible Officer of the Trustee and
after the curing of all Events of Default that may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture. In case an Event of Default has occurred (that has not been cured or waived)
and is known to a Responsible Officer of the Trustee, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs. 
 No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, its own willful misconduct, its own recklessness or its own bad faith. 
 SECTION 5.02. Certain Rights of Trustee. Subject to TIA Sections 315(a) through (d): 
 (a) the
Trustee may rely, and shall be protected in acting or refraining from acting, upon any resolution, certificate, statement, instrument, facsimile transmission, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, made or presented by the proper person, and may accept and rely upon the same as conclusive evidence of the truth and accuracy of the
statements and opinions contained therein. The Trustee need not investigate any fact or matter stated in any such document; 
 (b) before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel, which shall conform to Section 1.03. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on such certificate or opinion; 
 (c) the Trustee may consult with counsel, and the written advice
of such counsel shall be full and complete authorization and protection with respect to any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon, and may act through its attorneys and agents and shall not be
responsible for the misconduct or negligence of any attorney or agent appointed with due care; 
 (d) the Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in complying with such request or direction; 
  

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 (e) the Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers or for any action it takes or omits to take in accordance with the written direction of the holders of a majority in principal amount of the Outstanding Securities relating to
the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; 
 (f) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers’ Certificate; 
 (g) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit, and, if the Trustee 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; 
 (h) the Trustee shall not be required to take notice or be deemed to have notice of any Default or Event of Default unless the Trustee be
specifically notified of such Default or Event of Default in writing by the Company or any Holder, and in the absence of such notice the Trustee may conclusively assume that there is no Default or event of Default; provided that if the
Trustee is acting as Paying Agent, the Trustee shall be required to take and be deemed to have notice of its failure to receive payments of interest or principal hereunder; 
 (i) the Trustee shall have no responsibility with respect to any information in any offering memorandum or other disclosure material
distributed with respect to the Securities, and the Trustee shall have no responsibility for compliance with securities laws in connection with the issuance and sale, resale, transfer or exchange of the Securities; 
 (j) in the event the Trustee shall receive inconsistent or conflicting requests and security or indemnity from two or more groups of
Holders, each representing at least 25% (but less than 50%) of the aggregate principal amount of the Securities then Outstanding, the Trustee shall act in accordance with instructions received by the Holders of the greater percentage thereof;

 (k) except as otherwise expressly provided by the provisions of this Indenture, the Trustee shall not be obligated, and may
not be required to give or furnish any notice, demand, report, request, reply, statement, advice or opinion to any Holder or to the Company or any other Person, and the Trustee shall not incur any liability for its failure or refusal to give or
furnish the same unless obligated or required to do so by the express provisions hereof; 
 (l) the Trustee shall not be
required to give any bond or surety with respect to the performance of its duties or the exercise of its powers under this Indenture; and 
 (m) any permissive power or authority granted to the Trustee shall not be construed to be a duty. 
 SECTION 5.03. Individual Rights of Trustee. The Trustee, any Paying Agent, Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and may
otherwise deal with the Company, its Subsidiaries or its Affiliates with the same rights it would have if it were not the Trustee, Paying Agent, Security Registrar or such other agent. Any registrar, co-registrar, paying agent, conversion agent or
authenticating agent may do the same with like rights. However, upon qualification of this Indenture under the TIA, the Trustee shall be subject to TIA Sections 310(b) and 311. 
 SECTION 5.04. Trustee’s Disclaimer. The Trustee (i) makes no representation as to the validity or adequacy of this Indenture,
the Securities or the offering documents relating to the Securities, (ii) shall not be accountable for the Company’s use or application of the proceeds from the Securities and (iii) shall not be responsible for any statement in the
Securities other than its certificate of authentication. 
  

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 SECTION 5.05. Notice of Default. If any Event of Default occurs and is continuing and if
a Responsible Officer of the Trustee has actual knowledge of such Event of Default, the Trustee shall mail to each holder in the manner and to the extent provided in TIA Section 313(c) notice of the Event of Default within 90 days after it
occurs, unless such Event of Default has been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of (or premium, if any) or interest on any Security, the Trustee shall be protected in
withholding such notice if and so long as Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interests of the Holders of the Securities. 
 SECTION 5.06. Conflicting Interests of Trustee. If the Trustee has or shall acquire a conflicting interest within the meaning of the
TIA, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the TIA and this Indenture. 
 SECTION 5.07. Compensation and Indemnity. The Company shall pay to the Trustee such compensation as shall be agreed upon in writing for
its services. The compensation of the Trustee shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses, disbursements and
advances incurred or made by the Trustee in accordance with this Indenture. Such expenses shall include the reasonable compensation, expenses, disbursements and advances of the Trustee’s agents and counsel. 
 The Company shall indemnify and hold harmless the Trustee and its directors, agents and employees (including officers) (collectively the
“Indemnitees”) against any and all losses, liabilities, obligations, damages, penalties, fines, judgments, actions, suits, proceedings, reasonable costs and expenses (including reasonable fees and disbursements of counsel) of any
kind whatsoever that may be incurred by or imposed on the Indemnitees or any of them arising out of or in connection with the acceptance or administration of the Trustee’s duties under this Indenture; provided, however, that the Company
need not reimburse any expense or indemnify against any loss, obligation, damage, penalty, fine, judgment, action, suit, proceeding, reasonable cost or expense (including reasonable fees and disbursements of counsel) of any kind whatsoever that may
be incurred by Indemnitees or any of them which results from the negligence or willful misconduct of the Indemnitees or any of them. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee
to so notify the Company shall not relieve the Company of its obligations hereunder, unless the Company is materially prejudiced thereby. The Company shall defend the claim, and the Trustee shall cooperate in the defense. Unless otherwise set forth
herein, the Indemnitees or any of them, may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be
unreasonably withheld. The provisions of this Section 5.07 shall survive the termination of this Indenture and the resignation or removal of the Trustee for any reason, including any termination under any bankruptcy law. 
 To secure the Company’s payment obligations in this Section 5.07, the Trustee shall have a lien prior to the Securities on all money or
property held or collected by the Trustee, in its capacity as Trustee, except money or property held in trust to pay principal of, premium, if any, and interest on particular Securities. 
 If the Trustee incurs expenses or renders services after the occurrence of an Event of Default specified in Section 4.01(h) or Section 4.01(i),
such expenses, and the compensation due to the Trustee for such services, are intended to constitute expenses of administration under Title 11 of the United States Bankruptcy Code or any applicable federal or state law for the relief of debtors.

 SECTION 5.08. Replacement of Trustee. A resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section 5.08. 
 The Trustee
may resign at any time by so notifying the Company in writing at least thirty days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the Outstanding Securities 

  

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may at any time, by written notice to the Trustee and the Company, remove the Trustee and, with the prior consent of the Company, appoint a successor
Trustee. The Company may remove the Trustee if: (i) the Trustee is no longer eligible under Section 5.10; (ii) the Trustee is adjudged a bankrupt or an insolvent; (iii) a receiver or other public officer takes charge of the
Trustee or its property; or (iv) the Trustee becomes incapable of acting. 
 If the Trustee is removed without the concurrent
appointment by the Holders of a successor Trustee, if the Trustee resigns, or if a vacancy exists in the office of Trustee for any other reason, the Company shall promptly appoint a successor Trustee. If no successor Trustee has delivered its
written acceptance required by the next succeeding paragraph of this Section 5.08 within thirty days after the retiring Trustee delivers notice of its resignation or is removed, or after the occurrence of a vacancy in the office of Trustee for
any other reason, the retiring Trustee, the Company or the Holders of a majority in principal amount of the Outstanding Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after the delivery of
such written acceptance, subject to the lien provided in Section 5.07, (i) the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee, (ii) the resignation or removal of the retiring Trustee shall
become effective and (iii) the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. A successor Trustee shall mail notice of its succession to each Holder. 
 If the Trustee is no longer eligible under Section 5.10, any Holder who satisfies the requirements of TIA Section 310(b) may petition any court
of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 The Company shall give notice of any
resignation and any removal of the Trustee and each appointment of a successor Trustee to all Holders. Each notice shall include the name of the successor Trustee and the address of its Corporate Trust Office. 
 Notwithstanding replacement of the Trustee pursuant to this Section 5.08, the Company’s obligations under Section 5.07 shall continue for
the benefit of the retiring Trustee. 
 SECTION 5.09. Successor Trustee by Merger, Etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust business (including the administration of this Indenture) to, another corporation or national banking association, the resulting, surviving or transferee
corporation or national banking association, without any further act, shall be the successor Trustee with the same effect as if the successor Trustee had been named as the Trustee herein. 
 SECTION 5.10. Eligibility. This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1). The
Trustee (or the bank holding company to which the Trustee is a member) shall have a combined capital and surplus of at least $25 million as set forth in its most recent published annual report of condition. 
 SECTION 5.11. Money Held in Trust. Subject to the provisions of Section 9.03, all monies received by the Trustee shall, until used
or applied as herein provided, be held in trust for the purposes for which they were received. The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree with the Company. Money held in trust by the
Trustee need not be segregated from other funds except to the extent required by law. 
 SECTION 5.12. Preferential Collection of
Claims. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities under a supplemental indenture entered into in accordance herewith), the Trustee shall be subject to the provisions of
the Trust Indenture Act regarding the collection of the claims against the Company (or any such other obligor). 
  

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 SECTION 5.13. Trustee’s Application for Instructions from the Company; Liquidated
Damages. (a) Any application by the Trustee for written instructions from the Company (other than with regard to any action proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Holders) may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such action shall be taken or such omission shall be effective. The Trustee shall not be liable for
any action taken by, or omission of, the Trustee in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than ten Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have consented in writing to any earlier date) unless prior to taking any such action (or the effective date in the case of an omission), the Trustee shall have received
written instructions in response to such application specifying the action to be taken or omitted. 
 (b) If Liquidated
Damages are payable to Holders pursuant to the terms of the Registration Rights Agreement, the Company shall deliver to the Trustee a certificate to that effect stating (i) the amount of Liquidated Damages that is payable and (ii) the date
on which such amount of Liquidated Damages is payable. Unless and until a Responsible Officer of the Trustee receives at the Corporate Trust Office such a certificate, the Trustee may assume without inquiry that no Liquidated Damages are payable.
Upon receipt of a Company Request together with a sum sufficient to pay such Liquidated Damages so becoming due, the Trustee shall pay such Liquidated Damages to the Holders in the same manner as interest on the Securities. If the Company has paid
Liquidated Damages directly to the Persons entitled to them, the Company shall deliver to the Trustee a certificate setting forth the particulars of such payment. 
 ARTICLE 6 
 HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND COMPANY 
 SECTION 6.01.
Disclosure of Names and Addresses of Holders. Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that none of the Company, the Trustee, any Paying Agent or any Security Registrar, shall
be held accountable by reason of the disclosure of any information as to the names and addresses of the Holders of Securities in accordance with TIA Section 312, regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under TIA Section 312(b). 
 SECTION 6.02. Reports by Trustee. Within 60 days after October 15 of each year, commencing with the first October 15 to occur after the qualification of this Indenture, the Trustee shall transmit by mail to all
Holders of Securities as provided in TIA Section 313(c), if required by TIA Section 313(a), a brief report dated as of such October 15. A copy of each such report shall at the time of such transmission to Holders be filed by the
Trustee with the Company. 
 SECTION 6.03. Reports by Company. The Company shall: 
 (a) file with the Trustee, within 15 days after the Company is required to file the same with the Commission, copies of the annual reports
and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that the Company may be required to file with the Commission pursuant
to Sections 13(a) or 13(b) or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to any of such Sections, then it shall file with the Trustee, in accordance with rules
and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports that may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to time in such rules and regulations; 
  

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 (b) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and
regulations; and 
 (c) file with the Trustee and the Commission, if applicable, and transmit by mail to the Holders, within
thirty days after the filing thereof with the Trustee, in the manner and to the extent provided in TIA Section 313(c), such summaries of any information, documents and reports required to be filed by the Company pursuant to paragraphs
(1) and (2) of this Section as may be required by rules and regulations prescribed from time to time by the Commission and sell other information as may be required pursuant to the TIA, at the time and in the manner provided pursuant
to such Act. 
 SECTION 6.04. Company to Furnish Trustee Names and Addresses of Holders. (a) The Company shall furnish or cause
to be furnished to the Trustee: 
 (i) semiannually, not later than 10 days after the Regular Record Date for the payment of
interest on the Securities, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular Record Date; and 
 (ii) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a
list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, 
 provided, however,
that, so long as the Trustee is the Security Registrar, no such list shall be required to be furnished. 
 (b) The Company
shall provide the Trustee with at least thirty days’ prior notice of any change in location of its principal executive offices or other principal place of business. 
 ARTICLE 7 
 CONSOLIDATION, MERGER, SALE,
LEASE OR CONVEYANCE 
 SECTION 7.01. Consolidations and Mergers of Company and
Sales, Leases and Conveyances Permitted Subject to Certain Conditions. The Company may consolidate with, or sell, lease, transfer, convey or otherwise dispose of all or substantially all of its assets to, or merge with or into any other
Person, provided however, that in any such case, (1) either the Company shall be the continuing corporation, or the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person (if other than
a Subsidiary of the Company) that acquires or leases the Company’s assets substantially as an entirety is a corporation, partnership, limited liability company or trust organized and existing under the laws of any United States jurisdiction and
expressly assumes the due and punctual payment of the principal of (and premium, if any) and any interest (including Liquidated Damages, if any) payable pursuant to this Indenture on all of the Securities, according to their tenor, and the due and
punctual performance and observance of all of the covenants and conditions of this Indenture to be performed by the Company and shall have provided for conversion rights, as appropriately adjusted, if applicable, in accordance with the provisions of
Article 12 hereof, by supplemental indenture, complying with Article 8 hereof, satisfactory to the Trustee, executed and delivered to the Trustee by such corporation and (2) immediately after giving effect to such transaction, no
Default or Event of Default, shall have occurred and be continuing. For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of the properties and assets of one or more Subsidiaries (other than to the Company or another
Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially all of the properties and assets of the Company, shall be deemed to be the transfer of all or substantially all of the properties and assets of the
Company. 
  

