Document:

EX-4.1

 Exhibit 4.1 
  

 
  

HERCULES CAPITAL, INC. 

AND 
 U.S. BANK NATIONAL
ASSOCIATION, 
 as Trustee 

INDENTURE 
 Dated as of
January 25, 2017 
 4.375% Convertible Senior Notes due 2022 

 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	
	ARTICLE 1 DEFINITIONS	  
			
	 Section 1.01
	 	Definitions	  	 	1	  
	 Section 1.02
	 	References to Interest	  	 	12	  
	
	ARTICLE 2 ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF
NOTES	  
			
	 Section 2.01
	 	Designation and Amount	  	 	12	  
	 Section 2.02
	 	Form of Notes	  	 	12	  
	 Section 2.03
	 	Date and Denomination of Notes; Payments of Interest and Defaulted Amounts	  	 	13	  
	 Section 2.04
	 	Execution, Authentication and Delivery of Notes	  	 	14	  
	 Section 2.05
	 	Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary	  	 	15	  
	 Section 2.06
	 	Mutilated, Destroyed, Lost or Stolen Notes	  	 	20	  
	 Section 2.07
	 	Temporary Notes	  	 	20	  
	 Section 2.08
	 	Cancellation of Notes Paid, Converted, Etc	  	 	21	  
	 Section 2.09
	 	CUSIP Numbers	  	 	21	  
	 Section 2.10
	 	Additional Notes; Repurchases	  	 	21	  
	
	ARTICLE 3 SATISFACTION AND DISCHARGE	  
			
	 Section 3.01
	 	Satisfaction and Discharge	  	 	22	  
	
	ARTICLE 4 PARTICULAR COVENANTS OF THE COMPANY	  
			
	 Section 4.01
	 	Payment of Principal and Interest	  	 	22	  
	 Section 4.02
	 	Maintenance of Office or Agency	  	 	22	  
	 Section 4.03
	 	Appointments to Fill Vacancies in Trustee’s Office	  	 	23	  
	 Section 4.04
	 	Provisions as to Paying Agent	  	 	23	  
	 Section 4.05
	 	Existence	  	 	24	  
	 Section 4.06
	 	Rule 144A Information Requirement and Annual Reports	  	 	24	  
	 Section 4.07
	 	Investment Company Act	  	 	26	  
	 Section 4.08
	 	Stay, Extension and Usury Laws	  	 	26	  
	 Section 4.09
	 	Statement as to Compliance	  	 	26	  
	 Section 4.10
	 	Further Instruments and Acts	  	 	26	  
	
	ARTICLE 5 LISTS OF HOLDERS AND REPORTS BY THE COMPANY AND
THE TRUSTEE	  
			
	 Section 5.01
	 	Lists of Holders	  	 	27	  
	 Section 5.02
	 	Preservation and Disclosure of Lists	  	 	27	  

  
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	ARTICLE 6 DEFAULTS AND REMEDIES	  
			
	 Section 6.01
	 	Events of Default	  	 	27	  
	 Section 6.02
	 	Acceleration; Rescission and Annulment	  	 	28	  
	 Section 6.03
	 	Additional Interest	  	 	29	  
	 Section 6.04
	 	Payments of Notes on Default; Suit Therefor	  	 	30	  
	 Section 6.05
	 	Application of Monies Collected by Trustee	  	 	31	  
	 Section 6.06
	 	Proceedings by Holders	  	 	32	  
	 Section 6.07
	 	Proceedings by Trustee	  	 	33	  
	 Section 6.08
	 	Remedies Cumulative and Continuing	  	 	33	  
	 Section 6.09
	 	Direction of Proceedings and Waiver of Defaults by Majority of Holders	  	 	33	  
	 Section 6.10
	 	Notice of Defaults	  	 	34	  
	 Section 6.11
	 	Undertaking to Pay Costs	  	 	34	  
	
	ARTICLE 7 CONCERNING THE TRUSTEE	  
			
	 Section 7.01
	 	Duties and Responsibilities of Trustee	  	 	35	  
	 Section 7.02
	 	Reliance on Documents, Opinions, Etc	  	 	36	  
	 Section 7.03
	 	No Responsibility for Recitals, Etc	  	 	37	  
	 Section 7.04
	 	Trustee, Paying Agents, Conversion Agents, Bid Solicitation Agent or Note Registrar May Own Notes	  	 	37	  
	 Section 7.05
	 	Monies and Shares of Common Stock to Be Held in Trust	  	 	38	  
	 Section 7.06
	 	Compensation and Expenses of Trustee	  	 	38	  
	 Section 7.07
	 	Officers’ Certificate as Evidence	  	 	39	  
	 Section 7.08
	 	Eligibility of Trustee	  	 	39	  
	 Section 7.09
	 	Resignation or Removal of Trustee	  	 	39	  
	 Section 7.10
	 	Acceptance by Successor Trustee	  	 	40	  
	 Section 7.11
	 	Succession by Merger, Etc	  	 	41	  
	 Section 7.12
	 	Trustee’s Application for Instructions from the Company	  	 	41	  
	
	ARTICLE 8 CONCERNING THE HOLDERS	  
			
	 Section 8.01
	 	Action by Holders	  	 	42	  
	 Section 8.02
	 	Proof of Execution by Holders	  	 	42	  
	 Section 8.03
	 	Who Are Deemed Absolute Owners	  	 	42	  
	 Section 8.04
	 	Company-Owned Notes Disregarded	  	 	43	  
	 Section 8.05
	 	Revocation of Consents; Future Holders Bound	  	 	43	  
	
	ARTICLE 9 HOLDERS’ MEETINGS	  
			
	 Section 9.01
	 	Purpose of Meetings	  	 	43	  
	 Section 9.02
	 	Call of Meetings by Trustee	  	 	44	  
	 Section 9.03
	 	Call of Meetings by Company or Holders	  	 	44	  
	 Section 9.04
	 	Qualifications for Voting	  	 	44	  
	 Section 9.05
	 	Regulations	  	 	44	  
	 Section 9.06
	 	Voting	  	 	45	  
	 Section 9.07
	 	No Delay of Rights by Meeting	  	 	45	  

  
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	ARTICLE 10 SUPPLEMENTAL INDENTURES	  
			
	 Section 10.01
	 	Supplemental Indentures Without Consent of Holders	  	 	45	  
	 Section 10.02
	 	Supplemental Indentures with Consent of Holders	  	 	46	  
	 Section 10.03
	 	Effect of Supplemental Indentures	  	 	47	  
	 Section 10.04
	 	Notation on Notes	  	 	47	  
	 Section 10.05
	 	Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee	  	 	48	  
	
	ARTICLE 11 CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE	  
			
	 Section 11.01
	 	Company May Consolidate, Etc. on Certain Terms	  	 	48	  
	 Section 11.02
	 	Successor Corporation to Be Substituted	  	 	48	  
	 Section 11.03
	 	Opinion of Counsel to Be Given to Trustee	  	 	49	  
	
	ARTICLE 12 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	  
			
	 Section 12.01
	 	Indenture and Notes Solely Corporate Obligations	  	 	49	  
	
	ARTICLE 13 CONVERSION OF NOTES	  
			
	 Section 13.01
	 	Conversion Privilege	  	 	49	  
	 Section 13.02
	 	Conversion Procedure; Settlement Upon Conversion	  	 	52	  
	 Section 13.03
	 	Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental Changes	  	 	56	  
	 Section 13.04
	 	Adjustment of Conversion Rate	  	 	58	  
	 Section 13.05
	 	Adjustments of Prices	  	 	67	  
	 Section 13.06
	 	Shares to Be Fully Paid	  	 	67	  
	 Section 13.07
	 	Effect of Recapitalizations, Reclassifications and Changes of the Common Stock.	  	 	67	  
	 Section 13.08
	 	Certain Covenants	  	 	69	  
	 Section 13.09
	 	Responsibility of Trustee	  	 	70	  
	 Section 13.10
	 	Notice to Holders Prior to Certain Actions	  	 	71	  
	 Section 13.11
	 	Stockholder Rights Plans	  	 	71	  
	 Section 13.12
	 	Limit on Issuance of Shares of Common Stock Upon Conversion	  	 	71	  
	
	ARTICLE 14 REPURCHASE OF NOTES AT OPTION OF HOLDERS	  
			
	 Section 14.01
	 	Repurchase at Option of Holders Upon a Fundamental Change	  	 	72	  
	 Section 14.02
	 	Withdrawal of Fundamental Change Repurchase Notice	  	 	74	  
	 Section 14.03
	 	Deposit of Fundamental Change Repurchase Price	  	 	75	  
	 Section 14.04
	 	Covenant to Comply with Applicable Laws Upon Repurchase of Notes	  	 	75	  
	
	ARTICLE 15 NO REDEMPTION	  
			
	 Section 15.01
	 	No Redemption	  	 	76	  

  
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	ARTICLE 16 MISCELLANEOUS PROVISIONS	  
			
	 Section 16.01
	 	Provisions Binding on Company’s Successors	  	 	76	  
	 Section 16.02
	 	Official Acts by Successor Corporation	  	 	76	  
	 Section 16.03
	 	Addresses for Notices, Etc	  	 	76	  
	 Section 16.04
	 	Governing Law	  	 	77	  
	 Section 16.05
	 	Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee	  	 	77	  
	 Section 16.06
	 	Legal Holidays	  	 	77	  
	 Section 16.07
	 	No Security Interest Created	  	 	77	  
	 Section 16.08
	 	Benefits of Indenture	  	 	78	  
	 Section 16.09
	 	Table of Contents, Headings, Etc	  	 	78	  
	 Section 16.10
	 	Authenticating Agent	  	 	78	  
	 Section 16.11
	 	Execution in Counterparts	  	 	79	  
	 Section 16.12
	 	Severability	  	 	79	  
	 Section 16.13
	 	Waiver of Jury Trial	  	 	79	  
	 Section 16.14
	 	Force Majeure	  	 	79	  
	 Section 16.15
	 	Calculations	  	 	79	  
	 Section 16.16
	 	No Adverse Interpretation of Other Agreements	  	 	80	  
			
	EXHIBIT	 		  			
			
	 Exhibit A
	 	Form of Note    A-1	  			

  
 iv 

 INDENTURE dated as of January 25, 2017 between HERCULES CAPITAL, INC., a Maryland
corporation, as issuer (the “Company,” as more fully set forth in Section 1.01) and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee,” as more fully set forth in Section 1.01).

 W I T N E S S E T H: 

WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issuance of its 4.375% Convertible Senior Notes due 2022 (the
“Notes”), initially in an aggregate principal amount not to exceed $200,000,000 (plus the aggregate principal amount of any additional Notes purchased by the Initial Purchaser pursuant to the exercise of its option to purchase additional
Notes as set forth in the Purchase Agreement), and in order to provide the terms and conditions upon which the Notes are to be authenticated, issued and delivered, the Company has duly authorized the execution and delivery of this Indenture; and

 WHEREAS, the Form of Note, the certificate of authentication to be borne by each Note, the Form of Notice of Conversion, the Form of
Fundamental Change Repurchase Notice and the Form of Assignment and Transfer to be borne by the Notes are to be substantially in the forms hereinafter provided; and 

WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee or a
duly authorized authenticating agent, as provided in this Indenture, the valid, binding and legal obligations of the Company, and this Indenture a valid agreement according to its terms, have been done and performed, and the execution of this
Indenture and the issue hereunder of the Notes have in all respects been duly authorized. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

That in order to declare the terms and conditions upon which the Notes are, and are to be, authenticated, issued and delivered, and in
consideration of the premises and of the purchase and acceptance of the Notes by the Holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective Holders from time to time of the Notes
(except as otherwise provided below), as follows: 
 ARTICLE 1 

DEFINITIONS 

Section 1.01 Definitions. The terms defined in this Section 1.01 (except as herein otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01. The words “herein,” “hereof,” “hereunder,”
and words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. The terms defined in this Article include the plural as well as the singular. 

“Additional Interest” means all amounts, if any, payable pursuant to Section 4.06(d) and Section 6.03, as
applicable. Except when the context requires otherwise, references to interest payable by the Company in this Indenture shall be deemed to include Additional Interest. 

 “Additional Shares” shall have the meaning specified in Section 13.03(a). 

“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 or cause the direction of 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.

 “Bid Solicitation Agent” means the Person appointed by the Company to solicit bids for the Trading Price of the Notes in
accordance with Section 13.01(b)(i). U.S. Bank National Association shall initially act as the Bid Solicitation Agent. 

“Board of Directors” means the board of directors of the Company or a committee of such board duly authorized to act for it
hereunder. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the
Company to have been duly adopted by the Board of Directors, and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

“Business Day” means, with respect to any Note, any day other than a Saturday, a Sunday or a day on which the Federal Reserve
Bank of New York is authorized or required by law or executive order to close or be closed. 
 “Capital Stock” means, for
any entity, any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) stock issued by that entity. 

“Cash Settlement” shall have the meaning specified in Section 13.02(a). 

“Clause A Distribution” shall have the meaning specified in Section 13.04(c). 

“Clause B Distribution” shall have the meaning specified in Section 13.04(c). 

“Clause C Distribution” shall have the meaning specified in Section 13.04(c). 

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

“Combination Settlement” shall have the meaning specified in Section 13.02(a). 

“Commission” means the U.S. Securities and Exchange Commission. 

“Common Equity” of any Person means Capital Stock of such Person that is generally entitled (a) to vote in the election
of directors of such Person or (b) if such Person is not a corporation, to vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or policies of such Person. 

  
 2 

 “Common Stock” means the common stock of the Company, par value $0.001 per
share, at the date of this Indenture, subject to Section 13.07. 
 “Company” shall have the meaning specified in the first
paragraph of this Indenture, and subject to the provisions of Article 11, shall include its successors and assigns. 
 “Company
Order” means a written order of the Company, signed by (a) the Company’s Chief Executive Officer, President, Chief Financial Officer or any Vice President (whether or not designated by a number or numbers or word or words added
before or after the title “Vice President”) and (b) any such other Officer designated in clause (a) of this definition or the Company’s Treasurer or Assistant Treasurer or Secretary or any Assistant Secretary, and delivered
to the Trustee. 
 “Conversion Agent” shall have the meaning specified in Section 4.02. 

“Conversion Date” shall have the meaning specified in Section 13.02(c). 

“Conversion Obligation” shall have the meaning specified in Section 13.01(a). 

“Conversion Price” means as of any date, $1,000, divided by the Conversion Rate as of such date. 

“Conversion Rate” shall have the meaning specified in Section 13.01(a). 

“Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof for purposes of Section 4.02 only is located at 100 Wall Street, Suite 1600, New York, NY 10005, Attention: Hercules Capital, Inc. Convertible Notes Due 2022, and for all other purposes is located
at One Federal Street, 3rd Floor, Boston, MA 02110, Attention: Hercules Capital, Inc. Convertible Notes Due 2022, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal
corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company). 

“Credit Facility” means one or more credit agreements, including the existing credit facilities, loan agreements or similar
facilities, secured or unsecured, providing for revolving credit loans, term loans and/or letters of credit, entered into from time to time by the Company and/or any of its Subsidiaries, as the same may be amended, supplemented, modified, restated
or replaced from time to time. 
 “Custodian” means the Trustee, as custodian for The Depository Trust Company, with
respect to the Global Notes, or any successor entity thereto. 
 “Daily Conversion Value” means, for each of the 15
consecutive Trading Days during the Observation Period, one-fifteenth of the product of (a) the Conversion Rate on such Trading Day and (b) the Daily VWAP on such Trading Day. 

“Daily Measurement Value” means the Specified Dollar Amount, if any, divided by 15. 

  
 3 

 “Daily Settlement Amount,” for each of the 15 consecutive Trading Days during
the Observation Period, shall consist of: 
 (a) cash equal to the lesser of (i) the Daily Measurement Value and (ii) the Daily
Conversion Value; and 
 (b) if the Daily Conversion Value exceeds the Daily Measurement Value, a number of shares of Common Stock equal to
(i) the difference between the Daily Conversion Value and the Daily Measurement Value, divided by (ii) the Daily VWAP for such Trading Day. 

“Daily VWAP” means, for each of the 15 consecutive Trading days during the applicable Observation Period, the per share
volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “HTGC <equity> AQR” (or its equivalent successor if such page is not available) in respect of the period from the scheduled
open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or if such volume-weighted average price is unavailable, the market value of one share of the Common Stock on such Trading Day determined, using
a volume-weighted average method, by a nationally recognized independent investment banking firm retained for this purpose by the Company). The “Daily VWAP” shall be determined without regard to after-hours trading or any other
trading outside of the regular trading session trading hours. 
 “Default” means any event that is, or after notice or
passage of time, or both, would be, an Event of Default. 
 “Defaulted Amounts” means any amounts on any Note (including,
without limitation, the Fundamental Change Repurchase Price, principal and interest) that are payable but are not punctually paid or duly provided for. 

“Depositary” means, with respect to each Global Note, the Person specified in Section 2.05(c) as the Depositary with
respect to such Notes, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall mean or include such successor. 

“Distributed Property” shall have the meaning specified in Section 13.04(c). 

“Dividend Threshold” means, with respect to each regular quarterly cash dividend that falls in the specified calendar years
below, as applicable: 
  

																									
	 	  	2017	 	  	2018	 	  	2019	 	  	2020	 	  	2021	 	  	2022	 
	 Applicable dividend threshold for each quarterly dividend in the specified calendar
year
	  	$	0.32	  	  	$	0.33	  	  	$	0.33	  	  	$	0.33	  	  	$	0.33	  	  	$	0.33	  

 “EDGAR” shall having the meaning specified in Section 4.06(b). 

“Effective Date” shall have the meaning specified in Section 13.03(c). 

  
 4 

 “Events of Default” shall have the meaning specified in Section 6.01. 

“Ex-Dividend Date” means the first date on which shares of the Common Stock trade on the applicable exchange or in the
applicable market, regular way, without the right to receive the issuance, dividend or distribution in question, from the Company or, if applicable, from the seller of Common Stock on such exchange or market (in the form of due bills or otherwise)
as determined by such exchange or market. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder. 
 “Form of Assignment and Transfer” shall mean the “Form of Assignment
and Transfer” attached as Attachment 3 to the Form of Note attached hereto as Exhibit A. 
 “Form of Fundamental Change
Repurchase Notice” shall mean the “Form of Fundamental Change Repurchase Notice” attached as Attachment 2 to the Form of Note attached hereto as Exhibit A. 

“Form of Notice of Conversion” shall mean the “Form of Notice of Conversion” attached as Attachment 1 to the Form
of Note attached hereto as Exhibit A. 
 “Fundamental Change” shall be deemed to have occurred at the time after the Notes
are originally issued if any of the following occurs: 
 (a) a “person” or “group” within the meaning of
Section 13(d) of the Exchange Act, other than the Company, its Subsidiaries and the employee benefit plans of the Company and its Subsidiaries, has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, of the Company’s Common Equity representing more than 50% of the voting power of the Company’s Common Equity and files a Schedule 13D or Schedule TO or any other schedule, form or report under the Exchange Act disclosing such
beneficial ownership; 
 (b) the consummation of (A) any recapitalization, reclassification or change of the Common Stock (other than
changes resulting from a subdivision or combination or a change solely in par value) as a result of which the Common Stock would be converted into, or exchanged for, stock, other securities, other property or assets; (B) any share exchange,
consolidation or merger of the Company pursuant to which the Common Stock will be converted into cash, securities or other property; or (C) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially
all of the consolidated assets of the Company and its Subsidiaries, taken as a whole, to any Person other than one of the Company’s Subsidiaries; provided, however, that a transaction described in clause (A) or (B) in
which the holders of all classes of the Company’s Common Equity immediately prior to such transaction own, directly or indirectly, more than 50% of all classes of Common Equity of the continuing or surviving corporation or transferee or the
parent thereof immediately after such transaction in substantially the same proportions as such ownership immediately prior to such transaction shall not be a Fundamental Change pursuant to this clause (b); 

(c) the stockholders of the Company approve any plan or proposal for the liquidation or dissolution of the Company; or 

  
 5 

 (d) the Common Stock (or other common stock underlying the Notes) ceases to be listed or quoted
on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) for a period of 20 consecutive Trading Days; 

provided, however, that a transaction or transactions described in clause (b) above shall not constitute a Fundamental Change if at least
90% of the consideration received or to be received by the common stockholders of the Company, excluding cash payments for fractional shares, in connection with such transaction or transactions consists of shares of Publicly Traded Securities, and
as a result of this transaction or transactions the Notes become convertible into such Publicly Traded Securities, excluding cash payments for fractional shares (subject to the provisions of Section 13.02(a)). 

“Fundamental Change Company Notice” shall have the meaning specified in Section 14.01(c). 

“Fundamental Change Repurchase Date” shall have the meaning specified in Section 14.01(a). 

“Fundamental Change Repurchase Notice” shall have the meaning specified in Section 14.01(b)(i). 

“Fundamental Change Repurchase Price” shall have the meaning specified in Section 14.01(a). 

“Global Note” shall have the meaning specified in Section 2.05(b). 

“Holder,” as applied to any Note, or other similar terms (but excluding the term “beneficial holder”), shall mean
any person in whose name at the time a particular Note is registered on the Note Register. 
 “Indenture” means this
instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 
 “Initial
Purchaser” means Jefferies LLC. 
 “Interest Payment Date” means each February 1 and August 1 of each
year, beginning on August 1, 2017. 
 “Investment Company Act” means the Investment Company Act of 1940, as amended.

 “Last Reported Sale Price” of the Common Stock on any date means the closing sale price per share (or if no closing sale
price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions for the principal U.S. national or regional
securities exchange on which the Common Stock is traded. The “Last Reported Sale Price” will be determined without reference to after-hours trading or extended market trading. If the Common Stock is not listed for trading on a U.S.
national or regional securities exchange on the relevant 

  
 6 

 
date, the “Last Reported Sale Price” shall be the last quoted bid price for the Common Stock in the over-the-counter market on the relevant date as reported by OTC Markets Group
Inc. or a similar organization. If the Common Stock is not so quoted, the “Last Reported Sale Price” shall be the average of the mid-point of the last bid and ask prices for the Common Stock on the relevant date from each of at
least three nationally recognized independent investment banking firms selected by the Company for this purpose. 

“Limitation” shall have the meaning specified in Section 13.02(k). 

“Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental Change (as defined in clauses
(a), (b) or (d) in the definition thereof and determined after giving effect to any exceptions to or exclusions from such definition, but without regard to the proviso in clause (b) of the definition thereof). 

“Market Disruption Event” means (a) a failure by the primary U.S. national or regional securities exchange or market on
which the Common Stock is listed or admitted for trading to open for trading during its regular trading session or (b) the occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for the Common Stock for
more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Common
Stock or in any options, contracts or future contracts relating to the Common Stock. 
 “Maturity Date” means
February 1, 2022. 
 “Measurement Period” shall have the meaning specified in Section 13.01(b)(i). 

“Merger Common Stock” shall have the meaning specified in Section 13.07(e)(i). 

“Merger Event” shall have the meaning specified in Section 13.07(a). 

“Merger Valuation Percentage” for any Merger Event shall be equal to (x) the arithmetic average of the Last Reported
Sale Prices of one share of such Merger Common Stock over the relevant Merger Valuation Period (determined as if references to “Common Stock” in the definition of “Last Reported Sale Price” were references to the “Merger
Common Stock” for such Merger Event), divided by (y) the arithmetic average of the Last Reported Sale Prices of one share of Common Stock over the relevant Merger Valuation Period. 

“Merger Valuation Period” for any Merger Event means the five consecutive Trading Day period immediately preceding, but
excluding, the effective date for such Merger Event. 
 “Note” or “Notes” shall have the meaning specified
in the first paragraph of the recitals of this Indenture. 
 “Note Register” shall have the meaning specified in
Section 2.05(a). 
 “Note Registrar” shall have the meaning specified in Section 2.05(a). 

  
 7 

 “Notice of Conversion” shall have the meaning specified in Section 13.02(b).

 “Observation Period” with respect to any Note surrendered for conversion means: (i) if the relevant Conversion Date
occurs prior to August 1, 2021, the 15 consecutive Trading Day period beginning on, and including, the second Trading Day after such Conversion Date; and (ii) if the relevant Conversion Date occurs on or after August 1, 2021, the 15
consecutive Trading Days beginning on, and including, the 17th Scheduled Trading Day immediately preceding the Maturity Date. 

“Offering Memorandum” means the preliminary offering memorandum dated January 18, 2017, as supplemented by the pricing
term sheet dated January 19, 2017, relating to the offering and sale of the Notes. 
 “Officer” means, with respect to
the Company, the President, the Chief Executive Officer, the Chief Financial Officer, the Treasurer (or any Assistant Treasurer), the Secretary (or any Assistant Secretary) or any Vice President (whether or not designated by a number or numbers or
word or words added before or after the title “Vice President”). 
 “Officers’ Certificate,” when used with
respect to the Company, means a certificate that is delivered to the Trustee and that is signed by (a) two Officers of the Company or (b) one Officer of the Company and one of the Treasurer, any Assistant Treasurer, the Secretary, any
Assistant Secretary or the Controller of the Company. Each such certificate shall include the statements provided for in Section 16.05 if and to the extent required by the provisions of such Section. One of the Officers giving an Officers’
Certificate pursuant to Section 4.09 shall be the principal executive, financial or accounting officer of the Company. 
 “open
of business” means 9:00 a.m. New York City time. 
 “Opinion of Counsel” means an opinion in writing signed by
legal counsel, who may be an employee of or counsel to the Company, or other counsel acceptable to the Trustee, that is delivered to the Trustee. Each such opinion shall include the statements provided for in Section 16.05 if and to the extent
required by the provisions of such Section 16.05. 
 “outstanding,” when used with reference to Notes, shall, subject to
the provisions of Section 8.04, mean, as of any particular time, all Notes authenticated and delivered by the Trustee under this Indenture, except: 

(a) Notes theretofore cancelled by the Trustee or accepted by the Trustee for cancellation; 

(b) Notes, or portions thereof, that have become due and payable and in respect of which monies in the necessary amount shall have been
deposited in trust with the Trustee or with any Paying Agent (other than the Company) or shall have been set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent); 

(c) Notes that have been paid pursuant to Section 2.06 or Notes in lieu of which, or in substitution for which, other Notes shall have
been authenticated and delivered pursuant to the terms of Section 2.06 unless proof satisfactory to the Trustee is presented that any such Notes are held by protected purchasers in due course; 

  
 8 

 (d) Notes converted pursuant to Article 13 and required to be cancelled pursuant to
Section 2.08; and 
 (e) Notes repurchased by the Company and surrendered to the Trustee for cancellation pursuant to the last sentence
of Section 2.10. 
 “Paying Agent” shall have the meaning specified in Section 4.02. 

“Person” means an individual, a corporation, a limited liability company, an association, a partnership, a joint venture, a
joint stock company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof 

“Physical Notes” means permanent certificated Notes in registered form issued in denominations of $1,000 principal amount and
multiples thereof. 
 “Physical Settlement” shall have the meaning specified in Section 13.02(a). 

“Predecessor Note” of any particular Note means every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purposes of this definition, any Note authenticated and delivered under Section 2.06 in lieu of or in exchange for a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note that it replaces. 
 “Publicly Traded Securities” means shares of
common stock that are listed or quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any of their respective successors) or will be so listed or quoted when issued or exchanged in connection
with a Fundamental Change described in clause (b) of the definition thereof. 
 “Purchase Agreement” means that
certain Purchase Agreement, dated as of January 19, 2017, among the Company and the Initial Purchaser. 
 “Record
Date” means, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock (or other security) have the right to receive any cash, securities or other property or in which the Common Stock (or
other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is
fixed by the Board of Directors, by statute, by contract or otherwise). 
 “Reference Property” shall have the meaning
specified in Section 13.07(a). 
 “Regular Record Date,” with respect to any Interest Payment Date, shall mean the
January 15 or July 15 (whether or not such day is a Business Day) immediately preceding the applicable February 1 or August 1 Interest Payment Date, respectively. 

  
 9 

 “Resale Restriction Termination Date” shall have the meaning specified in
Section 2.05(c). 
 “Responsible Officer” means, when used with respect to the Trustee, any officer within the corporate
trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such Person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the
administration of this Indenture. 
 “Restricted Securities” shall have the meaning specified in Section 2.05(c). 

“Restricted Transfer Default” shall have the meaning specified in Section 4.06(d). 

“Restricted Transfer Triggering Date” shall have the meaning specified in Section 4.06(d). 

“Rule 144A” means Rule 144A as promulgated under the Securities Act. 

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

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

“Settlement Amount” has the meaning specified in Section 13.02(a)(iv). 

“Settlement Method” means, with respect to any conversion of Notes, Physical Settlement, Cash Settlement or Combination
Settlement, as elected (or deemed to have been elected) by the Company. 
 “Settlement Notice” has the meaning specified in
Section 13.02(a)(iii). 
 “Significant Subsidiary” means a Subsidiary of the Company that meets the definition of
“significant subsidiary” in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act. 
 “Specified Dollar
Amount” means the maximum cash amount per $1,000 principal amount of Notes to be received upon conversion as specified in the Settlement Notice related to any converted Notes. 

“Spin-Off” shall have the meaning specified in Section 13.04(c). 

“Stock Price” shall have the meaning specified in Section 13.03(c). 

  
 10 

 “Subsidiary” means, with respect to the Company, any corporation, association,
limited liability company, partnership or other business entity that is consolidated in the Company’s most recent financial results. 

“Successor Company” shall have the meaning specified in Section 11.01(a). 

“Trading Day” means a day on which (i) trading in the Common Stock generally occurs on The New York Stock Exchange or,
if the Common Stock is not then listed on The New York Stock Exchange, on the principal other U.S. national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or
regional securities exchange, on the principal other market on which the Common Stock is then traded and (ii) a Last Reported Sale Price for the Common Stock is available on such securities exchange or market; provided that if the Common
Stock is not so listed or traded, “Trading Day” means a Business Day; and provided, further, that for purposes of determining amounts due upon conversion only, “Trading Day” means a day on which
(x) there is no Market Disruption Event and (y) trading in the Common Stock generally occurs on The New York Stock Exchange or, if the Common Stock is not then listed on The New York Stock Exchange, on the principal other U.S.
national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Stock is then listed
or admitted for trading, except that if the Common Stock is not so listed or admitted for trading, “Trading Day” means a Business Day. 

“Trading Price” of the Notes on any date of determination means the average of the secondary market bid quotations obtained
by the Bid Solicitation Agent for $5 million principal amount of Notes at approximately 3:30 p.m., New York City time, on such determination date from three independent nationally recognized securities dealers the Company selects and whose names the
Company provides to the Bid Solicitation Agent; provided that if three such bids cannot reasonably be obtained by the Bid Solicitation Agent but two such bids are obtained, then the average of the two bids shall be used, and if only one such
bid can reasonably be obtained by the Bid Solicitation Agent, that one bid shall be used. If the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5 million principal amount of Notes from a nationally recognized securities
dealer, then the Trading Price per $1,000 principal amount of Notes shall be deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Stock and the applicable Conversion Rate. 

“transfer” shall have the meaning specified in Section 2.05(c). 

“Trigger Event” shall have the meaning specified in Section 13.04(c). 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at the date of execution of this
Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after the date hereof, the term “Trust Indenture Act” shall mean, to the extent required by such amendment, the Trust Indenture Act of
1939, as so amended. 

  
 11 

 “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. 

“unit of Reference Property” shall have the meaning specified in Section 13.07(a). 

“Valuation Period” shall have the meaning specified in Section 13.04(c). 

Section 1.02 References to Interest. Unless the context otherwise requires, any reference to interest on, or in respect of, any
Note in this Indenture shall be deemed to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to any of Section 4.06(d) and Section 6.03. Unless the context otherwise requires, any
express mention of Additional Interest in any provision hereof shall not be construed as excluding Additional Interest in those provisions hereof where such express mention is not made. 

ARTICLE 2 

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND
EXCHANGE OF NOTES 
 Section 2.01 Designation and Amount. The Notes shall be
designated as the “4.375% Convertible Senior Notes due 2022.” The aggregate principal amount of Notes that may be authenticated and delivered under this Indenture is initially limited to $200,000,000 (plus the aggregate principal amount of
any additional Notes purchased by the Initial Purchaser pursuant to the exercise of its option to purchase additional Notes as set forth in the Purchase Agreement), subject to Section 2.10 and except for Notes authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of other Notes pursuant to Section 2.05, Section 2.06, Section 10.04, Section 13.02 and Section 14.03. 

Section 2.02 Form of Notes. The Notes and the Trustee’s certificate of authentication to be borne by such Notes shall be
substantially in the respective forms set forth in Exhibit A, the terms and provisions of which shall constitute, and are hereby expressly incorporated in and made a part of this Indenture. To the extent applicable, the Company and the Trustee, by
their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. 
 Any Global Note may
be endorsed with or have incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of this Indenture as may be required by the Custodian or the Depositary, or as may be required to comply with any
applicable law or any regulation thereunder or with the rules and regulations of any securities exchange or automated quotation system upon which the Notes may be listed or traded or designated for issuance or to conform with any usage with respect
thereto, or to indicate any special limitations or restrictions to which any particular Notes are subject. 
 Any of the Notes may have such
letters, numbers or other marks of identification and such notations, legends or endorsements as the Officers executing the same may approve (execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed
or designated for issuance, or to conform to usage or to indicate any special limitations or restrictions to which any particular Notes are subject. 

  
 12 

 Each Global Note shall represent such principal amount of the outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time
be increased or reduced to reflect repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of the Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall
be made by the Trustee or the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the Holder of such Notes in accordance with this Indenture. Payment of principal of, accrued and unpaid interest on, and any
other amounts (including the Fundamental Change Repurchase Price, if applicable) due with respect to, the Global Note shall be made to the Holder of such Note on the date of payment, unless a record date or other means of determining Holders
eligible to receive payment is provided for herein. 
 Each Note shall bear a legend in substantially the following form (unless otherwise
agreed by the Company in writing, with notice thereof to the Trustee): 
 NO AFFILIATE (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF
THE COMPANY OR PERSON THAT HAS BEEN AN AFFILIATE (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF THE COMPANY DURING THE THREE IMMEDIATELY PRECEDING MONTHS MAY RESELL THIS NOTE OR A BENEFICIAL INTEREST HEREIN. 

Section 2.03 Date and Denomination of Notes; Payments of Interest and Defaulted Amounts. (a) The Notes shall be issuable in
registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear interest from the date specified on the face of the form of Note
attached as Exhibit A hereto. Accrued interest on the Notes shall be computed on the basis of a 360-day year composed of twelve 30-day months. 

(b) The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the close of business on any Regular
Record Date with respect to any Interest Payment Date shall be entitled to receive the interest payable on such Interest Payment Date. Interest shall be payable at the office or agency of the Company maintained by the Company for such purposes,
which shall initially be the Corporate Trust Office. The Company shall pay interest (i) on any Physical Notes (A) to Holders having an aggregate principal amount of $5,000,000 or less, by check mailed to the Holders of these Notes at their
address as it appears in the Note Register and (B) to Holders having an aggregate principal amount of more than $5,000,000, either by check mailed to the Holders of these Notes or, upon application by a Holder to the Note Registrar not later
than the relevant Regular Record Date, by wire transfer in immediately available funds to that Holder’s account within the United States, which application shall remain in effect until the Holder notifies, in writing, the Note Registrar to the
contrary or (ii) on any Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. Notwithstanding anything to the contrary herein, the Company may pay interest at its option to any Holder by
wire transfer in immediately available funds to that Holder’s account, as specified by such Holder, within the United States. 

  
 13 

 (c) Any Defaulted Amounts shall forthwith cease to be payable to the Holder on the relevant
payment date by virtue of its having been such Holder but shall accrue interest per annum at the rate or rates, if any, specified in the Notes, subject to the enforceability thereof under applicable law, from, and including, such relevant payment
date to, but excluding, the date on which such Defaulted Amounts shall have been paid by the Company, at its election in each case, as provided in clause (i) or (ii) below: 

(i) The Company may elect to make payment of any Defaulted Amounts to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on a special record date for the payment of such Defaulted Amounts, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of the
Defaulted Amounts proposed to be paid on each Note and the date of the proposed payment (which shall be not less than 25 days after the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time
the Company shall deposit with the Trustee an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Amounts 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 Amounts as in this clause provided. Thereupon the Company shall fix a special record date for the payment of such Defaulted
Amounts which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment, and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify the
Trustee of such special record date and the Trustee, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Amounts and the special record date therefor to be mailed, first-class postage prepaid,
to each Holder at its address as it appears in the Note Register, not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Amounts and the special record date therefor having been so mailed, such
Defaulted Amounts shall be paid to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of business on such special record date and shall no longer be payable pursuant to the following clause
(ii) of this Section 2.03(c). 
 (ii) The Company may make payment of any Defaulted Amounts in any other lawful
manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation
system, 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. 

Section 2.04 Execution, Authentication and Delivery of Notes. The Notes shall be signed in the name and on behalf of the Company
by the manual or facsimile signature of its Chief Executive Officer, President, Chief Financial Officer, Treasurer (or Assistant Treasurer), Secretary (or Assistant Secretary) or any of its Vice Presidents. 

  
 14 

 At any time and from time to time after the execution and delivery of this Indenture, the Company
may deliver Notes executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Notes, and the Trustee in accordance with such Company Order shall authenticate and deliver such
Notes, without any further action by the Company hereunder. 
 Only such Notes as shall bear thereon a certificate of authentication
substantially in the form set forth on the form of Note attached as Exhibit A hereto, executed manually or by facsimile by a Responsible Officer (or an authenticating agent appointed by the Trustee as provided by Section 16.10), shall be
entitled to the benefits of this Indenture or be valid or obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company shall be conclusive evidence that the Note so authenticated
has been duly authenticated and delivered hereunder and that the Holder is entitled to the benefits of this Indenture. 
 In case any
Officer of the Company who shall have signed any of the Notes shall cease to be such Officer before the Notes so signed shall have been authenticated and delivered by the Trustee, or disposed of by the Company, such Notes nevertheless may be
authenticated and delivered or disposed of as though the Person who signed such Notes had not ceased to be such Officer of the Company; and any Note may be signed on behalf of the Company by such Persons as, at the actual date of the execution of
such Note, shall be the Officers of the Company, although at the date of the execution of this Indenture any such Person was not such an Officer. 

Section 2.05 Exchange and Registration of Transfer of Notes; Restrictions on Transfer; Depositary. (a) The Company shall
cause to be kept at the Corporate Trust Office a register (the register maintained in such office or in any other office or agency of the Company designated pursuant to Section 4.02, the “Note Register”) in which, subject to
such reasonable procedures as it may prescribe, the Company shall provide for the registration of Notes and of transfers of Notes. Such register shall be in written form or in any form capable of being converted into written form within a reasonable
period of time. The Trustee is hereby appointed the “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein provided. The Company may appoint one or more co-Note Registrars in accordance with Section
4.02. 
 Upon surrender for registration of transfer of any Note to the Note Registrar or any co-Note Registrar, and satisfaction of the
requirements for such transfer set forth in this Section 2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this Indenture. 
 Notes
may be exchanged for other Notes of any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such office or agency maintained by the Company pursuant to Section 4.02. Whenever any
Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that the Holder making the exchange is entitled to receive, bearing registration numbers not contemporaneously outstanding.

  
 15 

 All Notes presented or surrendered for registration of transfer or for exchange, repurchase or
conversion shall (if so required by the Company, the Trustee, the Note Registrar or any co-Note Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company and duly executed,
by the Holder thereof or its attorney-in-fact duly authorized in writing. 
 No service charge shall be charged to the Holder for any
exchange or registration of transfer of Notes, but the Company or the Trustee may require a Holder to pay a sum sufficient to cover any tax or other similar governmental charge required by law or permitted pursuant to Section 13.02(e). 

None of the Company, the Trustee, the Note Registrar or any co-Note Registrar shall be required to exchange or register a transfer of
(i) any Notes surrendered for conversion or, if a portion of any Note is surrendered for conversion, such portion thereof surrendered for conversion or (ii) any Notes, or a portion of any Note, surrendered for repurchase (and not
withdrawn) in accordance with Article 14. 
 All Notes issued upon any registration of transfer or exchange of Notes in accordance with this
Indenture shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture as the Notes surrendered upon such registration of transfer or exchange. 

(b) So long as the Notes are eligible for book-entry settlement with the Depositary, unless otherwise required by law, all Notes shall be
represented by one or more Notes in global form (each, a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary. The transfer and exchange of beneficial interests in a Global Note that does not
involve the issuance of a Physical Note shall be effected through the Depositary (but not the Trustee or the Custodian) in accordance with this Indenture (including the restrictions on transfer set forth herein) and the procedures of the Depositary
therefor. 
 (c) Every Note, and every share of Common Stock evidenced by a certificate, that bears or is required under this
Section 2.05(c) to bear the legend set forth in this Section 2.05(c) (collectively, the “Restricted Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.05(c) (including the legend
set forth below), unless such restrictions on transfer shall be eliminated or otherwise 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 this Section 2.05(c), the term “transfer” encompasses any sale, pledge, transfer or other disposition whatsoever of any Restricted Security. 

Until the date (the “Resale Restriction Termination Date”) that is the later of (1) the date that is one year after the
last date of original issuance of the Notes, or such shorter period of time as permitted by Rule 144 under the Securities Act or any successor provision thereto, and (2) such later date, if any, as may be required by applicable law, any
certificate evidencing such Note (and all securities issued in exchange therefor or substitution thereof), shall bear a legend in 

  
 16 

 
substantially the following form (unless such Notes or such Common Stock have been transferred pursuant to a registration statement that has become or been declared effective under the Securities
Act and that continues to be effective at the time of such transfer, or sold pursuant to the exemption from registration provided by Rule 144 or any similar provision then in force under the Securities Act, or unless otherwise agreed by the Company
in writing, with notice thereof to the Trustee, or, in the case of Common Stock, such Common Stock has been issued upon conversion of Notes that have been transferred pursuant to a registration statement that has become or been declared effective
under the Securities Act and that continues to be effective at the time of such transfer): 
 THIS SECURITY AND THE COMMON STOCK, IF ANY,
ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, PLEDGED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR ANY STATE SECURITIES LAWS OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, AND NOT SUBJECT TO, REGISTRATION. 

BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER: 

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

(2) AGREES FOR THE BENEFIT OF HERCULES CAPITAL, INC. (THE “COMPANY”) THAT IT WILL NOT OFFER, SELL, ASSIGN, TRANSFER,
PLEDGE, ENCUMBER OR OTHERWISE DISPOSE OF THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER
THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO, AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT: 

(A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR 

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

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

  
 17 

 (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 
 PRIOR TO THE REGISTRATION OF
ANY TRANSFER IN ACCORDANCE WITH (2)(D) ABOVE, THE COMPANY, THE TRUSTEE AND THE TRANSFER AGENT, IN THE CASE OF ANY COMMON STOCK ISSUED UPON CONVERSION OF THE NOTES, RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS
OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 
 No transfer of any Note prior to the Resale Restriction Termination
Date will be registered by the Note Registrar unless the applicable box on the Form of Assignment and Transfer has been checked. 
 Any Note
(or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with their terms may, upon surrender of such Note for exchange to the Note Registrar in accordance with the
provisions of this Section 2.05, be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this Section 2.05(c). The Company shall promptly notify the
Trustee upon the occurrence of the Resale Restriction Termination Date and promptly after a registration statement, if any, with respect to the Notes or any Common Stock issued upon conversion of the Notes has been declared effective under the
Securities Act. 
 Any such Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms may,
upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common Stock, be exchanged for a new certificate or certificates for a like aggregate number of
shares of Common Stock, which shall not bear the restrictive legend required by this Section 2.05(c). 
 Notwithstanding any other
provisions of this Indenture (other than the provisions set forth in this Section 2.05(c)), a Global Note may not be transferred as a whole or in part except (i) by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary and (ii) for transfers of portions of a Global Note in certificated
form made upon request of a member of, or a participant in, the Depositary (for itself or on behalf of a beneficial owner) by written notice given to the Trustee by or on behalf of the Depositary in accordance with customary procedures of the
Depositary and only to the extent otherwise permitted by this Section 2.05(c). 

  
 18 

 The Depositary shall be a clearing agency registered under the Exchange Act. The Company
initially appoints The Depository Trust Company to act as Depositary with respect to each Global Note. Initially, each Global Note shall be issued to the Depositary, registered in the name of Cede & Co., as the nominee of the Depositary,
and deposited with the Trustee as custodian for Cede & Co. 
 If (i) the Depositary notifies the Company at any time that the
Depositary is unwilling or unable to continue as depositary for the Global Notes and a successor depositary is not appointed within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange Act and a successor
depositary is not appointed within 90 days or (iii) an Event of Default with respect to the Notes has occurred and is continuing and a beneficial owner of the Notes requests that its Notes be issued as Physical Notes, the Company will execute,
and the Trustee, upon receipt of an Officers’ Certificate and a Company Order for the authentication and delivery of Notes, will authenticate and deliver Physical Notes to each such beneficial owner of the related Notes (or a portion thereof)
in an aggregate principal amount equal to the principal amount of such Global Note, in exchange for such Global Note, and upon delivery of the Global Note to the Trustee such Global Note shall be cancelled. 

Physical Notes issued in exchange for all or a part of the Global Note pursuant to this Section 2.05(c) shall be registered in such names
and in such authorized denominations as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such Physical Notes to
the Persons in whose names such Physical Notes are so registered. 
 At such time as all interests in a Global Note have been converted,
cancelled, repurchased or transferred, such Global Note shall be, upon receipt thereof, cancelled by the Trustee in accordance with standing procedures and existing instructions between the Depositary and the Custodian. At any time prior to such
cancellation, if any interest in a Global Note is exchanged for Physical Notes, converted, cancelled, repurchased or transferred to a transferee who receives Physical Notes therefor or any Physical Note is exchanged or transferred for part of such
Global Note, the principal amount of such Global Note shall, in accordance with the standing procedures and instructions existing between the Depositary and the Custodian, be appropriately reduced or increased, as the case may be, and an endorsement
shall be made on such Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such reduction or increase. 

