Document:

exv4w1

 

Exhibit 4.1

 

AMERIGROUP CORPORATION

ISSUER

 

THE BANK OF NEW YORK

TRUSTEE

 

INDENTURE

Dated as of March 28, 2007

 

2.00 % CONVERTIBLE SENIOR NOTES DUE 2012

 

 

 

AMERIGROUP CORPORATION

Certain Sections of this Indenture relating to Sections 310 through 318

of the Trust Indenture Act of 1939:

	 	 	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§ 310
	 	(a)(1)	 	6.09
	 
	 	(a)(2)	 	6.09
	 
	 	(a)(3)	 	Not Applicable
	 
	 	(a)(4)	 	Not Applicable
	 
	 	(b)	 	6.08
	 
	 	 	 	6.10
	§ 311
	 	(a)	 	6.13
	 
	 	(b)	 	6.13
	§ 312
	 	(a)	 	9.01
	 
	 	 	 	9.02(a)
	 
	 	(b)	 	9.02(b)
	 
	 	(c)	 	9.02(c)
	§ 313
	 	(a)	 	9.03(a)
	 
	 	(a)(4)	 	1.01
	 
	 	 	 	10.04
	 
	 	(b)	 	9.03(a)
	 
	 	(c)	 	9.03(a)
	 
	 	(d)	 	9.03(a)
	§ 314
	 	(a)	 	9.04
	 
	 	(b)	 	Not Applicable
	 
	 	(c)(1)	 	1.05
	 
	 	(c)(2)	 	1.05
	 
	 	(c)(3)	 	Not Applicable
	 
	 	(d)	 	Not Applicable
	 
	 	(e)	 	1.05
	§ 315
	 	(a)	 	6.01
	 
	 	(b)	 	6.02
	 
	 	(c)	 	6.01
	 
	 	(d)	 	6.01
	 
	 	(e)	 	5.15
	§ 316
	 	(a)	 	1.01
	 
	 	(a)(1)(A)	 	5.02
	 
	 	 	 	5.06
	 
	 	(a)(1)(B)	 	5.04
	 
	 	(a)(2)	 	Not Applicable
	 
	 	(b)	 	5.03
	 
	 	(c)	 	1.02
	§ 317
	 	(a)(1)	 	5.07
	 
	 	(a)(2)	 	5.08
	 
	 	(b)	 	10.05
	§ 318
	 	(a)	 	1.08

 

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	ARTICLE 1
	 	 	 	 
	 
	 	Definitions and Other Provisions of General Application	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.01
	 	Definitions	 	 	1	 
	SECTION 1.02
	 	Acts of Holders of Notes	 	 	15	 
	SECTION 1.03
	 	Notices, Etc. To The Trustee And Company	 	 	16	 
	SECTION 1.04
	 	Effect of Headings and Table of Contents	 	 	16	 
	SECTION 1.05
	 	Compliance Certificates and Opinions	 	 	16	 
	SECTION 1.06
	 	Form of Documents Delivered to Trustee	 	 	17	 
	SECTION 1.07
	 	Notice to Holders; Waiver	 	 	17	 
	SECTION 1.08
	 	Conflict With Trust Indenture Act	 	 	18	 
	SECTION 1.09
	 	Successors and Assigns	 	 	18	 
	SECTION 1.10
	 	Separability Clause	 	 	18	 
	SECTION 1.11
	 	Benefits of Indenture	 	 	18	 
	SECTION 1.12
	 	Governing Law	 	 	18	 
	SECTION 1.13
	 	Legal Holidays	 	 	19	 
	SECTION 1.14
	 	Force Majeure	 	 	19	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 2
	 	 	 	 
	 
	 	Note Forms	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.01
	 	Form Generally	 	 	19	 
	SECTION 2.02
	 	Form of Note	 	 	20	 
	SECTION 2.03
	 	Form of Notice of Conversion	 	 	31	 
	SECTION 2.04
	 	Form of Assignment	 	 	32	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 3
	 	 	 	 
	 
	 	The Notes	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.01
	 	Title And Terms	 	 	33	 
	SECTION 3.02
	 	Denominations	 	 	33	 
	SECTION 3.03
	 	Execution, Authentication, Delivery and Dating	 	 	34	 
	SECTION 3.04
	 	Global Notes; Non-Global Notes; Book-entry Provisions	 	 	34	 
	SECTION 3.05
	 	Persons Deemed Owners	 	 	36	 
	SECTION 3.06
	 	Mutilated, Destroyed, Lost and Stolen Notes	 	 	36	 
	SECTION 3.07
	 	Payment of Interest; Interest Rights Preserved	 	 	37	 
	SECTION 3.08
	 	Cancellation	 	 	38	 
	SECTION 3.09
	 	Computation of Interest	 	 	39	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 4
	 	 	 	 
	 
	 	Discharge	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.01
	 	Discharge of Liability on Notes	 	 	39	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 4.02
	 	Reinstatement	 	 	40	 
	SECTION 4.03
	 	Officer’s Certificate; Opinion of Counsel	 	 	40	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 5
	 	 	 	 
	 
	 	Remedies	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.01
	 	Events of Default	 	 	40	 
	SECTION 5.02
	 	Acceleration of Maturity; Rescission and Annulment	 	 	42	 
	SECTION 5.03
	 	Unconditional Right of Holders to
Receive Principal and Interest and to Convert	 	 	43	 
	 
	 	 	 	 	 	 
	SECTION 5.04
	 	Waiver of Past Defaults	 	 	44	 
	SECTION 5.05
	 	Waiver of Stay, Usury or Extension Laws	 	 	44	 
	SECTION 5.06
	 	Control by Holders	 	 	44	 
	SECTION 5.07
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	45	 
	SECTION 5.08
	 	Trustee May File Proofs of Claim	 	 	45	 
	SECTION 5.09
	 	Trustee May Enforce Claims Without Possession of Notes	 	 	46	 
	SECTION 5.10
	 	Application of Money Collected	 	 	46	 
	SECTION 5.11
	 	Limitation on Suits	 	 	46	 
	SECTION 5.12
	 	Restoration of Rights and Remedies	 	 	47	 
	SECTION 5.13
	 	Rights and Remedies Cumulative	 	 	47	 
	SECTION 5.14
	 	Delay or Omission Not Waiver	 	 	48	 
	SECTION 5.15
	 	Undertaking for Costs	 	 	48	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 6
	 	 	 	 
	 
	 	The Trustee	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.01
	 	Certain Duties and Responsibilities	 	 	48	 
	SECTION 6.02
	 	Notice of Defaults	 	 	49	 
	SECTION 6.03
	 	Certain Rights of Trustee	 	 	49	 
	SECTION 6.04
	 	Not Responsible for Recitals or Issuance of Notes	 	 	51	 
	SECTION 6.05
	 	May Hold Notes	 	 	51	 
	SECTION 6.06
	 	Money Held In Trust	 	 	52	 
	SECTION 6.07
	 	Compensation and Reimbursement	 	 	52	 
	SECTION 6.08
	 	Conflicting Interests	 	 	53	 
	SECTION 6.09
	 	Corporate Trustee Required; Eligibility	 	 	53	 
	SECTION 6.10
	 	Resignation and Removal; Appointment Of Successor	 	 	53	 
	SECTION 6.11
	 	Acceptance of Appointment by Successor	 	 	54	 
	SECTION 6.12
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	55	 
	SECTION 6.13
	 	Preferential Collection of Claims Against Company	 	 	55	 
	SECTION 6.14
	 	Appointment of Authenticating Agent	 	 	55	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 7
	 	 	 	 
	 
	 	Consolidation, Merger, Conveyance, Transfer or Lease	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.01
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	58	 
	SECTION 7.02
	 	Successor Substituted	 	 	58	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	ARTICLE 8
	 	 	 	 
	 
	 	Supplemental Indentures	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 8.01
	 	Supplemental Indentures Without Consent of Holders of Notes	 	 	59	 
	SECTION 8.02
	 	Supplemental Indentures With Consent of Holders of Notes	 	 	60	 
	SECTION 8.03
	 	Notice of Supplemental Indentures	 	 	61	 
	SECTION 8.04
	 	Effect of Supplemental Indentures	 	 	61	 
	SECTION 8.05
	 	Conformity with Trust Indenture Act	 	 	61	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 9
	 	 	 	 
	 
	 	Holders Lists and by Trustee and Company	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.01
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	61	 
	SECTION 9.02
	 	Preservation of Information	 	 	62	 
	SECTION 9.03
	 	Communication to Holders	 	 	62	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 10
	 	 	 	 
	 
	 	Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 10.01
	 	Payment of Principal and Interest	 	 	63	 
	SECTION 10.02
	 	Maintenance of Offices or Agencies	 	 	63	 
	SECTION 10.03
	 	Existence	 	 	64	 
	SECTION 10.04
	 	Statement by Officers as to Default	 	 	64	 
	SECTION 10.05
	 	Money for Note Payments to Be Held in Trust	 	 	64	 
	SECTION 10.06
	 	Reports by Company	 	 	65	 
	SECTION 10.07
	 	Delivery of Certain Information	 	 	66	 
	SECTION 10.08
	 	Registration Rights	 	 	66	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 11
	 	 	 	 
	 
	 	Repurchase of Notes	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 11.01
	 	Right to Require Repurchase Upon a Designated Event	 	 	67	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE 12
	 	 	 	 
	 
	 	Conversion of Notes	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 12.01
	 	Conversion Privilege and Conversion Rate	 	 	71	 
	SECTION 12.02
	 	Exercise of Conversion Privilege	 	 	75	 
	SECTION 12.03
	 	Restrictions on Conversion Rights	 	 	79	 
	SECTION 12.04
	 	Fractions of Shares	 	 	80	 
	SECTION 12.05
	 	Adjustment of Conversion Rate	 	 	81	 
	SECTION 12.06
	 	Notice of Adjustments of Conversion Rate	 	 	90	 
	SECTION 12.07
	 	Company to Reserve Common Stock	 	 	91	 
	SECTION 12.08
	 	Taxes on Conversions	 	 	91	 
	SECTION 12.09
	 	Certain Covenants	 	 	91	 
	SECTION 12.10
	 	Cancellation of Converted Notes	 	 	92	 
	SECTION 12.11
	 	Company Responsible for Making Calculations	 	 	92	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 12.12
	 	Provision in Case of Effect of
Reclassification, Consolidation, Merger or Sale	 	 	92	 
	 
	 	 	 	 	 	 
	SECTION 12.13
	 	Responsibility of Trustee for Conversion Provisions	 	 	94	 

iv

 

     INDENTURE, dated as of March 28, 2007 (the “Indenture”), between AMERIGROUP CORPORATION, a
corporation duly organized and existing under the laws of the State of Delaware, having its
principal office at 4425 Corporation Lane, Virginia Beach, Virginia 23462 (herein called the
“Company”), and THE BANK OF NEW YORK, as Trustee hereunder (herein called the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the creation of an issue of its 2.00% Convertible Senior Notes
due 2012 (herein called the “Notes”) of substantially the tenor and amount hereinafter set forth,
and to provide therefor the Company has duly authorized the execution and delivery of this
Indenture.