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 SECTION 7.02. Rights and Duties of Successor Corporation. In case of any such
consolidation, merger, sale, lease, conveyance or other disposition and upon any such assumption by the successor Person, 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 party of the first part, and the predecessor corporation, except in the event of a lease, shall be relieved of any further obligation under this Indenture and the Securities. Such successor Person thereupon may cause to be signed, and may
issue either in its own name or in the name of the Company, any or all of the Securities issuable hereunder that theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor Person,
instead of the Company, and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities that previously shall have been signed and delivered by the officers of
the Company to the Trustee for authentication, and any Securities that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Securities so issued shall in all respects have the same legal
rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Securities had been issued at the date of the execution hereof. 
 In case of any such consolidation, merger, sale, lease, conveyance or other disposition, such changes in phraseology and form (but not in substance) may
be made in the Securities thereafter to be issued as may be appropriate. 
 SECTION 7.03. Officers’ Certificate and Opinion of
Counsel. Any consolidation, merger, sale, lease, transfer, conveyance or other disposition permitted under Section 7.01 is also subject to the condition that the Trustee receive an Officers’ Certificate and an Opinion of Counsel
to the effect that any such consolidation, merger, sale, lease, transfer, conveyance or other disposition complies with the provisions of this Article. Such opinion of counsel shall state that any supplemental indenture executed and delivered by a
successor Person pursuant to this Article 7 constitutes the legal, valid and binding obligation of such successor Person, subject to customary exceptions. 
 ARTICLE 8 
 SUPPLEMENTAL INDENTURES 
 SECTION 8.01. Supplemental Indentures Without Consent of Holders. Without the consent of any Holders of Securities, the Company, when
authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
 (a) to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company
contained herein and the Securities issued hereunder; 
 (b) to add to the covenants of the Company for the equal and ratable
benefit of the Holders or to surrender any right, power or option herein conferred upon the Company; 
 (c) to add any Events
of Default for the benefit of the Holders proposed by the Company in a Company Request and, in respect of any such additional Event of Default, such supplemental indenture may provide for a particular period of grace after default (which period may
be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such Event of Default, or may limit the remedies available to the Trustee upon such Event of Default or limit the right of the
Holders of a majority in aggregate principal amount of those Securities to which such additional Events of Default apply to waive such default, all as set forth in the Company Request; 
 (d) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; 
  

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 (e) to cure any ambiguity or to correct or supplement any provision herein that may be
defective or inconsistent with any other provision herein; provided such provisions shall not adversely affect the interests of the Holders of Securities in any material respect; 
 (f) to make any change that does not adversely affect the rights of any holder of Securities or to surrender any right, power or option
conferred on the Company hereunder; or 
 (g) to make any change to comply with any requirement of the Commission in
connection with the qualification of the Indenture under TIA; or 
 (h) to provide for the issuance of uncertificated
Securities in addition to or in place of certificated Securities; provided, however that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Internal Revenue Code of 1986. 
 The Company and the Trustee may not enter into a supplemental indenture pursuant to this Section 8.01 if such supplemental indenture modifies in any
respect any Event of Default relating to any covenant in this Indenture in effect immediately prior to the time such supplemental indenture becomes effective. 
 SECTION 8.02. Supplemental Indentures with Consent of Holders. With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders; provided, however, that no such supplemental indenture shall, without the consent
of the Holder of each Outstanding Security affected thereby: 
 (a) reduce the principal amount, Repurchase Price or
Redemption Price with respect to any Security, or extend the Stated Maturity of any Security or alter the manner of payment or rate of interest on any Security or make any Security (including any Liquidated Damages or Redemption Price or Repurchase
Price in respect of such Security) payable in money or securities other than that stated in the Security; 
 (b) reduce the
percentage in principal amount of the Outstanding Securities the consent of whose Holders is required for any such supplemental indenture or the consent of whose Holders is required for any waiver with respect to Securities (or for any waiver of
compliance with certain provisions of this Indenture or certain Defaults or Events of Default and their consequences); 
 (c)
make any change that adversely affects the right to convert any Security; 
 (d) modify the provisions of the Indenture
relating to the ranking of the Securities in a manner adverse to the Holders of the Securities; or 
 (e) impair the right to
institute suit for the enforcement of any payment with respect to, or conversion of, the Securities. 
 It shall not be necessary for any Act
of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 SECTION 8.03. Execution of Supplemental Indenture. In executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Article 5) shall be fully protected in relying upon, an Opinion of Counsel
stating that (i) the execution of such supplemental indenture is authorized or permitted by this Indenture, (ii) all conditions precedent to its execution and delivery have been complied with, and (iii) such supplemental indenture
constitutes the valid and binding obligation of the Company. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise. 
  

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 SECTION 8.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby. 
 SECTION 8.05. Conformity with Trust Indenture Act. Every supplemental
indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect. 
 SECTION 8.06. Reference in Securities to Supplemental Indentures. Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall, if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Company, to any
such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities. 
 ARTICLE 9 
 COVENANTS 
 SECTION 9.01. Payment of Principal, Premium, If Any, and Interest. The Company covenants and agrees for the benefit of the Holders of
Securities that it shall duly and punctually pay the principal of (and premium, if any), interest on (including Liquidated Damages, if any), and the Repurchase Price, the Redemption Price, the Make-Whole Premium and the Additional Interest Payment
with respect to, the Securities in accordance with the terms of the Securities and this Indenture. At the option of the Company, all payments of principal with respect to any Security may be paid by check to the registered Holder of the Security or
other Person entitled thereto against surrender of such Security. The conversion of any Securities pursuant to Article 12 hereof and payment of the Additional Interest Payment by delivery of shares of Common Stock in accordance with
Article 10, together with the making of any cash payments required to be made in accordance with the terms of the Securities and this Indenture, shall satisfy the Company’s obligations under this Section 9.01 with respect to such
Securities. 
 SECTION 9.02. Maintenance of Office or Agency. The Company shall maintain a Place of Payment for the
Securities in the Borough of Manhattan, The City of New York, which shall be an office or agency where the Securities may be presented or surrendered for payment or conversion, exchange or redemption, where the Securities may be surrendered for
registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company initially designates U.S. Bank National Association, at 100 Wall Street, Suite 1600,
New York, N.Y. 10005 as such an office or agency of the Company, unless and until the Company shall designate and maintain some other office or agency for one or more of such purposes. The Company shall give prompt written notice to the Trustee of
the location, and any change in the location, of each such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee its agent to receive all such presentations, surrenders, notices and demands. 
 The Company may from time to time designate one or more other offices or agencies (in or outside of The City of New York) where the Securities may be
presented or surrendered for any or all of 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 accordance with the requirements set forth above for such purposes. The Company shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or
agency. 
  

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 SECTION 9.03. Money for Securities Payments to Be Held in Trust. If the Company shall at
any time act as its own Paying Agent with respect to any Securities, it shall, on or before each due date of the principal of (and premium, if any), or interest on, the Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and shall promptly notify the Trustee of its action or failure
so to act. 
 Whenever the Company shall have one or more Paying Agents for the Securities, it shall, before each due date of the principal
of (and premium, if any), or interest on, the Securities, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest, so becoming due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest and (unless such Paying Agent is the Trustee) the Company shall promptly notify the Trustee of its action or failure so to act. 
 The Company shall cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument pursuant to which such Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent shall: 
 (a) hold all sums held by it for the payment of principal of (and premium, if any,)
or interest on the Securities, in trust for the benefit of the Persons entitled thereto, until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 
 (b) give the Trustee notice of any default by the Company (or any other obligor upon the Securities under a supplemental indenture entered
into in accordance herewith) in the making of any such payment of principal (and premium, if any) or interest; and 
 (c) at
any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 
 The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums
held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such sums. 
 Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal of (and premium, if any) or interest on any Security and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and
payable shall be paid to the Company upon Company Request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment
of such principal of (and premium, if any) or interest on any Security, without interest thereon, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in an Authorized Newspaper, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining shall be repaid to the Company. 
 SECTION 9.04. Existence. Subject to Article 7, the Company shall do or cause to be done all things necessary to preserve and keep
in full force and effect the corporate existence of the Company and its Subsidiaries, and their respective rights (charter and statutory) and franchises, except to the extent that the Board of Directors shall determine that the failure to do so
would not have a material adverse effect on the business, 

  

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assets, financial condition or results of operation of the Company (a “Material Adverse Effect”); provided, however, that the Company shall
not be required to preserve any right or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders. 
 SECTION 9.05. Payment of Taxes and Other Claims. The Company shall pay or discharge, or
cause to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon it or any Subsidiary or upon the income, profits or property of the Company or any Subsidiary,
and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien upon the property of the Company or any Subsidiary and have a Material Adverse Effect; provided, however, that the Company shall not be
required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim, the amount, applicability or validity of which is being contested in good faith by appropriate proceedings. 
 SECTION 9.06. No Senior Debt. The Company shall not, and shall not permit any of its Subsidiaries to incur, any indebtedness for money
borrowed that will be senior or pari passu to the Securities; provided, however, that the Company may obtain a line of credit from a financial institution having assets of not less than $200,000,000 in an amount up to $5,000,000, to use for working
capital. 
 SECTION 9.07. Statement as to Compliance; Notice of Default. The Company shall deliver to the Trustee, within
120 days after the end of each fiscal year of the Company, a certificate from the Company’s Chief Executive Officer, Chief Financial Officer or principal accounting officer as to his or her knowledge of the Company’s compliance with all
terms, conditions and provisions under this Indenture and, in the event of any noncompliance, specifying such noncompliance and the nature and status thereof. As of the date hereof, the Company’s fiscal year ends on December 31. For
purposes of this Section 9.06, such compliance shall be determined without regard to any period of grace or requirement of notice under this Indenture. The Company, within five Business Days of becoming aware of the occurrence of any Default or
Event of Default, shall deliver written notice to the Trustee of the occurrence thereof. 
 SECTION 9.08. Waiver of Certain
Covenants. The Company may omit in any particular instance to comply with any term, provision or condition set forth in Section 9.04 or 9.05 if, before the time for such compliance, the Holders of at least a majority in principal
amount of the Outstanding Securities, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except
to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain in full force and effect. 
 SECTION 9.09. Rule 144A Information Requirement. Within the period prior to the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants and agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the Exchange Act, make available to any
Holder or beneficial owner of Securities that continue to be Restricted Securities, in connection with any sale thereof, and to any prospective purchaser of Securities from such holder or beneficial owner, the information required pursuant to Rule
144A(d)(4) under the Securities Act upon the request of any such holder or beneficial owner of the Securities, and the Company shall take such further action as any holder or beneficial owner of such Securities may reasonably request, all to the
extent required from time to time to enable such holder or beneficial owner to sell its Securities without registration under the Securities Act within the limitation of the exemption provided by Rule 144A, as such rule may be amended from time to
time. 
  

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 ARTICLE 10 
 REDEMPTION OF SECURITIES 
 SECTION 10.01.
Optional Redemption by the Company. 
 (a) [Reserved]. 
 (b) The Securities may be redeemed at the election of the Company, as a whole or from time to time in part, at any time after July 6,
2009, and prior to maturity (an “Optional Redemption”), upon notice as set forth in Section 10.04, at a redemption price of 100% of the principal amount so redeemed, together with accrued and unpaid interest (including
Liquidated Damages, if any), if any, up to but not including the date fixed for redemption (the “Redemption Price”); provided, however, that the Securities will not be redeemable during such period unless the Closing Price
per share of Common Stock exceeds 150% of the Conversion Price for at least 20 Trading Days within a period of 30 consecutive Trading Days ending within five Trading Days immediately preceding the aforesaid notice to Holders. 
 SECTION 10.02. Election to Redeem; Notice to Trustee. The election of the Company to redeem any Securities shall be evidenced by a Board
Resolution. In case of any redemption at the election of the Company of all or any part of the Securities pursuant to Section 10.01 (Optional Redemption), the Company shall, at least 15 days prior to the giving of the notice of redemption in
Section 10.04 to the Holders (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of the Redemption Date and of the principal amount of Securities to be redeemed. In the case of any redemption of Securities prior
to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with all such
restrictions. 
 SECTION 10.03. Selection by Trustee of Securities to Be Redeemed. If less than all the Securities are to be
redeemed, the particular Securities to be redeemed shall be selected not more than 60 days and not less than 30 days prior to the Redemption Date by the Trustee, from the Outstanding Securities not previously called for redemption, by lot, pro rata
or any other method that complies with the requirements of any exchange on which the Securities are listed or quoted and that the Trustee shall deem fair and appropriate. 
 If any Security selected for partial redemption is converted in part before termination of the conversion right with respect to the portion of the Security so selected, the converted portion of such Security shall be
deemed, solely for purposes of determining the aggregate principal amount of the Securities to be redeemed, to be the portion selected for redemption (provided, however, that the Holder of such Security so converted and deemed redeemed shall
not be entitled to any interest payment as a result of such deemed redemption except for such interest payment as such Holder would have otherwise been entitled to receive upon conversion of such Security). Securities that have been converted during
a selection of Securities to be redeemed may be treated by the Trustee as Outstanding for the purpose of such selection. 
 Securities in
denominations of $1,000 may only be redeemed in whole. The Trustee may select for redemption portions (equal to $1,000 or any integral multiple thereof) of the principal of Securities that have denominations larger than $1,000. 
 The Trustee shall promptly notify the Company and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and,
in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed. 
 For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security
which has been or is to be redeemed. 
 SECTION 10.04. Notice of Redemption. Notice of redemption shall be given in the
manner provided in Section 1.07, at least 30 days, but not more than 60 days, prior to the Redemption Date; provided, that failure to 

  

 36 

 
give such notice in the manner herein provided to the Holder of any Security designated for redemption as a whole or in part, or any defect in the notice to
any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Security or portion thereof. 
 All
notices of redemption shall state: 
 (a) the Redemption Date; 
 (b) the Redemption Price; 
 (c) [Reserved]; 
 (d) if less than all Outstanding Securities are to be redeemed, the
identification (and, in the case of partial redemption, the principal amount) of the particular Securities to be redeemed; 
 (e) if any Security is to be redeemed in part only, the portion of the principal amount of such Security to be redeemed, and the notice that relates to such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the holder shall receive, without a charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed; 
 (f) [Reserved]; 
 (g) that on the Redemption Date, the Redemption Price shall become due and payable upon each such Security, or the portion thereof, to be redeemed and, if applicable, that interest thereon shall cease to accrue on and after said date;

 (h) the Place or Places of Payment where such Securities are to be surrendered for payment of the Redemption Price;

 (i) that Securities called for redemption must be presented and surrendered to the Paying Agent to collect the redemption
price; 
 (j) the then current Conversion Price; 
 (k) that the Securities called for redemption may be converted at any time before the close of business on the last Business Day prior to
the Redemption Date; 
 (l) the CUSIP number of such Security, if any; and 
 (m) that a Holder of Securities who desires to convert Securities must satisfy the requirements for conversion contained in such
Securities. 
 Notice of redemption of Securities to be redeemed shall be given by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company. 
 SECTION 10.05. Deposit of Redemption Price. Not later than 11:00
a.m. New York City time on the Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 9.03) an amount of money
sufficient to pay, on the Redemption Date, the Redemption Price of all the Securities or portions thereof that are to be redeemed on that date, other than Securities or portions thereof called for redemption on that date that have been delivered by
the Company to the Trustee for cancellation or have been converted. Upon written request, the Trustee or the Paying Agent, as the case may be, shall return to the Company no later than 5 Business Days after such request any money not required to pay
such Redemption Price. 
 SECTION 10.06. Securities Payable on Redemption Date. Notice of redemption having been given as
aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price) such
Securities shall cease to bear interest. Upon surrender of any such 