Neither the Company, the Trustee nor any agent of the Company or the Trustee 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 Global Note or maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 

(d) [Reserved] 
 (e) Any Note that
is repurchased or owned by the Company or any Subsidiary thereof may not be resold by the Company or such Subsidiary 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 Note no longer being “restricted securities” (as defined under Rule 144 under the Securities Act). 

  
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 Section 2.06 Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall
become mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and deliver, a new Note, bearing a number
not contemporaneously outstanding, in exchange and substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed, lost or stolen. In every case the applicant for a substituted Note shall furnish to the Company, to
the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless from any loss, liability, cost or expense caused by or connected with such substitution, and, in every
case of destruction, loss or theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership
thereof. 
 The Trustee or such authenticating agent may authenticate any such substituted Note and deliver the same upon the receipt of
such security or indemnity as the Trustee, the Company and, if applicable, such authenticating agent may require. Upon the issuance of any substitute Note, the Company or the Trustee may require the payment by the Holder of a sum sufficient to cover
any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note that has matured or is about to mature or has been surrendered for required repurchase or is about
to be converted in accordance with Article 13 shall become mutilated or be destroyed, lost or stolen, the Company may, in its sole discretion, instead of issuing a substitute Note, pay or authorize the payment of or convert or authorize the
conversion of the same (without surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish to the Company, to the Trustee and, if applicable, to such authenticating
agent such security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution, and, in every case of destruction, loss or theft, evidence satisfactory
to the Company, the Trustee and, if applicable, any Paying Agent or Conversion Agent evidence of their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 

Every substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the fact that any Note is destroyed, lost or
stolen shall constitute an additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express condition that the foregoing provisions are exclusive with
respect to the replacement or payment or conversion or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary
with respect to the replacement or payment or conversion of negotiable instruments or other securities without their surrender. 

Section 2.07 Temporary Notes. Pending the preparation of Physical Notes, the Company may execute and the Trustee or an
authenticating agent appointed by the Trustee shall, upon written request of the Company, authenticate and deliver temporary Notes (printed or lithographed). Temporary Notes shall be issuable in any authorized denomination, and 

  
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substantially in the form of the Physical Notes but with such omissions, insertions and variations as may be appropriate for temporary Notes, all as may be determined by the Company. Every such
temporary Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon the same conditions and in substantially the same manner, and with the same effect, as the Physical Notes. Without unreasonable delay,
the Company will execute and deliver to the Trustee or such authenticating agent Physical Notes (other than any Global Note) and thereupon any or all temporary Notes (other than any Global Note) may be surrendered in exchange therefor, at each
office or agency maintained by the Company pursuant to Section 4.02 and the Trustee or such authenticating agent shall authenticate and deliver in exchange for such temporary Notes an equal aggregate principal amount of Physical Notes. Such
exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits and subject to the same limitations under this Indenture as
Physical Notes authenticated and delivered hereunder. 
 Section 2.08 Cancellation of Notes Paid, Converted, Etc. The Company
shall cause all Notes surrendered for the purpose of payment, repurchase, registration of transfer or exchange or conversion, if surrendered to any Person other than the Trustee (including any of the Company’s agents, Subsidiaries or controlled
Affiliates), to be surrendered to the Trustee for cancellation. All Notes delivered to the Trustee shall be cancelled promptly by it, and no Notes shall be authenticated in exchange thereof except as expressly permitted by any of the provisions of
this Indenture. The Trustee shall dispose of cancelled Notes in accordance with its customary procedures and, after such disposition, shall deliver a certificate of such disposition to the Company, at the Company’s written request in a Company
Order. If the Company or any of its Subsidiaries shall acquire any of the Notes, such acquisition shall not operate as a redemption, repurchase or satisfaction of the indebtedness represented by such Notes unless and until the same are delivered to
the Trustee for cancellation. Any Notes surrendered for cancellation shall not be reissued or resold and shall be promptly cancelled. 

Section 2.09 CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if
so, the Trustee shall use “CUSIP” numbers in all notices issued to Holders as a convenience to such Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on
the Notes or on such notice and that reliance may be placed only on the other identification numbers printed on the Notes. The Company will promptly notify the Trustee in writing of any change in the “CUSIP” numbers. 

Section 2.10 Additional Notes; Repurchases. The Company may, without the consent of the Holders and notwithstanding
Section 2.01, reopen this Indenture and issue additional Notes hereunder with the same terms as the Notes initially issued hereunder (except that the first Interest Payment Date and the date from which interest may accrue may be different) in
an unlimited aggregate principal amount; provided that such additional Notes must be part of the same issue as the Notes initially issued hereunder for U.S. federal income tax purposes if represented by the same CUSIP number (including, if relevant,
an unrestricted CUSIP number) as the Notes initially issued hereunder. Prior to the issuance of any such additional Notes, the Company shall deliver to the Trustee a Company Order, an Officers’ Certificate and an Opinion of Counsel, such
Officers’ Certificate and Opinion of Counsel to cover such matters, in addition to those required by Section 16.05, as the Trustee shall reasonably request. In addition, the 

  
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Company may, to the extent permitted by law, and directly or indirectly (regardless of whether such Notes are surrendered to the Company), repurchase Notes in the open market or otherwise,
whether by the Company or its Subsidiaries or through a private or public tender or exchange offer or through counterparties to private agreements, including by cash-settled swaps or other derivatives. Any Notes repurchased by the Company may, at
the Company’s option, be surrendered to the Trustee for cancellation in accordance with Section 2.08, but shall not be reissued or resold by the Company. 

ARTICLE 3 

SATISFACTION AND DISCHARGE 

Section 3.01 Satisfaction and Discharge. This Indenture shall upon request of the Company contained in an Officers’
Certificate cease to be of further effect, and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when (a) (i) all Notes theretofore authenticated and
delivered (other than (x) Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.06 and (y) Notes for whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 4.04(d)) have been delivered to the Trustee for cancellation; or (ii) the Company has deposited with the Trustee or
delivered to Holders, as applicable, after all outstanding Notes have become due and payable, whether at the Maturity Date, any Fundamental Change Repurchase Date, upon conversion or otherwise, cash or cash, shares of Common Stock or a combination
thereof, as applicable, solely to satisfy the Company’s Conversion Obligation, sufficient to pay all of the outstanding Notes and all other sums due and payable under this Indenture by the Company; and (b) the Company has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. Notwithstanding the satisfaction
and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.06 shall survive. 
 ARTICLE 4

 PARTICULAR COVENANTS OF THE COMPANY 

Section 4.01 Payment of Principal and Interest. The Company covenants and agrees that it will cause to be paid the principal of,
the Fundamental Change Repurchase Price, if applicable, of, and accrued and unpaid interest on, each of the Notes at the places, at the respective times and in the manner provided herein and in the Notes. 

Section 4.02 Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan, The City of New York, an
office or agency where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or repurchase (“Paying Agent”) or for conversion (“Conversion Agent”) and where notices
and demands to or upon the Company in respect of the Notes and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the
Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office or the office or
agency of the Trustee in the Borough of Manhattan, The City of New York. 

  
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 The Company may also from time to time designate as co-Note Registrars one or more other offices
or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided that no such designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in the Borough of Manhattan, The City of New York, for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of
any such other office or agency. The terms “Paying Agent” and “Conversion Agent” include any such additional or other offices or agencies, as applicable. 

The Company hereby initially designates the Trustee as the Paying Agent, Note Registrar, Custodian and Conversion Agent and the Corporate
Trust Office and the office or agency of the Trustee in the Borough of Manhattan, The City of New York, each shall be considered as one such office or agency of the Company for each of the aforesaid purposes. 

Section 4.03 Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever necessary to avoid or fill a vacancy
in the office of Trustee, will appoint, in the manner provided in Section 7.09, a Trustee, so that there shall at all times be a Trustee hereunder. 

Section 4.04 Provisions as to Paying Agent. (a) If the Company shall appoint a Paying Agent other than the Trustee, the
Company will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section 4.04: 

(i) that it will hold all sums held by it as such agent for the payment of the principal of, the Fundamental Change Repurchase
Price, if applicable, of, and accrued and unpaid interest on, the Notes in trust for the benefit of the Holders of the Notes; 

(ii) that it will give the Trustee prompt notice of any failure by the Company to make any payment of the principal of, the
Fundamental Change Repurchase Price, if applicable, of, and accrued and unpaid interest on, the Notes when the same shall be due and payable; and 

(iii) that at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the
Trustee all sums so held in trust. 
 The Company shall, on or before each due date of the principal of, the Fundamental Change Repurchase
Price, if applicable, of, or accrued and unpaid interest on, the Notes, deposit with the Trustee (or other Paying Agent) a sum sufficient to pay such principal, the Fundamental Change Repurchase Price, if applicable, or accrued and unpaid interest,
and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such action; provided that if such deposit is made on the due date, such deposit must be received by the Paying Agent by 10:00 a.m.,
New York City time, on such date. 

  
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 (b) If the Company shall act as its own Paying Agent, it will, on or before each due date of the
principal of, the Fundamental Change Repurchase Price, if applicable, of, and accrued and unpaid interest on, the Notes, set aside, segregate and hold in trust for the benefit of the Holders of the Notes a sum sufficient to pay such principal, the
Fundamental Change Repurchase Price, if applicable, and accrued and unpaid interest so becoming due and will promptly notify the Trustee in writing of any failure to take such action and of any failure by the Company to make any payment of the
principal of, the Fundamental Change Repurchase Price, if applicable, of, or accrued and unpaid interest on, the Notes when the same shall become due and payable. 

(c) Anything in this Section 4.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a
satisfaction and discharge of this Indenture, or for any other reason, pay, cause to be paid or deliver to the Trustee all sums or amounts held in trust by the Company or any Paying Agent hereunder as required by this Section 4.04, such sums or
amounts to be held by the Trustee upon the trusts herein contained and upon such payment or delivery by the Company or any Paying Agent to the Trustee, the Company or such Paying Agent shall be released from all further liability but only with
respect to such sums or amounts. 
 (d) Any money and shares of Common Stock deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, the Fundamental Change Repurchase Price, if applicable, of, and accrued and unpaid interest on, or consideration due upon the conversion of, any Note and remaining unclaimed for two years
after such principal, the Fundamental Change Repurchase Price, if applicable, or interest has become due and payable shall be paid to the Company on request of the Company contained in an Officers’ Certificate, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money
and shares of Common Stock, 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 a newspaper published in the English language, customarily published on each Business Day and of general circulation in The Borough of Manhattan, The City of New York, notice that such money and shares of Common Stock
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 and shares of Common Stock then remaining will be repaid or delivered to the
Company. 
 Section 4.05 Existence. Subject to Article 11, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence. 
 Section 4.06 Rule 144A Information Requirement and Annual
Reports. (a) At any time the Company is not subject to Sections 13 or 15(d) of the Exchange Act, the Company shall, so long as any of the Notes or any shares of Common Stock issued upon conversion thereof shall, at such time, constitute
“restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, promptly provide to any Holder, beneficial owner or prospective purchaser of such Notes or any such shares, upon written request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act (or any other provision of Rule 144A, as such rule may be amended from time to time), to facilitate the resale of such Notes or shares of Common Stock pursuant to Rule
144A under the Securities Act, as such rule may be amended from time to time. 

  
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 (b) The Company shall file with the Trustee within 15 days after the same are required to be
filed with the Commission, copies of any documents or reports that the Company is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (giving effect to any grace period provided by Rule 12b-25 under the
Exchange Act). Any such document or report that the Company files with the Commission via the Commission’s Electronic Data Gathering, Analysis, and Retrieval (“EDGAR”) system shall be deemed to be filed with the Trustee for
purposes of this Section 4.06(b) at the time such documents are filed via the EDGAR system. 
 (c) Delivery of the reports and documents
described in subsection (b) above to the Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively rely on an Officers’ Certificate). 

(d) If (i) at any time during the six-month period beginning on, and including, the date that is six months after the last date of
original issuance of the Notes, (x) the Company fails to timely file any document or report that it is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (after giving effect to all
applicable grace periods thereunder and other than reports on Form 8-K) or (y) the Notes are not otherwise freely tradable by Holders other than the Company’s Affiliates (as a result of restrictions pursuant to U.S. securities law or the
terms of this Indenture or the Notes), or (ii) as of the 365th day after the last date of original issuance of the Notes offered hereby, the restrictive legend on the Notes specified in Section 2.05(c) has not been removed, the Notes are
assigned a restricted CUSIP or the Notes are not otherwise freely tradable by Holders other than the Company’s Affiliates (without restrictions pursuant to U.S. securities law or the terms of this Indenture or the Notes) (each such event
referred to in clause (i) or clause (ii) above, a “Restricted Transfer Default”), and, in either case, the Company has not cured any such Restricted Transfer Default by the date that is 14 calendar days following the
occurrence of such Restricted Transfer Default (the “Restricted Transfer Triggering Date”), then the Company shall pay Additional Interest in cash on the Notes. Additional Interest shall accrue on the Notes at the rate of
0.25% per annum of the principal amount of Notes outstanding for the first 90 days for which the Restricted Transfer Default has occurred and is continuing after the Restricted Transfer Triggering Date and thereafter will accrue at the rate of
0.50% per annum of the principal amount of Notes outstanding for which the Restricted Transfer Default has occurred and is continuing after the Restricted Transfer Triggering Date. 

Notwithstanding the foregoing, if, as of the 365th day after the last date of original issuance of the Notes offered hereby, the restrictive
legend on the Notes specified in Section 2.05(c) has not been removed or the Notes are not otherwise freely tradable by Holders other than the Company’s Affiliates (without restrictions pursuant to U.S. securities law or the terms of this
Indenture or the Notes), the Company may elect to designate an effective shelf registration statement for the resale of the Notes or any Common Stock issuable upon conversion of the Notes. Additional Interest shall not accrue for each day on which
such registration statement remains effective and usable by Holders for the resale of the Notes or any Common Stock issuable upon conversion of the Notes. Any such registration shall be effected on terms customary for convertible notes generally
offered in reliance upon Rule 144A under the Securities Act. 

  
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 Additional Interest will be payable in arrears on each Interest Payment Date following accrual in
the same manner as regular interest on the Notes. 
 (e) The Additional Interest that is payable in accordance with Section 4.06(d)
shall be in addition to, and not in lieu of, any Additional Interest that may be payable as a result of the Company’s election pursuant to Section 6.03. 

(f) If Additional Interest is payable by the Company pursuant to Section 4.06(d), the Company shall deliver to the Trustee an
Officers’ Certificate (upon which the Trustee may rely conclusively) to that effect stating (i) the amount of such Additional Interest that is payable and (ii) the date on which such Additional Interest 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 such Additional Interest is payable. If the Company has paid Additional Interest directly to the Persons
entitled to it, the Company shall deliver to the Trustee an Officers’ Certificate setting forth the particulars of such payment. 

Section 4.07 Investment Company Act. The Company covenants that for the period of time during which Notes are outstanding, the
Company shall not violate, whether or not the Company is subject to, Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, as such obligation
may be amended or superseded but giving effect to any exemptive relief that may be granted to the Company by the Commission. 

Section 4.08 Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it shall not at
any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law that would prohibit or forgive the Company from paying all or any portion of the principal of or
interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or that may affect the covenants or the performance of this Indenture; and the Company (to the extent it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted. 
 Section 4.09 Statement as to Compliance. The Company will deliver to the
Trustee, within 120 days after the end of each fiscal year ending after the date hereof so long as any Note is outstanding hereunder, an Officers’ Certificate stating to the knowledge of the signers thereof whether the Company is in default in
the performance of any of the terms, provisions or conditions of this Indenture. For purposes of this Section 4.09, such default shall be determined without regard to any period of grace or requirement of notice under this Indenture. 

Section 4.10 Further Instruments and Acts. Upon request of the Trustee, the Company will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture. 

  
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 ARTICLE 5 

LISTS OF HOLDERS AND REPORTS BY THE
COMPANY AND THE TRUSTEE 
 Section 5.01 Lists of Holders. The
Company covenants and agrees that it will furnish or cause to be furnished to the Trustee, semi-annually, not more than 15 days after each January 15 and July 15 in each year beginning with July 15, 2017, and at such other times as
the Trustee may request in writing, within 30 days after receipt by the Company of any such request (or such lesser time as the Trustee may reasonably request in order to enable it to timely provide any notice to be provided by it hereunder), a list
in such form as the Trustee may reasonably require of the names and addresses of the Holders as of a date not more than 15 days (or such other date as the Trustee may reasonably request in order to so provide any such notices) prior to the time such
information is furnished, except that no such list need be furnished so long as the Trustee is acting as Note Registrar. 

Section 5.02 Preservation and Disclosure of Lists. The Trustee shall preserve, in as current a form as is reasonably practicable,
all information as to the names and addresses of the Holders contained in the most recent list furnished to it as provided in Section 5.01 or maintained by the Trustee in its capacity as Note Registrar, if so acting. The Trustee may destroy any
list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished. 
 ARTICLE 6 

DEFAULTS AND REMEDIES 

Section 6.01 Events of Default. The following events shall be “Events of Default” with respect to the Notes: 

(a) default in any payment of interest on any Note when due and payable, and the default continues for a period of 30 days; 

(b) default in the payment of principal of any Note when due and payable on the Maturity Date, upon any required repurchase, upon declaration
of acceleration or otherwise; 
 (c) failure by the Company to comply with its obligation to convert the Notes in accordance with this
Indenture upon exercise of a Holder’s conversion right, and such default is not cured within 5 Business Days; 
 (d) failure by the
Company to issue a Fundamental Change Company Notice in accordance with Section 14.01(c) and such failure is not cured within 10 days after the due date for such notice; 

(e) failure by the Company to issue notice of a specified corporate event in accordance with Section 13.01(b)(ii) or 13.01(b)(iii) when
due; 
 (f) failure by the Company for 60 consecutive days after written notice from the Trustee or the Holders of at least 25% in principal
amount of the Notes then outstanding has been received by the Company to comply with any of its other agreements contained in the Notes or this Indenture; 

  
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 (g) failure by the Company to comply with the obligation set forth under Section 4.07; 

(h) default by the Company or any Significant Subsidiary of the Company with respect to any mortgage, agreement or other instrument under which
there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $25 million in the aggregate of the Company and/or any such Significant Subsidiary, whether such indebtedness now exists or
shall hereafter be created (i) resulting in such indebtedness becoming or being declared due and payable or (ii) constituting a failure to pay the principal or interest of any such debt when due and payable at its stated maturity, upon
required repurchase, upon declaration of acceleration or otherwise; 
 (i) a final judgment for the payment of $50 million or more (excluding
any amounts covered by insurance) rendered against the Company or any Significant Subsidiary of the Company, which judgment is not discharged or stayed within 60 days after (i) the date on which the right to appeal thereof has expired if no
such appeal has commenced, or (ii) the date on which all rights to appeal have been extinguished; 
 (j) (i) the Company or any
Significant Subsidiary (A) shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Company or any such Significant Subsidiary or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or any such Significant Subsidiary or any substantial part of its property; (B) shall
consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it; or (C) shall make a general assignment for the benefit of creditors; or (ii) the
Company shall admit in writing of its inability to pay its debts generally as they become due; or 
 (k) an involuntary case or other
proceeding shall be commenced against the Company or any Significant Subsidiary seeking liquidation, reorganization or other relief with respect to the Company or such Significant Subsidiary or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or such Significant Subsidiary or any substantial part of its property, and such involuntary
case or other proceeding shall remain undismissed and unstayed for a period of 60 consecutive days. 
 Section 6.02 Acceleration;
Rescission and Annulment. In case one or more Events of Default shall have occurred and be continuing (whatever the reason for such Event of Default and whether 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), then, and in each and every such case (other than an Event of Default specified in Section 6.01(j) or
Section 6.01(k) with respect to the Company, but not any of its Significant Subsidiaries and subject to Section 6.03), unless the principal of all of the Notes shall have already become due and payable, either the Trustee or the Holders of
at least 25% in aggregate principal amount of the Notes then outstanding determined in accordance with Section 8.04, by notice in writing to the Company (and to the Trustee if given by Holders), may declare 

  
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100% of the principal of, and accrued and unpaid interest, if any, on, all the Notes to be due and payable immediately, and upon any such declaration the same shall become and shall automatically
be immediately due and payable, anything in this Indenture or in the Notes contained to the contrary notwithstanding. If an Event of Default specified in Section 6.01(j) or Section 6.01(k) with respect to the Company, but not any of its
Significant Subsidiaries, occurs and is continuing, the principal of, and accrued and unpaid interest, if any, on, all Notes shall be automatically and immediately due and payable. 

This provision, however, is subject to the condition that if, at any time after the principal of the Notes shall have been so declared due and
payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the Company shall pay or deliver, as the case may be, or shall deposit with the Trustee an amount of cash
and/or shares of Common Stock sufficient to pay all matured installments of interest upon all the Notes, all amounts of consideration due upon the conversion of any and all converted Notes, and the principal of any and all Notes which shall have
become due otherwise than by acceleration (with interest upon such principal and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at the rate or rates, if any, specified in the
Notes to the date of such payment or deposit) and such amounts due to the Trustee pursuant to Section 7.06, and if any and all Events of Default under this Indenture, other than the nonpayment of the principal of Notes which shall have become
due by acceleration, shall have been cured, waived, or otherwise remedied pursuant to Section 6.09, then and in every such case (except as provided in the immediately succeeding sentence) the Holders of a majority in aggregate principal amount
of the Notes then outstanding, by written notice to the Company and to the Trustee, may waive all Defaults or Events of Default with respect to the Notes and rescind and annul such declaration and its consequences and such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver or rescission and annulment shall extend to or shall affect any subsequent Default or Event of Default, or
shall impair any right consequent thereon. Notwithstanding anything to the contrary herein, no such waiver or rescission and annulment shall extend to or shall affect any Default or Event of Default resulting from (i) the nonpayment of the
principal of, or accrued and unpaid interest on, any Notes, (ii) a failure to repurchase any Notes when required, (iii) a failure to pay or deliver, as the case may be, the consideration due upon conversion of the Notes or (iv) a
breach of a covenant that cannot be modified or amended without the consent of each Holder pursuant to Section 10.02. 

Section 6.03 Additional Interest. Notwithstanding anything in this Indenture or in the Notes to the contrary, to the extent the
Company elects, the sole remedy for Event of Default relating to the Company’s failure to comply with its obligations as set forth in Section 4.06(b) shall, after the occurrence of such an Event of Default, consist exclusively of the right
to receive Additional Interest on the Notes at a rate equal to (a) 0.25% per annum of the principal amount of the Notes outstanding for each day during the 90-day period beginning on, and including, the date on which such an Event of
Default first occurs and (b) 0.50% per annum of the principal amount of the Notes outstanding for each day during the 90-day period beginning on, and including, the 91st day following, and including, the occurrence of such an Event of
Default during which such Event of Default is continuing. Additional Interest payable pursuant to this Section 6.03 shall be in addition to, not in lieu of, any Additional Interest payable pursuant to Section 4.06(d). If the Company elects
to pay Additional Interest pursuant to this Section 6.03, 

  
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such Additional Interest shall be payable in the same manner and on the same dates as regular interest on the Notes. On the 181st day after such Event of Default (if the Event of Default relating
to the Company’s failure to file is not cured or waived prior to such 181st day), the Notes will be subject to acceleration as provided in Section 6.02. In the event the Company does not elect to pay Additional Interest following an Event
of Default in accordance with this Section 6.03, the Notes shall be subject to acceleration as provided in Section 6.02. 
 In
order to elect to pay Additional Interest as the sole remedy during the first 180 days after the occurrence of any Event of Default described in the immediately preceding paragraph, the Company must notify all Holders of the Notes, the Trustee and
the Paying Agent of such election prior to the beginning of such 180-day period. Upon the failure to timely give such notice, the Notes shall be immediately subject to acceleration as provided in Section 6.02. 

Section 6.04 Payments of Notes on Default; Suit Therefor. If an Event of Default described in clause (a) or (b) of
Section 6.01 shall have occurred, the Company shall, upon demand of the Trustee, pay or deliver, as the case may be, to it, for the benefit of the Holders of the Notes, the whole amount then due and payable or deliverable on the Notes (i.e.,
principal and interest, if any, with interest on any overdue principal and interest, if any, at the rate or rates, if any, specified in the Notes at such time) and, in addition thereto, such further amount as shall be sufficient to cover any amounts
due to the Trustee under Section 7.06. If the Company shall fail to pay or deliver, as the case may be, 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 and amounts so due but unpaid or not delivered, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon the Notes and collect the
moneys or amounts adjudged or decreed to be payable or deliverable in the manner provided by law out of the property of the Company or any other obligor upon the Notes, wherever situated. In such event, the Trustee shall be entitled to be reimbursed
or indemnified for any and all amounts reasonably expended in connection therewith (including fees and expenses of counsel) in accordance with the terms of Section 7.06 hereof. 

In the event there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor on the Notes
under title 11 of the United States Code, or any other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the
Company or such other obligor, the property of the Company or such other obligor, or in the event of any other judicial proceedings relative to the Company or such other obligor upon the Notes, or to the creditors or property of the Company or such
other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section 6.04, shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and accrued and unpaid interest, if any, in respect of the
Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers or documents and to take such other actions as it may deem 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 proceedings relative to the Company or any other obligor on the Notes,

  
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its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and to distribute the same after the deduction
of any amounts due the Trustee under Section 7.06; and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator, custodian or similar official is hereby authorized by each of the Holders to make such payments to the
Trustee, as administrative expenses, and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances and disbursements,
including agents and counsel fees, and including any other amounts due to the Trustee under Section 7.06, incurred by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and
disbursements out of the estate in any such proceedings shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, monies, securities and other property that the
Holders of the Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any
plan of reorganization, arrangement, adjustment or composition affecting the Holder or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without the
possession of any of the Notes, or the production thereof at any trial or other proceeding relative thereto, and any such suit or 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 Notes. 

In any proceedings brought by the Trustee (and in any proceedings involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any Holders of the Notes parties to any such proceedings. 

In case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or
abandoned because of a waiver or rescission and annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the Holders, and the Trustee shall, subject to any determination in
such proceeding, be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the Holders, and the Trustee shall continue as though no such proceeding had been instituted. 

Section 6.05 Application of Monies Collected by Trustee. Any monies collected by the Trustee pursuant to this Article 6 with
respect to the Notes shall be applied, subject to applicable law, in the following order, at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of the several Notes, and stamping thereon the payment, if
only partially paid, and upon surrender thereof, if fully paid: 

  
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 First, to the payment of all amounts due the Trustee under Section 7.06; 

Second, in case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment of interest on, and any
cash due upon conversion of, the Notes in default in the order of the due date of the payments of such interest and cash due upon conversion, as the case may be, with interest (to the extent that such interest has been collected by the Trustee) upon
such overdue payments at the rate or rates, if any, specified in the Notes at such time, such payments to be made ratably to the Persons entitled thereto; 

Third, in case the principal of the outstanding Notes shall have become due or, if applicable, the payment of the Fundamental Change
Repurchase Price or any cash due upon conversion shall have become due, by declaration or otherwise, and be unpaid to the payment of the whole amount then owing and unpaid upon the Notes for principal, interest, the Fundamental Change Repurchase
Price or cash due upon conversion, if any, with interest on the overdue principal and, to the extent that such interest has been collected by the Trustee, upon overdue installments of interest at the rate or rates, if any, specified in the Notes at
such time, and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal, interest, the Fundamental Change Repurchase Price or cash due upon conversion without
preference or priority of any such amount over each other (including principal over interest, or of interest over principal or of any installment of interest over any other installment of interest, or of any Note over any other Note), ratably to the
aggregate of such principal, accrued and unpaid interest, the Fundamental Change Repurchase Price or cash due upon conversion; and 

Fourth, to the payment of the remainder, if any, to the Company. 

Section 6.06 Proceedings by Holders. Except to enforce the right to receive payment of principal, the Fundamental Change Repurchase
Price, if applicable, or interest when due, or the right to receive payment or delivery of the consideration due upon conversion, no Holder of any Note shall have any right by virtue of or by availing of any provision of this Indenture to institute
any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, unless: 

(a) such Holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof, as herein
provided; 
 (b) Holders of at least 25% in aggregate principal amount of the Notes then outstanding shall have made written request upon the
Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder; 
 (c) such Holders shall have offered to the
Trustee such security or indemnity reasonably satisfactory to it against any costs, loss, liability or expense (including fees and expenses of its counsel) to be incurred therein or thereby; 

(d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused to institute any
such action, suit or proceeding; and 

  
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 (e) no direction that, in the opinion of the Trustee, is inconsistent with such written request
shall have been given to the Trustee by the Holders of a majority in principal amount of the Notes outstanding within such 60-day period pursuant to Section 6.09, 

it being understood and intended, and being expressly covenanted by the taker and Holder of every Note with every other taker and Holder and the Trustee that
no one or more 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 Holder, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all Holders (except as otherwise provided herein). For the protection and
enforcement of this Section 6.06, each and every Holder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 

Notwithstanding any other provision of this Indenture and any provision of any Note, the right of any Holder to receive payment or delivery,
as the case may be, of (w) the principal of, (x) the Fundamental Change Repurchase Price, if applicable, of, (y) accrued and unpaid interest on, and (z) the consideration due upon conversion of, such Note, on or after the
respective due dates expressed or provided for in such Note or in this Indenture, or to institute suit for the enforcement of any such payment or deliver, as the case may be, on or after such respective dates against the Company shall not be
impaired or affected without the consent of such Holder. 
 Section 6.07 Proceedings by Trustee. In case of an Event of Default
the Trustee may in its discretion (and subject to the provisions of Section 7.01 and Section 7.06) proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to
protect and enforce any of such rights, either by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. 

Section 6.08 Remedies Cumulative and Continuing. Except as provided in the last paragraph of Section 2.06, all powers and
remedies given by this Article 6 to the Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the Holders of the Notes,
by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any Holder of any of the Notes to exercise any right or power
accruing upon any Default or Event of Default shall impair any such right or power, or shall be construed to be a waiver of any such Default or Event of Default or any acquiescence therein; and, subject to the provisions of Section 6.06, every
power and remedy given by this Article 6 or by law to the Trustee or to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders. 

Section 6.09 Direction of Proceedings and Waiver of Defaults by Majority of Holders. The Holders of a majority in aggregate
principal amount of the Notes at the time outstanding determined in accordance with Section 8.04 shall have the right to direct the time, method and 

  
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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 Notes; provided, however, 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 may demand security or
indemnity reasonably satisfactory to it in accordance with Section 7.01. The Trustee may refuse to follow any direction that it determines is unduly prejudicial to the rights of any other Holder or that would involve the Trustee in personal
liability. The Holders of a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 8.04 may on behalf of the Holders of all of the Notes waive any past Default or Event of Default
hereunder and its consequences except (i) a default in the payment of accrued and unpaid interest, if any, on, or the principal of, the Notes when due that has not been cured pursuant to the provisions of Section 6.02, (ii) a failure
by the Company to pay or deliver, as the case may be, the consideration due upon conversion of the Notes, (iii) a default in the payment of the Fundamental Change Repurchase Price or (iv) a default in respect of a covenant or provision
hereof which under Article 10 cannot be modified or amended without the consent of each Holder of an outstanding Note affected. Upon any such waiver the Company, the Trustee and the Holders of the Notes shall be restored to their former positions
and rights hereunder; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this
Section 6.09, said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereon. 
 Section 6.10 Notice of Defaults. The Trustee shall, within 90 days after the
occurrence and continuance of a Default of which a Responsible Officer has actual knowledge, mail to all Holders as the names and addresses of such Holders appear upon the Note Register, notice of all Defaults known to a Responsible Officer, unless
such Defaults shall have been cured or waived before the giving of such notice; provided that, except in the case of a Default in the payment of the principal of, or accrued and unpaid interest on, any of the Notes or a Default in the payment of the
Fundamental Change Repurchase Price, if applicable, or a Default in the payment or delivery of the consideration due upon conversion, the Trustee shall be protected in withholding such notice if and so long as a committee of Responsible Officers of
the Trustee in good faith determine that the withholding of such notice is in the interests of the Holders. 
 Section 6.11
Undertaking to Pay Costs. All parties to this Indenture agree, and each Holder of any Note by its 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 and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; provided that
the provisions of this Section 6.11 (to the extent permitted by law) shall not apply to any suit instituted by the Trustee or to any suit instituted by any Holder for the enforcement of the payment of the principal of or accrued and unpaid
interest, if any, on any Note (including, but not limited to, the Fundamental Change Repurchase Price with respect to the Notes being repurchased as provided in this Indenture) on or after the due date expressed or provided for in such Note or to
any suit for the enforcement of the right to convert any Note in accordance with the provisions of Article 13. 

  
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 ARTICLE 7 

CONCERNING THE TRUSTEE 

Section 7.01 Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of an Event of Default and after the
curing or waiver 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, and no additional duties shall be implied or inferred. In case an Event of
Default has occurred that has not been cured or waived the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs; provided that if an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under this Indenture at
the request or direction of any of the Holders unless such Holders have offered to the Trustee reasonable indemnity or security against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction.

 No provision of this Indenture shall be construed to relieve the Trustee from liability for its own grossly negligent action, its own
grossly negligent failure to act or its own willful misconduct, except that: 
 (a) prior to the occurrence of an Event of Default and after
the curing or waiving of all Events of Default that may have occurred: 
 (i) the duties and obligations of the Trustee shall
be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and 
 (ii) in the absence of bad faith and willful misconduct on the
part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but, in the case of any such certificates or opinions that by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform
to the requirements of this Indenture (but need not confirm or investigate the accuracy of any mathematical calculations or other facts stated therein); 

(b) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless it
shall be proved that the Trustee was grossly negligent in ascertaining the pertinent facts; 

  
 35 

 (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it
in good faith in accordance with the direction of the Holders of not less than a majority in principal amount of the Notes at the time outstanding determined as provided in Section 8.04 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 or refraining from taking any action believed in good faith to be beyond the scope of its powers, under this Indenture; 

(d) whether or not therein provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording
protection to, the Trustee shall be subject to the provisions of this Section; 
 (e) the Trustee shall not be liable in respect of any
payment (as to the correctness of amount, entitlement to receive or any other matters relating to payment) or notice effected by the Company or any Paying Agent or any records maintained by any co-Note Registrar with respect to the Notes; 

(f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice to be sent to
the Trustee, the Trustee may conclusively rely on its failure to receive such notice as reason to act as if no such event occurred, unless such Responsible Officer of the Trustee had actual knowledge of such event; 

(g) in the absence of written investment direction from the Company, all cash received by the Trustee shall be placed in a non-interest bearing
trust account, and in no event shall the Trustee be liable for the selection of investments or for investment losses incurred thereon or for losses incurred as a result of the liquidation of any such investment prior to its maturity date or the
failure of the party directing such investments prior to its maturity date or the failure of the party directing such investment to provide timely written investment direction, and the Trustee shall have no obligation to invest or reinvest any
amounts held hereunder in the absence of such written investment direction from the Company; and 
 (h) in the event that the Trustee is also
acting as Custodian, Note Registrar, Paying Agent, Conversion Agent, Bid Solicitation Agent or transfer agent hereunder, the rights and protections afforded to the Trustee pursuant to this Article 7 shall also be afforded to such Custodian, Note
Registrar, Paying Agent, Conversion Agent, Bid Solicitation Agent or transfer agent. 
 None of the provisions contained in this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers. 

Section 7.02 Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section 7.01: 

(a) the Trustee may conclusively rely and shall be fully protected in acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, bond, Note, coupon or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties; 

  
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 (b) any request, direction, order or demand of the Company mentioned herein shall be sufficiently
evidenced by an Officers’ Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary
of the Company; 
 (c) the Trustee may consult with counsel and require an Opinion of Counsel and any advice of such counsel or Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 

(d) 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 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 at the expense of the Company and shall incur no
liability of any kind by reason of such inquiry or investigation; 
 (e) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents, custodians, nominees or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent, custodian, nominee or attorney appointed by
it with due care hereunder; and 
 (f) the permissive rights of the Trustee enumerated herein shall not be construed as duties. 

In no event shall the Trustee be liable for any consequential loss or damage of any kind whatsoever (including but not limited to lost
profits), even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action other than any such loss or damage caused by the Trustee’s willful misconduct or gross negligence. The Trustee shall
not be charged with knowledge of any Default or Event of Default with respect to the Notes, unless either (1) a Responsible Officer shall have actual knowledge of such Default or Event of Default or (2) written notice of such Default or
Event of Default shall have been given to the Trustee by the Company or by any Holder of the Notes. 
 Section 7.03 No
Responsibility for Recitals, Etc. The recitals contained herein and in the Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes or the proceeds of any
Notes authenticated and delivered by the Trustee in conformity with the provisions of this Indenture. 
 Section 7.04 Trustee,
Paying Agents, Conversion Agents, Bid Solicitation Agent or Note Registrar May Own Notes. The Trustee, any Paying Agent, any Conversion Agent, Bid Solicitation Agent or Note Registrar, in its individual or any other capacity, may become the
owner or pledgee of Notes with the same rights it would have if it were not the Trustee, Paying Agent, Conversion Agent, Bid Solicitation Agent or Note Registrar. 

  
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 Section 7.05 Monies and Shares of Common Stock to Be Held in Trust. All monies and
shares of Common Stock received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Money and shares of Common Stock held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money or shares of Common Stock received by it hereunder except as may be agreed from time to time by the Company and the
Trustee. 
 Section 7.06 Compensation and Expenses of Trustee. The Company covenants and agrees to pay to the Trustee from time
to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as
mutually agreed to in writing between the Trustee and the Company, and the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in accordance
with any of the provisions of this Indenture in any capacity thereunder (including the reasonable compensation and the expenses and disbursements of its agents and counsel and of all Persons not regularly in its employ) except any such expense,
disbursement or advance as shall have been caused by its gross negligence, willful misconduct or bad faith. The Company also covenants to indemnify the Trustee in any capacity under this Indenture and any other document or transaction entered into
in connection herewith and its agents and any authenticating agent for, and to hold them harmless against, any loss, claim, damage, liability or expense incurred without gross negligence, willful misconduct or bad faith on the part of the Trustee,
its officers, directors, agents or employees, or such agent or authenticating agent, as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity hereunder, including the costs
and expenses of defending themselves against any claim of liability in the premises. The obligations of the Company under this Section 7.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements
and advances shall be secured by a senior claim to which the Notes are hereby made subordinate on all money or property held or collected by the Trustee, except, subject to the effect of Section 6.05, funds held in trust herewith for the
benefit of the Holders of particular Notes. The Trustee’s right to receive payment of any amounts due under this Section 7.06 shall not be subordinate to any other liability or indebtedness of the Company. The obligation of the Company
under this Section 7.06 shall survive the satisfaction and discharge of this Indenture and the earlier resignation or removal or the Trustee. The Company need not pay for any settlement made without its consent, which consent shall not be
unreasonably withheld. The indemnification provided in this Section 7.06 shall extend to the officers, directors, agents and employees of the Trustee. 

Without prejudice to any other rights available to the Trustee under applicable law, when the Trustee and its agents and any authenticating
agent incur expenses or render services after an Event of Default specified in Section 6.01(j) or Section 6.01(k) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any
bankruptcy, insolvency or similar laws. 

  
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 Section 7.07 Officers’ Certificate as Evidence. Except as otherwise provided in
Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the absence of gross negligence, willful misconduct, recklessness and bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate delivered to the Trustee, and such Officers’ Certificate, in the absence of gross negligence, willful misconduct, recklessness and bad faith on the part of the Trustee, shall be full warrant to the Trustee for any
action taken or omitted by it under the provisions of this Indenture upon the faith thereof. 
 Section 7.08 Eligibility of
Trustee. There shall at all times be a Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000. If such Person publishes reports
of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Person shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article. 
 Section 7.09 Resignation or Removal of Trustee. (a) The Trustee may at any time
resign by giving written notice of such resignation to the Company and by mailing notice thereof to the Holders at their addresses as they shall appear on the Note Register. Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee
shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation to the Holders, the resigning Trustee may, upon ten Business Days’ notice to the Company and the Holders, petition any
court of competent jurisdiction for the appointment of a successor trustee, or any Holder who has been a bona fide holder of a Note or Notes for at least six months may, subject to the provisions of Section 6.11, on behalf of himself and all
others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee. 

(b) In case at any time any of the following shall occur: 

(i) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.08 and shall fail to resign
after written request therefor by the Company or by any such Holder, or 
 (ii) the Trustee shall become incapable of acting,
or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, 

  
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 then, in either case, the Company may by a Board Resolution remove the Trustee and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of Section 6.11, any
Holder who has been a bona fide holder of a Note or Notes for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee. 

(c) The Holders of a majority in aggregate principal amount of the Notes at the time outstanding, as determined in accordance with
Section 8.04, may at any time remove the Trustee and nominate a successor trustee that shall be deemed appointed as successor trustee unless within ten days after notice to the Company of such nomination the Company objects thereto, in which
case the Trustee so removed or any Holder, upon the terms and conditions and otherwise as in Section 7.09(a) provided, may petition any court of competent jurisdiction for an appointment of a successor trustee. 

(d) The Trustee may be removed at any time with respect to the Notes by the Company, by an Officers’ Certificate delivered to the Trustee,
provided that contemporaneously therewith (x) the Company immediately appoints a successor Trustee with respect to the Notes meeting the requirements of Section 7.08 hereof and (y) the terms of Section 7.10 hereof are complied
with in respect of such appointment (the Trustee being removed hereby agreeing to execute the instrument contemplated by Section 7.10 hereof, if applicable, under such circumstances) and provided further that no Default or Event of Default with
respect to the Notes shall have occurred and then be continuing at such time. 
 (e) Any resignation or removal of the Trustee and
appointment of a successor trustee pursuant to any of the provisions of this Section 7.09 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.10. 

Section 7.10 Acceptance by Successor Trustee. Any successor trustee appointed as provided in Section 7.09 shall execute,
acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of the predecessor trustee shall become effective and such successor trustee, without
any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request of the
Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amounts then due it pursuant to the provisions of Section 7.06, execute and deliver an instrument transferring to such successor trustee all the rights
and powers of the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor trustee all such rights
and powers. Any trustee ceasing to act shall, nevertheless, retain a senior claim to which the Notes are hereby made subordinate on all money or property held or collected by such trustee as such, except for funds held in trust for the benefit of
Holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 7.06. 

  
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 No successor trustee shall accept appointment as provided in this Section 7.10 unless at the
time of such acceptance such successor trustee shall be eligible under the provisions of Section 7.08. 
 Upon acceptance of
appointment by a successor trustee as provided in this Section 7.10, each of the Company and the successor trustee, at the written direction and at the expense of the Company shall mail or cause to be mailed notice of the succession of such
trustee hereunder to the Holders at their addresses as they shall appear on the Note Register. If the Company fails to mail such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Company. 
 Section 7.11 Succession by Merger, Etc. Any corporation or other entity
into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation or other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation or other
entity succeeding to all or substantially all of the corporate trust business of the Trustee (including the administration of this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto; provided that in the case of any corporation or other entity succeeding to all or substantially all of the corporate trust business of the Trustee such corporation or other entity shall be
eligible under the provisions of Section 7.08. 
 In case at the time such successor to the Trustee shall succeed to the trusts created
by this Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor
trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or an authenticating agent appointed by such successor trustee may authenticate such Notes
either in the name of any predecessor trustee hereunder or in the name of the successor trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Notes or in this Indenture provided that the certificate
of the Trustee shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by
merger, conversion or consolidation. 
 Section 7.12 Trustee’s Application for Instructions from the Company. 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 of the Notes under this Indenture) 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 three Business Days after the date any
officer that the Company has indicated to the Trustee should receive such application 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 any omission), the Trustee shall have received written instructions in accordance with this Indenture in response to such application specifying the action to be taken or omitted. 

  
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 ARTICLE 8 

CONCERNING THE HOLDERS 

Section 8.01 Action by Holders. Whenever in this Indenture it is provided that the Holders of a specified percentage in aggregate
principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action, the Holders of
such specified percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Holders in person or by agent or proxy appointed in writing, or (b) by the record of the Holders
voting in favor thereof at any meeting of Holders duly called and held in accordance with the provisions of Article 9, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Holders. Whenever the
Company or the Trustee solicits the taking of any action by the Holders of the Notes, the Company or the Trustee may fix, but shall not be required to, in advance of such solicitation, a date as the record date for determining Holders entitled to
take such action. The record date if one is selected shall be not more than fifteen days prior to the date of commencement of solicitation of such action. 

Section 8.02 Proof of Execution by Holders. Subject to the provisions of Section 7.01, Section 7.02 and
Section 9.05, proof of the execution of any instrument by a Holder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. The holding of Notes shall be proved by the Note Register or by a certificate of the Note Registrar. The record of any Holders’ meeting shall be proved in the manner provided in Section 9.06. 

Section 8.03 Who Are Deemed Absolute Owners. The Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion
Agent and any Note Registrar shall deem the Person in whose name a Note shall be registered upon the Note Register to be, and shall treat it as, the absolute owner of such Note (whether or not such Note shall be overdue and notwithstanding any
notation of ownership or other writing thereon made by any Person other than the Company or any Note Registrar) for the purpose of receiving payment of or on account of the principal of and (subject to Section 2.03) accrued and unpaid interest
on such Note, for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor any Paying Agent nor any Conversion Agent nor any Note Registrar shall be affected by any notice to the contrary. All such payments so
made to any Holder for the time being, or upon its order, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note. Notwithstanding anything to the contrary
in this Indenture or the Notes following an Event of Default, any Holder of a beneficial interest in a Global Note may directly enforce against the Company, without the consent, solicitation, proxy, authorization or any other action of the
Depositary or any other Person, such Holder’s right to exchange such beneficial interest for a Note in certificated form in accordance with the provisions of this Indenture. 