     All things necessary to make the Notes, when the Notes are executed by the Company and
authenticated and delivered hereunder, the valid obligations of the Company, and to make this
Indenture a valid agreement of the Company, in accordance with their and its terms, have been done.
Further, all things necessary to duly authorize the issuance of the Common Stock of the Company
issuable upon the conversion of the Notes, and to duly reserve for issuance the number of shares of
Common Stock issuable upon such conversion, have been done.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE 1

Definitions and Other Provisions of General Application

     SECTION 1.01 Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (a) capitalized terms used but not defined herein shall have the respective meanings assigned
to them in the Trust Indenture Act;

     (b) the terms defined in this Article 1 have the meanings assigned to them in this Article 1
and include the plural as well as the singular;

     (c) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States, and, except as
otherwise herein expressly provided, the term “generally accepted accounting principles” with
respect to any

1

 

computation required or permitted hereunder shall mean such accounting principles as are
generally accepted at the date of such computation; and

     (d) all other terms used in this Indenture, which are defined in the Trust Indenture Act or
which 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 the Trust Indenture Act and in the Securities Act as in force at the date of the execution of
this Indenture. 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.

     “Act” when used with respect to any Holder of a Note, has the meaning specified in Section
1.02.

     “Accounting Event” means any change in accounting rules or interpretations thereof occurring
after March 22, 2007 that results in a change to the way the Company is required to account for the
Notes under generally accepted accounting principles, including (1) a change to the methodology
used for reflecting the existence of the Notes in diluted earnings per share of the Company or (2)
a requirement that the Company separate (or bifurcate) the Notes into either (a) debt and equity
components or (b) debt and derivative components.

     “Additional Interest” has the meaning specified in Section 12.03(a).

     “Additional Notes” means an unlimited amount of Notes (other than the Initial Notes) issued
under this Indenture in accordance with Section 3.04, as part of the same series as the Initial
Notes.

     “Additional Shares” has the meaning specified in Section 12.01.

     “Adjustment Determination Date” has the meaning specified in Section 12.05.

     “Adjustment Event” has the meaning specified in Section 12.05.

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

     “Agent Member” means any member of, or participant in, the Depositary.

     “American Depositary Receipts” means negotiable United States securities that represent a
non-United States company’s publicly traded equity.

 

 

     “Applicable Procedures” means, with respect to any transfer or transaction involving a Global
Note or beneficial interest therein, the rules and procedures of DTC or any successor Depository,
in each case to the extent applicable to such transaction and as in effect from time to time.

     “Applicable State Laws” has the meaning specified in Section 12.03(b).

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.14 to
act on behalf of the Trustee to authenticate Notes.

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

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

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by law, regulation or
executive order to remain closed.

     “Capital Stock” means, for any entity, any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
stock issued by that entity.

     “Cash Percentage” has the meaning specified in Section 12.02(a)(2).

     “Code” means the Internal Revenue Code of 1986 as in effect on the date hereof.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, 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.

     “Common Stock” means the Common Stock, par value $0.01 per share, of the Company authorized at
the date of this instrument as originally executed or as such stock may be constituted from time to
time. Subject to the provisions of Section 12.11, shares issuable upon conversion of Notes shall
include only shares of Common Stock or shares of any class or classes of common stock resulting
from any reclassification or reclassifications thereof; provided, however, that if at any time
there shall be more than one such resulting class, the shares so issuable on conversion of Notes
shall include shares of all such classes, and 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.

     “common stock” includes any stock of any class of Capital Stock which has 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 issuer thereof and which is not subject to redemption
by the issuer thereof.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief
Financial Officer, Treasurer or a Vice President.

     “Continuing Directors” means (i) individuals who on the Issue Date constituted the Board of
Directors and (ii) any new directors whose election to the Board of Directors or whose nomination
for election by the stockholders of the Company was approved by at least a majority of the
directors then still in office either who were directors on the Issue Date or whose election or
nomination for election was previously so approved.

     “Conversion Agent” means any Person authorized by the Company to convert Notes in accordance
with Article 12. The Company has initially appointed the Trustee as its Conversion Agent pursuant
to Section 10.02.

     “Conversion Date” has the meaning specified in Section 12.02.

     “Conversion Obligation” means the obligation of the Company to deliver pursuant hereto, the
consideration due under Article 12 upon a conversion of the Notes in accordance herewith.

     “Conversion Price” means at any time the amount equal to $1,000 divided by the then current
Conversion Rate.

     “Conversion Rate” has the meaning specified in Section 12.01.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be principally administered, (which at the date of this
Indenture is located at 101 Barclay Street, 8W, New York, NY 10286, Attention: Corporate Trust
Division – Corporate Finance Unit), or such other address as the Trustee may designate from time to
time by notice to the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may designate from time to time
by notice to the Holders and the Company).

 

 

     “corporation” means a corporation, company, association, joint-stock company or business
trust.

     “Daily Cash Amount” has the meaning specified in the definition of Daily Settlement Amount.

     “Daily Conversion Value” means, for each of the 20 consecutive VWAP Trading Days during the
Observation Period, one-twentieth (1/20) of the product of (a) the applicable Conversion Rate and
(b) the Daily VWAP of the Common Stock (or the Reference Property pursuant to Section 12.11) on
such VWAP Trading Day, as determined by the Company. Any such determination by the Company shall
be conclusive absent manifest error.

     “Daily Settlement Amount” means, for each of the 20 VWAP Trading Days during the Observation
Period,

     (i) an amount of cash equal to the lesser of (x) $50 and (y) the Daily Conversion
Value relating to such VWAP Trading Day (the “Daily Cash Amount”); and

     (ii) if such Daily Conversion Value exceeds $50, either (i) a number of shares (the
“Deliverable Shares”) of Common Stock equal to (A) the difference between such Daily
Conversion Value and $50, divided by (B) the Daily VWAP of the Common Stock for such VWAP
Trading Day, subject to adjustment pursuant to Section 12.05(m), (ii) an amount of cash
equal to the difference between such Daily Conversion Value and $50, or (iii) any
combination elected by the Company of shares of Common Stock and cash in an amount equal
to such excess of such Daily Conversion Value over $50.

     “Daily VWAP” means for each of the 20 consecutive VWAP Trading Days during the Observation
Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP”
on Bloomberg page AGP.N<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 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 as determined by a nationally recognized independent investment
banking firm retained for this purpose by the Company).

     “Default” means any event which is, or after notice or lapse of time or both would become, an
Event of Default pursuant to Section 5.01.

     “Defaulted Interest” has the meaning specified in Section 3.07.

     “Depositary” means, with respect to Notes issuable in whole or in part in the form of one or
more Global Notes, a clearing agency registered under the

 

 

Exchange Act that is designated to act as Depositary for such Notes as contemplated by Section
3.04.

     “Designated Event” has the meaning specified in Section 11.01(a).

     “Designated Event Repurchase Date” has the meaning specified in Section 11.01.

     “Designated Event Repurchase Notice” has the meaning specified in Section 11.01.

     “Designated Event Repurchase Price” has the meaning specified in Section 11.01.

     “Designated Event Repurchase Right Notice” has the meaning specified in Section 11.01.

     “Distributed Property” has the meaning specified in Section 12.05.

     “Dollar,” “U.S. $” or “$” means a dollar or other equivalent unit in such coin or currency of
the United States as at the time shall be legal tender for the payment of public and private debts.

     “DTC” means The Depository Trust Company, a New York corporation, or any successor.

     “Effective Date” has the meaning specified in Section 12.01.

     “Event of Default” has the meaning specified in Section 5.01.

     “Ex- Date” means, with respect to any issuance or distribution on the Common Stock or any
other equity security, the first date on which the shares of Common Stock or such other equity
security trade on the relevant exchange or in the relevant market, regular way, without the right
to receive such issuance or distribution.

     “Exchange Act” means the Securities Exchange Act of 1934 and any statute successor thereto, in
each case as amended from time to time.

     “Exempt Parent Merger” has the meaning specified in clause (1) of the definition of
Fundamental Change.

     “Extension Fee” has the meaning specified in Section 5.02.

     “Extension Right” has the meaning specified in Section 5.02.

     “Full Share Election Effective Date” has the meaning specified in Section 12.02(a).

 

 

     “Full Share Settlement Election” has the meaning specified in Section 12.02(a).

     “Fundamental Change” will be deemed to have occurred at the time after the Notes are
originally issued that any of the following occurs:

     (1) any Person acquires beneficial ownership, directly or indirectly, through a
purchase, merger or other transaction or series of transactions, of shares of the
Company’s Capital Stock entitling the Person to exercise 50% or more of the total voting
power of all shares of the Company’s Capital Stock entitled to vote generally in elections
of directors, other than an acquisition by the Company, any of the Company’s Subsidiaries
or any of the Company’s employee benefit plans; provided that this clause (1) shall not
apply to a merger of the Company with or into a wholly-owned subsidiary of a corporation
that, immediately following the transaction or series of transactions, has a class of
common stock or American Depositary Receipts in respect of common stock traded on a U.S.
national securities exchange or quoted on another established automated over-the-counter
trading market in the United States if immediately following the transaction or series of
transactions (a) the consideration received by holders of the Company’s Common Stock
immediately prior to the transaction entitles such holders to exercise, directly or
indirectly, 50% or more of the total voting power of all shares of Capital Stock entitled
to vote generally in elections of directors of such parent corporation and (b) such parent
corporation fully and unconditionally guarantees all obligations of such continuing and
surviving corporation under the Notes and this Indenture on a senior basis on terms and
pursuant to a supplemental indenture reasonably satisfactory to the Trustee (any such
transaction that meets the requirements of this proviso being an “Exempt Parent Merger”)
(for purposes of this clause (1), whether a Person is a “beneficial owner” shall be
determined in accordance with Rule 13d-3 under the Exchange Act); or

     (2) the Company (i) merges or consolidates with or into any other Person (other than
a Subsidiary), another Person merges with or into the Company, or the Company conveys,
sells, transfers or leases all or substantially all of the Company’s assets to another
Person or (ii) engages in any recapitalization, reclassification, binding share exchange
or other transaction in which all or substantially all of the Company’s Common Stock is
exchanged for or converted into cash, securities or other property, in each case, other
than an Exempt Parent Merger and any other merger or consolidation:

     (a) that does not result in a reclassification, conversion, exchange or
cancellation of the Company’s outstanding Common Stock; or

 

 

     (b) pursuant to which the consideration received by holders of the Company’s
Common Stock immediately prior to the transaction entitles such holders,
directly or indirectly, 50% or more of the voting power of all shares of Capital
Stock entitled to vote generally in the election of directors of the continuing
or surviving corporation immediately after such transaction; or

     (c) which is effected solely to change the Company’s jurisdiction of
incorporation and results in a reclassification, conversion or exchange of
outstanding shares of the Company’s Common Stock solely into shares of common
stock of the surviving entity; or

     (3) at any time the Continuing Directors do not constitute a majority of the
Company’s Board of Directors (or, if applicable, a successor Person to the Company); or

     (4) the Company is liquidated or dissolved or holders of the Company’s Common Stock
approve any plan or proposal for the Company’s liquidation or dissolution.

     “Global Note” means a Note that is registered in the Register in the name of a Depositary or a
nominee thereof.

     “Holder” means the Person in whose name the Note is registered in the Register.

     “Indebtedness” means any and all obligations of a Person for money borrowed which, in
accordance with U.S. generally accepted accounting principles, would be reflected on the balance
sheet of such Person as a liability on the date as of which Indebtedness is to be determined.

     “Indenture” has the meaning specified in the first paragraph of this instrument.

     “Initial Notes” means the first $240,000,000 aggregate principal amount of the Notes issued
under this Indenture on the date hereof. The Initial Notes and the Additional Notes shall be
treated as a single class for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any Additional Notes.

     “Initial Purchasers” means Goldman, Sachs & Co. and Wachovia Capital Markets, LLC.

     “Interest Payment Date” means May 15 and November 15 of each year beginning May 15, 2007.

     “Issue Date” means March 28, 2007.