  

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Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price. 
 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the Redemption Price, shall, until paid, bear interest
from the Redemption Date at the rate borne by the Security and such Security shall remain convertible into Common Stock until the Redemption Price, and any such accrued interest, shall have been paid or duly provided for. 
 SECTION 10.07. Securities Redeemed in Part. Any Security that is to be redeemed only in part (pursuant to the provisions of this
Article) shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge a new Security or Securities, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
 ARTICLE 11 
 REPURCHASE AT OPTION OF
HOLDERS UPON CHANGE IN CONTROL 
 SECTION 11.01. Right
to Require Repurchase. In the event that a Change in Control shall occur, each Holder shall have the right, at the Holder’s option, to require the Company to repurchase all of such Holder’s Securities, or any portion of the
principal amount thereof that is an integral multiple of $1,000 (provided that no single Security may be repurchased in part unless the portion of the principal amount of such Security to be outstanding after such repurchase is equal to $1,000 or an
integral multiple of $1,000), on the date (the “Repurchase Date”) that is 45 Business Days after the date of the occurrence of a Change in Control at a purchase price equal to 100% of the principal amount plus interest (including
Liquidated Damages, if any) accrued and unpaid to the Repurchase Date (the “Repurchase Price”). The Repurchase Price shall be paid in cash. 
 SECTION 11.02. Notices; Method of Exercising Repurchase Right, Etc. (a) Unless the Company shall have theretofore called for redemption all of the Outstanding Securities, on or before the date that is 30
Business Days after the occurrence of a Change in Control, the Company shall give notice to all Holders of Outstanding Securities and to the Trustee (the “Company Notice”) of the occurrence of the Change in Control and of the
repurchase right set forth herein arising as a result thereof. 
 Each Company Notice shall state: 
 (i) the date of such Change in Control and, briefly, the events causing such Change in Control; 
 (ii) the date by which the Change in Control Purchase Notice (as defined below) must be delivered; 
 (iii) the Repurchase Date; 
 (iv) the Repurchase Price; 
 (v) a description of the procedure that a Holder must follow to
exercise a repurchase right; 
 (vi) the procedures for withdrawing a Change in Control Purchase Notice; 
 (vii) the place or places where such Securities are to be surrendered for payment of the Repurchase Price or for conversion; 

(viii) briefly, the conversion rights of Holders of Securities; 
 (ix) the Conversion Rate and any adjustments thereto; and 
 (x) that Holders who want to convert Securities must satisfy the requirements set forth in the Securities. 
  

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 Promptly after giving the Company Notice to the Holders of Outstanding Securities and to the Trustee, the
Company shall cause a copy of the Company Notice to be published in The Wall Street Journal or another daily newspaper of national circulation and will also post such notice on the Company’s website. 
 (b) [Intentionally Omitted] 
 (c) To exercise a repurchase right, a Holder must deliver to the Trustee or at the office or agency maintained by the Company for such purpose in the Borough of Manhattan, The City of New York pursuant to
Section 9.02, prior to the close of business on or before the Repurchase Date, (i) written notice of the Holder’s exercise of such right (the “Change in Control Purchase Notice”), which notice shall set forth
(A) the name of the Holder, (B) the certificate numbers of the Securities with respect to which the repurchase right is being exercised, (C) the principal amount of the Securities to be repurchased (and, if any Security is to be
repurchased in part, the portion of the principal amount thereof to be repurchased, which shall be in integral multiples of $1,000) and (D) a statement that an election to exercise the repurchase right is being made thereby pursuant to the
applicable provisions of the Securities and (ii) surrender the Securities subject to the Change in Control Purchase Notice. 
 (d) On or prior to the Repurchase Date the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 9.03) an amount of
money sufficient to pay the Repurchase Price of the Securities that are to be repaid on the Repurchase Date. On the Repurchase Date, the Trustee, a Paying Agent (or, if the Company is acting as its own Paying Agent, the Company) shall repurchase all
such Securities validly tendered prior to such date. 
 In the event that a Holder has previously delivered a Change in Control Purchase
Notice, but failed to surrender the Security with respect to which such Change in Control Purchase Notice relates, then so long as the Trustee or the Paying Agent holds (or, if the Company is acting as its own Paying Agent, the Company segregates
and holds in trust as provided in Section 9.03) money sufficient to pay the Repurchase Price in respect of such Security, then such Security shall cease to be Outstanding for the purposes of this Indenture on the Repurchase Date and all rights
of the Holder thereof other than the right to receive the Repurchase Price shall terminate. 
 (e) All Securities delivered
for repurchase shall be delivered to the Trustee to be canceled in accordance with the provisions of Section 3.08. 
 (f)
If any Security (or portion thereof) surrendered for repurchase shall not have been repurchased on the Business Day following the Repurchase Date, the Repurchase Price in respect of such Security shall, until paid, bear interest from the Business
Day following the Repurchase Date at the rate borne by the Security and such Security shall remain convertible into Common Stock until the Repurchase Price and any such accrued interest shall have been paid or duly provided for. 
 (g) Any Security that is to be repurchased only in part shall be surrendered to the Trustee or any such Paying Agent (or if the Company is
acting as its own Paying Agent, the Company) and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities, containing identical terms and
conditions, each in an authorized denomination in aggregate principal amount equal to and in exchange for the portion of the principal of the Security so surrendered that was not repurchased. 
 (h) Any Holder that has delivered a Change in Control Purchase Notice shall have the right to withdraw such notice by delivery of a
written notice of withdrawal to the Trustee or any such Paying Agent prior to the close of business on the Repurchase Date. The notice of withdrawal shall state the principal amount and the certificate numbers of the Securities as to which the
withdrawal notice relates and the principal amount, if any, that remains subject to the Change in Control Purchase Notice. A Security in respect of which a Holder has exercised its right to require repurchase upon a Change in Control may thereafter
be converted 

  

 39 

 
into Common Stock only if, and at such time as, such Holder withdraws its Change in Control Purchase Notice in accordance with the preceding sentence.

 (i) [Intentionally Omitted] 
 (j) [Intentionally Omitted] 
 (k) [Intentionally Omitted] 
 (l) Notwithstanding anything to the contrary in this Section 11.02, the Company shall not be required to give the Company Notice
following the occurrence of a Change in Control if, in the manner, at the time and otherwise in compliance with the requirements set forth herein regarding the Company’s obligation to offer to repurchase the Outstanding Securities following the
occurrence of a Change in Control, (A) another Person makes an offer to repurchase the Outstanding Securities by giving a notice containing the information set forth in clauses (i) through (x) of Section 11.02 (a) to the
Holders of all Outstanding Securities and to the Trustee, (B) such Person repurchases all Outstanding Securities validly tendered and not withdrawn, and (C) such Person makes all payments with respect thereto. This Section 11.02(l)
shall not relieve the Company of any of its obligations under this Indenture or any Security; provided, however, that if another Person makes the offer to repurchase Outstanding Securities as set forth in this Section, the Company shall not
be obligated to give the Company Notice. 
 (m) Absent, and except to the extent of, the Trustee’s receipt of a Company
Notice of a Change in Control, the Trustee shall not be under any duty to determine or monitor whether a Change in Control has occurred, from time to time. 
 SECTION 11.03. Certain Definitions. For purposes of this Article 11: 
 (a) the terms “beneficial owner” and “beneficial ownership” shall be determined in accordance with Rules 13d-3 and 13d-5 promulgated by the Commission pursuant to the Exchange Act, except that a Person
shall be deemed to have “beneficial ownership” of all securities that such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time; and 
 (b) the term “Person” shall include any syndicate or group that would be deemed to be a “person” under
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act. 
 SECTION 11.04. Change in Control. A “Change
in Control” shall be deemed to have occurred at such time after the original issuance of the Securities as: 
 (a)
any Person acquires the beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction (other than a transaction described in (b) below), of more than 50% of the total voting power of the total
outstanding voting stock of the Company other than an acquisition by the Company, any of its Subsidiaries or any of its employee benefit plans; 
 (b) the Company shall consolidate with, or merge with or into, another Person or convey, transfer, lease or otherwise dispose of all or substantially all of its assets to any Person, or any Person consolidates with or
merges with or into the Company, in any such event pursuant to a transaction in which the Company’s outstanding voting stock is converted into or exchanged for cash, securities or other property, other than any such transactions where:

 (i) the Company’s voting stock is not converted or exchanged at all (except to the extent necessary to reflect a
change in the Company’s jurisdiction of incorporation) or is converted into or exchanged for voting stock (other than Redeemable Capital Stock) of the surviving or transferee corporation, and 
 (ii) immediately after such transaction, no Person, other than one or more Persons who were the beneficial owner, directly or indirectly,
of more than 50% of the total voting power of all of the Company’s voting stock immediately before such transaction, is the beneficial owner, directly or 

  

 40 

 
indirectly, of more than 50% of the total outstanding voting stock of the surviving or transferee corporation; 
 (c) during any consecutive two-year period, individuals who at the beginning of such period constituted the Board of Directors (but not a
committee thereof), together with any new directors whose election to such Board of Directors (but not a committee thereof), or whose nomination for election by the Company’s stockholders, was approved by a vote of a majority of the
directors then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved cease for any reason to constitute a majority of the Board of Directors (but not a
committee thereof) then in office; 
 (d) a special resolution is passed by the Company’s stockholders approving a plan
of liquidation or dissolution of the Company (other than in a transaction that complies with the provisions described in Article 7), and no additional approvals of the Company’s stockholders are required under applicable law to cause such
a liquidation or dissolution; or 
 (e) there shall occur a Termination of Trading. 
 “Redeemable Capital Stock” means any class or series of capital stock that, either by its terms, by the terms of any security into which
it is convertible or exchangeable or by contract or otherwise, is, or upon the happening of an event or passage of time would be, required to be redeemed prior to the Stated Maturity of the Securities or is redeemable at the option of the holder
thereof at any time prior to such Stated Maturity, or is convertible into or exchangeable for debt securities at any time prior to such Stated Maturity; provided, however, that Redeemable Capital Stock shall not include any Common Stock which
the holder may cause the Company to repurchase or redeem upon termination of such holder’s employment. 
 ARTICLE 12 

CONVERSION 
 SECTION 12.01. Conversion Privilege, Conversion Rate and Conversion Price. Subject to and upon compliance with the provisions of this Article 12, at the option of the Holder thereof, any Security or any portion of the
principal amount thereof that is $1,000 or an integral multiple of $1,000 may be converted at any time after original issuance thereof through the close of business on September 30, 2010 into that number of fully paid and non-assessable shares
of Common Stock obtained by multiplying the Conversion Rate then in effect by each $1,000 principal amount of Securities surrendered for conversion. In case a Security or portion thereof has previously been called for redemption at the election of
the Company, such conversion right in respect of the Security or portion so called shall expire at the close of business, New York City time, on the last Business Day prior to the Redemption Date, unless the Company defaults in making the payment
due upon redemption. A Security in respect of which a Holder has delivered a Change in Control Purchase Notice (as defined in Article 11 hereof) exercising the option of such Holder to require the Company to purchase such Security may be
converted only if such notice and the Security is withdrawn by a written notice of withdrawal delivered by the Holder to the Trustee or any Paying Agent prior to the close of business on the Repurchase Date, in accordance with the terms of this
Indenture. 
 The price at which shares of Common Stock shall be delivered upon conversion (herein called the “Conversion
Price”) shall be initially approximately $2.118 per share of Common Stock, which is equal to a conversion rate of 472.1435 shares per $1,000 principal amount of the Securities (the “Conversion Rate”). The Conversion Rate
shall be adjusted in certain instances as provided in Section 12.04 and, in every instance in which an adjustment is made to the Conversion Rate, a corresponding adjustment shall be made to the Conversion Price. The adjusted Conversion Price
shall equal at any time 1,000 divided by the then adjusted Conversion Rate. 
 In the case of a Change in Control that the Company knows or
reasonably should know will occur, the Company will notify the Holders and Trustee in writing at least 15 Trading Days prior to the date on which such 

  

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Change in Control becomes effective (provided that the Company shall make public disclosure thereof prior to or contemporaneously with such notification to
the Holders). If the Company does not know, and should not reasonably know, that a Change in Control will occur until a date that is within 15 Trading Days before the anticipated Effective Date (as defined below) or other applicable event, the
Company will notify the Holders and the Trustee in writing as promptly as practicable after the Company has knowledge of such Change in Control or such other event (provided that the Company shall make public disclosure thereof prior to or
contemporaneously with such notification to the Holders). 
 If a Holder elects to convert its Securities in connection with a corporate
transaction that constitutes a Change in Control at any time on or prior to July 6, 2010, pursuant to which 10% or more of the consideration for the Common Stock (other than cash payments for fractional shares and cash payments made in respect
of dissenters’ appraisal rights) in such transaction consists of cash or securities (or other property) that are not traded or scheduled to be traded immediately following such transaction on a U.S. national securities exchange or any United
States system of automated dissemination of quotations of securities prices or an established over-the-counter trading market in the United States (a “Non-Stock Change in Control”), then, in addition to the Common Stock such Holder
is entitled to receive upon such conversion, the Company will pay a make-whole premium (the “Make-Whole Premium”) in cash to such Holders, which Make-Whole Premium shall be due and payable in accordance with Section 12.02 of
this Indenture; provided that if the Share Price in such transaction is less than U.S.$1.83 (subject to adjustment as described below), no Make-Whole Premium shall be paid by the Company. For the avoidance of doubt, the Make-Whole Premium provided
for in this Section 12.01 shall only be paid with respect to the Securities being converted in connection with such Non-Stock Change in Control and shall not be effective as to any Securities not so converted. 
 The Make-Whole Premium will be expressed as a percentage of the principal amount of the Securities and will be determined by the Company by reference to
the table below, based on the date the Non-Stock Change in Control becomes effective (the “Effective Date”) and the share price paid per share of Common Stock in the corporate transaction (the “Share Price”);
provided that if holders of the Common Stock receive only cash in such corporate transaction, the Share Price shall be the cash amount paid per share. Otherwise, the Share Price will be the average of the Closing Price on the five Trading
Days prior to but not including the Effective Date; provided further that if the Effective Date is between two Effective Dates in the table, the Company shall determine the Make-Whole Premium by a straight-line interpolation between the
percentage set forth for the two dates, as applicable, based on a 365-day year. 
  