  
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 Section 8.04 Company-Owned Notes Disregarded. In determining whether the Holders of
the requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or other action under this Indenture, Notes that are owned by the Company or by any Affiliate of the Company shall be disregarded and deemed not to be
outstanding for the purpose of any such determination; provided that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or other action only Notes that a Responsible Officer knows
are so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as outstanding for the purposes of this Section 8.04 if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s
right to so act with respect to such Notes and that the pledgee is not the Company or an Affiliate of the Company. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to
the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by or for the account of any of the above
described Persons; and, subject to Section 7.01, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein set forth and of the fact that all Notes not listed therein are outstanding for
the purpose of any such determination. 
 Section 8.05 Revocation of Consents; Future Holders Bound. At any time prior to (but
not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the Holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in connection with such action, any
Holder of a Note that is shown by the evidence to be included in the Notes the Holders of which have consented to such action may, by filing written notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 8.02, revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the Holder of any Note shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Note and of any
Notes issued in exchange or substitution therefor or upon registration of transfer thereof, irrespective of whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor or upon registration of
transfer thereof. 
 ARTICLE 9 

HOLDERS’ MEETINGS 

Section 9.01 Purpose of Meetings. A meeting of Holders may be called at any time and from time to time pursuant to the provisions
of this Article 9 for any of the following purposes: 
 (a) to give any notice to the Company or to the Trustee or to give any directions to
the Trustee permitted under this Indenture, or to consent to the waiving of any Default or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Holders pursuant to any of the provisions of Article 6;

 (b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of Article 7; 

(c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 10.02; or 

  
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 (d) to take any other action authorized to be taken by or on behalf of the Holders of any
specified aggregate principal amount of the Notes under any other provision of this Indenture or under applicable law. 
 Section 9.02
Call of Meetings by Trustee. The Trustee may at any time call a meeting of Holders to take any action specified in Section 9.01, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the
Holders, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to Section 8.01, shall be mailed to Holders of such Notes at
their addresses as they shall appear on the Note Register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than 20 nor more than 90 days prior to the date fixed for the meeting. 

Any meeting of Holders shall be valid without notice if the Holders of all Notes then outstanding are present in person or by proxy or if
notice is waived before or after the meeting by the Holders of all Notes outstanding, and if the Company and the Trustee are either present by duly authorized representatives or have, before or after the meeting, waived notice. 

Section 9.03 Call of Meetings by Company or Holders. In case at any time the Company, pursuant to a Board Resolution, or the
Holders of at least 10% in aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of Holders, by written request setting forth in reasonable detail the action proposed to be taken at the meeting,
and the Trustee shall not have mailed the notice of such meeting within 20 days after receipt of such request, then the Company or such Holders may determine the time and the place for such meeting and may call such meeting to take any action
authorized in Section 9.01, by mailing notice thereof as provided in Section 9.02. 
 Section 9.04 Qualifications for
Voting. To be entitled to vote at any meeting of Holders a Person shall (a) be a Holder of one or more Notes on the record date pertaining to such meeting or (b) be a Person appointed by an instrument in writing as proxy by a Holder of
one or more Notes on the record date pertaining to such meeting. The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 
 Section 9.05
Regulations. Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders, in regard to proof of the holding of Notes and of the appointment of
proxies, and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall
think fit. 
 The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have
been called by the Company or by Holders as provided in Section 9.03, in which case the Company or the Holders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote of the Holders of a majority in principal amount of the Notes represented at the meeting and entitled to vote at the meeting. 

  
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 Subject to the provisions of Section 8.04, at any meeting of Holders each Holder or
proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or represented by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Note challenged as not outstanding and ruled by
the chairman of the meeting to be not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of Notes held by it or instruments in writing as aforesaid duly designating it as the proxy to vote on behalf of other
Holders. Any meeting of Holders duly called pursuant to the provisions of Section 9.02 or Section 9.03 may be adjourned from time to time by the Holders of a majority of the aggregate principal amount of Notes represented at the meeting,
whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice. 
 Section 9.06
Voting. The vote upon any resolution submitted to any meeting of Holders shall be by written ballot on which shall be subscribed the signatures of the Holders or of their representatives by proxy and the outstanding principal amount of the
Notes held or represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting
their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Holders shall be prepared by the secretary of the meeting and there shall be attached to said record the
original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided
in Section 9.02. The record shall show the principal amount of the Notes voting in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of
the duplicates shall be delivered to the Company and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 

Any record so signed and verified shall be conclusive evidence of the matters therein stated. 

Section 9.07 No Delay of Rights by Meeting. Nothing contained in this Article 9 shall be deemed or construed to authorize or
permit, by reason of any call of a meeting of Holders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee or to the
Holders under any of the provisions of this Indenture or of the Notes. 
 ARTICLE 10 

SUPPLEMENTAL INDENTURES 

Section 10.01 Supplemental Indentures Without Consent of Holders. The Company, when authorized by the resolutions of the Board of
Directors and the Trustee, at the Company’s expense and without notice, may from time to time and at any time enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 

  
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 (a) to cure or supplement any ambiguity, omission, defect or inconsistency; 

(b) to provide for the assumption by a Successor Company of the obligations of the Company under this Indenture pursuant to Article 11 or
Section 13.07; 
 (c) to add guarantees with respect to the Notes; 

(d) to secure the Notes; 
 (e) to
add to the covenants or Events of Default for the benefit of the Holders or surrender any right or power conferred upon the Company; 
 (f)
to make any change that does not adversely affect the rights of any Holder; 
 (g) to conform the provisions of this Indenture or the Notes
to the “Description of Notes” section of the Offering Memorandum; 
 (h) to evidence and provide for the appointment under this
Indenture of a successor Trustee; 
 (i) to make any other change that does not adversely affect the interests of the Holders in any material
respect. 
 Upon the written request of the Company, the Trustee is hereby authorized to join with the Company in the execution of any such
supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to, but may in its discretion, enter into any supplemental indenture that affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
 Any supplemental indenture authorized by the
provisions of this Section 10.01 may be executed by the Company and the Trustee without the consent of the Holders of any of the Notes at the time outstanding, notwithstanding any of the provisions of Section 10.02. 

Section 10.02 Supplemental Indentures with Consent of Holders. With the consent (evidenced as provided in Article 8) of the
Holders of at least a majority in aggregate principal amount of the Notes then outstanding (determined in accordance with Article 8 and including, without limitation, consents obtained in connection with a repurchase of, or tender or exchange offer
for, Notes), the Company, when authorized by the resolutions of the Board of Directors and the Trustee, at the Company’s expense, may from time to time and at any time 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 any supplemental indenture or of modifying in any manner the rights of the Holders; provided, however, that, without the
consent of each Holder of an outstanding Note affected, no such supplemental indenture shall: 
 (a) reduce the amount of Notes whose Holders
must consent to an amendment; 
 (b) reduce the rate of or extend the stated time for payment of interest on any Note; 

  
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 (c) reduce the principal of or extend the Maturity Date of any Note; 

(d) make any change that adversely affects the conversion rights of any Notes; 

(e) reduce the Fundamental Change Repurchase Price of any Note or amend or modify in any manner adverse to the Holders the Company’s
obligation to make such payments, whether through an amendment or waiver of provisions in the covenants, definitions or otherwise; 
 (f)
make any Note payable in money other than that stated in the Note; 
 (g) impair the right of any Holder to receive payment of principal of
and interest on such Holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Note; or 

(h) make any change in this Article 10 that requires each Holder’s consent or in the waiver provisions in Section 6.02 or
Section 6.09, except to increase any such percentage or to provide that other provisions of the Indenture cannot be modified or waived without the consent of the Holder of each outstanding Note affected thereby. 

Upon the written request of the Company, and upon the filing with the Trustee of evidence of the consent of Holders as aforesaid and subject
to Section 10.05, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. 
 Holders do not need under
this Section 10.02 to approve the particular form of any proposed supplemental indenture. It shall be sufficient if such Holders approve the substance thereof. After any such supplemental indenture becomes effective, the Company shall mail to
the Holders a notice briefly describing such supplemental indenture. However, the failure to give such notice to all the Holders, or any defect in the notice, will not impair or affect the validity of the supplemental indenture. 

Section 10.03 Effect of Supplemental Indentures. Upon the execution of any supplemental indenture pursuant to the provisions of
this Article 10, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the
Holders shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms
and conditions of this Indenture for any and all purposes. 
 Section 10.04 Notation on Notes. Notes authenticated and delivered
after the execution of any supplemental indenture pursuant to the provisions of this Article 10 may, at the Company’s expense, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any 

  
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modification of this Indenture contained in any such supplemental indenture may, at the Company’s expense, be prepared and executed by the Company, authenticated by the Trustee (or an
authenticating agent duly appointed by the Trustee pursuant to Section 16.10) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding. 

Section 10.05 Evidence of Compliance of Supplemental Indenture to Be Furnished Trustee. In addition to the documents required by
Section 16.05, the Trustee shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant hereto complies with the requirements of this Article 10 and is permitted
or authorized by the Indenture. 
 ARTICLE 11 

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

 Section 11.01 Company May Consolidate, Etc. on Certain Terms. Subject to the provisions of Section 11.02, the
Company shall not consolidate with or merge with or into, or sell, convey, transfer or lease all or substantially all of its properties and assets to, another Person (provided that a pledge of its assets pursuant to any Credit Facility shall
be deemed not to be a sale, conveyance, transfer or lease), unless: 
 (a) the resulting, surviving or transferee Person (the
“Successor Company”), if not the Company, shall be a corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia, and the Successor Company (if not the Company)
shall expressly assume, by supplemental indenture, all of the obligations of the Company under the Notes and this Indenture; and 
 (b)
immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing under this Indenture. 

Section 11.02 Successor Corporation to Be Substituted. In case of any such consolidation, merger, sale, conveyance, transfer or
lease and upon the assumption by the Successor Company, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual payment of the principal of and accrued and unpaid interest on
all of the Notes, the due and punctual delivery or payment, as the case may be, of any consideration due upon conversion of the Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by
the Company, such Successor Company 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, except in the case of a lease of all or substantially all of the
Company’s properties and assets. Such Successor Company 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 Notes issuable hereunder which theretofore shall not have been
signed by the Company and delivered to the Trustee; and, upon the order of such Successor Company instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall
deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by the Officers of the Company to the Trustee for authentication, and any Notes that such Successor Company thereafter shall cause to
be signed and delivered to the Trustee for that purpose. All the Notes so 

  
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issued shall in all respects have the same legal rank and benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though all
of such Notes had been issued at the date of the execution hereof. In the event of any such consolidation, merger, sale, conveyance or transfer (but not in the case of a lease), upon compliance with this Article 11 the Person named as the
“Company” in the first paragraph of this Indenture (or any successor that shall thereafter have become such in the manner prescribed in this Article 11) may be dissolved, wound up and liquidated at any time thereafter and, except in the
case of a lease, such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations under this Indenture. 

In case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance)
may be made in the Notes thereafter to be issued as may be appropriate. 
 Section 11.03 Opinion of Counsel to Be Given to
Trustee. No consolidation, merger, sale, conveyance, transfer or lease shall be effective unless the Trustee shall receive as conclusive evidence an Officers’ Certificate and an Opinion of Counsel that any such consolidation, merger, sale,
conveyance, transfer or lease and any such assumption and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, complies with the provisions of this Article 11. 

ARTICLE 12 

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
AND DIRECTORS 
 Section 12.01 Indenture and Notes Solely Corporate Obligations. No recourse
for the payment of the principal of or accrued and unpaid interest on any Note, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this Indenture or
in any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, investment adviser, employee, agent, Officer, director or Subsidiary, as such,
past, present or future, of the Company or of any successor corporation, either directly or through the Company or 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; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issue of the Notes. 

ARTICLE 13 

CONVERSION OF NOTES 

Section 13.01 Conversion Privilege. (a) Subject to and upon compliance with the provisions of this Article 13, each Holder of
a Note shall have the right, at such Holder’s option, to convert all or any portion (if the portion to be converted is $1,000 principal amount or an integral multiple thereof) of such Note (i) subject to satisfaction of the conditions
described in Section 13.01(b), at any time prior to the close of business on the Business Day immediately preceding August 1, 2021 under the circumstances and during the periods set forth in Section 13.01(b), and
(ii) irrespective of the conditions described in Section 13.01(b), on or after August 1, 2021 and prior to the close of business on the Scheduled Trading Day immediately preceding 

  
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the Maturity Date, in each case, at an initial conversion rate of 60.9366 shares of Common Stock (subject to adjustment as provided in Section 13.04, the “Conversion Rate”)
per $1,000 principal amount of Notes (subject to the settlement provisions of Section 13.02, the “Conversion Obligation”). 

(b) (i) Prior to the close of business on the Business Day immediately preceding August 1, 2021, the Notes may be surrendered for
conversion during the five Business Day period immediately after any five consecutive Trading Day period (the “Measurement Period”) in which the Trading Price per $1,000 principal amount of Notes, as determined following a request
by a Holder of Notes in accordance with this subsection (b)(i), for each Trading Day of the Measurement Period was less than 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate on each such Trading Day. The
Trading Prices shall be determined by the Bid Solicitation Agent pursuant to this subsection (b)(i) and the definition of Trading Price set forth in this Indenture. The Company shall provide written notice to the Bid Solicitation Agent of the three
independent nationally recognized securities dealers selected by the Company pursuant to the definition of Trading Price, along with appropriate contact information for each. The Bid Solicitation Agent shall have no obligation to determine the
Trading Price per $1,000 principal amount of Notes unless the Company has requested such determination and provided it with the names and contact information for such three independent nationally recognized securities dealers; and the Company shall
have no obligation to make such request unless Holders of at least $2,000,000 aggregate principal amount of Notes provide the Company with reasonable evidence that the Trading Price per $1,000 principal amount of Notes would be less than 98% of the
product of the Last Reported Sale Price of the Common Stock and the Conversion Rate, at which time the Company shall instruct the Bid Solicitation Agent to determine the Trading Price per $1,000 principal amount of Notes beginning on the next
Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate. If the Company
does not instruct the Bid Solicitation Agent to determine in the manner provided herein, the Trading Price per $1,000 principal amount of Notes when obligated as provided in the preceding sentence, or if the Company instructs the Bid Solicitation
Agent to obtain bids and the Bid Solicitation Agent fails to make such determination, then, in either case, the Trading Price per $1,000 principal amount of Notes shall be deemed to be less than 98% of the product of the Last Reported Sale Price of
the Common Stock and the Conversion Rate on each Trading Day of such failure. If the Trading Price condition set forth above has been met, the Company shall so notify the Holders, the Trustee and the Conversion Agent (if other than the Trustee). If,
at any time after the Trading Price condition set forth above has been met, the Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the product of the Last Reported Sale Price of the Common Stock and the applicable
Conversion Rate, the Company shall so notify the Holders of the Notes, the Trustee and the Conversion Agent (if other than the Trustee). 

  
 50 

 (ii) If, prior to the close of business on the Business Day immediately preceding
August 1, 2021, the Company elects to: 
 (A) issue to all or substantially all holders of its Common Stock any rights,
options or warrants entitling them, for a period of not more than 45 calendar days after the announcement date of such issuance, to subscribe for or purchase shares of its Common Stock, at a price per share that is less than the average of the Last
Reported Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such issuance; or 

(B) distribute to all or substantially all holders of its Common Stock the Company’s assets, debt securities or rights to
purchase securities of the Company, which distribution has a per share value, as reasonably determined by the Board of Directors, exceeding 10% of the Last Reported Sale Price of the Common Stock on the Trading Day preceding the date of announcement
for such distribution, 
 then, in either case, the Company shall notify all Holders of the Notes, the Trustee and the Conversion Agent (if other than the
Trustee) at least 25 Scheduled Trading Days prior to the Ex- Dividend Date for such issuance or distribution. Once the Company has given such notice, the Notes may be surrendered for conversion at any time until the earlier of (1) the close of
business on the Business Day immediately preceding the Ex-Dividend Date for such issuance or distribution and (2) the Company’s announcement that such issuance or distribution will not take place, even if the Notes are not otherwise
convertible at such time. Notwithstanding the foregoing, no Notes may be surrendered for conversion if Holders participate, at the same time and upon the same terms as holders of the Common Stock and solely as a result of holding the Notes, in any
of the transactions described in clauses (A) or (B) of this subsection (ii) without having to convert their Notes as if they held a number of shares of Common Stock equal to the Conversion Rate, multiplied by the principal amount
(expressed in thousands) of Notes held by such Holder. For purposes of Section 13.01(b)(ii)(A), in determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of the Common Stock at less than such
average of the Last Reported Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such issuance, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights, options or warrants and any amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of Directors. 
 (iii) If a transaction or event that
constitutes a Fundamental Change or a Make-Whole Fundamental Change occurs prior to the close of business on the Business Day immediately preceding August 1, 2021, regardless of whether a Holder has the right to require the Company to
repurchase the Notes pursuant to Section 14.01, or if the Company is a party to a consolidation, merger, binding share exchange, or transfer or lease of all or substantially all of its assets, pursuant to which the Common Stock would be
converted into cash, securities or other assets, the Notes may be surrendered for conversion at any time from or after the date that is 25 Scheduled Trading Days prior to the anticipated effective date of the transaction (or, if later, the Business
Day after the Company gives notice of such transaction) until 35 Trading Days after the actual effective date of such transaction or, if such transaction also constitutes a Fundamental Change, until the related Fundamental Change Repurchase Date.
The Company shall notify Holders, the Trustee and the Conversion Agent (if other than the Trustee) (i) as promptly 

  
 51 

 
as practicable following the date the Company publicly announces such transaction but in no event less than 25 Scheduled Trading Days prior to the anticipated effective date of such transaction
or (ii) if the Company does not have knowledge of such transaction at least 25 Scheduled Trading Days prior to the anticipated effective date of such transaction, within two Business Days of the date upon which the Company receives notice, or
otherwise becomes aware, of such transaction but in no event later than the actual effective date of such transaction. 

(iv) Prior to the close of business on the Business Day immediately preceding August 1, 2021, the Notes may be surrendered
for conversion during any calendar quarter commencing after the calendar quarter ending on March 31, 2017 (and only during such calendar quarter), if the Last Reported Sale Price of the Common Stock for at least 20 Trading Days (whether or not
consecutive) during the period of 30 consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar quarter as reported to the Conversion Agent by the Company is greater than or equal to 130% of the Conversion Price on
each applicable Trading Day. Upon receipt of and on the basis of such report from the Company, the Conversion Agent, on behalf of the Company, shall determine at the beginning of each calendar quarter commencing after March 31, 2017 whether the
Notes may be surrendered for conversion in accordance with this clause (iv) and shall notify the Company and the Trustee if the Notes become convertible in accordance with this clause (iv), and after receipt of such notice the Company shall so
notify the Holders. 
 Section 13.02 Conversion Procedure; Settlement Upon Conversion. 

(a) Subject to this Section 13.02, Section 13.03(b) and Section 13.07(a), upon conversion of any Note, the Company shall pay or
deliver, as the case may be, to the converting Holder, in respect of each $1,000 principal amount of Notes being converted, cash (“Cash Settlement”), shares of Common Stock, together with cash, if applicable, in lieu of any
fractional share of Common Stock in accordance with subsection (j) of this Section 13.02 (“Physical Settlement”) or a combination of cash and shares of Common Stock, together with cash, if applicable, in lieu of any
fractional share of Common Stock in accordance with subsection (j) of this Section 13.02 (“Combination Settlement”), at its election, as set forth in this Section 13.02. 

(i) All conversions occurring on or after August 1, 2021shall be settled using the same Settlement Method. 

(ii) Prior to August 1, 2021, the Company shall use the same Settlement Method for all conversions occurring on the same
Conversion Date, but the Company shall not have any obligation to use the same Settlement Method with respect to conversions that occur on different Conversion Dates. 

(iii) If, in respect of any Conversion Date (or any conversions of Notes occurring during the period beginning on, but
excluding, August 1, 2021 and ending on, and including, the Business Day immediately preceding the Maturity Date, as the case may be), the Company elects to deliver a notice (the “Settlement Notice”) of the relevant

  
 52 

 
Settlement Method in respect of such Conversion Date (or such period, as the case may be), the Company, through the Trustee, shall deliver such Settlement Notice to converting Holders no later
than the close of business on the Trading Day immediately following the relevant Conversion Date (or, in the case of any conversions occurring on or after August 1, 2021, no later than August 1, 2021). If the Company does not elect a
Settlement Method prior to the deadline set forth in the immediately preceding sentence, the Company shall no longer have the right to elect Cash Settlement or Physical Settlement and the Company shall be deemed to have elected Combination
Settlement in respect of its Conversion Obligation, and the Specified Dollar Amount per $1,000 principal amount of Notes shall be equal to $1,000. Such Settlement Notice shall specify the relevant Settlement Method and in the case of an election of
Combination Settlement, the relevant Settlement Notice shall indicate the Specified Dollar Amount. If the Company delivers a Settlement Notice electing Combination Settlement in respect of its Conversion Obligation but does not indicate a Specified
Dollar Amount in such Settlement Notice, the Specified Dollar Amount per $1,000 principal amount of Notes shall be deemed to be $1,000. 

(iv) The cash, shares of Common Stock or combination of cash and shares of Common Stock in respect of any conversion of Notes
(the “Settlement Amount”) shall be computed by the Company as follows: 
 (A) if the Company elects to
satisfy its Conversion Obligation in respect of such conversion by Physical Settlement, the Company shall deliver to the converting Holder in respect of each $1,000 principal amount of Notes being converted a number of shares of Common Stock equal
to the Conversion Rate in effect on the Conversion Date; 
 (B) if the Company elects to satisfy its Conversion Obligation in
respect of such conversion by Cash Settlement, the Company shall pay to the converting Holder in respect of each $1,000 principal amount of Notes being converted an amount in cash equal to the sum of the Daily Conversion Values for each of the 15
consecutive Trading Days during the related Observation Period; and 
 (C) if the Company elects (or is deemed to have
elected) to satisfy its Conversion Obligation in respect of such conversion by Combination Settlement, the Company shall pay or deliver, as the case may be, in respect of each $1,000 principal amount of Notes being converted, a Settlement Amount
equal to the sum of the Daily Settlement Amounts for each of the 15 consecutive Trading Days during the related Observation Period. 

(v) The Daily Settlement Amounts (if applicable) and the Daily Conversion Values (if applicable) shall be determined by the
Company promptly following the last day of the Observation Period. Promptly after such determination of the Daily Settlement Amounts or the Daily Conversion Values, as the case may be, and the amount of cash payable in lieu of any fractional share,
the Company shall notify the Trustee and the Conversion Agent (if other than the Trustee) of the Daily Settlement Amounts or the Daily Conversion Values, as the case may be, and the amount of cash payable in lieu of fractional shares of Common
Stock. The Trustee and the Conversion Agent (if other than the Trustee) shall have no responsibility for any such determination. 

  
 53 

 (b) Subject to Section 13.02(e), before any Holder of a Note shall be entitled to convert a
Note as set forth above, such Holder shall (i) in the case of a Global Note, comply with the procedures of the Depositary in effect at that time and, if required, pay funds equal to interest payable on the next Interest Payment Date to which
such Holder is not entitled as set forth in Section 13.02(h) and (ii) in the case of a Physical Note (1) complete, manually sign and deliver an irrevocable notice to the Conversion Agent as set forth in the Form of Notice of
Conversion (or a facsimile thereof) (a “Notice of Conversion”) at the office of the Conversion Agent and state in writing therein the principal amount of Notes to be converted and the name or names (with addresses) in which such
Holder wishes the certificate or certificates for any shares of Common Stock to be delivered upon settlement of the Conversion Obligation to be registered, (2) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by
appropriate endorsement and transfer documents), at the office of the Conversion Agent, (3) if required, furnish appropriate endorsements and transfer documents and (4) if required, pay funds equal to interest payable on the next Interest
Payment Date to which such Holder is not entitled as set forth in Section 13.02(h). The Trustee (and, if different, the Conversion Agent) shall notify the Company of any conversion pursuant to this Article 13 on the Conversion Date for such
conversion. No Notice of Conversion with respect to any Notes may be surrendered by a Holder thereof if such Holder has also delivered a Fundamental Change Repurchase Notice to the Company (or Paying Agent) in respect of such Notes and not validly
withdrawn such Fundamental Change Repurchase Notice in accordance with Section 14.02. 
 If more than one Note shall be surrendered for
conversion at one time by the same Holder, the Conversion Obligation with respect to such Notes shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted thereby) so
surrendered. 
 (c) A Note shall be deemed to have been converted immediately prior to the close of business on the date (the
“Conversion Date”) that the Holder has complied with the requirements set forth in subsection (b) above. Except as provided in Section 13.03(b) and in Section 13.07, the Company shall pay or deliver, as the case may
be, the consideration due in respect of the Conversion Obligation on the third Business Day immediately following the relevant Conversion Date, if the Company elects Physical Settlement, or on the third Business Day immediately following the last
Trading Day of the Observation Period, in the case of any other Settlement Method. If any shares of Common Stock are due to converting Holders, the Company shall issue or cause to be issued, and deliver to such Holder, or such Holder’s nominee
or nominees, certificates or a book-entry transfer through the Depositary for the full number of shares of Common Stock to which such Holder shall be entitled in satisfaction of the portion of the Company’s Conversion Obligation that consists
of shares of Common Stock, and, on or prior to such issuance, the Company shall give the Conversion Agent notice of the number of shares of Common Stock being so issued and the method by which the issuance shall take place. Any required funds due to
a converting Holder in connection with a Cash Settlement or Combination Settlement shall be delivered to the Paying Agent and such Holder, or such Holder’s nominee or nominees, in accordance with the same procedures that apply in connection
with the payment of the Fundamental Change Repurchase Price as set forth in Section 14.03. 

  
 54 

 (d) In case any Note shall be surrendered for partial conversion, the Company shall execute and
the Trustee shall authenticate and deliver to or upon the written order of the Holder of the Note so surrendered a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered
Note, without payment of any service charge by the converting Holder but, if required by the Company or Trustee, with payment by the converting Holder of a sum sufficient to cover any transfer tax or similar governmental charge required by law or
that may be imposed in connection therewith as a result of the name of the Holder of the new Notes issued upon such conversion being different from the name of the Holder of the old Notes surrendered for such conversion. 

(e) If a Holder submits a Note for conversion, the Company shall pay any documentary, stamp or similar issue or transfer tax due on the issue
of any shares of Common Stock upon conversion, unless the tax is due because the Holder requests such shares to be issued in a name other than the Holder’s name, in which case the Holder shall pay that tax. The Conversion Agent may refuse to
deliver the certificates representing the shares of Common Stock being issued in a name other than the Holder’s name until the Trustee receives a sum sufficient to pay any tax that is due by such Holder in accordance with the immediately
preceding sentence. 
 (f) Except as provided in Section 13.04, no adjustment shall be made for dividends on any shares issued upon the
conversion of any Note as provided in this Article 14. 
 (g) Upon the conversion of an interest in a Global Note, the Trustee, or the
Custodian at the direction of the Trustee, shall make a notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in writing of any conversion of Notes effected through any
Conversion Agent other than the Trustee. 
 (h) Upon conversion, a Holder shall not receive any separate cash payment for accrued and unpaid
interest, if any, except as set forth below. The Company’s settlement of the Conversion Obligation shall be deemed to satisfy in full its obligation to pay the principal amount of the Note and accrued and unpaid interest, if any, to, but not
including, the Conversion Date. As a result, accrued and unpaid interest, if any, to, but not including, the Conversion Date shall be deemed to be paid in full rather than cancelled, extinguished or forfeited. Upon a conversion of Notes into a
combination of cash and shares of Common Stock, accrued and unpaid interest will be deemed to be paid first out of the cash paid upon such conversion. Notwithstanding the foregoing, if Notes are converted after the close of business on a Regular
Record Date, Holders of such Notes as of the close of business on such Regular Record Date will receive the full amount of interest payable on such Notes on the corresponding Interest Payment Date notwithstanding the conversion. Notes surrendered
for conversion during the period from the close of business on any Regular Record Date to the open of business on the immediately following Interest Payment Date must be accompanied by funds equal to the amount of interest payable on the Notes so
converted; provided that no such payment shall be required (1) for conversions following the Regular Record Date immediately preceding the Maturity Date; (2) if the Company has specified a Fundamental Change Repurchase Date that is after a
Regular Record Date and on or prior to the Business Day immediately following the corresponding Interest Payment Date; or (3) to the extent of any Defaulted Amounts, if any Defaulted Amounts exist at the time of conversion with respect to such
Note. 

  
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 (i) The Person in whose name the certificate for any shares of Common Stock delivered upon
conversion is registered shall be treated as a stockholder of record as of the close of business on the relevant Conversion Date (if the Company elects to satisfy the related Conversion Obligation by Physical Settlement) or the last Trading Day of
the relevant Observation Period (if the Company elects (or is deemed to have elected) to satisfy the related Conversion Obligation by Combination Settlement), as the case may be, in each case solely for the purpose of receiving or participating in
any dividend, distribution, issuance, share split or combination, tender or exchange offer or any other event that would lead to a Conversion Rate adjustment as described in Section 13.04. Upon a conversion of Notes, such Person shall no longer
be a Holder of such Notes surrendered for conversion. 
 (j) The Company shall not issue any fractional share of Common Stock upon conversion
of the Notes and shall instead pay cash in lieu of any fractional share of Common Stock issuable upon conversion based on the Daily VWAP on the relevant Conversion Date (in the case of Physical Settlement) or based on the Daily VWAP on the last
Trading Day of the relevant Observation Period (in the case of Combination Settlement). For each Note surrendered for conversion, if the Company has elected (or is deemed to have elected) Combination Settlement, the full number of shares that shall
be issued upon conversion thereof shall be computed on the basis of the aggregate Daily Settlement Amounts for the applicable Observation Period and any fractional shares remaining after such computation shall be paid in cash. 

(k) Notwithstanding anything to the contrary herein, no Holder shall be entitled to receive shares of Common Stock upon conversion to the
extent (but only to the extent) that such receipt would cause such converting Holder to become, directly or indirectly, a “beneficial owner” (within the meaning of Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder) of more than 5.0% of the shares of Common Stock outstanding at such time (the “Limitation”). Any purported delivery of shares of Common Stock upon conversion of Notes shall be void and have no effect to the
extent (but only to the extent) that such delivery would result in the converting Holder becoming the beneficial owner of more than the Limitation. If any delivery of shares of Common Stock owed to a Holder upon conversion of Notes is not made, in
whole or in part, as a result of the Limitation, the Company’s obligation to make such delivery shall not be extinguished and the Company shall deliver such shares as promptly as practicable after any such converting Holder gives notice to the
Company that such delivery would not result in it being the beneficial owner of more than 5.0% of the shares of Common Stock outstanding at such time. The Limitation shall no longer apply following the effective date of any Fundamental Change. 

Section 13.03 Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole Fundamental Changes.
(a) If a Make-Whole Fundamental Change occurs and a Holder elects to convert its Notes in connection with such Make-Whole Fundamental Change, the Company shall, under the circumstances described below, increase the Conversion Rate for the Notes
so surrendered for conversion by a number of additional shares of Common Stock (the “Additional Shares”), as described below. A conversion of Notes shall be 

  
 56 

 
deemed for these purposes to be “in connection with” such Make-Whole Fundamental Change if the relevant Notice of Conversion is received by the Conversion Agent from, and including, the
Effective Date of the Make-Whole Fundamental Change up to, and including, the Business Day immediately prior to the related Fundamental Change Repurchase Date (or, in the case of a Make-Whole Fundamental Change that would have been a Fundamental
Change but for the proviso in clause (b) of the definition thereof, the 35th calendar day immediately following the Effective Date of such Make-Whole Fundamental Change). 

(b) Upon surrender of Notes for conversion in connection with a Make-Whole Fundamental Change pursuant to Section 13.01(b)(iii), the
Company shall, at its option, satisfy the related Conversion Obligation by Physical Settlement, Cash Settlement or Combination Settlement in accordance with Section 13.02; provided, however, that if, at the effective time of a
Make-Whole Fundamental Change described in clause (b) of the definition of Fundamental Change, the Reference Property is composed entirely of cash, for any conversion of Notes following the Effective Date of such Make-Whole Fundamental Change,
the Conversion Obligation per $1,000 principal amount of converted Notes shall be calculated based solely on the Stock Price for the transaction and shall be deemed to be an amount of cash per $1,000 principal amount of converted Notes equal to the
Conversion Rate (including any adjustment for Additional Shares), multiplied by such Stock Price. In such event, the Conversion Obligation shall be paid to Holders in cash on the third Business Day following the Conversion Date. The Company shall
notify the Holders of Notes of the Effective Date of any Make-Whole Fundamental Change and issue a press release announcing such Effective Date no later than five Business Days after such Effective Date. 

(c) The number of Additional Shares, if any, by which the Conversion Rate shall be increased shall be determined by reference to the table
below, based on the date on which the Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”) and the price (the “Stock Price”) paid (or deemed to be paid) per share of the Common Stock in
the Make-Whole Fundamental Change. If the holders of the Common Stock receive only cash in a Make-Whole Fundamental Change described in clause (b) of the definition of Fundamental Change, the Stock Price shall be the cash amount paid per share.
Otherwise, the Stock Price shall be the average of the Last Reported Sale Prices of the Common Stock over the five Trading Day period ending on, and including, the Trading Day immediately preceding the Effective Date of the Make-Whole Fundamental
Change. The Board of Directors shall make appropriate adjustments to the Stock Price, in its good faith determination, to account for any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment to the
Conversion Rate where the Ex-Dividend Date of the event occurs, during such five consecutive Trading Day period. 
 (d) The Stock Prices set
forth in the column headings of the table below shall be adjusted as of any date on which the Conversion Rate of the Notes is otherwise adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such adjustment,
multiplied by a fraction, the numerator of which is the Conversion Rate immediately prior to such adjustment giving rise to the Stock Price adjustment and the denominator of which is the Conversion Rate as so adjusted. The number of
Additional Shares set forth in the table below shall be adjusted in the same manner and at the same time as the Conversion Rate as set forth in Section 13.04. 

  
 57 

 (e) The following table sets forth the number of Additional Shares to be received per $1,000
principal amount of Notes pursuant to this Section 13.03 for each Stock Price and Effective Date set forth below. 
  

																																																	
	
Year
	 	$	14.27	  	 	$	14.75	  	 	$	15.50	  	 	$	16.00	  	 	$	16.41	  	 	$	17.00	  	 	$	18.00	  	 	$	19.00	  	 	$	20.00	  	 	$	21.00	  	 	$	22.00	  	 	$	24.00	  
	
1/25/2017
	 	 	9.1404	  	 	 	7.6441	  	 	 	5.6581	  	 	 	4.5488	  	 	 	3.7538	  	 	 	2.7753	  	 	 	1.5089	  	 	 	0.6705	  	 	 	0.2090	  	 	 	0.0567	  	 	 	0.0082	  	 	 	0.0000	  
	
2/1/2018
	 	 	9.1404	  	 	 	7.4942	  	 	 	5.4984	  	 	 	4.3863	  	 	 	3.5972	  	 	 	2.6359	  	 	 	1.4200	  	 	 	0.6442	  	 	 	0.2090	  	 	 	0.0567	  	 	 	0.0082	  	 	 	0.0000	  
	
2/1/2019
	 	 	9.1404	  	 	 	7.4942	  	 	 	5.4884	  	 	 	4.3550	  	 	 	3.5515	  	 	 	2.5771	  	 	 	1.3561	  	 	 	0.5916	  	 	 	0.1885	  	 	 	0.0538	  	 	 	0.0082	  	 	 	0.0000	  
	
2/1/2020
	 	 	9.1404	  	 	 	7.4942	  	 	 	5.4387	  	 	 	4.2638	  	 	 	3.4369	  	 	 	2.4447	  	 	 	1.2283	  	 	 	0.4958	  	 	 	0.1350	  	 	 	0.0357	  	 	 	0.0041	  	 	 	0.0000	  
	
2/1/2021
	 	 	9.1404	  	 	 	7.3959	  	 	 	5.0697	  	 	 	3.8219	  	 	 	2.9653	  	 	 	1.9741	  	 	 	0.8506	  	 	 	0.2768	  	 	 	0.0625	  	 	 	0.0124	  	 	 	0.0020	  	 	 	0.0000	  
	
2/1/2022
	 	 	9.1404	  	 	 	6.8600	  	 	 	3.5794	  	 	 	1.5631	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  	 	 	0.0000	  

 The exact Stock Prices and Effective Dates may not be set forth in the table above, in which case: 

(i) if the Stock Price is between two Stock Prices in the table above or the Effective Date is between two Effective Dates in
the table, the number of Additional Shares shall be determined by a straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Prices and the earlier and later Effective Dates, as applicable, based
on a 365-day year; 
 (ii) if the Stock Price is greater than $24.00 per share (subject to adjustment in the same manner as
the Stock Prices set forth in the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion Rate; and 

(iii) if the Stock Price is less than $14.27 per share (subject to adjustment in the same manner as the Stock Prices set forth
in the column headings of the table above pursuant to subsection (d) above), no Additional Shares shall be added to the Conversion Rate. 

Notwithstanding the foregoing, in no event shall the total number of shares of Common Stock issuable upon conversion exceed 70.0770 per
$1,000 principal amount of Notes, subject to adjustment in the same manner as the Conversion Rate pursuant to Section 13.04. 
 (f)
Nothing in this Section 13.03 shall prevent an adjustment to the Conversion Rate pursuant to Section 13.04 in respect of a Make-Whole Fundamental Change. 

Section 13.04 Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time to time by the Company if any of the
following events occurs, except that the Company shall not make any adjustments to the Conversion Rate if Holders of the Notes participate (other than in the case of a share split or share combination), at the same time and upon the same terms as
holders of the Common Stock and solely as a result of holding the Notes, in any of the transactions described in this Section 13.04, without having to convert their Notes, as if they held a number of shares of Common Stock equal to the
Conversion Rate, multiplied by the principal amount (expressed in thousands) of Notes held by such Holder. 

  
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 (a) If the Company exclusively issues shares of Common Stock as a dividend or distribution on
shares of its Common Stock, or if the Company effects a share split or share combination, the Conversion Rate shall be adjusted based on the following formula: 
  

							
		 	CR1    =    CR0    × 
   	 	OS1	  	
		 	 	OS0	  	

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date of such dividend or distribution, or immediately prior to the open of business on the effective date of such share split or share
combination, as applicable;
			
	CR1	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date or effective date;
			
	OS0	  	=	  	the number of shares of Common Stock outstanding immediately prior to the open of business on such Ex-Dividend Date or effective date; and
			
	OS1	  	=	  	the number of shares of Common Stock outstanding immediately after giving effect to such dividend, distribution, share split or share combination.

 Any adjustment made under this Section 13.04(a) shall become effective immediately after the open of business on the
Ex-Dividend Date for such dividend or distribution, or immediately after the open of business on the effective date for such share split or share combination, as applicable. If any dividend or distribution of the type described in this
Section 13.04(a) is declared but not so paid or made, the Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors determines not to pay such dividend or distribution, to the Conversion Rate that would
then be in effect if such dividend or distribution had not been declared. 
 (b) If the Company issues to all or substantially all holders of
its Common Stock any rights, options or warrants entitling them, for a period of not more than 45 calendar days after the announcement date of such issuance, to subscribe for or purchase shares of the Common Stock at a price per share that is less
than the average of the Last Reported Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such issuance, the Conversion Rate shall be
adjusted based on the following formula: 
  

							
		 	CR1    =    CR0    × 
   	 	OS0 + X	  	
		 	 	OS0 + Y	  	

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such issuance;
			
	CR1	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;
			
	OS0	  	=	  	the number of shares of Common Stock outstanding immediately prior to the open of business on such Ex-Dividend Date;
			
	X	  	=	  	the total number of shares of Common Stock issuable pursuant to such rights, options or warrants; and
			
	Y	  	=	  	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive
Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of the issuance of such rights, options or warrants.

  
 59 

 Any increase made under this Section 13.04(b) shall be made successively whenever any such rights, options
or warrants are issued and shall become effective immediately after the open of business on the Ex-Dividend Date for such issuance. To the extent that shares of the Common Stock are not delivered after the expiration of such rights, options or
warrants, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the number of shares of
Common Stock actually delivered. If such rights, options or warrants are not so issued, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect if such Ex-Dividend Date for such issuance had not occurred. 

For purposes of this Section 13.04(b), in determining whether any rights, options or warrants entitle the holders to subscribe for or
purchase shares of the Common Stock at less than such average of the Last Reported Sale Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of
such issuance, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights, options or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors. 
 (c) If the Company
distributes shares of its Capital Stock, evidences of its indebtedness, other assets or property of the Company or rights, options or warrants to acquire its Capital Stock or other securities, to all or substantially all holders of the Common Stock,
excluding (i) dividends, distributions or issuances as to which an adjustment was effected pursuant to Section 13.04(a) or Section 13.04(b), (ii) dividends or distributions paid exclusively in cash and (iii) Spin-Offs as to
which the provisions set forth below in this Section 13.04(c) shall apply (any of such shares of Capital Stock, evidences of indebtedness, other assets or property or rights, options or warrants to acquire Capital Stock or other securities of
the Company, the “Distributed Property”), then the Conversion Rate shall be adjusted based on the following formula: 
  

							
		 	CR1    =    CR0    × 
   	 	SP0	  	
		 	 	SP0 – FMV	  	

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;
			
	CR1	  	=	  	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;
			
	SP0	  	=	  	the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and
			
	FMV	  	=	  	the fair market value (as determined by the Board of Directors) of the Distributed Property with respect to each outstanding share of the Common Stock on the Ex-Dividend Date for such distribution.

  
 60 

 Any increase made under the portion of this Section 13.04(c) above shall become effective immediately after
the open of business on the Ex-Dividend Date for such distribution. If such distribution is not so paid or made, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect if such dividend or distribution had not been
declared. Notwithstanding the foregoing, if “FMV” (as defined above) is equal to or greater than “SP0” (as defined above), in lieu of the foregoing increase, each Holder of
a Note shall receive, in respect of each $1,000 principal amount thereof, at the same time and upon the same terms as holders of the Common Stock receive the Distributed Property, the amount of Distributed Property such Holder would have received if
such Holder owned a number of shares of Common Stock equal to the Conversion Rate in effect on the Ex-Dividend Date for the distribution. If the Board of Directors determines the “FMV” (as defined above) of any distribution for purposes of
this Section 13.04(c) by reference to the actual or when-issued trading market for any securities, it shall in doing so consider the prices in such market over the same period used in computing the Last Reported Sale Prices of the Common Stock
over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the Ex-Dividend Date for such distribution. 

With respect to an adjustment pursuant to this Section 13.04(c) where there has been a payment of a dividend or other distribution on the
Common Stock of shares of Capital Stock of any class or series, or similar equity interest, of or relating to a Subsidiary or other business unit of the Company, that are, or, when issued, will be, listed or admitted for trading on a U.S. national
securities exchange (a “Spin-Off”), the Conversion Rate shall be adjusted based on the following formula: 
  

							
		 	CR1    =    CR0    × 
   	 	FMV0 + MP0	  	
		 	 	MP0	  	

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the close of business on the last Trading Day of the Valuation Period;
			
	CR1	  	=	  	the Conversion Rate in effect immediately after the close of business on the last Trading Day of the Valuation Period;
			
	FMV0	  	=	  	the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of the Common Stock applicable to one share of the Common Stock (determined by reference to the definition of Last
Reported Sale Price as set forth in Section 1.01 as if references therein to Common Stock were to such Capital Stock or similar equity interest) over the first 10 consecutive Trading Day period after, and including, the Ex-Dividend Date of the
Spin-Off (the “Valuation Period”); and
			
	MP0	  	=	  	the average of the Last Reported Sale Prices of the Common Stock over the Valuation Period.

  
 61 

 The adjustment to the Conversion Rate under the preceding paragraph shall occur on the last Trading Day of the
Valuation Period; provided that in respect of any conversion during the Valuation Period, references in the portion of this Section 13.04(c) related to Spin-Offs to 10 Trading Days shall be deemed to be replaced with such lesser number
of Trading Days as have elapsed between the Ex-Dividend Date of such Spin-Off and the Conversion Date in determining the Conversion Rate. 

For purposes of this Section 13.04(c) (and subject in all respect to Section 13.11), rights, options or warrants distributed by the
Company to all holders of its Common Stock entitling them to subscribe for or purchase shares of the Company’s Capital Stock, including Common Stock (either initially or under certain circumstances), which rights, options or warrants, until the
occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of the Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of
the Common Stock, shall be deemed not to have been distributed for purposes of this Section 13.04(c) (and no adjustment to the Conversion Rate under this Section 13.04(c) will be required) until the occurrence of the earliest Trigger
Event, whereupon such rights, options or warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made under this Section 13.04(c). If any such right, option or
warrant, including any such existing rights, options or warrants distributed prior to the date of this Indenture, are subject to events, upon the occurrence of which such rights, options or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and Ex-Dividend Date with respect to new rights, options or warrants with such rights
(in which case the existing rights, options or warrants shall be deemed to terminate and expire on such date without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights, options
or warrants, or any Trigger Event or other event (of the type described in the immediately preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Rate
under this Section 13.04(c) was made, (1) in the case of any such rights, options or warrants that shall all have been redeemed or purchased without exercise by any holders thereof, upon such final redemption or purchase (x) the
Conversion Rate shall be readjusted as if such rights, options or warrants had not been issued and (y) the Conversion Rate shall then again be readjusted to give effect to such distribution, deemed distribution or Trigger Event, as the case may
be, as though it were a cash distribution, equal to the per share redemption or purchase price received by a holder or holders of Common Stock with respect to such rights, options or warrants (assuming such holder had retained such rights,

  
 62 

 
options or warrants), made to all holders of Common Stock as of the date of such redemption or purchase, and (2) in the case of such rights, options or warrants that shall have expired or
been terminated without exercise by any holders thereof, the Conversion Rate shall be readjusted as if such rights, options and warrants had not been issued. 

