Document:

Base Indenture

 Exhibit 4.1 
  
  
  
 FLOTEK INDUSTRIES, INC. 
 THE
GUARANTORS PARTY HERETO 
 AND 
 AMERICAN STOCK TRANSFER & TRUST COMPANY 
 Trustee 
  
  
 INDENTURE 
 DATED AS OF FEBRUARY 14, 2008 
  
  
 SENIOR DEBT SECURITIES 
  
  
  

 FLOTEK INDUSTRIES, INC. 
 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939, AS AMENDED, 
 AND
INDENTURE, DATED AS OF FEBRUARY 14, 2008 
  

			
	 TRUST INDENTURE ACT SECTION
	  	 INDENTURE SECTION

	 Section 310(a)(1)
	  	6.9
	 (a)(2)
	  	6.9
	 (a)(3)
	  	Not Applicable
	 (a)(4)
	  	Not Applicable
	 (a)(5)
	  	6.9
	 (b)
	  	6.8
		
	 Section 311
	  	6.13
		
	 Section 312(a)
	  	7.1, 7.2(a)
	 (b)
	  	7.2(b)
	 (c)
	  	7.2(c)
		
	 Section 313(a)
	  	7.3
	 (b)
	  	*
	 (c)
	  	*
	 (d)
	  	7.3
		
	 Section 314(a)
	  	7.4
	 (a)(4)
	  	10.5
	 (b)
	  	Not Applicable
	 (c)(1)
	  	1.3
	 (c)(2)
	  	1.3
	 (c)(3)
	  	Not Applicable
	 (d)
	  	Not Applicable
	 (e)
	  	1.3
		
	 Section 315(a)
	  	6.1(a)
	 (b)
	  	6.2
	 (c)
	  	6.1(b)
	 (d)
	  	6.1(c)
	 (d)(1)
	  	6.1(a)(1)
	 (d)(2)
	  	6.1(c)(2)
	 (d)(3)
	  	6.1(c)(3)
	 (e)
	  	5.14
		
	 Section 316(a)
	  	1.1, 1.2
	 (a)(1)(A)
	  	5.2, 5.12
	 (a)(1)(B)
	  	5.13
	 (a)(2)
	  	Not Applicable
	 (b)
	  	5.8
	 (c)
	  	1.5(f)

			
	 TRUST INDENTURE ACT SECTION
	  	INDENTURE SECTION
	 Section 317(a)(1)
	  	5.3
	 (a)(2)
	  	5.4
	 (b)
	  	10.3
		
	 Section 318(a)
	  	1.8

 NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture. 

 

	*	Deemed included pursuant to Section 318(c) of the Trust Indenture Act 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	 PARTIES
	  	1
		
	 RECITALS OF THE COMPANY:
	  	1
		
	 ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	1
		 	 Section 1.1.
	  	Definitions	  	1
		 	 Section 1.2.
	  	Incorporation by Reference of Trust Indenture Act	  	8
		 	 Section 1.3.
	  	Compliance Certificates and Opinions	  	8
		 	 Section 1.4.
	  	Form of Documents Delivered to Trustee	  	9
		 	 Section 1.5.
	  	Acts of Holders; Record Dates	  	9
		 	 Section 1.6.
	  	Notices, Etc., to Trustee, Company and Guarantors	  	10
		 	 Section 1.7.
	  	Notice to Holders; Waiver	  	11
		 	 Section 1.8.
	  	Conflict with Trust Indenture Act	  	11
		 	 Section 1.9.
	  	Effect of Headings and Table of Contents	  	11
		 	 Section 1.10.
	  	Successors and Assigns	  	11
		 	 Section 1.11.
	  	Separability Clause	  	11
		 	 Section 1.12.
	  	Benefits of Indenture	  	12
		 	 Section 1.13.
	  	Governing Law	  	12
		 	 Section 1.14.
	  	Legal Holidays	  	12
		 	 Section 1.15.
	  	Securities in a Composite Currency, Currency Unit or Foreign Currency	  	12
		 	 Section 1.16.
	  	Payment in Required Currency; Judgment Currency	  	13
		 	 Section 1.17.
	  	Language of Notices, Etc.	  	13
		 	 Section 1.18.
	  	Incorporators, Shareholders, Officers and Directors of the Company and the Guarantors Exempt from Individual Liability	  	13
		
	 ARTICLE TWO SECURITY FORMS
	  	13
		 	 Section 2.1.
	  	Forms Generally	  	13
		 	 Section 2.2.
	  	Form of Face of Security	  	14
		 	 Section 2.3.
	  	Form of Reverse of Security	  	16
		 	 Section 2.4.
	  	Global Securities	  	20
		 	 Section 2.5.
	  	Form of Trustee’s Certificate of Authentication	  	21
		
	 ARTICLE THREE THE SECURITIES
	  	22
		 	 Section 3.1.
	  	Amount Unlimited; Issuable in Series	  	22
		 	 Section 3.2.
	  	Denominations	  	24
		 	 Section 3.3.
	  	Execution, Authentication, Delivery and Dating	  	24
		 	 Section 3.4.
	  	Temporary Securities	  	26
		 	 Section 3.5.
	  	Registration, Registration of Transfer and Exchange	  	26
		 	 Section 3.6.
	  	Mutilated, Destroyed, Lost and Stolen Securities	  	29
		 	 Section 3.7.
	  	Payment of Interest; Interest Rights Preserved	  	29
		 	 Section 3.8.
	  	Persons Deemed Owners	  	30
		 	 Section 3.9.
	  	Cancellation	  	31
		 	 Section 3.10.
	  	Computation of Interest	  	31
		 	 Section 3.11.
	  	CUSIP or CINS Numbers	  	31

  

 i 

							
	 ARTICLE FOUR SATISFACTION AND DISCHARGE
	  	31
		 	 Section 4.1.
	  	Satisfaction and Discharge of Indenture	  	31
		 	 Section 4.2.
	  	Application of Trust Money	  	32
		
	 ARTICLE FIVE REMEDIES
	  	33
		 	 Section 5.1.
	  	Events of Default	  	33
		 	 Section 5.2.
	  	Acceleration of Maturity; Rescission and Annulment	  	33
		 	 Section 5.3.
	  	Collection of Indebtedness and Suits for Enforcement by Trustee	  	34
		 	 Section 5.4.
	  	Trustee May File Proofs of Claim	  	35
		 	 Section 5.5.
	  	Trustee May Enforce Claims Without Possession of Securities	  	36
		 	 Section 5.6.
	  	Application of Money Collected	  	36
		 	 Section 5.7.
	  	Limitation on Suits	  	36
		 	 Section 5.8.
	  	Unconditional Right of Holders to Receive Principal, Premium and Interest	  	37
		 	 Section 5.9.
	  	Restoration of Rights and Remedies	  	37
		 	 Section 5.10.
	  	Rights and Remedies Cumulative	  	37
		 	 Section 5.11.
	  	Delay or Omission Not Waiver	  	37
		 	 Section 5.12.
	  	Control by Holders	  	37
		 	 Section 5.13.
	  	Waiver of Past Defaults	  	38
		 	 Section 5.14.
	  	Undertaking for Costs	  	38
		 	 Section 5.15.
	  	Waiver of Stay or Extension Laws	  	38
		
	 ARTICLE SIX THE TRUSTEE
	  	39
		 	 Section 6.1.
	  	Certain Duties and Responsibilities	  	39
		 	 Section 6.2.
	  	Notice of Defaults	  	40
		 	 Section 6.3.
	  	Certain Rights of Trustee	  	40
		 	 Section 6.4.
	  	Not Responsible for Recitals or Issuance of Securities	  	41
		 	 Section 6.5.
	  	May Hold Securities	  	41
		 	 Section 6.6.
	  	Money Held in Trust	  	41
		 	 Section 6.7.
	  	Compensation and Reimbursement	  	42
		 	 Section 6.8.
	  	Disqualification; Conflicting Interests	  	42
		 	 Section 6.9.
	  	Corporate Trustee Required; Eligibility	  	42
		 	 Section 6.10.
	  	Resignation and Removal; Appointment of Successor	  	43
		 	 Section 6.11.
	  	Acceptance of Appointment by Successor	  	44
		 	 Section 6.12.
	  	Merger, Conversion, Consolidation or Succession to Business	  	45
		 	 Section 6.13.
	  	Preferential Collection of Claims Against Company	  	45
		 	 Section 6.14.
	  	Appointment of Authenticating Agent	  	45
		
	 ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	  	47
		 	 Section 7.1.
	  	Company to Furnish Trustee Names and Addresses of Holders	  	47
		 	 Section 7.2.
	  	Preservation of Information; Communications to Holders	  	47
		 	 Section 7.3.
	  	Reports by Trustee	  	48
		 	 Section 7.4.
	  	Reports by Company	  	48
		
	 ARTICLE EIGHT CONSOLIDATION, AMALGAMATION, MERGER AND SALE
	  	49
		 	 Section 8.1.
	  	Company and Guarantors May Consolidate, Etc., Only on Certain Terms	  	49
		 	 Section 8.2.
	  	Successor Substituted	  	50
		
	 ARTICLE NINE AMENDMENT, SUPPLEMENT AND WAIVER
	  	50
		 	 Section 9.1.
	  	Without Consent of Holders	  	50
		 	 Section 9.2.
	  	With Consent of Holders	  	52
		 	 Section 9.3.
	  	Execution of Supplemental Indentures	  	53

  

 ii 

							
		 	 Section 9.4.
	  	Effect of Supplemental Indentures	  	54
		 	 Section 9.5.
	  	Conformity with Trust Indenture Act	  	54
		 	 Section 9.6.
	  	Reference in Securities to Supplemental Indentures	  	54
		
	 ARTICLE TEN COVENANTS
	  	54
		 	 Section 10.1.
	  	Payment of Principal, Premium and Interest	  	54
		 	 Section 10.2.
	  	Maintenance of Office or Agency	  	54
		 	 Section 10.3.
	  	Money for Securities Payments to Be Held in Trust	  	55
		 	 Section 10.4.
	  	Existence	  	56
		 	 Section 10.5.
	  	Statement by Officers as to Default	  	56
		 	 Section 10.6.
	  	Additional Amounts	  	56
		
	 ARTICLE ELEVEN REDEMPTION OF SECURITIES
	  	57
		 	 Section 11.1.
	  	Applicability of Article	  	57
		 	 Section 11.2.
	  	Election to Redeem; Notice to Trustee	  	57
		 	 Section 11.3.
	  	Selection by Trustee of Securities to Be Redeemed	  	57
		 	 Section 11.4.
	  	Notice of Redemption	  	58
		 	 Section 11.5.
	  	Deposit of Redemption Price	  	58
		 	 Section 11.6.
	  	Securities Payable on Redemption Date	  	58
		 	 Section 11.7.
	  	Securities Redeemed in Part	  	59
		
	 ARTICLE TWELVE SINKING FUNDS
	  	59
		 	 Section 12.1.
	  	Applicability of Article	  	59
		 	 Section 12.2.
	  	Satisfaction of Sinking Fund Payments with Securities	  	59
		 	 Section 12.3.
	  	Redemption of Securities for Sinking Fund	  	60
		
	 ARTICLE THIRTEEN DEFEASANCE
	  	60
		 	 Section 13.1.
	  	Option to Effect Legal Defeasance or Covenant Defeasance	  	60
		 	 Section 13.2.
	  	Legal Defeasance and Discharge	  	60
		 	 Section 13.3.
	  	Covenant Defeasance	  	61
		 	 Section 13.4.
	  	Conditions to Legal or Covenant Defeasance	  	61
		 	 Section 13.5.
	  	Deposited Money and U.S. Government Obligations to be Held in Trust, Other Miscellaneous Provisions	  	62
		 	 Section 13.6.
	  	Repayment	  	63
		 	 Section 13.7.
	  	Reinstatement	  	63
		
	 ARTICLE FOURTEEN GUARANTEE OF SECURITIES
	  	63
		 	 Section 14.1.
	  	Securities Guarantee	  	63
		 	 Section 14.2.
	  	Limitation on Guarantor Liability	  	65
		 	 Section 14.3.
	  	Execution and Delivery of Securities Guarantee Notation	  	65

 NOTE: This table of contents shall not, for any purpose, be deemed to be a part of the Indenture. 
  

 iii 

 PARTIES 
 INDENTURE, dated as of February 14, 2008, among FLOTEK INDUSTRIES, INC., a corporation duly organized and existing under the laws of the State of Delaware (herein called the “Company”), the GUARANTORS
(as defined hereinafter) and AMERICAN STOCK TRANSFER & TRUST COMPANY, a New York corporation, as trustee (the “Trustee”). 
 RECITALS OF THE COMPANY: 
 The Company has duly authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of its unsecured senior debentures, notes or other evidences of indebtedness (herein called the “Securities”), which may but are not required to be guaranteed by the Guarantor, to be issued in one or more series
as provided in this Indenture. 
 All things necessary to make this Indenture a valid agreement of the Company and of the Guarantors, in
accordance with its terms, have been done. 
 This Indenture is subject to the provisions of the Trust Indenture Act that are required to be
a part of this Indenture and, to the extent applicable, shall be governed by such provisions. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed,
for the equal and proportionate benefit of all Holders of the Securities or of series thereof, as follows: 
 ARTICLE ONE

 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 Section 1.1. Definitions. 
 For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires: 
 (a) the terms defined in this Article have the meanings assigned to them
in this Article and include the plural as well as the singular; 
 (b) all terms used in this Indenture that are defined in
the Trust Indenture Act, defined by a Trust Indenture Act reference to another statute or defined by an SEC rule under the Trust Indenture Act have the meanings so assigned to them; 
 (c) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; 
 (d) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture
as a whole and not to any particular Article, Section or other subdivision; 
 (e) the words “Article” and
“Section” refer to an Article and Section, respectively, of this Indenture; and 
 (f) the word “includes”
and its derivatives means “includes, but is not limited to” and corresponding derivative definitions. 

 Certain terms, used principally in Article Six, are defined in that Article. 
 “Act”, when used with respect to any Holder, has the meaning specified in Section 1.5. 
 “Additional Defeasible Provision” means a covenant or other provision contained that is (a) made part of this Indenture pursuant to a
supplemental indenture hereto, a Board Resolution or an Officer’s Certificate delivered pursuant to Section 3.1, and (b) pursuant to the terms set forth in such supplemental indenture, Board Resolution or Officer’s Certificate,
made subject to the provisions of Article Thirteen. 
 “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 purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings. 
 “Authenticating Agent” means any
Person authorized by the Trustee to act on behalf of the Trustee to authenticate Securities. 
 “Banking Day” means, in respect of
any city, any date on which commercial banks are open for business in that city. 
 “Bankruptcy Law” means any applicable Federal
or State bankruptcy, insolvency, reorganization or other similar law. 
 “Board of Directors” means either the board of directors
of the Company or of a Guarantor, as applicable, or any duly authorized committee of that board to which the powers of that board have been lawfully delegated. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company, the principal financial officer of the Company or a Guarantor, any other authorized
officer of the Company or a Guarantor, or a person duly authorized by any of them, in each case as applicable, 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. Where any provision of this Indenture refers to action to be taken pursuant to a Board Resolution (including the establishment of any series of the Securities and the forms and terms thereof), such action may be taken by any committee,
officer or employee of the Company or a Guarantor, as applicable, authorized to take such action by the Board of Directors as evidenced by a Board Resolution. 
 “Business Day”, when used with respect to any Place of Payment or other location, means, except as otherwise provided as contemplated by Section 3.1 with respect to any series of Securities, each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment or other location are authorized or obligated by law, executive order or regulation to close. 
 “CINS” means CUSIP International Numbering System. 
 “Code” means the United States Internal Revenue Code of 1986, as amended. 
  

 2 

 “Company” means the Person named as the “Company” in the first paragraph of this
instrument until a successor or resulting corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor or resulting corporation. 
 “Company Request” or “Company Order” means, in the case of the Company, a written request or order signed in the name of the Company
by its Chairman of the Board, its Chief Executive Officer, its Chief Financial Officer, its Chief Operating Officer, its President, any of its Vice Presidents or any other duly authorized officer of the Company or any person duly authorized by any
of them, and delivered to the Trustee and, in the case of a Guarantor, a written request or order signed in the name of such Guarantor by its Chairman of the Board, its Chief Executive Officer, its President, any of its Vice Presidents or any other
duly authorized officer of such Guarantor or any person duly authorized by any of them, and delivered to the Trustee. 
 “Corporate
Trust Office” means the office of the Trustee at its address specified in Section 1.6 or such other address as to which the Trustee may give notice to the Company. 
 “corporation” includes corporations, companies, associations, partnerships, limited partnerships, limited liability companies, joint-stock
companies and trusts. 
 “Covenant Defeasance” has the meaning specified in Section 13.3. 
 “CUSIP” means the Committee on Uniform Securities Identification Procedures. 
 “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 
 “Debt” means any obligation created or assumed by any Person for the repayment of money borrowed and any purchase money obligation created or
assumed by such Person and any guarantee of the foregoing. 
 “Default” means, with respect to a series of Securities, any event
that is, or after notice or lapse of time or both would be, an Event of Default. 
 “Defaulted Interest” has the meaning specified
in Section 3.7. 
 “Definitive Security” means a security other than a Global Security or a temporary Security. 
 “Depositary” means, with respect to the Securities of any series issuable or issued in whole or in part in the form of one or more Global
Securities, a clearing agency registered under the Exchange Act that is designated to act as Depositary for such Securities as contemplated by Section 3.1, until a successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter shall mean or include each Person which is a Depositary hereunder, and if at any time there is more than one such Person, shall be a collective reference to such Persons. 
 “Dollar” or “$” means the coin or currency of the United States of America, which at the time of payment is legal tender for the
payment of public and private debts. 
 “Event of Default” has the meaning specified in Section 5.1. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

 3 

 “Foreign Currency” means a currency used by the government of a country other than the United
States of America. 
 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time
to time, including those set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as approved by a significant segment of the accounting profession. All ratios and computations based on GAAP contained in this Indenture will be computed in conformity with GAAP. 
 “Global Security” means a Security in global form that evidences all or part of a series of Securities and is authenticated and delivered to,
and registered in the name of, the Depositary for the Securities of such series or its nominee. 
 “Guarantor” means each Person
that becomes a guarantor of any Securities pursuant to the applicable provisions of this Indenture. 
 “Holder” means a Person in
whose name a Security is registered in the Security Register. 
 “Indenture” means this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument, and any such supplemental indenture, the
provisions of the Trust Indenture Act that are deemed to be part of and govern this instrument and any such supplemental indenture, respectively. The term “Indenture” also shall include the terms of particular series of Securities
established as contemplated by Section 3.1. 
 “interest”, when used with respect to an Original Issue Discount Security which
by its terms bears interest only after Maturity, means interest payable after Maturity. 
 “Interest Payment Date”, when used with
respect to any Security, means the Stated Maturity of an installment of interest on such Security. 
 “Judgment Currency” has the
meaning specified in Section 1.16. 
 “Legal Defeasance” has the meaning specified in Section 13.2. 
 “mandatory sinking fund payment” has the meaning specified in Section 12.1. 
 “Maturity”, when used with respect to any Security, means the date on which the principal of such Security or an installment of principal
becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
 “Notice of Default” means a written notice of the kind specified in Section 5.1(e). 
 “Officer’s Certificate” means, in the case of the Company, a certificate signed by the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the Chief Operating Officer, the President, any Vice
President or any other duly authorized officer of the Company, or a person duly authorized by any of them, and delivered to the Trustee and, in the case of a Guarantor, a certificate signed by the Chairman of the Board, the Chief Executive Officer,
the President, any Vice President or any other duly authorized officer of such Guarantor, or a person duly authorized by any of them, and delivered to the Trustee. 
  

 4 

 “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
for the Company or a Guarantor, as the case may be, and who shall be reasonably acceptable to the Trustee. 
 “optional sinking fund
payment” has the meaning specified in Section 12.1. 
 “Original Issue Discount Security” means any Security which
provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2. 
 “Outstanding”, when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and
delivered under this Indenture, except: 
 (a) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation; 
 (b) Securities for whose payment or redemption money in the necessary amount has been theretofore deposited
with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities; provided, however, that,
if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; 
 (c) Securities which have been paid pursuant to Section 3.6 or in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands
such Securities are valid obligations of the Company; and 
 (d) Securities, except to the extent provided in
Section 13.2 and Section 13.3, with respect to which the Company has effected Legal Defeasance or Covenant Defeasance as provided in Article Thirteen, which Legal Defeasance or Covenant Defeasance then continues in effect; 

provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, (i) the principal amount of an Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity thereof on such date pursuant to Section 5.2, (ii) the principal amount of a Security denominated in one or more currencies or currency units other than U.S.
dollars shall be the U.S. dollar equivalent of such currencies or currency units, determined in the manner provided as contemplated by Section 3.1 on the date of original issuance of such Security or by Section 1.15, if not otherwise so
provided pursuant to Section 3.1, of the principal amount (or, in the case of an Original Issue Discount Security, the U.S. dollar equivalent (as so determined) on the date of original issuance of such Security of the amount determined as
provided in clause (i) above) of such Security, and (iii) Securities owned by the Company, any Guarantor or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which the Trustee knows to be so owned shall be so
disregarded. Securities so owned as described in clause (iii) of the immediately preceding sentence which have been pledged in good faith may be regarded as 

  

 5 

 
Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right to act with respect to such Securities and that the
pledgee is not the Company, a Guarantor or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor. 
 “Paying Agent” means any Person authorized by the Company to pay the principal of and any premium or interest on any Securities on behalf of the Company. 
 “Periodic Offering” means an offering of Securities of a series from time to time, the specific terms of which Securities, including, without
limitation, the rate or rates of interest or formula for determining the rate or rates of interest thereon, if any, the Stated Maturity or Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if any, with
respect thereto, and any other terms specified as contemplated by Section 3.1 with respect thereto, are to be determined by the Company upon the issuance of such Securities. 
 “Person” means any individual, corporation, company, limited liability company, partnership, limited partnership, joint venture, association,
joint-stock company, trust, other entity, unincorporated organization or government or any agency or political subdivision thereof. 
 “Place of Payment”, when used with respect to the Securities of any series, means, unless otherwise specifically provided for with respect to such series as contemplated by Section 3.1, the office or agency of the Company in
the City of New York and such other place or places where, subject to the provisions of Section 10.2, the principal of and any premium and interest on the Securities of that series are payable as contemplated by Section 3.1. 
 “Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security. 
 “Redemption Date”, when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 
 “Redemption Price”, when used with respect
to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 
 “Regular Record Date”
for the interest payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by Section 3.1. 
 “Required Currency” has the meaning specified in Section 1.16. 
 “Responsible
Officer” when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

 “SEC” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at
any time after the execution of this instrument such commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 
  

 6 

 “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture. 
 “Securities Guarantee” means each guarantee
of the obligations of the Company under this Indenture and the Securities by a Guarantor in accordance with the provisions hereof. 
 “Security Register” and “Security Registrar” have the respective meanings specified in Section 3.5. 
 “Significant Subsidiary” means any Subsidiary that would be a “Significant Subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC. 
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.7. 
 “Stated Maturity”, when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 
 “Subsidiary” means (a) a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other
Subsidiaries or (b) any partnership or similar business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned. For the purposes of this definition, “voting stock”
means capital stock or equity interests which ordinarily have voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 
 “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument 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, and if at any time there is more than one such Person, “Trustee” as
used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series. 
 “Trust Indenture
Act” means the Trust Indenture Act of 1939, as amended, as in force at the date as of which this instrument was executed, except as provided in Section 9.5; provided, however, that if the Trust Indenture Act of 1939 is
amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. 
 “U.S. Person” shall have the meaning assigned to such term in Section 7701(a)(30) of the Code. 
 “U.S. Government Obligations” means securities which are (a) direct obligations of the United States for the payment of which its full faith and credit is pledged, or (b) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of the United States, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States, each of which are not callable or redeemable at the option of the
issuer thereof. 
 “Vice President”, when used with respect to the Company, the Guarantor or the Trustee, means any vice president,
regardless of whether designated by a number or a word or words added before or after the title “vice president.” 
  

 7 

 Section 1.2. Incorporation by Reference of Trust Indenture Act. 
 Whenever this Indenture refers to a provision of the Trust Indenture Act, the provision is incorporated by reference in and made a part of this Indenture.
The following Trust Indenture Act terms used in this Indenture have the following meanings: 
 “commission” means the SEC.

 “indenture securities” means the Securities. 
 “indenture security holder” means a Holder. 
 “indenture to be qualified” means this
Indenture. 
 “indenture trustee” or “institutional trustee” means the Trustee. 
 “obligor” on the indenture securities means the Company, the Guarantor (if applicable) or any other obligor on the indenture securities.

 All terms used in this Indenture that are defined by the Trust Indenture Act, defined by a Trust Indenture Act reference to another
statute or defined by an SEC rule under the Trust Indenture Act have the meanings so assigned to them. 
 Section 1.3. Compliance Certificates and
Opinions. 
 Upon any application or request by the Company or a Guarantor to the Trustee to take any action under any provision of this
Indenture, the Company or such Guarantor, as the case may be, shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied
with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished except as required under Section 314(c) of the Trust Indenture Act. 

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (except for certificates provided
for in Section 10.5) shall include: 
 (a) a statement that each individual signing such certificate or opinion has read
such covenant or condition and the definitions herein relating thereto; 
 (b) a brief statement as to the nature and scope of
the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (c) a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether such covenant or condition has been complied with; and

 (d) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

  

 8 

 Section 1.4. Form of Documents Delivered to Trustee. 
 In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
 Any
certificate or opinion of an officer of the Company or a Guarantor may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows or, in the exercise of reasonable
care, should know that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to factual
matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company or the Guarantor, as the case may be, stating that the information with respect to such factual matters is in the possession of the Company or
the Guarantor, as the case may be, unless such counsel knows that the certificate or opinion or representations with respect to such matters are erroneous. 
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument. 
 Section 1.5. Acts of Holders; Record Dates. 
 (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed (either physically or by means of a facsimile or an electronic transmission, provided that such electronic transmission is
transmitted through the facilities of a Depositary) by such Holders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are
delivered to the Trustee and, where it is hereby expressly required, to the Company or the Guarantors. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 315 of the Trust Indenture
Act) conclusive in favor of the Trustee, the Company and, if applicable, the Guarantors, if made in the manner provided in this Section. 
 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized
by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which
the Trustee deems sufficient. 
 (c) The ownership, principal amount and serial numbers of Securities held by any Person, and
the date of commencement of such Person’s holding of same, shall be proved by the Security Register. 
  

 9 

 (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee, the Company or, if applicable, the Guarantors in reliance thereon, regardless of whether notation of such action is made upon such Security. 
 (e) Without limiting the foregoing, a Holder entitled to give or take any action hereunder with regard to any particular Security may do
so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any different part of such principal amount. 
 (f) The Company may set any day as the record date for the purpose of determining the Holders of Outstanding Securities of any series
entitled to give or take any request, demand, authorization, direction, notice, consent, waiver or other Act provided or permitted by this Indenture to be given or taken by Holders of Securities of such series, but the Company shall have no
obligation to do so. With regard to any record date set pursuant to this paragraph, the Holders of Outstanding Securities of the relevant series on such record date (or their duly appointed agents), and only such Persons, shall be entitled to give
or take the relevant action, regardless of whether such Holders remain Holders after such record date. 
 Section 1.6. Notices, Etc., to Trustee,
Company and Guarantors. 
 (a) Any notice or communication by the Company, any of the Guarantors or the Trustee to the
others is duly given if in writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier or overnight air courier guaranteeing next day delivery, to the others’ address:

 If to the Company and/or any Guarantor: 
 c/o Flotek Industries, Inc. 
 7030 Empire Central Drive 
 Houston, TX 77040 
 Facsimile:
(713) 466-8386 
 Attention: Chief Financial Officer 
 If to the Trustee: 
 American Stock Transfer & Trust Company 
 59 Maiden Lane 
 New York, NY 10038

 Facsimile: (718) 331-1852 
 Attention: Corporate Trust Department 
 (b) The Company, the Guarantors or the Trustee, by notice to the others, may
designate additional or different addresses for subsequent notices or communications. 
 (c) All notices and communications
(other than those sent to Holders) shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if
telecopied; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery. 
  

 10 

 Section 1.7. Notice to Holders; Waiver. 
 Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if
in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of
such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.
Any notice mailed to a Holder in the manner herein prescribed shall be conclusively deemed to have been received by such Holder, regardless of whether such Holder actually receives such notice. 
 Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such
waiver. 
 In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such
notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 
 Section 1.8. Conflict with Trust Indenture Act. 
 If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such Act to be a part of and govern this Indenture, the latter provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that
may be so modified or excluded, the latter provision shall be deemed to apply to this Indenture as so modified or excluded, as the case may be. 
 Section 1.9. Effect of Headings and Table of Contents. 
 The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof. 
 Section 1.10. Successors and Assigns. 
 All covenants and agreements in this Indenture by each of the Company and the Guarantors shall bind their respective successors and assigns, whether so
expressed or not. 
 Section 1.11. Separability Clause. 
 In case any provision in this Indenture or in the Securities or, if applicable, the Securities Guarantee shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. 
  