				
	 Effective Date
	  	$1.83	 
	 July 6, 2007
	  	15.74	%
	 September 30, 2007
	  	14.01	%
	 March 30, 2008
	  	11.29	%
	 September 30, 2008
	  	8.56	%
	 March 30, 2009
	  	5.84	%
	 September 30, 2009
	  	3.11	%
	 March 30, 2010
	  	0.39	%
	 September 30, 2010
	  	0.00	%

 The Share Prices set forth in the first row of the table (i.e., column headers) above will be
adjusted as of any date on which the Conversion Rate of the Securities is adjusted pursuant to this Indenture. The adjusted Share Prices will equal the Share Prices applicable immediately prior to such adjustment, multiplied by a fraction, the
numerator of which is the Conversion Rate as so adjusted giving rise to the Closing Rate adjustment and the denominator of which is the Conversion Rate immediately prior to the adjustment. 
 SECTION 12.02. Exercise of Conversion Privilege. In order to exercise the conversion privilege with respect to any Security in
definitive form, the Holder of any Security to be converted shall surrender such Security, duly endorsed or assigned to the Company or in blank, at any office or agency maintained by the 

  

 42 

 
Company pursuant to Section 9.02, accompanied by (a) written notice to the Company in substantially the form of conversion notice attached to the
form of Security attached as Exhibit A hereto at such office or agency that the Holder elects to convert such Security or, if less than the entire principal amount thereof is to be converted, the portion thereof to be converted, (b) the
funds, if any, required by this Section 12.02, and (c) if shares or any portion of such Security not to be converted are to be issued in the name of a Person other than the Holder thereof, the name of the Person in which to issue such
shares and the transfer taxes, if any, required to be paid by the Holder pursuant to Section 12.08. 
 In order to exercise the
conversion privilege with respect to any interest in a global Security, the beneficial owner must complete, or cause to be completed, the appropriate instruction form for conversion pursuant to the depositary’s book-entry conversion program,
deliver, or cause to be delivered, by book-entry delivery, an interest in such global Security, furnish appropriate endorsements and transfer documents if required by the Company or the Trustee or other agent, and pay the funds, if any, required by
this Section 12.02 and any transfer taxes if required pursuant to Section 12.08. 
 As promptly as practicable after satisfaction
of the requirements for conversion set forth above, the Company shall issue and shall deliver to such Holder a certificate or certificates for the number of full shares of Common Stock issuable upon the conversion of such Security or portion thereof
in accordance with the provisions of this Article and a check or cash in respect of any fractional interest in respect of a share of Common Stock arising upon such conversion, as provided in Section 12.03, and in respect of any Make-Whole
Premium. In case any Security of a denomination greater than $1,000 shall be surrendered for partial conversion, and subject to Article 2, the Company shall execute, and the Trustee shall authenticate and deliver to the holder of the Security
so surrendered, without charge, a new Security or Securities in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Security. 
 Each conversion shall be deemed to have been effected as to any such Security (or portion thereof) on the date on which the requirements set forth above
in this Section 12.02 have been satisfied as to such Security (or portion thereof), and the Person in whose name any certificate or certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed to have become on
said date the holder of record of the shares represented thereby; provided however that any such surrender on any date when the stock transfer books of the Company shall be closed shall constitute the Person in whose name the certificates are
to be issued as the record holder thereof for all purposes on the next succeeding day on which such stock transfer books are open, but such conversion shall be at the Conversion Rate in effect on the date upon which such Security shall be
surrendered. 
 Any Security or portion thereof surrendered for conversion during the period from the close of business on the record date
for any interest payment date to the close of business on the Business Day next preceding the following interest payment date that has not been called for redemption during such period, shall be accompanied by payment, in immediately available funds
or other funds acceptable to the Company, of an amount equal to the interest otherwise payable on such interest payment date on the principal amount being converted; provided however that no such payment need be made to the extent any overdue
interest shall exist at the time of conversion with respect to any such Security or portion thereof. On conversion of a Security, that portion of accrued and unpaid interest, if any, remaining unpaid on such conversion shall not be cancelled,
extinguished or forfeited, but rather shall be deemed to be paid in full to the Holder thereof through delivery of the Common Stock (together with the cash payment, if any, in lieu of fractional shares) in exchange for the Security being converted
pursuant to the provisions hereof. Except as provided above in this Section 12.02, no payment or other adjustment shall be made for interest accrued on any Security converted or for dividends on any shares issued upon the conversion of such
Security as provided in this Article. 
 Upon the conversion of an interest in a global Security, the Trustee (or other conversion agent
appointed by the Company), shall make a notation on such global Security as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in writing of any conversions of Securities effected through any
Conversion Agent other than the Trustee. 
  

 43 

 SECTION 12.03. Fractions of Shares. No fractional shares of Common Stock shall be issued
upon conversion of Securities. If more than one Security shall be surrendered for conversion at one time by the same Holder, the number of full shares that shall be issuable upon conversion thereof shall be computed on the basis of the aggregate
principal amount of the Securities (or specified portions thereof) so surrendered. Instead of any fractional share of Common Stock that would otherwise be issuable upon conversion of any Security (or specified portions thereof), the Company shall
pay a cash adjustment in respect of such fraction in an amount equal to the same fraction of the Closing Price per share of the Common Stock at the close of business on the Trading Day immediately preceding such day. 
 “Trading Day” shall mean each day on which the primary securities exchange or quotation system that is used to determine the Closing
Price is open for trading or quotation. 
 “Closing Price” of a single share of Common Stock on any Trading Day shall mean
the closing sale price per share for the Common Stock (or if no closing sale price is reported, the average of the bid and ask prices) on such Trading Day on the principal United States national securities exchange on which the Common Stock is
traded or, if the Common Stock is not listed on a United States national stock exchange, any United States system of automated dissemination of quotations of securities prices or an established over-the-counter trading market in the United States.
In the absence of the foregoing, the Company’s Board of Directors will determine the Closing Price on such reasonable basis as it considers appropriate based on its reasonable good faith judgment. 
 SECTION 12.04. Adjustment of Conversion Rate.
 (a) In case the Company shall pay or make a dividend or other distribution on its Common Stock exclusively in Common Stock, the Conversion Rate in effect at the opening of business on the earlier of the day next
following such dividend or other distribution or the date fixed for the determination of stockholders entitled to receive such dividend or other distribution shall be adjusted so that a Holder upon conversion shall be entitled to receive that number
of shares of Common Stock it would have been entitled to after such dividend or other distribution if it had converted its Security immediately prior to such dividend or other distribution. 
 (b) In case the Company shall pay or make a dividend or other distribution on its Common Stock consisting exclusively of, or shall
otherwise issue to all holders of its Common Stock, rights, warrants or options entitling the holders thereof, for a period not exceeding 45 days, to subscribe for or purchase shares of Common Stock at a price per share less than the current market
price per share (determined as provided in Section 12.04(h)) of the Common Stock on the date fixed for the determination of stockholders entitled to receive such rights, warrants or options, the Conversion Rate in effect at the opening of
business on the day following the date fixed for such determination shall be increased by multiplying such Conversion Rate by a fraction of which the numerator 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 and the denominator 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 price of the total number of shares so offered would purchase at the current market price per share (determined as provided in Section 12.04(h)), such increase to
become effective immediately after the opening of business on the day following the date fixed for such determination. 
 (c)
In case outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall
be proportionately increased, and, conversely, in case outstanding shares of Common Stock shall each be combined into a smaller number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day
upon which such combination 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 or
combination becomes effective. 
  

 44 

 (d) In case the Company shall, by dividend or otherwise, distribute to all holders of its
Common Stock evidences of its indebtedness, shares of any class of capital stock, securities, cash or assets (excluding any rights, warrants or options referred to in Section 12.04(b), any dividend or distribution paid exclusively in cash and
any dividend or distribution referred to in Section 12.04(a)), the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect immediately prior to the earlier of such distribution or the determination of stockholders
entitled to receive such distribution by a fraction of which the numerator shall be the current market price per share (determined as provided in Section 12.04(h)) and the denominator shall be such current market price less the fair market
value (as determined in good faith by the Board of Directors, whose determination shall be conclusive and described in a Board Resolution), on the date of such effectiveness, of the portion of the evidences of indebtedness, shares of capital stock,
securities, cash and assets so distributed applicable to one share of Common Stock, such adjustment to become effective immediately prior to the opening of business on the day next following the later of (i) the date fixed for the payment of
such distribution and (ii) the date 20 days after the notice relating to such distribution is given pursuant to Section 12.06 (such later date of (i) and (ii) being referred to as the “Reference Date”). The
provisions of this Section 12.04(d) shall not be applicable to an event covered by Section 12.04(k). For purposes of this Section 12.04(d) and Sections 12.04(a) and 12.04(b), any dividend or distribution for which an adjustment is
being made pursuant to this Section 12.04(d) that also includes shares of Common Stock or rights, warrants or options to subscribe for or purchase shares of Common Stock shall be deemed instead to be (A) a dividend or distribution of the
evidences of indebtedness, cash, property, shares of capital stock or securities other than such shares of Common Stock or such rights, warrants or options (making any Conversion Rate adjustment required by this Section 12.04(d)) immediately
followed by (B) a dividend or distribution of such shares of Common Stock or such rights (making any further Conversion Rate adjustment required by Sections 12.04(a) or 12.04(b)), except (1) the record date of such dividend or distribution
as defined in this Section 12.04(d) shall be substituted as “the date fixed for the determination of stockholders entitled to receive such dividend or other distributions”, “the date fixed for the determination of stockholders
entitled to receive such rights, warrants or options” and “the date fixed for such determination” within the meaning of Sections 12.04(a) and 12.04(b) and (2) any shares of Common Stock included in such dividend or distribution
shall not be deemed “outstanding at the close of business on the date fixed for such determination” within the meaning of this 12.04(d). 
 (e) In case the Company shall, by dividend or otherwise, make a distribution to all holders of its Common Stock exclusively in cash, the Company shall, in all cases, at the time of such distribution, make a cash
payment to the Holders of all outstanding Securities equal to the amount of cash such Holder would have received with respect to such distribution for all of its Securities had such Holder converted its Securities into Common Stock immediately prior
to the close of business on the date fixed for the determination of the stockholders of record entitled to such distribution. 
 (f) In case a successful tender or exchange offer, other than an odd lot offer, made by the Company or any Subsidiary for all or any portion of the Common Stock shall involve 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) at the last time (the “Expiration Time”) tenders or exchanges may be made pursuant to such tender or
exchange offer (as it may be amended) that exceeds the current market price per share (determined as provided in Section 12.04(h)) of the Common Stock outstanding (including any tendered shares) on the Expiration Time times the number of shares
of Common Stock outstanding (including any tendered shares) as of the Expiration Time, then, in each case, the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect immediately prior to the Expiration Time by a fraction of
which (i) the denominator shall be (x) the product of the current market price per share (determined as provided in Section 12.04(h)) of the Common Stock on the Trading Day next succeeding the Expiration Time times the number of
shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time minus (y) the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the acceptance (up
to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum, 

  

 45 

 
being referred to as the “Purchased Shares”) and (ii) the numerator shall be the product of (x) such current market price per
share (determined in accordance with Section 12.04(h)) on the Trading Day next succeeding the Expiration Time times (y) such number of outstanding shares at the Expiration Time less the number of Purchased Shares, such increase to become
effective immediately prior to the opening of business on the day following the Expiration Time. 
 (g) In case the
September 30, 2008 Trailing Twelve Month Net Income shall be less than $0.00, the Conversion Rate shall be increased to 546.4481, which number shall be subject to adjustment from the date hereof as set forth in clauses (a) through
(f) of this Section 12.04 (the “Operating Adjustment”); provided, however, that no Operating Adjustment shall occur in the event that the simple average of the daily Volume-Weighted Average Price for the five
Business Days immediately preceding the Operating Adjustment Determination Date and the five succeeding Business Days commencing on the Operating Adjustment Determination Date shall exceed one hundred twenty-five percent (125%) of the
Conversion Price. The Operating Adjustment shall be effective, if at all, on the tenth business day following the Operating Adjustment Determination Date. 
 The “Operating Adjustment Determination Date” shall be the earlier of the date on which the Company files its quarterly report on Form 10-Q under the Exchange Act for the three and nine months ended
September 30, 2008 or November 17, 2008. 
 The “September 30, 2008 Trailing Twelve Month Net Income” of the
Company shall equal the aggregate net income (or loss) plus costs or expenses attributable to stock based compensation and any intangible asset impairments, including but not limited to, investments and goodwill, of the Company for the four
consecutive fiscal quarters ending immediately prior to October 1, 2008, which shall be calculated by the Company by deriving such amounts from the Company’s quarterly report on form 10-Q for the period ending September 30, 2008 and
from the Company’s annual report on Form 10-K for the year ended December 31, 2007, consistent with the amounts reported in such filings. In the event that the Company shall have changed its fiscal year-end period, the September 30,
2008 Trailing Twelve Month Net Income shall be based on such relevant periodic reports that the Company shall have filed, and the Company shall make such notification of adjustment as may be required under this Section 12.04(g). 
 The “Volume-Weighted Average Price” per share of the of the Common Stock on a Trading Day is the volume-weighted average price per share
of the Common Stock on the Nasdaq Global Market or, if the Common Stock is not then listed on the Nasdaq Global market, on the principal exchange or over-the-counter market on which the Common Stock is then listed or traded, from 9:30 a.m. to 4:00
p.m., New York City time, on that Trading Day, as displayed by Bloomberg. If such price is not available, the Volume-Weighted Average Price means the market value per share of the Common Stock on such day as determined by a nationally recognized
investment banking firm retained for this purpose by the Company. 
 The Company shall notify the Holders and the Trustee in the manner
provided in Section 12.05 of any adjustment in the Conversion Rate under this Section 12.04(g), setting forth the date on which such adjustment is effective as provided herein. 
 (h) For the purpose of any computation under Sections 12.04(b), (d) and (e), the current market price per share of Common Stock on
any date in question shall be deemed to be the average of the daily Closing Prices per share of Common Stock for the ten consecutive Trading Days immediately prior to the date in question; provided, however, that (i) if the
“ex” date (as hereinafter defined) for any event (other than the issuance or distribution requiring such computation) that requires an adjustment to the Conversion Rate pursuant to Section 12.04(a), (b), (c), (d), (e), (f) or
(g) (“Other Event”) occurs on or after the 20th Trading Day prior to the date in question and prior to the “ex” date for the issuance or distribution requiring such computation (the “Current Event”),
the Closing Price for each Trading Day prior to the “ex” date for such Other Event shall be adjusted by multiplying such Closing Price by the reciprocal of the fraction by which the Conversion Rate is so required to be adjusted as a result
of such Other Event, (ii) if the “ex” date for any 

  