For purposes of Section 13.04(a), Section 13.04(b) and this Section 13.04(c), any dividend or distribution to which this
Section 13.04(c) is applicable that also includes one or both of: 
 (A) a dividend or distribution of shares of Common Stock to which
Section 13.04(a) is applicable (the “Clause A Distribution”); or 
 (B) a dividend or distribution of rights, options
or warrants to which Section 13.04(b) is applicable (the “Clause B Distribution”), 
 then (1) such dividend or distribution,
other than the Clause A Distribution and the Clause B Distribution, shall be deemed to be a dividend or distribution to which this Section 13.04(c) is applicable (the “Clause C Distribution”) and any Conversion Rate adjustment
required by this Section 13.04(c) with respect to such Clause C Distribution shall then be made, and (2) the Clause A Distribution and Clause B Distribution shall be deemed to immediately follow the Clause C Distribution and any Conversion
Rate adjustment required by Section 13.04(a) and Section 13.04(b) with respect thereto shall then be made, except that, if determined by the Company (I) the “Ex-Dividend Date” of the Clause A Distribution and the Clause B
Distribution shall be deemed to be the Ex-Dividend Date of the Clause C Distribution and (II) any shares of Common Stock included in the Clause A Distribution or Clause B Distribution shall be deemed not to be “outstanding immediately prior to
the open of business on such Ex-Dividend Date or effective date” within the meaning of Section 13.04(a) or “outstanding immediately prior to the open of business on such Ex-Dividend Date” within the meaning of Section 13.04(b).

 (d) If any cash dividend or distribution is made to all or substantially all holders of the Common Stock, other than a regular, quarterly
cash dividend that does not exceed the applicable Dividend Threshold for the calendar year during which the Ex-Dividend Date falls and which is subject to adjustment as described below, the conversion rate will be adjusted based on the following
formula: 
  

							
		 	CR1    =    CR0    × 
   	 	SP0 – T	  	
		 	 	SP0 – C	  	

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such dividend or distribution;
			
	CR1	  	=	  	the Conversion Rate in effect immediately after the open of business on the Ex-Dividend Date for such dividend or distribution;
			
	SP0	  	=	  	the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for such dividend or distribution;
			
	T	  	=	  	the applicable Dividend Threshold; provided that if the dividend or distribution is not a regular quarterly cash dividend, the applicable Dividend Threshold will be deemed to be zero; and
			
	C	  	=	  	the amount in cash per share the Company distributes to holders of its Common Stock.

  
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 The applicable Dividend Threshold shall be subject to adjustment in a manner inversely proportional to
adjustments to the Conversion Rate; provided that no adjustment shall be made to the applicable Dividend Threshold for any adjustment to the Conversion Rate pursuant to this Section 13.04(d). 

Any increase pursuant to this Section 13.04(d) shall become effective immediately after the open of business on the Ex-Dividend Date for
such dividend or distribution. If such dividend or distribution is not so paid, the Conversion Rate shall be decreased, effective as of the date the Board of Directors determines not to make or pay such dividend or distribution, to the Conversion
Rate that would then be in effect if such dividend or distribution had not been declared. Notwithstanding the foregoing, if “C” (as defined above) is equal to or greater than
“SP0” (as defined above), in lieu of the foregoing increase, each Holder of a Note shall receive, for each $1,000 principal amount of Notes, at the same time and upon the same terms
as holders of shares of the Common Stock, the amount of cash that such Holder would have received if such Holder owned a number of shares of Common Stock equal to the Conversion Rate on the Ex-Dividend Date for such cash dividend or distribution.

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

							
		 	CR1    =    CR0    × 
   	 	AC + (SP1 × OS1)	  	
		 	 	OS0 × SP1	  	

 where, 
  

					
	CR0	  	=	  	the Conversion Rate in effect immediately prior to the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires;
			
	CR1	  	=	  	the Conversion Rate in effect immediately after the close of business on the 10th Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires;
			
	AC	  	=	  	the aggregate value of all cash and any other consideration (as determined by the Board of Directors) paid or payable for shares of Common Stock purchased in such tender or exchange offer;
			
	OS0	  	=	  	the number of shares of Common Stock outstanding immediately prior to the date such tender or exchange offer expires (prior to giving effect to the purchase of all shares of Common Stock accepted for purchase or exchange in such
tender or exchange offer);
			
	OS1	  	=	  	the number of shares of Common Stock outstanding immediately after the date such tender or exchange offer expires (after giving effect to the purchase of all shares of Common Stock accepted for purchase or exchange in such tender or
exchange offer); and
			
	SP1	  	=	  	the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period commencing on, and including, the Trading Day next succeeding the date such tender or exchange offer expires.

 The adjustment to the Conversion Rate under this Section 13.04(e) shall occur at the close of business on the 10th
Trading Day immediately following, and including, the Trading Day next succeeding the date such tender or exchange offer expires; provided that in respect of any conversion within the 10 Trading Days immediately following, and including, the
expiration date of any tender or exchange offer, references in this Section 13.04(e) with respect to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed between the date that such tender or exchange
offer expires and the Conversion Date in determining the Conversion Rate. 

  
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 (f) Notwithstanding this Section 13.04 or any other provision of this Indenture or the
Notes, if a Conversion Rate adjustment becomes effective on any Ex-Dividend Date, and a Holder that has converted its Notes on or after such Ex-Dividend Date and on or prior to the related Record Date would be treated as the record holder of the
shares of Common Stock as of the related Conversion Date as described under Section 13.02(i) based on an adjusted Conversion Rate for such Ex-Dividend Date, then, notwithstanding the Conversion Rate adjustment provisions in this
Section 13.04, the Conversion Rate adjustment relating to such Ex-Dividend Date shall not be made for such converting Holder. Instead, such Holder shall be treated as if such Holder were the record owner of the shares of Common Stock on an
unadjusted basis and participate in the related dividend, distribution or other event giving rise to such adjustment. 
 (g) Except as stated
herein, the Company shall not adjust the Conversion Rate for the issuance of shares of its Common Stock or any securities convertible into or exchangeable for shares of its Common Stock or the right to purchase shares of its Common Stock or such
convertible or exchangeable securities. 
 (h) In addition to those adjustments required by clauses (a), (b), (c), (d) and (e) of
this Section 13.04, and to the extent permitted by applicable law and subject to the applicable rules of The New York Stock Exchange, the Company from time to time may increase the Conversion Rate by any amount for a period of at least 20
Business Days if the Board of Directors 

  
 65 

 
determines that such increase would be in the Company’s best interest. In addition, but subject to the same limitations set forth in the immediately preceding sentence, the Company may (but
is not required to) increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock in connection with a dividend or distribution of shares (or rights to acquire shares) or similar
event. Whenever the Conversion Rate is adjusted pursuant to either of the preceding two sentences, the Company shall mail to the Holder of each Note at its last address appearing on the Note Register a notice of the increase at least 15 days prior
to the date the adjusted Conversion Rate takes effect, and such notice shall state the adjusted Conversion Rate and the period during which it will be in effect. 

(i) Notwithstanding anything to the contrary in this Article 13, the Conversion Rate shall not be adjusted: 

(i) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of
dividends or interest payable on the Company’s securities and the investment of additional optional amounts in shares of Common Stock under any plan; 

(ii) upon the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or
future employee, director or consultant benefit plan or program of or assumed by the Company or any of the Company’s Subsidiaries; 

(iii) upon the issuance of any shares of the Common Stock pursuant to any option, warrant, right or exercisable, exchangeable
or convertible security not described in clause (ii) of this subsection and outstanding as of the date the Notes were first issued; 

(iv) solely for a change in the par value of the Common Stock or a change in the Company’s jurisdiction of incorporation;
or 
 (v) for accrued and unpaid interest, if any. 

(j) All calculations and other determinations under this Article 13 shall be made by the Company and shall be made to the nearest one-ten
thousandth (1/10,000) of a share. The Company shall not be required to make an adjustment in the Conversion Rate unless the adjustment would require a change of at least 1% in the Conversion Rate. However, the Company shall carry forward any
adjustments that are less than 1% of the Conversion Rate and make such carried forward adjustment, regardless of whether the aggregate adjustment is less than 1%, on the Conversion Date for any Notes and on each Trading Day of any Observation Period
for any converted Notes. 
 (k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the Trustee
(and the Conversion Agent if not the Trustee) an Officers’ Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring such adjustment. Unless and until a Responsible Officer of
the Trustee shall have received such Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume without inquiry that the last Conversion Rate of which it has knowledge is
still in effect. Promptly after delivery of such 

  
 66 

 
certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment becomes effective and
the Trustee, on the Company’s behalf, shall mail such notice of such adjustment of the Conversion Rate to each Holder at its last address appearing on the Note Register of this Indenture. Failure to deliver such notice shall not affect the
legality or validity of any such adjustment. 
 Section 13.05 Adjustments of Prices. Whenever any provision of this Indenture
requires the Company to calculate the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts over a span of multiple days (including an Observation Period and the period for determining the Stock
Price for purposes of a Make-Whole Fundamental Change), the Board of Directors shall make appropriate adjustments to each to account for any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment to the
Conversion Rate where the Ex-Dividend Date of the event occurs, at any time during the period when the Last Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts are to be calculated. 

Section 13.06 Shares to Be Fully Paid. The Company shall provide, free from preemptive rights, out of its authorized but unissued
shares, sufficient shares of Common Stock to provide for conversion of the Notes from time to time as such Notes are presented for conversion (assuming that at the time of computation of such number of shares, all such Notes would be converted by a
single Holder and that Physical Settlement is applicable). 
 Section 13.07 Effect of Recapitalizations, Reclassifications and
Changes of the Common Stock. 
 (a) In the case of: 

(i) any recapitalization, reclassification or change of the Common Stock (other than changes resulting from a subdivision or
combination or a change solely in par value), 
 (ii) any consolidation, merger or combination involving the Company, 

(iii) any sale, lease or other transfer to a third party of all or substantially all of the Company and the Company’s
Subsidiaries’ consolidated assets or 
 (iv) any statutory share exchange, 

in each case, as a result of which the Common Stock then outstanding would be converted into, or exchanged for, stock, other securities, other property or
assets (including cash or any combination thereof) (any such event, a “Merger Event”), then, at and after the effective time of such Merger Event, the right to convert each $1,000 principal amount of Notes shall be changed into a
right to convert such principal amount of Notes into the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) that a holder of a number of shares of Common Stock equal to the
Conversion Rate immediately prior to such Merger Event would have owned or been entitled to receive (the “Reference Property”, with each “unit of Reference Property” meaning the kind and amount of Reference

  
 67 

 
Property that a holder of one share of Common Stock is entitled to receive) upon such Merger Event and, prior to or at the effective time of such Merger Event, the Company or the successor or
purchasing Person, as the case may be, shall execute with the Trustee a supplemental indenture permitted under Section 10.01(f) providing for such change in the right to convert each $1,000 principal amount of Notes; provided, however,
that at and after the effective time of the Merger Event (A) the Company shall continue to have the right to determine the form of consideration to be paid or delivered, as the case may be, upon conversion of Notes in accordance with
Section 13.02 and (B) (I) any amount payable in cash upon conversion of the Notes in accordance with Section 13.02 shall continue to be payable in cash, (II) any shares of Common Stock that the Company would have been required to
deliver upon conversion of the Notes in accordance with Section 13.02 shall instead be deliverable in the amount and type of Reference Property that a holder of that number of shares of Common Stock would have been entitled to receive in such
Merger Event and (III) the Daily VWAP shall be calculated based on the value of a unit of Reference Property. 
 If the Merger Event causes
the Common Stock to be converted into, or exchanged for, the right to receive more than a single type of consideration (determined based in part upon any form of stockholder election), then (i) the Reference Property into which the Notes will
be convertible shall be deemed to be the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively make such an election, and (ii) the unit of Reference Property for purposes of the
immediately preceding paragraph shall refer to the consideration referred to in clause (i) attributable to one share of Common Stock. If the holders receive only cash in such Merger Event, then for all conversions that occur after the effective
date of such Merger Event (x) the consideration due upon conversion of each $1,000 principal amount of Notes shall be solely cash in an amount equal to the Conversion Rate in effect on the Conversion Date (as may be increased by any Additional
Shares pursuant to Section 13.03), multiplied by the price paid per share of Common Stock in such Merger Event and (y) the Company shall satisfy the Conversion Obligation by paying cash to converting Holders on the third Business Day
immediately following the relevant Conversion Date. The Company shall notify Holders, the Trustee and the Conversion Agent (if other than the Trustee) of such weighted average as soon as practicable after such determination is made. 

Such supplemental indenture described in the second immediately preceding paragraph shall provide for adjustments that shall be as nearly
equivalent as is possible to the adjustments provided for in this Article 13. If, in the case of any Merger Event, the Reference Property includes shares of stock, securities or other property or assets (including cash or any combination thereof) of
a Person other than the successor or purchasing corporation, as the case may be, in such Merger Event, then such supplemental indenture shall also be executed by such other Person and shall contain such additional provisions to protect the interests
of the Holders of the Notes as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including to the extent required by the Board of Directors and practicable the provisions providing for the purchase rights set
forth in Article 14. 
 (b) In the event the Company shall execute a supplemental indenture pursuant to subsection (a) of this
Section 13.07, the Company shall promptly file with the Trustee an Officers’ Certificate briefly stating the reasons therefor, the kind or amount of cash, securities or property or asset that will comprise the Reference Property after any
such Merger Event, any 

  
 68 

 
adjustment to be made with respect thereto and that all conditions precedent have been complied with, and shall promptly mail notice thereof to all Holders. The Company shall cause notice of the
execution of such supplemental indenture to be mailed to each Holder, at its address appearing on the Note Register provided for in this Indenture, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality
or validity of such supplemental indenture. 
 (c) The Company shall not become a party to any Merger Event unless its terms are consistent
with this Section 13.07 in all material respects. None of the foregoing provisions shall affect the right of a Holder of Notes to convert its Notes into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as
applicable, as set forth in Section 13.01 and Section 13.02 prior to the effective date of such Merger Event. 
 (d) The above
provisions of this Section shall similarly apply to successive Merger Events. 
 (e) In connection with any Merger Event, the applicable
Dividend Threshold shall be subject to adjustment as described in clause (i), clause (ii) or clause (iii) below, as the case may be. 

(i) In the case of a Merger Event in which the Reference Property (determined, as appropriate, pursuant to subsection
(a) above and excluding any dissenters’ appraisal rights) is composed entirely of shares of common stock (the “Merger Common Stock”), the applicable Dividend Threshold at and after the effective time of such Merger Event
will be equal to (x) the applicable Dividend Threshold immediately prior to the effective time of such Merger Event, divided by (y) the number of shares of Merger Common Stock that a holder of one share of Common Stock would receive
in such Merger Event (such quotient rounded down to nearest cent). 
 (ii) In the case of a Merger Event in which the
Reference Property (determined, as appropriate, pursuant to subsection (a) above and excluding any dissenters’ appraisal rights) is composed in part of shares of Merger Common Stock, the applicable Dividend Threshold at and after the
effective time of such Merger Event will be equal to (x) the applicable Dividend Threshold immediately prior to the effective time of such Merger Event, multiplied by (y) the Merger Valuation Percentage for such Merger Event (such
product rounded down to nearest cent). 
 (iii) For the avoidance of doubt, in the case of a Merger Event in which the
Reference Property (determined, as appropriate, pursuant to subsection (a) above and excluding any dissenters’ appraisal rights) is composed entirely of consideration other than shares of common stock, the applicable Dividend Threshold at
and after the effective time of such Merger Event will be equal to zero. 
 Section 13.08 Certain Covenants. (a) The
Company covenants that all shares of Common Stock issued upon conversion of Notes will be fully paid and non-assessable by the Company and free from all taxes, liens and charges (other than those created by the Holder) with respect to the issue
thereof. 

  
 69 

 (b) The Company covenants that, if any shares of Common Stock to be provided for the purpose of
conversion of Notes 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 will, to the extent then permitted by the rules
and interpretations of the Commission, secure such registration or approval, as the case may be. 
 (c) The Company further covenants that if
at any time the Common Stock shall be listed on any national securities exchange or automated quotation system the Company will list and keep listed, so long as the Common Stock shall be so listed on such exchange or automated quotation system, any
Common Stock issuable upon conversion of the Notes. 
 Section 13.09 Responsibility of Trustee. The Trustee (including in its
capacity as Conversion Agent) and any other Conversion Agent shall not at any time be under any duty or responsibility to any Holder to determine the Conversion Rate (or any adjustment thereto) or whether any facts exist that may require any
adjustment (including any increase) of the Conversion Rate, or with respect to the nature or extent or calculation of any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be
employed, in making the same. The Trustee (including in its capacity as Conversion Agent) and any other Conversion Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any
securities, property or cash that may at any time be issued or delivered upon the conversion of any Note; and the Trustee and any other Conversion Agent make no representations with respect thereto. Neither the Trustee nor any Conversion Agent shall
be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the surrender of any Note for the purpose of conversion or to comply with any
of the duties, responsibilities or covenants of the Company contained in this Article. Without limiting the generality of the foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of
any provisions contained in any supplemental indenture entered into pursuant to Section 13.07 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by Holders upon the conversion of their
Notes after any event referred to in such Section 13.07 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 7.01, may accept (without any independent investigation) as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, the Officers’ Certificate (which the Company shall be obligated to file with the Trustee prior to the execution of any such supplemental indenture) with respect
thereto. Neither the Trustee nor the Conversion Agent shall be responsible for determining whether any event contemplated by Section 13.01(b) has occurred that makes the Notes eligible for conversion or no longer eligible therefor until the
Company has delivered to the Trustee and the Conversion Agent the notices referred to in Section 13.01(b) with respect to the commencement or termination of such conversion rights, on which notices the Trustee and the Conversion Agent may
conclusively rely, and the Company agrees to deliver such notices to the Trustee and the Conversion Agent immediately after the occurrence of any such event or at such other times as shall be provided for in Section 13.01(b). 

  
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 Section 13.10 Notice to Holders Prior to Certain Actions. In case of any: 

(a) action by the Company or one of its Subsidiaries that would require an adjustment in the Conversion Rate pursuant to Section 13.04 or
Section 13.11; 
 (b) Merger Event; or 

(c) Voluntary or involuntary dissolution, liquidation or winding-up of the Company or any of its Subsidiaries; 

then, in each case (unless notice of such event is otherwise required pursuant to another provision of this Indenture), the Company shall cause to be filed
with the Trustee and the Conversion Agent (if other than the Trustee) and to be mailed to each Holder at its address appearing on the Note Register, as promptly as possible but in any event at least 20 days prior to the applicable date hereinafter
specified, a notice stating (i) the date on which a record is to be taken for the purpose of such action by the Company or one of its Subsidiaries or, if a record is not to be taken, the date as of which the holders of Common Stock of record
are to be determined for the purposes of such action by the Company or one of its Subsidiaries, or (ii) the date on which such Merger Event, dissolution, liquidation or winding-up is expected to become effective or occur, and the date as of
which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such Merger Event, dissolution, liquidation or winding-up. Failure to give such notice, or
any defect therein, shall not affect the legality or validity of such action by the Company or one of its Subsidiaries, Merger Event, dissolution, liquidation or winding-up. 

Section 13.11 Stockholder Rights Plans. To the extent that the Company has a rights plan in effect upon conversion of the Notes,
each share of Common Stock, if any, issued upon such conversion shall be entitled to receive the appropriate number of rights, if any, and the certificates representing the Common Stock issued upon such conversion shall bear such legends, if any, in
each case as may be provided by the terms of any such stockholder rights plan, as the same may be amended from time to time. If at the time of conversion, however, the rights have separated from the shares of Common Stock in accordance with the
provisions of the applicable stockholder rights plan so that the Holders would not be entitled to receive any rights in respect of Common Stock, if any, issuable upon conversion of the Notes, the Conversion Rate shall be adjusted at the time of
separation as if the Company distributed to all or substantially all holders of Common Stock Distributed Property as provided in Section 13.04(c), subject to readjustment in the event of the expiration, termination or redemption of such rights.

 Section 13.12 Limit on Issuance of Shares of Common Stock Upon Conversion. Notwithstanding anything to the contrary in this
Indenture, if an event occurs (including pursuant to Section 13.03 and subsections Section 13.04(b), Section 13.04(c), Section 13.04(d), Section 13.04(e) and Section 13.04(h) of Section 13.04) that would result in
an increase in the Conversion Rate by an amount in excess of limitations imposed by any shareholder approval rules or listing standards of any national or regional securities exchange (including the NASDAQ Global Select Market) that are applicable
to the Company, the Company will, at its option, either obtain stockholder approval of any issuance of Common Stock upon conversion of the Notes in excess such limitations or deliver cash in lieu of any shares of Common Stock otherwise 

  
 71 

 
deliverable upon conversions in excess of such limitations based on the Daily VWAP on each Trading Day of the relevant Observation Period in respect of which, in lieu of delivering shares of
Common Stock, the Company delivers cash pursuant to this Section 13.12. 
 ARTICLE 14 

REPURCHASE OF NOTES AT OPTION OF
HOLDERS 
 Section 14.01 Repurchase at Option of Holders Upon a Fundamental Change. (a) If a Fundamental
Change occurs at any time, each Holder shall have the right, at such Holder’s option, to require the Company to repurchase for cash all of such Holder’s Notes, or any portion thereof that is equal to $1,000 or an integral multiple of
$1,000, on the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not less than 20 calendar days or more than 35 calendar days following the date of the Fundamental Change Company Notice (with such
Fundamental Change Repurchase Date being subject to postponement by a number of days by which the Company’s Fundamental Change Repurchase Notice is delivered to Holders beyond the deadline set forth in Section 14.01(c)), at a repurchase
price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change Repurchase Price”), unless the Fundamental
Change Repurchase Date falls after a Regular Record Date but on or prior to the Interest Payment Date to which such Regular Record Date relates, in which case the Company shall instead pay the full amount of accrued and unpaid interest to Holders of
record as of such Regular Record Date, and the Fundamental Change Repurchase Price shall be equal to 100% of the principal amount of Notes to be repurchased pursuant to this Article 14. 

(b) Repurchases of Notes under this Section 14.01 shall be made, at the option of the Holder thereof, upon: 

(i) delivery to the Paying Agent by a Holder of a duly completed notice (the “Fundamental Change Repurchase
Notice”) in the form set forth in Attachment 2 to the Form of Note attached hereto as Exhibit A, if the Notes are Physical Notes, or in compliance with the Depositary’s procedures for surrendering interests in Global Notes, if the
Notes are Global Notes, in each case on or before the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date; and 

(ii) delivery of the Notes, if the Notes are Physical Notes, to the Paying Agent at any time after delivery of the Fundamental
Change Repurchase Notice (together with all necessary endorsements for transfer) at the Corporate Trust Office of the Paying Agent, or book-entry transfer of the Notes, if the Notes are Global Notes, in compliance with the procedures of the
Depositary, in each case such delivery being a condition to receipt by the Holder of the Fundamental Change Repurchase Price therefor. 

The Fundamental Change Repurchase Notice in respect of any Notes to be repurchased shall state: 

(i) in the case of Physical Notes, the certificate numbers of the Notes to be delivered for repurchase; 

  
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 (ii) the portion of the principal amount of Notes to be repurchased, which must
be $1,000 or an integral multiple thereof; and 
 (iii) that the Notes are to be repurchased by the Company pursuant to the
applicable provisions of the Notes and this Indenture; 
 provided, however, that if the Notes are Global Notes, the Fundamental Change Repurchase
Notice must comply with appropriate Depositary procedures. 
 Notwithstanding anything herein to the contrary, any Holder delivering to the
Paying Agent a Fundamental Change Repurchase Notice contemplated by this Section 14.01 shall have the right to withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 14.02. 

The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Repurchase Notice or written notice of
withdrawal thereof 
 (c) On or before the 20th calendar day after (i) the date that the Company knew or reasonably should have known
that the Fundamental Change occurred, in the case of a Fundamental Change described under clause (a) of the definition thereof, or (ii) the date the Fundamental Change occurred, in the case of any other Fundamental Change, the Company
shall provide to all Holders of Notes and the Trustee and the Paying Agent (in the case of a Paying Agent other than the Trustee) a notice (the “Fundamental Change Company Notice”) of the occurrence of the effective date of the
Fundamental Change and of the repurchase right at the option of the Holders arising as a result thereof. Such notice shall be by first class mail or, in the case of Global Notes, in accordance with the applicable procedures of the Depositary.
Simultaneously with providing such notice, the Company shall publish a notice containing the information set forth in the Fundamental Change Company Notice in a newspaper of general circulation in The City of New York or publish such information on
the Company’s website or through such other public medium as the Company may use at that time. Each Fundamental Change Company Notice shall specify: 

(i) the events causing the Fundamental Change; 

(ii) the date of the Fundamental Change; 

(iii) the last date on which a Holder may exercise the repurchase right pursuant to this Article 14; 

(iv) the Fundamental Change Repurchase Price; 

(v) the Fundamental Change Repurchase Date; 

(vi) the name and address of the Paying Agent and the Conversion Agent, if applicable; 

  
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 (vii) if applicable, the Conversion Rate and any adjustments to the Conversion
Rate; 
 (viii) if applicable, that the Notes with respect to which a Fundamental Change Repurchase Notice has been delivered
by a Holder may be converted only if the Holder withdraws the Fundamental Change Repurchase Notice in accordance with the terms of this Indenture; 

(ix) the procedures that Holders must follow to require the Company to repurchase their Notes. 

No failure of the Company to give the foregoing notices and no defect therein shall limit the Holders’ repurchase rights or affect the
validity of the proceedings for the repurchase of the Notes pursuant to this Section 14.01. 
 At the Company’s request, the
Trustee shall give such notice in the Company’s name and at the Company’s expense; provided, however, that, in all cases, the text of such Company Notice shall be prepared by the Company. 

(d) Notwithstanding the foregoing, no Notes may be repurchased by the Company on any date at the option of the Holders upon a Fundamental
Change if the principal amount of the Notes has been accelerated, and such acceleration has not been rescinded, on or prior to such date (except in the case of an acceleration resulting from a Default by the Company in the payment of the Fundamental
Change Repurchase Price with respect to such Notes). The Paying Agent will promptly return to the respective Holders thereof any Physical Notes held by it during the acceleration of the Notes (except in the case of an acceleration resulting from a
Default by the Company in the payment of the Fundamental Change Repurchase Price with respect to such Notes), or any instructions for book-entry transfer of the Notes in compliance with the procedures of the Depositary shall be deemed to have been
cancelled, and, upon such return or cancellation, as the case may be, the Fundamental Change Repurchase Notice with respect thereto shall be deemed to have been withdrawn. 

Section 14.02 Withdrawal of Fundamental Change Repurchase Notice. (a) A Fundamental Change Repurchase Notice may be withdrawn
(in whole or in part) by means of a written notice of withdrawal delivered to the Corporate Trust Office of the Paying Agent in accordance with this Section 14.02 at any time prior to the close of business on the Business Day immediately
preceding the Fundamental Change Repurchase Date, specifying: 
 (i) the principal amount of the Notes with respect to which
such notice of withdrawal is being submitted, 
 (ii) if Physical Notes have been issued, the certificate number of the Note
in respect of which such notice of withdrawal is being submitted, and 
 (iii) the principal amount, if any, of such Note
that remains subject to the original Fundamental Change Repurchase Notice, which portion must be in principal amounts of $1,000 or an integral multiple of $1,000; 

provided, however, that if the Notes are Global Notes, the notice must comply with appropriate procedures of the Depositary. 

  
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 Section 14.03 Deposit of Fundamental Change Repurchase Price. (a) The Company,
or its designee, will deposit with the Trustee (or other Paying Agent appointed by the Company, or if the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 4.04) on or prior to 10:00 a.m.,
New York City time, on the Fundamental Change Repurchase Date an amount of money sufficient to repurchase all of the Notes to be repurchased at the appropriate Fundamental Change Repurchase Price. If any such designee does not deposit an amount of
money sufficient to repurchase all of such Notes by the deadline set forth in the immediately preceding sentence and the Company does not otherwise deposit such an amount by such deadline, such failure by the designee shall be treated for all
purposes of this Indenture as failure by the Company to make such deposit. In addition, failure by the Company to designate a designee to make the deposit required by the second immediately preceding sentence shall not relieve the Company of its
obligation to so deposit such an amount of money. Subject to extension if necessary to comply with the provisions of the Investment Company Act, payment for Notes surrendered for repurchase (and not withdrawn prior to the close of business on the
Business Day immediately preceding the Fundamental Change Repurchase Date) will be made on the later of (i) the Fundamental Change Repurchase Date with respect to such Note (provided the Holder has satisfied the conditions in
Section 14.01) and (ii) the time of book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent appointed by the Company) by the Holder thereof in the manner required by Section 14.01 by mailing checks for
the amount payable to the Holders of such Notes entitled thereto as they shall appear in the Note Register; provided, however, that payments to the Depositary shall be made by wire transfer of immediately available funds to the account of the
Depositary or its nominee. The Trustee shall, promptly after a Fundamental Change Repurchase Date, return to the Company any funds in excess of the Fundamental Change Repurchase Price of the Notes, or portions thereof, that the Company is obligated
to purchase on the applicable Fundamental Change Repurchase Date. 
 (b) If by 10:00 a.m. New York City time, on the Fundamental Change
Repurchase Date, the Trustee (or other Paying Agent appointed by the Company) holds money sufficient to pay the Fundamental Change Repurchase Price of all the Notes or portions thereof for which Holders have surrendered and not withdrawn Fundamental
Change Repurchase Notices on such Fundamental Change Repurchase Date, then (i) such Notes will cease to be outstanding, (ii) interest will cease to accrue on such Notes (whether or not book-entry transfer of the Notes has been made or the
Notes have been delivered to the Trustee or Paying Agent) and (iii) all other rights of the Holders of such Notes will terminate (other than the right to receive the Fundamental Change Repurchase Price upon delivery or transfer of the Notes).

 (c) Upon surrender of a Note that is to be repurchased in part pursuant to Section 14.01, the Company shall execute and the Trustee
shall authenticate and deliver to the Holder a new Note in an authorized denomination equal in principal amount to the unrepurchased portion of the Note surrendered. 

  
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 Section 14.04 Covenant to Comply with Applicable Laws Upon Repurchase of Notes. In
connection with any repurchase offer pursuant to a Fundamental Change Repurchase Notice, the Company will, if required: 
 (a) comply with
the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer rules under the Exchange Act that may then be applicable; 
 (b) file a
Schedule TO or any successor or similar schedule; 
 (c) otherwise comply with all federal and state securities laws in connection with any
offer by the Company to repurchase the Notes; 
 in each case, so as to permit the rights and obligations under this Article 14 to be exercised in the time
and in the manner specified in this Article 14. 
 ARTICLE 15 

NO REDEMPTION 

Section 15.01 No Redemption. The Notes shall not be redeemable by the Company prior to the Maturity Date, and no sinking fund is
provided for the Notes. 
 ARTICLE 16 

MISCELLANEOUS PROVISIONS 

Section 16.01 Provisions Binding on Company’s Successors. All the covenants, stipulations, promises and agreements of the
Company contained in this Indenture shall bind its successors and assigns whether so expressed or not. 
 Section 16.02 Official
Acts by Successor Corporation. Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or Officer of the Company shall and may be done and performed with like force and
effect by the like board, committee or officer of any corporation or other entity that shall at the time be the lawful sole successor of the Company. 

Section 16.03 Addresses for Notices, Etc. Any notice or demand that by any provision of this Indenture is required or permitted to
be given or served by the Trustee or by the Holders on the Company shall be deemed to have been sufficiently given or made, for all purposes if given or served by being deposited postage prepaid by registered or certified mail in a post office
letter box addressed (until another address is filed by the Company with the Trustee) to Hercules Capital, Inc., 400 Hamilton Avenue, Suite 310, Palo Alto, CA 94301, Attention: Melanie Grace, General Counsel. Any notice, direction, request or demand
hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited postage prepaid by registered or certified mail in a post office letter box addressed to the Corporate
Trust Office. 
 The Trustee, by notice to the Company, may designate additional or different addresses for subsequent notices or
communications. 
 Any notice or communication mailed to a Holder shall be mailed to it by first class mail, postage prepaid, at its address
as it appears on the Note Register and shall be sufficiently given to it if so mailed within the time prescribed. 

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

In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice to
Holders by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 

Section 16.04 Governing Law. THIS INDENTURE AND EACH NOTE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS
INDENTURE AND EACH NOTE, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION).

 Section 16.05 Evidence of Compliance with Conditions Precedent; Certificates and Opinions of Counsel to Trustee. Upon any
application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee an Officers’ Certificate stating that such action is
permitted by the terms of this Indenture. 
 Each Officers’ Certificate provided for, by or on behalf of the Company in this Indenture
and delivered to the Trustee with respect to compliance with this Indenture (other than the Officers’ Certificates provided for in Section 4.09) shall include (a) a statement that the Person making such certificate is familiar with
the requested action and this Indenture; (b) a brief statement as to the nature and scope of the examination or investigation upon which the statement contained in such certificate is based; (c) a statement that, in the judgment of such
person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed judgment as to whether or not such action is permitted by this Indenture; and (d) a statement as to whether or not, in the
judgment of such Person, such action is permitted by this Indenture. 
 Notwithstanding anything to the contrary in this Section 16.05,
if any provision in this Indenture specifically provides that the Trustee shall or may receive an Opinion of Counsel in connection with any action to be taken by the Trustee or the Company hereunder, the Trustee shall be entitled to, or entitled to
request, such Opinion of Counsel. 
 Section 16.06 Legal Holidays. In any case where any Interest Payment Date, Fundamental
Change Repurchase Date, Conversion Date or Maturity Date is not a Business Day, then any action to be taken on such date need not be taken on such date, but may be taken on the next succeeding Business Day with the same force and effect as if taken
on such date, and no interest shall accrue in respect of the delay. 
 Section 16.07 No Security Interest Created. Nothing in
this Indenture or in the Notes, expressed or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any jurisdiction. 

  
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 Section 16.08 Benefits of Indenture. Nothing in this Indenture or in the Notes,
expressed or implied, shall give to any Person, other than the parties hereto, any Paying Agent, any Conversion Agent, any authenticating agent, any Note Registrar and their successors hereunder or the Holders, any benefit or any legal or equitable
right, remedy or claim under this Indenture. 
 Section 16.09 Table of Contents, Headings, Etc. The table of contents and the
titles and headings of the articles and sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof. 

Section 16.10 Authenticating Agent. The Trustee may appoint an authenticating agent that shall be authorized to act on its behalf
and subject to its direction in the authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of Notes hereunder, including under Section 2.04, Section 2.05, Section 2.06,
Section 2.07, Section 10.04 and Section 14.03 as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and those Sections to authenticate and deliver Notes. For all
purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a certificate of authentication executed on behalf of the
Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as trustee
hereunder pursuant to Section 7.08. 
 Any corporation or other entity into which any authenticating agent may be merged or converted
or with which it may be consolidated, or any corporation or other entity resulting from any merger, consolidation or conversion to which any authenticating agent shall be a party, or any corporation or other entity succeeding to the corporate trust
business of any authenticating agent, shall be the successor of the authenticating agent hereunder, if such successor corporation or other entity is otherwise eligible under this Section, without the execution or filing of any paper or any further
act on the part of the parties hereto or the authenticating agent or such successor corporation or other entity. 
 Any authenticating agent
may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating agent by giving written notice of termination to such authenticating agent and
to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any authenticating agent shall cease to be eligible under this Section, the Trustee may appoint a successor authenticating agent (which
may be the Trustee), shall give written notice of such appointment to the Company and shall mail notice of such appointment to all Holders as the names and addresses of such Holders appear on the Note Register. 

The Company agrees to pay to the authenticating agent from time to time reasonable compensation for its services although the Company may
terminate the authenticating agent, if it determines such agent’s fees to be unreasonable. 

  
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 The provisions of Section 7.02, Section 7.03, Section 7.04, Section 8.03 and
this Section 16.10 shall be applicable to any authenticating agent. 
 If an authenticating agent is appointed pursuant to this
Section, the Notes may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of authentication in the following form: 

                          
              , 
 as Authenticating Agent, certifies that this is one of the Notes

 described in the within-named Indenture. 

By:                         
                    
 Authorized Officer 

Section 16.11 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. 
 Section 16.12 Severability. In the
event any provision of this Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality or enforceability of the remaining provisions shall not in any way be affected or
impaired. 
 Section 16.13 Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

Section 16.14 Force Majeure. In no event shall the Trustee, in each of its capacities, be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts that
are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

Section 16.15 Calculations. Except as otherwise provided in Section 13.01(b)(i), the Company shall be responsible for making
all calculations called for under the Notes. These calculations include, but are not limited to, determinations of the Last Reported Sale Prices of the Common Stock, accrued interest payable on the Notes and the Conversion Rate of the Notes. The
Company shall make all these calculations in good faith and, absent manifest error, the Company’s calculations shall be final and binding on Holders of Notes. The Company shall provide a schedule of its calculations to each of the Trustee and
the Conversion Agent, and each of the Trustee and Conversion Agent is entitled to rely conclusively upon the accuracy of the Company’s calculations without independent verification. The Trustee will forward the Company’s calculations to
any Holder of Notes upon the request of that Holder at the sole cost and expense of the Company. 

  
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 Section 16.16 No Adverse Interpretation of Other Agreements. Other than the Notes and
any supplemental indenture hereto, this Indenture may not be used to interpret any other indenture, loan or debt agreement of the Company or any of its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may not be used
to interpret this Indenture. 
 [Remainder of page intentionally left blank] 

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

					
	HERCULES CAPITAL, INC.
		
	By:	 	/s/ Melanie Grace
		 	Name:	 	Melanie Grace
		 	Title:	 	General Counsel, Chief Compliance Officer and Secretary

  

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	/s/ Karen R. Beard
		 	 Name: Karen R. Beard
 Title: Vice
President

 [Signature Page to Indenture] 

 EXHIBIT A 

[FORM OF FACE OF NOTE] 

[INCLUDE FOLLOWING LEGEND IF A GLOBAL NOTE] 

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

[THIS SECURITY AND THE COMMON STOCK, IF ANY, ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR ANY STATE SECURITIES LAWS OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, AND NOT SUBJECT TO, REGISTRATION. 
 BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN,
THE ACQUIRER: 
 (1) REPRESENTS THAT IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER”
(WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND 

  
 A-1 

 (2) AGREES FOR THE BENEFIT OF HERCULES CAPITAL, INC. (THE “COMPANY”)
THAT IT WILL NOT OFFER, SELL, ASSIGN, TRANSFER, PLEDGE, ENCUMBER OR OTHERWISE DISPOSE OF THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF (X) ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF OR SUCH
SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THERETO, AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW, EXCEPT: 

(A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, OR 

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

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

(D) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 
 PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(D) ABOVE,
THE COMPANY, THE TRUSTEE AND THE TRANSFER AGENT, IN THE CASE OF ANY COMMON STOCK ISSUED UPON CONVERSION OF THE NOTES, RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN
ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT.] 
 NO AFFILIATE (AS DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF THE COMPANY OR PERSON THAT HAS BEEN AN AFFILIATE (AS
DEFINED IN RULE 144 UNDER THE SECURITIES ACT) OF THE COMPANY DURING THE THREE IMMEDIATELY PRECEDING MONTHS MAY RESELL THIS NOTE OR A BENEFICIAL INTEREST HEREIN. 

  
 A-2 

 HERCULES CAPITAL, INC. 

4.375% Convertible Senior Note due 2022 
  

			
	No. [●]	  	$[                            ]

 CUSIP No.: [●]* 
 ISIN No.:
[●]* 
 Hercules Capital, Inc., a corporation duly organized and validly existing under the laws of the State of Maryland (the
“Company,” which term includes any successor corporation or other entity under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to [CEDE & CO.], or registered assigns, the principal sum
as set forth in the “Schedule of Exchanges of Notes” attached hereto, which amount, taken together with the principal amount of all other outstanding Notes, shall not, unless permitted by the Indenture, exceed $200,000,000 in aggregate at
any time (or up to $230,000,000 if the Initial Purchaser exercises its option to purchase additional Notes as set forth in the Purchase Agreement), in accordance, so long as this Note is a Global Note, with the rules and procedures of the
Depositary, on February 1, 2022, and interest thereon as set forth below. 
 This Note shall bear interest at the rate of
4.375% per year from January 25, 2017, or from the most recent date to which interest had been paid or provided for. Interest is payable semi-annually in arrears on each February 1 and August 1, commencing on August 1, 2017,
to Holders of record at the close of business on the preceding January 15 and July 15 (whether or not such day is a Business Day), respectively. Additional Interest will be payable as set forth in Section 4.06(d) and Section 6.03
of the within-mentioned Indenture, and any reference to interest on, or in respect of, any Note therein shall be deemed to include Additional Interest if, in such context, Additional Interest is, was or would be payable pursuant to any of such
Section 4.06(d) or Section 6.03 and any express mention of the payment of Additional Interest in any provision therein shall not be construed as excluding Additional Interest in those provisions thereof where such express mention is not
made. 
 Any Defaulted Amounts shall accrue interest per annum at the rate or rates, if any, specified in this Note, subject to the
enforceability thereof under applicable law, from, and including, the relevant payment date to, but excluding, the date on which such Defaulted Amounts shall have been paid by the Company, at its election, in accordance with Section 2.03(c) of
the Indenture. 
 The Company shall pay the principal of and interest on this Note, so long as such Note is a Global Note, in immediately
available funds to the Depositary or its nominee, as the case may be, as the registered Holder of such Note. As provided in and subject to the provisions of the Indenture, the Company shall pay the principal of any Notes (other than Notes that are
Global Notes) at the office or agency designated by the Company for that purpose. The Company has initially designated the Trustee as its Paying Agent and Note Registrar in respect of the Notes and its agency in New York, New York as a place where
Notes may be presented for payment or for registration of transfer. 

  
 A-3 

 Reference is made to the further provisions of this Note set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Note the right to convert this Note into cash, shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, on the terms and subject to the limitations
set forth in the Indenture. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 

*[Subject to terms and conditions of the Indenture, at such time as the Company notifies the Trustee to remove the restrictive legend pursuant
to Section 2.05(c) of the Indenture, the CUSIP number for this Note shall be deemed to be CUSIP No. [●] and ISIN No. [●].] 

This Note, and any claim, controversy or dispute arising under or related to this Note, shall be construed in accordance with and governed
by the laws of the State of New York (without regard to the conflicts of law provisions thereof that would cause the application of the laws of another jurisdiction). 

In the case of any conflict between this Note and the Indenture, the provisions of the Indenture shall control and govern. 

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually
signed by the Trustee or a duly authorized authenticating agent under the Indenture. 
 [Remainder of page
intentionally left blank] 

  
 A-4 

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

 

			
	HERCULES CAPITAL, INC.
		
	By	 	 
	 Name:
 Title:

 Dated: 
  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION U.S. BANK NATIONAL ASSOCIATION as Trustee, certifies that this is one of the Notes described in the within-named Indenture.
		
	 By
	 	 
		 	Authorized Officer

  
 A-5 

 [FORM OF REVERSE OF NOTE] 

HERCULES CAPITAL, INC. 

4.375% Convertible Senior Note due 2022 

This Note is one of a duly authorized issue of Notes of the Company, designated as its 4.375% Convertible Senior Notes due 2022 (the
“Notes”), limited to the aggregate principal amount of $200,000,000 (or up to $230,000,000 if the Initial Purchaser exercises its option to purchase additional Notes as set forth in the Purchase Agreement) all issued or to be issued under
and pursuant to an Indenture dated as of January 25, 2017 (the “Indenture”), between the Company and U.S. Bank National Association (the “Trustee”), to which Indenture and all indentures supplemental thereto reference is
hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Notes. Additional Notes may be issued in an unlimited aggregate principal amount,
subject to certain conditions specified in the Indenture. 
 In case an Event of Default, as defined in the Indenture, shall have occurred
and be continuing, the principal of, and interest on, all Notes may be declared, by either the Trustee or Holders of at least 25% in aggregate principal amount of Notes then outstanding, and upon said declaration shall become, due and payable, in
the manner, with the effect and subject to the conditions and certain exceptions set forth in the Indenture. 
 Subject to the terms and
conditions of the Indenture, the Company will make all payments in respect of the Fundamental Change Repurchase Price and the principal amount on the Maturity Date, as the case may be, to the Holder who surrenders a Note to a Paying Agent to collect
such payments in respect of the Note. The Company will pay cash amounts in money of the United States that at the time of payment is legal tender for payment of public and private debts. 

The Indenture contains provisions permitting the Company and the Trustee in certain circumstances, without the consent of the Holders of the
Notes, and in certain other circumstances, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
modifying the terms of the Indenture and the Notes as described therein. It is also provided in the Indenture that, subject to certain exceptions, the Holders of a majority in aggregate principal amount of the Notes at the time outstanding may on
behalf of the Holders of all of the Notes waive any past Default or Event of Default under the Indenture and its consequences. 
 No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay or deliver, as the case may be, the principal of, the Fundamental
Change Repurchase Price, if applicable, of, accrued and unpaid interest on and amounts due upon conversion of this Note at the place, at the respective times, at the rate and in the lawful money or other consideration herein prescribed. 

  
 A-6 

 The Notes are issuable in registered form without coupons in denominations of $1,000 principal
amount and integral multiples thereof. At the office or agency of the Company referred to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, Notes may be exchanged for a like aggregate principal amount of
Notes of other authorized denominations, without payment of any service charge but, if required by the Company or Trustee, with payment of a sum sufficient to cover any transfer or similar tax that may be imposed in connection therewith as a result
of the name of the Holder of the new Notes issued upon such exchange of Notes being different from the name of the Holder of the old Notes surrendered for such exchange. 