 11 

 Section 1.12. Benefits of Indenture. 
 Nothing in this Indenture or in the Securities or, if applicable, the Securities Guarantee, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 Section 1.13. Governing Law. 
 THIS INDENTURE, THE SECURITIES AND THE SECURITIES GUARANTEE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Section 1.14. Legal Holidays. 
 In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Securities or, if applicable, the Securities Guarantee (other than a provision of the Securities of any series or, if applicable, the Securities Guarantee that specifically states that
such provision shall apply in lieu of this Section 1.14)) payment of interest or principal and any premium need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with
the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be. 
 Section 1.15. Securities in a Composite Currency, Currency Unit or Foreign Currency. 
 Unless otherwise specified in an Officer’s Certificate delivered pursuant to Section 3.1 of this Indenture with respect to a particular series
of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all series or all series affected by a particular action at the time Outstanding
and, at such time, there are Outstanding Securities of any series which are denominated in a coin, currency or currencies other than Dollars (including, but not limited to, any composite currency, currency units or Foreign Currency), then the
principal amount of Securities of such series which shall be deemed to be Outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the Market Exchange Rate. For purposes of this
Section 1.15, the term “Market Exchange Rate” shall mean the noon Dollar buying rate in The City of New York for cable transfers of such currency or currencies as published by the Federal Reserve Bank of New York, as of the most
recent available date. If such Market Exchange Rate is not so available for any reason with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of
New York as of the most recent available date, or quotations or rates of exchange from one or more major banks in The City of New York or in the country of issue of the currency in question, which for purposes of euros shall be Brussels,
Belgium, or such other quotations or rates of exchange as the Trustee shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a series denominated in a currency
other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture. 
 All decisions and
determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, be conclusive to the extent
permitted by law for all purposes and irrevocably binding upon the Issuer and all Holders. 
  

 12 

 Section 1.16. Payment in Required Currency; Judgment Currency. 
 Each of the Company and the Guarantors agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose
of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest on the Securities of any series (the “Required Currency”) into a currency in which a judgment will be rendered (the
“Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which
final unappealable judgment is entered, unless such day is not a Banking Day, then, to the extent permitted by applicable law, the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could
purchase in The City of New York the Required Currency with the Judgment Currency on the Banking Day next preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the
Required Currency (i) shall not be discharged or satisfied by any tender, or any recovery pursuant to any judgment (regardless of whether entered in accordance with subclause (a)), in any currency other than the Required Currency, except to the
extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional
cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable and (iii) shall not be affected by
judgment being obtained for any other sum due under this Indenture. 
 Section 1.17. Language of Notices, Etc. 
 Any request, demand, authorization, direction, notice, consent, waiver or Act required or permitted under this Indenture shall be in the English language,
except that any published notice may be in an official language of the country of publication. 
 Section 1.18. Incorporators, Shareholders, Officers
and Directors of the Company and the Guarantors Exempt from Individual Liability. 
 No recourse under or upon any obligation, covenant or
agreement of or contained in this Indenture or of or contained in any Security or, if applicable, the Securities Guarantee, or for any claim based thereon or otherwise in respect thereof, or in any Security or, if applicable, the Securities
Guarantee, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, shareholder, member, officer, manager or director, as such, past, present or future, of the Company, any Guarantor or any successor
Person, either directly or through the Company, any Guarantor or any successor Person, 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 part of the consideration for, the execution of this Indenture and the issue of the Securities. 
 ARTICLE TWO 
 SECURITY FORMS 
 Section 2.1. Forms Generally. 
 The Securities of
each series and, if applicable, the notation thereon relating to the Securities Guarantee, shall be in substantially the form set forth in this Article Two, or in such other form or forms as shall be established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are 

  

 13 

 
required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon
as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined by the officers executing such Securities and, if applicable, the Securities Guarantee, as evidenced by their execution thereof.

 The definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Securities, as evidenced by their execution thereof. If the form of Securities of any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by an authorized officer or other authorized person on behalf of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 3.3 for the authentication and delivery of
such Securities. 
 The forms of Global Securities of any series shall have such provisions and legends as are customary for Securities of
such series in global form, including without limitation any legend required by the Depositary for the Securities of such series. 
 Section 2.2.
Form of Face of Security. 
 [If the Security is an Original Issue Discount Security, insert—FOR PURPOSES OF SECTION 1275 OF THE UNITED
STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT IS             , THE ISSUE DATE IS
            , 20     [AND] [,] THE YIELD TO MATURITY IS
                     [,] [AND THE ORIGINAL ISSUE DISCOUNT FOR THE SHORT ACCRUAL PERIOD IS
                     AND THE METHOD USED TO DETERMINE THE YIELD THEREFOR IS
            ]] 
 [Insert any other legend required by the Code or the regulations
thereunder.] 
 [If a Global Security,—insert legend required by Section 2.4 of the Indenture] [If applicable, insert—UNLESS
THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 FLOTEK INDUSTRIES, INC. 
 [TITLE OF SECURITY]

  

			
	 No     
	 	U.S. $            

 [CUSIP No. ] 
 FLOTEK
INDUSTRIES, INC., a company duly incorporated under the laws of the State of Delaware (herein called the “Company”, which term includes any successor or resulting Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to                         , 

  

 14 

 
or registered assigns, the principal sum of              United States Dollars on
                    . [If the Security is to bear interest prior to Maturity, insert—, and to pay interest thereon from
                     or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
                     and
                     in each year, commencing
                        , at the rate of     % per annum, until the principal hereof is paid or
made available for payment [if applicable, insert—, and at the rate of     % per annum on any overdue principal and premium and on any installment of interest (to the extent that the payment of such interest
shall be legally enforceable)]. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the
                         or
                         (regardless of whether a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special
Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture]. 
 [If the Security is not to bear interest prior to Maturity, insert—The principal of this Security
shall not bear interest except in the case of a default in payment of principal upon acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this Security shall bear interest at the rate of
    % per annum (to the extent that the payment of such interest shall be legally enforceable), which shall accrue from the date of such default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal shall be payable on demand. Any such interest on any overdue principal that is not so paid on demand shall bear interest at the rate of     % per annum (to the extent that
the payment of such interest shall be legally enforceable), which shall accrue from the date of such demand for payment to the date payment of such interest has been made or duly provided for, and such interest shall also be payable on demand.]

 [If a Global Security, insert—Payment of the principal of (and premium, if any) and [if applicable, insert—any such] interest on
this Security will be made by transfer of immediately available funds to a bank account in                         
designated by the Holder in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts [state other currency].] 
 [If a Definitive Security, insert—Payment of the principal of (and premium, if any) and [if applicable, insert—any such] interest on this
Security will be made at the office or agency of the Company maintained for that purpose in                         , in
such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts] [state other currency] [or subject to any laws or regulations applicable thereto and to the right of the Company
(as provided in the Indenture) to rescind the designation of any such Paying Agent, at the [main] offices of
                         in
                        , or at such other offices or agencies as the Company may designate, by [United States Dollar]
[state other currency] check drawn on, or transfer to a [United States Dollar] account maintained by the payee with, a bank in The City of New York (so long as the applicable Paying Agency has received proper transfer instructions in writing at
least      days prior to the payment date)] [if applicable, insert—; provided, however, that payment of interest may be made at the option of the Company by [United States Dollar] [state other
currency] check mailed to the addresses of the Persons entitled thereto as such addresses shall appear in the Security Register] [or by transfer to a [United States Dollar] [state other currency] account maintained by the payee with a bank in The
City of New York [state other Place of Payment] (so long as the applicable Paying Agent has received proper transfer instructions in writing by the record date prior to the applicable Interest Payment Date)].] 
  

 15 

 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
 Dated: 
  

			
	 FLOTEK INDUSTRIES, INC.

		
	 By:
	 	  

 Section 2.3. Form of Reverse of Security. 
 This Security is one of a duly authorized issue of senior securities of the Company (herein called the “Securities”), issued and to be issued in one or more
series under an Indenture, dated as of             , 20     (herein called the “Indenture”), between the Company, the Guarantors and
                        , as Trustee (herein called the “Trustee”, which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement, of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantors, the Trustee
and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. As provided in the Indenture, the Securities may be issued in one or more series, which different series may be issued in
various aggregate principal amounts, may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or analogous funds, if any,
may be subject to different covenants and Events of Default and may otherwise vary as in the Indenture provided or permitted. This Security is one of the series designated on the face hereof [, limited in aggregate principal amount to $
             ]. 
 This security is the general, unsecured, senior obligation of the
Company [if applicable, insert—and is guaranteed pursuant to a guarantee (the “Securities Guarantee”) by [insert name of each Guarantor] (the “Guarantors”). The Securities Guarantee is the general, unsecured,
senior obligation of each Guarantor.] 
 [If applicable, insert—The Securities of this series are subject to redemption upon not less than
     days’ notice by mail, [if applicable, insert, —(1) on                      in any year
commencing with the year              and ending with the year              through operation of the sinking fund
for this series at a Redemption Price equal to 100% of the principal amount, and (2) ] at any time [on or after             , 20     ], as a whole or
in part, at the election of the Company, at the following Redemption Prices (expressed as percentages of the principal amount): If redeemed [on or before
                     ,     %, and if redeemed] during the 12-month period beginning
                     of the years indicated, 
  

 16 

							
	 Year
	  	Redemption Price	  	Year	  	Redemption Price

  
 and thereafter at a Redemption Price equal
to      % of the principal amount, together in the case of any such redemption [if applicable, insert—(whether through operation of the sinking fund or otherwise)] with accrued interest to the Redemption Date,
but interest installments whose Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant record dates referred
to on the face hereof, all as provided in the Indenture.] 
 [If applicable, insert—The Securities of this series are subject to redemption upon
not less than      nor more than      days’ notice by mail, (1) on
                     in any year commencing with the year              and
ending with the year              through operation of the sinking fund for this series at the Redemption Prices for redemption through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below, and (2) at anytime [on or after                      ], as a whole or
in part, at the election of the Company, at the Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as percentages of the principal amount) set forth in the table below: If redeemed during the 12-month
period beginning                      of the years indicated, 
  

					
	 Year
	  	Redemption Price for
Redemption Through
Operation of the Sinking Fund	  	Redemption Price for
Redemption Otherwise Than

Through Operation of the
Sinking Fund

  
 and thereafter at a Redemption Price equal
to     % of the principal amount, together in the case of any such redemption (whether through operation of the sinking fund or otherwise) with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant record dates referred to on the face hereof, all as
provided in the Indenture.] 
 [If applicable, insert—Notwithstanding the foregoing, the Company may not, prior to
                        , redeem any Securities of this series as contemplated by [clause (2) of] the preceding
paragraph as a part of, or in anticipation of, any refunding operation by the application, directly or indirectly, of moneys borrowed having an interest cost to the Company (calculated in accordance with generally accepted financial practice) of
less than     % per annum.] 
  

 17 

 [If applicable, insert—The sinking fund for this series provides for the redemption on
                     in each year beginning with the year              and
ending with the year              of [not less than] $              [ (“mandatory sinking fund”) and not
more than $             ] aggregate principal amount of Securities of this series. [Securities of this series acquired or redeemed by the Company otherwise than through [mandatory]
sinking fund payments may be credited against subsequent [mandatory] sinking fund payments otherwise required to be made [If applicable, insert— in the inverse order in which they become due].] 
 [If the Securities are subject to redemption in part of any kind, insert—In the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.] 
 [If applicable, insert—The Securities of this series are not redeemable prior to Stated Maturity.] 
 [If the Security is not an
Original Issue Discount Security,—If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.] 
 [If the Security is an Original Issue Discount Security,—If an Event of Default with respect to
Securities of this series shall occur and be continuing, an amount of principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. Such amount shall be equal to
—insert formula for determining the amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest (in each case to the extent that the payment
of such interest shall be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of and interest, if any, on the Securities of this series shall terminate.] 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company [If
applicable, insert—and the Guarantors] and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company [If applicable, insert—and the Guarantors] and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company [If applicable, insert—and the Guarantors] with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon
the registration of transfer hereof or in exchange herefor or in lieu hereof, regardless of whether notation of such consent or waiver is made upon this Security. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest
on this Security at the times, place(s) and rate, and in the coin or currency, herein prescribed. 
 [If a Global Security, insert—This Global
Security or portion hereof may not be exchanged for Definitive Securities of this series except in the limited circumstances provided in the Indenture. The holders of 

  

 18 

 
beneficial interests in this Global Security will not be entitled to receive physical delivery of Definitive Securities except as described in the Indenture
and will not be considered the Holders thereof for any purpose under the Indenture.] 
 [If a Definitive Security, insert—As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in [if
applicable, insert—any place where the principal of and any premium and interest on this Security are payable] [if applicable, insert—The City of New York [, or, subject to any laws or regulations applicable thereto and to the
right of the Company (limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the [main] offices of
                         in
                         or at such other offices or agencies as the Company may designate]], duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.] 
 The Securities of this series are issuable only in registered form without coupons in denominations of U.S. $              and any integral multiple thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested
by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security for
registration of transfer, the Company, [If applicable, insert—any Guarantor,] the Trustee and any agent of the Company [If applicable, insert—, a Guarantor] or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, regardless of whether this Security be overdue, and none of the Company, [If applicable, insert—the Guarantors,] the Trustee nor any such agent shall be affected by notice to the contrary.

 No recourse under or upon any obligation, covenant or agreement of or contained in the Indenture or of or contained in any Security, [If applicable,
insert—, or the Securities Guarantee endorsed thereon,] or for any claim based thereon or otherwise in respect thereof, or in any Security [If applicable, insert—or in the Securities Guarantee], or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator, shareholder, member, officer, manager or director, as such, past, present or future, of the Company [If applicable, insert—or any Guarantor] or of any successor
Person, either directly or through the Company [If applicable, insert—or any Guarantor] or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment, penalty or
otherwise; it being expressly understood that all such liability is hereby expressly waived and released by the acceptance hereof and as a condition of, and as part of the consideration for, the Securities and the execution of the Indenture.

 The Indenture provides that the Company [If applicable, insert—and the Guarantors] (a) will be discharged from any and all obligations in
respect of the Securities (except for certain obligations described in the Indenture), or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company [If applicable, insert—or a Guarantor]
deposits, in trust, with the Trustee money or U.S. Government Obligations (or a combination thereof) which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, in an amount sufficient to
pay all the principal of and interest on the Securities, but such money need not be segregated from other funds except to the extent required by law. 
  

 19 

 Except as otherwise defined herein, all terms used in this Security which are defined in the Indenture shall have the
meanings assigned to them in the Indenture. 
 [If a Definitive Security, insert as a separate page— 
 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto  

			
	  
	 	

 (Please Print or Typewrite Name and Address of Assignee) 
 the within instrument of FLOTEK INDUSTRIES, INC. and does hereby irrevocably constitute and appoint
                             Attorney to transfer said instrument on the books of the within-named
Company, with full power of substitution in the premises. 
 Please Insert Social Security or Other Identifying Number of Assignee: 
  

									
	  
	 		 	  
	 	
					
	 Dated:
	 	  
	 		 	  
	 	
		 		 		 	(Signature)	 	

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within
instrument in every particular, without alteration or enlargement or any change whatever.] 
 [If a Security to which Article Fourteen has been made
applicable, insert the following Form of Notation on such Security relating to the Securities Guarantee— 
 Each of the Guarantors (which term
includes any successor Person in such capacity under the Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the
principal of, and premium, if any, and interest on the Securities of this series and all other amounts due and payable under the Indenture and the Securities of this series by the Company. 
 The obligations of the Guarantors to the Holders of Securities of this series and to the Trustee pursuant to the Securities Guarantee and the Indenture are expressly set
forth in Article Fourteen of the Indenture and reference is hereby made to the Indenture for the precise terms of the Securities Guarantee. 
  

					
	 Guarantors:
	 	
		
	 [NAME OF EACH GUARANTOR]
	 	
			
	 By:
	 	  
	 	
		 	  
	 	]

 Section 2.4. Global Securities. 
 Every Global Security authenticated and delivered hereunder shall bear a legend in substantially the following form: 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
  

 20 

 EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN
LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES. 
 If Securities of a
series are issuable in whole or in part in the form of one or more Global Securities, as specified as contemplated by Section 3.1, then, notwithstanding clause (i) of Section 3.1 and the provisions of Section 3.2, any Global
Security shall represent such of the Outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and that the aggregate
amount of Outstanding Securities represented thereby may from time to time be reduced or increased, as the case may be, to reflect exchanges. Any endorsement of a Global Security to reflect the amount, or any reduction or increase in the amount, of
Outstanding Securities represented thereby shall be made in such manner and upon instructions given by such Person or Persons as shall be specified therein or in a Company Order. Subject to the provisions of Section 3.3, Section 3.4 and
Section 3.5, the Trustee shall deliver and redeliver any Global Security in the manner and upon instructions given by the Person or Persons specified therein or in the applicable Company Order. Any instructions by the Company with respect to
endorsement or delivery or redelivery of a Global Security shall be in a Company Order (which need not comply with Section 1.3 and need not be accompanied by an Opinion of Counsel). 
 The provisions of the last sentence of Section 3.3 shall apply to any Security represented by a Global Security if such Security was never issued
and sold by the Company and the Company delivers to the Trustee the Global Security together with a Company Order (which need not comply with Section 1.3 and need not be accompanied by an Opinion of Counsel) with regard to the reduction or
increase, as the case may be, in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of Section 3.3. 
 Section 2.5. Form of Trustee’s Certificate of Authentication. 
 The Trustee’s
certificate(s) of authentication shall be in substantially the following form: 
 This is one of the Securities of the series designated
[insert title of applicable series] referred to in the within-mentioned Indenture. 
  

					
	  
	 	,
	 as Trustee
	 	
			
	 By:
	 	  
	 	
		 	 Authorized Officer
	 	

  

 21 

 ARTICLE THREE 
 THE SECURITIES 
 Section 3.1. Amount Unlimited; Issuable in Series. 
 The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. 
 The Securities may be issued in one or more series. There shall be established in or pursuant to a Board Resolution, and set forth, or determined in the
manner provided, in an Officer’s Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series, 
 (a) the title of the Securities of the series (which shall distinguish the Securities of the series from all other Securities and which
may be part of a series of Securities previously issued); 
 (b) any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to
Section 3.4, Section 3.5, Section 3.6, Section 9.6 or Section 11.7 and except for any Securities which, pursuant to Section 3.3, are deemed never to have been authenticated and delivered hereunder); 
 (c) the Person to whom any interest on a Security of the series shall be payable, if other than the Person in whose name that Security (or
one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest; 
 (d) the date or dates on which the principal of the Securities of the series is payable or the method of determination thereof; 
 (e) the rate or rates at which the Securities of the series shall bear interest, if any, or the formula, method or provision pursuant to which such rate or rates are determined, the date or dates from which such
interest shall accrue or the method of determination thereof, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Interest Payment Date; 
 (f) the place or places where, subject to the provisions of Section 10.2, the principal of and any premium and interest on Securities
of the series shall be payable, Securities of the series may be surrendered for registration of transfer, Securities of the series may be surrendered for exchange and notices, and demands to or upon the Company in respect of the Securities of the
series and this Indenture may be served; 
 (g) the period or periods within which, the price or prices at which and the terms
and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company; 
 (h)
the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and
the terms and conditions upon which Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation; 
  

 22 

 (i) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable; 
 (j) whether payment of principal of and premium, if any,
and interest, if any, on the Securities of the series shall be without deduction for taxes, assessments or governmental charges paid by Holders of the series; 
 (k) if other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to Section 5.2; 
 (l) if the amount of payments of
principal of and any premium or interest on the Securities of the series may be determined with reference to an index, the manner in which such amounts shall be determined; 
 (m) if and as applicable, that the Securities of the series shall be issuable in whole or in part in the form of one or more Global
Securities and, in such case, the Depositary or Depositaries for such Global Security or Global Securities and any circumstances other than those set forth in Section 3.5 in which any such Global Security may be transferred to, and registered
and exchanged for Securities registered in the name of, a Person other than the Depositary for such Global Security or a nominee thereof and in which any such transfer may be registered; 
 (n) any deletions from, modifications of or additions to the Events of Default set forth in Section 5.1 or the covenants of the
Company set forth in Article Ten with respect to the Securities of such series; 
 (o) whether and under what
circumstances the Company will pay additional amounts on the Securities of the series held by a Person who is not a U.S. Person in respect of any tax, assessment or governmental charge withheld or deducted and, if so, whether the Company will have
the option to redeem the Securities of the series rather than pay such additional amounts; 
 (p) if the Securities of the
series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security of such series) only upon receipt of certain certificates or other documents or satisfaction of other conditions, the form and terms
of such certificates, documents or conditions; 
 (q) if the Securities of the series are to be convertible into or
exchangeable for any other security or property of the Company, including, without limitation, securities of another Person held by the Company or its Affiliates and, if so, the terms thereof; 
 (r) if other than as provided in Section 13.2 and Section 13.3, the means of Legal Defeasance or Covenant Defeasance as may be
specified for the Securities of the series; 
 (s) if other than the Trustee, the identity of the initial Security Registrar
and any initial Paying Agent; 
 (t) whether the Securities of the series will be guaranteed pursuant to the Securities
Guarantee set forth in Article Fourteen, any modifications to the terms of Article Fourteen applicable to the Securities of such series and the applicability of any other guarantees; and 
  

 23 

 (u) any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture). 
 All Securities of any one series shall be substantially identical except as to denomination and except as
may otherwise be provided in or pursuant to the Board Resolution referred to above and (subject to Section 3.3) set forth, or determined in the manner provided, in the Officer’s Certificate referred to above or in any such indenture
supplemental hereto. 
 All Securities of any one series need not be issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for increases in the aggregate principal amount of such series of Securities and issuances of additional Securities of such series or for the establishment of additional terms with respect to the
Securities of such series. 
 If any of the terms of the series are established by action taken by or pursuant to a Board Resolution, a copy
of an appropriate record of such action shall be certified by an authorized officer or other authorized person on behalf of the Company and, if applicable, the Guarantors and delivered to the Trustee at or prior to the delivery of the Officer’s
Certificate setting forth, or providing the manner for determining, the terms of the series. 
 With respect to Securities of a series
subject to a Periodic Offering, such Board Resolution or Officer’s Certificate may provide general terms for Securities of such series and provide either that the specific terms of particular Securities of such series shall be specified in a
Company Order or that such terms shall be determined by the Company and, if applicable, the Guarantors or one or more agents thereof designated in an Officer’s Certificate, in accordance with a Company Order. 
 Section 3.2. Denominations. 
 The Securities of
each series shall be issuable in registered form without coupons in such denominations as shall be specified as contemplated by Section 3.1. In the absence of any such provisions with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral multiple thereof. 
 Section 3.3. Execution, Authentication, Delivery and
Dating. 
 The Securities shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its
President, its Chief Financial Officer or any of its Vice Presidents and need not be attested. The signature of any of these officers on the Securities may be manual or facsimile. Any Securities Guarantee endorsed on the Securities shall be executed
on behalf of the applicable Guarantor by its Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer or any of its Vice Presidents and need not be attested. 
 Securities and any Securities Guarantee bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company
or a Guarantor, as the case may be, shall bind the Company or such Guarantor, as the case may be, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities. 
 At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the
Company Order shall authenticate and deliver such Securities; provided, however, 

  

 24 

 
that in the case of Securities offered in a Periodic Offering, the Trustee shall authenticate and deliver such Securities from time to time in accordance
with such other procedures (including, without limitation, the receipt by the Trustee of oral or electronic instructions from the Company or its duly authorized agents, thereafter promptly confirmed in writing) acceptable to the Trustee as may be
specified by or pursuant to a Company Order delivered to the Trustee prior to the time of the first authentication of Securities of such series. If the forms or terms of the Securities of the series have been established in or pursuant to one or
more Board Resolutions as permitted by Section 2.1 and Section 3.1, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to
receive such documents as it may reasonably request. The Trustee shall also be entitled to receive, and (subject to Section 6.1) shall be fully protected in relying upon, an Opinion of Counsel stating, 
 (a) if the form or forms of such Securities has been established in or pursuant to a Board Resolution as permitted by Section 2.1,
that each such form has been established in conformity with the provisions of this Indenture; 
 (b) if the terms of such
Securities have been, or in the case of Securities of a series offered in a Periodic Offering will be, established in or pursuant to a Board Resolution as permitted by Section 3.1, that such terms have been, or in the case of Securities of a
series offered in a Periodic Offering will be, established in conformity with the provisions of this Indenture, subject, in the case of Securities of a series offered in a Periodic Offering, to any conditions specified in such Opinion of Counsel;
and 
 (c) that such Securities when authenticated and delivered by the Trustee and issued by the Company in the manner and
subject to any conditions and assumptions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company and, if applicable, the Guarantors, enforceable in accordance with their terms, subject to the
following limitations: (i) bankruptcy, insolvency, moratorium, reorganization, liquidation, fraudulent conveyance or transfer and other similar laws of general applicability relating to or affecting the enforcement of creditors’ rights, or
to general equity principles, (ii) the availability of equitable remedies being subject to the discretion of the court to which application therefor is made; and (iii) such other usual and customary matters as shall be specified in such
Opinion of Counsel. 
 If such form or forms or terms have been so established, the Trustee shall not be required to authenticate such
Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

 Notwithstanding the provisions of Section 3.1 and of the preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officer’s Certificate otherwise required pursuant to Section 3.1 or the Company Order and Opinion of Counsel otherwise required pursuant to such preceding paragraph at or prior
to the time of authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued. 
 With respect to Securities of a series offered in a Periodic Offering, the Trustee may rely, as to the authorization by the Company of any of such
Securities, on the form or forms and terms thereof and the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel and the other documents delivered pursuant to Section 2.1 and Section 3.1 and this
Section, as applicable, in connection with the first authentication of Securities of such series. 
  

 25 

 Each Security shall be dated the date of its authentication. 
 No Security, nor any Securities Guarantee endorsed thereon, shall be entitled to any benefit under this Indenture or be valid or obligatory for any
purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature of an authorized officer, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 3.9 for all purposes of this Indenture such Security shall be deemed never to have
been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 
 Section 3.4. Temporary Securities.

 Pending the preparation of Definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the Definitive Securities in lieu of which they are issued
and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. 
 If temporary Securities of any series are issued, the Company will cause Definitive Securities of that series to be prepared without unreasonable delay.
After the preparation of Definitive Securities of such series, the temporary Securities of such series shall be exchangeable for Definitive Securities of such series upon surrender of the temporary Securities of such series at the office or agency
of the Company in a Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of Definitive Securities of the same series and tenor of authorized denominations. Until so exchanged the temporary Securities of any series shall in all respects be entitled to the same benefits under this
Indenture as Definitive Securities of such series. 
 Section 3.5. Registration, Registration of Transfer and Exchange. 
 The Company shall cause to be kept at the office or agency of the Company in the Borough of Manhattan, the City of New York or in any other office or
agency of the Company in a Place of Payment required by Section 10.2 a register (the register maintained in such office being herein sometimes referred to as the “Security Register”) in which, subject to such reasonable regulations as
it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. The Trustee is hereby appointed as the initial “Security Registrar” for the purpose of registering Securities and transfers of
Securities as herein provided, and its corporate trust office in New York City, which, at the date hereof, is located at 59 Maiden Lane, New York, New York 10038, is the initial office or agency in the Borough of Manhattan where the Securities
Register will be maintained. The Company may at any time replace such Security Registrar, change such office or agency or act as its own Security Registrar. The Company will give prompt written notice to the Trustee of any change of the Security
Registrar or of the location of such office or agency. 
 Upon surrender for registration of transfer of any Security of any series at the
office or agency maintained pursuant to Section 10.2 for such purpose, the Company and, if applicable, the Guarantors shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or 

  

 26 

 
transferees, one or more new Securities, with an endorsement of the Securities Guarantee, if applicable, executed by the Guarantors, of the same series and
tenor, of any authorized denominations and of a like aggregate principal amount. 
 At the option of the Holder, Securities of any series
(except a Global Security) may be exchanged for other Securities of the same series and tenor, of any authorized denominations and of a like aggregate principal amount, upon surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company and, if applicable, the Guarantors shall execute and the Trustee shall authenticate and deliver, the Securities, with an endorsement of the Securities Guarantee, if applicable,
executed by the Guarantors, which the Holder making the exchange is entitled to receive. 
 All Securities issued upon any registration of
transfer or exchange of Securities shall be the valid obligations of the Company and, if applicable, the Guarantors evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange. 
 Every Security presented or surrendered for registration of transfer or for exchange shall (if so
required by the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in
writing. 
 No service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.4, Section 9.6 or Section 11.7
not involving any transfer. 
 The Company shall not be required (a) to issue, register the transfer of or exchange Securities of any
series during a period beginning at, the opening of business 15 days before the day of the mailing of a notice of redemption of Securities of that series selected for redemption under Section 11.3 and ending at the close of business on the day
of such mailing, or (b) to register the transfer of or exchange any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part. 
 Notwithstanding any other provisions of this Indenture and except as otherwise specified with respect to any particular series of Securities as
contemplated by Section 3.1, a Global Security representing all or a portion of the Securities of a series may not be transferred, except as a whole by the Depositary for such series to a nominee of such Depositary or by a nominee of such
Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary. Every Security authenticated and delivered upon
registration of, transfer of, or in exchange for or in lieu of, a Global Security shall be a Global Security except as provided in the two paragraphs immediately following. 
 If at any time the Depositary for any Securities of a series represented by one or more Global Securities notifies the Company that it is unwilling or
unable to continue as Depositary for such Securities or if at any time the Depositary for such Securities shall no longer be eligible to continue as Depositary under Section 3.1 or ceases to be a clearing agency registered under the Exchange
Act, the Company shall appoint a successor Depositary with respect to such Securities. If a successor Depositary for such Securities is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company’s election pursuant to Section 3.1 that such Securities be represented by one or more Global Securities shall no longer be effective and the Company and, if 

  

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applicable, the Guarantors will execute and the Trustee, upon receipt of a Company Order for the authentication and delivery of Definitive Securities of such
series, will authenticate and deliver, Securities, with an endorsement of the Securities Guarantee, if applicable, executed by the Guarantors, of such series in definitive registered form without coupons, in any authorized denominations, in an
aggregate principal amount equal to the principal amount of the Global Security or Securities representing such Securities in exchange for such Global Security or Securities registered in the names of such Persons as the Depositary shall direct.