 46 

 
Other Event occurs after the “ex” date for the Current Event and on or prior to the date in question, the Closing Price for each Trading Day on and
after the “ex” date for such Other Event shall be adjusted by multiplying such Closing Price by the fraction by which the Conversion Rate is so required to be adjusted as a result of such Other Event, (iii) if the “ex” date
for any Other Event occurs on the “ex” date for the Current Event, one of those events shall be deemed for purposes of clauses (i) and (ii) of this proviso to have an “ex” date occurring prior to the “ex” date
for the Other Event, and (iv) if the “ex” date for the Current Event is on or prior to the date in question, after taking into account any adjustment required pursuant to clause (ii) of this proviso, the Closing Price for each
Trading Day on or after such “ex” date shall be adjusted by adding thereto the amount of any cash and the fair market value on the date in question (as determined in good faith by the Board of Directors in a manner consistent with any
determination of such value for purposes of Section 12.04(d) or (e), whose determination shall be conclusive and described in a Board Resolution) of the portion of the rights, warrants, options, evidences of indebtedness, shares of capital
stock, securities, cash or property being distributed applicable to one share of Common Stock. For the purpose of any computation under Section 12.04(f), the current market price per share of Common Stock on any date in question shall be deemed
to be the average of the daily Closing Prices for the five consecutive Trading Days selected by the Company commencing on or after the latest (the “Commencement Date”) of (i) the date 20 Trading Days before the date in
question, (ii) the date of commencement of the tender or exchange offer requiring such computation and (iii) the date of the last amendment, if any, of such tender or exchange offer involving a change in the maximum number of shares for
which tenders are sought or a change in the consideration offered, and ending not later than the Trading Day next succeeding the Expiration Time of such tender or exchange offer (or, if such Expiration Time occurs before the close of trading on a
Trading Day, not later than the Trading Day during which the Expiration Time occurs); provided, however, that if the “ex” date for any Other Event (other than the tender or exchange offer requiring such computation) occurs on or
after the Commencement Date and on or prior to the Trading Day next succeeding the Expiration Time for the tender or exchange offer requiring such computation, the Closing Price for each Trading Day prior to the “ex” date for such Other
Event shall be adjusted by multiplying such Closing Price by the reciprocal of the same fraction by which the Conversion Rate is so required to be adjusted as a result of such other event. For purposes of this paragraph, the term “ex”
date, (i) when used with respect to any issuance or distribution, means the first date on which the Common Stock trades regular way on the relevant exchange or in the relevant market from which the Closing Price was obtained without the right
to receive such issuance or distribution, (ii) when used with respect to any subdivision or combination of shares of Common Stock, means the first date on which the Common Stock trades regular way on such exchange or in such market after the
time at which such subdivision or combination becomes effective, and (iii) when used with respect to any tender or exchange offer means the first date on which the Common Stock trades regular way on such exchange or in such market after the
Expiration Time of such tender or exchange offer. 
 (i) In addition to those required by paragraphs (a), (b), (c), (d), (e),
(f) and (g) of this Section 12.04, to the extent permitted by applicable law, the Company from time to time may increase the Conversion Rate by any amount for any period of time if the period is at least twenty (20) days and the
Board of Directors shall have made a determination that such increase would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company
shall give notice of the increase to the Holders of Securities in the manner provided in Section 1.06 at least fifteen (15) days prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect. 
 (j) No adjustment in the Conversion Rate shall be
required unless such adjustment would require an increase or decrease of at least 1% in the Conversion Rate; provided, however, that any adjustments, which by reason of this Section 12.04(j) are not required to be made, shall be carried
forward and taken into account in any subsequent adjustment. 
 (k) In the event that the Company distributes assets, debt
securities, rights, warrants or options (other than those referred to in Section 12.04(b)) pro rata to holders of Common Stock, and the fair market value of the portion of assets, debt securities, rights, warrants or options applicable to one
share of Common Stock 

  

 47 

 
distributed to holders of Common Stock exceeds the Average Sale Price (as defined below) per share of Common Stock, or such Average Sale Price exceeds such
fair market value by less than $1.00, then so long as any such assets, debt securities, rights, options or warrants have not expired or been redeemed by the Company, the Company shall make proper provision so that the Holder of any Security upon
conversion, rather than being entitled to an adjustment in the Conversion Rate, will be entitled to receive upon such conversion, in addition to the shares of Common Stock otherwise issuable upon conversion, the kind and amount of assets, debt
securities, rights, warrants and options such Holder would have received had such Holder converted its Security immediately prior to the date of determination of the holders entitled to such distribution. 
 “Average Sale Price” means the average of the Closing Prices of the Common Stock for the shorter of (i) 30 consecutive Trading Days
ending on the last full Trading Day prior to the Time of Determination (as defined below) with respect to the rights, options, warrants or distribution in respect of which the Average Sale Price is being calculated, or (ii) the period
(x) commencing on the date next succeeding the first public announcement of (a) the issuance of rights, options or warrants or (b) the distribution, in each case, in respect of which the Average Sale Price is being calculated and
(y) proceeding through the last full Trading Day prior to the Time of Determination with respect to the rights, options, warrants or distribution in respect of which the Average Sale Price is being calculated, or (iii) the period, if any,
(x) commencing on the date next succeeding the Ex-Dividend Time (as defined below) with respect to the next preceding (a) issuance of rights, warrants or options or (b) distribution, in each case, for which an adjustment is required
by the provisions of Section 12.04(b) or Section 12.04(k) and (y) proceeding through the last full Trading Day prior to the Time of Determination with respect to the rights, options, warrants, or distribution in respect of which the
Average Sale Price is being calculated. If the Ex-Dividend Time (or in the case of a subdivision, combination or reclassification, the effective date with respect thereto) with respect to a dividend, subdivision, combination or reclassification to
which Section 12.04(a), (b) or (c) applies occurs during the period applicable for calculating “Average Sale Price” pursuant to the definition in the preceding sentence, “Average Sale Price” shall be calculated for
such period in a manner determined in good faith by the Board of Directors to reflect the impact of such dividend, subdivision, combination or reclassification on the Closing Price of the Common Stock during such period. 
 “Time of Determination” means the time and date of the earlier of (i) the determination of stockholders entitled to receive rights,
warrants or options or a distribution, in each case, to which this Section 12.04 applies and (ii) the time (“Ex-Dividend Time”) immediately prior to the commencement of “ex-dividend” trading for such rights,
options, warrants or distribution on the New York Stock Exchange or such other national or regional exchange or market on which the shares of Common Stock are listed or quoted. 
 SECTION 12.05. Notice of Adjustments of Conversion Rate. Whenever the Conversion Rate and Conversion Price are adjusted as herein
provided, the Company shall compute the adjusted Conversion Rate and Conversion Price in accordance with Section 12.04 and shall prepare a certificate signed by the Chief Financial Officer of the Company setting forth the adjusted Conversion
Rate and Conversion Price and showing in reasonable detail the facts upon which such adjustment is based, and such certificate shall forthwith be filed (with a copy to the Trustee or the Conversion Agent) at each office or agency maintained for the
purpose of conversion of Securities pursuant to Section 9.02; and the Company shall forthwith cause a notice setting forth the adjusted Conversion Rate and Conversion Price to be mailed, first class postage prepaid, to each Holder of Securities
at its address appearing on the Security Register. Unless and until the Trustee (and the Conversion Agent, as the case may be) shall receive such notice, the Trustee (and the Conversion Agent, as the case may be) may assume without inquiry that the
Conversion Rate and Conversion Price have not been, and are not required to be, adjusted and that the last Conversion Rate and Conversion Price of which it has written notice remain in effect. 
 SECTION 12.06. Notice of Certain Corporate Action. In case: 
 (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that would require a Conversion Rate adjustment
pursuant to Section 12.04(e); or 
  

 48 

 (b) the Company shall authorize the granting to all holders of its Common Stock of
rights, warrants or options to subscribe for or purchase any shares of capital stock of any class or of any other rights (excluding rights distributed pursuant to any stockholder rights plan); or 
 (c) of any reclassification of the Common Stock of the Company (other than a subdivision or combination of its outstanding shares of
Common Stock), or of any consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or of the sale or transfer of all or substantially all of the assets of the Company; or

 (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or 
 (e) the Company or any Subsidiary of the Company shall commence a tender or exchange offer for all or a portion of the Company’s
outstanding shares of Common Stock (or shall amend any such tender or exchange offer); 
 then the Company shall cause to be filed at each
office or agency maintained for the purpose of conversion of Securities pursuant to Section 9.02, and shall cause to be mailed to all Holders at their last addresses as they shall appear in the Security Register, at least 20 days (or 10 days in
any case specified in clause 12.06(a) or 12.06(b) above) prior to the applicable record, effective or expiration date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend,
distribution or granting of rights, warrants or options, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution, rights, warrants or options are to be determined,
or (y) the date on which such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall
be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up, or (z) the date on which such
tender offer commenced, the date on which such tender offer is scheduled to expire unless extended, the consideration offered and the other material terms thereof (or the material terms of any amendment thereto). 
 SECTION 12.07. Company’s Obligation Regarding Common Stock. The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, solely for the purpose of effecting the conversion of Securities, the whole number of shares of Common Stock then issuable upon the conversion in full of all Outstanding Securities.

 Before taking any action which would cause an adjustment reducing the Conversion Price below the then par value, if any, of the shares of
Common Stock issuable upon conversion of the Securities, the Company shall take all corporate action that may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue shares of such Common Stock at such
adjusted Conversion Price. 
 The Company covenants that if any shares of Common Stock to be provided for the purpose of conversion of
Securities hereunder require registration with or approval of any governmental authority under any federal or state law before such shares may be validly issued upon conversion, the Company shall in good faith and as expeditiously as practicable
endeavor to secure such registration or approval, as the case may be. 
 The Company further covenants that so long as the Common Stock shall
be listed on the New York Stock Exchange, The Nasdaq Stock Market, or any other national securities exchange the Company shall, if permitted by the rules of such exchange, list and keep listed so long as the Common Stock shall be so listed on such
market or exchange, all Common Stock issuable upon conversion of the Securities. 
 SECTION 12.08. Taxes on Conversions. The
Company shall pay any and all stamp, documentary or issuance taxes that may be payable in respect of the issue or delivery of shares of Common Stock on conversion of Securities pursuant hereto, but shall not pay any taxes measured by net income or
otherwise imposed on Holders in connection with a conversion. The Company shall not, however, be required to pay any tax that may 

  

 49 

 
be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock in a name other than that of the Holder of the Security or
Securities to be converted, and no such issue or delivery shall be made unless and until the Person requesting such issue has paid to the Company the amount of any such tax, or has established to the satisfaction of the Company that such tax has
been paid. 
 SECTION 12.09. Covenant as to Common Stock. The Company covenants that all shares of Common Stock that may be
issued upon conversion of Securities shall upon issue be newly issued (and not treasury shares) and shall be duly authorized, validly issued, fully paid and nonassessable and, except as provided in Section 12.08, the Company shall pay all
taxes, liens and charges with respect to the issue thereof. 
 SECTION 12.10. Cancellation of Converted Securities. All
Securities delivered for conversion shall be delivered to the Trustee to be cancelled by or at the direction of the Trustee, which shall dispose of the same as provided in Section 3.08. 
 SECTION 12.11. Provisions in Case of Reclassification, Consolidation, Merger or Sale of Assets. In the event that the Company shall be a
party to any transaction (including any (i) recapitalization or reclassification of the Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination of the Common Stock), (ii) any consolidation of the Company with, or merger of the Company into, any other person, any merger of another person into the Company (other than a merger that does not result in a reclassification,
conversion, exchange or cancellation of outstanding shares of Common Stock of the Company), (iii) any sale, lease, transfer, conveyance or other disposition of all or substantially all of the assets of the Company or (iv) any compulsory
share exchange) pursuant to which the Common Stock is converted into the right to receive other securities, cash or other property, then lawful provision shall be made as part of the terms of such transaction whereby the Holder of each Security then
Outstanding shall have the right thereafter to convert such Security only into (subject to funds being legally available for such purpose under applicable law at the time of such conversion) the kind and amount of securities, cash and other property
receivable upon such transaction by a holder of the number of shares of Common Stock into which such Security might have been converted immediately prior to such transaction. The Company or the Person formed by such consolidation or resulting from
such merger or that acquired such assets or that acquired the Company’s shares of Common Stock, as the case may be, shall execute and deliver to the Trustee a supplemental indenture establishing such rights. Such supplemental indenture shall
provide for adjustments that, for events subsequent to the effective date of such supplemental indenture, shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article. In the event holders of Common Stock have
the opportunity to elect the form of consideration to be received in such reclassification, change, combination, consolidation, merger, sale or conveyance, the Company will make adequate provision whereby the Holders of the Securities shall have the
opportunity, on a timely basis, to determine the form of consideration into which all of the Securities, treated as a single class, shall be convertible. The form of consideration into which all of the Securities, treated as a single class, shall be
convertible, shall be determined by the Holders of a majority of the Securities (based on principal amount outstanding thereunder) who have made an election as to such form of consideration and shall be subject to any limitations to which all of the
holders of Common Stock are subject, such as pro rata reductions applicable to any portion of the consideration payable. In the event that the Holders do not make such election on or prior to the date 10 days after receipt of notice that such
election is required, then for the purposes of this Section 12.11 the kind and amount of securities, cash or other property receivable upon such reclassification, change, combination, consolidation, merger, sale or conveyance by each Holder
shall be deemed to be the kind and amount so receivable by holders of a plurality of the Common Stock. The above provisions of this Section 12.11 shall similarly apply to successive transactions of the foregoing type. 
 SECTION 12.12. Company’s Obligation. All calculations, adjustments, conversions and other determinations under this Article 12
shall be the sole responsibility and obligation of the Company. The Trustee (a) shall have no obligation to review, verify, challenge or contest any such calculation, adjustment, conversion or other determination and (b) shall not be
liable for any default or error by the Company under this Article 12. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

  

 50 

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

			
	TRANSWITCH CORPORATION
		
	By:	 	/s/    THEODORE CHUNG        
	Name:	 	Theodore Chung
	Title:	 	Vice President and Interim Chief Financial Officer
	
	U.S. BANK NATIONAL ASSOCIATION as Trustee
		
	By:	 	/s/    EARL W. DENNISON
JR.        
	Name:	 	Earl W. Dennison Jr.
	Title:	 	Vice President

  

 51 

 [If in global form, insert legend set forth in Section 2.03] 
 [If applicable, insert restrictive legend set forth in Section 3.04(b)] 
 EXHIBIT A 
 TRANSWITCH CORPORATION 
 5.45% CONVERTIBLE NOTE DUE 2010 
  

			
	 No.                    
	 	$            
		
	 CUSIP NO.            
	 	