 

 

     “Last Reported Sale Price” means, with respect to the Common Stock or any other security for
which a Last Reported Sale Price must be determined, on any date, the closing sale price per share
of the Common Stock or unit of such other security (or, if no closing sale price is reported, the
average of the last bid and last ask prices or, if more than one in either case, the average of the
average last bid and the average last ask prices) on such date as reported in composite
transactions for the principal United States national or regional securities exchange on which it
is then traded, if any. If the Common Stock or such other security is not listed for trading on a
United States national or regional securities exchange on the relevant date, the Last Reported Sale
Price shall be the average of the last quoted bid and ask prices per share of Common Stock or such
other security in the over-the-counter market on the relevant date, as reported by the National
Quotation Bureau or similar organization. In absence of such quotation, the Last Reported Sale
Price shall be the average of the mid-point of the last bid and ask prices for the Common Stock or
such other security on the relevant date from each of at least three nationally recognized
independent investment banking firms, which may include any or all of the Initial Purchasers,
selected from time to time by the Company for that purpose. The Last Reported Sale Price shall be
determined without reference to extended or after hours trading. Any such determination shall be
made by the Company and shall be conclusive absent manifest error.

     “Market Disruption Event” means the occurrence or existence on any Scheduled Trading Day for
the Common Stock 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, and such suspension or
limitation occurs or exists at any time within the 30 minutes prior to the closing time of the
relevant exchange on such day.

     “Maturity,” when used with respect to any Notes, means the date on which the principal of such
Notes becomes due and payable as therein or herein provided, whether on the Maturity Date or by
declaration of acceleration, exercise of the repurchase right set forth in Article 11 or otherwise.

     “Maturity Date,” means, with respect to the Notes, May 15, 2012.

     “Measurement Period” has the meaning specified in Section 12.01.

     “Merger Event” has the meaning specified in Section 12.11.

     “New Credit Facility” means, collectively, the senior secured credit facilities extended to
the Company pursuant to the Credit and Guaranty Agreement, dated as of March 26, 2007, among the
Company, certain subsidiaries of the Company, various Lenders, Wachovia Capital Markets, LLC, as
joint lead arranger and joint bookrunner, Goldman Sachs Credit Partners L.P., as joint lead
arranger, joint bookrunner and syndication agent, and Wachovia Bank, National

 

 

Association, as administrative agent and collateral agent, as such agreement may be amended,
restated, replaced or refinanced from time to time in accordance with its terms

     “Notes” has the meaning ascribed to it in the first paragraph under the caption “Recitals of
the Company.” Unless the context otherwise requires, all references to the Notes shall include the
Initial Notes and any Additional Notes.

     “Notice of Conversion” has the meaning specified in Section 12.02.

     “Observation Period” means, with respect to any Notes:

     (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); and

     (ii) 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 Notes.

     “Offering Circular ” means the final offering circular dated March 22, 2007 used in connection
with the offering of the Notes.

     “Officer’s Certificate” means a certificate signed by the Chairman of the Board of Directors
or the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the
Chief Operating Officer, the Controller, Treasurer, Assistant Treasurer, Corporate Secretary or
Assistant Corporate Secretary and delivered to the Trustee; provided, however, the officer signing
an Officer’s Certificate given pursuant to Section 10.04 shall be the principal executive,
financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
to the Company, and who shall be reasonably acceptable to the Trustee.

     “Outstanding,” when used with respect to the Notes, means, as of the date of determination,
all Notes theretofore authenticated and delivered under this Indenture, except:

     (i) Notes theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (ii) Notes for the payment of which 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 Notes in accordance with the terms of such Indenture;

     (iii) Notes which have been paid pursuant to Section 3.06 or in exchange for or in
lieu of which other Notes have been authenticated and delivered pursuant to this
Indenture;

     (iv) Notes converted into Common Stock pursuant to Article 12; and

     (v) Notes repurchased pursuant to Article 11;

provided, however, that, in determining whether the Holders of the requisite principal amount of
Outstanding Notes are present at a meeting of Holders of Notes for quorum purposes or have given
any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by
the Company or any other obligor upon the Notes or any Affiliate of the Company or 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 determination as to the presence of a
quorum or upon any such request, demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee has been notified in writing to be so owned shall
be so disregarded. Notes so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee is not the Company or any other obligor upon the Notes or any Affiliate
of the Company or such other obligor, and the Trustee shall be protected in relying upon an
Officer’s Certificate to such effect.

     “Paying Agent” means any Person authorized by the Company to pay the principal of or interest
on any Notes on behalf of the Company and, except as otherwise specifically set forth herein, such
term shall include the Company if it shall act as its own Paying Agent. The Company has initially
appointed the Trustee as its Paying Agent pursuant to Section 10.02.

     “Person” means any individual, corporation, limited liability company, partnership, joint
venture, trust, estate, unincorporated organization or government or any agency or political
subdivision thereof and any syndicate or group that would be deemed a “person” under Section
13(d)(3) of the Exchange Act.

     “Place of Conversion” has the meaning specified in Section 3.01.

     “Place of Payment” has the meaning specified in Section 3.01.

     “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and

 

 

delivered under Section 3.06 in exchange for or in lieu of a mutilated, destroyed, lost or
stolen Note shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Note.

     “Press Release” means any press release issued by the Company and disseminated to a reputable
national newswire service.

     “Principal Portion” in respect of a Note to be converted, means cash in an amount equal to the
sum of Daily Cash Amounts for each of the 20 VWAP Trading Days during an Observation Period.

     “Purchase Agreement” means the Purchase Agreement, dated as of March 22, 2007 between the
Company and the Initial Purchasers, as such agreement may be amended from time to time.

     “Record Date” means any Regular Record Date or Special Record Date.

     “Reference Property” has the meaning specified in Section 12.11.

     “Registrable Securities” has the meaning ascribed to it in the Registration Rights Agreement.

     “Registrar” means the Trustee, for the purpose of registering Notes and transfers of Notes.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of March 28,
2007, between the Company and the Initial Purchasers, as such agreement may be amended from time to
time in accordance with its terms.

     “Regular Record Date” for interest payable in respect of any Note on any Interest Payment Date
means 5:00 p.m. New York time on May 1 or November 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date.

     “Responsible Officer,” means, with respect to the Trustee, any officer assigned to the
Corporate Trust Division — Corporate Finance Unit (or any successor division or unit) of the
Trustee located at the Corporate Trust Office of the Trustee, who shall have direct responsibility
for the administration of this Indenture and, for the purposes of the last sentence of Section
6.02, shall also include any other officer of the Trustee to whom any corporate trust matter is
referred because of such officer’s knowledge of and familiarity with the particular subject.

     “Restricted Security” means any Note or share of Common Stock issuable upon conversion thereof
except any such Note or share of Common Stock that (i) has been effectively registered under the
Securities Act and sold in a manner contemplated by the Shelf Registration Statement, (ii) has been

 

 

transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any successor provision
thereto) or (iii) has otherwise been transferred and a new Note or share of Common Stock not
subject to transfer restrictions under the Securities Act has been delivered by or on behalf of the
Company in accordance with this Indenture.

     “Rule 144A Information” shall have the meaning specified in Section 10.07.

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

     “Securities Act” means the Securities Act of 1933 and any statute successor thereto, in each
case as amended from time to time.

     “Shelf Registration Statement” has the meaning specified in Section 2.02.

     “Significant Subsidiary” means, with respect to any Person, a Subsidiary of such Person that
would constitute a “significant subsidiary” as such term is defined under Rule 1-02 of Regulation
S-X under the Securities Act and the Exchange Act.

     “Special Interest” has the meaning specified in Section 2.02.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.07.

     “Spin-Off” has the meaning specified in Section 12.05.

     “Stock Price” means the price per share of Common Stock at the time of a Fundamental Change
pursuant to which Additional Shares shall be added to the Conversion Rate as set forth in Section
12.01(e), which shall be equal to (i) if holders of Common Stock receive only cash consideration
for their shares of Common Stock in connection with a Fundamental Change, 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 ten consecutive Scheduled Trading Day period ending on the Trading Day
preceding the Effective Date of such Fundamental Change.

     “Subsidiary” means 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. For the purposes of this definition, “voting stock”
means stock or other similar

 

 

interests in the corporation which ordinarily has or have voting power for the election of
directors, or persons performing similar functions, whether at all times or only so long as no
senior class of stock or other interests has or have such voting power by reason of any
contingency.

     “Termination of Trading” has the meaning specified in Section 11.01(a).

     “Trading Day” means a day during which (i) trading in the Common Stock generally occurs and
(ii) there is no Market Disruption Event.

     “Trading Price” with respect to any Notes, on any date of determination, means the average of
the secondary market bid quotations obtained by the Trustee for $2.0 million in principal amount of
such Notes at approximately 3:30 p.m., New York City time, on such determination date from three
independent nationally recognized securities dealers, which may include any or all of the Initial
Purchasers, selected by the Company; provided that if three such bids cannot reasonably be provided
to the Trustee, but two such bids are obtained, then the average of the two bids shall be used, and
if only one such bid is obtained, that one bid shall be used. If at least one bid for $2.0 million
in principal amount of the Notes cannot reasonably be obtained, then the trading price per $1,000
in principal amount of Notes shall be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Conversion Rate in effect on such date
of determination. Any such determination by the Trustee shall be conclusive absent manifest error.

     “Trading Price Condition” has the meaning specified in Section 12.01.

     “Trigger Event” has the meaning specified in Section 12.05.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided, however, that in the event 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.

     “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 such successor Trustee.

     “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 1.02 Acts of Holders of Notes.

     Subject to Article 5 of this Indenture, upon actual receipt by the Trustee from any Holder of
(i) any notice of Default or breach referred to in Section 5.01, if such Default or breach has
occurred and is continuing and the Trustee shall not have given such a notice to the Company, (ii)
any declaration of acceleration referred to in Section 5.02, if an Event of Default has occurred
and is continuing and the Trustee shall not have given such a declaration to the Company, or (iii)
any direction referred to in Section 5.04 or Section 5.06, if the Trustee shall not have taken the
action specified in such direction, then, with respect to clauses (ii) and (iii), a record date
shall automatically and without any action by the Company or the Trustee be set for determining the
Holders entitled to join in such declaration or direction, which record date shall be the close of
business on the 10th calendar day (or, if such day is not a Business Day, the first Business Day
thereafter) following the calendar day on which the Trustee receives such declaration or direction,
and, with respect to clause (i), the Trustee may set any calendar day as a record date for the
purpose of determining the Holders entitled to join in such notice of Default. Promptly after such
receipt by the Trustee of any such declaration or direction referred to in clause (ii) or (iii),
and promptly after setting any record date with respect to clause (i), and as soon as practicable
thereafter, the Trustee shall notify the Company and the Holders of any such record date so fixed.
The Holders as of 5:00 p.m. New York City time, on such record date (or their duly appointed agents
or proxies), and only such Persons, shall be entitled to join in such notice, declaration or
direction, whether or not such Holders remain Holders after such time; provided that, unless such
notice, declaration or direction shall have become effective by virtue of Holders of the requisite
principal amount of Notes as of 5:00 p.m. New York City time, on such record date (or their duly
appointed agents or proxies) having joined therein (an “Act”) on or prior to the 90th calendar day
after such record date, such notice, declaration or direction shall automatically and without any
action by any Person be canceled and of no further effect. Nothing in this paragraph shall be
construed to prevent a Holder (or a duly appointed agent or proxy thereof) from giving, before or
after the expiration of such 90-calendar day period, a notice, declaration or direction contrary to
or different from, or, after the expiration of such period, identical to, the notice, declaration
or direction to which such record date relates, in which event a new record date in respect thereof
shall be set pursuant to this paragraph. For the avoidance of doubt, nothing in this paragraph
shall be

 

 

construed to render ineffective any notice, declaration or direction of the type referred to
in this paragraph given at any time to the Trustee or the Company by Holders (or their duly
appointed agents or proxies) of the requisite principal amount of Notes on the date such notice,
declaration or direction is so given.