The Notes are not subject to redemption through the operation of any sinking fund or otherwise. 

Upon the occurrence of a Fundamental Change, the Holder has the right, at such Holder’s option, to require the Company to repurchase for
cash all of such Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change Repurchase Date at a price equal to the Fundamental Change Repurchase Price. 

Subject to the provisions of the Indenture, the Holder hereof has the right, at its option, during certain periods and upon the occurrence of
certain conditions specified in the Indenture, prior to the close of business on the Scheduled Trading Day immediately preceding the Maturity Date, to convert any Notes or portion thereof that is $1,000 or an integral multiple thereof, into cash,
shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, at the Conversion Rate specified in the Indenture, as adjusted from time to time as provided in the Indenture. 

Terms used in this Note and defined in the Indenture are used herein as therein defined. 

  
 A-7 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in full
according to applicable laws or regulations: 
 TEN COM = as tenants in common 

UNIF GIFT MIN ACT = Uniform Gifts to Minors Act 
 CUST = Custodian

 TEN ENT = as tenants by the entireties 
 JT TEN = joint
tenants with right of survivorship and not as tenants in common 
 Additional abbreviations may also be used though not in the above list.

  
 A-8 

 SCHEDULE A 

SCHEDULE OF EXCHANGES OF NOTES 

HERCULES CAPITAL, INC. 

4.375% Convertible Senior Note due 2022 

The initial principal amount of this Global Note is              DOLLARS
($[            ]). The following increases or decreases in this Global Note have been made: 
  

									
	 Date of

Exchange
	 	 Amount of

decrease in
 Principal

Amount of this
 Global Note
	 	 Amount of

increase in
 Principal

Amount of this
 Global Note
	 	 Principal

Amount of this
 Global Note

following such
 decrease or

increase
	 	 Signature of

authorized
 signatory of

Trustee

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

					
	  
	 	  
	 	  
	 	  
	 	  

  
 A-9 

 ATTACHMENT 1 

[FORM OF NOTICE OF CONVERSION] 
 To:
[                    ] 
 The
undersigned registered owner of this Note hereby exercises the option to convert this Note, or the portion hereof (that is $1,000 principal amount or an integral multiple thereof) below designated, into cash, shares of Common Stock or a combination
of cash and shares of Common Stock, as applicable, in accordance with the terms of the Indenture referred to in this Note, and directs that any cash payable and any shares of Common Stock issuable and deliverable upon such conversion, together with
any cash for any fractional share, and any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated below. If any shares of Common Stock or any
portion of this Note not converted are to be issued in the name of a Person other than the undersigned, the undersigned will pay all transfer or similar taxes in accordance with Section 13.02(d) of the Indenture. Any amount required to be paid
to the undersigned on account of interest accompanies this Note. 
  

					
	Dated:	  	  
	  	  

			
		  		  	  

		  		  	Signature(s)

  

	
	  

	Signature Guarantee
	
	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 issued, or Notes are to be delivered, other than to and in the name of the registered holder.
	
	Fill in for registration of shares if to be issued, and Notes if to be delivered, other than to and in the name of the registered holder:
	
	  

	(Name)

  
 1 

	
	  

	(Street Address)
	
	  

	 (City, State and Zip Code)
 Please print name
and address

  

	
	Principal amount to be converted (if less than all): $        ,000
	
	NOTICE: The above signature(s) of the Holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.
	
	 
	Social Security or Other Taxpayer Identification Number

  
 2 

 ATTACHMENT 2 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE] 

To: [                    ] 

The undersigned registered owner of this Note hereby acknowledges receipt of a notice from Hercules Capital, Inc. (the “Company”) as
to the occurrence of a Fundamental Change with respect to the Company and specifying the Fundamental Change Repurchase Date and requests and instructs the Company to pay to the registered holder hereof in accordance with the applicable provisions of
the Indenture referred to in this Note (1) the entire principal amount of this Note, or the portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated, and (2) if such Fundamental Change Repurchase
Date does not fall during the period after a Regular Record Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest, if any, thereon to, but excluding, such Fundamental Change Repurchase Date. 

In the case of Physical Notes, the certificate numbers of the Notes to be repurchased are as set forth below. 

 

			
	Dated:	 	 

  

	
	 
	Signature(s)
	
	 
	Social Security or Other Taxpayer Identification Number
	
	 Principal amount to be repaid (if less than all):

$        ,000

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

  
 1 

 ATTACHMENT 3 

[FORM OF ASSIGNMENT AND TRANSFER] 
 For
value received
                                        
hereby sell(s), assign(s) and 
 transfer(s) unto
                                        
(Please insert social security or Taxpayer 
 Identification Number of assignee) the within Note, and hereby irrevocably constitutes and appoints attorney
to transfer the said Note on the books of the Company, with full power of substitution in the premises. 
 In connection with any transfer of the within
Note occurring prior to the Resale Restriction Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that such Note is being transferred: 
  

	☐	To Hercules Capital, Inc. or a subsidiary thereof; or 

  

	☐	Pursuant to a registration statement that has become or been declared effective under the Securities Act of 1933, as amended; or 

  

	☐	To a qualified institutional buyer pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or 

  

	☐	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended, or any other available exemption from the registration requirements of the Securities Act of 1933, as amended. 

  
 1 

			
	Dated:	 	 
	
	 
	
	 
	Signature(s)
	
	 
	Signature Guarantee
	
	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 Notes are to be delivered, other than to and in the name of the registered holder.

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

  
 2Exhibit

Exhibit 10.1

CONFIDENTIAL        Execution Version

PURCHASE AND SALE AGREEMENT
by and among
Derwood Limited 
as Buyer,
NorthStar Realty Finance Limited Partnership, 
as Seller
NorthStar Healthcare JV Holdings, LLC,
NorthStar TK Healthcare REIT, LLC,
NorthStar TK Healthcare Operating Company, LLC,
NorthStar Healthcare JV, LLC,
and
NRFC Healthcare Holding Company, LLC

Dated as of November 4, 2016

TABLE OF CONTENTS
	
				
	 
	 
	Page

	 
	 
	 

	Article I DEFINITIONS
	1
	

	1.1
	Defined Terms
	1
	

	1.2
	Terms Defined Elsewhere
	13
	

	1.3
	Interpretation
	15
	

	Article II PURCHASE AND SALE OF INTERESTS; PURCHASE PRICE
	16
	

	2.1
	Sale and Purchase of Purchased Interests
	16
	

	2.2
	Purchase Price
	16
	

	2.3
	Escrow Arrangements
	17
	

	2.4
	Adjustments to Equity Value
	17
	

	2.5
	Governing Documents
	21
	

	2.6
	Tax Treatment
	21
	

	2.7
	Allocation of Purchase Price
	22
	

	2.8
	Withholding
	22
	

	2.9
	Capital Advance
	22
	

	Article III REPRESENTATIONS AND WARRANTIES OF THE SELLER
	23
	

	3.1
	Title to the Purchased Interests
	23
	

	3.2
	Organization
	23
	

	3.3
	Authorization of Agreement
	23
	

	3.4
	Conflicts; Consents of Third Parties
	24
	

	3.5
	Legal Proceedings
	24
	

	3.6
	Tax Status
	25
	

	3.7
	Limitations of Representations and Warranties
	25
	

	Article IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	25
	

	4.1
	Organization
	25
	

	4.2
	Authorization of Agreement
	26
	

	4.3
	Conflicts; Consents of Third Parties
	27
	

	4.4
	Capitalization; Subsidiaries
	27
	

	4.5
	Financial Statements
	29
	

	4.6
	Undisclosed Liabilities
	30
	

	4.7
	Absence of Certain Changes
	30
	

	4.8
	Compliance with Laws
	30
	

	4.9
	Legal Proceedings
	31
	

	4.10
	Properties
	32
	

	4.11
	Tax Matters
	34
	

	4.12
	No Employees; No Benefit Plans
	36
	

	4.13
	No Condemnation
	36
	

	4.14
	Intellectual Property
	36
	

	4.15
	Environmental Matters
	37
	

i

	
				
	4.16
	Material Contracts
	37
	

	4.17
	Insurance
	40
	

	4.18
	Affiliated Transactions
	40
	

	4.19
	Financial Advisor
	41
	

	4.20
	Disclaimer of any Representations Regarding Estimates and Projections
	41
	

	4.21
	Limitations of Representations and Warranties
	41
	

	Article V REPRESENTATIONS AND WARRANTIES OF BUYER
	42
	

	5.1
	Organization
	42
	

	5.2
	Authorization of Agreement
	42
	

	5.3
	Conflicts; Consents of Third Parties
	42
	

	5.4
	Legal Proceeding
	43
	

	5.5
	Financial Advisor
	43
	

	5.6
	Purchase for Investment
	43
	

	5.7
	Financial Ability
	43
	

	5.8
	Sophisticated Party
	43
	

	5.9
	Compliance with Laws
	43
	

	5.10
	Investigation; Limitation on Representations and Warranties; Disclaimer of Other Representations and Warranties
	43
	

	5.11
	No Other Representations or Warranties
	44
	

	Article VI COVENANTS AND AGREEMENTS
	44
	

	6.1
	Conduct of the Healthcare Portfolio Pending the Closing
	44
	

	6.2
	Efforts; Consents and Approvals
	45
	

	6.3
	Pre-Closing Restructuring
	47
	

	6.4
	Financing
	47
	

	6.5
	Public Announcements
	48
	

	6.6
	Conveyance Taxes
	48
	

	6.7
	Expenses
	48
	

	6.8
	Further Assurances
	49
	

	6.9
	Managers
	49
	

	6.10
	Casualty and Condemnation
	49
	

	6.11
	Advice of Changes
	49
	

	ARTICLE VII CLOSING
	50
	

	7.1
	Closing
	50
	

	7.2
	Conditions to Each Party’s Obligations to Effect the Closing
	50
	

	7.3
	Conditions to Obligations of the Seller Group
	50
	

	7.4
	Conditions to Obligations of Buyer
	51
	

	7.5
	Closing Deliveries
	52
	

	Article VIII INDEMNIFICATION
	53
	

	8.1
	Survival
	53
	

	8.2
	Obligation of Seller to Indemnify
	53
	

	8.3
	Obligation of Buyer to Indemnify
	54
	

	8.4
	Certain Limitations
	54
	

ii

	
				
	8.5
	Indemnification Procedure
	55
	

	8.6
	Measure of Indemnification
	56
	

	8.7
	Exclusivity of Indemnity
	57
	

	8.8
	Tax Treatment of Indemnity Payments
	58
	

	Article IX TERMINATION OF AGREEMENT
	58
	

	9.1
	Termination
	58
	

	9.2
	Effect of Termination
	59
	

	Article X MISCELLANEOUS
	63
	

	10.1
	Dispute Resolution; Venue
	63
	

	10.2
	Notices
	64
	

	10.3
	Entire Agreement
	65
	

	10.4
	Waivers and Amendments
	66
	

	10.5
	Governing Law
	66
	

	10.6
	Binding Effect; Assignment
	66
	

	10.7
	Severability of Provisions
	66
	

	10.8
	Disclosure Schedule
	67
	

	10.9
	Counterparts
	67
	

	10.10
	No Personal Liability
	67
	

	10.11
	No Third Party Beneficiaries
	67
	

Exhibits
	
		
	Exhibit A
	Pre-Closing Restructuring

	Exhibit B
	Sample Adjustment Calculation and Adjustment Principles

	Exhibit C
	Form of Newco LLC Agreement

	Exhibit D
	Form of JV LLC Agreement

	Exhibit E-1
	Form of Buyer Officer’s Certificate

	Exhibit E-2
	Form of Seller Officer’s Certificate

	Exhibit E-3
	Form of Company Officer’s Certificate

	Exhibit F
	Asset Management Services

	Exhibit G
	Form of Capital Contribution Advance Guarantee

	Exhibit H
	Allocated Purchase Price (JV Interest)

	Exhibit I
	Form of JV Letter Agreement

iii

PURCHASE AND SALE AGREEMENT
This PURCHASE AND SALE AGREEMENT, dated as of November 4, 2016 (this “Agreement”), by and among Derwood Limited, a Hong Kong limited company (“Buyer”), NorthStar Realty Finance Limited Partnership, a Delaware limited partnership (“Seller” or “NRF OP”), NorthStar Healthcare JV Holdings, LLC, a Delaware limited liability company (“NRF OP SPV”), NorthStar TK Healthcare REIT, LLC, a Delaware limited liability company (“JV”), NorthStar TK Healthcare Operating Company, LLC, a Delaware limited liability company (“JV OpCo”), NorthStar Healthcare JV, LLC, a Delaware limited liability Company (“Newco”), and NRFC Healthcare Holding Company, LLC, a Delaware limited liability company (the “Company” and, together with Seller, NRF OP SPV, JV, JV OpCo and Newco, the “Seller Group”).  Buyer and the members of the Seller Group are each sometimes referred to herein as a “Party” and collectively as the “Parties”.
WHEREAS, as of the date hereof, the Company, directly or indirectly through its ownership interests in its Subsidiaries (each a “Company Subsidiary” and collectively, the “Company Subsidiaries”), owns interests in 457 real property healthcare assets (each, together with any Eligible Property acquired after the date hereof, a “Property” and collectively, the “Healthcare Portfolio”);
WHEREAS, upon completion of the Pre-Closing Restructuring, Seller (or its Affiliates), directly or indirectly through JV, will own one hundred percent (100%) of the ownership interests in Newco, which in turn will own one hundred percent (100%) of the Company; and
WHEREAS, Seller has agreed to sell (or cause to be sold) to Buyer, and Buyer has agreed to purchase from Seller, no more than 47% of the common limited liability company interests of the JV issued and outstanding (the “JV HoldCo Interests”) representing indirect ownership of the Buyer Ownership Percentage of the Company Interests (as defined below) (the “Purchased Interests”), upon the terms and subject to the conditions of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements entered into herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, do agree as follows:

ARTICLE I 
 
DEFINITIONS

1.1    Defined Terms.  For all purposes of this Agreement, the following terms shall have the respective meanings set forth in this Section 1.1 (such definitions to be equally applicable to both the singular and plural forms of the terms herein defined):
“Adjustment Amount” means, with respect to any Property, (a) in the case of a sale consummated prior to Closing, excluding Condemnations and any Option Sale, but including the MOB Sale, an amount equal to (i) the Allocated Purchase Price (JV Interest) for such Property minus (ii) the amount of any Company Indebtedness related to such Property that 

1

is repaid, (b) in the case of a purchase consummated prior to the Closing, an amount equal to the sum of (i) the product of (A) the purchase price paid by the Company or a Company Subsidiary for such Property prior to Closing (including any deposit) multiplied by (B) the Company’s direct or indirect percentage ownership interest in such Property, plus (ii) the out-of-pocket fees and expenses incurred or payable by the Seller Group or its Affiliates in connection with such purchase minus (iii) the amount of any Company Indebtedness related to such Property that is incurred, or (c) in the case of a Condemnation, the net proceeds directly or indirectly received by the Company for such Property prior to Closing, after the repayment of any Company Indebtedness related to such Property and deducting out-of-pocket fees and expenses incurred or payable, directly or indirectly, by the Company in connection with such Condemnation.
“Affiliate” means, with respect to any Person, any other Person controlling, controlled by or under common control with such Person.  The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract or otherwise.  For the avoidance of doubt, NRF and NSAM are Affiliates of Seller.
“Allocated Purchase Price (JV Interest)” means, with respect to a Property, the amount set forth opposite such Property in the column titled “Allocated Purchase Price (JV Interest)” on Exhibit H, provided, that, in the case of Properties located in the United Kingdom, the amount for each such Property shall be re-valued to be the product of (a) the amount in United Kingdom Pound Sterling utilized to determine the U.S. Dollar amount for such Property as set forth on Exhibit H on the date hereof multiplied by (b) the Closing Date Exchange Rate.
“Asset Management Services” means the asset management services described on Exhibit F.
“Balance Sheet Date” means March 31, 2016.
“Business Day” means a day other than Saturday, Sunday or any day on which banks located in New York, New York, Beijing, PRC or Hong Kong are authorized or obligated by Law to close.
“Buyer Ownership Percentage” means a percentage determined by dividing (x) the Purchase Price by (y) the Total Equity Value as determined at Closing pursuant to Section 2.4, as such percentage may be adjusted pursuant to the applicable Side Letter.
“Casualty” means damage or destruction by acts of terrorism, sabotage, war (whether or not declared), rioting, civil disturbance or armed hostility, fire, earthquakes, tornados, hurricanes, windstorms or other weather conditions or natural calamities or other force majeure events or casualty.
“CIRC” means the Insurance Regulatory Commission of the PRC or its competent local counterparts.

2

“Claims” means suits, actions, proceedings, investigations, demands, claims, liabilities, fines, penalties, liens, judgments, losses, injuries, damages, settlement expenses or costs of whatever kind or nature, whether direct or indirect, known or unknown, contingent or otherwise (including any action or proceeding brought or threatened or ordered by any Governmental Entity), including attorneys’ and experts’ fees and expenses, and investigation and remediation costs.
“Closing Account” means the account or accounts designated in writing by Seller at least two (2) Business Days prior to the Closing Date.
“Closing Date” means the date (such date, the “Initial Closing Date”) that is the later of (a) January 16, 2017 and (b) thirty (30) days following the satisfaction or waiver of the conditions to the Closing set forth in Sections 7.2, 7.3 and 7.4 (other than those conditions which, by their terms, are to be satisfied or waived at the Closing, but subject to the satisfaction or waiver of such conditions), provided, that, (i) the Initial Closing Date may be extended by Seller to the date (such date, the “Extended Closing Date”) that is fifteen (15) days following the Initial Closing Date upon written notice to Buyer if such notice is delivered no later than three (3) Business Days following the satisfaction of the conditions to the Closing set forth in Sections 7.2, 7.3 and 7.4 (other than those conditions which, by their terms, are to be satisfied or waived at the Closing, but subject to the satisfaction or waiver of such conditions), and (ii) the Extended Closing Date may be extended by Seller to the date that is fifteen (15) days following the Extended Closing Date upon written notice to Buyer if such notice is delivered no later than three (3) Business Days following the Initial Closing Date; provided, further, that in the event the “Closing Date” as determined in accordance with this clause (b) were to fall on January 23, 2017 through February 3, 2017, the “Closing Date” shall be such date as mutually agreed in good faith amongst the Parties but, in the event the Parties are unable to agree to a Closing Date during such period, the “Closing Date” shall be February 6, 2017; or such earlier or later date as may be mutually agreed upon in writing by Seller and Buyer.
“Closing Date Exchange Rate” means the rate of exchange of British pounds into U.S. dollars reported in The Wall Street Journal on the Business Day immediately prior to the date on which Seller delivers the Estimated Adjustment Statement to Buyer.
“Closing Date Indebtedness” means the amount of Company Indebtedness as of the Closing Date as finally determined in accordance with Section 2.4.
“Closing Date Lender Reserves” means the amount of Lender Reserves as of the Closing Date as finally determined in accordance with Section 2.4.
“Closing Date Working Capital” means the amount of Working Capital as of the Closing Date as finally determined in accordance with Section 2.4.
“Code” means the U.S. Internal Revenue Code of 1986.
“Colony Merger Agreement” means the Agreement and Plans of Merger, dated June 2, 2016, by and among Seller, NSAM, Colony Capital, Inc., New Polaris Inc., New Sirius Inc., NorthStar Realty Finance Limited Partnership, Sirius Merger Sub-T, LLC and New Sirius Merger Sub, LLC, as may be amended, supplemented or modified from time to time.

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“Company Indebtedness” means the Indebtedness of the Company and the Company Subsidiaries, as determined on a consolidated basis and in accordance with the Sample Adjustment Calculation and Adjustment Principles; provided, that, Company Indebtedness shall not include any Indebtedness taken into account in the determination of clause (b) of the Adjustment Amount.
“Company Indebtedness Estimate Amount” means Three Billion, Five Hundred Thirty-Six Million, One Hundred Thirty-One Thousand, Three Hundred Eight Dollars ($3,536,131,308), provided, that, in the case of Company Indebtedness in United Kingdom Pound Sterling and related to Properties located in the United Kingdom, the amount of such Company Indebtedness shall be re-valued, and the Company Indebtedness Estimate Amount shall be increased or decreased, as and if applicable, by an amount equal to the product of (a) the amount in United Kingdom Pound Sterling utilized in determining the U.S. Dollar amount for the Company Indebtedness Estimate Amount on the date hereof multiplied by (b) the Closing Date Exchange Rate.
“Company Material Adverse Effect” means any change, event, condition or effect (each, an “Effect”) that, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on the assets, properties, liabilities, financial condition, business or results of operations of the Company and Company Subsidiaries, taken as a whole; provided, however, that no Effects resulting or arising from the following shall be deemed to constitute a Company Material Adverse Effect or shall be taken into account when determining whether a Company Material Adverse Effect has occurred or would reasonably be expected to occur:  (i) any changes in general United States or global economic conditions, (ii) conditions (or changes therein) in any industry in which the Company or its Subsidiaries operate, (iii) general economic, political and/or regulatory conditions (or changes therein), including any changes effecting financial, credit or capital market conditions, including changes in interest or exchange rates, (iv) any change in GAAP or interpretation thereof, (v) any adoption, implementation, promulgation, repeal, modification, amendment, reinterpretation, or other change in any applicable Law of or by any Governmental Entity, (vi) any actions taken, or the failure to take any action, as required by the terms of this Agreement or at the request or with the consent of Buyer and any Effect directly attributable to the announcement of this Agreement and the Transactions, (vii) any failure by the Company to meet any internal or published projections, estimates or expectations of the Company’s revenue, earnings or other financial performance or results of operations for any period (it being understood that the facts or occurrences giving rise or contributing to such failure that are not otherwise excluded from the definition of a “Company Material Adverse Effect” may be taken into account), (viii) Effects arising out of changes in geopolitical conditions, acts of terrorism or sabotage, war (whether or not declared), the commencement, continuation or escalation of a war or acts of armed hostility, earthquakes, tornados, hurricanes or other weather conditions or natural calamities or other force majeure events, including any material worsening of such conditions threatened or existing as of the date of this Agreement, (ix) any breach, violation or non-performance by Buyer or any of its Affiliates of any of their obligations under this Agreement, (x) any bankruptcy, insolvency or reorganization of any tenant under any Company Lease or the commencement of any bankruptcy, insolvency or reorganization proceeding with respect to any tenant under any Company Lease, (xi) any Effect relating to Seller or its Affiliates other than the Company and the Company Subsidiaries, including any change in the market price or trading volume of any 

4

securities or Indebtedness of Seller or any of its Affiliates (it being understood that the facts or occurrences giving rise or contributing to such change or any consequence resulting from such change, to the extent attributable to the Company and the Company Subsidiaries and not otherwise excluded from the definition of “Company Material Adverse Effect”, may be taken into account) and (xii) changes in reimbursement rates, policies and procedures of Third-Party Payors or Government Entities, provided, that, if any Effect described in clauses (i), (ii), (iii), (iv), (v), (viii) and (xii) has had a materially disproportionate adverse impact on the Company relative to other companies of comparable size to the Company operating in the industry or industries in which the Company operates, then the incremental impact of such event shall be taken into account for the purpose of determining whether a Company Material Adverse Effect has occurred.
“Data Tape” means the Microsoft Excel file labeled “NRF HC Datatape by Asset Type_03.31.16” made available by Seller to Buyer prior to the date hereof.
“Debt Financing” means an amount of debt financing in Dollars sufficient for Buyer to pay the Purchase Price and all other amounts to be paid by Buyer at Closing in connection with the consummation of the Transactions.
“Debt Financing Sources” means the lender parties to the Loan Agreements each of whom shall be an internationally recognized banking institution reasonably acceptable to Seller.
“Deposit Amount” means Ten Million Dollars ($10,000,000).
“Deposit Release Instruction” means, subject to the provisos in Section 9.2(b) and Section 9.2(c), the joint written instructions of Buyer and Seller instructing the Escrow Agent to distribute the Deposit Amount or a portion thereof to Seller or Buyer, as applicable.
“Determination Time” means 11:59 p.m. Eastern Time on the day immediately preceding the Closing Date; provided, that, if as a result of a breach by the Seller of any of its covenants contained in Section 6.1(d) of this Agreement, Indebtedness, Working Capital or Lender Reserves shall have changed between the Determination Time and the time immediately preceding the effective time of the consummation of the Transactions, then any such changes shall be included in the calculation of Closing Date Indebtedness, Closing Date Working Capital and/or Closing Date Lender Reserves (as the case may be).
“Eligible Property” means any healthcare real estate assets acquired by the Company or a Company Subsidiary during the period between the date hereof and the Closing with the consent of Buyer as required pursuant to Section 6.1(b).
“Environmental Laws” means any and all applicable Laws existing on the date hereof which (i) regulate or relate to the protection or clean-up of the environment; the use, treatment, storage, transportation, handling, disposal or release of, or exposure to, Hazardous Substances; the preservation or protection of waterways, groundwater, drinking water, air, wildlife, plants or other natural resources; or the protection of the health and safety of employees; or (ii) impose liability or responsibility with respect to any of the foregoing, 

5

including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), or any other Law of similar effect.
“Equitable Principles” means (a) bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting creditors’ rights and remedies generally and (b) general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).
“ERISA” means the Employee Retirement Income Security Act of 1974.
“Escrow Agent” means a U.S., Hong Kong or Singapore branch of an internationally recognized banking institution, as mutually agreed upon by Seller and Buyer.
“Escrow Agreement” means an escrow agreement by and among Buyer, Seller and the Escrow Agent in form and substance reasonably acceptable to Buyer and Seller pursuant to which the Escrow Agent shall agree to hold the Deposit Amount in Dollars until such time as the Deposit Amount, Termination Fee or Expense Reimbursement Amount becomes payable to Buyer or Seller pursuant to the terms hereof.
“Estimated Total Equity Value” means One Billion, Eight Hundred Twenty-Eight Million, One Hundred Eighty-Eight Thousand, Two Hundred Fifty-Seven Dollars ($1,828,188,257).
“Expense Reimbursement Amount” means Five Million Dollars ($5,000,000).
“Fundamental Representations” means the representations and warranties set forth in Sections 3.1 (Title to Purchased Interests), 3.2 (Organization), 3.3 (Authorization of Agreement), 3.4(a)(i) (Conflicts), 4.1 (Organization), 4.2 (Authorization of Agreement), 4.3(a)(i) (Conflicts), 4.4 (Capitalization; Subsidiaries), 4.11(j) (Tax Matters), 4.19 (Financial Advisor), 5.1 (Organization), 5.2 (Authorization of Agreement) and 5.5 (Financial Advisor).
“Fraud” means a claim for actual and intentional fraud based on any representation contained in Article III, IV or V of this Agreement and requires (a) a material false statement or that a material omitted fact be necessary in order to make such representation, in the light of the circumstances under which it was made, not misleading, (b) that the party making such  representation, through its “Knowledge” individuals, had actual knowledge of the inaccuracy of such material statement or that such material omitted fact was necessary in order to make such representation, in the light of the circumstances under which it was made, not misleading, (c) the party making such representation had the intent to deceive the other party or to induce the other party to enter into this Agreement and (d) the other party acted in reliance on such representation and suffered injury as a result of such reliance. For the avoidance of doubt, “Fraud” does not include any claim for equitable fraud, promissory fraud, unfair dealings fraud, or any torts based on negligence or recklessness.
“Government Sponsored Health Care Program” means any plan or program providing health care benefits, whether directly through insurance or otherwise, that is funded directly, in whole or part, by a Governmental Entity, whether pursuant to one or more contracts 

6

with the applicable Governmental Entity or otherwise, including Medicare, state Medicaid programs, the TRICARE program, Medicare Advantage and managed Medicaid.
“Governmental Entity” means any government or governmental, judicial, administrative or regulatory body thereof, or political subdivision thereof, whether domestic, foreign, federal, national, state, provincial, local or supranational, or any agency, commission, instrumentality or authority thereof, any self-regulatory or quasi-governmental authority or any court, tribunal or arbitrator (public or private).
“Hazardous Substances” means any toxic, carcinogenic, reactive, corrosive, ignitable or flammable chemical or chemical compound, or hazardous or toxic substance, material or waste, or pollutant or contaminant, whether solid, liquid or gas, in each case, that is listed, or is subject to regulation, control or remediation under, any Environmental Laws, including petroleum and petroleum byproducts, asbestos, polychlorinated biphenyls and toxic mold.
“Health Care Laws” means (i) any and all applicable federal, state and local Laws of any applicable Governmental Entity concerning health care or insurance fraud and abuse, including, as applicable, the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b) and 41 U.S.C. §§ 51-58), the civil False Claims Act (31 U.S.C. § 3729 et seq.), the Exclusion Laws (42 U.S.C.§§ 1320a-7 and 1320a-7a), the Program Fraud Civil Remedies Act (31 U.S.C. §§ 3801-3812), the Civil Monetary Penalties Law (42 U.S.C. §§ 1320a and 1320a-7b, and the regulations promulgated pursuant to such statutes; (ii) the federal Food, Drug & Cosmetic Act (21 U.S.C. §§ 301 et seq.), the Federal Health Care Fraud Law (18 U.S.C. § 1347) and all federal and state Laws, as applicable, concerning pharmacology and dispensing medicines or controlled substances, and the regulations promulgated thereunder; (iii) any and all applicable federal, state and local Laws concerning privacy and data security for patient information, including the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. §§ 1320d-1329d-8), as amended, and all federal and state laws concerning medical record retention, privacy, security, patient confidentiality and informed consent, and the regulations promulgated thereunder; (iv) Medicare (Title XVIII of the Social Security Act), as amended and the regulations promulgated thereunder, including, specifically, conditions of participation for skilled nursing facilities; (v) Medicaid (Title XIX of the Social Security Act) and the regulations promulgated thereunder; (vi) the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Pub. L. No. 108-173) and the regulations promulgated thereunder; (vii) the Patient Protection and Affordable Care Act (Pub. L. 111-148) as amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. 111-152); (viii) quality, safety and accreditation standards and requirements of all applicable state Laws or regulatory bodies; (ix) federal, state and local Laws regulating the ownership, operation or licensure of a health care facility or business, or assets used in connection therewith, including hospitals, skilled nursing facilities, assisted living facilities, independent living facilities and memory care facilities; (x) federal, state and local Laws relating to the provision of management or administrative services in connection with the practice of a health care profession, employment of professionals by non-professionals, professional fee splitting, patient brokering, patient or program charges, claims submission, record retention, certificates of need, certificates of operations and authority; (xi) federal and state Laws with respect to financial relationships between referral sources and referral recipients, including, but not limited to the federal Stark Law (42 U.S.C. 1395nn et. seq.) and the 

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regulations promulgated thereunder; (xii) life safety codes; and (xiii) the Laws of any foreign jurisdiction in which the Company or its Subsidiaries operate that are analogous to those Laws identified in items (i) through (xii) above.
“Income Taxes” means all Taxes based upon, measured by, or calculated with respect to (a) gross or net income or gross or net receipts or profits, including any capital gains and minimum Taxes; and (b) multiple bases, including corporate franchise, doing business or occupation Taxes, if one or more of the bases upon which such Tax may be based upon, measured by, or calculated with respect to, is described in clause (a) above.
“Indebtedness” means, as to any Person, (a) all obligations of such Person for borrowed money (including reimbursement and all other obligations with respect to any surety bonds, letters of credit, bankers’ acceptances, in each case, only to the extent drawn, and the Series B Cumulative Redeemable Preferred Interests of NorthStar Realty Healthcare, LLC, whether or not matured), (b) all obligations of such Person evidenced by notes, bonds, debentures or similar instruments, (c) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable and accrued commercial or trade liabilities arising in the ordinary course of business, (d) all interest rate and currency swaps, caps, collars and similar agreements or hedging devices under which payments are obligated to be made by such Person, whether periodically or upon the happening of a contingency (valued at the termination value thereof), (e) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person, (f) all obligations of such Person in respect of leases of (or other agreements conveying the right to use) property or other assets which GAAP requires to be classified and accounted for as capital leases as of the date of this Agreement, (g) all indebtedness secured by any Lien on any property or asset owned or held by such Person, and (h) all guarantees by such Person of the Indebtedness of any other Person; provided, however, that Indebtedness shall not include intercompany obligations between the Company and any Company Subsidiary.
“Intellectual Property” means all intellectual property, including trademarks, service marks, trade names, any goodwill associated with the foregoing, Internet domain names, patents, copyrights, trade secrets, and rights in inventions and know-how, and all registrations and applications for any of the foregoing.
“IRS” means the Internal Revenue Service.
“JV Letter Agreement” means the letter agreement to be entered into by and between Buyer and NRF OP SPV on the Closing Date, substantially in the form of Exhibit I hereto.
“Knowledge” means the actual knowledge, after making reasonable inquiry, of (a) Jonathan A. Langer, Robert Gatenio, Daniel D. Raffe, Ronald J. Jeanneault and Ann B. Harrington, in the case of the Seller Group or any member thereof or (b) Zuyu Tan, Xiaochen Li, Tim Zhang and Lin Xu, in the case of Buyer.

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“Law” means all foreign, federal, national, supranational, state, provincial and local laws, statutes, codes, ordinances, rules, regulations, resolutions, Orders and rules of law (including common law).
“Lender Reserves” means amounts held in escrow or a segregated account pursuant to the requirements of Indebtedness for borrowed money of the Company or the Company Subsidiaries, as determined on a consolidated basis and in accordance with the Sample Adjustment Calculation and Adjustment Principles.
“Letter of Credit” means a letter of credit issued by the Debt Financing Sources in the amount of Ten Million Dollars ($10,000,000), in form and substance reasonably acceptable to Buyer and Seller, pursuant to which Seller shall be permitted to draw on in the event the Deposit Amount, Termination Fee or Expense Reimbursement Amount becomes payable to Seller pursuant to the terms hereof.
“Licensing Survey” means any federal Statement of Deficiencies and Plan of Correction and any similar investigation, survey, inspection and plan of correction undertaken or issued by a Governmental Entity and related to the ownership or operation of a Property.
“Lien” means any lien, pledge, mortgage, hypothecation, deed of trust, security interest, claim, lease, license, charge, option, right of first refusal, easement, adverse claim, reversion, servitude, transfer restriction, voting restriction, encumbrance or other similar or dissimilar prohibition, restriction or limitation, including pursuant to any Order.
“Loan Agreements” means one or more loan agreements to be entered into by Buyer and the Debt Financing Sources in connection with the Debt Financing, in form and substance reasonably acceptable to Seller, which shall (a) provide for a principal amount of not less than an amount sufficient to pay the Purchase Price and all other amounts to be paid by Buyer at Closing in connection with the consummation of the Transactions, (b) contain customary conditions to funding, (c) include a commitment of the Debt Financing Sources to fund the Debt Financing upon satisfaction of the conditions to funding, which commitment shall not expire prior to the Outside Date and (d) shall not impose any liabilities or obligations on Seller, the Company or any of their respective Affiliates.
“Loan Documents” means the Loan Agreements and all exhibits, schedules and annexes thereto.
“Material Casualty” means a Casualty for which the aggregate cost to repair the related damage is reasonably expected by Seller to be Five Million Dollars ($5,000,000) or more in the aggregate.
“Material Condemnation” means a Condemnation for which the condemnation award reasonably expected by Seller is Five Million Dollars ($5,000,000) or more in the aggregate.
“MOB Sale” means the sale of a portfolio of medical office buildings as described in further detail on Schedule 1.1(a).

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“NDRC” means the National Development and Reform Commission of the PRC or its competent local counterparts.
“NRF” means NorthStar Realty Finance Corp.
“NSAM” means NorthStar Asset Management Group Inc.
“Option Sale” means any sale of a Property made following the exercise of a purchase option pursuant to the agreement set forth on Schedule 1.1(b).
“Order” means any order, injunction, judgment, decree, stipulation, determination, ruling, writ, assessment or arbitration or other award of a Governmental Entity.
“Organizational Documents” means, as to any Person, its (a) certificate or articles of incorporation, or similar corporate or other instruments of organization, (b) articles of association, by-laws or other similar instruments, and (c) shareholder agreements, limited partnership agreements, limited liability company agreements or operating agreements and other similar governing corporate documents.
“Permit” means any approvals, authorizations, consents, licenses, permits, waivers, certifications, franchises, certificates, variances, registrations or other similar authorization issued, or otherwise granted, by a Governmental Entity.
“Permitted Liens” means (a) all Liens disclosed in policies of title insurance, (b) Liens for Taxes, assessments or other governmental charges not yet due, payable or delinquent (or which may be paid without interest or penalties) or the amount or validity of which is being contested in good faith by appropriate proceedings for which the Company or one of its Subsidiaries has established adequate reserves to the extent required by GAAP, (c) mechanics’, carriers’, workers’, repairers’, and similar Liens arising or incurred in the ordinary course of business or the amount or validity of which is being contested in good faith by appropriate proceedings for which the Company or one of its Subsidiaries has established adequate reserves to the extent required by GAAP, (d) pledges, deposits or other Liens to the performance of bids, trade contracts (other than for borrowed money), leases or statutory obligations, (e) zoning, entitlement and other land use and environmental regulations by any Governmental Entity, (f) minor survey exceptions and matters as to the Properties which would be disclosed by an accurate survey or inspection of such real property and which do not materially impair the current occupancy or current use of such Property, (g) any Lien affecting the fee interest of any Property created by the applicable tenant(s) of such fee interest, (h) title of a lessor under any lease, (i) any Liens discharged or released at or in connection with Closing, (j) any lien, pledge or security interest granted in connection with any Indebtedness for borrowed money of the Company or any Company Subsidiary and (k) such other imperfections in title, charges, easements, restrictions and encumbrances which do not materially impair the current occupancy or current use of such Property.
“Person” means any individual, corporation, partnership, limited liability company, limited liability partnership, firm, joint venture, association, joint-stock company, trust, unincorporated organization, Governmental Entity or other entity.

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“PRC” means the People’s Republic of China (excluding Taiwan, and the Hong Kong and the Macau Special Administrative Regions).
“PRC Approvals” means the filings with and/or approvals of CIRC and NDRC and the completion of the outbound investment related foreign exchange filing with the relevant bank authorized by SAFE required with respect to the consummation of the Transactions.
“Pre-Closing Documents” means the documents, agreements and instruments necessary to effect the Pre-Closing Restructuring, each of which shall be in form and substance reasonably acceptable to Buyer.
“Pre-Closing Restructuring” means the transactions set forth on Exhibit A, as may be revised from time to time by agreement of the Parties prior to the Closing.
“Pre-Closing Tax Period” means any Tax period that ends on or prior to the Closing Date and that portion of any Straddle Period that ends on the Closing Date.
“Representatives” means the officers, directors, employees, accountants, consultants, legal counsel, financing sources, agents and other representatives of a Person.
“SAFE” means the State Administration of Foreign Exchange of the PRC or its competent local counterparts.
“Side Letters” means those certain letter agreements entered into by the Parties concurrently with the execution of this Agreement.
“Straddle Period” means any Tax period that begins on or prior to the Closing Date and ends after the Closing Date.
“Subsidiary” means, with respect to any specified Person, any (i) entity of which such specified Person directly or indirectly owns or has the power to vote shares of any capital stock or other ownership interests (x) having voting power to elect a majority of the directors of such corporation or other Persons performing similar functions for such entity or (y) representing (I) 50% or more of the ownership interests in such entity (by value) or (II) an interest in 50% or more of the capital or profits of such entity, or (ii) with respect to which such specified Person acts as sole managing member or sole general partner or in a similar capacity. For the avoidance of doubt, each of the Company and the Company Subsidiaries is, and following the Pre-Closing Restructuring Newco will be, a Subsidiary of JV, and NRF OP SPV is a Subsidiary of Seller.
“Tax” or “Taxes” means any federal, state, local or foreign taxes, including all net income, gross receipts, license, payroll, employment, excise, severance, escheat or abandoned property, stamp, occupation, premium, windfall profits, environmental, customs duties, equity, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, or other tax of any kind whatsoever, including any interest, penalty or addition thereto imposed by a Taxing Authority.

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“Taxing Authority” means the IRS or any other Governmental Entity having or purporting to exercise jurisdiction with respect to any Tax.
“Tax Returns” means any and all reports, returns, declarations, claims for refund, elections, disclosures, estimates, or information reports required to be supplied to a Taxing Authority in connection with Taxes, including any schedule or attachment thereto or amendment thereof.
“Termination Fee” means Ten Million Dollars ($10,000,000).
“Third Party Payor” means any Government Sponsored Health Care Program, insurer, health benefit plan, health maintenance organization, preferred provider organization, employer-sponsored health plan, multi-employer welfare trust, or any other managed care program or third party payor, including any fiscal intermediary or contractor of any of the foregoing.
“Transaction Documents” means the Side Letters, the Escrow Agreement (if applicable), the Letter of Credit (if applicable), the Newco LLC Agreement, the JV LLC Agreement, the JV Letter Agreement, the Pre-Closing Documents and the other documents, certificates and instruments to be executed and delivered to consummate the Transactions.
“Transactions” means the sale and purchase of the Purchased Interests and the performance of the related covenants and agreements contemplated by this Agreement.
“U.S. Tax Person” means a U.S. person (as defined in Section 7701(a)(30) of the Code).
“Willful Breach” means with respect to any breaches or failures to perform any of the covenants or other agreements contained in this Agreement, a material breach that is a consequence of an act or failure to act undertaken by the breaching Person with actual or constructive knowledge (which shall be deemed to include knowledge of facts that a Person acting reasonably should have, based on reasonable inquiry) that such Person's act or failure to act would, or would reasonably be expected to, result in or constitute a breach of this Agreement.
“Working Capital” means the amount (which may be positive or negative) equal to (a) the consolidated current assets of the Company and the Company Subsidiaries, which current assets shall include only the current assets set forth on Exhibit B under the heading “Current Assets” and no other assets minus (b) the consolidated current liabilities of the Company and the Company Subsidiaries, which current liabilities shall include only the current liabilities set forth on Exhibit B under the heading “Current Liabilities” and no other liabilities, in each case of clauses (a) and (b) determined in a manner consistent with the Sample Adjustment Calculation and Adjustment Principles.  Notwithstanding anything to the contrary contained herein, in no event shall “Working Capital” include any amount (i) with respect to Indebtedness, (ii) included in the determination of Lender Reserves, (iii) in respect of any liability for any dividends or other distributions with respect to the Newco Interests or any equity interests of the Company or the Subsidiaries of the Company that have been declared but are not yet due and payable as of the Closing Date, or any cash reserved or set aside for purposes of effecting such dividends or distributions, (iv) with respect to any insurance proceeds received or 

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receivable by the Company or any Company Subsidiary in respect of any Casualty or any liability for the repair or replacement of the applicable Property, (v) with respect to proceeds received by the Company or a Company Subsidiary, or liabilities incurred or payable by the Company or a Company Subsidiary in connection with the sale or Condemnation of a Property prior to Closing or (vi) if either of Estimated Working Capital and Closing Date Working Capital exceed Twelve Million Dollars ($12,000,000), then the lesser of (A) the amount of such excess and (B) the cash or cash equivalents attributable to such excess.