 TRANSWITCH CORPORATION, a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor entity under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                                        
             or registered assigns, the principal sum of
                                        
     ($                    ) at the office or agency of the Company referred to below, on September 30, 2010 in such
coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest on said principal sum semiannually on March 31 and September 30 of each year,
commencing September 30, 2007 (each an “Interest Payment Date”) and beginning to accrue as of July 6, 2007, at said office or agency, in like coin or currency, at the rate of 5.45% per annum, until the principal
hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 or September 15 (whether or not a Business Day), as the case may be, next preceding such Interest
Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities not less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture. 
 Payment of the principal of, premium, if any, and interest on this Security shall be made at the office or
agency of the Company maintained for such purpose, which initially shall be the Corporate Trust Office of the Trustee referred to on the reverse side hereof, in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts, provided that the Company may make such payment either by (i) mailing a check in the amount of such payment, payable to or upon the written order of the Person entitled thereto pursuant to
Section 3.07 of the Indenture (as defined therein) or (ii) transfer to an account maintained by the payee located inside the United States. 
 Reference is hereby made to the further provisions of this Security 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 Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

 A-1 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
  

									
	DATED:                     , 2007	 		 	TRANSWITCH CORPORATION
				
		 		 	By:	 	  
		 		 		 	Name:	 	
		 		 		 	Title:	 	

  

			
	Attest:
		
	By:	 	  
	Name:	 	
	Title:	 	

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities referred to in the within-mentioned Indenture. 
  

									
	DATED:                     , 2007	 		 	U.S. BANK NATIONAL ASSOCIATION as Trustee
				
		 		 	By:	 	  
		 		 		 		 	Authorized Signatory

  

 A-2 

 FORM OF REVERSE OF SECURITY 
 TranSwitch Corporation 
 5.45% CONVERTIBLE NOTE DUE 2010 
 This Security is one of a duly authorized issue of securities of the Company designated as its 5.45% Convertible Notes due 2010 (herein called the
“Securities”). The Securities are limited in aggregate principal amount to $25,013,000 as adjusted from time to time on the books and records of the Trustee, which may be issued under an Indenture, dated as of July 6, 2007 (the
“Indenture”), between the Company and U.S. BANK NATIONAL ASSOCIATION, as Trustee for the Holders of Securities issued under said Indenture (herein called the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders
of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. 
 The Holder of this Security
(including any Person that has a beneficial interest in this Security) and the Common Stock of the Company issuable upon conversion hereof is entitled to the benefits of a Registration Rights Agreement, dated as of July 6, 2007 executed by the
Company (the “Registration Rights Agreement”). Pursuant to the Registration Rights Agreement, the Company has agreed for the benefit of the Holders from time to time of the Registrable Securities to pay additional interest on this Security
(“Liquidated Damages”) in accordance with the terms of the Registration Rights Agreement. Whenever in this Security there is a reference, in any context, to the payment of the principal of, premium, if any, or interest on, or in
respect of, any Security, such mention shall be deemed to include mention of the payment of Liquidated Damages payable as described in this paragraph to the extent that, in such context, Liquidated Damages are, were or would be payable in respect of
such Security and express mention of the payment of Liquidated Damages (if applicable) in any provisions of this Security shall not be construed as excluding Liquidated Damages in those provisions of this Security where such express mention is not
made. 
 Subject to and upon compliance with the provisions of the Indenture, the Holder of this Security is entitled, at its option, at any
time on or before maturity of the Securities, or in case this Security or a portion hereof is called for redemption, then in respect of this Security or such portion hereof until and including, but (unless the Company defaults in making the payment
due upon redemption or repurchase) not after, the close of business on the Business Day immediately preceding the Redemption Date or Repurchase Date, as the case may be, to convert this Security (or any portion of the principal amount hereof which
is U.S. $1,000 or an integral multiple thereof), at the principal amount hereof, or of such portion, into fully paid and nonassessable shares of Common Stock of the Company at a Conversion Rate of 472.1435 shares of common stock per $1,000 principal
amount of the Securities (or at the current adjusted Conversion Rate if an adjustment has been made as provided in Article 12 of the Indenture) by surrender of this Security, duly endorsed or assigned to the Company or in blank, to the Company
at its office or agency maintained for such purpose, accompanied by the conversion notice hereon executed by the Holder hereof evidencing such Holder’s election to convert this Security, or if less than the entire principal amount hereof is to
be converted, the portion hereof to be converted, and, in case such surrender shall be made during the period from the close of business on any Regular Record Date to the opening of business on the corresponding Interest Payment Date (unless this
Security or the portion hereof being converted has been called for redemption on a Redemption Date within such period between and including such Regular Record Date and such Interest Payment Date), also accompanied by payment in funds acceptable to
the Company of an amount equal to the interest payable on such Interest Payment Date on the principal amount of this Security then being converted. Subject to the aforesaid requirement for payment of interest and, in the case of a conversion after
the close of business on any Regular Record Date and on or before the corresponding Interest Payment Date, to the right of the Holder of this Security (or any Predecessor Security) of record at such Regular Record Date to receive an installment of
interest (even if the Security has been called for redemption on a Redemption Date within such period), no payment or adjustment is to be made on conversion for interest accrued hereon or for dividends on the Common Stock issued on conversion. If a
Holder elects to convert its 

 
Securities in connection with a corporate transaction that would constitute a Non-Stock Change in Control as described in Section 12.01 of the Indenture
at any time on or prior to July 6, 2010, then, in addition to the Common Stock such Holder is entitled to receive upon such conversion, the Company will pay a Make-Whole Premium to such Holders as described in, and subject to the terms of,
Section 12.01 of the Indenture, which Make-Whole Premium shall be due and payable in accordance with Section 12.02 of the Indenture, provided that if the Share Price in such transaction is U.S. $1.83 (subject to adjustment as described
below), no Make-Whole Premium shall be paid by the Company. No fractions of shares or scrip representing fractions of shares will be issued on conversion, but instead of any fractional interest the Company shall pay a cash adjustment as provided in
Article 12 of the Indenture. The Conversion Rate and Conversion Price are subject to adjustment as provided in Article 12 of the Indenture. In addition, the Indenture provides that in case of certain reclassifications, consolidations,
mergers, sales or transfers of assets or other transactions pursuant to which the Common Stock is converted into the right to receive other securities, cash or other property, the conversion privilege shall be modified so that this Security, if then
outstanding, will be convertible thereafter, during the period this Security shall be convertible as specified above, only into the kind and amount of securities, cash and other property receivable upon the transaction by a holder of the number of
shares of Common Stock into which this Security might have been converted immediately prior to such transaction. 
 The Securities (other
than those Securities that have been converted in accordance with the terms of the Indenture) are subject to redemption at the option of the Company upon not less than 30 days’ or more than 60 days’ notice by mail, as a whole or from time
to time in part, at any time after July 6, 2009 at a redemption price of 100% of the principal amount so redeemed, together with accrued interest (including Liquidated Damages, if any) to (but not including) the Redemption Date (subject to the
right of holders of record on the Regular Record Date to receive interest on the related Interest Payment Date); provided, however, that the Securities will not be redeemable during such period unless the Closing Price per share of Common
Stock exceeds 150% of the Conversion Price for at least 20 Trading Days within a period of 30 consecutive Trading Days ending within five Trading Days immediately preceding the aforesaid notice to Holders. Any redemption of Securities must be in
integral multiples of $1,000. 
 If fewer than all of the Securities are to be redeemed, the Trustee shall select the Securities to be
redeemed in principal amounts at maturity of $1,000 or integral multiples thereof by lot, pro rata or by any other method that complies with the requirements of any exchange on which the Securities are listed or quoted and that the Trustee considers
fair and appropriate. If a portion of a Holder’s Securities is selected for partial redemption and that holder converts a portion of those Securities prior to the redemption, the converted portion shall be deemed, solely for purposes of
determining the aggregate principal amount of the Securities to be redeemed by the Company, to be of the portion selected for redemption. 
 In certain circumstances involving a Change in Control, each Holder shall have the right to require the Company to repurchase all or part of its Securities at a repurchase price equal to 100% of the principal amount thereof, together with
accrued and unpaid interest through the Repurchase Date (subject to the right of holders of record on the Regular Record Date to receive interest on the related Interest Payment Date). The repurchase price shall be paid in cash. 
 The Securities do not have the benefit of any sinking fund. 
 In the event of redemption, conversion or repurchase of this Security in part only, a new Security or Securities for the unredeemed, unconverted or unrepurchased portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof. 
 If an Event of Default shall occur and be continuing, the principal of all the Securities may
be declared due and payable in the manner and with the effect provided in Article 4 of the Indenture. 
 The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities under 

 
the Indenture at any time by the Company and the Trustee with (or, in the limited circumstances set forth in the Indenture, without) the consent of the
Holders of a majority in aggregate principal amount of the Securities at the time Outstanding. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding, on
behalf of the Holders of all the Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest (including Liquidated Damages) on this Security at the times, place and rate, and in the coin or currency, herein
prescribed or to convert this Security as provided in the Indenture. 
 As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the Corporate Trust Office duly endorsed by, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. 
 The Securities are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. 
 No service charge shall be made to a Holder for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner
hereof for all purposes and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 Interest on
this Security will accrue from the most recent date to which interest has been paid, or if no interest has been paid, from July 6, 2007. Interest (including Liquidated Damages) on this Security shall be computed on the basis of a 360-day year
of twelve 30-day months. In the event that any date on which interest (including Liquidated Damages) is payable on the Securities is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of any such delay). All references to interest in this Security as of any date shall be deemed to include additional interest, if any, accrued or payable as of such date as provided
in the Indenture or this Security. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to
them in the Indenture. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES. 

 FORM OF TRANSFER NOTICE 
 FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
 Insert Taxpayer Identification No. 
                                       
                                        
                                        
                                        
                                        
                    
 Please print or typewrite name and
address including zip code of assignee 
                                       
                                        
                                        
                                        
                                        
                    
 the within Security and all rights
thereunder, hereby irrevocably constituting and appointing                             
                                       
                              attorney to transfer said Security on the books of the Company with
full power of substitution in the premises. 
 [THE FOLLOWING PROVISION TO BE INCLUDED 
 ON ALL SECURITIES BEARING THE RESTRICTIVE LEGEND 
 SET FORTH IN SECTION 3.04(b) OF
THE INDENTURE] 
 In connection with any transfer of this Security (i) other than pursuant to a registration statement that has been
declared effective under the Securities Act (and which continues to be effective at the time of transfer) and (ii) occurring prior to the end of the period referred to in Rule 144(k) under the Securities Act, the undersigned confirms that
without utilizing any general solicitation or general advertising that: 
 [Check One] 
  

	[    ] (a)	This Security is being transferred to the Company or any Subsidiary thereof. 

 or 
  

	[    ] (b)	This Security is being transferred to a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) in compliance with the exemption from
registration under the Securities Act of 1933 provided by Rule 144A thereunder. 

 or 
  

	[    ] (c)	This Security is being transferred pursuant to the exemption from registration provided by Rule 144 under the Securities Act and documents are being furnished which comply with
the conditions of transfer set forth in this Security and the Indenture. 

 or 
  

	[    ] (d)	This Security is being transferred pursuant to the exemption from registration under the Securities Act, other than as provided above, and documents are being furnished which comply
with the conditions of transfer set forth in this Security and the Indenture. 

 If none of the foregoing boxes is checked, the Trustee or
other Registrar shall not be obligated to register this Security in the name of any Person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in Section 3.04 of the Indenture
shall have been satisfied. 
  

					
			
	Date:                             	 		 	   
		 		 	NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change
whatsoever.

 TO BE COMPLETED BY PURCHASER IF (b) ABOVE IS CHECKED. 
 The undersigned represents and warrants that it is purchasing this Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933 and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

					
			
	Date:                             	 		 	   
		 		 	NOTICE: To be executed by an executive officer

 CONVERSION NOTICE 
  

	 	To:	TRANSWITCH CORPORATION 

 The undersigned Holder of this
Security hereby irrevocably exercises the option to convert this Security, or the portion hereof (which is $1,000 or an integral multiple thereof) below designated, at any time following the date of original issuance thereof, into shares of Common
Stock in accordance with the terms of the Indenture referred to in this Security, and directs that the shares issuable and deliverable upon conversion, together with any check in payment for a fractional share and any Security representing any
unconverted principal amount hereof, be issued and delivered to the registered owner hereof unless a different name has been provided below. If shares or any portion of this Security not converted are to be issued in the name of a person other than
the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith a certificate in proper form certifying that the applicable restrictions on transfer have been complied with. Any amount required to
be paid by the undersigned on account of interest accompanies this Security. 
  

									
				
	Dated:	 		 	By:	 	  
		 		 		 		 	Signature of Registered Holder*
			
	If shares or Securities are to be registered in the name of a Person other than the Holder, please print such Person’s name and address:	 		 	Principal amount to be converted (if less than all): $            ,000

  

	
	
	   
	Name
	
	   
	Social Security or Taxpayer Identification Number
	
	   
	Street Address
	
	   
	City, State and Zip Code

	*	Signature(s) must be guaranteed by an eligible guarantor institution (banks, stock brokers, savings and loan associations and credit unions with membership in an approved signature
guarantee medallion program) pursuant to Securities and Exchange Commission Rule 17Ad-15 if shares of Common Stock are to be delivered, or unconverted Securities are to be issued, other than to and in the name of the registered owner.

 ELECTION OF HOLDER TO REQUIRE REPURCHASE 
 (1) Pursuant to Article 11.01 of the Indenture, the undersigned hereby elects to have this Security repurchased by the Company. 
 (2) The undersigned hereby directs the Trustee or the Company to pay it or
                     an amount in cash equal to 100% of the principal amount to be repurchased (as set forth below), plus interest (including
Liquidated Damages, if any) accrued to the Repurchase Date, as provided in the Indenture. 
 Dated: 

	
	
	   
	
	   
	Signature(s)
	
	Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934.
	