     SECTION 1.03 Notices, Etc. To The Trustee And Company.

     Any request, demand, authorization, direction, notice, consent, election, waiver or other Act
of Holders of Notes or other document provided or permitted by this Indenture to be made upon,
given or furnished to, or filed with,

     (a) the Trustee by any Holder of Notes or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (which may be via facsimile) to or with a
Responsible Officer of the Trustee and received at its Corporate Trust Office, Attention: Corporate
Trust Administration – Corporate Finance Unit.

     (b) the Company by the Trustee or by any Holder of Notes shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing, mailed, first-class postage
prepaid, or telecopied and confirmed by mail, first-class postage prepaid, or delivered by hand or
overnight courier, addressed to the Company at 4425 Corporation Lane, Virginia Beach, Virginia
23462, Attention: Secretary, or at any other address previously furnished in writing to the Trustee
by the Company.

     SECTION 1.04 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 1.05 Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture (except for the issuance of the Notes on the Issue Date), the Company
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 certificates or opinions is specifically required by any provision of
this Indenture relating to such particular application or request, no additional certificate or
opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

     (a) a statement that each individual signing such certificate or opinion has read such
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 or not
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.

     SECTION 1.06 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 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 stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that
the certificate or opinion or representations with respect to such matters are erroneous.

     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 1.07 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 Register, not later than the latest date (if any), and not earlier than the earliest date (if
any), prescribed herein or in the Notes for the giving of such notice. In any case where notice to
Holders is given

 

 

by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder shall affect the sufficiency of such notice with respect to other Holders.
Where this 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 1.08 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 to be excluded, as the case may be.

     SECTION 1.09 Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

     SECTION 1.10 Separability Clause.

     In case any provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     SECTION 1.11 Benefits of Indenture.

     Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other
than the parties hereto and their successors hereunder and the Holders of Notes, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

     SECTION 1.12 Governing Law.

     This Indenture and the Notes shall be governed by and construed in accordance with the laws of
the State of New York.

 

 

     SECTION 1.13 Legal Holidays.

     In any case where any Interest Payment Date, Designated Event Repurchase Date or the Maturity
Date of any Note or the last date on which a Holder has the right to convert his Notes shall not be
a Business Day, then (notwithstanding any other provision of this Indenture or of the Notes)
payment of interest or principal or conversion of the Notes need not be made on such date, but may
be made on the next succeeding Business Day with the same force and effect as if made on the
Interest Payment Date or Designated Event Repurchase Date, or at the Maturity Date, or on such last
day for conversion, provided that no interest shall accrue for the period from and after such
Interest Payment Date, Designated Event Repurchase Date or the Maturity Date, as the case may be.
Notwithstanding the foregoing, the right to convert a Note shall cease at the close of business on
the third Scheduled Trading Day immediately preceding the Maturity Date.

     SECTION 1.14 Force Majeure

     The Trustee shall not be responsible or liable for any failure or delay in the performance of
its obligations under this Indenture arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control, including, without limitation, acts of God;
earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics;
riots; interruptions; loss or malfunctions of utilities, computer (hardware or software) or
communication services; accidents; labor disputes; acts of civil or military authority and
governmental action; provided that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon as practicable under
the circumstances.

ARTICLE 2

Note Forms

     SECTION 2.01 Form Generally.

     The Notes shall be in substantially the form set forth in this Article 2, with such
appropriate insertions, omissions, substitutions and other variations as are 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, the Code, and regulations thereunder, or as may, consistent herewith, be
determined by the officers executing such Notes, as evidenced by their execution thereof. The
Company shall furnish any such legends and endorsements to the Trustee in writing. All Notes shall
be in fully registered form.

     Notices of Conversion shall be in substantially the form set forth in Section 2.03.

 

 

     The Notes shall be printed, lithographed, typewritten or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by the rules of any
automated quotation system or securities exchange (including on steel engraved borders if so
required by any securities exchange upon which the Notes may be listed) on which the Notes may be
listed for trading, as the case may be, all as determined by the officers executing such Notes, as
evidenced by their execution thereof.

     SECTION 2.02 Form of Note.

[FORM OF FACE OF NOTE]

     The following legend shall appear on the face of each Restricted Security:

     THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON THE CONVERSION OF THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE
144A THEREUNDER.

     THIS NOTE AND ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
ACQUIRING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (3) TO AN INSTITUTIONAL INVESTOR
THAT IS AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) OF
REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT (IF AVAILABLE) OR (4) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS.

 

 

     THIS NOTE, ANY COMMON STOCK ISSUABLE UPON ITS CONVERSION AND ANY RELATED DOCUMENTATION MAY BE
AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON RESALES AND OTHER TRANSFERS
OF THIS NOTE AND ANY SUCH SHARES TO REFLECT ANY CHANGE IN APPLICABLE LAW OR REGULATION (OR THE
INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED SECURITIES
GENERALLY. THE HOLDER OF THIS NOTE AND ANY SUCH SHARES SHALL BE DEEMED BY THE ACCEPTANCE OF THIS
NOTE AND ANY SUCH SHARES TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT.

     The following legend shall appear on the face of each Global Note:

     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY
THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS NOTE FOR ALL PURPOSES.

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

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED FORM
IN THE LIMITED CIRCUMSTANCES REFERRED TO IN THE INDENTURE, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

 

AMERIGROUP CORPORATION

2.00% Convertible Senior Notes due 2012

No.                                         

CUSIP No. 03073T AA0

     AMERIGROUP CORPORATION, a corporation duly organized and existing under the laws of the State
of Delaware (herein called the “Company,” which term includes any successor Person under the
Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
___, or registered assigns, the principal sum of
___ United States Dollars (U.S.
$___) [if this Note is a Global Note, then insert — (which principal amount may from time to
time be decreased to such other principal amounts by adjustments made on the records of the
Registrar hereinafter referred to in accordance with the Indenture)] on May 15, 2012, and to pay
interest thereon, from March 28, 2007, or from the most recent Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, semi-annually in arrears on May 15 and
November 15 in each year (each, an “Interest Payment Date”), commencing May 15, 2007, at the rate
of 2.00% per annum, until the principal hereof is due, and at the same rate on any overdue
principal and, to the extent permitted by law, on any overdue interest. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the May 1 or November 1 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Except as otherwise provided in the Indenture, any such interest not so
punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Note (or one or more
Predecessor Notes) 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 pursuant to Section 3.07 of the Indenture,
notice whereof shall be given to Holders of Notes not less than 10 calendar days prior to the
Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any automated quotation system or securities exchange on which the Notes may then
be listed for trading, and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Payments of principal shall be made upon the surrender of this Note by
the Holder thereof at the Corporate Trust Office of the Trustee, or at such other office or agency
of the Company as may be designated by it for such purpose in such lawful monies of the United
States of America as at the time of payment shall be legal tender for the payment of public and
private debts, or at such other offices or agencies as the Company may designate. All amounts due
in cash with respect to the Notes shall be paid (A) in the case this Note is in global form, by
wire transfer of immediately available funds to the account designated by the Depositary or its
nominee; (B) in the case this Note is held, other than in

 

 

global form, by a Holder in an aggregate principal amount of $5.0 million or less, by check
mailed to such Holders; and (C) in the case this Note is held, other than global form, by a Holder
in an aggregate principal amount of more than $5.0 million, either by check mailed to such Holder
or, upon application by such Holder to the Registrar not later than the relevant record date (in
the case of an installment of interest due on an Interest Payment Date) or 15 calendar days prior
to such other date on which such amounts are due, 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.

     Except as specifically provided herein and in the Indenture, the Company shall not be required
to make any payment with respect to any tax, assessment or other governmental charge imposed by any
government or any political subdivision or taxing authority thereof or therein.

     Reference is hereby made to the further provisions of this Note 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 or an Authenticating Agent by the manual signature of one of their respective
authorized signatories, this Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

[Remainder of page intentionally left blank]

 

 

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

	 	 	 	 	 
	 	AMERIGROUP CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Attest:

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture.

Dated:                                         

THE BANK OF NEW YORK,

as Trustee

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

 

 

[FORM OF REVERSE OF NOTE]

AMERIGROUP CORPORATION

2.00% Convertible Senior Notes due 2012

     This Note is one of a duly authorized issue of Notes of the Company designated as its “2.00%
Convertible Senior Notes due 2012” (herein called the “Notes”) issued and to be issued under the
Indenture (the “Indenture”), dated as of March 28, 2007, between the Company and The Bank of New
York, 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 Trustee and the Holders of the Notes and of the terms upon which the Notes are,
and are to be, authenticated and delivered. As provided in the Indenture and subject to certain
limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of
Notes of any authorized denominations as requested by the Holder surrendering the same upon
surrender of the Note or Notes to be exchanged, at the Corporate Trust Office of the Trustee. The
Trustee upon such surrender by the Holder hereof and the satisfaction of any requirements therefor
set forth in the Indenture shall issue the new Notes in the requested denominations. Additional
Notes may be issued in an unlimited aggregate principal amount, subject to certain conditions
specified in the Indenture.

     No sinking fund is provided for the Notes and the Notes are not subject to redemption at the
option of the Company.

     In any case where any Interest Payment Date, Designated Event Repurchase Date or the Maturity
Date of any Note or the last date on which a Holder has the right to convert his Notes shall not be
a Business Day, then (notwithstanding any other provision of this Indenture or of the Notes)
payment of interest or principal or conversion of the Notes need not be made on such date, but may
be made on the next succeeding Business Day with the same force and effect as if made on the
Interest Payment Date or Designated Event Repurchase Date, or at the Maturity Date, or on such last
day for conversion, provided that no interest shall accrue for the period from and after such
Interest Payment Date, Designated Event Repurchase Date or the Maturity Date, as the case may be.
Notwithstanding the foregoing, the right to convert a Note shall cease at the close of business on
the third Scheduled Trading Day immediately preceding the Maturity Date.

     The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the Holders of the Notes, and in other circumstances, with
the consent of the Holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or of any supplemental indenture or modifying in any

 

 

manner the rights of the Holders of the Notes; provided, however, that no such supplemental
indenture shall make any of the changes set forth in Section 8.02 of the Indenture, without the
consent of each Holder of an outstanding Note affected thereby. It is also provided in the
Indenture that, prior to any declaration accelerating the maturity of the Notes, the Holders of a
majority in aggregate principal amount of the Notes at the time outstanding may on behalf of the
Holders of all of the Notes waive any past Default or Event of Default under the Indenture and its
consequences except as provided in the Indenture. Any such consent or waiver by the Holder of this
Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder
and upon all future holders and owners of this Note and any Notes which may be issued in exchange
or substitution hereof, irrespective of whether or not any notation thereof is made upon this Note
or such other Notes.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, and accrued and unpaid interest on, this Note, at the place, at the respective times,
at the rate and in the lawful money herein prescribed.