1.2    Terms Defined Elsewhere.  The following terms are defined in the following Sections of this Agreement:
	
		
	Term
	Section

	Accountants   
	2.4(e)(ii)

	Adjustment Notice   
	2.4(c)

	Adjustment Principles   
	2.4(b)

	Agreement   
	Preamble

	Antitrust Laws   
	6.2(b)

	Arbitrator   
	10.1(a)

	Asset Management Material Contracts   
	4.16(a)(xii)

	Audited Financial Statements   
	4.5(a)

	Base Amount   
	9.2(d)

	Buyer   
	Preamble

	Buyer Capital Advance   
	2.9(a)

	Buyer Indemnified Parties   
	8.2

	Buyer Objection Notice   
	2.4(d)

	Buyer Review Period   
	2.4(d)

	Cap   
	8.4

	Capital Contribution Advance Guarantee   
	2.9(b)

	CFIUS   
	6.2(d)(iii)

	Claim Notice   
	8.5(a)

	Closing   
	7.1

	Company   
	Preamble

	Company Financial Statements   
	4.5(b)

	Company Interests   
	4.4(c)

	Company Leases   
	4.10(f)

	Company Permits   
	4.8(b)

	Company Subsidiaries   
	Recitals

	Company Subsidiary   
	Recitals

	Company Third Party   
	4.10(j)

	Company Title Insurance Policies   
	4.10(j)

	Company Title Insurance Policy   
	4.10(j)

	Condemnation   
	4.13

	Confidentiality Agreement   
	6.5

	Contract   
	4.16(a)

	Conveyance Taxes   
	6.6

	De Minimis Claims   
	8.4

13

	
		
	Term
	Section

	Disclosure Schedule   
	10.8

	D-REIT   
	3.6

	Equity Value Adjustment   
	2.4(a)

	Estimated Adjustment Statement   
	2.4(b)

	Estimated Indebtedness   
	2.4(b)

	Estimated Lender Reserves   
	2.4(b)

	Estimated Working Capital   
	2.4(b)

	Existing Environmental Reports   
	4.15(a)

	Extended Closing Date   
	Definition of Closing Date

	Fee Waiver Value   
	2.4(g)(vi)

	Final Adjustment Date   
	2.4(f)

	GAAP   
	2.4(b)

	Governmental Approval   
	3.4(b)

	Griffin Mortgage   
	4.5(a)

	Healthcare Portfolio   
	Recitals

	ICC   
	10.1(a)

	Indemnified Party   
	8.5(a)

	Indemnifying Party   
	8.5(a)

	Initial Closing Date   
	Definition of Closing Date

	Initial Distribution Date   
	2.4(f)(i)

	Intended Tax Treatment   
	2.6

	JV   
	Preamble

	JV HoldCo Interests   
	Recitals

	JV LLC Agreement   
	2.5(b)

	JV OpCo   
	Preamble

	JV OpCo Interests   
	4.4(a)

	Legal Proceeding   
	3.5

	Losses   
	8.2

	Material Company Leases   
	4.10(g)

	Material Contracts   
	4.16(a)

	Newco   
	Preamble

	Newco Interests   
	4.4(a)

	Newco LLC Agreement   
	2.5(a)

	NRF OP   
	Preamble

	NRF OP SPV   
	Preamble

	Operator   
	4.8(c)

	Outside Date   
	9.1(b)

	Parties   
	Preamble

	Party   
	Preamble

	Property   
	Recitals

	Purchase Price   
	2.2(a)

	Purchased Interests   
	Recitals

	Qualifying Income   
	9.2(d)

	REIT   
	2.6

	REIT Requirements   
	9.2(d)

14

	
		
	Term
	Section

	Rent Roll Summary   
	4.10(f)

	Resolution Period   
	2.4(e)(i)

	Rules   
	10.1(a)

	Sample Adjustment Calculation   
	2.4(b)

	Seller   
	Preamble

	Seller Group   
	Preamble

	Seller Indemnified Parties   
	8.3

	Survival Date   
	8.1

	Tax Guidance   
	9.2(d)

	Threshold   
	8.4

	Total Equity Value   
	2.4(a)

	Unaudited Financial Statements   
	4.5(b)

1.3    Interpretation.  Unless the express context otherwise requires:
(a)    the words “hereof”, “herein”, and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;
(b)    terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa;
(c)    the terms “Dollars” and “$” mean United States Dollars and the terms “Renminbi” and “¥” mean the official currency of the PRC;
(d)    references herein to a specific Section, Subsection, Recital, Schedule or Exhibit shall refer, respectively, to Sections, Subsections, Recitals, Schedules or Exhibits of this Agreement;
(e)    wherever the word “include”, “includes”, or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”;
(f)    references herein to any gender shall include each other gender;
(g)    references herein to any Person shall include such Person’s heirs, executors, personal representatives, administrators, successors and assigns; provided, however, that nothing contained in this clause (g) is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; provided, further, that, for the avoidance of doubt, references to Seller shall include any Subsidiary of Seller to whom Seller sells, assigns or transfers all or a portion of its JV HoldCo Interests and its rights hereunder with respect thereto in accordance with Section 10.6(c);
(h)    references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity;

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(i)    references herein to any contract (including this Agreement) mean such contract as amended, supplemented or modified from time to time in accordance with the terms thereof;
(j)    with respect to the determination of any period of time, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”;
(k)    references herein to any Law or any Permit mean such Law or Permit as amended, modified, codified, reenacted, supplemented or superseded in whole or in part, and in effect from time to time;
(l)    references herein to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder;
(m)    any item shall be considered “made available” to Buyer, to the extent such phrase appears in this Agreement, if such item has been posted by the Seller Group or its Representatives in the electronic data room established in connection with the Transactions at least two (2) Business Days prior to the date hereof; and 
(n)    the Parties agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any Law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

ARTICLE II 
 
PURCHASE AND SALE OF INTERESTS; PURCHASE PRICE

2.1    Sale and Purchase of Purchased Interests.  Upon the terms and subject to the conditions of this Agreement, on the Closing Date, Seller shall, or shall cause its Affiliates to, sell, transfer, assign, convey and deliver, to Buyer, and Buyer shall purchase from Seller (directly or indirectly), the Purchased Interests, which shall represent indirect ownership of the Buyer Ownership Percentage of the Company Interests, free and clear of all Liens other than Liens imposed by Buyer or restrictions on transfer under applicable securities Laws, the JV LLC Agreement, the Newco LLC Agreement or the JV Letter Agreement.

2.2    Purchase Price.
(a)    Subject to the adjustments set forth in Section 2.4, the aggregate consideration for the Purchased Interests at the Closing shall be Three Hundred Thirty Million Dollars ($330,000,000) (the “Purchase Price”).
(b)    Within five (5) Business Days (provided, that if Buyer is using commercially reasonable efforts to deliver a fully executed Letter of Credit to Seller or to deliver the Deposit Amount to the Escrow Agent, such period may be extended by Buyer for one (1) additional five (5) Business Day period) of Buyer’s execution and delivery of the Loan Agreements, at Buyer’s election, (i) Buyer shall deliver or cause to be delivered to Seller the

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fully executed Letter of Credit or (ii) the parties to the Escrow Agreement shall execute and deliver the Escrow Agreement and, simultaneously with such execution and delivery, Buyer shall deliver the Deposit Amount to the Escrow Agent to be held and disbursed by the Escrow Agent in accordance with the terms and provisions of the Escrow Agreement. 
(c)    At the Closing, (i) Buyer shall pay or cause to be paid the Purchase Price by wire transfer of immediately available funds in Dollars to Seller to the Closing Account and (ii) in the event that the Deposit Amount is not used to fund Buyer’s obligations in the foregoing subclause (i), Buyer and Seller shall jointly instruct the Escrow Agent to release the Deposit Amount to Buyer.

2.3    Escrow Arrangements.  In the event that Buyer exercises its option to deliver the Deposit Amount to the Escrow Agent under Section 2.2(b)(ii), the Deposit Amount shall be delivered to and held and disbursed by the Escrow Agent in accordance with the terms and provisions of the Escrow Agreement.  The Deposit Amount shall not be refundable to Buyer, except as provided in Sections 9.2(b)(ii), 9.2(b)(iii) and 9.2(b)(iii) or simultaneously with Closing in accordance with Section 2.2(c).

2.4    Adjustments to Equity Value.  
(a)    The Estimated Total Equity Value shall be adjusted at Closing as follows (each such adjustment, an “Equity Value Adjustment”, and the Estimated Total Equity Value as so adjusted at Closing, the “Total Equity Value”):
(i)    The Estimated Total Equity Value shall be increased by the amount of Estimated Working Capital;
(ii)    If the sale, including as a result of a Condemnation or the MOB Sale, of a Property is consummated after the date hereof but before the Closing Date, the Estimated Total Equity Value shall be decreased by the Adjustment Amount for such Property;
(iii)    If the purchase of an Eligible Property is consummated after the date hereof but before the Closing Date, the Estimated Total Equity Value shall be increased by the Adjustment Amount for such Eligible Property;
(iv)    The Estimated Total Equity Value shall be (A) decreased by the amount, if any, equal to the excess of the Estimated Indebtedness over the Company Indebtedness Estimate Amount or (B) increased by the amount, if any, equal to the excess of the Company Indebtedness Estimate Amount over the Estimated Indebtedness; 
(v)    The Estimated Total Equity Value shall be increased by the amount, if any, of Estimated Lender Reserves; 
(vi)    The Estimated Total Equity shall be (A) decreased by the amount, if any, of any negative adjustment to the Allocated Purchase Price (JV Interest) or (B) increased by the amount, if any, of any positive adjustment to the Allocated Purchase Price (JV Interest), in each case, as a result of the re-valuation of Properties located in the United Kingdom based on the Closing Date Exchange Rate in accordance with the terms hereof; and

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(vii)    The Estimated Total Equity Value shall be decreased by One Million Dollars ($1,000,000).
Notwithstanding the foregoing, the Parties agree that (i) to the extent that any of the Equity Value Adjustments arise from or out of any facts, circumstances or conditions or events that overlap, there shall be no duplication of counting toward the calculation of any such Equity Value Adjustments and (ii) prior to each Equity Value Adjustment finally determined pursuant to this Section 2.4, Seller shall contribute to JV in exchange for JV HoldCo Interests a number of Newco Interests that is sufficient to cause Seller’s ownership percentage of JV not to be less than 53% (taking into account such Equity Value Adjustment).
(b)    Estimated Adjustment Statement.  No later than five (5) Business Days prior to the Closing Date, Seller shall prepare in good faith and deliver or cause to be delivered to Buyer (x) (i) an updated version of Exhibit H reflecting any re-valuation of Properties located in the United Kingdom in accordance with the terms hereof and (ii) the updated Company Indebtedness Estimate Amount reflecting any re-valuation of the Company Indebtedness Estimate Amount in accordance with the terms hereof, and (y) an estimate of (i) Closing Date Working Capital (the “Estimated Working Capital”), (ii) Closing Date Indebtedness (the “Estimated Indebtedness”), (iii) Closing Date Lender Reserves (the “Estimated Lender Reserves”) and (iv) any Adjustment Amount(s) (such statement, the “Estimated Adjustment Statement”), in the case of each of subclauses (i)-(iii) as of the Determination Time and prepared (A) in accordance with United States generally accepted accounting principles (“GAAP”) and (B) on a basis consistent with the sample calculation of Working Capital, Indebtedness and Lender Reserves (the “Sample Adjustment Calculation”) set forth on Exhibit B hereto together with any accounting principles, procedures, policies and methods also set forth on such exhibit (collectively, the “Adjustment Principles”); provided, that, in the event of any inconsistency among the foregoing, Exhibit B shall dictate the treatment of such inconsistency followed by GAAP.  The Estimated Adjustment Statement will be accompanied by such backup materials and schedules as are reasonably necessary to support the accuracy of the information contained therein.  To the extent reasonably requested by Buyer, at Buyer’s expense (limited, with respect to Seller, to Seller’s reasonable and documented out-of-pocket expenses), Seller will provide reasonable access to members of the Seller Group’s accounting and financial staff in connection with Buyer’s review of the Estimated Adjustment Statement.  Seller will review any comments proposed by Buyer with respect to the Estimated Adjustment Statement and will consider, in good faith, any appropriate changes.  Buyer and Seller acknowledge and agree that (A) the exercise by Buyer of the foregoing review right, and any subsequent consultation with Seller in respect thereto, shall not delay or postpone the occurrence of the Closing and, (B) if the Seller and Buyer are unable to agree on any amount set forth in the Estimated Adjustment Statement, without limiting Buyer’s rights under Section 2.4(d), the amount proposed by the Seller shall be used for purposes of the Estimated Adjustment Statement.
(c)    Post-Closing Adjustment.  Within sixty (60) calendar days following the Closing Date, Seller shall prepare in good faith and deliver or cause to be delivered to Buyer a notice (the “Adjustment Notice”) containing Seller’s calculation of (i) Closing Date Working Capital, (ii) Closing Date Indebtedness, (iii) Closing Date Lender Reserves, and (iv) any Adjustment Amount(s), in the case of each of subclauses (i)-(iii) as of the Determination 

18

Time and prepared (A) in accordance with GAAP and (B) on a basis consistent with the Sample Adjustment Calculation and the Adjustment Principles; provided, that, in the event of any inconsistency among the foregoing, Exhibit B shall dictate the treatment of such inconsistency followed by GAAP.  The Adjustment Notice will be accompanied by such backup materials and schedules as are reasonably necessary to support the accuracy of the information contained therein.
(d)    Within sixty (60) calendar days after the delivery to Buyer of the Adjustment Notice (the “Buyer Review Period”), Buyer shall notify Seller of its agreement or disagreement with the Adjustment Notice.  If Buyer in good faith disagrees with the Adjustment Notice, Buyer shall deliver to Seller, prior to the expiration of the Buyer Review Period, a notice (the “Buyer Objection Notice”) setting forth (i) the items or amounts with which Buyer disagrees and the basis for such disagreement and (ii) Buyer’s proposed corrections to the Adjustment Notice.  If Buyer does not deliver a Buyer Objection Notice or if Buyer agrees in writing with the Adjustment Notice, Buyer shall be deemed to agree in all respects with the Adjustment Notice and the items and amounts reflected thereon shall be final and binding upon the Parties.  During the Buyer Review Period, the Seller Group shall promptly comply with reasonable written requests by Buyer provided in advance for access, during normal business hours, to each member of the Seller Group’s and its respective Affiliates’ business, accountants and personnel involved in, and to the supporting information, books and records utilized in, the preparation of the Estimated Adjustment Statement and Adjustment Notice and shall cause each member of the Seller Group’s and its respective Affiliates’ accountants and personnel to reasonably cooperate with Buyer’s review of such items and amounts; provided, that, (A) accountants shall not be obligated to make any work papers (to the extent extant) available to Buyer unless and until Buyer has signed a customary agreement relating to such access to work papers in form and substance reasonably acceptable to such accountants, and (B) Seller shall not be required to provide access to any information to the extent such access could result in the waiver of any legal privilege or work product protection of the Seller or the Company.
(e)    If a Buyer Objection Notice is delivered in accordance with Section 2.4(d), the Parties agree that:
(i)    During the thirty (30) calendar day period following the delivery of the Buyer Objection Notice (the “Resolution Period”), Buyer and Seller shall seek in good faith to resolve in writing any disagreement between them with respect to the matters set forth in the Buyer Objection Notice;
(ii)    If, at the end of the Resolution Period, Buyer and Seller have not resolved in writing the matters specified in the Buyer Objection Notice, Buyer and Seller shall jointly refer in writing to the New York City office of Deloitte & Touche LLP (or a firm of accountants of nationally recognized standing reasonably satisfactory to Buyer and Seller) (the “Accountants”) for resolution of only those matters in the Buyer Objection Notice which remain unresolved as of the end of the Resolution Period.  In performing their review, the Accountants shall apply the Adjustment Principles and determine the accurate application of the Adjustment Principles to only those unresolved items or amounts in the Adjustment Notice as to which Buyer has, in the Buyer Objection Notice, disagreed and such other issues as may be reasonably affected by the items to which Buyer has so disagreed.  The Accountants shall be 

19

required to deliver to Buyer and Seller, as promptly as practicable, but no later than thirty (30) calendar days after the Accountants are engaged, a written report setting forth their resolution and, if applicable, their calculation of the disputed items or amounts.  In no event shall the Accountants assign a value greater than the greatest value for such item claimed by either Seller in the Adjustment Notice or Buyer in the Buyer Objection Notice or smaller than the smallest value claimed by either Seller in the Adjustment Notice or Buyer in the Buyer Objection Notice.  Buyer and the Seller Group shall promptly comply with reasonable requests by the Accountants for information, books, records and similar items; and
(iii)    Upon delivery of the Accountants’ written report, such report and the calculations set forth therein shall be final and binding upon Buyer and Seller, and in connection with such Accountants’ report, no party shall seek recourse to the courts, other tribunals or venues pursuant to this Agreement or otherwise, other than to collect any amounts due under this Section 2.4.  The fees, costs and expenses of the Accountants shall be allocated between the Buyer and Seller based on the inverse of the percentage the Accountants’ determination bears to the total amount of the total items in dispute as originally submitted to the Accountants.  For example, if the items in dispute equal $1,000 and the Accountants award $600 in favor of Seller’s position, 60% of the fees, costs and expenses of the Accountants’ review would be borne by Buyer and 40% of the fees, costs and expenses would be borne by Seller.
(iv)    The Accountants shall act as experts, not as arbitrators, in resolving such disputed items and amounts.  The proceeding before the Accountants shall be an expert determination under applicable Laws governing expert determination and appraisal proceedings.  All communications between Seller and Buyer, on the one hand, and the Accountants, on the other hand, shall be in writing with copies simultaneously delivered to the non-communicating party.
(f)    Final Adjustment.  Upon the final determination of the Closing Date Working Capital, Closing Date Indebtedness, Closing Date Lender Reserves and the Adjustment Amounts pursuant to this Section 2.4 and the final determination of Total Equity Value (the date of such final determinations, the “Final Adjustment Date”):
(i)    Buyer agrees that Newco shall, on the first date on which Newco makes a distribution pursuant to Article 4 of the Newco LLC Agreement following the Final Adjustment Date (the “Initial Distribution Date”), distribute to or for the benefit of Seller an amount of distributions otherwise payable indirectly to Buyer through JV OpCo and JV (other than Special Tax Distributions (as defined in the Newco LLC Agreement) and, unless otherwise elected by Buyer, distributions in respect of Preferred Return (as defined in the Newco LLC Agreement) to JV OpCo) pursuant to Article 4 of the Newco LLC Agreement, an amount equal to the Buyer Ownership Percentage of the amount, if any, by which, the Total Equity Value as finally determined pursuant to this Section 2.4 exceeds the Estimated Total Equity Value, provided, that, if Newco does not distribute such amount to or for the benefit of Seller in full on the Initial Distribution Date, any amount not distributed shall accrue interest at a rate of 7.50% per year from such date until the date such amount (together with any interest accrued thereon) is finally distributed to or for the benefit of Seller; 

20

(ii)    Seller agrees that Newco shall, on the Initial Distribution Date, distribute to JV OpCo for the indirect benefit of Buyer an amount of distributions otherwise payable to Seller (other than Special Tax Distributions (as defined in the Newco LLC Agreement), unless otherwise elected by Seller, and distributions in respect of Preferred Return (as defined in the Newco LLC Agreement) to Seller), directly or indirectly, pursuant to Article 4 of the Newco LLC Agreement, an amount equal to the Buyer Ownership Percentage of the amount, if any, by which Total Equity Value as finally determined pursuant to this Section 2.4 is less than the Estimated Total Equity Value, provided, that, if Newco does not distribute such amount for the indirect benefit of Buyer in full on the Initial Distribution Date, any amount not distributed shall accrue interest at a rate of 7.50% per year from the Initial Distribution Date until the date such amount (together with any interest accrued thereon) is finally distributed for the indirect benefit of Buyer. 
Buyer, Seller and each of their respective Affiliates shall, for all Income Tax purposes, treat amounts distributed under Section 2.4(f)(i) to or for the benefit of Seller as having been (i) distributed by Newco to JV OpCo in accordance with Article 4 of the Newco LLC Agreement with respect to Newco interests owned indirectly by Buyer, (ii) distributed by JV OpCo to JV, (iii) distributed by JV to Buyer in accordance with the JV LLC Agreement, and (iv) then paid by Buyer to Seller as an adjustment of the Purchase Price hereunder.  Buyer, Seller and each of their respective Affiliates shall, for all U.S. federal, state and local income tax purposes, treat amounts distributed under Section 2.4(f)(ii) to JV OpCo for the indirect benefit of Buyer as having been (i) distributed by Newco to Seller, directly or indirectly, with respect to Newco Interests not owned by JV OpCo in accordance with Article 4 of the Newco LLC Agreement, and (ii) then paid by Seller to Buyer as an adjustment of the Purchase Price hereunder.

2.5    Governing Documents.  At the Closing, the limited liability company agreements of Newco and JV shall be amended and restated such that:
(a)    the form of limited liability company agreement of Newco attached hereto as Exhibit C, shall be the limited liability company agreement of Newco (the “Newco LLC Agreement”), until thereafter amended in accordance with applicable Law and the applicable provisions of such limited liability company agreement; and
(b)    the form of limited liability company agreement of JV attached hereto as Exhibit D, shall be the limited liability company agreement of JV (the “JV LLC Agreement”), until thereafter amended in accordance with applicable Law and the applicable provisions of such limited liability company agreement.

2.6    Tax Treatment.  The Parties intend that (a) in the event that the Closing occurs in 2016, (i) the formation of JV by Seller, (ii) the contribution by Seller of the JV OpCo Interests to JV in exchange for the JV HoldCo Interests (including the Purchased Interests), and (iii) the purchase and sale of the Purchased Interests hereunder, shall be treated as an integrated transaction immediately after which Seller is not in control (as defined in section 368(c) of the Code) of JV and thus the transaction described in subclause (ii) of this clause (a) is a taxable exchange in which Seller recognizes gain under Section 1001(a) of the Code and (b) in the event that Seller exercises its rights under Section 10.6(c) to sell, assign or transfer all or a portion of its JV HoldCo Interests to a wholly-owned Subsidiary that is not a disregarded entity for U.S.

21

 federal, state and local income Tax purposes, (i) the formation of JV by NRF OP (directly or indirectly), (ii) the contribution by NRF OP of the JV OpCo Interests to JV in exchange for the JV HoldCo Interests (including the Purchased Interests) and (iii) the sale by NRF OP of the Purchased Interests to an Affiliate pursuant to Section 10.6(c), shall be treated as an integrated transaction immediately after which NRF OP is not in control (as defined in Section 368(c) of the Code) of JV) and thus the transaction described in subclause (ii) of this clause (b) is a taxable exchange in which Seller recognizes gain under Section 1001(a) of the Code (the “Intended Tax Treatment”).  The Parties shall file all Tax Returns consistent with the Intended Tax Treatment and shall take no position inconsistent therewith with any Taxing Authority unless otherwise required by a change in applicable Law or a final determination of a Taxing Authority. For its taxable year in which the Pre-Closing Restructuring occurs, each entity classified as a partnership for U.S. federal income tax purposes in which the Company directly or indirectly (other than through a REIT) holds a partnership interest will have a valid election under Section 754 of the Code in effect.  JV shall make a timely election to be treated as a real estate investment trust within the meaning of Section 856 of the Code (“REIT”) for the taxable year of JV beginning on the date of its formation.

2.7    Allocation of Purchase Price.  Buyer and Seller agree that for federal, state and local income Tax purposes, the fair market value of the JV HoldCo Interests (including the Purchased Interests) and other relevant items which are treated as consideration received by Seller for federal, state and local income Tax purposes in the exchange of JV OpCo Interests for JV HoldCo Interests pursuant to the Pre-Closing Restructuring shall be allocated amongst the assets of the Company in a manner determined by Seller in accordance with Section 1060 of the Code and the U.S. Treasury Regulations promulgated thereunder.  Seller shall provide Buyer a copy of an allocation statement setting forth such allocation and the allocation, in accordance with Treasury Regulation section 1.755-1, of basis adjustments under section 743(b) of the Code amongst the property of each partnership in which the Company holds a partnership interest within thirty (30) days of the final determination of the adjustments, if any, pursuant to Section 2.4.

2.8    Withholding.  Buyer shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code, or any provision of state, local or foreign Tax Law.  Assuming Seller delivers to Buyer the certificate described in Section 7.5(b)(viii), Buyer is not aware of any obligation to deduct or withhold on any consideration payable pursuant to this Agreement.  In the event Buyer becomes aware of any such obligation, Buyer will promptly notify Seller and cooperate with Seller to reduce or eliminate any such withholding.  To the extent that such amounts are so withheld, such withheld and deducted amounts will be treated for all purposes of this Agreement as having been paid to Seller in respect of which such deduction and withholding was made by such Party.

2.9    Capital Advance.
(a)    At the Closing, Buyer shall deliver, by wire transfer of immediately available funds in Dollars to the Closing Account, an amount equal to twenty million Dollars ($20,000,000) (the “Buyer Capital Advance”), to satisfy, in part, the obligations

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of the NorthStar Member (on behalf of the JV Member) under Section 3.02(a) of the Newco LLC Agreement.
(b)    At the Closing, Seller shall deliver to Buyer a guarantee (the “Capital Contribution Advance Guarantee”) from Seller in respect of the NorthStar Member’s obligations under the Newco LLC Agreement relating to the Capital Contribution Advance (as defined in the Newco LLC Agreement), substantially in the form of Exhibit G hereto.

ARTICLE III 
 
REPRESENTATIONS AND WARRANTIES OF THE SELLER
Seller hereby represents and warrants to Buyer as follows:

3.1    Title to the Purchased Interests.  After the completion of the Pre-Closing Restructuring and as of immediately prior to the Closing, Seller (or its Affiliates) will own one hundred percent (100%) of the JV HoldCo Interests, including one hundred percent (100%) of the Purchased Interests, in each case free and clear of Liens other than Liens imposed by Buyer or restrictions on transfer under applicable securities Laws.  After completion of the Pre-Closing Restructuring and as of immediately prior to the Closing, neither Seller nor any of its Affiliates will hold any equity or debt interests in JV other than the JV HoldCo Interests. Upon consummation of the Transactions, Buyer will own (i) JV HoldCo Interests representing indirect ownership of the Buyer Ownership Percentage of the Company Interests and, indirectly, (ii) the Buyer Ownership Percentage of the Company Interests, in each case free and clear of Liens other than Liens imposed by Buyer or restrictions on transfer under applicable securities Laws, the JV LLC Agreement, the Newco LLC Agreement or the JV Letter Agreement.

3.2    Organization.  After completion of the Pre-Closing Restructuring and as of immediately prior to the Closing, Seller will directly own 100% of the equity interests in NRF OP SPV.  Seller is a limited partnership duly organized, validly existing and in good standing under the Laws of Delaware.  NRF OP SPV is a limited liability company duly organized, validly existing and in good standing under the Laws of Delaware.  Each of Seller and NRF OP SPV has the requisite corporate or partnership power and authority to own, lease or operate its properties and to carry on its business as now being conducted.  Each of Seller and NRF OP SPV is duly qualified or licensed to do business and is in good standing (with respect to jurisdictions which recognize such concept) in each jurisdiction in which the nature of its business or the ownership, leasing or operation of its properties or assets makes such qualification or licensing necessary except where the failure to be so qualified or licensed or to be in good standing would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Seller or NRF OP SPV to perform their respective obligations under this Agreement or the Transaction Documents to which they are a party.

3.3    Authorization of Agreement.  Each of Seller and NRF OP SPV has all requisite power and authority and has taken all action required to execute and deliver this Agreement and the Transaction Documents to which it is a party and to perform its obligations hereunder and thereunder.  This Agreement has been, and upon their execution the Transaction Documents to which Seller or NRF OP SPV is a party shall have been, duly executed and 

23

delivered by Seller or NRF OP SPV, as the case may be, and, assuming that this Agreement and each such Transaction Document constitutes the legal, valid and binding obligation of the other parties hereto and thereto (other than another member of the Seller Group or an Affiliate thereof), this Agreement constitutes, and upon its execution each of the Transaction Documents to which Seller is a party shall constitute, the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to applicable Equitable Principles.

3.4    Conflicts; Consents of Third Parties.
(a)    The execution and delivery by each of Seller and NRF OP SPV of this Agreement and the Transaction Documents to which it is a party, the performance by each of Seller and NRF OP SPV of this Agreement and the Transaction Documents to which it is a party in accordance with their respective terms, and the consummation of the Transactions, do not and will not, conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time or both) under, give rise to a right of termination, cancellation or acceleration of any material contractual obligation under, result in the creation of any Lien upon any of the Purchased Interests or material Properties under:
(i)    the Organizational Documents of Seller, NRF OP SPV, JV, JV OpCo, Newco or the Company or any of its Subsidiaries;
(ii)    any Contract or Permit to which Seller, NRF OP SPV, JV, JV OpCo, Newco or the Company or any of its Subsidiaries is a party or otherwise bound; or
(iii)    any Law applicable to Seller, NRF OP SPV, JV, JV OpCo, Newco or the Company or any of its Subsidiaries, 
except, in the case of (ii) and (iii) where such conflict, violation, breach or default, would not have, and would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Seller, NRF OP SPV, JV, JV OpCo, Newco or the Company to perform their respective obligations under this Agreement or the Transaction Documents to which they are a party.
(b)    Except as set forth on Schedule 3.4(b), no consent, waiver, approval, Order, Permit or authorization of, or declaration or filing with, or notification to, any Governmental Entity (a “Governmental Approval”) is required on the part of Seller or any of its Affiliates (other than the Company or any of its Subsidiaries) in connection with the execution and delivery by Seller and NRF OP SPV of this Agreement or the Transaction Documents to which they are a party or the consummation of the Transactions by Seller and its Affiliates (other than the Company or any of its Subsidiaries), except for any such Governmental Approval, the failure of which to make or obtain would not have, and would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Seller or NRF OP SPV to perform their respective obligations under this Agreement or the Transaction Documents to which they are a party.

3.5    Legal Proceedings.  There is no claim, action, suit, arbitration, inquiry, investigation, alternative dispute resolution action or any other judicial or administrative

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proceeding of any nature, in Law or equity, by or before a Governmental Entity (each, a “Legal Proceeding”), pending against (or to Seller’s Knowledge, threatened in writing against) Seller or NRF OP SPV that would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Seller or NRF OP SPV to perform their respective obligations under this Agreement or the Transaction Documents to which they are a party. Neither Seller nor NRF OP SPV is subject to any outstanding Order which has had or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Seller or NRF OP SPV to perform their respective obligations under this Agreement or the Transaction Documents to which they are a party.

3.6    Tax Status.  Seller is a U.S. Tax Person, and 100% of the equity interests in Seller are owned (directly or indirectly through other U.S. Tax Persons) by NRF and individuals or estates that are U.S. Tax Persons.  To the actual knowledge of Seller and its Affiliates, (a) as of the date hereof, NRF qualifies as a REIT that is a domestically controlled qualified investment entity within the meaning of Code section 897(h) (a “D-REIT”) and (b) as of the Closing either NRF will be a D-REIT or 100% of the equity interests in Seller will be owned (directly or indirectly through other U.S. Tax Persons) by one or more U.S. Tax Persons that are classified as (i) D-REITs, (ii) C corporations (within the meaning of U.S. Treasury Regulation section 1.337(d)-7(a)(2)(i)), (iii) individuals, or (iv) estates.

3.7    Limitations of Representations and Warranties.  Except for the representations and warranties set forth in this Article III and in Article IV and any Transaction Document, neither Seller nor any other Person makes any express or implied representation or warranty with respect to Seller. Seller hereby disclaims any other express or implied representations or warranties.  Except for the representations and warranties set forth in this Article III and any Transaction Document, Seller is not making any representations or warranties regarding the Company, JV, their respective Subsidiaries, the Healthcare Portfolio or any pro-forma financial information, financial projections or other forward-looking information or statements with respect thereto.  Except for the representations and warranties set forth in this Article III and any Transaction Document, Seller hereby disclaims all liability and responsibility for any representation, warranty, opinion, projection, forecast, statement, memorandum, presentation, advice or information made, communicated or furnished (orally or in writing) to Buyer or its Affiliates or Representatives (including any such opinion, projection, forecast, statement, memorandum, presentation, advice or information made available in any electronic data room hosted by Seller or the Company in connection with the Transactions).

ARTICLE IV 
 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
Except as set forth on the Disclosure Schedule, the Company hereby represents and warrants to Buyer as follows:

4.1    Organization.
(a)    JV is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware.

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(b)    JV OpCo is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware.
(c)    Newco is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware.
(d)    The Company is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware.
(e)    Each of the Company Subsidiaries is a corporation, partnership, limited liability company or other company, as applicable, duly organized, validly existing and in good standing (with respect to jurisdictions which recognize such concept) under the Laws of the jurisdiction of its incorporation, except where the failure to be in good standing would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
(f)    Each of the Company, JV, Newco and each of their respective Subsidiaries has the requisite power and authority to own, operate or lease the properties and assets owned, operated or leased by it and to conduct its business as it has been and is now being conducted.  Each of the Company, JV, Newco and each of their respective Subsidiaries is duly qualified or licensed to do business in each jurisdiction in which the nature of its business or the ownership, leasing or operation of its rights, assets or properties makes such qualification or licensing necessary, except for those jurisdictions where the failure to be so qualified or licensed would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.  The Company has delivered to or made available to Buyer, prior to the execution of this Agreement, true, accurate and complete copies of the Organizational Documents of the Company, JV, JV OpCo and Newco, each as in effect as of the date hereof.  Each of the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries is in compliance in all material respects with the terms of their respective Organizational Documents.

4.2    Authorization of Agreement.  Each of the Company, Newco, JV OpCo and JV has all requisite power and authority and has taken all action required to execute and deliver this Agreement and each Transaction Document to which it is a party and to perform its obligations hereunder and thereunder.  This Agreement has been, and upon their execution the Transaction Documents to which the Company, Newco, JV OpCo or JV is a party shall have been, duly executed and delivered by the Company, Newco, JV OpCo or JV, as the case may be, and, assuming that this Agreement and each such Transaction Document constitutes the legal, valid and binding obligation of the other parties hereto and thereto (other than another member of the Seller Group or an Affiliate thereof), this Agreement constitutes, and, upon its execution each of the Transaction Documents to which the Company, Newco, JV OpCo or JV is a party shall constitute, the legal, valid and binding obligation of the Company, Newco, JV OpCo or JV, as the case may be, enforceable against the Company, Newco, JV OpCo or JV in accordance with its terms, subject to applicable Equitable Principles.

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4.3    Conflicts; Consents of Third Parties.
(a)    The execution and delivery by each of JV, JV OpCo, Newco and the Company of this Agreement and the Transaction Documents to which it is a party, the performance by each of JV, JV OpCo, Newco and the Company of this Agreement and the Transaction Documents to which it is a party in accordance with their respective terms, and the consummation of the Transactions, do not and will not, conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time or both) under, give rise to a right of termination, cancellation or acceleration of any material contractual obligation under, result in the creation of any Lien upon any of the Purchased Interests or material Properties under:
(i)    the Organizational Documents of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries;
(ii)    any Contract or Permit to which the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries is a party or otherwise bound; or
(iii)    any Law applicable to the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries,
except, in the case clauses (ii) and (iii), where such conflict, violation, breach or default would not have, individually or in the aggregate, a Company Material Adverse Effect.
(b)    No Governmental Approval is required on the part of JV, JV OpCo, Newco, the Company or any of their respective Affiliates in connection with the execution and delivery by Seller, NRF OP SPV, the Company, Newco, JV OpCo and JV of this Agreement or the Transaction Documents to which Seller, NRF OP SPV, the Company, Newco, JV OpCo or JV is a party or the consummation of the Transactions by Seller, NRF OP SPV, the Company, Newco, JV, JV OpCo and their respective Affiliates, except for any such Governmental Approval, the failure of which to make or obtain would not have, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect or a material adverse effect on the ability of Seller, NRF OP SPV, the Company, Newco, JV OpCo or JV to perform their respective obligations under this Agreement or the Transaction Documents to which Seller, the Company, Newco, JV OpCo or JV is a party.

4.4    Capitalization; Subsidiaries.
(a)    After completion of the Pre-Closing Restructuring and as of immediately prior to the Closing, (i) Seller (or its Affiliates) will directly or indirectly own 100% of the JV HoldCo Interests, (ii) JV will directly own 100% of the equity interests in JV OpCo (the “JV OpCo Interests”) and (iii) Seller (or its Affiliates) and JV OpCo will own 100% of the outstanding ownership interests of Newco (the “Newco Interests”). 
(b)    Except for the JV OpCo Interests, the JV Holdco Interests and the Newco Interests, as contemplated by the Pre-Closing Restructuring, as contemplated by Section 10.6(c), or as set forth on Schedule 4.4(b), there are no options, warrants, calls, subscriptions or other rights, agreements, arrangements or commitments of any kind, relating to the issued or unissued ownership interests of JV, JV OpCo, Newco or any of their respective

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Subsidiaries, obligating Seller, JV, JV OpCo, Newco, the Company or any of their respective Subsidiaries to issue, transfer or sell or cause to be issued, transferred or sold any shares of capital stock of, or other equity interests in, JV, JV OpCo, Newco or any of their respective Subsidiaries (other than the Company and any Company Subsidiaries) or securities convertible into or exchangeable for such shares or equity interests, or obligating Seller, JV, JV OpCo, Newco the Company or any of their respective Subsidiaries to grant, extend or enter into any such option, warrant, call, subscription or other similar right, agreement, arrangement or commitment.  Other than as contemplated by Section 10.6(c), there are no outstanding contractual obligations of Seller, JV, JV OpCo, Newco, the Company or any of their respective Subsidiaries to repurchase, redeem or otherwise acquire any shares of capital stock, or other equity interests in, JV, JV OpCo, Newco or any of their respective Subsidiaries. There are no bonds, debentures, notes, or other Indebtedness having the right to vote on any matters in which JV, JV OpCo, Newco or any of their respective Subsidiaries may vote.
(c)    (i) Immediately after giving effect to the Pre-Closing Restructuring and as of immediately prior to the Closing, Newco will own 100% of the outstanding ownership interests of the Company (the “Company Interests”).  (ii) Except for the Company Interests and as contemplated by the Pre-Closing Restructuring or Section 10.6(c), there are no options, warrants, calls, subscriptions or other rights, agreements, arrangements or commitments of any kind, relating to the issued or unissued ownership interests of the Company or any Company Subsidiary, obligating Seller, JV, JV OpCo, Newco, the Company or any of their respective Subsidiaries to issue, transfer or sell or cause to be issued, transferred or sold any shares of capital stock of, or other equity interests in, the Company or any Company Subsidiary or securities convertible into or exchangeable for such shares or equity interests, or obligating Seller, JV, JV OpCo, Newco, the Company or any of their respective Subsidiaries to grant, extend or enter into any such option, warrant, call, subscription or other similar right, agreement, arrangement or commitment.  
(d)    There are no voting trusts, stockholder agreements, proxies or other similar agreements or understandings with respect to the voting of any shares of or other equity interests in the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries to which the Company, JV, JV OpCo, Newco or any of their respective Affiliates is a party.  None of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has granted any preemptive rights, anti-dilutive rights or rights of first refusal or similar rights with respect to any of its shares of capital stock or other equity interests.  Except as set forth on Schedule 4.4(d)(i), each Subsidiary of the Company, JV, JV OpCo or Newco is wholly owned, directly or indirectly, by the Company.  Except as set forth on Schedule 4.4(d)(ii), the Company or another Company Subsidiary owns, directly or indirectly, all of the issued and outstanding equity interests of each of the Company Subsidiaries, free and clear of Liens (other than Permitted Liens, limitations on transfer and other restrictions imposed by federal or state securities Laws and the applicable Organizational Documents), and all such equity interests have been duly authorized and validly issued in compliance with all applicable Laws and Organizational Documents and are fully paid, nonassessable (to the extent such concepts are applicable) and are free, and were not issued in violation, of preemptive rights.  Except as set forth on Schedule 4.4(d)(iii), the JV OpCo Interests, the JV HoldCo Interests, the Newco Interests and the Company Interests have been duly authorized and validly issued in compliance with all applicable Laws and Organizational Documents and are fully paid, nonassessable (to the extent such concepts are applicable) and are 

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free, and were not issued in violation, of preemptive rights. Except as set forth on Schedule 4.4(d)(iv), there are no outstanding contractual obligations of JV, JV OpCo, Newco, the Company or any of their respective Subsidiaries to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any Person other than a Company Subsidiary. 
(e)    Except for Company Subsidiaries, JV OpCo and Newco, none of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries owns any shares of capital stock, or other equity interests in, any Person. 
(f)    As of immediately prior to the Closing, (i) JV will have no assets and liabilities other than JV OpCo Interests, (ii) JV OpCo will have no assets and liabilities other than Newco Interests, (iii) Newco will have no assets and liabilities other than Company Interests and (iv) the Company will have no assets and liabilities other than with respect to the Healthcare Portfolio.
(g)    All dividends or other distributions on the JV HoldCo Interests, JV OpCo Interests, Newco Interests and the Company Interests which have been authorized or declared prior to the date hereof or pursuant to Section 6.1(c)(ii) have been paid in full (except to the extent such dividends have been declared and are not yet due and payable).

4.5    Financial Statements.
(a)    Schedule 4.5(a) contains true, accurate and complete copies of (i) the audited combined balance sheet of the Borrowers (as defined in that certain Loan Agreement, dated as of December 3, 2014, among Citigroup Global Markets Realty Corp., JPMorgan Chase Bank, National Association, Barclays Bank PLC and Column Financial, Inc., as Lenders, and the entities listed on Schedule I attached thereto, as Borrowers (the “Griffin Mortgage”)) – contractual basis as of December 31, 2015 and the related combined statements of operations – contractual basis and cash flows – contractual basis for the year then ended, together with all related notes and schedules thereto, (ii) the audited consolidated balance sheet of Eclipse Investment, LLC and its Subsidiaries as of December 31, 2015 and the related consolidated statements of operations, changes in members’ equity and cash flows for the year then ended, together with all related notes and schedules thereto and (iii) the audited consolidated balance sheet of Eclipse Investment, LLC and its Subsidiaries as of December 31, 2014 and the related consolidated statements of operations, changes in members’ equity and cash flows for the period May 7, 2014 through December 31, 2014, together with all related notes and schedules thereto (collectively, the “Audited Financial Statements”).
(b)    Schedule 4.5(b) contains true, accurate and complete copies of the unaudited consolidated balance sheet of the Healthcare Portfolio as of March 31, 2016 and December 31, 2015 and the unaudited consolidated income statement of the Healthcare Portfolio for the three-month period ended March 31, 2016 and the year ended December 31, 2015, together with all related schedules thereto (collectively, the “Unaudited Financial Statements” and, together with the Audited Financial Statements, the “Company Financial Statements”).

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(c)    The Company Financial Statements (i) were prepared in accordance with GAAP applied on a basis consistent with the past practices of the Company and the Company Subsidiaries during the periods involved (except as may be indicated in the notes thereto or, in the case of interim financial statements, for normal year-end adjustments, which would not be material in amount), (ii) were prepared on the basis of the books and records of the Company and the Company Subsidiaries and (iii) fairly present (except as may be indicated in the notes thereto or schedules provided therewith) in all material respects, the consolidated financial position and the results of operations of the Healthcare Portfolio as of the dates or for the periods covered thereby (subject, in the case of unaudited interim financial statements, to the absence of notes and normal year-end adjustments).
(d)    The accounting or financial books, records, ledgers and files or other similar information of the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries have been maintained in accordance with good business and accounting practices.

4.6    Undisclosed Liabilities.  Except (a) to the extent reflected or otherwise specifically reserved against on the Company Financial Statements or referenced in the footnotes thereto, (b) for liabilities and obligations incurred in the ordinary course of business since the Balance Sheet Date, (c) for expenses related to the Transactions and (d) for liabilities and obligations pursuant to or arising under any Contract (including this Agreement) to which the Company or any Company Subsidiary is a party other than liabilities or obligations due to breaches thereunder, since the Balance Sheet Date neither the Company nor any Company Subsidiary has incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) that would be required to be included on a consolidated balance sheet of the Company and the Company Subsidiaries prepared in accordance with GAAP, other than as have not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

4.7    Absence of Certain Changes.
(a)    Since December 31, 2015 through the date hereof, (i) the Company has conducted, in all material respects, its business in the ordinary course, (ii) no Effects have occurred, which have had or could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, (iii) suffered any casualty loss or damage with respect to the business or any material Property or the material assets of the Company and the Company Subsidiaries, taken as a whole, whether or not such loss or damage shall have been covered by insurance and (iv) Seller has not taken any action that, if taken after the date of this Agreement, without the prior written consent of Buyer, would constitute a breach of Section 6.1.
(b)    The transactions contemplated by the Colony Merger Agreement will not have or result in any Effects which will have, or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

4.8    Compliance with Laws.
(a)    (i) Each of Seller and NRF OP SPV and the Company, JV, JV OpCo, Newco and their respective Subsidiaries has complied and is in compliance with all Laws

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which affect the business, properties or assets of the Company, JV, JV OpCo, Newco and their respective Subsidiaries, and (ii) no written notice has been received by Seller or NRF OP SPV or the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, or to the Company’s Knowledge, threatened against Seller or NRF OP SPV or the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries alleging any non-compliance with any such Laws, except in each case above, for such non-compliance that has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.  Notwithstanding anything to the contrary in this Section 4.8(a), the provisions of this Section 4.8(a) shall not apply to matters addressed in Sections 4.8(c), 4.11 or 4.15.
(b)    The Company, JV, Newco and their respective Subsidiaries are in possession of all material Permits necessary for the Company and Company Subsidiaries to own or use, lease and, where applicable, operate the Healthcare Portfolio or to carry on their businesses in substantially the same manner as it is being conducted on the date of this Agreement (the “Company Permits”) and all of the Company Permits are valid, and in full force and effect, except, in each case, where the failure by the Company, JV, Newco or a Company Subsidiary, as applicable, to possess and maintain any Company Permit in full force and effect has not had and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
(c)    Except (i) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, and (ii) with respect to matters addressed in a Licensing Survey, (A) each of the Company and each Company Subsidiary is, and, to the Company’s Knowledge, each third party lessee, operator or manager of any Property (each an “Operator”) is, in compliance in all material respects with all applicable Health Care Laws relating to the ownership and operation of the Properties, (B) none of the Company, any Company Subsidiary or, to the Company’s Knowledge, any Operator, has received any written notice from any Governmental Entity alleging any material violation of any applicable Health Care Law relating to the ownership and operation of the Properties, and (C) to the Company’s Knowledge, there is no Legal Proceeding pending against or threatened in writing against the Company, any Company Subsidiary or any Operator alleging any material failure to comply with Health Care Laws relating to the ownership and operation of the Properties.
(d)    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, each Company Subsidiary that is required to be certified for participation in and reimbursement under any material Third Party Payor program that it currently participates in is so certified and, to the extent required, has current provider numbers and provider agreements for each such material Third Party Payor program.