	   
	Signature Guaranteed
	
	Principal amount to be repurchased (at least U.S. $1,000 or an integral multiple of $1,000 in excess thereof):
                        
	
	Remaining principal amount following such repurchase (not less than U.S. $1,000):
                

 NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the face of this
Security in every particular, without alteration or any change whatsoever.FORM OF EXCHANGE AND PURCHASE AGREEMENT

 EXHIBIT 10.1 
 EXCHANGE AND PURCHASE AGREEMENT 
 This Exchange and Purchase Agreement (this
“Agreement”) is made and entered into as of this 29th day of June, 2007, by and between                  (the “Holder”), and TranSwitch
Corporation, a Delaware corporation (the “Company”). 
 RECITALS 
 WHEREAS, the Holder currently holds
$[            ] principal amount of the Company’s 5.45% Convertible Plus Cash NotesSM due 2007 (the “Outstanding Notes”) issued pursuant to the Indenture, dated as of September 30, 2003, between the Company and U.S. Bank National Association, as trustee;

 WHEREAS, the Holder desires to exchange the Outstanding Notes for an equal principal amount of the Company’s 5.45% Convertible Notes
due September 30, 2010 (the “Exchange Notes”) to be issued pursuant to the Indenture (as defined below) on the terms and conditions set forth in this Agreement (the “Note Exchange”); 
 WHEREAS, the Company desires to issue to the Holder $[            ] principal amount of
Exchange Notes in exchange for the Outstanding Notes in the Note Exchange; 
 WHEREAS, the Company desires to issue and sell to the Holder
$[            ] principal amount of the Company’s 5.45% Convertible Notes due September 30, 2010, which shall have identical terms (except for principal amount) as those set forth
in the Exchange Notes (the “Additional Notes,” and together with the Exchange Notes, the “New Notes”) at a purchase price of $1,000 per $1,000 principal amount of Additional Notes; 
 WHEREAS, the Holder desires to purchase $[            ] principal amount of Additional Notes
at a purchase price of $1,000 per $1,000 principal amount of Additional Notes on the terms and conditions set forth in this Agreement (the “Sale of Additional Notes” and together with the Note Exchange, the
“Transaction”); 
 WHEREAS, the New Notes will be issued pursuant to the Indenture, to be entered into by the Company and
the Trustee named therein (the “Trustee”), substantially in the form of Exhibit A hereto (the “Indenture”); 
 WHEREAS, in connection with the issuance of the New Notes the Company will agree to provide the Holder registration rights pursuant to the Registration Rights Agreement, to be entered into by the Company and the
Holder, the other holders of Outstanding Notes exchanging such notes for Exchange Notes and any other purchasers of the New Notes to be issued by the Company, if any (the “Registration Rights Agreement” and, together with this
Agreement, the Other Agreements (as defined below), the New Notes and the Indenture, the “Transaction Documents”), substantially in the form of Exhibit B hereto; 
 NOW, THEREFORE, in consideration of the premises and the agreements set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
 ARTICLE I 
 Exchange 
 Section 1.1 Exchange
and Sale of the New Notes. 
 (a) Upon the terms and subject to the conditions of this Agreement, at the Closing (as
defined herein), the Company shall issue to and exchange with the Holder, and the Holder agrees to accept from the Company, $[            ] in aggregate principal amount of Exchange Notes,
together with all accrued and unpaid interest paid in cash on the Outstanding Notes to, but excluding, the Closing Date, for $[            ] aggregate principal amount of Outstanding Notes.

  

 1 

 (b) Upon the terms and subject to the conditions of this Agreement, at the Closing, the
Company shall sell to the Holder, and the Holder agrees to purchase from the Company, $[            ] aggregate principal amount of Additional Notes at a purchase price of 100% of the
principal amount thereof (the “Purchase Price”). 
 Section 1.2 Closing. Subject to the terms and conditions
hereof, the closing of the transactions contemplated by this Agreement (the “Closing”) shall take place on the third business day after the date hereof at the offices of Brown Rudnick Berlack Israels LLP, One Financial Center,
Boston, Massachusetts 02111, or on such other date and at such other place as the parties may agree in writing (the “Closing Date”). At the Closing, (i) the Holder shall deliver or cause to be delivered to the Company
(a) all of such Holder’s right, title and interest in and to all of the Outstanding Notes, and all documentation related thereto, and whatever documents of conveyance or transfer may be necessary or desirable to transfer to and confirm in
the Company all right, title and interest in and to the Outstanding Notes and (b) the Purchase Price, and (ii) the Company shall issue to the Holder the New Notes and pay to the Holder in cash by wire transfer of immediately available
funds an amount equal to the accrued and unpaid interest on the Holder’s Outstanding Notes to, but excluding, the day of the Closing, provided, however, that the parties acknowledge that the issuance of the Exchange Notes to some or all of the
Holders may be delayed due to procedures and mechanics within the system of The Depository Trust Company (“DTC”) and that such delay will not be a default under this Agreement so long as (i) the Company is using its best
efforts to effect the issuance of one or more global notes representing the Exchange Notes, (ii) such delay is no longer than three (3) business days and (iii) interest shall accrue on such Exchange Notes from the date of the
Indenture. 
 Section 1.3 Conditions to Closing. (i) The obligation of the Holder hereunder to consummate the transactions
contemplated hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Holder’s sole benefit and may be waived by the Holder at any time
in its sole discretion by providing the Company with prior written notice thereof: 
 (a) The Company shall have executed and
delivered this Agreement to Holder; 
 (b) The Company and the Trustee shall have executed and delivered the Indenture;

 (c) The Company shall have executed and delivered to Holder the New Notes in the aggregate principal amount set forth in
Section 1.1; 
 (d) The Company shall have executed and delivered the Registration Rights Agreement to Holder;

 (e) The Company shall have submitted an additional share listing notification form (along with any required supporting
documentation) for the shares of the Company’s Common Stock, $.001 par value per share, (“Common Stock”) issuable upon conversion of the New Notes with the NASDAQ Global Market.; 
 (f) The Company shall have delivered to the Holder and Thomas Weisel Partners LLC a certificate of the Company, dated the Closing Date,
executed by the secretary of the Company certifying in such capacity and on behalf of the Company (i) as to the incumbency and signature of the officer of the Company who executed this Agreement and the New Notes; and (ii) as to the
adoption of resolutions of the board of directors of the Company which are in full force and effect on the Closing Date, authorizing (x) the execution and delivery of this Agreement, the Indenture, the Registration Rights Agreement and the New
Notes, and (y) the performance of the obligations of the Company hereunder and thereunder; 
 (g) The Company shall have
delivered to the Holder and Thomas Weisel Partners LLC a certificate of the Chief Executive Officer or Chief Financial Officer of the Company, dated the Closing Date, to the effect that the representations and warranties of the Company in this
Agreement are true and correct on and as of the Closing Date with the same effect as if made on the Closing Date and that the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at
or prior to the Closing Date; 
  

 2 

 (h) Simultaneously with the Closing, the Company shall have issued an aggregate principal
amount of New Notes that, together with notes issued to Other Holders (as defined below) is not less than $25,000,000, and of which at least $21,234,000 aggregate principal amount shall be Exchange Notes; 
 (i) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date, there shall have been no suspension or
material limitation of trading in the Common Stock on the NASDAQ Global Market; 
 (j) The New Notes shall have been approved
for trading on The PORTAL Market of the National Association of Securities Dealers, Inc., subject only to notice of issuance at or prior to the time of purchase; 
 (k) The Company shall have obtained a Committee on Uniform Securities Identification Procedures number (CUSIP number) for the New Notes;

 (l) The New Notes shall satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act of 1933, as amended
(the “Securities Act”); and 
 (m) The Company shall have delivered to Holder and Thomas Weisel Partners LLC
the opinion of Brown Rudnick Berlack Israels LLP, dated as of the Closing Date, in substantially the form of Exhibit C attached hereto. 
 (ii) The obligation of the Company hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these
conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder with prior written notice thereof: 
 (a) The Holder shall have executed and delivered to the Company this Agreement; 
 (b) The Holder shall have executed and delivered to the Company the Registration Rights Agreement; and 
 (c) The Holder shall have delivered, or caused to be delivered, to the Company the Outstanding Notes being exchanged pursuant to this
Agreement and the Purchase Price in accordance with the written instructions of the Company. 
 Section 1.4 Exchange and Sale of
Additional Notes. Simultaneously with the Closing, the Company (i) shall enter into one or more agreements substantially identical to this Agreement (the “Other Agreements”) with one or more holders (the “Other
Holders”) of Outstanding Notes to exchange Exchange Notes with one or more Other Holders for Outstanding Notes, subject to the terms of the Indenture, in an aggregate principal amount that, together with the Exchange Notes issued pursuant
to this Agreement, is not less than $25,000,000, and (ii) may issue Additional Notes pursuant to one or more Other Agreements, subject to the terms of the Indenture, with one or more Other Holders and/or any new Holders, so long as the purchase
price for any such Additional Notes is not less than $1,000 per $1,000 principal amount of Additional Notes. 
 ARTICLE II 

Representations and Warranties of the Holder 
 The Holder hereby makes the following representations and warranties, each of which is true and correct on the date hereof and shall survive the Closing Date and the transactions contemplated hereby to the extent set
forth herein. 
 Section 2.1 Existence and Power. 
 (a) The Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has the
power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby. 
  

 3 

 (b) The execution of this Agreement by the Holder and the consummation by the Holder of
the transactions contemplated hereby do not and will not constitute or result in a breach, violation, conflict or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license to which the Holder is
a party, whether written or oral, express or implied, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or
similar body on the part of the Holder or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Holder, except for such breaches, conflicts, defaults, rights or violations which would not,
individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations hereunder. 
 Section 2.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Holder and constitutes a legal, valid and binding obligation of the Holder,
enforceable against the Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’
rights generally, and (b) general principles of equity. 
 Section 2.3 Title to Outstanding Notes. The Holder is a beneficial
owner of and has the investment power, including the power to dispose of, and has good and valid title to, the Outstanding Notes being exchanged by such Holder hereby, free and clear of any mortgage, lien, pledge, charge, security interest,
encumbrance, title retention agreement, option, equity or other adverse claim thereto. The Holder has not, in whole or in part, (i) assigned, transferred, hypothecated, pledged or otherwise disposed of the Outstanding Notes or its rights in
such Outstanding Notes being exchanged or redeemed by such Holder hereby, or (ii) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to such Outstanding Notes. 

Section 2.4 Investment Decision. The Holder is either (i) a “qualified institutional buyer” within the meaning of
Rule 144A under the Securities Act or (ii) an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act, and in either case was not organized for the purpose of acquiring the New
Notes or the shares of Common Stock, into which the New Notes may be converted (the “Underlying Common Stock”). The Holder (or its authorized representative) is has had the opportunity to review the Company’s filings currently
filed with the Securities and Exchange Commission (the “SEC”), including, without limitation, the Company’s Annual Report on Form 10-K filed on March 6, 2007, the Company’s Quarterly Report on Form 10-Q filed on
May 10, 2007, the Company’s Definitive Proxy Statement filed on April 17, 2007, and the Company’s Current Reports on Form 8-K filed on January 12, 2007, January 16, 2007, January 24,
2007, March 6, 2007, April 27, 2007, and May 25, 2007 (all of such filings currently filed with the SEC referred to, collectively, as the “SEC Documents”). The Holder has reviewed copies of each of the
Indenture and the Registration Rights Agreement, including a copy of the Indenture marked to show the differences between such document and the indenture related to the Outstanding Notes, and has had an opportunity to ask questions of the Company
and to obtain from representatives of the Company such information as the Holder has deemed necessary to determine the changes reflected in each such document, including the changes to the terms of the New Notes compared with the Outstanding Notes.
The Holder has had such opportunity to ask questions of the Company and its representative and to obtain from representatives of the Company such information as is necessary to permit it to evaluate the merits and risks of its investment in the
Company and has independently, without reliance upon any representatives of the Company and based on such information as the Holder deemed appropriate, made its own analysis and decision to enter into this Agreement. The Holder has had the
opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the exchange of the Outstanding Notes and/or the purchase of new Notes pursuant hereto and to make an informed investment
decision with respect to such exchange and/or purchase. No opportunity of the Holder to review the SEC Documents or any other documents, to ask questions or to consult with advisors, nor any other due diligence investigations or inquiries by the
Holder or its advisors or representatives shall modify, amend or affect the Holder’s right to rely upon the Company’s representations and warranties contained herein or in any of the other Transaction Documents. 
  

 4 

 Section 2.5 Purchase Entirely for Own Account. The Holder is acquiring the New Notes for its own
account and not towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; provided, however that by making the representations herein, the Holder
does not agree to hold any of such New Notes for any minimum or other specific term and reserves the right to dispose of such New Notes or the Underlying Common Stock at any time in accordance with or pursuant to a registration statement or an
exemption under the Securities Act and pursuant to the applicable terms of this Agreement. The Holder is acquiring the New Notes to be issued to the Holder hereunder in the ordinary course of its business. The Holder does not presently have any
understanding, directly or indirectly, with any person to distribute any of the New Notes to be issued to the Holder hereunder. 
 Section 2.6 Restricted Securities. The Holder understands that neither the New Notes nor the Underlying Common Stock have been registered under the Securities Act, and are being issued hereunder by reason of a specific exemption
from the registration provisions of the Securities Act which depends upon, among other things, the accuracy of certain of the Holder’s representations as expressed herein. The Holder understands that the New Notes (and the Underlying Common
Stock) are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Holder must hold the New Notes (and the Underlying Common Stock) indefinitely unless they are registered with
the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Holder further acknowledges that if an exemption from registration or qualification is available, it may be
conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the New Notes (and the Underlying Common Stock), and on requirements relating to the Company which may be outside the
Holder’s control, and which, except as set forth in the Registration Rights Agreement, the Company is under no obligation and may not be able to satisfy. 
 Section 2.7 No Public Market. The Holder understands that no public market now exists for the New Notes, and that the Company has made no assurance that a public market will ever exist for the New Notes.