     Subject to the provisions of the Indenture, upon the occurrence of a Designated Event, the
Holder has the right, at such Holder’s option, to require the Company to repurchase all of such
Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples
thereof) on the Designated Event Repurchase Date at a price equal to 100% of the principal amount
of the Notes such Holder elects to require the Company to repurchase, together with accrued and
unpaid interest (including Special Interest and Additional Interest, if any) up to, but excluding
the Designated Event Repurchase Date, unless such Designated Event Repurchase Date falls after a
Regular Record Date and on or prior to the corresponding Interest Payment Date, in which case the
Company shall pay the full amount of accrued and unpaid interest payable on such Interest Payment
Date to the Holder of record at the close of business on the corresponding Regular Record Date. The
Company or, at the written request of the Company, the Trustee shall mail to all Holders of record
of the Notes a notice of the occurrence of a Designated Event and of the repurchase right arising
as a result thereof and issue a Press Release after the occurrence of any Designated Event, but on
or before the 10th calendar day following such occurrence.

     Subject to the limitations set forth in Section 12.03 of the Indenture and to the other
provisions of the Indenture, the Holder hereof has the right, at its option, on and after March 15,
2012, or earlier upon the occurrence of certain conditions specified in the Indenture and prior to
the close of business on the third Scheduled Trading Day immediately preceding the Maturity Date,
to convert any Notes or portion thereof which is $1,000 or an integral multiple thereof, into cash
and, if applicable, shares of Common Stock or Reference Property, in each case at the Conversion
Rate specified in the Indenture, as adjusted from time to time as provided in the Indenture, upon
satisfaction of certain requirements set forth in

 

 

the Indenture, including the surrender of this Note, together with a Notice of Conversion, a
form of which is contained under Section 2.03 of the Indenture, as provided in the Indenture and
this Note, to the Company at the office or agency of the Company maintained for that purpose, or at
the option of such Holder, the Corporate Trust Office, and, unless the shares of Common Stock or
Reference Property, as the case may be, issuable on conversion are to be issued in the same name as
this Note, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the
Company duly executed by, the Holder or by his duly authorized attorney. The initial Conversion
Rate shall be 23.5114 shares of Common Stock for each $1,000 in principal amount of Notes. No
fractional shares of Common Stock or Reference Property, as the case may be, shall be issued upon
any conversion, but an adjustment in cash shall be paid to the Holder, as provided in the
Indenture, in respect of any fraction of such share which would otherwise be issuable upon the
surrender of any Note or Notes for conversion. No adjustment shall be made for dividends or any
such shares issued upon conversion of such Notes except as provided in the Indenture.

     Upon due presentment for registration of transfer of this Note at the office or agency of the
Company, a new Note or Notes of authorized denominations for an equal aggregate principal amount
shall be issued to the transferee in exchange thereof, subject to the limitations provided in the
Indenture, without charge except for any tax, assessments or other governmental charge imposed in
connection therewith.

     The Company, the Trustee, any Authenticating Agent, any Paying Agent, any Conversion Agent and
any Registrar may deem and treat the registered Holder hereof as the absolute owner of this Note
(whether or not this Note shall be overdue and notwithstanding any notation of ownership or other
writing hereon), for the purpose of receiving payment hereof, or on account hereof, for the
conversion hereof and for all other purposes, and neither the Company nor the Trustee nor any other
authenticating agent nor any Paying Agent nor any other Conversion Agent nor any Registrar shall be
affected by any notice to the contrary. All payments made to or upon the order of such registered
Holder shall, to the extent of the sum or sums paid, satisfy and discharge liability for monies
payable on this Note.

     No recourse for the payment of the principal of, or accrued and unpaid interest on, this Note,
or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any
obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental
thereto or in any Note, or because of the creation of any Indebtedness represented thereby, shall
be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as
such, past, present or future, of the Company or of any successor corporation, either directly or
through the Company or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the

 

 

acceptance hereof and as part of the consideration for the issue hereof, expressly waived and
released.

     [Insert the following bracketed paragraphs if this Note is a Registrable Security:

     The Holder of this Note [if this security is a global security, then insert: (including any
Person that has a beneficial interest in this Note)] and the Common Stock issuable upon conversion
hereof is entitled to the benefits of a Registration Rights Agreement, dated as of March 28, 2007
(the “Registration Rights Agreement”) between the Company and the Initial Purchasers. Pursuant to
the Registration Rights Agreement, the Company has agreed for the benefit of the Holders from time
to time of the Registrable Securities that it will, at its expense, (a) file a shelf registration
statement (the “Shelf Registration Statement”) with the Commission with respect to resales of the
Registrable Securities, (b) use its commercially reasonable efforts to cause such Shelf
Registration Statement to be declared effective by the Commission no later than 180 calendar days
after the Issue Date, provided, however, that the Company may, upon written notice to all the
Holders, postpone having the Shelf Registration Statement declared effective for a reasonable
period not to exceed 90 days if the Company possesses material non-public information, the
disclosure of which would have a material adverse effect on the Company and its Subsidiaries taken
as a whole, and (c) use its commercially reasonable efforts to maintain such Shelf Registration
Statement effective under the Securities Act until the earliest of (i) the sale of all Registrable
Securities registered under the Shelf Registration Statement, (ii) the expiration of the period
referred to in Rule 144(k) of the Securities Act with respect to Registrable Securities held by
non-affiliates of the Company and (iii) two years after the effective date of the Shelf
Registration Statement (the “Effectiveness Period”). The Company will be permitted to suspend the
use of the prospectus which is part of the Shelf Registration Statement during certain periods of
time as provided in the Registration Rights Agreement.

     If (i) on or prior to the 180th day following the Issue Date, a Shelf Registration Statement
is not declared effective by the Commission or (ii) the Shelf Registration Statement ceases to be
effective (or the Holders of Registrable Securities are otherwise prevented or restricted by the
Company from effecting sales pursuant thereto) during the Effectiveness Period for more than 45
days, whether or not consecutive, during any 90-day period or for more than 90 days, whether or not
consecutive, during any 12-month period (each, a “Registration Default”), additional interest
(“Special Interest”) will accrue on this Restricted Security from and including the day following
such Registration Default to but excluding the earlier of the day on which such Registration
Default has been cured and, if applicable, the expiration of the Effectiveness Period. Special
Interest will be paid semi-annually in arrears, with the first semi-annual payment due on the first
Interest Payment Date, as applicable, in respect of the Restricted Securities following the date on
which such Special Interest begins to accrue, and will accrue at a rate per annum equal to
one-quarter of one percent (0.25%) of the

 

 

principal amount of the Restricted Securities to and including the 90th day following such
Registration Default and at a rate per annum equal to one-half of one percent (0.50%) thereof from
and after the 91st day following such Registration Default. These amounts will be payable in
addition to any Additional Interest that may be payable pursuant to Section 12.03 of the Indenture.

     Whenever in this Note there is a reference, in any context, to the payment of the principal
of, or interest on, or in respect of, any Note, such mention shall be deemed to include mention of
the payment of Special Interest to the extent provided for in the Registration Rights Agreement,
and express mention of the payment of Special Interest (if applicable) in any provisions of this
Note shall not be construed as excluding Special Interest in those provisions of this Note where
such express mention is not made.]

     By its acceptance hereof, the Holder of this Security [if this security is a global security,
then insert: (including any Person that has a beneficial interest in this Note)] agrees to be bound
by the terms of the Registration Rights Agreement relating to the Registrable Securities which are
the subject of such election.]

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

     The Indenture and this Note shall be governed by and construed in accordance with the laws of
the State of New York.

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

 

 

FORM OF DESIGNATED EVENT REPURCHASE NOTICE

To: AMERIGROUP Corporation

     The undersigned registered owner of this Note hereby acknowledges receipt of a notice from
AMERIGROUP Corporation (the “Company”) as to the occurrence of a Designated Event with respect to
the Company and hereby directs the Company to pay, or cause the Trustee to pay, it or
___ an amount in cash equal to 100% of the entire principal amount, or the portion
thereof (which is $1,000 in principal amount or an integral multiple thereof) below designated, to
be repurchased plus accrued and unpaid interest (including Special Interest and Additional
Interest, if any) to, but excluding, the Designated Event Repurchase Date, except as provided in
the Indenture.

	 	 	 
	Dated:
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	Signature(s)
	 	 
	 
	 	 
	Signature(s) must be guaranteed by an
Eligible Guarantor Institution with
membership in an approved signature
guarantee program pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934.
	 	 
	 
	 	 
	 

Signature Guaranteed

	 	 
	 
	 	 
	Principal amount to be repurchased (at least
U.S. $1,000 or an integral
multiple of $1,000 in excess
thereof):                     
	 	 
	 
	 	 
	Remaining principal amount following
such repurchase (not less than U.S.
$1,000):                     
	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	  

Authorized
Signatory
	 	 

 

 

     SECTION 2.03 Form of Notice of Conversion.

NOTICE OF CONVERSION

     The undersigned Holder of this Note hereby irrevocably exercises the option to convert this
Note, or any portion of the principal amount hereof (which is U.S. $1,000 or an integral multiple
of U.S. $1,000 in excess thereof, provided that the unconverted portion of such principal amount is
U.S. $1,000 or any integral multiple of U.S. $1,000 in excess thereof) below designated in
accordance with the terms of the Indenture referred to in this Note, and directs that the
consideration due upon such conversion (including a check in payment for any fractional share and
any Notes representing any unconverted principal amount hereof), be delivered to and be registered
in the name of the undersigned unless a different name has been indicated below. If shares of
Common Stock, Reference Property or Notes are to be registered in the name of a Person other than
the undersigned, (a) the undersigned shall pay all transfer taxes payable with respect thereto and
(b) signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an
approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act of
1934. Any amount required to be paid by the undersigned on account of interest accompanies this
Note.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 
 

	 	 	 	 
 

Signature(s)
	 	 

	 	 	 
	If shares or Notes are to be registered
in the name of a Person other than the
Holder, please print such Person’s name
and address:
	 	 
	 
	 	 
	 

(Name)

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

(Address)

	 	 
	 
	 	 
	 

Social Security or other Identification

	 	 
	Number, if any
	 	 
	 
	 	 
	 

[Signature Guaranteed]

	 	 

 

 

     If only a portion of the Notes is to be converted, please indicate:

	1.	 	Principal amount to be converted: U.S. $                     
	 
	2.	 	Principal amount and denomination of Notes

representing unconverted principal amount to be issued:                     
	 
	 	 	Amount: U.S. $                     Denominations: U.S. $                    

(U.S. $1,000 or any integral multiple of U.S. $1,000 in excess thereof, provided that the
unconverted portion of such principal amount is U.S. $1,000 or any integral multiple of U.S. $1,000
in excess thereof)

     SECTION 2.04 Form of Assignment.

ASSIGNMENT

     For
value received, ___ hereby sell(s), assign(s) and transfer(s) unto
___ (Please insert Social Security or other identifying number of assignee) the within
note, and hereby irrevocably constitutes and appoints ___ as attorney to transfer
the said note on the books of the Company, with full power of substitution in the premises.

Dated:                           Signature(s)                                        

     Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an
approved signature guarantee program pursuant to Rule 17Ad-15 under the Securities Exchange Act
of 1934.

	 	 	 	 	 
	 

	 	 

Signature Guaranteed
	 	 

 

 

ARTICLE 3

The Notes

     SECTION 3.01 Title And Terms.

     The Notes shall be known and designated as the “2.00% Convertible Senior Notes due 2012” of
the Company. Their Maturity Date shall be May 15, 2012, and they shall bear interest on their
principal amount from March 28, 2007, payable semi-annually in arrears on May 15 and November 15 in
each year, commencing May 15, 2007, at the rate of 2.00% per annum until the principal thereof is
due; provided, however, that payments shall only be made on a Business Day as provided in Section
1.13 of this Indenture.

     The Company shall pay interest on overdue principal at the rate borne by the Notes, and it
shall pay interest on overdue installments of interest at the same rate, in each case to the extent
lawful.