4.9    Legal Proceedings.  There is no Legal Proceeding pending against (or to the Company’s Knowledge, threatened in writing against) the Company, JV, Newco or any of their respective Subsidiaries that would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.  Neither the Company nor any Company Subsidiary is subject to any outstanding Order which has had or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

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4.10    Properties.
(a)    Schedule 4.10(a)(i) sets forth a list of each Property and whether such Property is owned or ground leased.  Schedule 4.10(a)(ii) sets forth a list of the address of each facility and real property which, as of the date of this Agreement, is under contract by the Company or a Company Subsidiary for purchase or which (with respect to all or substantially all of such Property) is required under a written agreement to be sold, leased or subleased by the Company or a Company Subsidiary after the date of this Agreement.  There are no real properties that the Company or any Company Subsidiary is obligated to sell, buy, lease or sublease at some future date.  Neither the Company nor any Company Subsidiary owns or leases any real property which is not set forth on Schedule 4.10(a).
(b)    The Company or a Company Subsidiary owns good and valid fee simple title (with respect to jurisdictions that recognize such form of title or substantially similar title with respect to all other jurisdictions) or leasehold title (as applicable) to each of the Properties, in each case, free and clear of Liens, except for Permitted Liens.
(c)    Neither the Company nor any Company Subsidiary has received (i) written notice to the effect that any Company Permit or any agreement, easement or other right of an unlimited duration that is necessary to permit the lawful use and operation of the buildings and improvements on any of the Properties or that is necessary to permit the lawful use and operation of all utilities, parking areas, retention ponds, driveways, roads and other means of egress and ingress to and from any of the Properties is not in full force and effect as of the date of this Agreement, (ii) written notice of any uncured violation of any Laws affecting the Properties, except as, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect or (iii) written notice from any insurance company or underwriter of any defect that would materially and adversely affect the insurability of any of the Properties.
(d)    No Company Permit or any agreement, easement or other right that is necessary to permit the current use and operation of the buildings and improvements on any of the Properties or that is necessary to permit the current use and operation of all parking areas, driveways, roads and other means of egress and ingress to and from any of the Properties has failed to be obtained or is not in full force and effect, and neither the Company nor any Company Subsidiary has received written notice of any outstanding threat of modification or cancellation of any such Permit, except as, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect.
(e)    Schedule 4.10(e) sets forth the Data Tape, which was prepared in good faith and, to Seller's Knowledge, does not contain in the aggregate any material deficiencies.
(f)    Schedule 4.10(f) (the “Rent Roll Summary”) truly and accurately sets forth, as of September 30, 2016, (i) the tenant, (ii) the lease expiration date, (iii) the contractual rent and (iv) the portfolio such Property belongs to, in each case for each Property other than any Property where the Company or any Company Subsidiary is a tenant (other than ground leases). To the Company’s Knowledge, no Person other than those identified on the Rent

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Roll Summary (and those claiming by, through or under them) is in occupancy of any portion of the Properties set forth on the Rent Roll Summary. Except for discrepancies, errors or omissions that, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect, the Rent Roll Summary correctly references the corresponding property with respect to each lease or sublease in effect on the date shown therein, the “Company Leases”.
(g)    True, accurate and complete copies in all material respects of (i) all ground leases affecting the interest of the Company or any Company Subsidiary in the Properties and (ii) the Company Leases with aggregate annual rent payments to the Company or a Company Subsidiary in excess of Fifteen Million Dollars ($15,000,000), in each case in effect as of the date of this Agreement (the “Material Company Leases”) have been made available to Buyer.  Except as individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect, (x) neither the Company nor any Company Subsidiary is and, to the Company’s Knowledge, no other party is in breach or violation of, or default under, any Material Company Lease, (y) no event has occurred which would result in a breach or violation of, or a default under, any Material Company Lease by the Company or any Company Subsidiary, or, to the Company’s Knowledge, any other party thereto in each case, with or without notice or lapse of time and no tenant under a Material Company Lease is in monetary default under such Material Company Lease, and (z) each Material Company Lease is valid, binding and enforceable in accordance with its terms and is in full force and effect with respect to the Company or a Company Subsidiary and, to the Company’s Knowledge, with respect to the other parties thereto, except as may be limited by applicable Equitable Principles; provided, that, for the purposes of clause (x) and (y) above, no tenant will be deemed to be in monetary breach, violation or default under such Material Company Lease if such monetary breach, violation or default has continued for a period of less than sixty (60) days and is with respect to an amount less than Five Million Dollars ($5,000,000).
(h)    No purchase option, right of first refusal, right of first offer or any other right to purchase or otherwise acquire any Property or any portion thereof has been exercised under any Company Lease for which the purchase has not closed prior to the date of this Agreement.
(i)    Except as set forth in Schedule 4.10(i), (i) there are no unexpired options to purchase agreements, rights of first refusal, rights of first offer or any other rights to purchase or otherwise acquire any Property or any portion thereof, and (ii) there are no agreements to enter into any contract for sale, ground lease or letter of intent to sell or ground lease any Property or any portion thereof that is owned by the Company or any Company Subsidiary, which, in each case, is in favor of any party other than the Company or a Company Subsidiary (a “Company Third Party”).
(j)    The Company and each Company Subsidiary, as applicable, is in possession of title insurance policies or valid marked-up title commitments evidencing title insurance with respect to each Property (each, a “Company Title Insurance Policy” and, collectively, the “Company Title Insurance Policies”).  To the Company’s Knowledge, each Company Title Insurance Policy is in full force and effect.  None of the Company or any Company Subsidiary has made a claim under any Company Title Insurance Policy. 

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(k)    The Company and Company Subsidiaries have good and valid title to, or a valid and enforceable leasehold interest in, or other right to use, all personal property owned, used or held for use by them (other than property owned by tenants and used or held in connection with the applicable tenancy and other than property owned by any third party managers), except as, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect.  Neither the Company’s nor any Company Subsidiary’s ownership of or leasehold interest in any such personal property is subject to any Liens, except for Permitted Liens.
(l)    The Company and Company Subsidiaries do not have any Knowledge, and have not received written notice, of (i) any structural defects, or violation of Law relating to any Properties which would have, or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, and (ii) any physical damage to any Properties which would have, or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect for which there is not insurance in effect covering the cost of the restoration and the loss of revenue.

4.11    Tax Matters.
(a)    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, (i) the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries has timely filed with the appropriate Governmental Entity all Tax Returns required to be filed by the Company, JV, JV OpCo, Newco or their respective Subsidiaries as appropriate, taking into account any extensions of time within which to file such Tax Returns, and all such Tax Returns were true, accurate and complete when filed and (ii) the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries has duly paid (or there has been paid on their behalf) all Taxes required to be paid by them.
(b)    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, (i) there are no current audits, examinations or other proceedings pending with regard to any Taxes of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, (ii) none of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has received a written notice or announcement of any audits or proceedings with respect to Taxes, (iii) no deficiency for Taxes of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has been claimed, proposed or assessed in writing or, to the Seller Group’s Knowledge, threatened, by any Governmental Entity, which deficiency has not yet been settled, except for such deficiencies which are being contested in good faith that are set forth on Schedule 4.11(b), and (iv) none of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has waived any statute of limitations with respect to Taxes or agreed to any extension of time with respect to any Tax assessment or deficiency for any open tax year.  None of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has entered into any “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or foreign income Tax Law).
(c)    Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries has complied, in all material respects, with all

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applicable Laws, rules and regulations relating to the payment and withholding of Taxes (including withholding of Taxes pursuant to Sections 1441, 1442, 1445, 1446 and 3402 of the Code or similar provisions under any state and foreign Laws) and have duly and timely withheld and, in each case, have paid over to the appropriate Taxing Authorities all amounts required to be so withheld and paid over on or prior to the due date thereof under all applicable Laws.
(d)    There are no material Tax Liens upon any property or assets of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries except for Permitted Liens.
(e)    None of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has requested, has received or is subject to any written ruling of a Governmental Entity or has entered into any written agreement with a Governmental Entity with respect to Taxes.
(f)    There are no Tax allocation or sharing agreements or similar arrangements with respect to or involving the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, except for customary indemnification provisions contained in any credit or other commercial agreements the primary purpose of which does not relate to Taxes.  None of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries (A) has been a member of an affiliated group filing a consolidated federal income Tax Return (other than a group the common parent of which was Seller) or (B) has any liability for the Taxes of any Person (other than the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries) under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local, or foreign Tax Law) or as a transferee or successor.
(g)    Neither the Company nor any Company Subsidiary has participated in any “listed transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2).
(h)    Except as set forth on Schedule 4.11(h), the Company, JV OpCo and each of their respective Subsidiaries are, and have been since their formation, disregarded entities for federal income Tax purposes.  Schedule 4.11(h) sets forth the U.S. federal income tax classification of each Subsidiary of the Company that is not a disregarded entity (including whether such entity is a REIT or a taxable REIT subsidiary).  
(i)    Each Subsidiary of the Company that has filed with its Tax Return for any taxable year an election to be a REIT has satisfied all other requirements to qualify as a REIT for each subsequent taxable year for which it has been classified as a corporation for U.S. federal tax purposes.  If the Company were a corporation for U.S. federal tax purposes, as of the Closing it would have met the requirements of Section 856(c)(2) and (3) of the Code for the 12-month period made up of the most recently ended calendar quarter and the three calendar quarters immediately preceding such quarter and would have met the requirements of Section 856(c)(4) of the Code for the most recently ended calendar quarter and for each of the three calendar quarters immediately preceding such quarter.

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(j)    Neither the Company nor any Company Subsidiary will be required to include any item of income (or exclude any item of deduction) in any taxable period ending after the Closing Date as a result of (i) any installment sale or open transaction disposition made on or prior to the Closing Date, (ii) any prepaid amount or deferred revenue received on or prior to the Closing Date, (iii) any cancellation of indebtedness income arising on or prior to the Closing Date, (iv) any change in Tax accounting method prior to the Closing Date under Section 481 of the Code or any comparable provision of state, local or non-U.S. Tax Law, or (v) any “closing agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of state, local or non-U.S. Tax Law).
(k)    This Section 4.11 and Section 4.12 (to the extent such representations and warranties relate to Taxes) constitute the exclusive representations and warranties of the Company, JV, JV OpCo and Newco with respect to Tax matters.  None of the representations and warranties in this Section 4.11 or in Section 4.12 (to the extent such representations and warranties relate to Taxes), other than those in Section 4.11(j) shall apply to any Tax period (or portion thereof) that begins on or after the Closing Date.

4.12    No Employees; No Benefit Plans.  None of the Company, JV, Newco or any of their respective Subsidiaries has or has ever had employees.  None of the Company, JV, Newco or any of their respective Subsidiaries sponsors, maintains, contributes to or has any obligation to contribute to, or has sponsored, maintained or contributed to or had any obligation to contribute to or has had any liability (contingent or otherwise) with respect to any “employee benefit plan,” as defined in Section 3(3) of ERISA, any “single-employer plan,” as defined in Section 4001(a)(15) of ERISA or any “multiemployer plan,” as defined in Section 3(37) of ERISA.

4.13    No Condemnation.  As of the date hereof (a) there are no pending or, to the Company’s Knowledge, threatened eminent domain, condemnation, expropriation, requisition or similar proceedings against any Property or any portion thereof (each, a “Condemnation”) that would have or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, and (b) none of Seller, the Company or any Company Subsidiary has received written notice that any Condemnation is contemplated.

4.14    Intellectual Property.  
(a)    Each of the Company, JV, JV OpCo, Newco and their respective Subsidiaries does not infringe, misappropriate or otherwise violate or conflict with the Intellectual Property of any other Person.  There is no Claim pending or, to the Company’s Knowledge, threatened against the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries concerning any of the foregoing, nor has any of them received any written notification that a license under any other Person’s Intellectual Property is or may be required to operate its respective business.
(b)    With respect to each item of Intellectual Property that is owned by any of the Company, JV, Newco and any of their respective Subsidiaries, such Intellectual Property is (i) owned free and clear of all exclusive licenses, non-exclusive licenses not granted in the ordinary course of business consistent with past practice, Liens (other than Permitted

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Liens), and any obligation to grant any of the foregoing, and (ii) valid, subsisting and enforceable.  No Person is engaging, or has engaged in the last six (6) years, in any activity that infringes, misappropriates or otherwise violates or conflicts with any of such Intellectual Property.  Each of the Company, JV, Newco and their respective Subsidiaries has taken all commercially reasonable measures to maintain, in all material respects, the confidentiality and value of all confidential Intellectual Property used or held for use in the operation of its respective business.

4.15    Environmental Matters.
(a)    The Company has made available to Buyer the environmental studies, investigations, reports, audits, assessments, licenses, permits and agreements set forth on Schedule 4.15 (collectively, the “Existing Environmental Reports”).  Except as set forth in the Existing Environmental Reports:  (i) (A) each of Seller and NRF OP SPV and the Company, JV, JV OpCo, Newco and their respective Subsidiaries is and, for the past two (2) years, has been in material compliance with all Environmental Laws which affect the business, properties or assets of the Company, JV, JV OpCo, Newco and their respective Subsidiaries, and (B) no written notice has been received by the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, or to the Company’s Knowledge, threatened against the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries alleging any material non-compliance with any such Environmental Laws; (ii) there has been no material release of Hazardous Substances by Seller or NRF OP SPV or the Company, JV, JV OpCo, Newco or their respective Subsidiaries, or, to the Company’s Knowledge, at, in, on, to, or from any Property, that requires any investigation, cleanup, remediation, or remedial or corrective action pursuant to Environmental Law, and none of Seller, NRF OP SPV or the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, within thirty-six (36) months prior to the date hereof, has made any report or disclosure to any Governmental Entity relating to the release or threatened release of Hazardous Substances to or from any Property; and (iii) there is no Legal Proceeding pending against (or to the Company’s Knowledge, threatened in writing against), the Company, JV, JV OpCo, Newco or their respective Subsidiaries arising under or relating to any Environmental Law, and neither the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries is subject to any outstanding Order arising under or relating to any Environmental Law, provided, that, Buyer, for the avoidance of doubt, acknowledges and agrees that the foregoing clauses (i) through (iii) are to the Company’s Knowledge with respect to the actions or operations of any Operator including any such actions or operations taken or failed to be taken on behalf of the Company or any of its Subsidiaries.
(b)    Except with respect to Section 4.8(b), this Section 4.15 constitutes the exclusive representations and warranties of the Company, JV and Newco with respect to compliance with or liabilities under Environmental Laws and other environmental matters.

4.16    Material Contracts.
(a)    Schedule 4.16(a) sets forth a list or description of each note, bond, mortgage, indenture, lease, sublease, license, purchase or sale order, contract, arrangement, commitment, understanding or agreement or other instrument or obligation (whether written or oral) (each, a “Contract”) to which Seller, NRF or NRF OP SPV or the Company, JV, JV OpCo,

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Newco or any of their respective Subsidiaries (and for purposes of subclause (xii) only, any Affiliate of Seller) is a party or by which any of their respective properties or assets are bound (collectively, the “Material Contracts”) which, as of the date of this Agreement:
(i)    obligates the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries to make non-contingent aggregate annual expenditures (other than principal and/or interest payments or the deposit of other reserves with respect to debt obligations) in excess of eighteen million Dollars ($18,000,000) and is not cancelable within ninety (90) days without penalty to the Company, JV, Newco or any of their respective Subsidiaries, except for any (A) Company Lease or any ground lease affecting any Property or (B) tenant reimbursements made pursuant to the applicable underlying Company Lease;
(ii)    contains any non-compete or exclusivity provisions with respect to any line of business or geographic area or during any period of time with respect to the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, or which restricts (or purports to restrict) the ability of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries from engaging in any line of business or competing in any line of business or with any Person or in any geographic area or during any period of time, in each case, in any line of business or geographic area that is material to the Company and the Company Subsidiaries, except for any Company Lease or any ground lease affecting any Property;
(iii)    constitutes Indebtedness (including any guarantee thereof) in an amount in excess of eighteen million Dollars ($18,000,000) or any letters of credit or similar instruments issued for the account of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries or mortgaging, pledging or otherwise placing a Lien securing obligations in excess of eighteen million Dollars ($18,000,000) on any portion of the assets of the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, including the Griffin Mortgage, other than any such agreement, indenture, letter of credit or instrument solely between or solely among the Company, JV, JV OpCo, Newco and wholly owned Company Subsidiaries;
(iv)    requires the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries to dispose of or acquire assets or properties (other than in connection with the expiration of a Company Lease or a ground lease affecting a Property or as may accrue in connection with a breach of any Contract) with a fair market value in excess of eighteen million Dollars ($18,000,000), or provides for any pending or contemplated merger, consolidation or similar business combination transaction involving the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries, except for any Company Lease or any ground lease affecting any Property;
(v)    relates to a joint venture, partnership, strategic alliance, limited liability company or similar arrangement, with a third party;
(vi)    constitutes Indebtedness of a Person (other than a Company Subsidiary) owed to the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries in an amount in excess of eighteen million Dollars ($18,000,000);

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(vii)    relates to the ongoing or scheduled development, construction or capital expenditures, in each case requiring aggregate payments by the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries in excess of eighteen million Dollars ($18,000,000);
(viii)    is a Material Company Lease;
(ix)    prohibits the payment of dividends or distributions in respect of the JV OpCo Interests, the JV HoldCo Interests, the Newco Interests or shares of the Company or any Company Subsidiary;
(x)    grants to any Person a right of first refusal, a right of first offer or an option to purchase, acquire, sell or dispose of any Property that, individually or in the aggregate, could involve amounts in excess of eighteen million Dollars ($18,000,000);
(xi)    contains “earn-out” or other similar contingent purchase price payment obligations, in each case that could result in payments, individually or in the aggregate in excess of five hundred thousand Dollars ($500,000); 
(xii)    relates to the provision of Asset Management Services to JV, JV OpCo, Newco, the Company or any of their respective Subsidiaries (such agreements, the “Asset Management Material Contracts”); or
(xiii)    relates to any outstanding written commitment to enter into any contract or agreement of the type described in subclauses (i) through (xiii) above.
Notwithstanding anything above in subclauses (i) through (xiv), “Material Contracts” shall not include any Contract that (A) is terminable upon thirty (30) days’ notice without penalty or premium, (B) will be fully satisfied at or prior to the Closing, (C) provides for aggregate payments by the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries of less than five million Dollars ($5,000,000) in each calendar year during the remaining term of such Contract, or (D) is a Tax Protection Agreement or ground lease.
(b)    Except as, individually or in the aggregate, has not had and would not reasonably be expected to have a Company Material Adverse Effect:
(i)    each Material Contract (other than the Asset Management Material Contracts) is (A) legal, valid and binding on any of Seller, NRF or NRF OP SPV or the Company, JV, JV OpCo, Newco and any of their respective Subsidiaries that is a party thereto and, to the Company’s Knowledge, each other party to such Material Contract and (B) enforceable against, and in full force and effect with respect to, any of Seller, NRF or NRF OP SPV or the Company, JV, JV OpCo, Newco and any of their respective Subsidiaries that is a party thereto and, to the Company’s Knowledge, the other parties thereto, except as may be limited by applicable Equitable Principles;
(ii)    each Asset Management Material Contract, is, to the Company’s Knowledge (A) legal, valid and binding on the parties thereto and (B) enforceable

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against and in full force and effect with respect to the parties thereto, except as may be limited by applicable Equitable Principles;
(iii)    no asset manager has made a claim for indemnification under any Asset Management Material Contract, other than with respect to advancement of expenses in respect of claims in which NRF or any of its Subsidiaries is also named as a party;
(iv)    none of Seller, NRF or NRF OP SPV or the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries that is a party thereto, nor, to the Company’s Knowledge, any other party thereto, is in material breach or violation of, or default under or otherwise delinquent in performance under, any Material Contract, and, to the Company’s Knowledge, each such other party thereto has performed in all material respects all obligations required to be performed by it under such Material Contract; and 
(v)    no event has occurred or not occurred through the action or inaction of Seller, NRF or NRF OP SPV or the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries or, to the Company’s Knowledge, any other party thereto, that with notice or lapse of time or both would constitute a material violation, breach, default or delinquency in performance under any Material Contract.  
(c)    None of Seller, NRF or NRF OP SPV or the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries or, to the Company’s Knowledge, any other party thereto, has received notice of any material breach, violation, default or delinquency in performance under any Material Contract, except for breaches, violations, defaults or delinquencies in performance that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.  The Material Contracts shall remain valid and binding in accordance with their terms following the consummation of the transactions contemplated by the Colony Merger Agreement.
(d)    The Company has made available to Buyer, prior to the execution of this Agreement, true and complete copies in all material respects of each written Material Contract and a written summary of each oral Material Contract.

4.17    Insurance.  The Company and the Company Subsidiaries maintain or cause to be maintained insurance with respect to all of the Properties with financially responsible insurers in such amounts and covering such risks which the Company, acting reasonably, believes are adequate in all material respects for the operation of its business.  All premiums due and payable on the insurance policies held by or on behalf of the Company and the Company Subsidiaries relating to the Properties have been paid and no notice of cancellation or termination has been received by the Company or any Company Subsidiary (or the Person that maintains such insurance policies on their behalf) with respect to any such policy.

4.18    Affiliated Transactions.  Except for Contracts entered into in connection with the Transactions (including the Pre-Closing Restructuring), Schedule 4.18 lists every Contract between JV, JV Opco, the Company, Newco or any of their respective Subsidiaries, on the one hand, and Seller or any Affiliate of Seller (other than the Company, JV, JV OpCo or Newco or any of their respective Subsidiaries), on the other.

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4.19    Financial Advisor.  No broker, investment banker, financial advisor or other Person, other than UBS Securities LLC, the fees and expenses of which will be paid by Seller, is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the Transactions based upon arrangements made by or on behalf of Seller, the Company or any of their respective Affiliates.

4.20    Disclaimer of any Representations Regarding Estimates and Projections.  In connection with Buyer’s investigation of the Healthcare Portfolio, Buyer has received certain projections, including projected statements of operating revenues and income from operations of the Healthcare Portfolio and certain business plan information.  Buyer acknowledges that there are uncertainties inherent in attempting to make such estimates, projections and other forecasts and plans and that whether any such projections are in fact achieved will depend upon factors and future events not within the control of the any member of the Seller Group or any of their respective Subsidiaries.  Buyer takes full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections and other forecasts and plans so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections and forecasts).  Accordingly, except for the representations and warranties set forth in Article III and this Article IV and any Transaction Document, no member of the Seller Group makes any representation or warranty with respect to such estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections and forecasts).  Buyer further acknowledges that the estimates and projections were compiled based only on unaudited data and operating information provided by the Company or the Company Subsidiaries (or managers of the Healthcare Portfolio), that neither the Seller Group (other than the Company) nor any Affiliate (other than the Company Subsidiaries) or Representative thereof has made an independent verification as to the accuracy or completeness thereof, or the assumptions and estimates therein, and that the presentation of such information does not reflect GAAP.

4.21    Limitations of Representations and Warranties.  Except for the representations and warranties set forth in Article III and this Article IV and any Transaction Document, neither the Company nor any other Person makes any express or implied representation or warranty with respect to the Company, JV, Newco, their respective Subsidiaries or the Healthcare Portfolio.  The Company hereby disclaims any other express or implied representations or warranties.  Except with respect to claims of Fraud and for the representations and warranties set forth in Article III and this Article IV and any Transaction Document, the Company hereby disclaims all liability and responsibility for any representation, warranty, opinion, projection, forecast, statement, memorandum, presentation, advice or information made, communicated or furnished (orally or in writing) to Buyer or its Affiliates or Representatives (including any such opinion, projection, forecast, statement, memorandum, presentation, advice or information made available in any electronic data room hosted by the Seller Group in connection with the Transactions).

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ARTICLE V 
 
REPRESENTATIONS AND WARRANTIES OF BUYER
Except as set forth on the Disclosure Schedule, Buyer represents and warrants to Seller as follows:

5.1    Organization.  Taikang Insurance Group Inc. owns, directly or indirectly, one hundred percent (100%) of the capital stock of Buyer, free and clear of Liens other than Liens imposed at Closing in connection with the funding of the loan under the Loan Agreements.  Buyer is a Hong Kong limited company duly organized, validly existing and in good standing under the Laws of its jurisdiction of formation.  Buyer has the requisite power and authority to own, lease or operate its properties and to carry on its business as now being conducted.  Buyer is duly qualified or licensed to do business and is in good standing (with respect to jurisdictions which recognize such concept) in each jurisdiction in which the nature of its business or the ownership, leasing or operation of its properties or assets makes such qualification or licensing necessary, except to the extent that the failure to be so qualified or licensed or to be in good standing would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Buyer to perform its obligations under this Agreement or the Transaction Documents to which it is a party. Buyer is not, directly or indirectly, controlled by or under the control of any state-owned or operated Persons.

5.2    Authorization of Agreement.  Buyer has taken all limited company action required to execute and deliver this Agreement and the Transaction Documents to which it is a party and to perform fully its obligations hereunder and thereunder.  This Agreement has been, and upon their execution the Transaction Documents to which Buyer is a party shall have been, duly executed and delivered by Buyer and, assuming that this Agreement and each such Transaction Document constitutes the legal, valid and binding obligation of the other parties hereto and thereto, this Agreement constitutes, and upon its execution each of the Transaction Documents to which Buyer is a party shall constitute, the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to applicable Equitable Principles.

5.3    Conflicts; Consents of Third Parties.  Assuming the making of the filings and the receipt of the consents described in Schedule 5.3, the execution and delivery by Buyer of this Agreement and the Transaction Documents to which it is a party, the performance by Buyer of this Agreement and the Transaction Documents to which it is a party in accordance with their respective terms, and the consummation of the Transactions, do not and will not, conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time or both) under, or give rise to a right of termination, cancellation or acceleration of any material contractual obligation under:
(a)    the Organizational Documents of Buyer;
(b)    any Contract or Permit to which Buyer is a party or otherwise bound; or

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(c)    any Law applicable to Buyer,
except, in the case of clauses (b) and (c), where such conflict, violation or default would not, and would not reasonably be expected to materially impair or delay the ability of Buyer to consummate the Transactions.

5.4    Legal Proceeding.  There is no Legal Proceeding pending against (or to Buyer’s Knowledge, threatened in writing against) Buyer or any of its Affiliates that would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the ability of Buyer to perform its obligations under this Agreement or the Transaction Documents to which it is a party.  Buyer is not subject to any outstanding Order which would, or would reasonably be expected to, materially impair or delay the ability of Buyer to consummate the Transactions.

5.5    Financial Advisor.  Except for fees and commissions that will be paid directly by Buyer, no Person retained by or on behalf of Buyer or any of its Affiliates and no other Person, by reason of any action of Buyer, is entitled to any brokerage commissions, finders’ fees or similar compensation in connection with the Transactions.

5.6    Purchase for Investment.  Buyer is purchasing the Purchased Interests for its own account for investment and not for resale or distribution in any transaction that would be in violation of the securities Laws of the United States of America or any state thereof, provided, for the avoidance of doubt, that, as an Affiliate of an asset management company, Buyer may use multiple accounts managed by Buyer or one of its Affiliates to purchase the Purchased Interests or otherwise in connection with the Transactions.  Buyer is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933.

5.7    Financial Ability.  Subject to receipt of the PRC Approvals, Buyer has, or will at Closing have, sufficient cash in Dollars readily available to enable it to consummate the Transactions, and there is not, nor will there be, any restriction on the use of such cash for such purpose. 

5.8    Sophisticated Party.  Buyer (a) is a sophisticated party with respect to the Purchased Interests, (b) is able to bear the financial risk associated with purchasing the Purchased Interests on the terms set forth in this Agreement, and (c) has such knowledge and experience in financial and business matters, and has made transactions of a similar nature, so as to be aware and capable of evaluating the merits and potential risks and uncertainties inherent in transactions of the type contemplated in this Agreement.

5.9    Compliance with Laws.  Buyer and each of its Affiliates has complied with and is in compliance with any Orders or Laws which could affect the Transactions, except for non-compliance which would not have, and would not be reasonably be expected to have, a material adverse effect on the ability of Buyer to perform its obligations under this Agreement or the Transaction Documents to which it is a party.

5.10    Investigation; Limitation on Representations and Warranties; Disclaimer of Other Representations and Warranties.  Buyer has conducted its own independent review and analysis of the business, operations, assets, technology, liabilities, results of operations, financial

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condition and prospects of the Company, JV and the Healthcare Portfolio and acknowledges that Buyer has been provided access to personnel, properties, premises and records related to the Healthcare Portfolio for such purposes.  In entering into this Agreement, Buyer has relied upon its independent investigation and analysis of the Company, JV, their respective Subsidiaries and the Healthcare Portfolio, and Buyer acknowledges and agrees that it has not been induced by and has not relied upon any representations, warranties or statements, whether express or implied, made by any member of the Seller Group, or any of their respective Affiliates, Subsidiaries, shareholders, controlling persons, trustees or Representatives that are not expressly set forth in Article III or Article IV of this Agreement or in a Transaction Document, whether or not such representations, warranties or statements were made in writing or orally.  Buyer acknowledges and agrees that, except for the representations and warranties expressly set forth in Article III and Article IV of this Agreement and the Transaction Documents, (a) the Seller Group makes no, and has not made, any representations or warranties relating to itself or its business, the Healthcare Portfolio or otherwise in connection with the Transactions and Buyer is not relying on any representation or warranty except for those expressly set forth in Article III and Article IV of this Agreement or in a Transaction Document, (b) no Person has been authorized by the Seller Group to make any representation or warranty relating to itself or its business, the Healthcare Portfolio or otherwise in connection with the Transactions, and if made, such representation or warranty must not be relied upon by Buyer as having been authorized by such party and (c) any estimates, projections, predictions, data, financial information, memoranda, presentations or any other materials or information provided or addressed to Buyer or any of its Representatives are not and shall not be deemed to be or include representations or warranties unless any such materials or information is the subject of an express representation or warranty set forth in Article IV of this Agreement or in a Transaction Document.

5.11    No Other Representations or Warranties.  Except for the representations and warranties set forth in this Article V, neither Buyer nor any other Person makes any express or implied representation or warranty with respect to Buyer.  Buyer hereby disclaims any other express or implied representations or warranties.

ARTICLE VI 
 
COVENANTS AND AGREEMENTS

6.1    Conduct of the Healthcare Portfolio Pending the Closing.
(a)    Between the date of this Agreement and the Closing Date, except as (i) set forth in Schedule 6.1, (ii) expressly contemplated or permitted by any other provision of this Agreement, (iii) required by Law or (iv) consented to in writing by Buyer, which consent shall not be unreasonably withheld, delayed or conditioned, each of the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries agrees to, and Seller shall cause each of the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries to, use its reasonable best efforts to conduct its business in the ordinary course of business and in a manner consistent with past practice, and each of the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries agrees to, and Seller shall cause each of the Company, JV, JV OpCo, Newco and each of their respective Subsidiaries to, use its reasonable best efforts to, (A) preserve substantially intact its existing material rights, assets and properties, (B) preserve substantially

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intact its business organization and (C) maintain and preserve intact its current relationships with material customers, suppliers, distributors, creditors and other Persons with which the Company, JV, JV OpCo, Newco or any of their respective Subsidiaries has significant business relations.  
(b)    Between the date of this Agreement and the Closing Date or the date, if any, on which this Agreement is terminated in accordance with Section 9.1, except as (i) set forth on Schedule 6.1, (ii) expressly required by or necessary to perform any of the Seller Group’s obligations under this Agreement, (iii) required by Law or (iv) consented to in writing by Buyer, which consent shall not be unreasonably withheld, delayed or conditioned, each of the Company, JV, Newco and each of their respective Subsidiaries agrees not to, and Seller shall cause the Company, JV, Newco and their respective Subsidiaries not to, (A) take or permit any action that, if taken after the Closing Date would constitute a “Major Decision” as such term is defined in the Newco LLC Agreement or (B) amend the Organizational Documents of the Company, JV, JV OpCo or Newco.
(c)    Notwithstanding the foregoing, subject to Sections 6.1(d) and 6.10(c), prior to the Closing, the Company, JV, JV OpCo, Newco and/or any of their respective Subsidiaries may use all available cash to (i) repay in the ordinary course of business any Indebtedness when due in accordance with its terms or (ii) declare or pay any dividends or other distributions with respect to the JV OpCo Interests, the JV HoldCo Interests, the Newco Interests or any equity interests of the Company or the Subsidiaries of the Company, provided, that, any dividends or other distributions declared with respect to the Newco Interests, the JV OpCo Interests, the JV HoldCo Interests or any equity interests of the Company or the Subsidiaries of the Company shall be paid prior to the Closing.
(d)    Between the Determination Time and the effective time of the consummation of the Transactions, each of the Company, JV, Newco and each of their respective Subsidiaries agrees not to, and Seller shall cause the Company, JV, Newco and their respective Subsidiaries not to, (i) declare or pay any dividends or other distributions with respect to the Newco Interests, the JV HoldCo Interests, the JV OpCo Interests or any equity interests of the Company or the Subsidiaries of the Company or JV, (ii) incur any Company Indebtedness or (iii) take any action outside of the ordinary course of business that will modify Lender Reserves or Working Capital in any way.

6.2    Efforts; Consents and Approvals.
(a)    Subject to the terms and conditions of this Agreement, Buyer and Seller shall use their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Law to consummate the Transactions as promptly as practicable, including (i) preparing and filing as promptly as practicable with any Governmental Entity all documentation to effect all necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents, (ii) obtaining and maintaining all approvals, consents, registrations, permits, authorizations and other confirmations required to be obtained from any Governmental Entity that are necessary, proper or advisable to consummate the Transactions and (iii) taking all actions as may be required by any such Governmental Entity to obtain such authorization.

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(b)    Buyer, on the one hand, and the Seller Group, on the other hand, shall, in connection with the efforts referenced in this Section 6.2 to obtain all authorizations for the Transactions under applicable competition or investment Law (collectively, the “Antitrust Laws”), including, for the avoidance of doubt, the PRC Approvals, use its reasonable best efforts to (i) cooperate in all respects with each other in connection with any filing or submission and in connection with any investigation or other inquiry, including any proceeding initiated by a private party, (ii) keep the other Party reasonably informed of any communication received by such Party from, or given by such Party to, any U.S. or foreign Governmental Entity and of any communication received or given in connection with any proceeding by a private party, in each case, regarding the Transactions, and (iii) permit the other Party to review any communication given by it to, and consult with each other in advance of any meeting or conference with any Governmental Entity or, in connection with any proceeding by a private party, with any other Person, and to the extent permitted by such applicable Governmental Entity or other Person, give the other Party the opportunity to attend and participate in such meetings and conferences.
(c)    In furtherance and not in limitation of the covenants of the Parties contained in Section 6.2(a), if any objections are asserted with respect to the Transactions under any Antitrust Law or if any suit or investigation is instituted (or threatened to be instituted) by any applicable Governmental Entity or any private party challenging the Transactions as violative of any Antitrust Law or which would otherwise prevent, impede or delay the consummation of the Transactions, Buyer and the Seller Group shall use their respective reasonable best efforts to cooperate with each other and resolve any such objections or suits so as to permit consummation of the Transactions.
(d)    In furtherance and not in limitation of the covenants of the Parties contained in Section 6.2(a) and Section 6.2(b), Buyer, on the one hand, and the Seller Group, on the other hand, shall:
(i)    make all appropriate filings required in connection with the PRC Approvals as promptly as practicable following the date hereof and in any event, no later than five (5) Business Days following the date hereof, and supply as promptly as practicable any additional information and documentary material that may be requested pursuant to applicable Law in connection with the PRC Approvals; 
(ii)    use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, and to assist and cooperate with the other Parties hereto in doing, all things necessary, proper or advisable to obtain the PRC Approvals as soon as practicable and to avoid any impediment to the consummation of the Transactions under any applicable Laws or Orders, including using reasonable best efforts to take all such actions as may be necessary to resolve such objections, if any, as any PRC Governmental Entity or Person may assert under applicable Laws or Orders with respect to the Transactions; and 
(iii)    in the event that Buyer is requested by a Governmental Entity to make a filing or submission to the Committee on Foreign Investment in the United States (“CFIUS”), (A) reasonably cooperate with each other in connection with any such filing or submission, (B) keep the other Party informed of any communication received by such Party from, or given by such Party to, CFIUS regarding the Transactions, and (C) permit the other

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Party to review any communication given by it to, and consult with each other in advance of any meeting or conference with CFIUS, and to the extent permitted by CFIUS, give the other Party the opportunity to attend and participate in such meetings and conferences.
(e)    The Parties shall reasonably cooperate with each other and use their respective reasonable efforts to take such actions as the other may reasonably request to obtain (i) any consents necessary or desirable in connection with the Transactions pursuant to any Material Contracts, or (ii) any other consents from any third parties (excluding, for the avoidance of doubt, any Governmental Entity) as may be reasonably required to consummate the Transactions, provided, that, notwithstanding the foregoing, Buyer shall not be required to incur any expenses or liabilities, including, without limitation, the incurrence of interest or the payment of additional fees or penalties, make any payment or expenditures or agree to any obligation, undertaking or limitation of rights in order to obtain the consents set forth in this Section 6.2(e); provided, further, that the consummation of the Transactions shall not be delayed by, or conditioned on, the receipt or failure to receive of any such consents.  For the avoidance of doubt, following the Closing, the Parties shall continue to reasonably cooperate with each other and use their respective reasonable efforts to take such actions as the other may reasonably request with respect to any of the consents set forth in this Section 6.2(e) that have not been received as of the Closing.

6.3    Pre-Closing Restructuring.  Subject to and upon the terms and conditions of this Agreement, prior to or at the Closing, Seller shall take, and shall cause the Company, NRF OP SPV, JV, JV OpCo, Newco and their respective Subsidiaries to take, such actions as are necessary to give effect to the Pre-Closing Restructuring.

6.4    Financing.  
(a)    Buyer shall (and shall cause each of its Affiliates to) use commercially reasonable efforts to as promptly as practicable after the date hereof, (i) secure the Debt Financing and execute the Loan Agreements and (ii) deliver the fully executed Letter of Credit to Seller or the Deposit Amount to the Escrow Agent, as applicable and in accordance with Section 2.2(b). 
(b)    Following the execution of the Loan Agreements, Buyer shall (i) as promptly as reasonably practicable provide Seller with the fully executed Loan Agreements, (ii) as promptly as reasonably practicable after the occurrence thereof notify Seller of any breach or default by any party to any Loan Document that is not curable prior to the Outside Date, (iii) notify Seller, as promptly as reasonably practicable after Buyer’s receipt of any written notice or other written communication from any Debt Financing Source with respect to any actual or threatened breach, default, termination or repudiation by such Debt Financing Source of its obligations or commitments under any Loan Document, and (iv) use commercially reasonable efforts to (and shall cause each of its Affiliates to use commercially reasonable efforts to) (A) maintain in effect the Debt Financing and the Loan Documents, (B) satisfy in all material respects on a timely basis all conditions applicable to Buyer set forth in the Loan Documents including, pledging or causing its Affiliates to pledge all collateral required under the Loan Documents and (C) enforce all rights of Buyer under the Loan Documents with respect to the

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funding of the Debt Financing Sources’ obligations to the extent it would be commercially reasonable to do so. 
(c)    In connection with the Debt Financing, (i) no member of the Seller Group nor any of their respective Affiliates shall be required to become subject to any obligations or liabilities with respect thereto, and (ii) nothing shall obligate any member of the Seller Group or any of their respective Affiliates to provide any certificates or declare or make any determinations with respect thereto. Buyer acknowledges and agrees that no member of the Seller Group nor any of their respective Affiliates shall have any responsibility for, or incur any liability to any Person under or in connection with, the Loan Documents or the Debt Financing and Buyer shall indemnify and hold harmless each member of the Seller Group and their respective Affiliates and Representatives from and against any and all Losses suffered or incurred by them in connection with the arrangement of the Debt Financing.

6.5    Public Announcements.  So long as this Agreement is in effect, neither Buyer nor any member of the Seller Group, nor any of their respective Affiliates, including after the consummation of the transactions contemplated by the Colony Merger Agreement, any successor entity of any of the foregoing, shall issue or cause the publication of any press release or other public announcement with respect to the Transactions or this Agreement or the Transaction Documents without the prior written consent of the other Party, unless such Party determines, after consultation with outside counsel, that it is required by applicable Law or by any listing agreement with or the listing rules of a national securities exchange or trading market or by the CIRC to issue or cause the publication of any press release or other announcement with respect to the Transactions or this Agreement or the Transaction Documents, in which event such Party shall provide a reasonable opportunity to the other Party to review and comment upon such press release or other public announcement and shall give due consideration to all reasonable additions, deletion or changes suggested thereto; provided, however, that each Party and their respective Affiliates may make statements that are not inconsistent with previous press releases, public disclosures or public statements made by Buyer or a member of the Seller Group in compliance with this Section 6.5.  Except to the extent modified by the foregoing provisions, the Confidentiality Agreement dated as of December 10, 2015, between NRF and Buyer (the “Confidentiality Agreement”) shall (i) prior to the occurrence of the Closing, remain in full force and effect, notwithstanding the execution and delivery, or any termination, of this Agreement and (ii) upon the Closing, be terminated.

6.6    Conveyance Taxes.  Buyer and the Seller Group will reasonably cooperate in the preparation, execution and filing of Tax Returns, questionnaires, applications or other documents regarding any real property transfer or gains, sale, use, value added and stamp Taxes, any recording, registration and other fees and similar Taxes (“Conveyance Taxes”) which become payable in connection with the Transactions. Conveyance Taxes payable in connection with the Transactions (other than the sale and purchase of the Purchased Interests hereunder) shall be the sole responsibility of the Company.  Conveyance Taxes, if any, payable solely as a result of the sale and purchase of the Purchased Interests hereunder shall be borne 50% by Seller and 50% by Buyer.

6.7    Expenses.  Except as otherwise specifically provided herein, Buyer, on the one hand, and Seller, on the other hand, shall bear their respective expenses incurred in 

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connection with the preparation, execution and performance of this Agreement and the Transactions, including all fees and expenses of agents, representatives, counsel and accountants.

6.8    Further Assurances.  Subject to the terms and conditions of this Agreement, each of the Parties shall use reasonable best efforts to take or cause to be taken all actions and to do or cause to be done all things reasonably necessary, proper or advisable under applicable Laws to consummate and make effective the Transactions, including (a) contesting any legal proceeding relating to the Transactions and (b) executing any additional instruments necessary to consummate the Transactions.

6.9    Managers.  Prior to or at the Closing, Seller shall take, and shall cause its Subsidiaries to take, such actions as are necessary and appropriate so that, effective as of the Closing, (i) the board of managers of Newco shall be comprised of the individuals set forth on Schedule 6.9(a) and (ii) the board of directors of JV shall be comprised of the individuals set forth on Schedule 6.9(b).

6.10    Casualty and Condemnation. 
(a)    If, prior to the Closing Date, a Property or any portion thereof suffers a Material Casualty or the Company or any Company Subsidiary receives a notice or the Seller Group obtains Knowledge of a Material Condemnation, Seller shall, or shall cause the Company and the Company Subsidiaries to, promptly (a) notify Buyer of that event and provide Buyer with details of the extent of the Material Casualty or Material Condemnation, (b) make and diligently pursue a claim under any insurance policy covering such Property with respect to such Material Casualty or Material Condemnation and keep Buyer apprised of any material developments concerning such claim, (c) with respect to any Property or any portion thereof that suffers a Material Condemnation, diligently pursue any claim or rights to a condemnation award or proceeds relating to such Property or portion thereof and (d) with respect to any Property or any portion thereof that suffers a Material Casualty, use any proceeds from any such insurance policy to repair any damage to such Property or portion thereof.
(b)    Buyer shall be bound to purchase the Purchased Interests for the Purchase Price (after taking into account the Equity Value Adjustments contemplated pursuant to Section 2.4) as required by the terms hereof without regard to the occurrence or effect of any such Casualty or Condemnation.
(c)    If, prior to the Closing, a Property or any portion thereof suffers a Casualty, the Company and/or any of its Subsidiaries shall retain any proceeds received from any insurance policy covering such Property or portion thereof and shall in no event declare or pay any dividends or other distributions with respect to any equity interests of the Company or the Subsidiaries of the Company in respect of such proceeds.

6.11    Advice of Changes  Seller (on behalf of the Seller Group) and Buyer will promptly advise each other of (a) any event to the Knowledge of either party which would render any representation or warranty contained in this Agreement, if made on or as of the date of the Closing, materially untrue or inaccurate, (b) any Effect that has or would reasonably be expected to have a Company Material Adverse Effect or (c) any failure of any member of the Seller Group

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or Buyer to materially comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder.  Notwithstanding the disclosure to Buyer or Seller, as applicable of any matter pursuant to this Section 6.11, the disclosing party shall not be relieved of any liability for, nor shall the providing of such information by the disclosing party to Buyer or Seller, as applicable, be deemed a waiver of, (i) the breach of any representation, warranty, covenant or agreement of any member of the Seller Group or Buyer contained in this Agreement or (ii) the related indemnification obligations of Seller or Buyer under Article VIII.

ARTICLE VII 
 
CLOSING

7.1    Closing.  The closing of the purchase and sale of the Purchased Interests (the “Closing”) shall take place on the Closing Date at the offices of Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York at 10:00 a.m. Eastern Time, or such earlier or later time on the Closing Date as may be agreed in writing by Seller and Buyer.

7.2    Conditions to Each Party’s Obligations to Effect the Closing.  The respective obligations of each Party to effect the Transactions will be subject to the satisfaction on or prior to the Closing Date of the following conditions, any and all of which may be waived in whole or in part by Buyer and Seller (on behalf of the Seller Group), as the case may be, to the extent permitted by applicable Law:
(a)    Governmental and Regulatory Approvals.  The consents, approvals and actions of, filings with, and notices to, any Governmental Entity set forth on Schedule 7.2(a) shall have been obtained or made and remain in full force and effect.
(b)    No Injunction or Restraint.  No preliminary or permanent injunction or Order issued by any court of competent jurisdiction or other Governmental Entity in PRC or a jurisdiction material to the business of the Healthcare Portfolio shall be in effect preventing or prohibiting the consummation of the Transactions.

7.3    Conditions to Obligations of the Seller Group.  The obligations of the Seller Group to effect the Transactions are also subject to the satisfaction or waiver by Seller on or prior to the Closing Date of each of the following additional conditions:
(a)    Representations and Warranties.  Each of the representations and warranties of Buyer set forth in this Agreement shall be true and correct in all respects at and as of the Closing Date, as though made on and as of the Closing Date (except to the extent that such representations and warranties are expressly limited by their terms to another date, in which case such representations and warranties shall be true and correct in all respects as of such other date), except where the failure of such representations and warranties to be true and correct (without giving effect to any “materiality” qualifications or exceptions set forth therein) would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of Buyer to perform its obligations under this Agreement or the Transaction Documents to which it is a party.

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(b)    Performance of Obligations.  Buyer shall have performed or complied in all material respects with all obligations (other than those set forth in Section 6.11) required to be performed or complied with by it under this Agreement at or prior to the Closing Date.
(c)    Closing Deliveries.  Buyer shall have made the deliveries required to be made by Buyer under Section 7.5(a).