 The Company may at any time and in its sole discretion determine that the Securities of any series issued in the form of one or more
Global Securities shall no longer be represented by a Global Security or Securities. In such event, the Company and, if applicable, the Guarantors will execute and the Trustee, upon receipt of a Company Order for the authentication and delivery of
the Definitive Securities of such series, will authenticate and deliver, Securities, with an endorsement of the Securities Guarantee, if applicable, executed by the Guarantors, of such series in definitive registered form without coupons, in any
authorized denominations, in an aggregate principal amount equal to the principal amount of the Global Security or Securities representing such Securities in exchange for such Global Security or Securities registered in the names of such Persons as
the Depositary shall direct. 
 If specified by the Company pursuant to Section 3.1 with respect to Securities represented by a Global
Security, the Depositary for such Global Security may surrender such Global Security in exchange in whole or in part for Securities of the same series and tenor in definitive registered form on such terms as are acceptable to the Company, the
Trustee and such Depositary. Thereupon, the Company and, if applicable, the Guarantors shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of Securities in definitive registered form, shall
authenticate and deliver, without service charge, 
 (a) to the Person specified by such Depositary a new Security or
Securities, with an endorsement of the Securities Guarantee, if applicable, executed by the Guarantors, of the same series and tenor, of any authorized denominations as requested by such Person, in an aggregate principal amount equal to and in
exchange for such Person’s beneficial interest in the Global Security; and 
 (b) to such Depositary a new Global
Security, with an endorsement of the Securities Guarantee, if applicable, executed by the Guarantors, in a denomination equal to the difference, if any, between the principal amount of the surrendered Global Security and the aggregate principal
amount of Securities authenticated and delivered pursuant to clause (a) above. 
 Every Person who takes or holds any beneficial
interest in a Global Security agrees that: 
 (a) the Company, the Guarantors (if applicable) and the Trustee may deal with
the Depositary as sole owner of the Global Security and as the authorized representative of such Person; 
 (b) such
Person’s rights in the Global Security shall be exercised only through the Depositary and shall be limited to those established by law and agreement between such Person and the Depositary and/or direct and indirect participants of the
Depositary; 
 (c) the Depositary and its participants make book-entry transfers of beneficial ownership among, and receive
and transmit distributions of principal and interest on the Global Securities to, such Persons in accordance with their own procedures; and 
  

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 (d) none of the Company, the Guarantors (if applicable), the Trustee, nor any agent of
any of them will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests. 
 Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities. 
 If any mutilated Security is surrendered to the Trustee, together with, in proper cases, such security or indemnity as may be required by the Company, the
Guarantors (if applicable) or the Trustee to save each of them and any agent of any of them harmless, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security, with an endorsement of the Securities
Guarantee, if applicable, executed by the Guarantors, of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
 If there shall be delivered to the Company, the Guarantors (if applicable) and the Trustee (a) evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such security or
indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company and, if
applicable, the Guarantors shall execute and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security, with an endorsement of the Securities Guarantee, if applicable,
executed by the Guarantors, of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
 Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company and, if applicable, the Guarantors, regardless
of whether the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued
hereunder. 
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 Section 3.7. Payment of Interest; Interest Rights
Preserved. 
 Except as otherwise provided as contemplated by Section 3.1 with respect to any series of Securities, interest on any
Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest. 
 Any interest on any Security of any series which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be
paid by the Company, at its election in each case, as provided in clause (a) or (b) below: 
  

 29 

 (a) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in
trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon, the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and
at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at his address as it
appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b).

 (b) The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to
this clause, such manner of payment shall be deemed practicable by the Trustee. 
 Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 
 Section 3.8. Persons Deemed Owners. 
 Except as
otherwise provided as contemplated by Section 3.1 with respect to any series of Securities, prior to due presentment of a Security for registration of transfer, the Company, the Trustee and, if applicable, the Guarantors and any agent thereof
may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of and any premium and (subject to Section 3.5 and Section 3.7) any interest on such Security
and for all other purposes whatsoever, regardless of whether such Security be overdue, and none of the Company, the Trustee nor, if applicable, the Guarantors nor any agent of any of them shall be affected by notice to the contrary. 
 No holder of any beneficial interest in any Global Security held on its behalf by a Depositary shall have any rights under this Indenture with respect to
such Global Security, and such Depositary may be treated by the Company, the Trustee, and, if applicable, the Guarantors and any agent of thereof as the owner of such Global Security for all purposes whatsoever. 
  

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 Section 3.9. Cancellation. 
 All Securities surrendered for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee and shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly canceled by
the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of in
accordance with its customary practices, and the Trustee shall thereafter deliver to the Company a certificate with respect to such disposition from time to time upon written request. 
 Section 3.10. Computation of Interest. 
 Except as otherwise specified as contemplated by
Section 3.1 for Securities of any series, interest on the Securities of each series shall be computed on the basis of a year of twelve 30-day months. 
 Section 3.11. CUSIP or CINS Numbers. 
 The Company in issuing the Securities may use “CUSIP” or
“CINS” numbers (if then generally in use, and in addition to the other identification numbers printed on the Securities), and, if so, the Trustee shall use “CUSIP” or “CINS” numbers in notices of redemption as a
convenience to Holders; provided, however, that any such notice may state that no representation is made as to the correctness of such “CUSIP” or “CINS” numbers either as printed on the Securities or as contained in
any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such “CUSIP” or “CINS”
numbers. 
 ARTICLE FOUR 
 SATISFACTION AND DISCHARGE 
 Section 4.1. Satisfaction and Discharge of Indenture. 
 This Indenture shall cease to be of further effect and will be discharged with respect to the Securities of any series (except as to any surviving rights
of registration of transfer or exchange of Securities and certain rights of the Trustee, in each case, herein expressly provided for), and the Trustee, upon Company Request and at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such Securities, when: 
 (a) either 
 (i) all such Securities theretofore authenticated and delivered (other than (A) such Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 3.6, and (B) such Securities 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 10.3) have been delivered to the Trustee for cancellation; or 
  

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 (ii) all such Securities not theretofore delivered to the Trustee for cancellation

 (A) have become due and payable, or 
 (B) will become due and payable at their Stated Maturity within one year, or 
 (C) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company, 
 and the Company, in the case of (A), (B) or (C) above, has
deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose an amount sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for
principal (and premium, if any) and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be, together with instructions from the Company
irrevocably directing the Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be; 
 (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to such Securities; and 
 (c) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, which, taken together, state that all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture with respect to such Securities have been complied with. 
 Notwithstanding the satisfaction and discharge of this Indenture with
respect to the Securities of any series, (x) the obligations of the Company to the Trustee under Section 6.7, the obligations of the Trustee to any Authenticating Agent under Section 6.14 and the right of the Trustee to resign under
Section 6.10 shall survive, and (y) if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the obligations of the Company and the Trustee under Section 4.2, Section 6.6 and
Section 10.2 and the last paragraph of Section 10.3 shall survive. 
 Section 4.2. Application of Trust Money. 
 Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the Trustee pursuant to Section 4.1 shall be held in
trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal and any premium and interest for whose payment such money has been deposited with the Trustee. 
  

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 ARTICLE FIVE 
 REMEDIES 
 Section 5.1. Events of Default. 
 “Event of Default”, wherever used herein with respect to Securities of any series, means any one of the following events (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):

 (a) default in the payment of any interest upon any Security of that series when it becomes due and payable, and
continuance of such default for a period of 30 days; or 
 (b) default in the payment of the principal of (or premium, if any,
on) any Security of that series at its Maturity; or 
 (c) default in the deposit of any sinking fund payment when due; or

 (d) default in the performance, or breach, of the covenant set forth in Section 8.1; or 
 (e) default in the performance, or breach, of any covenant in this Indenture (other than the covenant in Section 8.1 or any other
covenant a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly been included in this Indenture solely for the benefit of series of Securities other than that series), and
continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 
 (f) the Company or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case
or proceeding, (ii) consents to the entry of any order for relief against it in an involuntary case or proceeding, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, (iv) makes a
general assignment for the benefit of its creditors, (v) consents to or acquiesces in the institution of a bankruptcy or an insolvency proceeding against it, (vi) takes any corporate action to authorize or effect any of the foregoing, or
(vii) takes any comparable action under any foreign laws relating to insolvency; or 
 (g) a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that (i) is for relief against the Company or any Significant Subsidiary in an involuntary case, (ii) appoints a Custodian of the Company or any Significant Subsidiary for all
or substantially all of its property, or (iii) orders the liquidation or winding up of the Company or any Significant Subsidiary; and the order or decree remains unstayed and in effect for 30 consecutive days; or 
 (h) any other Event of Default provided with respect to Securities of that series in accordance with Section 3.1. 
 Section 5.2. Acceleration of Maturity; Rescission and Annulment. 
 If an Event of Default with respect to Securities of any series at the time Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of at least 25% in aggregate principal 

  

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amount of the Outstanding Securities of that series may declare the principal amount (or, if the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount as may be specified in the terms of that series), together with any accrued and unpaid interest thereon, of all of the Securities of that series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount), together with any accrued and unpaid interest thereon, shall become immediately due and payable.
Notwithstanding the foregoing, if an Event of Default specified in clause (f) or (g) of Section 5.1 occurs, the Securities of any series at the time Outstanding shall be due and payable immediately without further action or notice.

 At any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article Five provided, the Holders of a majority in principal amount of the Outstanding Securities of that series, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if: 
 (a) the Company or, if applicable, one or more
of the Guarantors has paid or deposited with the Trustee a sum sufficient to pay: 
 (i) all overdue interest on all
Securities of that series, 
 (ii) the principal of (and premium, if any, on) any Securities of that series which have become
due otherwise than by such declaration of acceleration and any interest thereon at the rate or rates prescribed therefor in such Securities, 
 (iii) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such Securities, and 
 (iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel; and 
 (b) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13. 
 No such rescission shall affect any subsequent default or impair any right consequent thereon. 
 Section 5.3.
Collection of Indebtedness and Suits for Enforcement by Trustee. 
 The Company covenants that if: 
 (a) default is made in the payment of any installment of interest on any Security when such interest becomes due and payable and such
default continues for a period of 30 days, or 
 (b) default is made in the payment of the principal of (or premium, if any,
on) any Security at the Maturity thereof, 
 the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the
whole amount then due and payable on such Securities for principal and any premium and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue 

  

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principal and any premium and on any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or, if applicable, the Guarantors or any other obligor upon such Securities
and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or, if applicable, the Guarantors or any other obligor upon such Securities, wherever situated. 
 If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 
 Section 5.4.
Trustee May File Proofs of Claim. 
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to the Company or, if applicable, any Guarantor or any other obligor upon the Securities, their property or their creditors, the Trustee (irrespective of whether the
principal of the Securities 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 on the Company or, if applicable, the Guarantors for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, 
 (a) to
file and prove a claim for the whole amount of principal (and premium, if any) and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and 
 (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee and, if the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 6.7. 
 No provision of this Indenture 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, compromise, arrangement, adjustment or composition affecting the Securities or, if applicable, the Securities Guarantee
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; provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a trustee
in bankruptcy or similar official and be a member of a creditors’ or other similar committee. 
  

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 Section 5.5. Trustee May Enforce Claims Without Possession of Securities. 
 All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered. 
 Section 5.6. Application of Money Collected. 
 Any money collected by the Trustee pursuant to this Article Five shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or any premium
or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 FIRST: To the payment of all amounts due the Trustee under Section 6.7; 
 SECOND: To the
payment of the amounts then due and unpaid for principal of and any premium and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Securities for principal and any premium and interest, respectively; and 
 THIRD: The
balance, if any, to the Company. 
 Section 5.7. Limitation on Suits. 
 No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture
(including, if applicable, the Securities Guarantee), or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
 (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that series; 
 (b) the Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (c) such
Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; 
 (d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding;
and 
 (e) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of the Outstanding Securities of that series; 
 it being understood and intended that no one or more of such
Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the 

  

 36 

 
rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under
this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
 Section 5.8. Unconditional Right
of Holders to Receive Principal, Premium and Interest. 
 Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and any premium and (subject to Section 3.5 and Section 3.7) interest on such Security on the Stated Maturity or Maturities
expressed in such Security (or, in the case of redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
 Section 5.9. Restoration of Rights and Remedies. 
 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such
Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Guarantors, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights
and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 
 Section 5.10. Rights and Remedies
Cumulative. 
 Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities
in the last paragraph of Section 3.6, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy. 
 Section 5.11. Delay or Omission Not Waiver. 
 To fullest extent permitted by applicable law, no delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article Five or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be. 
 Section 5.12. Control by Holders. 
 The Holders of not less than a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of
such series; provided, however, that: 
 (a) such direction shall not be in conflict with any rule of law or
with this Indenture; 
  

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 (b) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and 
 (c) subject to the provisions of Section 6.1, the Trustee shall have the right
to decline to follow any such direction if the Trustee in good faith shall determine that the proceeding so directed would involve the Trustee in personal liability. 
 Section 5.13. Waiver of Past Defaults. 
 By written notice to the Company and the Trustee, the
Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to such series and its consequences,
except: 
 (a) a continuing default in the payment of the principal of or any premium or interest on any Security of such
series, or 
 (b) a default in respect of a covenant or provision hereof which under Article Nine cannot be modified or
amended without the consent of the Holder of each Outstanding Security of such series affected. 
 Upon any such waiver, 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 shall extend to any subsequent or other default or impair any right consequent thereon. 
 Section 5.14. Undertaking for Costs. 
 All
parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant, other than the Trustee, in such suit of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this
Section 5.14 shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Security on or after the Stated Maturity or Maturities expressed in such Security (or,
in the case of redemption, on or after the Redemption Date). 
 Section 5.15. Waiver of Stay or Extension Laws. 
 Each of the Company and the Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and each of the Company and the
Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted. 
  

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 ARTICLE SIX 
 THE TRUSTEE 
 Section 6.1. Certain Duties and Responsibilities. 
 (a) Except during the continuance of an Event of Default, 
 (i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and as are provided
by the Trust Indenture Act, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
 (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine
whether they conform to the requirements of this Indenture. 
 (b) In case an Event of Default has occurred and is continuing,
the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

 (c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act, or its own willful misconduct, except that 
 (i) this Subsection shall not be construed to
limit the effect of Subsection (a) of this Section; 
 (ii) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
 (iii) 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 a majority in principal amount of the Outstanding
Securities of any series, given pursuant to Section 5.12, relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture with respect to the Securities of such series; and 
 (iv) no provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  

 39 

 (d) Regardless of whether therein expressly so 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. 
 Section 6.2. Notice of Defaults. 
 Within 90 days after the occurrence of any Default hereunder with respect to the
Securities of any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as their names and addresses appear in the Security Register, notice of such Default hereunder known to the Trustee, unless such Default shall
have been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of or any premium or interest on any Security of such series or in the payment of any sinking fund installment with
respect to Securities of such series, the Trustee may withhold from Holders of Securities notice of any continuing Default or Event of Default if the Trustee in good faith determines that the withholding of such notice is in the interest of the
Holders of Securities of such series; and, provided, further, that in the case of any Default of the character specified in Section 5.1(c) with respect to Securities of such series, no such notice to Holders shall be given until
at least 90 days after the occurrence thereof and that in the case of any Default of the character specified in Section 5.1(e) with respect to Securities of such series, no such notice to Holders shall be given until at least 180 days after the
occurrence thereof. 
 Section 6.3. Certain Rights of Trustee. 
 Subject to the provisions of Section 6.1: 
 (a) the Trustee may conclusively rely and
shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper
or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) any
request or direction of the Company or a Guarantor mentioned herein shall be sufficiently evidenced by a Company Request or Company Order (other than delivery of any Security to the Trustee for authentication and delivery pursuant to
Section 3.3, which shall be sufficiently evidenced as provided therein) and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) shall be entitled to receive and may, in the absence of bad faith on its part, rely upon an Officer’s Certificate;

 (d) the Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
 (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; 
  

 40 

 (f) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; 
 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder and shall not be responsible for
the supervision of officers and employees of such agents or attorneys; 
 (h) the Trustee may request that the Company and, if
applicable, the Guarantors deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be
signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded; 
 (i) the Trustee shall be entitled to the rights and protections afforded to the Trustee pursuant to this Article Six in acting as a
Paying Agent or Security Registrar hereunder; and 
 (j) the Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Indenture. 
 Section 6.4. Not Responsible for Recitals or Issuance of Securities. 
 The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the
Company or, if applicable, the Guarantors, and the Trustee or any Authenticating Agent assumes no responsibility for their correctness. Neither the Trustee nor any Authenticating Agent makes any representations as to the validity or sufficiency of
this Indenture or of the Securities. The Trustee or any Authenticating Agent shall not be accountable for the use or application by the Company of Securities or the proceeds thereof. 
 Section 6.5. May Hold Securities. 
 The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company or, if applicable, any Guarantor, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 310(b) and 311 of the Trust Indenture Act and
Section 6.8, Section 6.9 and Section 6.13, may otherwise deal with the Company or, if applicable, the Guarantors with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such
other agent. 
 Section 6.6. Money Held in Trust. 
 Money 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 received by it hereunder
except as otherwise agreed in writing with the Company or, if applicable, one or more of the Guarantors. 
  

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 Section 6.7. Compensation and Reimbursement. 
 The Company agrees: 
 (a) to
pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
 (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as
may be attributable to its negligence or bad faith; and 
 (c) to indemnify each of the Trustee and its officers, directors,
agents and employees for, and to hold it harmless against, any loss, liability or expense incurred without negligence or willful misconduct on its part, arising out of or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
 As security for the performance of the obligations of the Company under this Section the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (and premium, if any) or interest on particular Securities. 
 Without limiting any rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.1(f) or Section 5.1(g), the expenses (including the reasonable charges and expenses of its counsel) and the compensation for the services of the Trustee are intended to constitute expenses of
administration under any applicable Bankruptcy Law. 
 The provisions of this Section 6.7 shall survive the satisfaction and discharge
of this Indenture and the Legal Defeasance of the Securities. 
 Section 6.8. Disqualification; Conflicting Interests. 
 Reference is made to Section 310(b) of the Trust Indenture Act. There shall be excluded from the operation of Section 310(b)(1) of the Trust
Indenture Act this Indenture with respect to the Securities of more than one series. 
 Section 6.9. Corporate Trustee Required; Eligibility.

 There shall at all times be a Trustee hereunder which shall be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus required by the Trust Indenture Act, subject to supervision or examination by
Federal or State authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements 

  

 42 

 
of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be
its combined capital and surplus as set forth in its most recent report of condition so published. The Trustee shall not be an obligor upon the Securities or an Affiliate thereof. 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 Six. 
 Section 6.10. Resignation and Removal; Appointment of Successor. 
 (a) No resignation or removal of the
Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 6.11. 
 (b) The Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by Section 6.11 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 
 (c) The
Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to the Company. 
 (d) If at any time: 
 (i) the Trustee shall fail to comply with Section 310(b) of the Trust Indenture Act after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or 
 (ii) the Trustee shall cease to be eligible under Section 6.9 and shall fail to resign after written request therefor by the Company
or by any such Holder, or 
 (iii) 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, then, in any such
case, (A) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (B) subject to Section 5.14, any Holder who has been a bona fide Holder of a Security 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 with respect to all Securities and the appointment of a successor Trustee or Trustees. 
 (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any
cause, with respect to the Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series) and shall comply with the applicable
requirements of Section 6.11. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a 

  

 43 

 
successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 6.11, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so appointed by the
Company or the Holders and accepted appointment in the manner required by Section 6.11, any Holder who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 
 (f) The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any
series to all Holders of Securities of such series in the manner provided in Section 1.7. Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.

 Section 6.11. Acceptance of Appointment by Successor. 
 (a) In case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed
shall execute, acknowledge and deliver to the Company, the Guarantors (if applicable) and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or, if applicable, any Guarantor or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee hereunder. 
 (b) In case of the appointment hereunder
of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the Guarantors (if applicable), the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall
execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (ii) if the retiring Trustee is not retiring
with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of
the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to
the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the 

  

 44 

 
retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the
Company, any Guarantor (if applicable) or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates. 
 (c) Upon request of any such successor
Trustee, the Company and, if applicable, the Guarantors shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or
(b) of this Section, as the case may be. 
 (d) No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under this Article and the Trust Indenture Act. 
 Section 6.12. Merger,
Conversion, Consolidation or Succession to Business. 
 Any corporation into which the Trustee may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article Six, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case
any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 
 Section 6.13. Preferential Collection of
Claims Against Company. 
 Reference is made to Section 311 of the Trust Indenture Act. For purposes of Section 311(b) of the
Trust Indenture Act, 
 (a) the term “cash transaction” means any transaction in which full payment for goods or
securities sold is made within seven days after delivery of the goods or securities in currency or in checks or other orders drawn upon banks or bankers and payable upon demand; 
 (b) the term “self-liquidating paper” means any draft, bill of exchange, acceptance or obligation which is made, drawn,
negotiated or incurred by the Company or, if applicable, any Guarantor for the purpose of financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by documents evidencing title
to, possession of, or a lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods, wares or merchandise previously constituting the security, provided the security is received by the Trustee
simultaneously with the creation of the creditor relationship with the Company or, if applicable, such Guarantor arising from the making, drawing, negotiating or incurring of the draft, bill of exchange, acceptance or obligation. 
 Section 6.14. Appointment of Authenticating Agent. 
 The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof or pursuant to 

  

 45 

 
Section 3.6, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as
if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall
at all times be a corporation organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising
or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent 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 an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section. 
 Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be
an Authenticating Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 
 An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company and, if applicable, the Guarantors. The
Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company and, if applicable, the Guarantors. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and, if
applicable, the Guarantors and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating Agent will serve, as their names and addresses
appear in the Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section. 
 Except
with respect to an Authenticating Agent appointed at the request of the Company or, if applicable, the Guarantors, the Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this
Section 6.14, and the Trustee shall be entitled to be reimbursed by the Company or, if applicable, the Guarantors for such payments, subject to the provisions of Section 6.7. 
 If an appointment with respect to one or more series is made pursuant to this Section 6.14, the Securities of such series may have endorsed thereon,
in addition to the Trustee’s certificate of authentication, an alternate certificate of authentication in the following form: 
  

 46 

 This is one of the Securities of the series designated therein referred to in the within-mentioned
Indenture. 
  

					
	  
	 	,
	As Trustee	 	
			
	By:	 	  
	 	
		 	As Authenticating Agent	 	
			
	By:	 	  
	 	
		 	Authorized Officer	 	

 ARTICLE SEVEN 
 HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY 
 Section 7.1. Company to
Furnish Trustee Names and Addresses of Holders. 
 The Company will furnish or cause to be furnished to the Trustee: 
 (a) semi-annually, not more than 15 days after each Regular Record Date for a series of Securities, a list for such series of Securities,
in such form as the Trustee may reasonably require, of the names and addresses of the Holders of Securities of such series as of such Regular Record Date, and 
 (b) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list
of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however, that if and so long as the Trustee shall be the Security Registrar, no such list need be furnished with respect
to such series of Securities. 
 Section 7.2. Preservation of Information; Communications to Holders. 
 (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the
most recent list furnished to the Trustee as provided in Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished. 
 (b) If three or more Holders (herein referred to as
“applicants”) apply in writing to the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned a Security for a period of at least six months preceding the date of such application, and such application
states that the applicants desire to communicate with other Holders with respect to their rights under this Indenture or under the Securities and is accompanied by a copy of the form of proxy or other communication which such applicants propose to
transmit, then the Trustee shall, within five business days after the receipt of such application, at its election, either 
 (i) afford such applicants access to the information preserved at the time by the Trustee in accordance with Section 7.2(a), or 
 (ii) inform such applicants as to the approximate number of Holders whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 7.2(a), and as to the
approximate cost of mailing to such Holders the form of proxy or other communication, if any, specified in such application. 
  

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 If the Trustee shall elect not to afford such applicants access to such information, the
Trustee shall, upon the written request of such applicants, mail to each Holder whose name and address appear in the information preserved at the time by the Trustee in accordance with Section 7.2(a) a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days
after such tender the Trustee shall mail to such applicants and file with the SEC, together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best
interest of the Holders or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If the SEC, after opportunity for a hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, the SEC shall find, after notice and opportunity for hearing, that all the objections so sustained have been met
and shall enter an order so declaring, the Trustee shall mail copies of such material to all such Holders with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application. 
 (c) Every Holder of Securities, by receiving and
holding the same, agrees with the Company, the Guarantors (if applicable) and the Trustee that none of the Company, the Guarantors (if applicable) nor the Trustee nor any agent of any of them shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders in accordance with Section 7.2(b), regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under Section 7.2(b). 
 Section 7.3. Reports by Trustee. 
 Any Trustee’s report required pursuant to Section 313(a) of the Trust Indenture Act shall be dated as of May 15, and shall be transmitted
within 60 days after May 15 of each year (but in all events at intervals of not more than 12 months), commencing with the year 20__, by mail to all Holders, as their names and addresses appear in the Security Register. A copy of each such
report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities are listed, with the SEC and with the Company. The Company will notify the Trustee when any Securities are listed
on any stock exchange. 
 Section 7.4. Reports by Company. 
 The Company shall: 
 (a) file with the Trustee, within 15 days after the Company files the
same with the SEC, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may from time to time by rules and regulations prescribe) which the Company may be
required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to either of said Sections, then it shall file with the
Trustee and the 

  

 48 

 
SEC, in accordance with rules and regulations prescribed from time to time by the SEC, such of the supplementary and periodic information, documents and
reports which may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations; 
 (b) file with the Trustee and the SEC, in accordance with rules and regulations prescribed from time to time by the SEC, such additional
information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and 
 (c) transmit by mail to all Holders, as their names and addresses appear in the Security Register, within 30 days after the filing thereof
with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to clauses (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the
SEC. 
 ARTICLE EIGHT 
 CONSOLIDATION, AMALGAMATION, MERGER AND SALE 
 Section 8.1. Company and Guarantors May Consolidate, Etc., Only on Certain
Terms. 
 Neither the Company nor any Guarantor shall consolidate or merge with or into any other Person or sell, convey, transfer, lease
or otherwise dispose of all or substantially all of the properties and assets of the Company and, if applicable, the Guarantors on a consolidated basis to any other Person, and shall not permit any Person to consolidate or merge into the Company or
any Guarantor, unless: 
 (a) either: (i) the Company or such Guarantor is the surviving corporation; or (ii) the
Person formed by or surviving any such consolidation, amalgamation or merger or resulting from such conversion (if other than the Company or such Guarantor) or to which such sale, assignment, transfer, conveyance or other disposition has been made
is a corporation, limited liability company or limited partnership organized or existing under the laws of the United States, any state of the United States or the District of Columbia; 
 (b) the Person formed by or surviving any such conversion, consolidation, amalgamation or merger (if other than the Company or such
Guarantor) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Company or such Guarantor under the Securities and this Indenture pursuant to agreements reasonably
satisfactory to the Trustee; provided that, unless such Person is a corporation, a corporate co-issuer of the Securities will be added to this Indenture by agreements reasonably satisfactory to the Trustee; 
 (c) immediately before and after giving pro forma effect to such transaction, no Event of Default, and no event which, after notice or
lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and 
 (d) the Company has
delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, merger, conveyance, sale, transfer or lease and such supplemental indenture, if any, comply with this
Article Eight and that all conditions precedent herein provided for relating to such transaction have been complied with. 
  

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 Notwithstanding the foregoing, this Article Eight shall not apply to any consolidation or merger of
any Guarantor with or into any other Person or to any sale, conveyance, transfer, lease or other disposition of all or substantially all of its assets to any other Person if (i) no Securities Guarantees are then outstanding or (ii) the
terms of all outstanding Securities Guarantees otherwise permit such transaction and provide for the release of such Guarantor of its obligations under such Securities Guarantee as a result of such transaction. 
 Section 8.2. Successor Substituted. 
 Upon any
consolidation or merger of the Company with or into any other Person or any sale, conveyance, transfer, lease or other disposition of all or substantially all of the properties and assets of the Company and, if applicable, the Guarantors on a
consolidated basis in accordance with Section 8.1, the successor or resulting Person formed by or resulting upon such consolidation or merger (if other than the Company) or to which such sale, conveyance, transfer, lease or other disposition is
made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of a
lease, the predecessor Company and each of the Guarantors shall be relieved of all obligations and covenants under this Indenture and the Securities. 
 ARTICLE NINE 
 AMENDMENT, SUPPLEMENT AND WAIVER 
 Section 9.1. Without Consent of Holders. 
 The
Company, the Guarantors and the Trustee may amend or supplement this indenture, the Securities Guarantees or the Securities without the consent of any holder of a Security: 
 (a) to cure any ambiguity or to correct or supplement any provision herein that may be inconsistent with any other provision herein in a
manner that does not adversely affect the rights of any Holder of Securities in any material respect; or 
 (b) to evidence
the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein and, to the extent applicable, to the Securities; or 
 (c) to provide for uncertificated Securities in addition to or in place of certificated Securities; provided that the
uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code, or in the manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; or 
 (d) to add a Securities Guarantee and cause any Person to become a Guarantor, and/or to evidence the succession of another Person to a
Guarantor and the assumption by any such successor of the Securities Guarantee of such Guarantor herein and, to the extent applicable, endorsed upon any Securities of any series; or 
 (e) to secure the Securities of any series; or 
 (f) to add to the covenants of the Company such further covenants, restrictions, conditions or provisions as the Company shall consider to
be appropriate for the benefit of the Holders of all or any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of Securities, stating that such covenants 

  

 50 

 
are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company and to make the
occurrence, or the occurrence and continuance, of a Default in any such additional covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as
herein set forth; provided, that in respect of any such additional covenant, restriction, condition or provision such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer
than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right of the Holders of a
majority in aggregate principal amount of the Securities of such series to waive such an Event of Default; or 
 (g) to make
any change to any provision of this Indenture that does not adversely affect the rights or interests of any Holder of Securities; or 
 (h) to provide for the issuance of additional Securities in accordance with the provisions set forth in this Indenture on the date of this Indenture; or 
 (i) to add any additional Defaults or Events of Default in respect of all or any series of Securities; or 
 (j) to add to, change or eliminate any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate
the issuance of Securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons; or 
 (k) to change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become effective only when there is no Security Outstanding of any series created prior to the execution of such
supplemental indenture that is entitled to the benefit of such provision; or 
 (l) to establish the form or terms of
Securities of any series as permitted by Section 2.1 and Section 3.1, including to reopen any series of any Securities as permitted under Section 3.1; or 
 (m) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or
more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 6.11(b);
or 
 (n) to conform the text of this Indenture (and/or any supplemental indenture) or any debt securities issued thereunder
to any provision of a description of such debt securities appearing in a prospectus or prospectus supplement or an offering memorandum or offering circular to the extent that such provision was intended to be a verbatim recreation of a provision of
the indenture (and/or any supplemental indenture) or any debt securities issued thereunder; or 
 (o) to modify, eliminate or
add to the provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the Trust Indenture Act or under any similar federal statute subsequently enacted, and to add to this Indenture such
other provisions as may be expressly required under the Trust Indenture Act. 
  