     The principal of and interest on the Notes shall be payable as provided in the form of Notes
set forth in Section 2.02. The Designated Event Repurchase Price shall be payable at such place as
is identified in the Designated Event Repurchase Right Notice given pursuant to Section 11.01(b)
(such city in which the identified Paying Agent is located being herein called a “Place of
Payment”).

     The Notes shall be senior unsecured obligations of the Company and shall rank pari passu with
all of the Company’s other senior unsecured obligations.

     The Notes may not be redeemed at the option of the Company prior to Maturity.

     The Notes shall be convertible as provided in Article 12 (any city in which any Conversion
Agent is located being herein called a “Place of Conversion”).

     The Notes shall be subject to repurchase by the Company at the option of the Holders as
provided in Article 11.

     The Registrable Securities are entitled to the benefits of the Registration Rights Agreement
as provided in Section 10.08 and in the form of Note set forth in Section 2.02. The Notes are
entitled to the payment of Special Interest as provided by Section 10.08 and Additional Interest as
provided in Section 12.03.

     SECTION 3.02 Denominations.

     The Notes shall be issuable only in registered form, without coupons, in denominations of U.S.
$1,000 and integral multiples of U.S. $1,000 in excess thereof.

 

 

     SECTION 3.03 Execution, Authentication, Delivery and Dating.

     The Notes shall be executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its Chief Executive Officer, its President, its Chief Financial Officer,
Treasurer or one of its Vice Presidents, attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Notes may be manual or facsimile.

     Notes bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such Notes or
did not hold such offices at the date of such Notes.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Notes; and the Trustee in accordance
with such Company Order shall authenticate and deliver such Notes as in this Indenture provided and
not otherwise.

     Each Note shall be dated the date of its authentication.

     No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose unless there appears on such Note a certificate of authentication substantially in the
form provided for herein executed by the Trustee by manual signature, and such certificate upon any
Note shall be conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

     SECTION 3.04 Global Notes; Non-Global Notes; Book-entry Provisions.

     (a) Global Notes

     (i) Each Global Note authenticated under this Indenture shall be registered in the
name of the Depositary designated by the Company for such Global Note or a nominee thereof
and delivered to such Depositary or a nominee thereof or custodian therefor, and each such
Global Note shall constitute a single Note for all purposes of this Indenture. The Company
hereby appoints DTC as the Depositary.

     (ii) Except for exchanges of Global Notes for definitive, non-Global Notes at the
sole discretion of the Company, no Global Note may be exchanged in whole or in part for
Notes registered, and no transfer of a Global Note in whole or in part may be registered,
in the name of any Person other than the Depositary for such Global Note or a nominee
thereof unless (A) such Depositary (i) has notified the Company that it is

 

 

unwilling or unable to continue as Depositary for such Global Note or (ii) has ceased
to be a clearing agency registered as such under the Exchange Act or announces an
intention permanently to cease business or does in fact do so or (B) there shall have
occurred and be continuing an Event of Default with respect to such Global Note and the
maturity of the Notes shall have been accelerated in accordance with Section 5.02 and any
Holder shall have given written notice to the Company requesting the issuance of
definitive Notes. In such event set forth in clause (A) above, if a successor Depositary
for such Global Note is not appointed by the Company within 90 calendar days after the
Company receives such notice or becomes aware of such ineligibility, the Company shall
execute, and the Trustee, upon receipt of an Officer’s Certificate directing the
authentication and delivery of Notes, shall authenticate and deliver, Notes, in any
authorized denominations in an aggregate principal amount equal to the principal amount of
such Global Note in exchange for such Global Note.

     (iii) If any Global Note is to be exchanged for other Notes or canceled in whole, it
shall be surrendered by or on behalf of the Depositary or its nominee to the Trustee, as
Registrar, for exchange or cancellation, as provided in this Article 3. If any Global Note
is to be exchanged for other Notes or canceled in part, or if another Note is to be
exchanged in whole or in part for a beneficial interest in any Global Note, in each case
as provided in this Article 3, then either (A) such Global Note shall be so surrendered
for exchange or cancellation, as provided in this Article 3, or (B) the principal amount
thereof shall be reduced or increased by an amount equal to the portion thereof to be so
exchanged or canceled, or equal to the principal amount of such other Note to be so
exchanged for a beneficial interest therein, as the case may be, by means of an
appropriate adjustment made on the records of the Trustee, as Registrar, whereupon the
Trustee, in accordance with the Applicable Procedures, shall instruct the Depositary or
its authorized representative to make a corresponding adjustment to its records. Upon any
such surrender or adjustment of a Global Note, the Trustee shall, subject to this Article
3, authenticate and deliver any Notes issuable in exchange for such Global Note (or any
portion thereof) to or upon the order of, and registered in such names as may be directed
by, the Depositary or its authorized representative. The Trustee shall be entitled to
receive from the Depositary the names, addresses and tax identification numbers of the
Persons in whose names the Notes are to be registered prior to such authentication and
delivery. Upon the request of the Trustee in connection with the occurrence of any of the
events specified in the preceding paragraph, the Company shall promptly make available to
the Trustee a reasonable supply of Notes that are not in the form of Global Notes. The
Trustee shall be entitled to rely upon any order, direction or request of the Depositary
or its authorized representative which is given or made pursuant to this

 

 

Article 3 if such order, direction or request is given or made in accordance with the
Applicable Procedures.

     (iv) Every Note authenticated and delivered upon registration of transfer of, or in
exchange for or in lieu of, a Global Note or any portion thereof, whether pursuant to this
Article 3 or otherwise, shall be authenticated and delivered in the form of, and shall be,
a registered Global Note, unless such Note is to be registered in accordance with this
Article 3 in the name of a Person other than the Depositary for such Global Note or a
nominee thereof, in which case such Note shall be authenticated and delivered in
definitive, fully registered form, without interest coupons.

     (v) The Depositary or its nominee, as registered owner of a Global Note, shall be the
Holder of such Global Note for all purposes under this Indenture and the Notes, and owners
of beneficial interests in a Global Note shall hold such interests pursuant to the
Applicable Procedures. Accordingly, any such owner’s beneficial interest in a Global Note
shall be shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Agent Members and such owners
of beneficial interests in a Global Note shall not be considered the owners or holders
thereof.

     (b) Non-Global Notes. Notes issued pursuant to Section 3.04(a) shall be in definitive, fully
registered form, without interest coupons.

     SECTION 3.05 Persons Deemed Owners.

     Prior to due presentment of a Note for registration of transfer, the Company, the Trustee, any
Paying Agent and any agent of the Company, the Trustee or any Paying Agent may treat the Person in
whose name such Note is registered as the owner of such Note for the purpose of receiving payment
of principal of and (subject to Section 3.07) interest on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee, any Paying
Agent nor any agent of the Company, the Trustee or any Paying Agent shall be affected by notice to
the contrary.

     SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Notes.

     If any mutilated Note is surrendered to the Trustee, the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor a new Note of like tenor and principal amount
and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Note and (ii) such security or indemnity as may be
required by them to save each of them and any agent of

 

 

either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Note has been acquired by a bona fide purchaser, the Company shall execute
and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Note,
a new Note of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

     In case any such mutilated, destroyed, lost or stolen Note has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note.

     Upon the issuance of any new Note under this Section 3.06, 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 Note issued pursuant to this Section 3.06 in lieu of any destroyed, lost or stolen
Note shall constitute an original additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Note 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
Notes duly issued hereunder.

     The provisions of this Section 3.06 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 Notes.

     SECTION 3.07 Payment of Interest; Interest Rights Preserved.

     Interest (including Special Interest and Additional Interest) on any Note 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 Note (or one or more Predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest.

     Any interest (including Special Interest and Additional Interest) on any Note 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:

     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered at the close of business on
a Special Record Date for the payment of such Defaulted 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 Note 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 reasonably 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 at his address as it appears in the 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 Notes (or their respective Predecessor Notes) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the following
Clause (b).

     (b) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes 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 3.07, each Note delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Note shall
carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other
Note, as provided for in this Indenture and the Notes.

     SECTION 3.08 Cancellation.

     All Notes surrendered for payment, repurchase, registration of transfer or exchange or
conversion shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the
Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as
provided in this Section 3.08, except as expressly permitted by this Indenture. All cancelled
Notes held by the Trustee shall be disposed of by the Trustee in accordance with its customary
procedures.

 

 

     SECTION 3.09 Computation of Interest.

     Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
months.

ARTICLE 4

Discharge

     SECTION 4.01 Discharge of Liability on Notes.

     When (1) the Company shall deliver to the Registrar for cancellation all Notes then
Outstanding not theretofore delivered to the Registrar for cancellation or (2) all the Notes then
Outstanding not theretofore delivered to the Registrar for cancellation shall have (a) been
deposited for conversion (after all related Observation Periods have elapsed) and the Company shall
deliver to the Holders cash and, if applicable, shares of Common Stock sufficient to pay all
amounts owing in respect of all such Notes or (b) become due and payable on the Maturity Date,
Designated Event Repurchase Date or otherwise, and the Company shall deposit with the Trustee cash
sufficient to pay all amounts owing in respect of all such Notes, including the principal amount
and interest accrued and unpaid to the Maturity Date, Designated Event Repurchase Date or other
such date, and if in either case (1) or (2) the Company shall also pay or cause to be paid all
other sums payable hereunder by the Company, then this Indenture with respect to the Notes shall
cease to be of further effect (except as to (i) remaining rights of registration of transfer,
substitution and exchange and conversion of Notes, (ii) rights hereunder of Holders to receive from
the Trustee payments of the amounts then due, including interest with respect to the Notes 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, (iii) the rights, obligations and immunities of the
Trustee, Authenticating Agent, Paying Agent, Conversion Agent and Registrar under this Indenture
with respect to the Notes and (iv) the right to receive Special Interest as provided in the
Registration Rights Agreement), and the Trustee, on demand of the Company accompanied by an
Officer’s Certificate and an Opinion of Counsel as required by Section 4.03 and at the cost and
expense of the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture with respect to the Notes; provided, 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 Indenture with respect to the Notes.

 

 

     SECTION 4.02 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 obligations under this
Indenture with respect to the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 4.01 until such time as the Trustee or the Paying Agent is permitted
to apply all such money in accordance with this Indenture and the Notes to the Holders entitled
thereto; provided, however, that if the Company makes any payment of principal amount of or
interest on any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

     SECTION 4.03 Officer’s Certificate; Opinion of Counsel.

     Upon any application or demand by the Company to the Trustee to take any action under Section
4.01, the Company shall furnish to the Trustee an Officer’s Certificate and Opinion of Counsel
stating that all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with.

ARTICLE 5

Remedies

     SECTION 5.01 Events of Default.