 Section 2.8 Legends. The Holder understands that the New Notes and any shares of Underlying Common Stock will bear one or more
of the legends required by the Indenture, and the removal of such legends shall be governed by the terms of the Indenture. 
 Section 2.9 Affiliate Status. The Holder is not, and has not been during the preceding three months, an “affiliate” of the Company as such term is defined in Rule 144 under the Securities Act. 
 ARTICLE III 
 Representations,
Warranties and Covenants of the Company 
 The Company hereby makes the following representations, warranties, and covenants each of
which is true and correct on the date hereof and shall survive the date of the Closing and the transactions contemplated hereby to the extent set forth herein. 
 Section 3.1 Existence and Power. 
 (a) The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and has the power, authority and capacity to own its properties, to carry on its business as currently conducted and proposed to be conducted, to execute and
deliver this Agreement and the other Transaction Documents, to perform the Company’s obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. 
 (b) The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (i) do not require the consent, approval, authorization, order, registration or qualification of, or filing 

  

 5 

 
with, any governmental or self-regulatory authority or court, or body or arbitrator having jurisdiction over the Company other than as contemplated in the
Registration Rights Agreement, and the filings with the NASDAQ Global Market, DTC and The PORTAL Market expressly contemplated hereby; and (ii) do not and will not constitute or result in a breach, violation or default under any note, bond,
mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, or with the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of
Incorporation”) or Bylaws, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of the NASDAQ Global Market, any court, administrative or regulatory body, governmental or self-regulatory
authority, arbitrator, mediator or similar body on the part of the Company or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Company or any other party thereto. 
 Section 3.2 Valid and Enforceable Agreement; Authorization. The execution, delivery and performance of this Agreement and the other
Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including the issuance of up to $25,013,000 in principal amount of the New Notes, and the reservation for issuance and the
issuance of the Underlying Common Stock have been duly authorized by the Board of Directors of the Company, and no further consent or authorization is required therefor by the Company or its Board of Directors or stockholders under the Certificate
of Incorporation, the Company’s Bylaws, applicable law, the rules of the NASDAQ Global Market or otherwise. This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’
rights generally, and (b) general principles of equity. As of the Closing Date, each of the other Transaction Documents will have been duly executed and delivered by the Company and will constitute a legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of
creditors’ rights generally, and (b) general principles of equity. 
 Section 3.3 Capitalization. At the Closing, the
authorized capital stock of the Company will consist of 300,000,000 shares of Common Stock, par value $0.001 per share, and 1,000,000 shares of Preferred Stock, par value $0.01 per share. As of the close of business on June 28, 2007, there were
132,896,800 shares of Common Stock issued and outstanding. All such issued and outstanding shares have been duly authorized and validly issued, and are fully paid and non-assessable, and were issued in compliance with all applicable state and
federal laws concerning the issuance of securities and all applicable pre-emptive, participation, rights of first refusal and other similar rights. There are no shares of Preferred Stock issued or outstanding. 
 Section 3.4 Valid Issuance of the New Notes. The New Notes, when issued, sold and delivered in accordance with the terms and for the
consideration set forth in this Agreement and the Indenture, will constitute legal and binding obligations of the Company, be validly issued and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable
state and federal securities laws and liens or encumbrances created by or imposed by the Holder, and enforceable against the Company in accordance with their terms, except that such enforcement may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. Assuming the accuracy of the representations of the Holder in Section 2 of
this Agreement and subject to the filing of Form D pursuant to Regulation D under the Securities Act and state securities laws (which filings the Company hereby covenants it shall timely make), the New Notes will be issued in compliance in
all material respects with all applicable federal and state securities laws. The Underlying Common Stock has been duly reserved for issuance, and upon issuance in accordance with the terms of the Certificate of Incorporation will be validly issued,
fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under applicable federal and state securities laws and liens or encumbrances created by or imposed by the Holder. Based in part upon the
representations of the Holder in Section 2 of this Agreement, the Underlying 

  

 6 

 
Common Stock, when issued and delivered in accordance with the terms of the New Notes and the Indenture, will be issued in compliance in all material
respects with all applicable federal and state securities laws. Neither the Company, nor any of its subsidiaries or affiliates, nor, to the Company’s knowledge, any Person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of the New Notes or the Underlying Common Stock. None of the Company, its subsidiaries, any of their affiliates
and any Persons acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of any of the New Notes or the Underlying
Common Stock under the Securities Act or cause this offering of the New Notes and the Underlying Common Stock to be integrated with prior offerings by the Company for purposes of any applicable stockholder approval provisions, including, without
limitation, under the rules and regulations of the NASDAQ Global Market. None of the Company, its subsidiaries, their affiliates and any Persons acting on their behalf will take any action or steps referred to in the preceding sentence that would
require registration of any of the New Notes or the Underlying Common Stock under the Securities Act or cause the offering of the New Notes or the Underlying Common Stock to be integrated with other offerings for purposes of any applicable
stockholder approval provisions. For purposes hereof, “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization or a government or any department or
agency thereof or any other legal entity. 
 Section 3.5 SEC Documents; Financial Statements. The Company timely filed the SEC
Documents with the SEC, and since June 29, 2006, has timely filed all other reports, schedules, forms, statements and other documents required to be filed by with the SEC pursuant to the reporting requirements of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). As of their respective dates, the SEC Documents complied in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and
regulations of the SEC thereunder applicable to such SEC Documents. As of their respective dates, the SEC Documents did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading. The audited consolidated financial statements and unaudited interim financial statements of the Company included in the SEC Documents comply as
to form in all material respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto. The financial statements and schedules included in the SEC Documents: have been prepared in
accordance with generally accepted accounting principles applied on a consistent basis (except as may be indicated therein or in the notes thereto); present fairly, in all material respects, the consolidated financial position of the Company and its
subsidiaries as of the dates thereof and the consolidated results of their operations and cash flow for the periods then ended subject, in the case of the unaudited interim financial statements, to normal year-end audit adjustments and any other
adjustments described therein and the fact that certain information and notes have been condensed or omitted in accordance with the Exchange Act and the rules promulgated thereunder; and are in all material respects, in accordance with the books of
account and records of the Company. The Company is eligible to use SEC Form S-3 for a primary issuance of Common Stock. 
 Section 3.6
Legal Proceedings. No legal or governmental proceedings or investigations are pending or, to the knowledge of the Company, threatened to which the Company or any of its subsidiaries is a party or to which the property of the Company or any of
its subsidiaries is subject that are not described in the SEC Documents, except for such proceedings or investigations which would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. As used in this
Agreement, the term “Material Adverse Effect” shall mean when used in respect of any matter relating to the Company, a material adverse effect (i) on the business, condition (financial or otherwise), properties or results of
operations of the Company and its subsidiaries, considered as one enterprise, (ii) on the transactions contemplated by this Agreement or the other Transaction Documents or (iii) on the authority or ability of the Company to enter into and
perform its obligations under this Agreement and the other Transaction Documents. 
  

 7 

 Section 3.7 Compliance with Laws; Permits. The Company and its subsidiaries possess all
certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to have such certificates, authorizations and permits
would not reasonably be expected to have a Material Adverse Effect, and none of the Company and its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which
would reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. The Company and its subsidiaries are and have been in compliance with all applicable laws, statutes, ordinances, rules, regulations, orders, judgments,
decisions, decrees, standards, and requirements relating to their respective businesses, except where any such non-compliance would not reasonably be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, the
Company is not in violation of any of the material rules, regulations or requirements of the NASDAQ Global Market and has no knowledge of any facts or circumstances that would reasonably lead to delisting or suspension of the Common Stock by the
NASDAQ Global Market in the foreseeable future. The Company has received no communication, written or oral, from the SEC or the NASDAQ Global Market regarding the suspension or delisting of the Common Stock from the NASDAQ Global Market. 

Section 3.8 No Material Adverse Effect. Since the respective dates as of which information is given in the SEC Documents, there has not
been any event, development or occurrence having a Material Adverse Effect on the Company or its subsidiaries, except as reflected or disclosed in a subsequent SEC Document. 
 Section 3.9 Disclosure. On or before the first business day following the date of this Agreement, the Company shall issue a press release and file
a Form 8-K with the SEC disclosing all material terms of the transactions contemplated hereby (and, in the case of such Form 8-K, including the Transaction Documents as exhibits thereto) and any other material nonpublic information delivered by the
Company or its agents or counsel to the Holder or any agent acting on its behalf. Upon the filing of such press release and Form 8-K, no Holder shall be in possession of any information that constitutes or could reasonably be expected to constitute
material, nonpublic information provided to the Holder by the Company or any agent acting on its behalf. The Company shall not, and shall cause each of its subsidiaries and its and each of their respective officers, directors, employees and agents
not to, provide the Holder with any material, nonpublic information regarding the Company or any of its subsidiaries from and after the filing of such Form 8-K with the SEC without the express written consent of the Holder. The Company understands
and confirms that the Holder will rely on the foregoing representations in effecting the transactions contemplated hereby. 
 ARTICLE IV

 Miscellaneous Provisions 
 Section 4.1 Notice. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable
overnight courier service (charges prepaid) to such address and to the attention of such person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder when delivered
personally, three (3) business days after deposit in the U.S. mail postage prepaid with return receipt requested and two (2) business days after deposit postage prepaid with a reputable overnight courier service for delivery on the next
business day. 
 Section 4.2 Entire Agreement. This Agreement and the other documents and agreements executed in connection with
the transaction contemplated hereby embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written agreements, representations, warranties,
contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets, emails or
draft documents. 
  

 8 

 Section 4.3 Assignment; Binding Agreement. This Agreement and the various rights and
obligations arising hereunder shall inure to the benefit of and be binding upon the parties hereto and their successors and assigns. 
 Section 4.4 Counterparts. This Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same
instrument. Any counterpart or other signature hereupon delivered by facsimile or other electronic transmission shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party. 
 Section 4.5 Remedies Cumulative. Except as otherwise provided herein, all rights and remedies of the parties under this Agreement are
cumulative and without prejudice to any other rights or remedies available at law or in equity. 
 Section 4.6 Governing Law. This
Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the State of New York, without reference to its choice of law rules. Each party hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. 
 Section 4.7 No Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or
create in any person not a party hereto, or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto. 
 Section 4.8 Waiver; Consent. This Agreement may not be changed, amended, terminated, augmented, rescinded or discharged (other than in
accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective or binding unless such
waiver shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition or other provision of this Agreement, or any breach thereof shall be
deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for any noncompliance or breach be deemed to be a
waiver of a party’s rights and remedies with respect to such noncompliance or breach. 
 Section 4.9 Word Meanings. The
words such as “herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The
singular shall include the plural, and vice versa, unless the context otherwise requires. The masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires. 
 Section 4.10 No Broker. Each party represents and warrants that it has not engaged any third party as broker or finder or incurred or become
obligated to pay any broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement other than such fees and expenses for which it shall be solely responsible. 
 Section 4.11 Further Assurances. The Holder and the Company each hereby agree to execute and deliver, or cause to be executed and delivered,
such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement. 
  

 9 

 Section 4.12 Costs and Expenses. The Holder and the Company shall each pay their own
respective costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement, including, but not limited to, attorneys’ fees. 
 Section 4.13 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof. 
 Section 4.14 Severability. If any one or more of the provisions contained herein, or the application thereof
in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 Section 4.15 Reasonable Best Efforts. Each party shall use its reasonable best efforts to timely to satisfy each of the
conditions to be satisfied by it as provided in Section 1.3 of this Agreement. 
 Section 4.16 Indemnification. In
consideration of the Holder’s execution and delivery of this Agreement and acquiring the New Notes thereunder and in addition to all of the Company’s other obligations under this Agreement and the other Transaction Documents, the Company
shall defend, protect, indemnify and hold harmless the Holder and all of the Holder’s stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other
representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”), as incurred, from and against any and all actions, causes of action,
suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including
reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made
by the Company in this Agreement or any of the other Transaction Documents, or (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement or any of the other Transaction Documents. To the extent that the
foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. 

Section 4.17. Independent Nature of Obligations and Rights. The obligations of each of the Holder and the Other Holders under any
Transaction Documents are several and not joint with the obligations of any other such Person, and the Holder shall not be responsible in any way for the performance of the obligations of any Other Holder under any of the Transaction Documents.
Nothing contained herein or in any other Transaction Document, and no action taken by any of the Holder and the Other Holders pursuant hereto or thereto, shall be deemed to constitute the Holder and the Other Holders as a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that they are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents, and the
Company acknowledges that they are not acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents. Each of the Holder and the Other
Holders shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Document, and it shall not be necessary for any other Person to be
joined as an additional party in any proceeding for such purpose. 
  

 10 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date
first above written. 
  

			
	HOLDER:
	
	  
		
	By:	 	  
	Name:	 	
	Title:	 	
	
	THE COMPANY:
	
	TRANSWITCH CORPORATION
		
	By:	 	  
	Name:	 	
	Title:	 	

 Exhibit A 
 Form of Indenture 

 Exhibit B 
 Form of Registration Rights Agreement 

 Exhibit C 
 Form of Opinion of Brown Rudnick Berlack Israels LLP 
  

	1.	The Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Delaware with corporate power and authority to own its
properties and conduct its business as described in the Company’s most recent filing on Form 10-K with the Securities and Exchange Commission (the “SEC”). 

  

	2.	The Company has an authorized equity capitalization as set forth in its Amended and Restated Certificate of Incorporation, filed as Exhibit 3.1 to the Company’s Quarterly
Report on Form 10-Q for the quarter ended March 31, 2005, filed May 9, 2005. 

  

	3.	The shares of Common Stock initially issuable upon conversion of the New Notes (the “Conversion Shares”) have been duly authorized and reserved for issuance upon such
conversion and, when issued and delivered in accordance with the provisions of the New Notes and the Indenture, will be validly issued and fully paid and non-assessable. The stockholders of the Company have no preemptive rights with respect to the
issuance of the Conversion Shares under the Certificate of Incorporation, Bylaws or DGCL. 

  

	4.	To our knowledge, except as disclosed in the SEC Documents, there are no pending actions, suits or proceedings to which the Company is a party nor are there any such actions, suits
or proceedings overtly threatened in writing against the Company that would have a material adverse effect on the business, results of operations, or financial condition of the Company and its subsidiaries, taken as a whole.

  

	5.	The Exchange Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company
in accordance with its terms. 

  

	6.	The New Notes being issued on the date hereof have been duly authorized by the Company and, when executed by the Company and authenticated by the Trustee in the manner provided for
in the Indenture and issued and delivered to the Holder in accordance with the terms of the Exchange Agreement, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms.

  

	7.	The Indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms. 

  

	8.	The Registration Rights Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against
the Company in accordance with its terms. 

  

	9.	The issuance and delivery of the Notes being delivered on the date hereof, the issuance of the Conversion Shares, if any (assuming conversion on the date hereof pursuant to the
terms of the New Notes) and the execution and delivery of, and the performance by the Company of its obligations under, the Indenture, the New Notes, the Exchange and Purchase Agreement and the other Transaction Documents and the consummation of the
transactions therein contemplated do not conflict with and did not result in a breach or violation by the Company of any of the terms or provisions of, or constitute a default under any material mortgage, indenture, agreement, instrument or contract
to which the Company is a party or by which it is bound, nor will such actions result in any violation by the Company of (i) the Certificate of Incorporation or the Bylaws, (ii) any U.S. federal or Delaware (under the DGCL) or New York
state statute applicable to the Company or the transactions contemplated by the Transaction Documents, (iii) any rule or any regulation known to us of any U.S. federal or Delaware (under the DGCL) or New York state court or governmental agency
or body having jurisdiction over the Company or any of its properties, or (iv) any order, judgment or decree known to us to which the Company is a party. 

	10.	No consent, approval, authorization, order, registration or qualification of or with any U.S. federal or Delaware (under the DGCL) state court or governmental agency or body is
required for the issue and sale of the New Notes on the date hereof or the consummation by the Company of the transactions contemplated by the Exchange Agreement, the Indenture or the other Transaction Documents, except as may be expressly
contemplated thereby. 

  

	11.	Assuming the filing of a Form D in accordance with Regulation D under the Securities Act, no registration of the New Notes or the Conversion Shares under the Securities
Act is required for the offer, sale and delivery of the New Notes by the Company to the Holder pursuant to the Exchange and Purchase Agreement (it being understood that no opinion is expressed as to any resale of the New Notes or the Conversion
Shares). 

  

	12.	The Company is not required to register as an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended.

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