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 After an amendment under this Section 9.1 becomes effective, the Company shall mail to Holders a
notice briefly describing such amendment. The failure to give such notice to Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section 9.1. 
 Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental
indenture, the Trustee is hereby authorized to join with the Company and any Guarantor in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations that may be therein contained and to accept the
conveyance, transfer, assignment, mortgage, charge or pledge of any property thereunder, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise. 
 Section 9.2. With Consent of Holders. 
 The Company and the Trustee may amend or supplement this Indenture, the Securities Guarantees and the Securities with the consent of the Holders of a majority in aggregate principal amount of the Outstanding
Securities of each series of Securities affected by such amendment or supplemental indenture, with each such series voting as a separate class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or
exchange offer for Securities) and, subject to Section 5.8 and Section 5.13 hereof, any existing Default or Event of Default or compliance with any provision of this Indenture, the Securities Guarantees or the Securities may be waived with
respect to each series of Securities with the consent of the Holders of a majority in principal amount of the Outstanding Securities of such series voting as a separate class (including consents obtained in connection with a purchase of, or tender
offer or exchange offer for, Securities). 
 Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Securities as aforesaid, and upon receipt by the Trustee of the
documents described in Section 6.3 hereof, the Trustee will join with the Company and the Guarantors in the execution of such amended or supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but will not be obligated to, enter into such amended or supplemental Indenture. 
 It is not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed amendment
or waiver, but it is sufficient if such consent approves the substance of the proposed amendment or waiver. 
 After an amendment, supplement
or waiver under this Section 9.2 becomes effective, the Company will mail to the Holders of Securities affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any
defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver. Subject to Section 5.8 and Section 5.13 hereof, the application of or compliance with, either generally or
in any particular instance, of any provision of this Indenture, the Securities or the Securities Guarantees may be waived as to each series of Securities by the Holders of a majority in aggregate principal amount of the Outstanding Securities of
such series. However, without the consent of each Holder affected, an amendment or waiver under this Section 9.2 may not (with respect to any Securities held by a non-consenting Holder): 
 (a) change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or 

  

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any premium payable upon the redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2, or change any Place of Payment where, or the coin or currency in which, any Security or any premium or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or 
 (b) reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for
any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture, or 

(c) modify any of the provisions of this Section 9.2, Section 5.8, Section 5.13 or Section 10.6, except to increase
any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby, provided, however, that this clause
(c) shall not be deemed to require the consent of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of
Section 6.11(b) and Section 9.1(i); or 
 (d) waive a redemption payment with respect to any Security; provided,
however, that any purchase or repurchase of Securities shall not be deemed a redemption of the Securities; or 
 (e)
release any Guarantor from any of its obligations under its Securities Guarantee or this Indenture, except in accordance with the terms of this Indenture (as supplemented by any supplemental indenture); or 
 (f) make any change in the foregoing amendment and waiver provisions. 
 A supplemental indenture that changes or eliminates any covenant or other provision of this Indenture that has expressly been included solely for the
benefit of one or more particular series of Securities, or that modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Securities of any other series. 
 It shall not be necessary for any Act of Holders under this Section 9.2 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 9.3.
Execution of Supplemental Indentures. 
 In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise. 
  

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 Section 9.4. Effect of Supplemental Indentures. 
 Upon the execution of any supplemental indenture under this Article Nine, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 
 Section 9.5. Conformity with Trust Indenture Act. 
 Every supplemental indenture executed pursuant to this Article Nine shall conform to the requirements of the Trust Indenture Act as then in effect. 
 Section 9.6. Reference in Securities to Supplemental Indentures. 
 Securities of any series authenticated and delivered
after the execution of any supplemental indenture pursuant to this Article Nine may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series. 
 ARTICLE TEN 
 COVENANTS 
 Section 10.1. Payment of
Principal, Premium and Interest. 
 The Company covenants and agrees for the benefit of each series of Securities that it will duly and
punctually pay the principal of and any premium and interest on the Securities of that series in accordance with the terms of the Securities and this Indenture. 
 Section 10.2. Maintenance of Office or Agency. 
 The Company will maintain in the Borough of Manhattan, The City of New
York, an office or agency (which may be an office of the Trustee or Registrar or agent of the Trustee or Registrar) where Securities of that series may be presented or surrendered for payment, where Securities of that series may be surrendered for
registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of that series 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 of the Trustee. 
 The Company may also from time to time designate one or more
other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, 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. 
  

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 Except as otherwise specified with respect to a series of Securities as contemplated by Section 3.1,
the Company hereby initially designates the office of the Trustee located at 59 Maiden Lane, New York, New York 10038, as the Company’s office or agency for each such purpose for each series of Securities. 
 Section 10.3. Money for Securities Payments to Be Held in Trust. 
 If the Company shall at any time act as its own Paying Agent, with respect to any series of Securities, it will, on or before each due date of the principal of and any premium or interest on any of the Securities of
that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and will promptly notify the Trustee of its action or failure so to act. 
 Whenever the Company shall have one or more
Paying Agents for any series of Securities, it will, prior to each due date of the principal of and any premium or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal and any premium or
interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act. For purposes of this Section 10.3, should a due date for principal of and any premium or interest on, or sinking fund payment with respect to any series of Securities not be on a Business Day, such payment shall be due on the
next Business Day without any interest for the period from the due date until such Business Day. 
 The Company will cause each Paying Agent
for any series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 
 (a) hold all sums held by it for the payment of the principal of and any premium or interest on Securities of that series in trust for the
benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 
 (b) give the Trustee notice of any Default by the Company (or any other obligor upon the Securities of that series) in the making of any payment of principal and any premium or interest on the Securities of that series; and 
 (c) at any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay to the Trustee all sums
so held in trust by such Paying Agent. 
 The Company and, if applicable, the Guarantors may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

 Subject to any applicable escheat or abandoned property laws, any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of and any premium or interest on any Security of any series and remaining unclaimed for one year after 

  

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such principal and any premium or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be
published once, in 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 remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
 Section 10.4. Existence. 
 Subject to Article Eight, the Company and, if any Securities of a
series to which Article Fourteen has been made applicable are Outstanding, each Guarantor will do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and
franchises; provided, however, that the Company and, if applicable, each Guarantor shall not be required to preserve any such right or franchise if the Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company or such Guarantor, as the case may be. 
 Section 10.5. Statement by Officers as to
Default. 
 Annually, within 150 days after the close of each fiscal year beginning with the first fiscal year during which one or more
series of Securities are Outstanding, the Company and, if any Securities of a series to which Article Fourteen has been made applicable are Outstanding, each Guarantor will deliver to the Trustee a brief certificate (which need not include the
statements set forth in Section 1.3) from the principal executive officer, principal financial officer or principal accounting officer of the Company and, if applicable, such Guarantor as to his or her knowledge of the Company’s or such
Guarantor’s, as the case may be, compliance (without regard to any period of grace or requirement of notice provided herein) with all conditions and covenants under the Indenture and, if the Company or such Guarantor, as the case may be, shall
be in Default, specifying all such Defaults and the nature and status thereof of which such officer has knowledge. 
 Section 10.6. Additional
Amounts. 
 If the Securities of a series provide for the payment of additional amounts (as provided in Section 3.1(o)), at least 10
days prior to the first Interest Payment Date with respect to that series of Securities and at least 10 days prior to each date of payment of principal of, premium, if any, or interest on the Securities of that series if there has been a change with
respect to the matters set forth in the below-mentioned Officer’s Certificate, the Company shall furnish to the Trustee and the principal Paying Agent, if other than the Trustee, an Officer’s Certificate instructing the Trustee and such
Paying Agent whether such payment of principal of, premium, if any, or interest on the Securities of that series shall be made to holders of the Securities of that series without withholding or deduction for or on account of any tax, assessment or
other governmental charge described in the Securities of that series. If any such withholding or deduction shall be required, then such Officer’s Certificate shall specify by country the amount, if any, required to be withheld or deducted on
such payments to such holders and shall certify the fact that additional amounts will be payable and the amounts so payable to each holder, and the Company shall pay to the Trustee or such Paying Agent the additional amounts required to be paid by
this Section. The Company covenants to indemnify the Trustee and any Paying Agent for, and to hold them harmless 

  

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against, any loss, liability or expense reasonably incurred without negligence or bad faith on their part arising out of or in connection with actions taken
or omitted by any of them in reliance on any Officer’s Certificate furnished pursuant to this Section 10.6. 
 Whenever in this
Indenture there is mentioned, in any context, the payment of the principal of or any premium, interest or any other amounts on, or in respect of, any Securities of any series, such mention shall be deemed to include mention of the payment of
additional amounts provided by the terms of such series established hereby or pursuant hereto to the extent that, in such context, additional amounts are, were or would be payable in respect thereof pursuant to such terms, and express mention of the
payment of additional amounts (if applicable) in any provision hereof shall not be construed as excluding the payment of additional amounts in those provisions hereof where such express mention is not made. 
 ARTICLE ELEVEN 
 REDEMPTION
OF SECURITIES 
 Section 11.1. Applicability of Article. 
 Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 3.1 for Securities of
any series) in accordance with this Article Eleven. 
 Section 11.2. Election to Redeem; Notice to Trustee. 
 The election of the Company to redeem any Securities shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company of
less than all the Securities of any series, the Company shall, at least 15 days prior to the last date for the giving of notice of such redemption (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date and of the principal amount of Securities of such series to be redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of Securities (a) prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this Indenture or (b) pursuant to an election of the Company that is subject to a condition specified in the terms of the Securities of the series to be redeemed, the Company
shall furnish the Trustee with an Officer’s Certificate evidencing compliance with such restriction or condition. 
 Section 11.3. Selection by
Trustee of Securities to Be Redeemed. 
 If less than all the Securities of any series are to be redeemed (unless all of the Securities of
such series and of a specified tenor are to be redeemed), the particular Securities to be redeemed shall be selected not more than 45 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, by such method as the Trustee shall deem fair and appropriate, including any method required by the Depository with respect to any Global Securities (and in such manner as is not prohibited by applicable legal requirements)
and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series. 
 The Trustee shall promptly notify the Company in writing of
the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed. If the Securities of any series to be redeemed consist of Securities having different dates on
which the principal is payable or different rates of interest, or different methods by which interest may be determined or have any other different tenor or terms, then the Company may, by written notice to the 

  

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Trustee, direct that the Securities of such series to be redeemed shall be selected from among the groups of such Securities having specified tenor or terms
and the Trustee shall thereafter select the particular Securities to be redeemed in the manner set forth in the preceding paragraph from among the group of such Securities so specified. 
 For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed. 
 Section 11.4. Notice of Redemption. 
 Notice of redemption shall be given by first-class mail, postage prepaid, mailed
not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at his address appearing in the Security Register. 
 All notices of redemption shall state: 
 (a) the Redemption Date, 
 (b) the Redemption Price, or if not then ascertainable, the manner of calculation thereof, 
 (c) if less than all the Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial
redemption, the principal amounts) of the particular Securities to be redeemed, 
 (d) that on the Redemption Date the
Redemption Price will become due and payable upon each such Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and after said date, 
 (e) the place or places where such Securities are to be surrendered for payment of the Redemption Price, and 
 (f) that the redemption is for a sinking fund, if such is the case. 
 Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company.

 Section 11.5. Deposit of Redemption Price. 
 Prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.3) an
amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities which are to be redeemed on that date. 
 Section 11.6. Securities Payable on Redemption Date. 
 Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such Security for redemption 

  

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in accordance with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to the Redemption Date;
provided, however, that unless otherwise specified with respect to Securities of any series as contemplated in Section 3.1, installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant record dates according to their terms and the provisions of Section 3.7. 
 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid,
bear interest from the Redemption Date at the rate prescribed therefor in the Security. 
 Section 11.7. Securities Redeemed in Part. 

Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company and the Guarantors shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and tenor, of any authorized denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
 ARTICLE TWELVE 
 SINKING FUNDS 
 Section 12.1.
Applicability of Article. 
 The provisions of this Article Twelve shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 3.1 for Securities of such series. 
 The minimum amount
of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum amount provided for by the terms of Securities of any
series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 12.2. Each
sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series. 
 Section 12.2. Satisfaction of Sinking Fund Payments with Securities. 
 The Company (a) may deliver Outstanding
Securities of a series (other than any previously called for redemption) and (b) may apply as a credit Securities of a series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant
to the terms of such Securities as provided for by the terms of such series; provided that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the Redemption
Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. 
  

 59 

 Section 12.3. Redemption of Securities for Sinking Fund. 
 Not less than 45 days prior to each sinking fund payment date for any series of Securities (unless a shorter period shall be satisfactory to the Trustee),
the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 12.2 and stating the basis for such credit and that such Securities have not been previously so
credited, and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 11.3 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.4. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Section 11.6 and Section 11.7. 
 ARTICLE THIRTEEN 

 DEFEASANCE 
 Section 13.1.
Option to Effect Legal Defeasance or Covenant Defeasance. 
 The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers’ Certificate, and at any time, elect to have either Section 13.2 or Section 13.3 hereof be applied to all outstanding Securities upon compliance with the conditions set forth below in this
Article Thirteen. 
 Section 13.2. Legal Defeasance and Discharge. 
 Upon the Company’s exercise under Section 13.1 hereof of the option applicable to this Section 13.2, the Company and each of the Guarantors
will, subject to the satisfaction of the conditions set forth in Section 13.4 hereof, be deemed to have been discharged from their obligations with respect to all outstanding Securities (including the Securities Guarantees) on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company and the Guarantors will be deemed to have paid and discharged the entire Debt represented by the
outstanding Securities (including the Securities Guarantees), which will thereafter be deemed to be “outstanding” only for the purposes of Section 13.5 hereof and the other sections of this Indenture referred to in clauses
(a) and (b) below, and to have satisfied all their other obligations under such Securities, the Securities Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder: 
 (a) the rights of Holders of Outstanding Securities to receive payments in respect of the principal of, or interest or premium, if any, on such Securities when such payments are due from the trust referred to in Section 13.4 hereof;

 (b) the Company’s obligations with respect to such Securities under Section 3.4, Section 3.5,
Section 3.6, Section 10.2 and Section 10.3 hereof; 
 (c) the rights, powers, trusts, duties and immunities of
the Trustee hereunder and the Company’s and the Guarantors’ obligations in connection therewith; and 
 (d) this
Article Thirteen. 
  

 60 

 Subject to compliance with this Article Thirteen, the Company may exercise its option under this
Section 13.2 notwithstanding the prior exercise of its option under Section 13.3 hereof. 
 Section 13.3. Covenant Defeasance.

 Upon the Company’s exercise under Section 13.1 hereof of the option applicable to this Section 13.3, the Company and each of
the Guarantors will, subject to the satisfaction of the conditions set forth in Section 13.4 hereof, be released from each of their obligations under the covenants contained in Section 7.4, Section 8.1 and Section 10.4 hereof as
well as any Additional Defeasible Provisions (such release and termination hereinafter referred to as “Covenant Defeasance”), and the Securities will thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being understood that
such Securities will not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Securities and Securities Guarantees, the Company and the Guarantors may omit to comply with
and will have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such omission to comply will not constitute a Default or an Event of Default under Section 5.1 hereof, but, except as specified above, the remainder of this Indenture and such
Securities and Securities Guarantees will be unaffected thereby. In addition, upon the Company’s exercise under Section 13.1 hereof of the option applicable to this Section 13.3 hereof, subject to the satisfaction of the conditions
set forth in Section 13.4 hereof, Section 5.1(c) and Section 5.1(e) hereof and will not constitute Events of Default. 
 Section 13.4.
Conditions to Legal or Covenant Defeasance. 
 In order to exercise either Legal Defeasance or Covenant Defeasance under either
Section 13.2 or Section 13.3 hereof: 
 (a) the Company must irrevocably deposit with the Trustee, in trust, for the
benefit of the Holders of the Securities, cash in U.S. dollars, non-callable U.S. Government Obligations, or a combination of cash in U.S. dollars and non-callable U.S. Government Obligations, in such amounts as will be sufficient, in the opinion of
a nationally recognized investment bank, appraisal firm, or firm of independent public accountants to pay the principal of, or interest and premium, if any, on the Outstanding Securities on the stated date for payment thereof or on the applicable
redemption date, as the case may be, and the Company must specify whether the Securities are being defeased to such stated date for payment or to a particular redemption date; 
 (b) in the case of an election under Section 13.2 hereof, the Company must deliver to the Trustee an Opinion of Counsel confirming
that: 
 (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or

 (ii) since the Issue Date, there has been a change in the applicable federal income tax law, 
 in either case to the effect that, and based thereon such Opinion of Counsel will confirm that, the Holders of the Outstanding Securities will not
recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred; 
  

 61 

 (c) in the case of an election under Section 13.3 hereof, the Company must deliver
to the Trustee an Opinion of Counsel confirming that the Holders of the Outstanding Securities will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax
on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
 (d) no Default or Event of Default has occurred and is continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit); 

(e) the deposit will not result in a breach or violation of, or constitute a default under, any other instrument to which the Company
or any Guarantor is a party or by which the Company or any Guarantor is bound; 
 (f) such Legal Defeasance or Covenant
Defeasance will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or any of its Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound; 
 (g) the Company must deliver to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders of Securities over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others; 
 (h) the Company must deliver to the Trustee an Officers’ Certificate, stating that all conditions precedent set forth in clauses
(a) through (g) of this Section 13.4 have been complied with; and 
 (i) the Company must deliver to the
Trustee an Opinion of Counsel (which Opinion of Counsel may be subject to customary assumptions, qualifications and exclusions), stating that all conditions precedent set forth in clauses (b), (c) and (e) of this Section 13.4 have
been complied with; provided that the Opinion of Counsel with respect to clause (e) of this Section 13.4 may be to the knowledge of such counsel. 
 Section 13.5. Deposited Money and U.S. Government Obligations to be Held in Trust, Other Miscellaneous Provisions. 
 Subject to Section 13.6 hereof, all money and non-callable U.S. Government Obligation (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 13.5, the
“Trustee”) pursuant to Section 13.4 hereof in respect of the Outstanding Securities will be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal, premium, if any, and
interest, but such money need not be segregated from other funds except to the extent required by law. 
  

 62 

 The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to Section 13.4 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the Outstanding Securities. 
 Notwithstanding anything in this Article Thirteen to the contrary, the Trustee
will deliver or pay to the Company from time to time upon the request of the Company any money or non-callable U.S. Government Obligations held by it as provided in Section 13.4 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 13.4(a) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 
 Section 13.6. Repayment. 
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any, or
interest on any Security and remaining unclaimed for two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Company on its request or (if then held by the Company) will be discharged from such
trust; and the Holder of such Security will thereafter be permitted to 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 all liability of the Company as trustee
thereof, will 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 the New York Times and The Wall Street
Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which will not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company. 
 Section 13.7. Reinstatement. 
 If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable U.S. Government Obligations in accordance with Section 13.2 or Section 13.3 hereof, as the case may be, by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s and the Guarantors’ obligations under this Indenture and the Securities and the Securities
Guarantees will be revived and reinstated as though no deposit had occurred pursuant to Section 13.2 or Section 13.3 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 13.2 or Section 13.3 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest on any Note following the reinstatement of its obligations, the Company
will be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent. 
 ARTICLE FOURTEEN 
 GUARANTEE OF SECURITIES 
 Section 14.1. Securities Guarantee. 
 (a) Subject to the other provisions of this
Article Fourteen, each of the Guarantors hereby jointly and severally, guarantees to each Holder of a Security of each series to which this Article Fourteen has been made applicable as provided in Section 3.1(t) (the Securities of
such series being referred to herein as the “Guaranteed Securities”) (which Security has been 

  

 63 

 
authenticated and delivered by the Trustee), and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Guaranteed Securities, the obligations of the Company hereunder or thereunder, that: 
 (i) the principal of,
premium, if any, and interest on the Guaranteed Securities will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Guaranteed Securities, if
any, if lawful, and all other obligations of the Company to the Holders of Guaranteed Securities, or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and 

(ii) in case of any extension of time of payment or renewal of any Guaranteed Securities or any of such other obligations, that same
will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. 
 Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately. Each Guarantor agrees that
this is a guarantee of payment and not a guarantee of collection. 
 (b) To the extent permissible under applicable law, the
obligations of the Guarantors under this Securities Guarantee are unconditional, irrespective of the validity, regularity or enforceability of the Guaranteed Securities or this Indenture, the absence of any action to enforce the same, any waiver or
consent by any Holder of the Guaranteed Securities with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor. To the extent permitted by applicable law, each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the
Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenant that this Securities Guarantee will not be discharged except by complete performance of the obligations contained in the
Guaranteed Securities and this Indenture. 
 (c) If any Holder or the Trustee is required by any court or otherwise to return
to the Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Securities Guarantee, to the
extent theretofore discharged, will be reinstated in full force and effect. 
 (d) Each Guarantor agrees that it will not be
entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, to the extent permitted by applicable
law, as between the Guarantors, on the one hand, and the Holders of Guaranteed Securities and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article Five hereof for
the purposes of this Securities Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such
obligations as provided in Article Five hereof, such obligations (regardless of whether due and payable) will forthwith become due and payable by the Guarantors for the 

  

 64 

 
purpose of this Securities Guarantee. The Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Securities Guarantee. 
 Section 14.2. Limitation on Guarantor Liability. 

Each Guarantor, and by its acceptance of Guaranteed Securities, each Holder thereof, hereby confirms that it is the intention of all such parties that
the Securities Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the
extent applicable to any Securities Guarantee. To effectuate the foregoing intention, the Trustee, to the extent permitted under applicable law, the Holders and each Guarantor hereby irrevocably agree that the obligations of such Guarantor will be
limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article Fourteen, result in the obligations of such Guarantor under its Securities Guarantee not
constituting a fraudulent transfer or conveyance. 
 Section 14.3. Execution and Delivery of Securities Guarantee Notation. 
 To evidence its Securities Guarantee set forth in Section 14.1 hereof, each Guarantor hereby agrees that a notation of such Securities Guarantee
substantially in the form set forth in Section 2.3 or established pursuant to a Board Resolution or in a supplemental indenture, in accordance with the provisions of Section 2.1, will be endorsed by an officer of such Guarantor on each
Guaranteed Security authenticated and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its officers. 
 Each Guarantor hereby agrees that its Securities Guarantee set forth in Section 14.1 hereof will remain in full force and effect notwithstanding any failure to endorse on each Guaranteed Security a notation of
such Securities Guarantee. 
 If an officer whose signature is on this Indenture or on the Securities Guarantee no longer holds that office
at the time the Trustee authenticates the Guaranteed Security on which a Securities Guarantee is endorsed, the Securities Guarantee will be valid nevertheless. 
 The delivery of any Guaranteed Security by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Securities Guarantee of such Guaranteed Security set forth in this Indenture on
behalf of the Guarantors. 
 * * * 
  

 65 

 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 IN WITNESS WHEREOF, the parties
hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of the day and year first above written. 
  

			
	FLOTEK INDUSTRIES, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	 Jerry D. Dumas, Sr.

	Title:	 	 Chief Executive Officer, Chairman and President

	
	AMERICAN STOCK TRANSFER & TRUST COMPANY
		
	By:	 	  
 /s/ Herbert J. Lemmer

	Name:	 	 Herbert J. Lemmer

	Title:	 	 Vice President

			
	 GUARANTORS:

	
	 CAVO DRILLING MOTORS, LTD. CO.

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	 CESI CHEMICAL, INC.

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer and Chairman
	
	 FLOTEK PAYMASTER, INC.

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	 MATERIAL TRANSLOGISTICS, INC.

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	 PADKO INTERNATIONAL INCORPORATED

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	 PETROVALVE, INC.

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	 SES HOLDINGS, INC.

		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President

			
	SOONER ENERGY SERVICES, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	SPIDLE SALES & SERVICE, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	TELEDRIFT ACQUISITION, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	TRINITY TOOL, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	TURBECO, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	USA PETROVALVE, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas Sr.
	Title:	 	Chief Executive Officer, Chairman and PresidentFirst Supplemental Indenture

 Exhibit 4.2 
 FIRST SUPPLEMENTAL INDENTURE 
 by and among 
 FLOTEK INDUSTRIES, INC. 
 AS ISSUER,

 THE GUARANTORS PARTY HERETO 
 AND 
 AMERICAN STOCK TRANSFER & TRUST COMPANY 
 AS TRUSTEE 
 5.25% Convertible Senior Notes due 2028 
  
  
 Dated as of February 14, 2008 
  
  
 Supplemental To Indenture For
Senior Debt Securities 
 Dated as of February 14, 2008 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE
		
	 ARTICLE 1
 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	
			
	Section 1.01.	 	Scope of First Supplemental Indenture	  	2
	Section 1.02.	 	Definitions	  	2
	Section 1.03.	 	Other Definitions	  	9
	Section 1.04.	 	Rules of Construction	  	10
		
	 ARTICLE 2
 THE SECURITIES
	  	
			
	 Section 2.01.
	 	Title; Amount and Issue of Securities; Principal and Interest	  	10
	 Section 2.02.
	 	Form of Securities	  	12
	 Section 2.03.
	 	Legends	  	13
	 Section 2.04.
	 	Registrar and Paying Agent	  	13
	 Section 2.05.
	 	General Provisions Relating to Transfer and Exchange	  	14
	 Section 2.06.
	 	Book-Entry Provisions for the Global Securities	  	14
	 Section 2.07.
	 	Original Issue Discount	  	15
		
	 ARTICLE 3
 COVENANTS
	  	
			
	 Section 3.01.
	 	Payment of Securities	  	16
	 Section 3.02.
	 	Further Instruments and Acts	  	16
	 Section 3.03.
	 	Statement by Officer as to Default	  	16
	 Section 3.04.
	 	Additional Interest and Contingent Interest	  	16
	 Section 3.05.
	 	Calculation Of Original Issue Discount	  	17
		
	 ARTICLE 4
 REDEMPTION OF SECURITIES
	  	
			
	 Section 4.01.
	 	Optional Redemption	  	17
	 Section 4.02.
	 	Selection by Trustee of Securities to Be Redeemed	  	17
	 Section 4.03.
	 	Notice of Redemption	  	18
		
	 ARTICLE 5
 DEFAULTS AND REMEDIES
	  	
			
	 Section 5.01.
	 	Additional Events of Default	  	18
	 Section 5.02.
	 	Sole Remedy for Failure to Report	  	20
	 Section 5.03.
	 	Limitation on Suits	  	20

  

 ii 

					
	 ARTICLE 6
 DISCHARGE OF INDENTURE
	  	
			
	Section 6.01.	 	Discharge of Liability on Securities	  	21
	Section 6.02.	 	Reinstatement	  	22
	Section 6.03.	 	Officer’s Certificate; Opinion of Counsel	  	22
		
	 ARTICLE 7
 AMENDMENTS
	  	
			
	Section 7.01.	 	With Consent of Holders	  	23
		
	 ARTICLE 8
 PURCHASE AT THE OPTION OF HOLDERS UPON A FUNDAMENTAL
 CHANGE; PURCHASE AT THE OPTION OF
HOLDERS
	  	
			
	Section 8.01.	 	Purchase at the Option of the Holder Upon a Fundamental Change	  	23
	Section 8.02.	 	Purchase of Securities at the Option of the Holder	  	26
	Section 8.03.	 	Further Conditions and Procedures for Purchase at the Option of the Holder Upon a Fundamental Change and Purchase of Securities at the Option of the Holder	  	28
		
	 ARTICLE 9
 CONVERSION
	  	
			
	Section 9.01.	 	Conversion of Securities	  	31
	Section 9.02.	 	Adjustments to Conversion Rate	  	38
	Section 9.03.	 	Adjustment to Common Stock Delivered Upon Certain Fundamental Changes	  	45
	Section 9.04.	 	Effect of Recapitalizations, Reclassifications, and Changes of Common Stock	  	46
	Section 9.05.	 	Responsibility of Trustee	  	47
	Section 9.06.	 	Stockholder Rights Plan	  	48
	Section 9.07.	 	No Stockholder Rights	  	48
	Section 9.08.	 	Withholding Taxes for Adjustments in Conversation Rate	  	48
		
	 ARTICLE 10
 GUARANTEE OF SECURITIES
	  	
			
	Section 10.01.	 	Securities Guarantee	  	49
	Section 10.02.	 	Release of A Guarantor; Termination Of Securities Guarantee	  	49

  

 iii 

					
	 ARTICLE 11
 MISCELLANEOUS
	  	 
			
	Section 11.01.	 	Compliance with Trust Indenture Act	  	49
	Section 11.02.	 	No Defeasance	  	50
	Section 11.03.	 	Communication by Holders with other Holders	  	50
	Section 11.04.	 	Rules by Trustee, Paying Agent and Registrar	  	50
	Section 11.05.	 	Governing Law	  	50
	Section 11.06.	 	No Recourse Against Others	  	50
	Section 11.07.	 	Successors	  	50
	Section 11.08.	 	Multiple Originals	  	50
	Section 11.09.	 	Table of Contents; Headings	  	50
	Section 11.10.	 	Severability Clause	  	51
	Section 11.11.	 	Calculations	  	51
	Section 11.12.	 	Ratification and Incorporation of Original Indenture	  	51

  

	EXHIBIT	A Form of the Security 

  

 iv 

 FIRST SUPPLEMENTAL INDENTURE dated as of February 14, 2008, among Flotek Industries, Inc., a
Delaware corporation (the “Company”), the guarantors listed on the signature page hereto (the “Initial Guarantors”) and American Stock Transfer & Trust Company, as Trustee (the “Trustee”).

 Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the
Company’s 5.25% Convertible Senior Notes due 2028 (the “Securities”) on the date hereof. 
 WITNESSETH: 
 WHEREAS, this First Supplemental Indenture is supplemental to the Original Indenture; and 
 WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of the Securities, initially in an aggregate principal amount not
to exceed $115,000,000, and in order to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution and delivery of this First Supplemental Indenture; and

 WHEREAS, pursuant to Section 3.1 of the Original Indenture, the Company may establish one or more series of Securities from time to
time as authorized by a supplemental indenture of which the Securities shall be one such series; and 
 WHEREAS, the Form of Security, the
certificate of authentication to be borne by each Security, the Form of Conversion Notice, the Form of Fundamental Change Purchase Notice, the Form of Purchase Notice and the Assignment Form to be borne by the Securities are to be substantially in
the forms hereinafter provided for; and 
 WHEREAS, all acts and things necessary to make the Securities, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in the Indenture provided, the valid, binding and legal obligations of the Company, and to constitute these presents a valid agreement according to its terms,
have been done and performed, and the execution of this First Supplemental Indenture and the issue hereunder of the Securities have in all respects been duly authorized. 
 WHEREAS, the Guarantors party hereto have duly authorized the execution and delivery of this First Supplemental Indenture as guarantors of the Securities. All things necessary to make the Indenture a valid agreement
of each Guarantor, in accordance with its terms, have been done, and each Guarantor has done all things necessary to make the Securities Guarantee, when the Securities 

 
are executed by the Company and authenticated and delivered by the Trustee and duly issued by the Company, the valid obligations of such Guarantor as
hereinafter provided. 
 NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH: 
 That in order to declare the terms and conditions upon which the Securities are, and are to be, authenticated, issued and delivered, and in consideration
of the premises and of the purchase and acceptance of the Securities by the holders thereof, the Company and the Guarantors covenant and agree with the Trustee for the equal and proportionate benefit of the respective holders from time to time of
the Securities (except as otherwise provided below), as follows: 
 ARTICLE 1 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
 Section 1.01. Scope of First Supplemental Indenture. The changes, modifications and supplements to the Original Indenture affected by this First Supplemental Indenture shall be applicable only with respect
to, and shall only govern the terms of, the Securities, which shall initially be limited to $115,000,000 aggregate principal amount Outstanding and which may be issued from time to time, and shall not apply to any other Securities that may be issued
under the Original Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements. The provisions of the First Supplemental Indenture shall supersede any
corresponding or inconsistent provisions in the Original Indenture. 
 Section 1.02. Definitions. The terms defined in this
Section 1.02 (except as herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this First Supplemental Indenture and for purposes of the Original Indenture as it relates to the Securities shall have
the respective meanings specified in this Section 1.02. Except as otherwise provided in this First Supplemental Indenture, all words, terms and phrases defined in the Original Indenture (but not otherwise defined herein) shall have the same
meaning herein as in the Original Indenture. All other terms used in this First Supplemental Indenture that are defined in the Trust Indenture Act or that are by reference therein defined in the Securities Act (except as herein otherwise expressly
provided or unless the context otherwise requires) shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this First Supplemental Indenture. The words
“herein,” “hereof,” “hereunder,” and words of similar import refer to this First Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 
  

 2 

 “Additional Interest” means all amounts, if any, payable pursuant to Section 5.02
hereof. 
 “Beneficial Owner” shall mean any Person who is considered a beneficial owner of a security in accordance with
Rule 13d-3 promulgated by the SEC under the Exchange Act. 
 “Bid Solicitation Agent” means, initially, the Trustee. The
Company may change the Bid Solicitation Agent, but the Bid Solicitation Agent shall not be the Company’s Affiliate. The Bid Solicitation Agent shall solicit bids from securities dealers in accordance with Section 9.01 that are believed by
the Company to be willing to bid for the Securities. 
 “Capital Stock” of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity. 
 “Common Equity” of any Person means Capital Stock of such Person that is generally entitled to (1) vote in the election of
directors of such Person or (2) if such Person is not a corporation, vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or policies of such Person. 
 “Common Stock” means the Company’s common stock, par value $0.0001 per share at the date of this First Supplemental Indenture or,
subject to Section 9.04, shares of any class or classes resulting from any reclassification or reclassifications thereof and that have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company and that are not subject to redemption by the Company; provided that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable shall
be substantially in the proportion which the total number of shares of such class resulting from all such reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 
 “Contingent Interest” has the meaning set forth in Exhibit A attached hereto. 
 “Conversion Agent” means the office or agency appointed by the Company where Securities may be presented for conversion. The Conversion
Agent appointed by the Company shall initially be the Trustee. 
 “Conversion Period” means, with respect to any Securities:

 (i) with respect to any Conversion Date that occurs on or after the
25th Scheduled Trading Day prior to the Maturity Date, the 20 consecutive VWAP Trading Day period beginning on and including the 22nd Scheduled Trading Day prior to the Maturity Date (whether or not the Maturity Date is a Scheduled Trading Day) (or if such day is not a VWAP Trading Day, the
next succeeding VWAP Trading Day); 
  

 3 

 (ii) with respect to any
Securities called for redemption, the 20 consecutive VWAP Trading Day Period beginning on and including the 22nd Scheduled Trading Day prior to the
Redemption Date (or if such day is not a VWAP Trading Day, the next succeeding VWAP Trading Day); and 
 (iii) in all
other instances, the 20 consecutive VWAP Trading Day period beginning on and including the third VWAP Trading Day after the related Conversion Date in respect of such Securities. 
 “Conversion Price” at any time means a dollar amount (initially $22.75) equal to $1,000 divided by the Conversion Rate at such time.

 “Daily Conversion Value” means, for each of the 20 consecutive VWAP Trading Days during the Conversion Period,
one-twentieth (1/20) of the product of (a) the Conversion Rate on such day and (b) the Daily VWAP of the Common Stock (or the Reference Property pursuant to Section 9.04) on such VWAP Trading Day. 
 “Daily Settlement Amount” means, for each of the 20 VWAP Trading Days during the applicable Conversion Period: 
 (i) cash equal to the lesser of $50.00 and the Daily Conversion Value relating to such VWAP Trading Day; and 
 (ii) if such Daily Conversion Value exceeds $50.00, a number of shares of Common Stock equal to (A) the difference between such Daily
Conversion Value and $50.00, divided by (B) the Daily VWAP of the Common Stock (or the consideration into which Common Stock has been exchanged in connection with certain corporate transactions) for such VWAP Trading Day, subject to adjustment
pursuant to Section 9.02(l). 
 “Daily VWAP” means for each of the 20 consecutive VWAP Trading Days during the
Conversion Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page FTK.UQ <equity> AQR (or any equivalent successor page) in respect of the period from the scheduled open
of trading on the principal trading market for the Common Stock to the scheduled close of trading on such market on such VWAP 

  

 4 

 
Trading Day (or if such volume-weighted average price is unavailable, the market value of one share of Common Stock on such VWAP Trading Day, using a
volume-weighted method if reasonably practical, as determined in good faith by the Company). 
 “DTC” means The Depository
Trust Company, its nominees and their respective successors and assigns, or such other depository institution hereinafter appointed by the Company pursuant to the terms of this First Supplemental Indenture. 
 “Ex-Dividend Date” means, in respect of an issuance, a dividend or distribution to holders of Common Stock, the first date on which
Common Stock trades on the applicable exchange or in the applicable market, regular way, without the right to receive the issuance, dividend or distribution in question. 
 “Fair Market Value” means the amount that a willing buyer would pay a willing seller in an arm’s length transaction. 
 A “Fundamental Change” shall be deemed to have occurred if any of the following occurs: 
  

	 	(1)	any “person” or “group” within the meaning of Section 13(d) of the Exchange Act, other than the Company, any Subsidiary of the Company or any employee
benefit plan of the Company or any such Subsidiary, files a Schedule TO or any other schedule, form or report under the Exchange Act disclosing that such person or group has become the Beneficial Owner of Common Equity of the Company representing
more than 50% of the ordinary voting power of the Company’s Common Equity; 

  

	 	(2)	consummation of 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 any sale,
lease or other transfer (in one transaction or a series of transactions) of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, to any Person other than one of the Company’s Subsidiaries; provided,
however, that a transaction where the holders of more than 50% of all classes of the Company’s Common Equity immediately prior to such transaction own, directly or indirectly, more than 50% of all classes of Common Equity of the continuing
or surviving entity or transferee or parent thereof immediately after such event shall not be a Fundamental Change; or 

  

 5 

	 	(3)	the Company’s Common Stock (or other Reference Property into which the Securities are then convertible) ceases to be listed on a U.S. national or regional securities exchange
or quoted on an established automated over-the-counter trading market in the United States for a period of 30 consecutive Scheduled Trading Days, 

 provided, however, that a Fundamental Change described in clause (2) of the definition above shall not be deemed to have occurred if at least 90% of the consideration received or to be received by the holders of the
Company’s Common Stock, excluding cash payments for fractional shares and cash payments in respect of statutory dissenters’ rights, in connection with the transaction or transactions constituting the Fundamental Change described in clause
(2) consists of shares of common stock (or depositary receipts or shares evidencing common stock) traded on a U.S. national or regional securities exchange, or which shall be so traded when issued or exchanged in connection with such
Fundamental Change as described in clause (2) of the definition above (such securities being referred to as “Publicly Traded Securities”) and as a result of such transaction or transactions the Securities become convertible
into such consideration. 
 “Guarantors” means (i) initially, the Initial Guarantors and (ii) each of the
Company’s other Subsidiaries that provides a Securities Guarantee of the Securities pursuant to the terms of the Indenture. 
 “Indenture” means the Original Indenture, as amended and supplemented by this First Supplemental Indenture and, if further amended or supplemented as herein provided, as so amended or supplemented. 
 “Interest Payment Date” has the meaning set forth in Exhibit A attached hereto. 
 “Issue Date” means February 14, 2008. 
 “Last Reported Sale Price” of the Common Stock (or any other security for which a Last Reported Sale Price must be obtained) means, on any date, the closing sale price per share of Common Stock or
such security (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 or such other security is listed for trading. If the Common Stock or such security is not listed for trading on a U.S. national or regional securities exchange on the
relevant date, the Last Reported Sale Price will be the mid-point of the last quoted bid and ask prices for the Common Stock or such security in the over-the-counter market on the relevant date as reported by the National Quotation Bureau or similar
organization. If the 

  

 6 

 
Common Stock or such security is not so quoted, the Last Reported Sale Price will be the average of the mid-point of the last bid and ask prices for the
Common Stock or such security on the relevant date from each of at least three nationally recognized independent investment banking firms (which may include the Underwriter or its Affiliates) selected by the Company for this purpose. The Last
Reported Sale Price shall be determined without reference to extended or after hours trading. 
 “Market Disruption Event”
means, for the purpose of the definition of Trading Day, the occurrence or existence during the one half-hour period ending on the scheduled close of trading on the principal U.S. national or regional securities exchange on which the Common Stock is
listed for trading of any material suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options contracts or future contracts
relating to the Common Stock. 
 “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer or any Vice President of such Person. 
 “Original
Indenture” means the indenture for Senior Debt Securities dated as of February 14, 2008 by and among the Company, the guarantors party thereto and the Trustee. 
 “Original Issue Discount” means the amount of ordinary interest income on a Security that must be accrued as original issue discount for
United States federal income tax purposes pursuant to Treasury Regulation Section 1.1275-4 or any successor provision. 
 “Preferred Stock”, as applied to the Capital Stock of any corporation, means Capital Stock of any class or classes (however designated) which is preferred as to the payment of dividends, or as to the distribution of assets
upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of such corporation. 
 “Prospectus Supplement” means the prospectus supplement, dated February 11, 2008, relating to the offering by the Company of the Securities. 
 “Regular Record Date” for the payment of interest on the Securities (including Contingent Interest and Additional Interest, if any),
means the February 1 (whether or not a Business Day) immediately preceding an Interest Payment Date on February 15 and August 1 (whether or not a Business Day) immediately preceding an Interest Payment Date on August 15.

  

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 “Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the primary
United States national securities exchange or market on which the Common Stock is listed or admitted to trading. 
 “Securities” has the meaning ascribed to it in the second introductory paragraph of this First Supplemental Indenture. 
 “Securities Act” means the Securities Act of 1933 (15 U.S.C. §§ 77a – 77aa), as amended, and the rules and regulations of the SEC promulgated thereunder. 
 “Securities Custodian” means the custodian with respect to the Global Security (as appointed by DTC), or any successor Person thereto
and shall initially be the Trustee. 
 “Stated Maturity” means February 15, 2028. 
 “Stock Price” means, in respect of a Fundamental Change, the price per share of Common Stock paid in connection with such Fundamental
Change, which shall be equal to (i) if such Fundamental Change is a transaction set forth in clause (2) of the definition thereof, and holders of Common Stock receive only cash in such transaction, the cash amount paid per share of Common
Stock and (ii) in all other cases, the average of the Last Reported Sale Prices of the Common Stock over the five Trading Day period ending on the Trading Day preceding the Effective Date of such Fundamental Change. 
 “Trading Day” means any day during which (i) trading in the Common Stock generally occurs on the primary United States national
securities exchange or market on which the Common Stock (or other security in question) is listed or admitted for trading and (ii) there is no Market Disruption Event. 
 “Trading Price” of the Securities on any date of determination means the average of the secondary market bid quotations per $1,000
principal amount of the Securities obtained by the Bid Solicitation Agent for $5,000,000 principal amount of the Securities at approximately 3:30 p.m., New York City time, on such determination date from two independent nationally recognized
securities dealers the Company will select, but if only one such bid can reasonably be obtained by the Bid Solicitation Agent, this one bid shall be used. If the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000
principal amount of the Securities from a nationally-recognized securities dealer or if, in the Company’s reasonable judgment, the bid quotations are not indicative of the secondary market value of the Securities, then the Trading Price of the
Securities will be determined by the Company’s Board of Directors based on a good faith estimate of the fair value of the Securities; provided however that, for purposes of determining the Trading Price pursuant to
Section 9.01(a)(ii), if the 

  

 8 

 
Bid Solicitation Agent cannot reasonably obtain on any Trading Day at least one bid for $5,000,000 principal amount of the Securities from a nationally
recognized securities dealer, then the Trading Price per $1,000 principal amount of Securities for such Trading Day will be deemed to be less than 95% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate on such
Trading Day. 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York. 
 “Underwriter” means Bear, Stearns & Co. Inc. 
 “Underwriting Agreement” means the Underwriting Agreement dated as of February 11, 2008 among the Company, the Guarantors and the Underwriter relating to the initial purchase and sale of the
Securities. 
 “VWAP Market Disruption Event” means (i) a failure by the principal United States national or regional
securities exchange or market on which the Common Stock is listed or admitted to trading to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m. New York City time on any Scheduled Trading
Day for the Common Stock for an aggregate one half-hour period of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options
contracts or futures contracts relating to the Common Stock. 
 “VWAP Trading Day” means a day during which (i) trading
in the Common Stock generally occurs on the principal United States national or regional securities exchange or market on which the Common Stock is listed or admitted for trading and (ii) there is no VWAP Market Disruption Event. If the Common
Stock is not so listed or traded, then “VWAP Trading Day” shall mean “Business Day.” 
 Section 1.03. Other
Definitions.  
  

											
	 Term
	  	 Defined in Section
	 	 	 	 
	“Additional Shares”	  		 	9.03(a)	 		 	
	“Agent Members”	  		 	2.06(a)	 		 	
	“Company Notice”	  		 	8.03(a)	 		 	
	“Company Notice Date”	  		 	8.03(a)	 		 	
	“Contingent Payment Debt Regulations”	  		 	2.07	 		 	
	“Conversion Date”	  		 	9.01(c)	 		 	
	“Conversion Obligation”	  		 	9.01(d)(i)	 		 	
	“Conversion Rate”	  		 	9.01	 		 	
	“Effective Date”	  		 	9.03(b)	 		 	

  

 9 

											
	 Term
	  	 Defined in Section
	 	 	 	 
	“Fundamental Change Purchase Date”	  		 	8.01	 		 	
	“Fundamental Change Purchase Notice”	  		 	8.01(b)	 		 	
	“Fundamental Change Purchase Price”	  		 	8.01	 		 	
	“Global Security Legend”	  		 	2.03(i)	 		 	
	“Measurement Period”	  		 	9.01(a)(ii)	 		 	
	“Net-Share Settlement”	  		 	9.01(d)	 		 	
	“Paying Agent”	  		 	2.04	 		 	
	“Purchase Date”	  		 	8.02(a)	 		 	
	“Purchase Notice”	  		 	8.02(a)	 		 	
	“Purchase Price”	  		 	8.02(a)	 		 	
	“Redemption Price”	  		 	4.01(b)	 		 	
	“Reference Property”	  		 	9.04	 		 	
	“Registrar”	  		 	2.04	 		 	
	“Reorganization Event”	  		 	9.04	 		 	
	“Spin-Off”	  		 	9.02(c)	 		 	

 Section 1.04. Rules of Construction. In addition to the rules of construction set
forth in Section 1.1 of the Original Indenture, unless the context otherwise requires: 
 (a) “or” is not exclusive;

 (b) the principal amount of any non-interest bearing or other discount security at any date shall be the principal amount thereof that
would be shown on a balance sheet of the issuer dated such date prepared in accordance with GAAP; 
 (c) the principal amount of any
Preferred Stock shall be the greater of (i) the maximum liquidation value of such Preferred Stock and (ii) the maximum mandatory redemption or mandatory repurchase price with respect to such Preferred Stock; and 
 (d) references to the Company and its Subsidiaries on a consolidated basis shall be deemed to include any other Guarantor. 
 ARTICLE 2 
 THE
SECURITIES 
 Section 2.01. Title; Amount and Issue of Securities; Principal and Interest. (a) The Securities
shall be known and designated as the “5.25% Convertible Senior Notes due 2028” of the Company. The aggregate principal amount of Securities which may be authenticated and delivered under this First Supplemental Indenture is initially
limited to $115,000,000, except for Securities 

  

 10 

 
authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of other Securities pursuant to Section 2.03, 2.05, 2.06,
8.03, 9.01 hereof, or Sections 3.4, 3.5, 3.6, 6.14 or 11.7 of the Original Indenture; provided that additional Securities may be issued in an unlimited aggregate principal amount from time to time thereafter as set forth pursuant to
Section 3.3 of the Original Indenture, but only if such additional Securities to be issued are part of the same issue as the Securities initially issued and sold pursuant to the Prospectus Supplement for United States federal income tax
purposes. 
 (b) The Securities shall mature on February 15, 2028 unless earlier converted, redeemed or repurchased in accordance with
the provisions hereof. 
 (c) Interest on the Securities shall accrue from and including the date specified on the face of such Securities
until the principal thereof is paid or made available for payment. Interest shall be payable semiannually in arrears on February 15 and August 15 in each year, commencing August 15, 2008. For purposes of this First Supplemental
Indenture and the Securities, unless the context clearly requires otherwise, references to “interest” shall include Additional Interest and Contingent Interest. 
 (d) A Holder of any Security at 5:00 p.m., New York City time, on a Regular Record Date shall be entitled to receive interest (including Contingent Interest and Additional Interest, if any), on such Security on the
corresponding Interest Payment Date, notwithstanding the conversion of such Securities at any time after the close of business on such Regular Record Date. Securities surrendered for conversion during the period from 5:00 p.m., New York City time,
on any Regular Record Date to 9:00 a.m., New York City time, on the corresponding Interest Payment Date must be accompanied by payment of an amount equal to the interest (including Contingent Interest and Additional Interest, if any) payable on such
Securities. Notwithstanding the foregoing, no such payment of interest (including Contingent Interest and Additional Interest) need be made by any converting Holder (i) if the Company has specified a Redemption Date that is after a Regular
Record Date and on or prior to the corresponding Interest Payment Date, (ii) if the Company has specified a Fundamental Change Purchase Date that is after a Regular Record Date and on or prior to the corresponding Interest Payment Date, or
(iii) to the extent of any overdue interest (including Contingent Interest and Additional Interest, if any) existing at the time of conversion of such Security. Except as described above, no interest, Contingent Interest or Additional Interest,
if any, on converted Securities will be payable by the Company on any Interest Payment Date subsequent to the date of conversion, and delivery of shares of Common Stock or the combination of cash and shares of Common Stock, if applicable, pursuant
to Article 9 hereunder, together with any cash payment for any fractional share, upon conversion will be deemed to satisfy in full the Company’s obligation to pay the principal amount of the Securities and accrued and unpaid interest and
Contingent Interest and Additional Interest, if any, to, but not including, the related Conversion Date. 
  

 11 

 (e) Principal of, interest (including Contingent Interest and Additional Interest, if any) and premium,
if any, on, Global Securities shall be payable to DTC in immediately available funds. 
 (f) Principal of, and any premium on, Definitive
Securities shall be payable at the office or agency of the Company maintained for such purpose, which initially shall be the corporate trust office of the Trustee. Interest (including Contingent Interest and Additional Interest, if any), on
Definitive Securities will be payable (i) to Holders having an aggregate principal amount of $5,000,000 or less, by check mailed to the Holders of these Securities and (ii) to Holders having an aggregate principal amount of more than
$5,000,000, either by check mailed to each Holder or, upon application by a Holder to the Registrar not later than the relevant Regular Record Date, by wire transfer in immediately available funds to such Holder’s account within the United
States, which application shall remain in effect until the Holder notifies, in writing, the Registrar to the contrary. 
 Section 2.02. Form of Securities. 
 (a) Except as otherwise provided pursuant to this Section 2.02, the Securities
are issuable in fully registered form without coupons in substantially the form of Exhibit A hereto, with such applicable legends as are provided for in Section 2.03. The Securities are not issuable in bearer form. The terms and provisions
contained in the form of Security shall constitute, and are hereby expressly made, a part of this First Supplemental Indenture and to the extent applicable, the Company, the Guarantors and the Trustee, by their execution and delivery of this First
Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 
 (b) The Securities shall be issued initially
in the form of one or more permanent Global Securities, with the applicable legends as provided in Section 2.03. Each Global Security shall be duly executed by the Company and the Guarantors and authenticated and delivered by the Trustee, and
shall be registered in the name of DTC or its nominee and retained by the Trustee, as Securities Custodian, at its corporate trust office, for credit to the accounts of the Agent Members holding the Securities evidenced thereby. The aggregate
principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee, as Securities Custodian, and of DTC or its nominee, as hereinafter provided. 
  

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 Section 2.03. Legends.  
 (i) Global Security Legend. Each Global Security shall bear the following legend (the “Global Security Legend”) on
the face thereof: 
 “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN THE INDENTURE REFERRED TO IN THE TERMS OF SECURITIES ATTACHED HERETO.” 
 (ii) Legend for Definitive
Securities. Definitive Securities will bear a legend substantially in the following form: 
 “THIS SECURITY WILL NOT BE ACCEPTED IN
EXCHANGE FOR A BENEFICIAL INTEREST IN A GLOBAL SECURITY UNLESS THE HOLDER OF THIS SECURITY, SUBSEQUENT TO SUCH EXCHANGE, WILL HOLD NO SECURITIES.” 
 Section 2.04. Registrar and Paying Agent. The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (the “Registrar”),
which Registrar shall constitute a Security Register (as such term is defined in the Original Indenture) and an office or agency where Securities may be presented for payment (the “Paying Agent”). The Company may have one or more
co-registrars and one or more additional paying agents. The term “Paying Agent” includes any additional paying agent and the term “Registrar” includes any co-registrar. 
 The Company shall enter into an appropriate agency agreement with any Registrar or Paying Agent not a party to this First Supplemental Indenture, which
shall incorporate the terms of the Trust Indenture Act. The agreement shall 

  

 13 

 
implement the provisions of this First Supplemental Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of each
such agent. If the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be entitled to appropriate compensation therefor pursuant to Section 6.7 of the Original Indenture. The Company or any of its
domestically organized, wholly owned Subsidiaries may act as Paying Agent, Registrar or transfer agent. 
 The Company initially appoints the
Trustee as Registrar and Paying Agent for the Securities. The Company may remove any Registrar or Paying Agent upon written notice to such Registrar or Paying Agent and to the Trustee; provided, however, that no such removal shall become
effective until (i) acceptance of any appointment by a successor as evidenced by an appropriate agreement entered into by the Company and such successor Registrar or successor Paying Agent, as the case may be, and delivered to the Trustee or
(ii) notification to the Trustee that the Trustee shall serve as Registrar or Paying Agent until the appointment of a successor in accordance with clause (i) above. The Registrar or Paying Agent may resign at any time upon written notice
to the Company and the Trustee. 
 Section 2.05. General Provisions Relating to Transfer and Exchange. A Holder may transfer a
Security only by written application to the Registrar stating the name of the proposed transferee and otherwise complying with the terms of the Indenture. No such transfer shall be effected until, and such transferee shall succeed to the rights of a
Holder only upon, final acceptance and registration of the transfer by the Registrar in the Securities Register. 
 In addition to the matters described in the 7th paragraph of Section 3.5 of the Original Indenture, neither the
Company nor the Registrar shall be required to exchange or register a transfer of any Securities surrendered for conversion or, if a portion of any Security is surrendered for conversion, the portion thereof surrendered for conversion.

 Section 2.06. Book-Entry Provisions for the Global Securities. (a) The Global Securities initially shall:

 (i) be registered in the name of DTC (or a nominee thereof); 
 (ii) be delivered to the Trustee as Securities Custodian; and 
 (iii) bear the Global Security Legend set forth in Section 2.03(i). 
 Members of, or participants in, DTC (“Agent Members”) shall have no rights under this First Supplemental Indenture with respect to any
Global Security 

  

 14 

 
held on their behalf by DTC, or the Trustee as its custodian, or under such Global Security, and DTC may be treated by the Company, the Trustee and any agent
of the Company, or the Trustee as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing contained herein shall prevent the Company, the Trustee or any agent of the Company, or Trustee from
giving effect to any written certification, proxy or other authorization furnished by DTC or impair, as between DTC and the Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Security.

 (b) The Holder of a Global Security may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take under this First Supplemental Indenture or the Securities. 
 Section 2.07. Original Issue Discount. The Company agrees, and by acceptance of a Definitive Security or a beneficial ownership interest in a Global Security each Holder and each beneficial owner of the
Securities shall be deemed to have agreed, for United States federal income tax purposes, (1) to treat the Securities as indebtedness that is subject to Treasury Regulations Section 1.1275-4 (the “Contingent Payment Debt
Regulations”) and, for purposes of the Contingent Payment Debt Regulations, to treat (x) the cash and the fair market value of any stock beneficially received upon any conversion of the Securities as a contingent payment and
(y) any Additional Interest or Contingent Interest received as contingent payments, (2) to accrue interest with respect to the Securities as original issue discount on a constant yield basis, according to the “noncontingent bond
method” set forth in Treasury Regulations Section 1.1275-4(b), using the comparable yield of 9.25% per annum compounded semi-annually and (3) in the absence of an administrative determination or judicial ruling to the contrary,
to be bound by the Company’s determination of the “comparable yield” and “projected payment schedule,” within the meaning of the Contingent Payment Debt Regulations, with respect to the Securities. A Holder may obtain the
issue price, the amount of original issue discount, the issue date, the yield to maturity, the comparable yield and the projected payment schedule for the Securities by submitting a written request for such information to Flotek Industries, Inc.,
2930 West Sam Houston Parkway North, Suite 300, Houston, TX 77043, Attention: Chief Financial Officer. 
 The Company acknowledges and
agrees, and each Holder and any beneficial owner of a Security by its purchase thereof shall be deemed to acknowledge and agree, that (i) the comparable yield and the schedule of projected payments are not determined for any purpose other than
for the determination of interest accruals and adjustments thereof in respect of the Securities for United States federal income tax purposes and (ii) the comparable yield and the schedule of projected payments do not constitute a projection or
representation regarding the amounts payable on the Securities. 
  