     “Event of Default,” wherever used herein, means any one of the following events with respect
to the Notes (whatever the reason for such Event of Default or 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 any payment of interest on any Note when due and payable and the default
continues for a period of 30 calendar days; or

     (b) default in the payment of principal of any Note when due and payable at Maturity, upon
required repurchase, upon acceleration or otherwise; or

     (c) failure by the Company to comply with its obligation to convert the Notes into cash and,
if applicable, shares of Common Stock upon exercise of a Holder’s conversion right; or

     (d) failure by the Company to comply with its obligations under Section 7.01; or

 

 

     (e) failure by the Company to comply with its notice obligations under Section 11.01(b) or
Section 12.01(b) when due; or

     (f) failure by the Company for 60 calendar days to comply with any of its other agreements
(other than a covenant or warranty Default in whose performance or whose breach is elsewhere in
this Section 5.01 specifically provided for) contained in the Notes or this Indenture after written
notice of such Default from the Trustee or the Holders of at least 25% in principal amount of the
Outstanding Notes has been received by the Company; or

     (g) default by the Company or any majority owned Subsidiary of the Company with respect to any
mortgage, agreement or other instrument under which there may be outstanding, or by which there may
be secured or evidenced, any debt for money borrowed in excess of $10.0 million in the aggregate of
the Company and/or any such Subsidiary of the Company, whether such debt now exists or shall
hereafter be created, which default results (i) in such debt becoming or being declared due and
payable and such debt has not been discharged in full or such declaration rescinded or annulled
within 30 days or (ii) from a failure to pay the principal of any such debt when due and payable at
its stated maturity, upon required repurchase, upon declaration or otherwise and such defaulted
payments shall not have been made, waived or extended within 30 days; or

     (h) failure by the Company or any of its majority owned Subsidiaries, within 60 calendar days,
to pay, bond or otherwise discharge any judgments or orders for the payment of money the total
uninsured amount of which for the Company or any of its Subsidiaries exceeds in the aggregate $10.0
million, which are not stayed on appeal; or

     (i) the Company shall commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to the Company or any of its Significant Subsidiaries
or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of
the Company or any of its Significant Subsidiaries or any substantial part of its property, or
shall consent to any such relief or to the appointment of or taking possession by any such official
in an involuntary case or other proceeding commenced against it, or shall make a general assignment
for the benefit of creditors, or shall fail generally to pay its debts as they become due; or

     (j) an involuntary case or other proceeding shall be commenced against the Company or any of
its Significant Subsidiaries seeking liquidation, reorganization or other relief with respect to
the Company or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of the Company or any of its Significant Subsidiaries or any substantial part of its
property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a
period of sixty (60) consecutive calendar days.

 

 

     SECTION 5.02 Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 5.01(i) or Section
5.01(j) with respect to the Company) occurs and is continuing, then in every such case (except as
provided in the immediately following paragraph) the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Notes may declare the principal of and accrued and unpaid
interest on all such Notes to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by the Holders), and upon any such declaration of acceleration, all
principal and all accrued and unpaid interest (including Special Interest and Additional Interest,
if any) on the Notes shall become immediately due and payable. If an Event of Default specified in
Section 5.01(i) or Section 5.01(j) with respect to the Company (but not a Significant Subsidiary)
occurs, the principal of, and accrued and unpaid interest (including Special Interest and
Additional Interest, if any) on, all of the Notes shall become immediately due and payable without
any declaration or other Act of the Holders or any act on the part of the Trustee.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 5.01(f) relating to the failure by the Company to comply with its
obligations under Section 10.06 and for any failure by the Company to comply with the requirements
of Section 314(a)(1) of the Trust Indenture Act, shall for the first 60 calendar days after the
occurrence of such an Event of Default consist exclusively of the right (the “Extension Right”) to
receive an extension fee on the Notes in an amount equal to 0.25% of the principal amount of the
Notes (the “Extension Fee”). If the Company elects to pay the Extension Fee as the sole remedy for
an Event of Default specified in Section 5.01(f) relating to the failure by the Company to comply
with its obligations under Section 10.06 and for any failure by the Company to comply with the
requirements of Section 314(a)(1) of the Trust Indenture Act, the Company (i) shall notify, in the
manner provided for in Section 1.07, the Holders and the Trustee and Paying Agent of such election
and issue a Press Release prior to the open of business on the first Business Day following the
date on which such Event of Default first occurs and (ii) pay the Extension Fee, on or before the
close of business on the date on which such Event of Default first occurs, on all Notes then
Outstanding. Upon the Company’s failure to give such notice or to pay the Extension Fee when due,
the Notes shall be subject to acceleration as provided in the first paragraph of this Section 5.02.
On and after the 61st calendar day after such Event of Default occurs, if such Event of Default is
not cured or waived prior to such 61st calendar day, the Notes shall be subject to acceleration as
provided in the first paragraph of this Section 5.02. If an Extension Fee is payable under this
Section 5.02, the Company shall deliver to the Trustee a certificate to that effect stating (i) the
amount of such Extension Fee that is payable and (ii) the date on which such Extension Fee is
payable. Unless and until a Responsible Officer of the Trustee receives at the Corporate Trust
Office such a certificate, the Trustee may assume without inquiry that the Extension Fee is not
payable. If the Extension Fee has been paid by the Company directly to the

 

 

Holders, the Company shall deliver to the Trustee a certificate setting forth the particulars
of such payment.

     Notwithstanding the foregoing paragraph, if an Event of Default occurs under any series of the
Company’s debt securities (other than the Notes) resulting from the Company’s failure to comply
with obligations similar to those contained in Section 10.06 or the requirements of Section
314(a)(1) of the Trust Indenture Act, and such Event of Default is not subject to extension on
terms similar to those set forth in the foregoing paragraph, then the Extension Right shall no
longer apply and the Notes shall be subject to acceleration as provided in the first paragraph of
this Section 5.02.

     This Section 5.02, however, is subject to the conditions that if, at any time after the
principal of the Notes shall have been so declared due and payable, and before any judgment or
decree for the payment of the monies due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay
installments of accrued and unpaid interest upon all Notes and the principal of any and all Notes
that shall have become due otherwise than by acceleration (with interest on overdue installments of
accrued and unpaid interest (to the extent that payment of such interest is enforceable under
applicable law) and on such principal at the rate borne by the Notes during the period of such
Default) and amounts due to the Trustee pursuant to Section 6.07, and if (1) rescission would not
conflict with any judgment or decree of a court of competent jurisdiction and (2) any and all
Events of Defaults under this Indenture with respect to such Notes, other than the nonpayment of
principal of and accrued and unpaid interest on such Notes that shall have become due solely by
such acceleration, shall have been cured or waived pursuant to Section 5.04, then and in every such
case the Holders of a majority in aggregate principal amount of the Outstanding Notes, by written
notice to the Company and to the Trustee, may waive all Defaults or Events of Default with respect
to the Notes and rescind and annul such declaration and its consequences and such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent Default or Event of Default, or shall impair any right consequent
thereon. The Company shall notify the Trustee in writing, as soon as possible and in any event
within five days upon becoming aware thereof, of any Event of Default by delivering to the Trustee
a statement specifying such Event of Default and any action the Company has taken, is taking or
proposes to take with respect thereto. No rescission or annulment referred to above shall affect
any subsequent Default or impair any right consequent thereon.

     SECTION 5.03 Unconditional Right of Holders to Receive Principal and Interest and to Convert.

     Notwithstanding any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment

 

 

of the principal of and (subject to Section 3.07) interest on such Note on the Maturity Date,
and to convert such Note in accordance with Article 12, and to institute suit for the enforcement
of any such payment and right to convert, and such rights shall not be impaired without the consent
of such Holder.

     SECTION 5.04 Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Notes may on
behalf of the Holders of all of the Notes waive any past Default hereunder and its consequences,
except a Default (A) in the payment of the principal of or interest on any Note, or (B) in respect
of a covenant or provision hereof which under Article 8 cannot be modified or amended without the
consent of the Holder of each Outstanding Note 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 5.05 Waiver of Stay, Usury or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, usury or extension law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it shall not hinder, delay or impede by reason of such law the execution of any power herein
granted to the Trustee, but shall suffer and permit the execution of every such power as though no
such law had been enacted.

     SECTION 5.06 Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Notes 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, provided that

     (a) such direction shall not be in conflict with any rule of law or with this Indenture;

     (b) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and

     (c) the Trustee may refuse to follow any direction that conflicts with law or this Indenture,
is unduly prejudicial to the rights of other Holders or would involve the Trustee in personal
liability.

 

 

     SECTION 5.07 Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if:

     (1) default is made in the payment of any interest on any Note when such interest
becomes due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Note at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Notes, the whole amount then due and payable on such Notes for principal and interest, and, to the
extent that payment of such interest shall be legally enforceable, interest on any overdue
principal and on any overdue interest, at the rate borne by the Notes, 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 an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders 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 5.08 Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Notes), its property or its creditors, the Trustee shall be entitled and empowered, by intervention
in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture
Act in order to have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized 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, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07.

     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, arrangement,
adjustment or composition affecting the Notes 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.

     SECTION 5.09 Trustee May Enforce Claims Without Possession of Notes.

     All rights of action and claims under this Indenture or the Notes may be prosecuted and
enforced by the Trustee without the possession of any of the Notes 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 Notes in respect
of which such judgment has been recovered.

     SECTION 5.10 Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article or otherwise on behalf of the
Holders or the Trustee pursuant to this Article or through any proceeding or any arrangement or
restructuring in anticipation or in lieu of any proceeding contemplated by this Article, and any
money or other property distributable in respect of the Company’s obligations under this Indenture
after an Event of Default, shall be applied in the following order, at the date or dates fixed by
the Trustee and, in case of the distribution of such money on account of principal (or premium, if
any) or interest, upon presentation of the Notes 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 or any predecessor Trustee
under Section 6.07; and

     SECOND: To the payment of the amounts then due and unpaid for principal of and
interest on the Notes 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 Notes for principal and interest, respectively.

     SECTION 5.11 Limitation on Suits.

     No Holder of any Note shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

     (1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default;

     (2) the Holders of not less than 25% in principal amount of the Outstanding Notes
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;

     (3) such Holder or Holders have offered to the Trustee security or indemnity
satisfactory to it against any costs, liability or expense;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (5) no direction that, in the opinion of the Trustee, is 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 Notes;

it being understood and intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or
prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference
over any other Holders or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.

     SECTION 5.12 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 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 5.13 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 3.06, 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 5.14 Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Note to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

     SECTION 5.15 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess reasonable costs, including reasonable attorneys’ fees and expenses, against any such party
litigant, in the manner and to the extent provided in the Trust Indenture Act; provided, that
neither this Section 5.15 nor the Trust Indenture Act shall be deemed to authorize any court to
require such an undertaking or to make such an assessment in any suit instituted by the Trustee or
the Company or in any suit for the enforcement of the right to convert any Note in accordance with
Article 12.

ARTICLE 6

The Trustee

     SECTION 6.01 Certain Duties and Responsibilities.

     (a) Except during the continuance of an Event of Default,

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture or required under the Trust Indenture Act, and no
other covenants or obligations shall be read into this Indenture against the Trustee; and

     (2) in the absence of bad faith or willful misconduct 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 or not
they conform to the requirements of this Indenture (but need not confirm or investigate
the accuracy of mathematical calculations or other facts or matters stated therein).

     (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 person would
exercise or use under the circumstances in the conduct of such person’s 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:

     (1) this Subsection shall not be construed to limit the effect of Subsection (a)(1)
of this Section; and

     (2) 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 Notes 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 Notes;

     (d) 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.

     (e) Whether or not 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 6.01.

     SECTION 6.02 Notice of Defaults.

     Within 90 days after the occurrence thereof, and if known to the Trustee, the Trustee shall
mail notice to each Holder of each Default or Event of Default with respect to the Notes known to
the Trustee, by transmitting such notice to Holders contained in the most recent list furnished to
the Trustee as provided in Section 9.01 and the names and addresses of Holders received by the
Trustee in its capacity as Registrar. Except in the case of a Default in the payment of principal
of or interest on any Note or conversion default, the Trustee may withhold notice if and so long as
a committee of trust officers of the Trustee in good faith determines that withholding notice is in
the interests of the Holders.

     SECTION 6.03 Certain Rights of Trustee.