7.4    Conditions to Obligations of Buyer.  The obligations of Buyer to effect the Transactions are also subject to the satisfaction or waiver by Buyer on or prior to the Closing Date of each of the following additional conditions:
(a)    Representations and Warranties.  (i) The representations and warranties of (A) Seller in Section 3.1 (Title to Purchased Interests) and (B) the Company in Sections 4.4(a) and (c)(i) (Capitalization; Subsidiaries) and 4.7(a)(ii) (Absence of Certain Changes) shall be true and correct in all respects at and as of the Closing Date, as though made on and as of the Closing Date (except to the extent that such representations and warranties are expressly limited by their terms to another date, in which case such representations and warranties shall be true and correct in all respects as of such date), (ii) the representations and warranties of (A) Seller in Sections 3.2 (Organization), 3.3 (Authorization of Agreement), 3.4(a)(i) (Conflicts) and 3.6 (Tax Status) and (B) the Company in Sections 4.1 (Organization), 4.2 (Authorization of Agreement), 4.3(a)(i) (Conflicts), 4.4(b), (c)(ii), (d) and (e)-(g) (Capitalization; Subsidiaries), 4.10(b) (Properties), and 4.19 (Financial Advisor) shall be true and correct in all material respects at and as of the Closing Date, as though made on and as of the Closing Date (except to the extent that such representations and warranties are expressly limited by their terms to another date, in which case such representations and warranties shall be true and correct in all material respects as of such date), except for such representations and warranties that are qualified by qualifications or exceptions as to “materiality” or “Company Material Adverse Effect”, in which case such representations shall be true and correct in all respects at and as of the Closing Date, and (iii) the other representations and warranties of members of the Seller Group set forth in this Agreement shall be true and correct in all respects at and as of the Closing Date, as though made on and as of the Closing Date (except to the extent that such representations and warranties are expressly limited by their terms to another date, in which case such representations and warranties shall be true and correct in all respects as of such other date), except where the failure of such representations and warranties to be true and correct (without giving effect to any “materiality” or “Company Material Adverse Effect” qualifications or exceptions set forth therein) would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.
(b)    Performance of Obligations.  The applicable members of the Seller Group shall have performed or complied in all material respects with all obligations (other than those set forth in Section 6.11) required to be performed or complied with by such members of the Seller Group under this Agreement at or prior to the Closing Date.
(c)    No Company Material Adverse Effect.  Since the date of this Agreement, no Company Material Adverse Effect shall have occurred and be continuing.

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(d)    Pre-Closing Restructuring Transactions.  Seller shall have provided evidence that the Pre-Closing Restructuring shall have been consummated in accordance with Exhibit A.
(e)    Financing.  Buyer shall have executed the Loan Agreements.
(f)    Closing Deliveries.  The Seller Group shall have made the deliveries required to be made by the Seller Group under Section 7.5(b).

7.5    Closing Deliveries.
(a)    Deliveries by Buyer to Seller.  At the Closing, Buyer shall deliver to Seller:
(i)    the Purchase Price by wire transfer of immediately available funds in Dollars to the Closing Account;
(ii)    the Buyer Capital Advance by wire transfer of immediately available funds in Dollars to the Closing Account;
(iii)    the Deposit Release Instruction executed by Buyer;
(iv)    the JV LLC Agreement executed by Buyer; 
(v)    the JV Letter Agreement executed by Buyer; and
(vi)    a certificate of Buyer, dated as of the Closing Date, and signed by an authorized officer of Buyer, in the form set forth on Exhibit E-1.
(b)    Deliveries by the Seller Group.  At the Closing, the Seller Group shall deliver to Buyer:
(i)    the Deposit Release Instruction executed by Seller;
(ii)    the JV LLC Agreement executed by NRF OP SPV;
(iii)    the JV Letter Agreement executed by NRF OP SPV;
(iv)    the Newco LLC Agreement executed by NRF OP SPV and JV OpCo;
(v)    the Capital Contribution Advance Guarantee executed by Seller;
(vi)    evidence of the issuance of the Purchased Interests to Buyer via book-entry format;

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(vii)    evidence of the appointment of the two (2) directors of each of the JV, JV OpCo and Newco to be designated by Buyer no later two (2) Business Days prior to the Closing, effective as of the Closing;
(viii)    a certificate signed by Seller, that Seller is not a “foreign person” as defined in Section 1445 of the Code;
(ix)    a certificate of Seller, dated as of the Closing Date, and signed by an authorized officer of the Company, in the form set forth on Exhibit E-2; and
(x)    a certificate of the Company, dated as of the Closing Date, and signed by an authorized officer of the Company, in the form set forth on Exhibit E-3.

ARTICLE VIII 
 
INDEMNIFICATION

8.1    Survival.  The representations and warranties of the Parties shall survive the Closing until the date that is thirty (30) days following Buyer’s receipt of audited financial statements of the Company and its Subsidiaries for the calendar year 2017 pursuant to Section 6.04 of the Newco LLC Agreement (such date, the “Survival Date”), except that (a) the Fundamental Representations (other than the representations and warranties set forth in Section 4.11(j) (Tax Matters)) shall survive indefinitely, and (b) the representations and warranties set forth in Sections 3.6 (Tax Status) and 4.11 (Tax Matters) shall survive the Closing and shall remain in full force until the date that is ninety (90) days after the expiration of the applicable statutes of limitations for any Taxes arising out of, or resulting from or relating to the inaccuracy of such representation or warranty (taking into account any extensions or waivers thereof).  The covenants and agreements of the Parties that are to be performed prior to the Closing shall survive the Closing until the Survival Date and those covenants and agreements of the Parties that are to be performed on or following the Closing shall survive, and thus a Claim may be brought in respect of a breach thereof, until the expiration of the applicable statute of limitations in respect of such post-Closing covenants.

8.2    Obligation of Seller to Indemnify.  
(a)    From and after the Closing Date, subject to the provisions and limitations in this Article VIII, Seller shall indemnify, defend and hold harmless Buyer and its directors, managers, members, officers, employees, Affiliates, agents and representatives (collectively, the “Buyer Indemnified Parties”), from and against all liabilities, Taxes, losses and damages and reasonable attorneys’ fees, court costs and other out-of-pocket expenses (collectively, “Losses”) suffered or incurred by the Buyer Indemnified Parties to the extent arising out of, or resulting from or relating to (i) the inaccuracy of any of the representations and warranties set forth in Article III, Article IV or made in any certificate delivered pursuant hereto when made or as of the Closing Date (or, in the case of any such representation or warranty that is limited by its terms to the date hereof or another date, the inaccuracy as of such date) (and, other than with respect to the representations and warranty contained in (A) Sections 4.5(c) (Financial Statements), 4.16(a)(ii) (Material Contracts), 4.10(e) (Data Tape) and 4.7(a)(ii) and

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(b) (Absence of Certain Changes) and (B) Section 4.8(a) (Compliance with Laws) solely with respect to any inaccuracy in such representation and warranty which arises during period between the date hereof and Closing, without giving effect to any “materiality” or “Company Material Adverse Effect” qualifications or exceptions set forth therein), (ii) the failure of any member of the Seller Group to perform or fulfill any covenant or agreement of such member of the Seller Group contained in this Agreement, (iii) any Income Taxes imposed on the Company or any Company Subsidiary with respect to any Pre-Closing Tax Period, (iv) the consummation of the transactions contemplated by the Colony Merger Agreement or (v) any liabilities or obligations of Seller or its Affiliates to the extent not related to the Healthcare Portfolio; provided, that, with respect to any Loss suffered or incurred directly or indirectly by the Company and only indirectly suffered by Buyer or any of its Affiliates as a member of JV, the term “Loss” shall mean the percent of such Loss equal to the Buyer’s indirect ownership percentage of Newco (which, at Closing, shall be the Buyer Ownership Percentage) at the time of such Loss.
(b)    The right to indemnification, reimbursement or other remedy based upon representations, warranties, covenants and agreements shall not be affected by any investigation conducted with respect to, or any knowledge actually acquired at any time, whether before or after the execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or agreement.

8.3    Obligation of Buyer to Indemnify.  From and after the Closing Date, subject to the provisions and limitations in this Article VIII, Buyer shall indemnify, defend and hold harmless Seller and its directors, managers, members, officers, employees, Affiliates, agents and representatives (collectively, the “Seller Indemnified Parties”), from and against all Losses to the extent arising out of, or resulting from or relating to (a) the inaccuracy of any of the representations and warranties set forth in Article V or made in any certificate delivered pursuant hereto when made or as of the Closing Date (or, in the case of any such representation or warranty that is limited by its terms to the date hereof or another date, the inaccuracy as of such date) or (b) the failure of Buyer to perform or fulfill any covenant or agreement of Buyer contained in this Agreement.

8.4    Certain Limitations.  Notwithstanding the provisions of this Article VIII, after the Closing, (a) the Buyer Indemnified Parties shall not be entitled to recover pursuant to Section 8.2(a)(i) (other than with respect to breaches of Fundamental Representations) until the Losses (excluding all Losses with respect to De Minimis Claims) relating thereto exceed, in the aggregate, Three Million Five Hundred Thousand Dollars ($3,500,000) (the “Threshold”), provided, that, the Buyer Indemnified Parties shall only be entitled to indemnification for the amount of such Losses in excess of the Threshold, (b) in no event shall the Buyer Indemnified Parties be entitled to recover pursuant to Section 8.2(a)(i) (other than with respect to breaches of Fundamental Representations) any amounts in excess of Thirty Five Million Dollars ($35,000,000) (the “Cap”); provided, that, the Cap shall be increased to Seventy Million Dollars ($70,000,000) (less any amounts recovered to which the Cap applies) with respect to indemnification for breaches of the representations and warranties set forth in Section 4.10(b) (Title to Properties), and (c) in no event shall the Buyer Indemnified Parties be entitled to recover pursuant to Section 8.2(a)(i) (other than with respect to breaches of Fundamental

54

Representations) for any single claim or aggregated claims arising out of substantially the same events or circumstances unless the amount of Losses attributable to such claim or aggregated claims arising out of substantially the same events or circumstances exceed $100,000 (“De Minimis Claims”).  Notwithstanding the foregoing, the maximum aggregate amount recoverable by the Buyer Indemnified Parties for Losses under this Agreement shall be limited to and shall not exceed the Purchase Price actually paid to and received by Seller.

8.5    Indemnification Procedure.
(a)    Any Buyer Indemnified Party or Seller Indemnified Party, as applicable (each, an “Indemnified Party”) shall, within the relevant limitation period provided in Section 8.1, promptly (and in any event within 30 days) give the indemnifying party (the “Indemnifying Party”) written notice (a “Claim Notice”) describing in reasonable detail the facts giving rise to any Claims for indemnification hereunder and shall include in the Claim Notice (if then known) the amount or method of computation of the amount of such Claim and a reference to the provision of this Agreement or any agreement, certificate or instrument delivered pursuant to this Agreement upon which such Claim is based; provided, that, a Claim Notice in respect of any action at law or in equity by or against a third party as to which indemnification will be sought shall be given promptly after the action or suit is commenced, provided, further, that any delay in the provision of, or the failure by an Indemnified Party to provide, a Claim Notice will not affect the Indemnified Party’s right to indemnification unless (and then solely to the extent) the Indemnifying Party is actually prejudiced by such delay or failure.
(b)    The Indemnifying Party shall have the right, at its own cost, to participate jointly in the defense of any Claim or demand in connection with which the Indemnified Party has claimed indemnification hereunder, and the Indemnifying Party may elect to take over the defense of such Claim or demand through counsel of its own choosing by so notifying the Indemnified Party within thirty (30) days of receipt of the Indemnified Party’s notice of such Claim or demand.  If the Indemnifying Party elects to take over the defense, then:
(i)    the Indemnified Party and the Indemnifying Party shall cooperate in the defense or prosecution of such Claim or demand, including by making available, at the Indemnifying Party’s expense (or, with respect to any reasonable and documented out-of-pocket expenses incurred by the Indemnifying Party, at the Indemnified Party’s expense, if it is ultimately determined that the Indemnified Party is not entitled to indemnification hereunder), all witnesses, pertinent records, materials and information in such party’s possession or under its control relating thereto as is reasonably necessary to the defense or prosecution of such Claim or demand and, in the case of the Indemnifying Party, by keeping the Indemnified Party reasonably informed as to the status of such matter and by providing a reasonable opportunity to the Indemnified Party to review and comment upon any pleading and giving due consideration to all reasonable additions, deletion or changes suggested thereto prior to the filing thereof;
(ii)    with respect to any issue involved in such Claim or demand, it shall have the sole right to settle or otherwise dispose of such Claim or demand on such terms as it, in its sole discretion, shall deem appropriate; provided, however, that the consent of the Indemnified Party to the settlement or disposition of any Claim or demand shall be required if such settlement or disposition (A) shall result in any liability to, or equitable relief

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against, the Indemnified Party, or (B) if the Indemnified Party is named in such Claim or demand, does not provide for a complete release of the Indemnified Party, which consent shall not be unreasonably withheld, delayed or conditioned; and
(iii)    the Indemnified Party shall have the right to participate jointly in the defense of such Claim or demand, but shall do so at its own cost not subject to reimbursement under Section 8.2 or 8.3, provided, that, the Indemnifying Party (to the extent the Indemnified Party is entitled to indemnification hereunder) shall bear the reasonable fees, costs and expenses of one counsel (and any specialized counsel, to the extent reasonably required) of the Indemnified Party, if such counsel determines, in writing, that a conflict of interest exists which makes representation by the same counsel as the Indemnifying Party inappropriate.
(c)    If the Indemnifying Party does not elect to take over the defense of a Claim or demand, then the Indemnified Party shall have the right, at the Indemnifying Party’s expense (to the extent the Indemnified Party is entitled to indemnification hereunder), to contest, compromise or settle such Claim or demand in the exercise of its reasonable judgment; provided, however, that the consent of the Indemnifying Party to the compromise or settlement of any Claim or demand shall be required if such compromise or settlement (A) shall result in any liability to, or equitable relief against, the Indemnifying Party, or (B) does not provide for a complete release of the Indemnifying Party or the JV or its Subsidiaries, as applicable, which consent shall not be unreasonably withheld, delayed or conditioned.
(d)    The parties shall use commercially reasonable efforts to mitigate and minimize Losses for which indemnification is available under this Article VIII and shall act in good faith in responding to, defending against, settling or otherwise dealing with such Claims.  Without limiting the generality of the foregoing, an Indemnified Party shall diligently pursue any available Claims against insurers who may have provided insurance coverage for any Losses and shall use its commercially reasonable efforts to pursue, or to assign to the Indemnifying Party, any Claims or rights it has against any Person that may reasonably be expected to reduce the Losses otherwise incurred by the Indemnified Party.  Each Party agrees that it shall cooperate on a commercially reasonable basis with the other Party in the defense of any Claim or action.

8.6    Measure of Indemnification.
(a)    The amount of the Indemnifying Party’s liability under this Agreement shall be determined after taking into account any applicable insurance proceeds received by the Indemnified Party including, in the case of Buyer, amounts received or recovered by the Company or any of the Company Subsidiaries under insurance policies or from other sources.
(b)    For all purposes of this Article VIII, “Losses” shall be net of any Tax benefit actually realized by such Indemnified Party or its Affiliates as a result of suffering such Losses.
(c)    Any Claim under Sections 8.2(a) or 8.3 required to be made on or prior to the expiration of the applicable survival period set forth in Section 8.1 and not made, shall be irrevocably and unconditionally released and waived by the Party seeking

56

indemnification with respect thereto.  It is the express intent of the Parties that, if the applicable period for a Claim pursuant to Sections 8.2(a) or 8.3 is shorter than the statute of limitations that would otherwise have been applicable to such Claim, then, by contract, the applicable statute of limitations with respect to such Claim shall be reduced to the shortened survival period contemplated hereby.  The Parties further acknowledge that the time periods set forth in Section 8.1 for the assertion of Claims under this Agreement are the result of arms’ length negotiation among the Parties and they intend for the time periods to be enforced as agreed by the Parties.
(d)    Notwithstanding anything to the contrary in this Agreement, any amounts payable pursuant to the indemnification obligations under this Article VIII shall be paid without duplication and in no event shall any Party hereto be indemnified under different provisions of this Agreement for Losses that have already been paid or otherwise taken into account under this Agreement.  Without limiting the generality of the foregoing, Buyer shall make no Claim for indemnification in respect of any matter that is considered or taken into account in the final determination of any adjustment of the Estimated Total Equity Value pursuant to Section 2.4.
(e)    IN NO EVENT SHALL ANY INDEMNIFYING PARTY BE LIABLE TO ANY INDEMNIFIED PARTY UNDER THIS ARTICLE VIII FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, LOST REVENUES, BUSINESS INTERRUPTION, COST OF CAPITAL OR LOSS OF BUSINESS REPUTATION OR OPPORTUNITY (BUT EXCLUDING, TO THE EXTENT REASONABLY FORESEEABLE BY THE PARTIES HERETO AS OF THE DATE HEREOF AND THE BASIS FOR SUCH LOSSES IS OF A RECURRING NATURE OR REPRESENTS A REDUCTION IN THE HISTORICAL CASH FLOW OR EARNINGS (INCLUDING BECAUSE OF AN INCREASE IN EXPENSES OR A DECREASE IN REVENUE) OF THE COMPANY OR THE COMPANY SUBSIDIARIES, WHICH REDUCTION WOULD REASONABLY BE EXPECTED TO REFLECT AN IMPAIRMENT OF THE COMPANY’S OR THE COMPANY SUBSIDIARIES’ FUTURE CASH FLOWS OR EARNINGS, DIMINUTION IN VALUE), FOR ANY BREACH OR DEFAULT UNDER, OR ANY ACT OR OMISSION ARISING OUT OF OR IN ANY WAY RELATING TO, THIS AGREEMENT OR THE TRANSACTIONS, UNDER ANY FORM OF ACTION WHATSOEVER, WHETHER IN CONTRACT OR OTHERWISE (OTHER THAN INDEMNIFICATION FOR AMOUNTS PAID OR PAYABLE TO THIRD PARTIES IN RESPECT OF ANY THIRD PARTY CLAIM AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION FOR WHICH INDEMNIFICATION HEREUNDER IS OTHERWISE REQUIRED).

8.7    Exclusivity of Indemnity.  Subject to the provisions of Sections 2.4, the indemnification provided in this Article VIII shall be the sole and exclusive remedy after the Closing Date for Losses available to the Buyer Indemnified Parties and the Seller Indemnified Parties under this Agreement for misrepresentation or breach of any of the representations, warranties, covenants and agreements contained herein or in any other certificate delivered by the Parties pursuant hereto or any right, claim or action arising under, out of or relating to this Agreement, the negotiation or execution thereof, or the Transactions.  Effective as of the

57

Closing, each Party expressly waives, releases and agrees not to make any claim against Seller or its Affiliates, in the case of Buyer, or Buyer or its Affiliates, in the case of any member of the Seller Group, except for indemnification claims made pursuant to this Article VIII, for the recovery of any costs or damages, whether directly or by way of contribution, or for any other relief whatsoever, under any applicable Laws, whether now existing or applicable or hereinafter enacted or applicable (including claims for breach of contract, failure of disclosure, tortious wrong or violation of securities Laws), provided, that, no Party shall be relieved or released from any liabilities or damages for Fraud.  For the avoidance of doubt, following the Closing, nothing in this Agreement will limit any remedies available to a Party under the JV LLC Agreement, the JV Letter Agreement or the Newco LLC Agreement after the Closing.  This Section 8.7 shall survive the Closing indefinitely.

8.8    Tax Treatment of Indemnity Payments.  The Parties agree to, unless otherwise prohibited by Law, (i) treat any indemnity payment made under this Agreement as an adjustment to the Purchase Price for all federal, state, local and foreign Tax purposes, and (ii) file all Tax Returns accordingly.

ARTICLE IX 
 
TERMINATION OF AGREEMENT

9.1    Termination.  This Agreement may not be terminated, except as follows:
(a)    by mutual agreement of Buyer and Seller;
(b)    by either Buyer or Seller, upon prior written notice, if the Closing shall not have been consummated on or before 11:59 pm New York time on March 31, 2017, provided, either Buyer or Seller may extend such date by a three (3) month period (such date, including if and as extended, the “Outside Date”) if the extending party is not in breach in any material respect of any of its obligations under this Agreement at the time of such extension; provided, however, that the Party whose conduct (including, in the case of Seller, the conduct of any member of the Seller Group) has been the cause of, or substantially resulted in, the failure of the Closing to have been consummated on or before the Outside Date may not be the terminating party;
(c)    by either Buyer or Seller, upon prior written notice, if any court of competent jurisdiction or other Governmental Entity in PRC or any jurisdiction material to the business of the Healthcare Portfolio shall have issued a final Order restraining, enjoining or otherwise prohibiting the consummation of the Transactions and such Order shall have become final and non-appealable; 
(d)    by Seller, if Buyer fails to consummate the Closing within five (5) Business Days of the date on which Closing is otherwise required to be consummated pursuant to Section 7.1;
(e)    by Seller, if Buyer shall have breached or failed to perform any representation, warranty, covenant or agreement set forth in this Agreement that would give rise to the failure of a condition set forth in Section 7.3(a) or 7.3(b), which breach either (i) is not 

58

curable prior to the Outside Date, or (ii) if curable prior to the Outside Date, has not been cured within the earlier of (A) thirty (30) calendar days after the receipt of notice thereof by Buyer from Seller or (B) three (3) Business Days before the Outside Date; provided, however, that the right to terminate this Agreement under this Section 9.1(e) shall not be available to Seller if any member of the Seller Group is in material breach of any representation, warranty, covenant or other agreement contained in this Agreement; 
(f)    by Buyer, if a member of the Seller Group shall have breached or failed to perform any representation, warranty, covenant or agreement set forth in this Agreement that would give rise to the failure of a condition set forth in Section 7.4(a) or 7.4(b), which breach either (i) is not curable prior to the Outside Date, or (ii) if curable prior to the Outside Date, has not been cured within the earlier of (A) thirty (30) calendar days after the receipt of notice thereof by Seller from Buyer or (B) three (3) Business Days before the Outside Date; provided, however, that the right to terminate this Agreement under this Section 9.1(f) shall not be available to Buyer if Buyer is in material breach of any representation, warranty, covenant or other agreement contained in this Agreement; or
(g)    by Seller, upon written notice at any time following December 8, 2016, if Buyer shall not have (i) delivered to Seller the fully executed Loan Agreements or (ii) delivered (A) to Seller a fully executed and enforceable Letter of Credit for the benefit of Seller or (B) the Deposit Amount to the Escrow Agent in accordance with the terms of the Escrow Agreement.

9.2    Effect of Termination.
(a)    Survival After Termination.  If this Agreement terminates pursuant to Section 9.1 and the Transactions are not consummated, this Agreement shall become null and void and have no further force or effect, all obligations of the parties hereunder shall terminate and there shall be no further liability or obligations hereunder on the part of the parties hereto, except that notwithstanding anything in this Agreement to the contrary, the provisions of Section 6.4(c) (Financing), Section 6.5 (Public Announcements), Section 6.7 (Expenses), Section 8.7 (Exclusivity of Indemnity), this Section 9.2 and Article X (Miscellaneous) shall survive any termination of this Agreement; provided, that, notwithstanding anything in this Agreement to the contrary but subject to Section 9.2(e)(iii), no Party shall be relieved or released from any liabilities or damages for Fraud or that arise out of the Willful Breach of any provision of this Agreement prior to termination hereof.
(b)    Escrow; Letter of Credit.  
(i)    If this Agreement is terminated by Seller pursuant to Section 9.1(d) or Section 9.1(e), then, the Seller shall have, as Seller’s sole and exclusive remedy, the right to (A) receive the Deposit Amount from the Escrow Agent as liquidated damages (and in such circumstances Buyer shall, if applicable, join with Seller in the Deposit Release Instruction to the Escrow Agent; provided, that, if Buyer does not deliver an executed Deposit Release Instruction within five (5) Business Days of such termination, Seller shall be permitted to deliver the Deposit Release Instruction to the Escrow Agent without Buyer’s countersignature and the Escrow Agent shall be authorized to release the Deposit Amount to

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Seller pursuant to such Deposit Release Instruction) or (B) draw on the Letter of Credit for the amount of the Deposit Amount as liquidated damages, as applicable.  Buyer and Seller agree that Seller’s damages are difficult to ascertain and that in the event Seller terminates this Agreement in accordance with Section 9.1 and is entitled to receive the Deposit Amount pursuant to this Section 9.2(b)(i), the Deposit Amount is a fair approximation of the Seller’s damages.
(ii)    If this Agreement is terminated by Buyer pursuant to Section 9.1(f) and prior to such termination Buyer shall have entered into the Loan Agreement and (x) delivered to Seller the Letter of Credit or (y) delivered the Deposit Amount to the Escrow Agent, then (A) Buyer shall have the Deposit Amount returned to it by the Escrow Agent (and in such circumstances Seller shall join with Buyer in the Deposit Release Instruction to the Escrow Agent; provided, that, if Seller does not deliver an executed Deposit Release Instruction within five (5) Business Days of such termination, Buyer shall be permitted to deliver the Deposit Release Instruction to the Escrow Agent without Seller’s countersignature and the Escrow Agent shall be authorized to release the Deposit Amount to Buyer pursuant to such Deposit Release Instruction) (if applicable), (B) as promptly as practicable (but in no event later than five (5) Business Days from the date of such termination), Buyer shall receive, as Buyer’s sole and exclusive remedy (subject to subclauses (A) and (C) of this Section 9.2(b)(ii)), the Termination Fee from the Seller as liquidated damages and (C) Buyer shall have the right to terminate the Letter of Credit (if applicable).  Buyer and Seller agree that Buyer’s damages are difficult to ascertain and that in the event Buyer terminates this Agreement in accordance with Section 9.1 and is entitled to receive the Deposit Amount pursuant to this Section 9.2(b)(ii), the Termination Fee is a fair approximation of the Buyer’s damages.
(iii)    If this Agreement is terminated (A) pursuant to Section 9.1(a) or Section 9.1(g) or (B) by either Seller or Buyer pursuant to Section 9.1(b) or Section 9.1(c), in respect of matters where the Deposit Amount or the Expense Reimbursement Amount is not payable to Seller pursuant to Section 9.2(b)(i) or Section 9.2(c)(i), respectively, then Buyer shall have the right to have the Deposit Amount returned to it by the Escrow Agent (and in such circumstances Seller shall join with Buyer in the Deposit Release Instruction to the Escrow Agent; provided, that, if Seller does not deliver an executed Deposit Release Instruction within five (5) Business Days of such termination, Buyer shall be permitted to deliver the Deposit Release Instruction to the Escrow Agent without Seller’s countersignature and the Escrow Agent shall be authorized to release the Deposit Amount to Buyer pursuant to such Deposit Release Instruction) or to terminate the Letter of Credit, as applicable.
(iv)    If this Agreement is terminated by either Seller or Buyer pursuant to Section 9.1(b) or Section 9.1(c), in respect of matters where the Expense Reimbursement Amount is payable to Seller pursuant to Section 9.2(c)(i), then, upon (and subject to) receipt of the Expense Reimbursement Amount by Seller, Buyer shall have the right to have the remainder of the Deposit Amount returned to it by the Escrow Agent (and in such circumstances Seller shall join with Buyer in the Deposit Release Instruction to the Escrow Agent provided, that, if Seller does not deliver an executed Deposit Release Instruction within five (5) Business Days of such termination, Buyer shall be permitted to deliver the Deposit Release Instruction to the Escrow Agent without Seller’s countersignature and the Escrow Agent shall be authorized to release the remainder of the Deposit Amount to Buyer pursuant to such Deposit Release Instruction) or to terminate the Letter of Credit, as applicable.

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(c)    If this Agreement is terminated by either Seller or Buyer pursuant to Section 9.1(b) or Section 9.1(c):
(i)    solely with respect to (A) in the case of Section 9.1(b), if the failure to close prior to the Outside Date arises from or is related to the failure of Buyer to obtain any of the PRC Approvals prior to the Outside Date, or (B) in the case of Section 9.1(c), an Order from a Governmental Entity in the PRC, and prior to such termination Buyer shall have entered into the Loan Agreements and (x) delivered or cause to be delivered to Seller a fully executed Letter of Credit or (y) delivered the Deposit Amount to the Escrow Agent, then Seller shall have, as Seller’s sole and exclusive remedy, the right to (A) receive the Expense Reimbursement Amount from the Escrow Agent as liquidated damages (and in such circumstances Buyer shall, if applicable, join with Seller in the Deposit Release Instruction to the Escrow Agent; provided, that, if Buyer does not deliver an executed Deposit Release Instruction within five (5) Business Days of such termination, Seller shall be permitted to deliver the Deposit Release Instruction to the Escrow Agent without Buyer’s countersignature and the Escrow Agent shall be authorized to release the Expense Reimbursement Amount to Seller pursuant to such Deposit Release Instruction) or (B) draw on the Letter of Credit for the amount of the Expense Reimbursement Amount as liquidated damages, as applicable.  
(ii)    solely with respect to (A) in the case of Section 9.1(b), if the failure to close prior to the Outside Date arises from or is related to the failure of Seller to obtain any Governmental Approval required on the part of Seller or any of its Affiliates to consummate the Transactions prior to the Outside Date (which, for the avoidance of doubt, the Parties acknowledge, does not include any of the PRC Approvals), or (B) in the case of Section 9.1(c), an Order from a Governmental Entity in the United States or the United Kingdom, then, as promptly as practicable (but in no event later than five (5) Business Days from the date of such termination), and prior to such termination Buyer shall have entered into the Loan Agreement and (x) delivered or cause to be delivered to Seller a fully executed Letter of Credit or (y) delivered the Deposit Amount to the Escrow Agent, then Seller shall pay or cause to be paid, to Buyer by wire transfer of immediately available funds to the account or accounts designated in writing by Buyer, as Buyer’s sole and exclusive remedy, the Expense Reimbursement Amount in Dollars as liquidated damages.
Buyer and Seller agree that Seller’s and Buyer’s damages are difficult to ascertain and that in the event Seller or Buyer terminates this Agreement in accordance with Section 9.1 and is entitled to receive the Expense Reimbursement Amount pursuant to this Section 9.2(c), the Expense Reimbursement Amount is a fair approximation of the Seller’s or Buyer’s damages, as applicable.
(d)    Notwithstanding anything to the contrary in this Agreement but solely for the purposes of Section 9.2(b)(i) and Section 9.2(c), the Deposit Amount payable to Seller pursuant to Section 9.2(b)(i) and Section 9.2(c) shall be (i) the Deposit Amount in the event that the Buyer exercises its option to cause the fully executed Letter of Credit to be provided under Section 2.2(b) (in which case the remaining provisions of this Section 9.2(d) shall not apply), and (ii) an amount equal to the lesser of (A) the Deposit Amount (the “Base Amount”) and (B) the maximum amount, if any, that can be paid to Seller without causing Seller to fail to meet the requirements of Section 856(c)(2) and (3) of the Code (the “REIT 

61

Requirements”) for such year determined as if the payment of such amount did not constitute Qualifying Income, as determined by independent accountants to Seller (the amount determined by this clause (ii)), in the event that the Buyer exercises its option to deliver the Deposit Amount to the Escrow Agent under Section 2.2(b) (in which case the remaining provisions of this Section 9.2(d) shall apply).  Notwithstanding the foregoing, to the extent Seller receives Tax Guidance providing that Seller’s receipt of the Base Amount would either constitute Qualifying Income or would be excluded from gross income within the meaning of the REIT Requirements, the Deposit Amount shall, for purposes of Section 9.2(b)(i) and Section 9.2(c) be an amount equal to the Base Amount, and the Escrow Agent shall, upon receiving notice that Seller has received the Tax Guidance, release to Seller the unpaid Base Amount within two (2) Business Days.  In the event that Seller is not able to receive the full Base Amount due to the above limitations, the Escrow Agent shall retain the unpaid Base Amount pursuant to the terms of the Escrow Agreement and shall not release any portion thereof to Seller unless and until Seller receives either one or a combination of the following once or more often:  (x) a letter from Seller’s independent accountant indicating the maximum amount that can be paid at that time to Seller without causing Seller to fail to meet the REIT Requirements (calculated as described above) or (y) Tax Guidance, in either of which events, the Escrow Agent shall release to Seller the lesser of the unpaid Base Amount or the maximum amount stated in the letter referred to in (x) above, within two (2) Business Days after the Escrow Agent has been notified thereof.  The obligation of Escrow Agent to pay any unpaid portion of the Deposit Amount shall terminate on December 31 following the date which is five (5) years from the date of this Agreement.  Amounts remaining in escrow after the obligation of the Escrow Agent to release the Deposit Amount to Seller terminates shall be returned to Buyer.  “Qualifying Income” shall mean income described in Sections 856(c)(2)(A)-(H), 856(c)(3)(A)-(I) and 856(c)(5)(J)(ii) of the Code.  “Tax Guidance” shall mean a reasoned opinion from outside counsel or a ruling from the IRS.
(e)    Exclusive Remedy.
(i)    Buyer and the Seller Group acknowledge that (A) the liquidated damages and other provisions of this Section 9.2 are an integral and material part of the Transactions, (B) without these agreements, Buyer and the Seller Group would not enter into this Agreement and (C) any amount payable pursuant to this Section 9.2 does not constitute a penalty.  
(ii)    Notwithstanding anything to the contrary in this Agreement, in the event that this Agreement is terminated and (A) Seller has the right to receive (x) the Deposit Amount pursuant to Section 9.2(b)(i) or (y) the Expense Reimbursement Amount pursuant to Section 9.2(c)(i) or (B) Buyer has the right to receive (x) the Termination Fee pursuant to Section 9.2(b)(ii) or (y) the Expense Reimbursement Amount pursuant to Section 9.2(c)(ii), Seller’s right to receive the Deposit Amount or Expense Reimbursement Amount, or Buyer’s right to receive the Termination Fee or Expense Reimbursement Amount, as applicable, shall be the sole and exclusive remedy of Seller and its Affiliates against Buyer and its Affiliates or of Buyer and its Affiliates against Seller and its Affiliates, as applicable, for any loss suffered as a result of any breach of this Agreement (other than any provisions that survive termination of this Agreement pursuant to Section 9.2(a)), or the failure of the Transactions to be consummated, whether in equity or at law, in contract, in tort or otherwise, and upon such termination and Seller’s receipt of the Deposit Amount or Expense Reimbursement Amount, or Buyer’s receipt

62

of the Termination Fee or Expense Reimbursement Amount, as applicable, none of Buyer or its Affiliates or Seller or its Affiliates, as applicable, shall have any further liability or obligation, including consequential, indirect or punitive damages, relating to or arising out of any breach of this Agreement, or the failure of the Transactions to be consummated, or in respect of any oral representation made or alleged to be have been made in connection herewith or therewith, whether in equity or at law, in contract, in tort or otherwise.  For the avoidance of doubt, the foregoing shall not impair the rights of the parties to obtain any remedies pursuant to the Confidentiality Agreement or Seller’s right to sue for damages.
(iii)    Notwithstanding anything to the contrary in this Agreement, in the event that this Agreement is terminated and prior to such termination Buyer shall not have delivered or cause to be delivered to Seller a fully executed Letter of Credit or delivered the Deposit Amount to the Escrow Agent, neither Buyer or its Affiliates, on the one hand, nor Seller or its Affiliates, on the other, shall have any remedy against the other for any loss suffered as a result of any breach of this Agreement or the failure of the Transactions to be consummated, whether in equity or at law, in contract, in tort or otherwise, including with respect to the right to receive the Deposit Amount, the Termination Fee or the Expense Reimbursement Amount, as applicable.

ARTICLE X 
 
MISCELLANEOUS

10.1    Dispute Resolution; Venue.
(a)    Any claim, controversy or dispute arising out of or relating to this Agreement or the Transactions shall be determined by arbitration administered by the International Chamber of Commerce (“ICC”) and resolved in accordance with the Rules of Arbitration of the ICC in force at the relevant time as may be amended by this Section 10.1 (the “Rules”).  The place of arbitration shall be New York City, New York, USA.  The official language of the arbitration shall be English and the tribunal shall consist of three arbitrators (each, an “Arbitrator”).  The claimant(s), irrespective of number, shall nominate jointly one Arbitrator; the respondent(s), irrespective of number, shall nominate jointly one Arbitrator, and a third Arbitrator will be nominated jointly by the first two Arbitrators and shall serve as chairman of the arbitration tribunal.  In the event the claimant(s) or respondent(s) or the first two Arbitrators shall fail to nominate or agree the joint nomination of an Arbitrator or the third Arbitrator within the time limits specified by the Rules, such Arbitrator shall be appointed promptly by the ICC.  The arbitration tribunal shall have no authority to award punitive or punitive-type damages.  The award of the arbitration tribunal shall be final and binding upon the disputing parties.  Any party to an award may apply to any court of competent jurisdiction for enforcement of such award and, for purposes of the enforcement of such award, the Parties irrevocably and unconditionally submit to the jurisdiction of any court of competent jurisdiction and waive any defenses to such enforcement based on inconvenient forum.  Each Party expressly consents and submits to the jurisdiction of any State or Federal court in the County of New York, State of New York, in connection with, arising out of or relating to any arbitration hereunder and waives and agrees not to assert, by way of motion, as a defense or otherwise, in any such

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proceeding, that it is not subject personally to the jurisdiction of such court or that the proceeding is brought in an inconvenient forum, or that the venue of the proceeding is improper.
(b)    Notwithstanding the foregoing, the Parties hereby consent to and agree that in addition to any recourse to arbitration as set out in this Section 10.1, any Party may, to the extent permitted under the rules and procedures of the ICC, seek an interim injunction or other form of relief from the ICC as provided for in its Rules.  Such application shall also be governed by, and construed in accordance with, the laws of the State of New York.
(c)    By agreeing to arbitration, (i) the Parties do not intend to deprive any court of competent jurisdiction of its ability to issue any form of provisional or equitable remedy, including but not limited to a preliminary injunction, injunction, action for specific performance or attachment in aid of the arbitration, or any interim or conservatory measure and (ii) a request for a provisional remedy or interim or conservatory measure by a Party to a court shall not be deemed a waiver of this agreement to arbitrate.

10.2    Notices.  Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, or (b) reputable overnight delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d) legible facsimile transmission or as a PDF or similar attachment to an electric mail transmission.  Any such notice shall be sent to the intended addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee shall have designated by written notice sent in accordance herewith, and shall be deemed to have been given either at the time of personal delivery, or, in the case of expedited delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the case of facsimile transmission or by electronic mail attachment, as of the date of the facsimile transmission or electronic mail.  Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to this Agreement shall be as follows:

(a)    if to Buyer, to:
Taikang Asset Management Co., Ltd. 
10/F, Taikang Life Building
156 Fuxingmennei Street
Xicheng District
Beijing 100031, China 
Attention:    Zuyu Tan
Yan He
Lin Xu
		
	Email:
	tanzy02@taikangamc.com.cn

heyan21@taikangamc.com.cn
xulin16@taikangamc.com.cn

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with copies (which shall not constitute notice) to:
Shearman & Sterling LLP 
599 Lexington Avenue 
New York, New York 10022 
Attention:    John A. Marzulli, Jr., Esq. 
Stephanie Tang, Esq. 
Lisa M. Brill, Esq.
		
	Facsimile:
	(646) 848-8590

		
	Email:
	jmarzulli@shearman.com

stephanie.tang@shearman.com 
lbrill@shearman.com

(b)    if to any member of the Seller Group, to:
c/o NorthStar Realty Finance Corp.  
399 Park Avenue 
New York, New York 10022 
Attention:    Jonathan Langer
Legal Department
		
	Email:
	langer@nsamgroup.com

legal@nsamgroup.com
with copies (which shall not constitute notice) to:
Paul, Weiss, Rifkind, Wharton & Garrison LLP 
1285 Avenue of the Americas 
New York, NY 10019-6064 
Attention:    Robert B. Schumer, Esq.
Harris B. Freidus, Esq
Ellen N. Ching, Esq.
		
	Facsimile:
	(212) 492-0097

		
	Email:
	rschumer@paulweiss.com 

hfreidus@paulweiss.com 
eching@paulweiss.com

10.3    Entire Agreement.  This Agreement together with the Confidentiality Agreement, the Transaction Documents and any certificates executed in connection with the consummation of the Transactions, contain the entire agreement among the parties with respect to the sale and purchase of the Purchased Interests and supersede all prior and contemporaneous agreements, negotiations, correspondence, undertakings and communications of the Parties or their representatives, written or oral, with respect thereto.  The Parties have voluntarily agreed to define their rights, liabilities and obligations respecting the subject matter hereof exclusively in contract pursuant to the express terms and provisions of this Agreement and the Parties expressly disclaim that they are owed any duties or are entitled to any remedies not expressly set forth in this Agreement.  Furthermore, the Parties each hereby acknowledge that this Agreement embodies the justifiable expectations of sophisticated parties derived from arm’s-length

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negotiations; the parties specifically acknowledge that no Party has any special relationship with another Party that would justify any expectation beyond that of ordinary parties in an arm’s-length transaction.

10.4    Waivers and Amendments.  This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by Buyer and Seller (on behalf of any member of the Seller Group) or, in the case of a waiver, by the Party waiving compliance.  No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other such right, power or privilege.

10.5    Governing Law.  This Agreement and all claims and causes of action arising out of the negotiation and execution of this Agreement shall be governed by and construed in accordance with the Laws of the State of New York without regard to any conflict of Laws rules thereof that might indicate the application of the Laws of any other jurisdiction.

10.6    Binding Effect; Assignment.  
(a)    This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.  Except as provided in Section 10.6(c), this Agreement is not assignable by any Party without the prior written consent of the Seller, in the case of Buyer, or Buyer, in the case of any member of the Seller Group.  Notwithstanding the foregoing, Buyer may assign this Agreement to one or more of its Affiliates; provided, that, any such assignment shall not relieve Buyer of any of its obligations hereunder; provided, further, that Buyer shall not make any assignment which could delay the receipt of any PRC Approvals or affect Buyer’s ability to rely on any PRC Approvals obtained prior to such assignment.
(b)    Subject to the terms of the applicable Side Letter, this Agreement shall be effective on the date and upon completion of the recordal process with the NDRC in accordance with PRC laws (such date, the “Effective Date”).  
(c)    Notwithstanding anything in this Agreement to the contrary, Seller (determined as of the date hereof) shall have the right to sell, assign or transfer all or a portion of its JV HoldCo Interests and its rights with respect thereto hereunder to a wholly-owned Subsidiary for purposes of effecting steps 2, 3 and 5 of the Pre-Closing Restructuring, as set forth in Exhibit A hereto.

10.7    Severability of Provisions.  If any provision or any portion of any provision of this Agreement shall be held invalid or unenforceable, the remaining portion of such provision and the remaining provisions of this Agreement shall not be affected thereby.  If the application of any provision or any portion of any provision of this Agreement to any Person or circumstance shall be held invalid or unenforceable, the application of such provision or portion of such provision to Persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby.

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10.8    Disclosure Schedule.  Any disclosure in any section of the disclosure schedule delivered by the Company to Buyer on the date hereof concurrently with the entry into this Agreement (the “Disclosure Schedule”) shall be deemed disclosed with respect to any other Section of this Agreement (in addition to the Section referenced in such schedule) to the extent that it is reasonably apparent from the wording of such disclosure that such disclosure is applicable to such other Section).

10.9    Counterparts.  This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts together shall constitute one and the same instrument.  Each counterpart may consist of a number of copies hereof each signed by less than all, but together signed by all, of the parties hereto.  Facsimile signatures or signatures received as a pdf attachment to electronic mail shall be treated as original signatures for all purposes of this Agreement.

10.10    No Personal Liability.  This Agreement (and each agreement, certificate and instrument delivered pursuant hereto) shall not create or be deemed to create or permit any personal liability or obligation on the part of any partner, member, officer, director, employee, agent, Representative or investor of any Party hereto, except as expressly set forth herein.

10.11    No Third Party Beneficiaries.  Except as otherwise provided in Section 6.4(c) (Financing), Article VIII (Indemnity) and Section 10.10 (No Personal Liability), no provision of this Agreement is intended to, or shall, confer any third party beneficiary or other rights or remedies upon any Person other than the Parties hereto.
[Remainder of page intentionally left blank]

67

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
	
		
	DERWOOD LIMITED

	 

	 
	 

	By:
	/s/ Timothy Zhang

	 
	Name: Timothy Zhang

	 
	Title: Director

	
		
	 
	 

	By:
	/s/ Yan He

	 
	Name: Yan He

	 
	Title: Director

	
		
	NORTHSTAR REALTY FINANCE LIMITED PARTNERSHIP

	 

	By:
	/s/ Jonathan Langer

	 
	Name: Jonathan Langer

	 
	Title: Chief Executive Officer

	
		
	NORTHSTAR HEALTHCARE JV HOLDINGS, LLC

	 

	By:
	/s/ Jonathan Langer

	 
	Name: Jonathan Langer

	 
	Title: Chief Executive Officer

	
		
	NORTHSTAR TK HEALTHCARE REIT, LLC

	 

	By:
	/s/ Jonathan Langer

	 
	Name: Jonathan Langer

	 
	Title: Chief Executive Officer

	
		
	NORTHSTAR TK HEALTHCARE OPERATING COMPANY LLC

	 

	By:
	/s/ Jonathan Langer

	 
	Name: Jonathan Langer

	 
	Title: Chief Executive Officer

[Signature Page 1 of 2 to Purchase and Sale Agreement]

	
		
	NORTHSTAR HEALTHCARE JV, LLC

	 

	By:
	/s/ Jonathan Langer

	 
	Name: Jonathan Langer

	 
	Title: Chief Executive Officer

	
		
	NRFC HEALTHCARE HOLDING COMPANY, LLC

	 

	By:
	/s/ Jonathan Langer

	 
	Name: Jonathan Langer

	 
	Title: Chief Executive Officer

[Signature Page 2 of 2 to Purchase and Sale Agreement]

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