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 ARTICLE 3 
 COVENANTS 
 Section 3.01. Payment of Securities. The Company shall promptly pay
the principal of, interest (including Contingent Interest and Additional Interest, if any) and premium, if any, on the Securities on the dates and in the manner provided in the Securities and in this First Supplemental Indenture. Principal, interest
(including Contingent Interest and Additional Interest, if any) and premium, if any, shall be considered paid on the date due if by 11:00 a.m., New York City time, on such date the Trustee or the Paying Agent holds in accordance with this First
Supplemental Indenture immediately available funds sufficient to pay all principal, interest (including Contingent Interest and Additional Interest, if any) and premium, if any, then due. 
 The Company shall pay interest on overdue principal or premium, if any, at the rate specified therefor in the Securities, and it shall pay interest on
overdue installments of interest at the same rate to the extent lawful. 
 Notwithstanding anything to the contrary contained in this First
Supplemental Indenture, the Company may, to the extent it is required to do so by law, deduct or withhold income or other similar taxes imposed by the United States of America from principal, premium or interest (including Contingent Interest and
Additional Interest, if any) payments hereunder. 
 Section 3.02. 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 purpose of this First Supplemental Indenture. 
 Section 3.03. Statement by Officer as to Default. The Company shall deliver to the Trustee, within 30 days after the Company becomes aware of
the occurrence of any Event of Default or Default, an Officer’s Certificate setting forth the details of such events which would constitute an Event of Default or Default, its status and the action which the Company proposes to take with
respect thereto. 
 Section 3.04. Additional Interest and Contingent Interest. If Additional Interest is payable by the Company
or the Guarantors pursuant to Section 5.02, or if Contingent Interest is payable by the Company or the Guarantors pursuant to the terms of the Securities, the Company or the Guarantors shall deliver to the Trustee an Officer’s Certificate
to that effect stating (i) the amount of such 

  

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Additional Interest, or Contingent Interest that is payable and (ii) the date on which such Additional Interest, or Contingent Interest is payable.
Unless and until a Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry that no Additional Interest or Contingent Interest is payable. If the Company or the Guarantors have paid Additional Interest
or Contingent Interest directly to the persons entitled to it, the Company or the Guarantors shall deliver to the Trustee an Officer’s Certificate setting forth the particulars of such payment. 
 Section 3.05. Calculation Of Original Issue Discount. The Company shall file with the Trustee promptly at the end of each calendar year
(i) a written notice specifying the amount of Original Issue Discount (including daily rates and accrual periods) accrued on the Securities as of the end of such year and (ii) such other specific information relating to such Original Issue
Discount as may then be reasonably requested by the Trustee and relevant under the Internal Revenue Code of 1986, as amended from time to time, or the Treasury regulations promulgated thereunder. 
 ARTICLE 4 
 REDEMPTION
OF SECURITIES 
 Section 4.01. Optional Redemption. 
 (a) Prior to February 15, 2013, the Securities shall not be redeemable. 
 (b) On and after February 15, 2013, subject to the terms and conditions of this Article 4, the Company may, at its option, redeem for cash all or a
portion of the Securities, at a price (the “Redemption Price”) equal to 100% of the principal amount of Securities to be redeemed, plus accrued and unpaid interest (including Contingent Interest and Additional Interest, if any) to
but excluding the Redemption Date. 
 (c) In the event that the Redemption Date occurs after a Regular Record Date for the payment of
interest and on or prior to the related Interest Payment Date, the Redemption Price for any such Securities to be redeemed shall be 100% of the principal amount of such Securities, and accrued and unpaid interest (including Contingent Interest and
Additional Interest, if any) shall be paid to the Holder on such Regular Record Date. 
 (d) The Securities are not subject to redemption
through the operation of any sinking fund. 
 Section 4.02. Selection by Trustee of Securities to Be Redeemed. If any Securities
selected for partial redemption are thereafter surrendered for 

  

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conversion in part before termination of the conversion right with respect to the portion of the Securities so selected, the converted portion of such
Securities shall be deemed (so far as may be), solely for purposes of determining the aggregate principal amount of Securities to be redeemed by the Company, to be the portion selected for redemption. Securities which have been converted during a
selection of Securities to be redeemed may be treated by the Trustee as outstanding for the purpose of such selection. Nothing in this Section 4.02 or Section 11.3 of the Original Indenture shall affect the right of any Holder to convert
any Securities pursuant to Article 9 before the termination of the conversion right with respect thereto. 
 Section 4.03. Notice of
Redemption. The Company shall notify each Holder of Securities to be redeemed in the manner provided in Section 11.4 of the Original Indenture. In addition to those matters set forth in Section 11.4 of the Original Indenture, a notice
of redemption sent to the Holder shall state: 
 (a) the then current Conversion Rate and provide a statement that the Securities called for
redemption may be converted at any time before the close of business on the third Scheduled Trading Day prior to the Redemption Date, and that Holders who wish to convert Securities must comply with the relevant procedures; 
 (b) in case any Security is to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date,
upon surrender of such Security, the Holder will receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed; 
 (c) the name and address of the Paying Agent and the Conversion Agent; 
 (d) that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; and 
 (e) the CUSIP or ISIN number, and that no representation is made as to the accuracy or correctness of the CUSIP or ISIN number, if any, listed in such notice or printed on the Securities. 
 ARTICLE 5 
 DEFAULTS
AND REMEDIES 
 Section 5.01. Additional Events of Default. In addition to those Events of Default
set forth in Section 5.1 of the Original Indenture, the following events shall also be Events of Default with respect to the Securities: 
 (a) failure by the Company to comply with its obligation to convert the Securities in accordance with this First Supplemental Indenture, upon exercise of a Holder’s conversion right and such failure continues for a period of 10 days;

  

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 (b) failure by the Company to give a Company Notice of the occurrence of a Fundamental Change to Holders
pursuant to Section 8.01 or notice of a specified corporate transaction (as described in Section 9.01(a)(iv)) to Holders, in each case when due; 
 (c) except as permitted by Section 10.02, any Securities Guarantee of any Significant Subsidiary shall be held in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in full
force and effect, or any Guarantor which is a Significant Subsidiary, or any person acting on its behalf, shall deny or disaffirm its obligation under the Securities Guarantee; 
 (d) failure by the Company for a period of 60 days after written notice from the Trustee or Holders of at least 25% in principal amount of Securities
then outstanding has been received to comply with any obligation, covenant or agreement in the Indenture or under the Securities (or 180 days after such notice with respect to any failure to comply with Section 11.01 hereof) (other than those
referred to in clauses (a), (b), (c), (e) and (f) of this Section 5.01); 
 (e) default by the Company or any Subsidiary in
the payment of the principal or interest on any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed in excess of $15,000,000 in the
aggregate of the Company and/or any such Subsidiary, whether such indebtedness now exists or shall hereafter be created, resulting in such indebtedness becoming or being declared due and payable, and such acceleration shall not have been rescinded
or annulled within 30 days after written notice of such acceleration has been received by the Company or such Subsidiary from the Trustee (or to the Company and the Trustee from Holders of at least 25% in principal amount of outstanding Securities);
and 
 (f) a final judgment or decree for the payment of $15,000,000 or more rendered against the Company or any Subsidiary, which judgment
is not fully covered by insurance or 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. 
 The foregoing will constitute Events of Default whatever the reason for any such Event of Default and whether it is
voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body. 
  

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 Notwithstanding the foregoing, a Default under clauses (d) or (e) of this Section 5.01
will not constitute an Event of Default until the Trustee notifies the Company (or the Holders of 25% or more in principal amount of the outstanding Securities notify the Company and the Trustee) of the Default in writing and the Company does not
cure such Default within the time specified in clauses (d) or (e) of this Section 5.01 after receipt of such notice. 
 Section 5.02. Sole Remedy for Failure to Report. Notwithstanding any other provision
of the Indenture, the sole remedy for an Event of Default relating to the failure to comply with the reporting obligations under Section 11.01 of this First Supplemental Indenture, and for any failure to comply with the requirements of
Section 314(a)(1) of the Trust Indenture Act, will for the 365 days after the occurrence of such an Event of Default consist exclusively of the right to receive Additional Interest on the principal amount of the Securities at a rate equal to
0.25% per annum. This Additional Interest will be payable in the same manner and subject to the same terms as other interest payable under this First Supplemental Indenture. The Additional Interest will accrue on all outstanding Securities from
and including the date on which an Event of Default relating to a failure to comply with Section 11.01 or Section 314(a)(1) of the Trust Indenture Act first occurs to but not excluding the 365th day thereafter (or such earlier date on which the Event of Default relating to the reporting obligations under Section 11.01 or Section 314(a)(1) of the Trust Indenture
Act shall have been cured or waived). On such 365th day (or earlier, if the Event of Default relating to such reporting obligations is cured or waived
prior to such 365th day), such Additional Interest will cease to accrue and the Securities will be subject to acceleration and other remedies as provided
in this Article 5 if the Event of Default is continuing. For the avoidance of doubt, the provisions of this Section 5.02 will not affect the rights of Holders of Securities in the event of the occurrence of any other Event of Default. 

 Section 5.03. Limitation on Suits. Subject to Section 5.8 of the Original Indenture, a Holder may not
pursue any remedy with respect to this First Supplemental Indenture or the Securities unless: 
 (a) such Holder has previously given to the
Trustee written notice stating that an Event of Default is continuing; 
 (b) Holders of at least 25% in principal amount of the outstanding
Securities have requested that the Trustee pursue the remedy; 
 (c) such Holders have offered to the Trustee security or indemnity
reasonably satisfactory to it against any loss, liability or expense to be incurred in compliance with such request; 
  

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 (d) the Trustee has not complied with such request within 60 days after receipt of the request and the
offer of security or indemnity; and 
 (e) the Holders of a majority in principal amount of the outstanding Securities have not given the
Trustee a direction that, in the opinion of the Trustee, is inconsistent with such request within such 60-day period. 
 A Holder may not use
this First Supplemental Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder. 
 ARTICLE 6 
 DISCHARGE OF INDENTURE 
 Section 6.01. Discharge of Liability on Securities. Article 4 of the Original Indenture shall not apply to the Securities. When (1) the
Company shall deliver to the Registrar for cancellation all Securities theretofore authenticated (other than any Securities which have been mutilated, destroyed, lost or wrongfully taken and in lieu of or in substitution for which other Securities
shall have been authenticated and delivered) and not theretofore canceled, or (2) all the Securities not theretofore canceled or delivered to the Registrar for cancellation shall have (a) been deposited for conversion (after all related
Conversion Periods have elapsed) and the Company or the Guarantors shall deliver to the Holders shares of Common Stock or a combination of cash and shares of Common Stock, as applicable, sufficient to pay all amounts owing in respect of all
Securities (other than any Securities which shall have been mutilated, destroyed, lost or wrongfully taken and in lieu of or in substitution for which other Securities shall have been authenticated and delivered) not theretofore canceled or
delivered to the Registrar for cancellation or (b) become due and payable on the Stated Maturity, Purchase Date, Fundamental Change Purchase Date or Redemption Date, as applicable, and the Company or the Guarantors shall deposit with the
Trustee cash and shares of Common Stock, if any, as applicable, sufficient to pay all amounts owing in respect of all Securities (other than any Securities which shall have been mutilated, destroyed, lost or wrongfully taken and in lieu of or in
substitution for which other Securities shall have been authenticated and delivered) not theretofore canceled or delivered to the Registrar for cancellation, including the principal amount, premium, if any, and interest (including Contingent
Interest and Additional Interest, if any) accrued and unpaid to such Stated Maturity, Purchase Date, Fundamental Change Purchase Date or Redemption Date, as the case may be, and if in either case (1) or (2) the Company or the Guarantors
shall also pay or cause to be paid all other sums payable hereunder by the Company, then this First Supplemental Indenture with respect to the Securities shall cease to be of further effect (except as to (i) remaining rights of registration of
transfer, substitution and exchange and conversion of Securities; (ii) rights hereunder of Holders to receive from the Trustee payments of the 

  

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amounts then due, including interest (including Contingent Interest and Additional Interest, if any) or premium, if any, with respect to the Securities and
the other rights, duties and obligations of Holders, as beneficiaries hereof solely with respect to the amounts, if any, so deposited with the Trustee; and (iii) the rights, obligations and immunities of the Trustee, Authenticating Agent,
Paying Agent, Conversion Agent and Registrar under this First Supplemental Indenture with respect to the Securities), and the Trustee, on demand of the Company accompanied by an Officer’s Certificate and an Opinion of Counsel as required by
Section 6.03 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this First Supplemental Indenture with respect to the Securities; however, the Company hereby agrees to
reimburse the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar for any costs or expenses thereafter reasonably and properly incurred by the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar and to
compensate the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar for any services thereafter reasonably and properly rendered by the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar in connection
with this First Supplemental Indenture with respect to the Securities. 
 Section 6.02. Reinstatement. If the Trustee or the
Paying Agent is unable to apply any money to the Holders entitled thereto by reason of any order or judgment of any court of governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s and each
Guarantor’s obligations under the Indenture with respect to the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 6.01 until such time as the Trustee or the Paying Agent is permitted to apply
all such money in accordance with the Indenture and the Securities to the Holders entitled thereto; provided, however, that if the Company or the Guarantors make any payment of principal amount of, interest (including Contingent Interest and
Additional Interest, if any) or premium, if any, on any Security following the reinstatement of its obligations, the Company and the Guarantors shall be subrogated to the rights of the Holders of such Securities to receive such payment from the
money held by the Trustee or Paying Agent. 
 Section 6.03. Officer’s Certificate; Opinion of Counsel. Upon any application
or demand by the Company to the Trustee to take any action under Section 6.01, the Company shall furnish to the Trustee an Officer’s Certificate or Opinion of Counsel stating that all conditions precedent, if any, provided for in this
First Supplemental Indenture relating to the proposed action have been complied with. 
  

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 ARTICLE 7 
 AMENDMENTS 
 Section 7.01. With Consent of Holders. In addition to the matters
described in Section 9.2 of the Original Indenture, the Company and the Trustee may not, without the consent of each Holder of Securities affected, amend or waive any portion of the Indenture or the Securities for one or more of the following
purposes: 
 (a) extend the stated time for payment of interest, including Contingent Interest and Additional Interest, if any, or premium, on
any Security; 
 (b) otherwise impair the right of any Holder to receive payment of principal of, interest (including Contingent Interest and
Additional Interest, if any) or premium, if any, on such Holder’s Securities 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 Securities; 
 (c) make any change that impairs or adversely affects the conversion rights of any Securities; 
 (d) reduce the Redemption Price, the Fundamental Change Purchase Price or the Purchase Price payable upon the redemption or repurchase or conversion of
any Security or amend or modify in any manner adverse to Holders of the Securities the Company’s obligation to make such payments; or 
 (e) make any changes to the amendment provisions which require each Holder’s consent or to the waiver provisions. 
 ARTICLE 8

 PURCHASE AT THE OPTION OF HOLDERS
UPON A FUNDAMENTAL 
 CHANGE; PURCHASE AT
THE OPTION OF HOLDERS 
 Section 8.01. Purchase at the Option of the Holder Upon a Fundamental Change. If a Fundamental Change shall occur at any time, each Holder shall have the right, at such Holder’s option, to require the Company to purchase
any or all of such Holder’s Securities on a date specified by the Company that is no later than the 35th calendar day after the date of the Company
Notice of the occurrence of such Fundamental Change (subject to extension to comply with applicable law, as provided in Section 8.03(d)) (the “Fundamental Change Purchase Date”). The Company shall purchase such Securities at a
price (the “Fundamental Change Purchase Price”), which shall be paid in cash, equal to 100% of the principal amount of the Securities to be purchased plus accrued and unpaid interest, including any Contingent Interest and Additional
Interest, to but 

  

 23 

 
excluding the Fundamental Change Purchase Date, unless the Fundamental Change Purchase Date is between a Regular Record Date and the Interest Payment Date to
which it relates, in which case the Fundamental Change Purchase Price shall equal 100% of the principal amount of Securities to be purchased, and accrued and unpaid interest, including Contingent Interest and Additional Interest, if any, shall be
paid to the Holder of record on the Regular Record Date. 
 (a) Notice of
Fundamental Change. The Company shall mail to all Holders and the Trustee a Company Notice of the occurrence of a Fundamental Change and of the purchase right arising as a result thereof, including the information required by
Section 8.03(a) hereof, on or before the 20th calendar day after the occurrence of such Fundamental Change. The Company shall promptly furnish to the
Paying Agent a copy of such Company Notice. 
 (b) Exercise of Option. For a Security to be so purchased at the option of the
Holder, such Holder must deliver to the Paying Agent such Security duly endorsed for transfer, together with a written notice of purchase (a “Fundamental Change Purchase Notice”) in the form entitled “Form of Fundamental Change
Purchase Notice” attached to the Security duly completed, on or before the Business Day immediately preceding the Fundamental Change Purchase Date, subject to extension to comply with applicable law. The Fundamental Change Purchase Notice shall
state: 
 (i) if certificated, the certificate numbers of the Securities which the Holder shall deliver to be purchased, or if
not certificated, such notice must comply with appropriate DTC procedures; 
 (ii) the portion of the principal amount of the
Securities which the Holder shall deliver to be purchased, which portion must be $1,000 in principal amount or a multiple thereof; and 
 (iii) that such Securities shall be purchased as of the Fundamental Change Purchase Date pursuant to the terms and conditions specified in paragraph 6 of the Securities and in this First Supplemental Indenture.

 (c) Procedures. The Company shall purchase from a Holder, pursuant to this Section 8.01, Securities if the principal amount of
such Securities is $1,000 or a multiple of $1,000 if so requested by such Holder. 
 Any purchase by the Company contemplated pursuant to the
provisions of this Section 8.01 shall be consummated by the delivery of the Fundamental Change Purchase Price to be received by the Holder promptly following the later of the Fundamental Change Purchase Date or the time of book-entry transfer
or delivery of the Securities. 
  

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 Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Purchase Notice contemplated by this Section 8.01 shall have the right at any time prior to the close of business on the Business Day prior to the Fundamental Change Purchase Date to withdraw such Fundamental Change Purchase
Notice (in whole or in part) by delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 8.03(b). 
 The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental Change Purchase Notice or written notice of withdrawal thereof. 
 At or before 11:00 a.m. (New York City time) on the Fundamental Change Purchase Date, the Company shall deposit with the Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent,
shall segregate and hold in trust as provided in Section 10.3 of the Original Indenture) cash sufficient to pay the aggregate Fundamental Change Purchase Price of the Securities to be purchased pursuant to this Section 8.01. Payment by the
Paying Agent of the Fundamental Change Purchase Price for such Securities shall be made promptly following the later of the Fundamental Change Purchase Date or the time of book-entry transfer or delivery of such Securities. If the Paying Agent
holds, in accordance with the terms of this First Supplemental Indenture, cash sufficient to pay the Fundamental Change Purchase Price of such Securities on the Business Day following the Fundamental Change Purchase Date, then, on and after such
date, such Securities shall cease to be outstanding and interest (including Contingent Interest and Additional Interest, if any), on such Securities shall cease to accrue, whether or not book-entry transfer of such Securities is made or such
Securities are delivered to the Paying Agent, and all other rights of the Holder shall terminate (other than the right to receive the Fundamental Change Purchase Price and previously accrued and unpaid interest (including Contingent Interest and
Additional Interest, if any), upon delivery or transfer of the Securities). Nothing herein shall preclude any withholding tax required by law. 
 The Company shall require each Paying Agent (other than the Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all cash held by the Paying Agent for the payment of the
Fundamental Change Purchase Price and shall notify the Trustee of any default by the Company in making any such payment. If the Company or an Affiliate of the Company acts as Paying Agent, it shall segregate the cash held by it as Paying Agent and
hold it as a separate trust fund. The Company at any time may require a Paying Agent to deliver all cash held by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the Paying Agent shall have no further
liability for the cash delivered to the Trustee. 
  

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 Section 8.02. Purchase of Securities at the Option of the Holder. 
 (a) A Holder shall have the option to require the Company to purchase any outstanding Securities on each of February 15, 2013, February 15,
2018 and February 15, 2023 (each, a “Purchase Date”), at a price (the “Purchase Price”) which shall be paid in cash, equal to 100% of the principal amount of the Securities to be repurchased plus any accrued
and unpaid interest, including any Contingent Interest and Additional Interest, if any, to but excluding the Purchase Date, upon: 
 (i) delivery to the Paying Agent by the Holder of a written notice of purchase (a “Purchase Notice”) at any time from the opening of business on the date that is 20 Business Days prior to the relevant Purchase Date until
the close of business on the second Business Day prior to such Purchase Date, stating: 
 (A) if certificated, the certificate
numbers of the Securities which the Holder will deliver to be purchased, or, if not certificated, the Purchase Notice must comply with appropriate DTC procedures; 
 (B) the portion of the principal amount of the Securities which the Holder will deliver to be purchased, which portion must be $1,000 in
principal amount or a multiple thereof; 
 (C) that such Securities shall be purchased by the Company as of the Purchase Date
pursuant to the terms and conditions specified in paragraph 6(a) of the Securities and in this First Supplemental Indenture; and 
 (ii) delivery or book-entry transfer of such Securities to the Paying Agent (together with all necessary endorsements) at the offices of the Paying Agent, such delivery or transfer being a condition to receipt by the Holder of the Purchase
Price therefor; provided, however, that such Purchase Price shall be so paid pursuant to this Section 8.02 only if the Securities so delivered or transferred to the Paying Agent shall conform in all respects to the description thereof in
the related Purchase Notice. 
 (b) The Company shall purchase from a Holder, pursuant to this Section 8.02, Securities if the principal
amount of such Securities is $1,000 or a multiple of $1,000 if so requested by such Holder. 
  

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 (c) Any purchase by the Company contemplated pursuant to the provisions of this Section 8.02 shall
be consummated by the delivery of the Purchase Price to be received by the Holder promptly following the later of the Purchase Date or the time of book-entry transfer or delivery of the Securities. 
 (d) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the Purchase Notice contemplated by this Section 8.02
shall have the right at any time prior to the close of business on the Business Day prior to the Purchase Date to withdraw such Purchase Notice (in whole or in part) by delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 8.03(b). 
 (e) The Paying Agent shall promptly notify the Company of the receipt by it of any Purchase Notice or written
notice of withdrawal thereof. 
 (f) At or before 11:00 a.m. (New York City time) on the Purchase Date, the Company shall deposit with the
Paying Agent (or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate and hold in trust) cash sufficient to pay the aggregate Purchase Price of the Securities to be purchased pursuant to this
Section 8.02. Payment by the Paying Agent of the Purchase Price for such Securities shall be made promptly following the later of the Purchase Date or the time of book-entry transfer or delivery of such Securities. If the Paying Agent holds, in
accordance with the terms of this First Supplemental Indenture, cash sufficient to pay the Purchase Price of such Securities on the Business Day following the Purchase Date, then, on and after such date, such Securities shall cease to be outstanding
and interest (including Contingent Interest and Additional Interest, if any) on such Securities shall cease to accrue, whether or not book-entry transfer of such Securities is made or such Securities are delivered to the Paying Agent, and all other
rights of the Holder shall terminate (other than the right to receive the Purchase Price and previously accrued interest (including Contingent Interest and Additional Interest, if any) upon delivery or transfer of the Securities). Nothing herein
shall preclude any withholding tax required by law. 
 (g) The Company shall require each Paying Agent (other than the Trustee) to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all cash held by the Paying Agent for the payment of the Purchase Price and shall notify the Trustee of any default by the Company in making any such
payment. If the Company or an Affiliate of the Company acts as Paying Agent, it shall segregate the cash held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to deliver all cash held by
it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon doing so, the Paying Agent shall have no further liability for the cash delivered to the Trustee. 
  

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 Section 8.03. Further Conditions and Procedures for Purchase at the Option of the Holder Upon a
Fundamental Change and Purchase of Securities at the Option of the Holder. 
 (a)
Notice of Purchase Date or Fundamental Change. The Company shall send notices (each, a “Company Notice”) to the Holders, beneficial owners of the Securities as required by applicable law, the Trustee and the Paying Agent, not
less than 20 Business Days prior to each Purchase Date, or on or before the 20th calendar day after the occurrence of the Fundamental Change, as the case
may be (each such date of delivery, a “Company Notice Date”). Each Company Notice shall include a form of Purchase Notice or Fundamental Change Purchase Notice, as the case may be, to be completed by a Holder and shall state:

 (i) the applicable Purchase Price or Fundamental Change Purchase Price, as the case may be; 
 (ii) if conversion is permitted under Section 9.01(a)(iv), the Conversion Rate at the time of such notice and any expected
adjustments to the Conversion Rate; 
 (iii) the applicable Purchase Date or Fundamental Change Purchase Date, as the case may
be, and the last date on which a Holder may exercise its repurchase rights under Section 8.01 or Section 8.02, as applicable; 
 (iv) the name and address of the Paying Agent and the Conversion Agent; 
 (v) that Securities
must be surrendered to the Paying Agent to collect payment of the Purchase Price or the Fundamental Change Purchase Price, as the case may be; 
 (vi) that Securities as to which a Purchase Notice or a Fundamental Change Purchase Notice has been delivered may be surrendered for conversion only if the applicable Purchase Notice or Fundamental Change Purchase
Notice, as the case may be, has been withdrawn in accordance with the terms of this First Supplemental Indenture; 
 (vii)
that the Purchase Price or the Fundamental Change Purchase Price for any Securities as to which a Purchase Notice or a Fundamental Change Purchase Notice, as applicable, has been given and not withdrawn shall be paid by the Paying Agent promptly
following the later of the Purchase Date or the Fundamental Change Purchase Date, as applicable, or the time of book-entry transfer or delivery of such Securities; 
  

 28 

 (viii) the procedures the Holder must follow under Sections 8.01 or 8.02, as applicable,
and Section 8.03; 
 (ix) that, unless the Company defaults in making payment of such Purchase Price or Fundamental
Change Purchase Price on Securities covered by any Purchase Notice or Fundamental Change Purchase Notice, as applicable, interest (including Contingent Interest and Additional Interest, if any) will cease to accrue on and after the Purchase Date or
Fundamental Change Purchase Date, as applicable; 
 (x) the CUSIP or ISIN number of the Securities; 
 (xi) the procedures for withdrawing a Purchase Notice or a Fundamental Change Purchase Notice, as the case may be; and 
 (xii) in the case of a Company Notice pursuant to Section 8.01, the events causing a Fundamental Change and the effective date of the
Fundamental Change. 
 Simultaneously with providing such Company Notice, the Company will publish a notice containing the information in
such Company Notice in a newspaper of general circulation in The City of New York or publish such information on its then existing website or through such other public medium as it may use at the time. 
 At the Company’s request, made at least five Business Days prior to the date upon which such notice is to be mailed, and at the Company’s
expense, the Paying Agent shall give the Company Notice in the Company’s name; provided, however, that, in all cases, the text of the Company Notice shall be prepared by the Company. 
 (b) Adequacy and Effect of Purchase Notice or Fundamental Change Purchase Notice; Withdrawal; Effect of Event of Default. The Company shall
reasonably determine whether the Purchase Notice, Fundamental Change Purchase Notice or written notice of withdrawal delivered by the relevant Holders satisfies the conditions set out in Section 8.01(b), Section 8.02(a) and
Section 8.03 for such notices. The Company’s determination under this Section 8.03(b) will be binding and conclusive, absent manifest error. 
 Upon receipt by the Company of the Purchase Notice or Fundamental Change Purchase Notice specified in Section 8.02(a) or Section 8.01(b), as applicable, the Holder of the Securities in respect of which such
Purchase Notice 

  

 29 

 
or Fundamental Change Purchase Notice, as the case may be, was given shall (unless such Purchase Notice or Fundamental Change Purchase Notice is withdrawn as
specified in the following two paragraphs) thereafter be entitled to receive solely the Purchase Price or Fundamental Change Purchase Price with respect to such Securities. Such Purchase Price or Fundamental Change Purchase Price shall be paid by
the Paying Agent to such Holder promptly following the later of (x) the Purchase Date or the Fundamental Change Purchase Date, as the case may be, with respect to such Securities (provided the conditions in this Article 8 have been
satisfied) and (y) the time of delivery or book-entry transfer of such Securities to the Paying Agent by the Holder thereof in the manner required by Section 8.02 or Section 8.01, as applicable. Securities in respect of which a
Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has been given by the Holder thereof may not be converted on or after the date of the delivery of such Purchase Notice or Fundamental Change Purchase Notice, as the case may
be, unless such Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has first been validly withdrawn as specified in the following two paragraphs. 
 A Purchase Notice or Fundamental Change Purchase Notice, as the case may be, may be withdrawn by means of a written notice of withdrawal delivered to the office of the Paying Agent at any time prior to 5:00 p.m., New
York City time, on the Business Day prior to the Purchase Date or the Fundamental Change Purchase Date, as the case may be, to which it relates, specifying: 
 (i) the principal amount of the Securities with respect to which such notice of withdrawal is being submitted; 
 (ii) if certificated, the certificate number of the Securities in respect of which such notice of withdrawal is being submitted, or, if
not certificated, the written notice of withdrawal must comply with appropriate DTC procedures; and 
 (iii) the principal
amount, if any, of such Securities which remains subject to the original Purchase Notice or Fundamental Change Purchase Notice, as the case may be, and which has been or shall be delivered for purchase by the Company. 
 There shall be no purchase of any Securities pursuant to Section 8.01 or Section 8.02 if an Event of Default has occurred and is continuing
(other than a default that is cured by the payment of the Purchase Price or Fundamental Change Purchase Price, as the case may be). The Paying Agent shall promptly return to the respective Holders thereof any Securities (x) with respect to
which a Purchase Notice or Fundamental Change Purchase Notice, as the case may be, has been withdrawn in compliance with this First Supplemental Indenture, or (y) held by it during the continuance of an Event of Default (other than a default
that is cured 

  

 30 

 
by the payment of the Purchase Price or Fundamental Change Purchase Price, as the case may be) in which case, upon such return, the Purchase Notice or
Fundamental Change Purchase Notice with respect thereto shall be deemed to have been withdrawn. 
 (c) Securities Purchased in Part.
Any Securities that are to be purchased only in part shall be surrendered at the office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company
and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing) and the Company shall execute, the Guarantors shall endorse and the Trustee or the Authenticating Agent shall authenticate and deliver to
the Holder of such Securities, without service charge, a new Security or Securities, of any authorized denomination as requested by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the principal amount of the
Securities so surrendered which is not purchased. 
 (d) Covenant to Comply with Securities Laws Upon Purchase of Securities. In
connection with any offer to purchase Securities under Section 8.02 or Section 8.01, the Company shall, to the extent applicable, (a) comply with Rules 13e-4 and 14e-1 (and any successor provisions thereto) under the Exchange Act, if
applicable; (b) file the related Schedule TO (or any successor schedule, form or report) under the Exchange Act, if applicable; and (c) otherwise comply with all applicable federal and state securities laws so as to permit the rights and
obligations under Section 8.02 or Section 8.01 to be exercised in the time and in the manner specified in Section 8.02 or Section 8.01. To the extent any other provision of this First Supplemental Indenture conflicts with any of
the foregoing, the foregoing shall govern. 
 (e) Officer’s Certificate. At least five Business Days before the Company Notice
Date, the Company shall deliver an Officer’s Certificate to the Trustee specifying whether the Company desires the Trustee to give the Company Notice required by Section 8.03(a) herein. 
 ARTICLE 9 
 CONVERSION

 Section 9.01. Conversion of Securities. (a) Right to Convert. Subject to the procedures for conversion set forth
in this Article 9, a Holder may convert its Securities, in whole or in part (provided that the total principal amount of Securities converted are in integral multiples of $1,000), prior to January 15, 2028 at a rate (the “Conversion
Rate”) of 43.9560 shares of Common Stock (subject to adjustment by the Company as set forth herein) per $1,000 principal amount of Securities when one or more of the conditions specified below are met and during 

  

 31 

 
the related specified period, subject to the limitation in clause 9.01(a)(iii). On and after January 15, 2028, as set forth under clause (b) below,
a Holder may convert its Securities until the close of business on the second Business Day immediately preceding Stated Maturity regardless of the conditions specified below. 
 (i) Conversion Upon Satisfaction of Sale Price Condition. A Holder may surrender all or a portion of its Securities for conversion
during any fiscal quarter (and only during such fiscal quarter) commencing after June 30, 2008 if the Last Reported Sale Price for the Common Stock for at least 20 Trading Days during the period of 30 consecutive Trading Days ending on the last
Trading Day of the immediately preceding fiscal quarter is greater than or equal to 120% of the Conversion Price in effect on such last Trading Day. 
 (ii) Conversion Upon Satisfaction of Trading Price Condition. A Holder may surrender its Securities for conversion during the five Business Day period after any 10 consecutive Trading Day period (the
“Measurement Period”) in which the Trading Price per $1,000 principal amount of Securities, as determined following a request by a Holder in accordance with the procedures set forth in this Section 9.01(a)(ii), for each Trading
Day of the Measurement Period was less than 95% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate for such Trading Day. In connection with any conversion in accordance with this Section 9.01(a)(ii), the
Bid Solicitation Agent shall have no obligation to determine the Trading Price of the Securities unless requested by the Company; and the Company shall have no obligation to make such request unless a Holder provides the Company with reasonable
evidence that the Trading Price per $1,000 principal amount of Securities would be less than 95% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate. Promptly after receiving such evidence, the Company shall
instruct the Bid Solicitation Agent to determine the Trading Price of the Securities beginning on the next Trading Day and on each successive Trading Day until the Trading Price per $1,000 principal amount of Securities for any Trading Day is
greater than or equal to 95% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate. 
 (iii) Conversion Upon Notice of Redemption. If the Company calls any or all of the Securities for redemption, a Holder may surrender for conversion the Securities called for redemption at any time prior to the close of business on
the third Scheduled Trading Day prior to the related Redemption Date, even if the Securities are not otherwise convertible at such time, after which time a Holder’s right to convert will expire unless the Company defaults in the payment of the
Redemption Price. 
  

 32 

 (iv) Conversion Upon Specified Corporate Transactions. 
 (A) If the Company elects to (1) distribute to all holders of Common Stock any rights or warrants entitling them to purchase, for a
period expiring within 45 days after the Ex-Dividend Date of the distribution, shares of Common Stock at a price per share less than the average of the Last Reported Sale Price of Common Stock for the 10 consecutive Trading Day period ending on the
Trading Day immediately preceding the declaration date for such distribution, or (2) distribute to all holders of Common Stock assets, debt securities or rights to purchase securities of the Company, which distribution has a per share Fair
Market Value, as determined by the Company’s Board of Directors, exceeding 15% of the Last Reported Sale Price on the Trading Day immediately preceding the declaration date for such distribution, then, in each case, the Company must notify the
Holders of such distribution and of their rights under this clause (A), in the manner provided in Section 1.7 of the Original Indenture, at least 25 Scheduled Trading Days prior to the Ex-Dividend Date for such distribution. Once the Company
has given such notice, Holders may surrender Securities for conversion at any time until the earlier of 5:00 p.m., New York City time, on the Business Day immediately prior to such Ex-Dividend Date or the Company’s announcement that such
distribution will not take place even if the Securities are not otherwise convertible at such time. 
 (B) If the Company is
party to a transaction described in clause (2) of the definition of Fundamental Change (without giving effect to the proviso set forth in the definition thereof relating to Publicly Traded Securities), the Company must notify Holders of such an
event and of their rights under this clause (B), in the manner provided in Section 1.7 of the Original Indenture, at least 25 Scheduled Trading Days prior to the anticipated effective date for such transaction. Once the Company has given such
notice, Holders may surrender Securities for conversion at any time until seven Scheduled Trading Days after the actual effective date of such transaction or, if later, the related Fundamental Change Purchase Date. 
 (C) A Holder may surrender all or a portion of such Holder’s Securities for conversion, if a Fundamental Change of the type described
in clause (1) or (3) in the definition thereof occurs. In such event, Holders may surrender Securities for conversion at any time beginning on the actual Effective Date of 

  

 33 

 
such Fundamental Change until and including the date which is seven Scheduled Trading Days after the actual effective date of such transaction or, if later,
until the related Fundamental Change Purchase Date. 
 A Holder may convert a portion of the principal amount of Securities if the portion is
$1,000 or a multiple of $1,000. The number of shares of Common Stock issuable or the combination of cash payable and the number of shares of Common Stock issuable, if any, upon conversion of a Security shall be determined as set forth in
Section 9.01(d). 
 (b) Conversion During Specified Period Immediately Prior to Stated Maturity. Notwithstanding anything herein
to the contrary, a Holder may surrender its Securities for conversion beginning on January 15, 2028, until the close of business on the second Business Day immediately preceding the Stated Maturity. 
 (c) Conversion Procedures. The following procedures shall apply to the conversion of Securities: 
 (i) In respect of a Definitive Security, a Holder must (A) complete and manually sign the conversion notice on the back of the
Security, or a facsimile of such conversion notice; (B) deliver such conversion notice, which is irrevocable, and the Security to the Conversion Agent; (C) to the extent any shares of Common Stock issuable upon conversion are to be issued
in a name other than the Holder’s, furnish appropriate endorsements and transfer documents as may be required by the Conversion Agent; (D) if required pursuant to Section 9.01(f) below, pay all transfer or similar taxes; and
(E) if required pursuant to Section 2.01(d) above, pay funds equal to interest payable on the next Interest Payment Date to which such Holder is not entitled. 
 (ii) In respect of a beneficial interest in a Global Security, a Beneficial Owner must comply with DTC’s procedures for converting a
beneficial interest in a Global Security and, if required pursuant to Section 2.01(d) above, pay funds equal to interest payable on the next Interest Payment Date to which such Beneficial Owner is not entitled, and if required, taxes or duties,
if any. 
 The date a Holder satisfies the foregoing requirements is the “Conversion Date” hereunder. 
 If a Holder converts more than one Security at the same time, the number of shares of Common Stock issuable or the combination of the cash payable and
number of shares of Common Stock issuable upon the conversion, if any, shall be based on the total principal amount of the Securities converted. 
  

 34 

 Upon surrender of a Security that is converted in part, the Company shall execute, the Guarantors shall
endorse and the Trustee or the Authenticating Agent shall authenticate and deliver to the Holder, a new Security in an authorized denomination equal in principal amount to the unconverted portion of the Security surrendered. 
 Delivery of shares of Common Stock will be accomplished by delivery to the Conversion Agent of certificates for the relevant number of shares of Common
Stock, other than in the case of Holders of Global Securities in book-entry form with DTC, in which case shares of Common Stock shall be delivered in accordance with DTC customary practices. 
 (d) Settlement Upon Conversion. In the event that the Company receives a Holder’s notice of conversion upon satisfaction of one or more of
the conditions to conversion described in this Section 9.01, the Company will notify the relevant Holders within two Scheduled Trading Days following the Conversion Date whether the Company will satisfy its obligation to convert the Securities
through delivery of (x) shares of Common Stock pursuant to clause (ii) below (plus cash in lieu of fractional shares) or (y) a combination of cash and shares of Common Stock, if any, (such method of settlement, a “Net-Share
Settlement”) pursuant to clause (i) below; provided that the Company may not elect to satisfy such obligation pursuant to clause (ii) below if the Company has made the election to waive such right to do so as set forth in
the immediately succeeding sentence or if the Conversion Period for the applicable Securities would not commence on or after the Scheduled Trading Day after the Company’s notice of settlement. At any time on or before the third Scheduled
Trading Day prior to the applicable Conversion Period for a Net-Share Settlement, the Company may irrevocably waive, in its sole discretion without the consent of the Holders, by notice to the Trustee and to the Holders, its right to satisfy its
Conversion Obligation in shares of its Common Stock pursuant to clause (ii) below (plus cash in lieu of any fractional shares). Notwithstanding the foregoing, if the Company elects to redeem the Securities, it will, in its notice of redemption,
elect whether it will settle any conversions of Securities called for redemption pursuant to clause (i) or (ii) below (unless it has irrevocably elected to waive its right to satisfy its Conversion Obligation pursuant to clause
(ii) below), which election shall apply to all Securities converted following the Company’s notice of redemption. 
 (i) If the Company chooses or has to satisfy its obligation to convert the Securities (the ‘‘Conversion Obligation’’) by Net-Share Settlement (or if the Company has irrevocably elected to waive its right to
satisfy its Conversion Obligation pursuant to clause (ii) below), upon 

  

 35 

 
conversion the Company will deliver to converting Holders cash and Common Stock, if any, in respect of each $1,000 principal amount of Securities being
converted, equal to the aggregate Daily Settlement Amounts for each of the 20 VWAP Trading Days during the related Conversion Period; provided that the Company shall deliver cash in lieu of any fractional shares as described below in
Section 9.01(e). The Daily Settlement Amounts shall be determined by the Company promptly following the last VWAP Trading Day of the Conversion Period. 
 The amount of cash and Common Stock, if any, delivered in respect of any Security converted pursuant to this clause (i) will be
delivered to converting Holders as soon as practicable following the last VWAP Trading Day of the applicable Conversion Period. 
 (ii) If the Company elects to satisfy all of its Conversion Obligation with respect to Securities to be converted in shares of Common Stock, the Company will deliver to any converting Holder, for each $1,000 principal amount of the
Securities, a number of shares of Common Stock equal to the Conversion Rate for such Securities, plus cash in lieu of any fractional shares determined as described below in Section 9.01(e). 
 The shares of Common Stock in respect of any Security converted (and cash in lieu of any fractional shares) pursuant to this clause
(ii) will be delivered through the Conversion Agent or DTC as soon as practicable following the applicable Conversion Date for such Security. 
 (iii) With respect to a conversion of a Security pursuant to clause (ii) above, at and after the close of business on the Conversion Date, the Person in whose name any certificate representing any shares of
Common Stock issuable upon such conversion is registered shall be treated as a stockholder of record of the Company to the extent permitted by law. With respect to a conversion of a Security pursuant to clause (i) above by Net Share Settlement,
on each VWAP Trading Day during the related Conversion Period, the Person in whose name any certificate representing any shares of Common Stock constituting the Daily Settlement Amount for such VWAP Trading Day is registered shall be treated as a
stockholder of record of the Company of such number of shares to the extent permitted by law on and after the close of business on such VWAP Trading Day. On and after the Conversion Date with respect to a conversion of a Security pursuant hereto,
all rights of the Holder of such Security shall terminate, other than the right to receive the consideration deliverable upon conversion of such Security as provided herein. A Holder of a Security is not entitled, as such, to any rights of a holder
of Common Stock until, if such Holder converts such Security and is entitled pursuant hereto to receive shares of Common Stock in respect 

  

 36 

 
of such conversion, the close of business on the Conversion Date or respective VWAP Trading Days, as the case may be, with respect to such conversion.

 (e) Cash Payments in Lieu of Fractional Shares. The Company shall not issue a fractional share of Common Stock upon conversion of
Securities. Instead the Company shall deliver cash for the current market value of the fractional share. The current market value of a fractional share shall be determined to the nearest 1/10,000th of a share by multiplying the Last Reported Sale
Price of the Common Stock on the Conversion Date (or, in the case of Net-Share Settlement, the Daily VWAP of the Common Stock on the last VWAP Trading Day of the relevant Conversion Period) by the fractional amount and rounding the product to the
nearest whole cent. 
 (f) Taxes on Conversion. If a Holder converts Securities, the Company shall pay any documentary, stamp or
similar issue or transfer tax due on the issue of shares of Common Stock upon the conversion. However, the Holder shall pay any such tax which is due because the Holder requests the shares to be issued in a name other than the Holder’s name.
The Conversion Agent may refuse to deliver the certificates representing the Common Stock being issued in a name other than the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax which shall be due because the
shares are to be issued in a name other than the Holder’s name, but the Conversion Agent shall have no duty to determine if any such tax is due. Nothing herein shall preclude any withholding of tax required by law. 
 (g) Certain Covenants of the Company. 
 (i) The Company shall, prior to issuance of any Securities hereunder, and from time to time as may be necessary, reserve out of its authorized but unissued Common Stock or shares of Common Stock held in treasury, a
sufficient number of shares of Common Stock, free of preemptive rights, to permit the conversion of the Securities. 
 (ii)
All shares of Common Stock delivered upon conversion of the Securities shall be newly issued shares or treasury shares, shall be duly and validly issued and fully paid and nonassessable and shall be free from preemptive rights and free of any lien
or adverse claim. 
 (iii) The Company shall endeavor promptly to comply with all federal and state securities laws regulating
the issuance and delivery of shares of Common Stock upon the conversion of Securities, if any, and shall cause to have listed or quoted all such shares of Common Stock on each U.S. national securities exchange or over-the-counter or other domestic
market on which the Common Stock is then listed or quoted. 
  

 37 

 (iv) Before taking any action which would cause an adjustment increasing the Conversion
Rate to an amount that would cause the Conversion Price to be reduced below the then par value per share of the Common Stock, if any, of the shares of Common Stock issuable upon conversion of the Securities, the Company will take all corporate
action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue shares of such Common Stock at such adjusted Conversion Rate. 
 Section 9.02. Adjustments to Conversion Rate. The Conversion Rate shall be adjusted by the Company as follows: 
 (a) If the Company issues shares of Common Stock as a dividend or distribution on shares of the Common Stock, or effects a share split or share
combination, the Conversion Rate will be adjusted based on the following formula: 
 

 
  

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

			
	CR’	 	=	 	the new Conversion Rate in effect immediately after the Ex-Dividend Date for such dividend or distribution, or the effective date of such share split or share combination, as the case may be;

			
	OS0	 	=	 	the number of shares of Common Stock outstanding immediately prior to the Ex-Dividend Date for such dividend or distribution, or the effective date of such share split or share combination,
as the case may be; and
			
	OS’	 	=	 	the number of shares of Common Stock outstanding immediately after, and solely as a result of, such event.

 Such adjustment shall become effective immediately after (i) the Ex-Dividend Date for such dividend or
distribution or (ii) the date on which such split or combination becomes effective, as applicable. If any dividend or distribution of the type described in this clause Section 9.02(a) is declared but not so paid or made, the new Conversion
Rate shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 
  

 38 

 (b) If the Company distributes to all holders of its Common Stock any rights or warrants entitling them
to purchase, for a period of not more than 45 days after the Ex-Dividend Date for the distribution, shares of Common Stock at a price per share less than the average of the Last Reported Sale Prices of the Common Stock for the 10 consecutive Trading
Day period ending on the Trading Day immediately preceding the declaration date for such distribution, the Conversion Rate will be adjusted based on the following formula: 
 

 
  

					
	where,	 		 	
			
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such distribution;
			
	CR’	 	=	 	the new Conversion Rate in effect immediately after the Ex-Dividend Date for such distribution;
			
	OS0	 	=	 	the number of shares of Common Stock outstanding immediately prior to the Ex-Dividend Date for such distribution;
			
	X	 	=	 	the total number of shares of Common Stock issuable pursuant to such rights or warrants; and
			
	Y	 	=	 	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights 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 the Trading Day immediately preceding the Ex-Dividend Date for such distribution.

 For purposes of this clause Section 9.02(b), in determining whether any rights or warrants entitle the
Holders to subscribe for or purchase shares of Common Stock at less than the average of the applicable Last Reported Sale Prices, and in determining the aggregate exercise or conversion price payable for such shares of Common Stock, there shall be
taken into account any consideration received by the Company for such rights or warrants and any amount payable on exercise or conversion thereof, with the value of such consideration, if other than cash, to be determined by the Board of Directors.
If any right or warrant described in this clause Section 9.02(b) is not exercised or converted prior to the expiration of the exercisability or convertibility thereof, the new Conversion Rate shall be readjusted to the Conversion Rate that
would then be in effect if such right or warrant had not been so issued. Any adjustment made pursuant to this clause Section 9.02(b) shall become effective immediately after the Ex-Dividend Date for the applicable distribution. 
  

 39 

 (c) If the Company distributes shares of Capital Stock, evidences of its indebtedness or other assets or
property of the Company to all holders of the Common Stock, excluding: 
 (i) dividends or distributions as to which an
adjustment applies under clause (a) or (b) above; 
 (ii) dividends or distributions paid exclusively in cash; and

 (iii) Spin-Offs to which the provisions set forth below in this clause (c) shall apply; 
 then the Conversion Rate will be adjusted based on the following formula: 
 

 
  

					
	where,	 		 	
			
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such distribution;
			
	CR’	 	=	 	the new Conversion Rate in effect immediately after the Ex-Dividend Date for such distribution;
			
	SP0	 	=	 	the average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Day period ending 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 shares of Capital Stock, evidences of indebtedness, assets or property distributed with respect to each outstanding share
of Common Stock on the Ex-Dividend Date for such distribution.

 Such adjustment shall become effective immediately after the Ex-Dividend Date for the applicable distribution.

 With respect to an adjustment pursuant to this clause (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 (a “Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the
tenth Trading Day immediately following, and including, the effective date of the Spin-Off will be increased based on the following formula: 
  

 40 

 

 
  

					
	where,	 		 	
			
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the tenth Trading Day immediately following, and including, the effective date of the Spin-Off;
			
	CR’	 	=	 	the new Conversion Rate in effect immediately after the tenth Trading Day immediately following, and including, the effective date of the Spin-Off;
			
	FMV0	 	=	 	the average of the Last Reported Sale Prices of the Capital Stock or similar equity interest distributed to holders of Common Stock applicable to one share of Common Stock over the first 10
consecutive Trading Day period immediately following, and including, the effective date of the Spin-Off; and
			
	MP0	 	=	 	the average of the Last Reported Sale Prices of Common Stock over the first 10 consecutive Trading Day period immediately following, and including, the effective date of the
Spin-Off.

 Such adjustment shall occur immediately after the tenth Trading Day immediately following, and including, the
effective date of the Spin-Off; provided that in respect of any conversion during the ten Trading Days following the effective date of any Spin-Off, references within the portion of this clause (c) related to “Spin-Offs” to 10
Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed between the effective date of such Spin-Off and the relevant Conversion Date. 
 If any such dividend or distribution described in this clause (c) is declared but not paid or made, the new Conversion Rate shall be readjusted to be the Conversion Rate that would then be in effect if such
dividend or distribution had not been declared. 
 (d) If any cash dividend or distribution is made to all holders of Common Stock, the
Conversion Rate will be adjusted based on the following formula: 
 

 
  

 41 

					
	where,	 		 	
			
	CR0	 	=	 	the Conversion Rate in effect immediately prior to the Ex-Dividend Date for such distribution;
			
	CR’	 	=	 	the new Conversion Rate in effect immediately after the Ex-Dividend Date for such distribution;
			
	SP0	 	=	 	the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the Ex-Dividend Date for such distribution; and
			
	C	 	=	 	the amount in cash per share of Common Stock of the Company distributes to holders of Common Stock.

 An adjustment to the Conversion Rate made pursuant to this clause (d) shall become effective immediately
after the Ex-Dividend Date for the applicable dividend or distribution. If any dividend or distribution described in this clause (d) is declared but not so paid or made, the new Conversion Rate shall be readjusted to the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared. 
 (e) If the Company or any of its Subsidiaries makes a
payment in respect of a tender or exchange offer for Common Stock, to the extent that the cash and value of any other consideration included in the payment per share of 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 will be increased based on the following formula: 
 

 
  

					
	where,	 		 	
			
	CR0	 	=	 	the Conversion Rate in effect at the close of business on the last Trading Day of the 10 consecutive Trading Day period commencing on the Trading Day next succeeding the date such tender or
exchange offer expires;
			
	CR’	 	=	 	the new Conversion Rate in effect immediately following the last Trading Day of the 10 consecutive Trading Day period commencing on the Trading Day next succeeding the date such tender or
exchange offer expires;

  

 42 

					
	AC	 	=	 	the aggregate value of all cash and any other consideration (as determined by the Board of Directors) paid or payable for shares purchased in such tender or exchange offer;
			
	OS0	 	=	 	the number of shares of Common Stock outstanding immediately prior to the expiration of such tender or exchange offer;
			
	OS’	 	=	 	the number of shares of Common Stock outstanding immediately after the expiration of such tender or exchange offer (after giving effect to the purchase or exchange of shares pursuant to such
tender or exchange offer); and
			
	SP’	 	=	 	the average of the Last Reported Sale Prices of Common Stock over the 10 consecutive Trading Day period commencing on the Trading Day next succeeding the date such tender or exchange offer
expires.

 The adjustment to the Conversion Rate under this clause (e) shall become effective immediately following the
tenth Trading Day next succeeding the date such tender or exchange offer expires; provided that, in respect of any conversion during the ten Trading Days following the date that any tender or exchange offer expires, references within this
clause (e) to 10 Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed between the date such tender or exchange offer expires and the relevant Conversion Date. If the Company or one of its Subsidiaries is
obligated to purchase Common Stock pursuant to any such tender or exchange offer but are permanently prevented by applicable law from effecting any such purchase or all such purchases are rescinded, the new Conversion Rate shall be readjusted to be
the Conversion Rate that would be in effect if such tender or exchange offer had not been made. 
 (f) Notwithstanding the foregoing
provisions of this Section 9.02, no adjustment will be made thereunder, nor shall an adjustment be made to the ability of a Holder to convert, for any distribution described therein if the Holder will otherwise participate in the distribution
on the same terms as holders of Common Stock as if such Holder held a number of shares of Common Stock equal to the applicable Conversion Rate, multiplied by the principal amount (expressed in thousands) of the Securities held by such holder,
without having to convert its Securities. Further, if the application of the foregoing formulas in this Section 9.02 would result in a decrease in the Conversion Rate, no adjustment to the Conversion Rate will be made (except on account of
share combinations). 
 (g) No adjustment to the Conversion Rate will be made unless as specifically set forth in this Section 9.02 and
Section 9.03. 
 (h) Without limiting the foregoing, no adjustment to the Conversion Rate need be made: 
 (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 securities of the Company and the investment of additional optional amounts in shares of Common Stock under any plan; 
  

 43 

 (ii) upon the issuance of any shares of Common Stock or options or rights to purchase
shares of Common Stock pursuant to any present or future employee, director or consultant benefit plan or program or employee stock purchase plan of or assumed by the Company or any of its Subsidiaries; 
 (iii) upon the issuance of any shares of Common Stock pursuant to any option, warrant, right, or exercisable, exchangeable or convertible
security not described in clause (ii) above and outstanding as of the Issue Date; 
 (iv) for a change in the par value
of the Common Stock; or 
 (v) for accrued and unpaid Interest (including Contingent Interest and Additional Interest, if any)
on the Securities. 
 (i) No adjustment to the Conversion Rate will be required unless the adjustment would require an increase or decrease
of at least 1% of the Conversion Rate. If the adjustment is not made because the adjustment does not change the Conversion Rate by at least 1%, then the adjustment that is not made will be carried forward and taken into account in any future
adjustment. All required calculations will be made to the nearest cent or 1/1000th of a share, as the case may be. Notwithstanding the foregoing, if the Securities are called for redemption or, upon a Fundamental Change, all adjustments not
previously made will be made for all the Securities to be converted after the Company’s notice of redemption to the applicable Redemption Date or after the Company’s notice of a Fundamental Change, as applicable. 
 (j) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the Trustee and any Conversion Agent other than the
Trustee an Officer’s 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
Officer’s Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion Rate of which it has knowledge is still in effect. Promptly after delivery of such
certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which each adjustment becomes effective and shall mail such notice of such adjustment of the
Conversion Rate to the Holder of each Security at such 

  

 44 

 
Holder’s last address appearing on the Securities Register provided for in Section 2.04 of this First Supplemental Indenture within 20 days after
execution thereof. Failure to deliver such notice shall not affect the legality or validity of any such adjustment. 
 (k) For purposes of
this Section 9.02, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock. If the Company pays any dividend or makes any distribution on, or issues any rights, options or warrants in respect of, shares of Common Stock held in treasury by the Company, the Company shall not issue, transfer or convey
such shares of Common Stock in a manner that would have the effect of circumventing the provisions of this Section 9.02. 
 (l) If
Net-Share Settlement applies and any provision of this Article 9 requires a calculation of an average of the Daily VWAP over a span of multiple days, the Company will make appropriate adjustments to the Daily Settlement Amount (determined in good
faith by the Board of Directors) 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
from which such calculation is to be calculated; provided that such adjustments shall only be made to the Daily Settlement Amounts relating to days prior to the date that the adjustment to the Conversion Rate becomes effective. 
 Section 9.03. Adjustment to Common Stock Delivered Upon Certain Fundamental Changes. (a) If a Holder elects to convert Securities
pursuant to Section 9.01(a)(iv) above in connection with a Fundamental Change on or following the effective date of the transaction and the transaction has an effective date occurring on or prior to February 15, 2013, subject to
Section 9.04 below, the Conversion Rate for such converted Securities shall be increased by an additional number of shares of Common Stock (the “Additional Shares”) as described below. Any conversion will be deemed to have
occurred in connection with such Fundamental Change if such Securities are surrendered for conversion on or following the effective date of a Fundamental Change and prior to the expiration of the time during which Securities may be converted in
respect of such Fundamental Change as specified in Section 9.01(a)(iv) and notwithstanding the fact that a Security may then be convertible because another condition to conversion also has been satisfied. 
 (b) The number of Additional Shares will be determined by reference to the table attached as Schedule A hereto, based on the actual effective date on
which the Fundamental Change occurs or becomes effective (the “Effective Date”) and the Stock Price paid per share of Common Stock with respect to such Fundamental Change; provided that if the Stock Price is between two Stock
Price 

  

 45 

 
amounts set forth in such table or the Effective Date is between two Effective Dates in the table, the number of Additional Shares will be determined by a
straight-line interpolation between the number of Additional Shares set forth for the higher and lower Stock Price amounts and the two dates, as applicable, based on a 365-day year; provided further that if the Stock Price is greater than
$100.00 per share (subject to adjustment as set forth in clause (c) below) or less than $17.50 per share (subject to adjustment as set forth in clause (c) below), then no Additional Shares will be added to the Conversion Rate.
Notwithstanding the foregoing, the Conversion Rate shall not exceed 57.1429 per $1,000 principal amount of Securities on account of adjustments pursuant to this Section 9.03, subject to adjustments set out in Section 9.02(a) through
(e). 
 (c) The Stock Prices set forth in the first row of the table in Schedule A hereto will be adjusted as of any date on which the
Conversion Rate of the Securities is otherwise adjusted pursuant to Section 9.02. The adjusted Stock Prices will 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 and the denominator of which is the Conversion Rate as so adjusted. The number of Additional Shares set forth in such table will be adjusted in the same manner as the Conversion Rate as set forth
in Section 9.02. 
 Section 9.04. Effect of Recapitalizations, Reclassifications, and Changes of Common Stock. (a) If
any of the following events occur: (i) any recapitalization, reclassification or change of the outstanding shares of Common Stock (other than a subdivision or combination to which Section 9.02(a) applies), (ii) any consolidation,
merger or combination of the Company with another Person, (iii) any sale or conveyance to another Person of all or substantially all of the property and assets of the Company and its Subsidiaries, or (iv) any statutory share exchange, in
each case as a result of which Common Stock would be converted into, or exchanged for, stock, other securities, other property or assets (including cash or any combination thereof) (any such event or transaction, a “Reorganization
Event”), then, following the effective time of the Reorganization Event, the right to receive shares of Common Stock upon conversion of Securities, if any, will be changed into a right to receive the kind and amount of shares of stock,
other securities or other property or assets (including cash or any combination thereof) (the “Reference Property”) that a Holder would have been entitled to receive upon such Reorganization Event in respect of Common Stock, as
provided below. If the Reorganization Event causes Common Stock to be converted into the right to receive more than a single type of consideration (determined based in part upon any form of stockholder election), the Reference Property will 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. The Company will notify Holders of the weighted average as soon as practicable after such
determination is made. Upon 

  

 46 

 
such Reorganization Event, the Company or any Successor Company will enter into a supplemental indenture consistent with the foregoing. Such supplemental
indenture shall provide for provisions and adjustments which shall be as nearly equivalent as may be practicable to the provisions and adjustments provided for in this Article 9, Article 7 and Article 8 of this First Supplemental Indenture, Article
9 of the Original Indenture and the definition of Fundamental Change, as appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply to such other Person if different
from the original issuer of the Securities. 
 (b) Following the effective time of any such Reorganization Event, settlement of Securities
converted shall be in units of Reference Property or cash and units of Reference Property, if applicable, determined in accordance with Section 9.01(d)(i) and Section 9.01(d)(ii) above. The Conversion Rate will relate to units of Reference
Property (a “unit” of Reference Property being the kind and amount of reference property that a holder of one share of Common Stock would have received in such transaction); and the Daily VWAP will be determined based on the Daily VWAP of
one unit of Reference Property. 
 (c) The Company shall cause notice of the execution of any supplemental indenture required by this
Section 9.04 to be mailed to each Holder, at its address appearing on the Securities Register provided for in Section 2.04 of this First Supplemental Indenture, within 20 calendar days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of such supplemental indenture. 
 (d) The above provisions of this Section 9.04 shall
similarly apply to successive Reorganization Events. 
 (e) If this Section 9.04 applies to any event or occurrence, Section 9.02
shall not apply in respect of such event or occurrence. 
 (f) The Company shall not become a party to any Reorganization Event unless its
terms are consistent with the foregoing. None of the foregoing provisions shall affect the right of a Holder of Securities to convert the Securities as set forth in and subject to Section 9.01 prior to the effective time of such Reorganization
Event. 
 Section 9.05. Responsibility of Trustee. The Trustee and any other Conversion Agent shall not at any time be under any
duty or responsibility to the Company or any Holder of Securities to determine when the Securities become convertible, the Conversion Rate, or whether any facts exist which may require any adjustment 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 in making the same. The Trustee and any other Conversion Agent shall 

  

 47 

 
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 or property, which may
at any time be issued or delivered upon the conversion of any Security; 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 cash or shares of Common Stock or stock certificates or other securities or property upon the surrender of any Security for the purpose of conversion or to comply with any of the duties, responsibilities
or covenants of the Company contained in this Article 9. 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 9.04 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 Securities after any
Reorganization Event or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 6.1 of the Original Indenture, may accept as conclusive evidence of the correctness of any such provisions, and shall be
protected in relying upon, an Officer’s Certificate with respect thereto. 
 Section 9.06. Stockholder Rights Plan. To the
extent that the Company has a rights plan in effect upon conversion of the Securities into Common Stock, the Holder will receive upon conversion of the Securities in respect of which the Company has elected to deliver Common Stock, if applicable,
the rights under the rights plan, unless prior to any conversion, the rights have separated from the Common Stock, in which case, and only in such case, the Conversion Rate will be adjusted at the time of separation as if the Company distributed to
all holders of Common Stock shares of the Company’s Capital Stock, evidences of indebtedness or assets as described in Section 9.02(c) above, subject to readjustment in the event of the expiration, termination or redemption of such rights.
In lieu of any such adjustment, the Company may amend such applicable stockholder rights agreement to provide that upon conversion of the Securities the Holders will receive, in addition to the Common Stock issuable upon such conversion, the rights
which would have attached to such Common Stock if the rights had not become separated from the Common Stock under such applicable stockholder rights agreement. 
 Section 9.07. No Stockholder Rights. For the avoidance of doubt, Holders of Securities will not have any rights as holders of Common Stock (including voting rights and rights to receive any dividends or
other distributions on the Common Stock) if and until the Securities are converted into shares of Common Stock. 
 Section 9.08.
Withholding Taxes for Adjustments in Conversation Rate. If the Company pays withholding taxes on behalf of a Holder as a result of an 

  

 48 

 
adjustment to the Conversion Rate, the Company may, at its option, set off such payments against payments of cash and shares of Common Stock on the
Securities. 
 ARTICLE 10 
 GUARANTEE OF SECURITIES 
 Section 10.01. Securities Guarantee. The
Securities shall be fully and unconditionally guaranteed by the Guarantors and the provisions of Article Fourteen of the Original Indenture shall apply to the Securities. 
 Section 10.02. Release of A Guarantor; Termination Of Securities Guarantee. All Subsidiaries that from time to time guarantee any of the Company’s indebtedness shall be Guarantors hereunder. A
Guarantor shall be deemed released and relieved from all its obligations under its Securities Guarantee upon: 
 (a) a sale or other
disposition (including by way of consolidation or merger) of such Guarantor or the sale or disposition of all or substantially all the assets of such Guarantor; or 
 (b) discharge of the Securities as provided in Article Four of the Original Indenture. 
 The Trustee shall
deliver an appropriate instrument evidencing any such release upon receipt of a request by the Company accompanied by an Officer’s Certificate and Opinion of Counsel certifying as to the compliance with this Section 10.02. 
 Any Guarantor not released in accordance with this Section 10.02 remains liable for the full amount of principal of and interest on the Securities
as provided in the Securities and Article 14 of the Original Indenture. 
 ARTICLE 11 
 MISCELLANEOUS 
 Section 11.01. Compliance with Trust Indenture
Act. In addition to the Company’s reporting obligations set forth in Section 7.4 of the Original Indenture, the Company shall also comply with the provisions of Section 314(a) of the Trust Indenture Act. 
  

 49 

 Section 11.02. No Defeasance. The provisions of Article Thirteen of the Original Indenture
shall not apply to any Securities issued under this First Supplemental Indenture. 
 Section 11.03. Communication by Holders with
other Holders. Holders may communicate pursuant to Section 312(b) of the Trust Indenture Act with other Holders with respect to their rights under this First Supplemental Indenture or the Securities. The Company, the Trustee, the Registrar
and anyone else shall have the protection of Section 312(c) of the Trust Indenture Act. 
 Section 11.04. Rules by Trustee,
Paying Agent and Registrar. The Trustee may make reasonable rules for action by, or a meeting of, Holders. The Registrar and the Paying Agent may make reasonable rules for their functions. 
 Section 11.05. Governing Law. THIS FIRST SUPPLEMENTAL INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. 
 Section 11.06. No Recourse Against Others. An incorporator, director, officer, employee,
partner or stockholder of the Company or any Guarantor, solely by reason of this status, shall not have any liability for any obligations of the Company or such Guarantor under the Securities, the Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation. By accepting a Security, each Holder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
 Section 11.07. Successors. All agreements of the Company in this First Supplemental Indenture and the Securities shall bind its successors.
All agreements of the Trustee in this First Supplemental Indenture shall bind its successors. 
 Section 11.08. Multiple Originals.
The parties may sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this First Supplemental Indenture.

 Section 11.09. Table of Contents; Headings. The table of contents, cross-reference sheet and headings of the Articles and
Sections of this First Supplemental Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof. 
  

 50 

 Section 11.10. Severability Clause. In case any provision in this First Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such
invalidity, illegality or unenforceability. 
 Section 11.11. Calculations. Except as otherwise provided herein, the Company will
be responsible for making all calculations called for under the Indenture and the Securities. The Company will make all such calculations in good faith and, absent manifest error, its calculations will be final and binding on Holders. The Company
will 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 deliver a copy of such schedule to any Holder upon the request of such Holder. 
 Section 11.12.
Ratification and Incorporation of Original Indenture. As supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture and this First Supplemental Indenture shall be read, taken and
construed as one and the same instrument. 
 [Remainder of the page intentionally left blank] 
  

 51 

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

			
	FLOTEK INDUSTRIES, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	 AMERICAN STOCK TRANSFER &
 TRUST COMPANY, as Trustee

		
	By:	 	 /s/ Herbert J. Lemmer

	Name:	 	Herbert J. Lemmer
	Title:	 	Vice President
	
	GUARANTORS:
	
	CAVO DRILLING MOTORS, LTD. CO.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	CESI CHEMICAL, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer and Chairman

			
	FLOTEK PAYMASTER, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	MATERIAL TRANSLOGISTICS, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	PADKO INTERNATIONAL, INCORPORATED
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer, Chairman and President
	
	PETROVALVE, INC.
		
	By:	 	 /s/ Jerry D. Dumas, Sr.

	Name:	 	Jerry D. Dumas, Sr.
	Title:	 	Chief Executive Officer, Chairman and President

			
	SES HOLDINGS, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	SOONER ENERGY SERVICES, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	SPIDLE SALES & SERVICE, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	TELEDRIFT ACQUISITION, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President

			
	TRINITY TOOL, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	TURBECO, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President
	
	USA PETROVALVE, INC.
		
	 By:
	 	 /s/ Jerry D. Dumas, Sr.

	 Name:
	 	Jerry D. Dumas, Sr.
	 Title:
	 	Chief Executive Officer, Chairman and President

 SCHEDULE A 
 The following table sets forth the number of Additional Shares to be added to the Conversion Rate per $1,000 principal amount of Securities pursuant to Section 9.03 of this First Supplemental Indenture:

  

																					
	 	  	Stock Price
	 Effective Date
	  	$17.50	  	$20.00	  	$22.75	  	$25.00	  	$30.00	  	$40.00	  	$50.00	  	$60.00	  	$75.00	  	$100.00
	February 14, 2008	  	13.1869	  	10.5698	  	8.5977	  	7.4269	  	5.6569	  	3.7521	  	2.7296	  	2.0810	  	1.4519	  	0.8458
	February 15, 2009	  	13.1869	  	9.6771	  	7.6896	  	6.5471	  	4.8875	  	3.2019	  	2.3312	  	1.7839	  	1.2521	  	0.7350
	February 15, 2010	  	13.1869	  	8.6840	  	6.6375	  	5.5145	  	3.9799	  	2.5589	  	1.8665	  	1.4355	  	1.0153	  	0.6021
	February 15, 2011	  	13.1869	  	7.6841	  	5.4597	  	4.3227	  	2.9220	  	1.8251	  	1.3383	  	1.0369	  	0.7407	  	0.4462
	February 15, 2012	  	13.1869	  	6.6284	  	3.9676	  	2.7740	  	1.6009	  	0.9714	  	0.7235	  	0.5653	  	0.4078	  	0.2503
	February 15, 2013	  	13.1869	  	6.0440	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000	  	0.0000

  

 Schedule A 

 EXHIBIT A 
 [FORM OF FACE OF SECURITY] 
 FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED, THIS SECURITY IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT AND THE ISSUE DATE OF THIS SECURITY IS FEBRUARY [ ], 2008. IN ADDITION, THIS SECURITY IS SUBJECT TO UNITED STATES FEDERAL INCOME TAX REGULATIONS GOVERNING CONTINGENT
PAYMENT DEBT INSTRUMENTS. FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE COMPARABLE YIELD OF THIS SECURITY IS 9.25%, COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE TREATED AS THE YIELD TO MATURITY FOR UNITED STATES FEDERAL
INCOME TAX PURPOSES). 
 THE COMPANY AGREES, AND BY ACCEPTANCE OF A CERTIFICATED SECURITY OR A BENEFICIAL OWNERSHIP INTEREST IN A GLOBAL SECURITY EACH HOLDER
AND EACH BENEFICIAL OWNER OF THE SECURITIES SHALL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES, (1) TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO TREASURY REGULATIONS SECTION 1.1275-4 (THE
“CONTINGENT PAYMENT DEBT REGULATIONS”) AND, FOR PURPOSES OF THE CONTINGENT PAYMENT DEBT REGULATIONS, TO TREAT (X) THE CASH AND THE FAIR MARKET VALUE OF ANY STOCK BENEFICIALLY RECEIVED UPON ANY CONVERSION OF THE SECURITIES AS A
CONTINGENT PAYMENT AND (Y) ANY ADDITIONAL INTEREST OR CONTINGENT INTEREST RECEIVED AS CONTINGENT PAYMENTS, (2) TO ACCRUE INTEREST WITH RESPECT TO THE SECURITIES AS ORIGINAL ISSUE DISCOUNT ON A CONSTANT YIELD BASIS, ACCORDING TO THE
“NONCONTINGENT BOND METHOD” SET FORTH IN TREASURY REGULATIONS SECTION 1.1275-4(B), USING THE COMPARABLE YIELD OF 9.25% PER ANNUM COMPOUNDED SEMI-ANNUALLY AND (3) IN THE ABSENCE OF AN ADMINISTRATIVE DETERMINATION OR JUDICIAL RULING TO
THE CONTRARY, TO BE BOUND BY THE COMPANY’S DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT PAYMENT DEBT REGULATIONS, WITH RESPECT TO THE SECURITIES. A HOLDER MAY
OBTAIN THE ISSUE PRICE, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE YIELD TO MATURITY, THE COMPARABLE YIELD AND THE PROJECTED PAYMENT SCHEDULE FOR THE SECURITIES BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO FLOTEK
INDUSTRIES, INC., 2930 WEST SAM HOUSTON PARKWAY NORTH, SUITE 300, HOUSTON, TX 77043, ATTENTION: CHIEF FINANCIAL OFFICER. 
 [Global Security
Legend, if applicable] 
  

 A-1 

					
	No. [    ]	 		  	 Principal Amount $[            ], as
 revised by the Schedule of Increases
 and Decreases
in Global Security
 attached hereto.

 CUSIP NO.: 343389 AA0 
 ISIN: US343389AA03 
 5.25% Convertible Senior Notes due 2028 
 Flotek Industries, Inc., a Delaware corporation, promises to pay to
[                    ], or registered assigns, the principal sum of
[                    ] Dollars, as revised by the Schedule of Increases and Decreases in Global Security attached hereto, on February 15,
2028. 
 Interest Payment
Dates:                February 15 and August 15 
 Regular Record Dates:                  February 1 and August 1 
 Additional provisions of this Security are set forth on the attached “Terms of Securities.” 
 Dated: [                    ] 
 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed. 
  

			
	 FLOTEK INDUSTRIES, INC.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Each of the Guarantors (which term includes any successor Person in such capacity under the
Indenture), has fully, unconditionally and absolutely guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the
Securities and all other amounts due and payable under the Indenture and the Securities by the Company. 
 The obligations of the Guarantors
to the Holders of Securities and to the Trustee pursuant to the Securities Guarantee and the Indenture are expressly set forth in Article 10 of the First Supplemental Indenture and Article Fourteen of the Original Indenture and reference is hereby
made to the Indenture for the precise terms of the Securities Guarantee. 
  

 A-2 

			
	CAVO DRILLING MOTORS, LTD. CO.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CESI CHEMICAL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	FLOTEK PAYMASTER, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	MATERIAL TRANSLOGISTICS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-3 

			
	PADKO INTERNATIONAL, INCORPORATED
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	PETROVALVE, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	SES HOLDINGS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	SOONER ENERGY SERVICES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	SPIDLE SALES & SERVICE, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-4 

			
	TELEDRIFT ACQUISITION, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	TRINITY TOOL, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	TURBECO, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	USA PETROVALVE, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	 AMERICAN STOCK TRANSFER & TRUST COMPANY
 as Trustee, certifies that this is one of the Securities referred to in the Indenture.

		
	By:	 	  

		 	Authorized Signatory

  

 A-5 

 TERMS OF SECURITIES 
 5.25% Convertible Senior Notes due 2028 
 The Company issued this Security under an Indenture dated
as of February 14, 2008 (the “Original Indenture”), among the Company, the guarantors party thereto and the Trustee, as supplemented by the First Supplemental Indenture dated as of February 14, 2008 (the “First
Supplemental Indenture”), among the Company, the guarantors party thereto and the Trustee, (the Original Indenture, as supplemented by the First Supplemental Indenture, the “Indenture”), to which 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. Additional Securities may be issued under the Indenture in an unlimited aggregate principal amount
subject to certain conditions specified in the Indenture. 
  

	 	1.	Interest 

 Flotek Industries, Inc., a Delaware corporation
(such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Security at the rate of 5.25% per annum
until (but excluding) February 15, 2028. 
 The Company will pay interest semiannually in arrears on February 15 and August 15
of each year (each, an “Interest Payment Date”), commencing August 15, 2008, to Holders of record on the immediately preceding February 1 and August 1. Interest on the Securities will accrue from the most recent date
to which interest has been paid on the Securities or, if no interest has been paid, from February 14, 2008. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  

	 	2.	Contingent Interest 

 Subject to the accrual and record
date provisions described above, the Company will pay Contingent Interest to the Holders of the Securities during any six-month period from an Interest Payment Date to, but excluding, the following Interest Payment Date, commencing with the
six-month period beginning on February 15, 2013, if the Trading Price of the Securities for each of the five Trading Days ending on the third Trading Day immediately preceding the first day of the relevant six-month period equals 120% or more
of the principal amount of the Securities. 
 The amount of Contingent Interest payable per each $1,000 principal amount of Securities with
respect to any six-month period will equal 0.50% per annum of the average Trading Price of the Securities for the five Trading Days referred to above. 
  

 A-6 

 Upon determination that Holders of the Securities will be entitled to receive Contingent Interest that
will become payable during a relevant six-month period, on or prior to the start of such six-month period, the Company will provide notice to the Trustee setting forth the amount of contingent interest per $1,000 principal amount of the Securities
and disseminate a press release through a public medium that is customary for such press releases. 
 The Company may cause to be withheld
from any payment hereunder any tax withholding required by law or regulations, including, in the case of any withholding obligation arising from income that does not give rise to any cash or property from which any applicable withholding tax could
be satisfied, set off against any subsequent payment of cash or property hereunder. 
 The Company may unilaterally increase the amount of
Contingent Interest it may pay or pay interest or other amounts it is obligated to pay, but the Company will have no obligation to do so. 
  

	 	3.	Method of Payment 

 By no later than 11:00 a.m. (New York
City time) on the date on which any principal of, interest (including Contingent Interest and Additional Interest, if any) or premium, if any, on any Security is due and payable, the Company shall deposit with the Paying Agent money sufficient to
pay such amount. The Company will pay principal, premium and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments in respect of Securities represented by a Global
Security (including principal, interest (including Contingent Interest and Additional Interest, if any) and premium, if any) will be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company. The
Company will pay principal of Definitive Securities at the office or agency designated by the Company for such purpose. Interest (including Contingent Interest and Additional Interest, if any), on Definitive Securities will be payable (i) to
Holders having an aggregate principal amount of $5,000,000 or less, by check mailed to the Holders of these Securities and (ii) to Holders having an aggregate principal amount of more than $5,000,000, either by check mailed to each Holder or,
upon application by a Holder to the Registrar not later than the relevant 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 Registrar to the contrary. 
  

	 	4.	Redemption 

 Subject to certain conditions specified in the
Indenture, the Securities will be redeemable, at the option of the Company, in whole at any time or in part from time to time, at any time on or after February 15, 2013 and at a price equal to 100% of the principal amount of Securities to be
redeemed, plus accrued and unpaid interest 

  

 A-7 

 
(including Contingent Interest and Additional Interest, if any) to but excluding the Redemption Date (unless the Redemption Date is between a Regular Record
Date and the Interest Payment Date to which it relates, in which case the Company will pay accrued and unpaid interest to the Holder of record on such Regular Record Date). 
  

	 	5.	Sinking Fund 

 The Securities are not subject to any
sinking fund. 
  

	 	6.	Purchase by the Company at the Option of the Holder; Purchase at the Option of the Holder Upon a Fundamental Change 

 (a) Subject to the terms and conditions of the Indenture, a Holder shall have the option to require the Company to purchase all or a portion of its
Securities held by such Holder on each of February 15, 2013, February 15, 2018 and February 15, 2023 at a Purchase Price specified in the Indenture. 
 (b) If a Fundamental Change shall occur at any time, each Holder shall have the right, at such Holder’s option and subject to the terms and conditions of the Indenture, to require the Company to purchase all or a
portion of its Securities at a Fundamental Change Purchase Price specified in the Indenture. 
  

	 	7.	Conversion 

 Subject to the procedures for conversion set
forth in the Indenture, a Holder may convert its Securities on or prior to January 15, 2028 only when one or more of the conditions specified in the Indenture are met and during the related specified period. On or after January 15, 2028, a
Holder may convert its Securities until the close of business on the second Business Day immediately preceding Stated Maturity regardless of such conditions specified in the Indenture. 
 The initial Conversion Rate is 43.9560 shares of Common Stock per $1,000 principal amount of Securities, subject to adjustment in certain events
described in the Indenture. Upon conversion, the Company will either (i) deliver shares of Common Stock based on the Conversion Rate or (ii) pay cash and shares of Common Stock, if any, as set forth in the Indenture. The Company shall
deliver cash in lieu of any fractional share of Common Stock. 
 A Holder may convert a portion of the Securities only if the principal
amount of such portion is $1,000 or a multiple of $1,000. No payment or adjustment shall be made for dividends on the Common Stock except as provided in the Indenture. 
  

 A-8 

	 	8.	Denominations; Transfer; Exchange 

 The Securities are in
registered form without coupons in denominations of principal amount of $1,000 and multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange of Securities (i) so selected for redemption or, if a
portion of any Security is selected for redemption, the portion thereof selected for redemption; (ii) surrendered for conversion or, if a portion of any Security is surrendered for conversion, the portion thereof surrendered for conversion; or
(iii) in certificated form for a period of 15 days prior to mailing a notice of redemption under Article 4 of the First Supplemental Indenture and Article 11 of the Original Indenture. 
  

	 	9.	Persons Deemed Owners 

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

	 	10.	Unclaimed Money 

 If money for the payment of principal,
premium, if any, or interest (including Contingent Interest and Additional Interest, if any) remains unclaimed for one year, the Trustee or Paying Agent shall pay the money back to the Company, subject to applicable abandoned property laws. After
any such payment, Holders entitled to the money must look only to the Company and not to the Trustee for payment. 
  

	 	11.	Amendment, Waiver 

 Subject to certain exceptions, the
Indenture contains provisions permitting an amendment of the Indenture or the Securities with the written consent of the Holders of at least a majority in principal amount of the then outstanding Securities and the waiver of any Event of Default
(other than with respect to nonpayment or in respect of a provision that cannot be amended without the written consent of each Holder affected) or noncompliance with any provision with the written consent of the Holders of a majority in principal
amount of the then outstanding Securities. 
 In addition, the Indenture permits an amendment of the Indenture or the Securities without the
consent of any Holder under certain circumstances specified in the Indenture. 
  

	 	12.	Defaults and Remedies 

 Subject to the following paragraph,
if an Event of Default specified in the Indenture occurs and is continuing, the Trustee or the Holders of at least 25% in 

  

 A-9 

 
principal amount of the Securities may declare all the Securities by notice to the Company to be due and payable immediately. In addition, certain specified
Events of Default will cause the Securities to become immediately due and payable without further action by the Holders. 
 The sole remedy
for an Event of Default relating to the Company’s failure to comply with the reporting obligations under Section 11.01 of the First Supplemental Indenture and Section 7.4 of the Original Indenture, and for any failure to comply with
the requirements of Section 314(a)(1) of the Trust Indenture Act, will for the 365 days after the occurrence of such an Event of Default consist exclusively of the right to receive Additional Interest on the principal amount of the Securities
at a rate equal to 0.25% per annum. 
 Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of
any trust or power. The Trustee may withhold from Holders notice of any continuing Default or Event of Default (except a Default or Event of Default in payment of principal, interest (including Contingent Interest and Additional Interest, if any) or
premium, if any) if it determines that withholding notice is in their interest. 
  

	 	13.	Trustee Dealings with the Company 

 Subject to certain
limitations set forth in the Indenture, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its
Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
  

	 	14.	No Recourse Against Others 

 An incorporator, director,
officer, employee, partner, sponsor or stockholder of the Company or any Guarantor, solely by reason of this status, shall not have any liability for any obligations of the Company or such Guarantor under the Securities, the Indenture or for any
claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Holder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities.

  

	 	15.	Authentication 

 This Security shall not be valid until an
authorized signatory of the Trustee manually authenticates this Security. 
  

 A-10 

	 	16.	Abbreviations 

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

  

	 	17.	CUSIP Numbers 

 Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption, and reliance may be placed only on the other identification numbers placed thereon. 
  

	 	18.	Governing Law 

 This Security and the Indenture shall be
governed by, and construed in accordance with, the laws of the State of New York. 
 The Company will furnish to any Holder upon written
request and without charge to the Holder a copy of the Indenture which has in it the text of this Security. Requests may be made to: 
 Flotek
Industries, Inc. 
 2930 West Sam Houston Parkway North, Suite 300 
 Houston, TX 77043 
 Attention: Chief Financial
Officer 
 Facsimile: (713) 466-8386 
  

 A-11 

 ASSIGNMENT FORM 
 To assign this Security, fill in the form below: 
 I or we assign and transfer this Security to 
  
  
 (Print or type assignee’s name, address and zip code) 
  
  
 (Insert assignee’s soc. sec.
or tax I.D. No.) 
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 

 

							
	 Date:
	 	  
	    	Your Signature:	 	  

  

			
	 Signature Guarantee:
	  	  

		  	(Signature must be guaranteed)

  
  
 Sign exactly as your name appears on the other side of this Security. 
 The
signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program, pursuant to S.E.C. Rule 17Ad-15.

  

	
	  

	Signature:

 Signature Guarantee: 
  

					
	  
	 		  	  

	(Signature must be guaranteed)	 		  	Signature:

 The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan
associations and credit unions) with membership in an approved signature guarantee medallion program, pursuant to S.E.C. Rule 17Ad-15. 

 [TO BE ATTACHED TO GLOBAL SECURITIES] 
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
 The following increases or
decreases in this Global Security have been made: 
  

									
	 Date
	 	 Amount of decrease
in Principal Amount

 of this Global
 Security
	 	 Amount of increase
in Principal Amount

 of this Global
 Security
	 	 Principal Amount of
 this Global Security
 following
such
 decrease or increase
	 	 Signature of
authorized signatory
 of Trustee or
Securities Custodian

 FORM OF CONVERSION NOTICE 
  

	To:	Flotek Industries, Inc. 

 The undersigned registered Holder
of this Security hereby exercises the option to convert this Security, or portion hereof (which is $1,000 principal amount or a multiple thereof) designated below in accordance with the terms of the Indenture referred to in this Security, and
directs that cash, and the shares of Common Stock of Flotek Industries, Inc., if any, issuable and deliverable upon such conversion, and any Securities representing any unconverted principal amount hereof, be issued and delivered to the registered
Holder hereof unless a different name has been indicated below. If cash, shares or any portion of this Security not converted are to be issued in the name of a Person other than the undersigned, the undersigned shall pay all transfer taxes payable
with respect thereto. 
 This notice shall be deemed to be an irrevocable exercise of the option to convert this Security. 
  

					
	Dated:	 		 	  

		 		 	  

		 		 	Signature(s)
			
		 		 	The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions) with membership in an approved signature
guarantee medallion program, pursuant to S.E.C. Rule 17Ad-15.
			
		 		 	  

		 		 	Signature Guarantee
	Fill in for registration of shares if to be delivered, and Securities if to be issued other than to and in the name of registered holder:	 		 	
			
	  
	 		 	
	(Name)	 		 	Principal amount to be converted (if less than all):
$                    ,000
	  
	 		 	
	(Street Address)	 		 	
			
	  
	 		 	  

	(City state and zip code)	 		 	Social Security or Other Taxpayer Number
	Please print name and address	 		 	

 FORM OF FUNDAMENTAL CHANGE PURCHASE NOTICE 
  

	To:	Flotek Industries, Inc. 

 The undersigned registered Holder
of this Security hereby acknowledges receipt of a notice from Flotek Industries, Inc. (the “Company”) as to the occurrence of a Fundamental Change with respect to the Company and requests and instructs the Company to repurchase this
Security, or the portion hereof (which is $1,000 principal amount or a multiple thereof) designated below, in accordance with the terms of the Indenture referred to in this Security and directs that the check in payment for this Security or the
portion thereof and any Securities representing any unrepurchased principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated below. If any portion of this Security not repurchased is
to be issued in the name of a Person other than the undersigned, the undersigned shall pay all transfer taxes payable with respect thereto. 
  

					
	Dated:	 		 	  

		 		 	  

		 		 	Signature(s)
			
		 		 	The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions) with membership in an approved signature
guarantee medallion program, pursuant to S.E.C. Rule 17Ad-15.
			
		 		 	  

		 		 	Signature Guarantee
	
	Fill in if a check is to be issued, or Securities are to be issued, other than to and in the name of registered Holder:
			
	  
	 		 	
	(Name)	 		 	 Principal amount to be purchased
 (if less than all):
$                    ,000

	  
	 		 	
	(Street Address)	 		 	
			
	  
	 		 	  

	(City state and zip code)	 		 	Social Security or Other Taxpayer Number
	Please print name and address	 		 	

 FORM OF PURCHASE NOTICE 
  

	To:	Flotek Industries, Inc. 

 The undersigned registered Holder
of this Security hereby acknowledges receipt of a notice from Flotek Industries, Inc. (the “Company”) as to the Holder’s option to require the Company to repurchase this Security and requests and instructs the Company to
repurchase this Security, or the portion hereof (which is $1,000 principal amount or a multiple thereof) designated below, in accordance with the terms of the Indenture referred to in this Security and directs that the check in payment for this
Security or the portion thereof and any Securities representing any unrepurchased principal amount hereof, be issued and delivered to the registered Holder hereof unless a different name has been indicated below. If any portion of this Security not
repurchased is to be issued in the name of a Person other than the undersigned, the undersigned shall pay all transfer taxes payable with respect thereto. 
  

					
	Dated:	 		 	  

		 		 	  

		 		 	Signature(s)
			
		 		 	The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers, savings and loan associations and credit unions) with membership in an approved signature
guarantee medallion program, pursuant to S.E.C. Rule 17Ad-15.
			
		 		 	  

		 		 	Signature Guarantee
	
	Fill in if a check is to be issued, or Securities are to be issued, other than to and in the name of registered Holder:
			
	  
	 		 	
	(Name)	 		 	 Principal amount to be purchased
 (if less than all): $                    ,000

			
	  
	 		 	
	(Street Address)	 		 	
			
	  
	 		 	  

	(City state and zip code)	 		 	Social Security or Other Taxpayer Number
	Please print name and address

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