     Subject to the provisions of Section 6.01:

     (a) the Trustee may conclusively rely and shall be 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 mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order, and any resolution of the Board of Directors mentioned in
this Indenture shall 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) may, in the absence of bad faith
on its part, conclusively rely upon an Officer’s Certificate;

     (d) the Trustee may consult with counsel of its selection and the advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

     (e) the 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 security or indemnity reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction;

     (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 at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation; and

     (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;

     (h) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by
it in good faith and reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Indenture;

 

 

     (i) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit), unless such loss or damage results from the bad faith or willful misconduct of the
Trustee, irrespective of whether the Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action;

     (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 and specifies each such
Default;

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

     (l) the permissive rights of the Trustee enumerated herein shall not be construed as duties of
the Trustee; and

     (m) the Trustee may request that the Company deliver a certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified actions pursuant to
this Indenture.

     SECTION 6.04 Not Responsible for Recitals or Issuance of Notes.

     The recitals contained herein and in the Notes, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes. Neither the
Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company
of Notes or the proceeds thereof.

     SECTION 6.05 May Hold Notes.

     The Trustee, any Authenticating Agent, any Paying Agent, any Registrar or any other agent of
the Company, in its individual or any other capacity, may become the owner or pledgee of Notes and,
subject to Section 6.08 and Section 6.13, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent, Registrar or such other
agent.

 

 

     SECTION 6.06 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 with the Company.

     SECTION 6.07 Compensation and Reimbursement.

     The Company agrees

     (a) to pay to the Trustee from time to time such compensation as the Company and the Trustee
shall from time to time agree in writing 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 gross negligence, willful misconduct or bad faith; and

     (c) to indemnify each of the Trustee or any predecessor Trustee and their agents for, and to
hold them harmless against, any and all loss, damages, claims, liability or expense, including
taxes (other than taxes based upon, measured by or determined by the income of the Trustee),
incurred without gross negligence, willful misconduct or bad faith on its part, arising out of or
in connection with this Indenture or the Notes, including the acceptance or administration of the
trust or trusts hereunder, and the costs and expenses of defending itself against any claim
(whether asserted by the Company, a Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder or in connection with the
enforcement of the provisions of this Section 6.07.

     The Trustee shall have a lien prior to the Notes as to all property and funds held by it
hereunder for any amount owing it or any predecessor Trustee pursuant to this Section 6.07, except
with respect to funds held in trust for the benefit of the Holders of particular Notes.

     When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 5.01(i) or Section 5.01(j), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable Federal or state bankruptcy, insolvency or other similar
law.

 

 

     The provisions of this Section 6.07 shall survive the termination of this Indenture and shall
extend to each predecessor Trustee.

     SECTION 6.08 Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

     SECTION 6.09 Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such, and has a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of its supervising or examining authority, then for the purposes of this
Section 6.09 and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 6.09, it shall resign immediately in the
manner and with the effect hereinafter specified in this Article.

     SECTION 6.10 Resignation and Removal; Appointment Of Successor.

     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.

     The Trustee may resign at any time 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, at the Company’s expense, any court of competent jurisdiction for
the appointment of a successor Trustee.

     The Trustee may be removed at any time by Act of the Holders of a majority in principal amount
of the Outstanding Notes, delivered to the Trustee and to the Company.

     If at any time:

     (a) the Trustee shall fail to comply with Section 6.08 after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Note for at least six months, or

 

 

     (b) the Trustee shall cease to be eligible under Section 6.09 and shall fail to resign after
written request therefor by the Company or by any such Holder, or

     (c) 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 or (B) any
Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee or Trustees.

     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, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee or Trustees. If, within 60 days after such resignation, removal or
incapability, or the occurrence of such vacancy, the Company has not appointed a successor Trustee,
a successor Trustee shall be appointed by Act of the Holders of a majority in principal amount of
the Outstanding Notes 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 and supersede the successor
Trustee appointed by the Company. If no successor Trustee shall have been so appointed by the
Company or the Holders and accepted appointment in the manner required by Section 6.11, the Trustee
being removed, at the expense of the Company, may, or any Holder who has been a bona fide Holder of
a Note 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.

     The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to all Holders in the manner provided in Section 1.06. Each
notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

     SECTION 6.11 Acceptance of Appointment by Successor.

     Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company 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 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.

     Upon request of any such successor Trustee, the Company 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.

     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.

     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, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Notes 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 Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes.

     SECTION 6.13 Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company (or any such other obligor).

     SECTION 6.14 Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act on
behalf of the Trustee to authenticate Notes issued upon original issue and upon exchange,
registration of transfer or partial repurchase thereof or pursuant to Section 3.07, and Notes 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 Notes 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
6.14, 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 6.14, such Authenticating Agent shall resign immediately in the manner and with the
effect specified in this Section 6.14.

     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 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
6.14, 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. 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. 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 6.14, the
Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and
shall give notice of such appointment in the manner provided in Section 1.07 to all Holders. 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 6.14.

     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 for such payments, subject to the provisions of Section 6.07.

     If an appointment with respect to the Notes is made pursuant to this Section 6.14, the Notes
may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an
alternative certificate of authentication in the following form:

 

 

     This is one of the Notes referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	,	 	 	 
	 

	 	 	 	 

As Trustee
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	,	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	As Authenticating Agent	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Authorized Officer	 	 	 	 

 

 

ARTICLE 7

Consolidation, Merger, Conveyance, Transfer or Lease

     SECTION 7.01 Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge with or into any other Person or convey,
transfer or lease all or substantially all of its properties and assets to any Person, unless:

     (1) the resulting, surviving or transferee Person, if not the Company, is a Person
organized and existing under the laws of the United States of America, any State thereof
or the District of Columbia, and such Person, if not the Company, expressly assumes by
supplemental indenture all of the Company’s obligations under the Notes and this
Indenture;

     (2) immediately after giving effect to such transaction, no Default has occurred and
is continuing; and

     (3) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with.

     SECTION 7.02 Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company in accordance with Section 7.01, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease 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 Person shall be relieved of all
obligations and covenants under this Indenture and the Notes.

 

 

ARTICLE 8

Supplemental Indentures

SECTION 8.01 Supplemental Indentures Without Consent of Holders of Notes.

     Without the consent of any Holders of Notes, the Company, when authorized by a Board
Resolution, and the Trustee, upon receipt of a Company Request and an Officer’s Certificate and an
Opinion of Counsel, at any time and from time to time, may enter into one or more indentures
supplemental hereto for any of the following purposes:

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

     (b) to evidence the succession of another Person to the Company and the assumption by any such
successor of the obligations of the Company herein and in the Notes as permitted by Section 7.01;
or

     (c) to add guarantees with respect to the Notes; or

     (d) to secure the Notes; or

     (e) to add to the covenants of the Company for the benefit of the Holders of Notes or to
surrender any right or power herein conferred upon the Company; or

     (f) to provide for the conversion of Notes in accordance with the terms of this Indenture;

     (g) to make any change to this Indenture or the Notes that does not adversely affect the
rights of any Holder of Notes in any material respect; provided that any such change to conform the
terms of this Indenture or the Notes to the description of Notes contained in the Offering Circular
shall not be deemed to be adverse to any Holder of Notes; or

     (h) eliminate the Company’s full share settlement option pursuant to Section 12.02(a) or the
Company’s option to elect to pay cash to Holders of Notes surrendered for conversion in lieu of
delivering all or a portion of the Deliverable Shares issuable upon conversion of Notes pursuant to
Section 12.02(a); or

     (i) to comply with the requirements of the Trust Indenture Act or the rules and regulations of
the Commission thereunder in order to effect or maintain the qualification of this Indenture under
the Trust Indenture Act, as contemplated by this Indenture or otherwise; or

     (j) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee; or

 

 

     (k) to provide for the issuance of Additional Notes in accordance with the terms and
conditions of this Indenture.

     Upon Company Request, accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, the Trustee shall join with the Company in the execution of any
supplemental indenture authorized or permitted by the terms of this Indenture and to make any
further appropriate agreements and stipulations that may be therein contained.

     SECTION 8.02 Supplemental Indentures With Consent of Holders of Notes.

     With the written consent of the Holders of not less than a majority in principal amount of the
Outstanding Notes (including without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for Notes), by the Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee, upon
receipt of a Company Request and an Opinion of Counsel, may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the
Holders of Notes under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Note affected thereby:

     (a) reduce the percentage in aggregate principal amount of Notes the Holders of which must
consent to an amendment; or

     (b) reduce the rate, or extend the stated time for payment, of interest on any Note or reduce
the amount, or extend the stated time for payment of the Extension Fee; or

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

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

     (e) reduce the Designated Event Repurchase Price of any Note or amend or modify in any manner
adverse to the Holders of the Notes the Company’s obligations to make such payments, whether
through an amendment or waiver of provisions in the covenants, definitions or otherwise; or

     (f) change the place or currency of payment of principal, interest or the Extension Fee in
respect of any Note; or

     (g) impair the right of any Holder to receive payment of principal of, and interest on, such
Holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any
payment on or with respect to such Holder’s Note; or

 

 

     (h) adversely affect the ranking of the Notes as the senior unsecured Indebtedness of the
Company; or

     (i) modify the Company’s obligation under Section 10.07; or

     (j) make any change in the provisions of this Article 8 that require each Holder’s consent or
in the waiver provisions in Section 5.02 and Section 5.04.

     It shall not be necessary for any Act of Holders of Notes under this Section 8.02 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     SECTION 8.03 Notice of Supplemental Indentures.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 8.02, the Company shall notify the Holders in the manner
provided in Section 1.07 and issue a Press Release briefly setting forth in general terms the
substance of such supplemental indenture. Any failure of the Company to give such notice or to
issue such Press Release, or any defect in the notice or the Press Release, shall not in any way
impair or affect the validity of any such supplemental indenture.

     SECTION 8.04 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article 8, 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 theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture, agreement or instrument, or accept any such additional trusts, which
affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     SECTION 8.05 Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article 8 shall conform to the
requirements of the Trust Indenture Act.

ARTICLE 9

Holders Lists and by Trustee and Company

     SECTION 9.01 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, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular
Record Date, and

     (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;

excluding from any such list names and addresses received by the Trustee in its capacity as
Registrar.

     SECTION 9.02 Preservation of Information.

     (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 9.01 and the names and addresses of Holders received by the Trustee in its capacity as
Registrar. The Trustee may dispose of any list furnished to it as provided in Section 9.01 upon
receipt of a new list so furnished.

     (b) If the Indenture has been qualified under the Trust Indenture Act, the rights of Holders
to communicate with other Holders with respect to their rights under this Indenture or under the
Notes, and the corresponding rights and duties of the Trustee, shall be as provided by the Trust
Indenture Act.

     (c) Every Holder of Notes, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

     SECTION 9.03 Communication to Holders.

     (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313 (a) of the Trust Indenture Act, the
Trustee shall, within 60 days after each May 15th following the date of the Issue Date, deliver to
Holders a brief report, dated as of such May 15th, which complies with the provisions of such
Section 313(a).

     (b) If required by law, a copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange, if any, upon which the Notes are listed,
with the Commission and with the Company. The Company will notify the Trustee when the Notes are
listed on any stock exchange and of any delisting thereof.

 

 

ARTICLE 10

Covenants

     SECTION 10.01 Payment of Principal and Interest.

     The Company covenants and agrees that it shall duly and punctually pay the principal of and
interest on the Notes in accordance with the terms of the Notes and this Indenture. The Company
shall deposit or cause to be deposited with the Trustee or its nominee, no later than 11:00 a.m.,
New York City time, on the Maturity Date of the Notes or no later than 11:00 a.m., New York City
time, on the due date for any installment of interest, all payments so due, which payments shall be
in immediately available funds on the date of such Maturity Date or due date, as the case may be.

     SECTION 10.02 Maintenance of Offices or Agencies.

     The Company shall maintain in an office or agency where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment or for conversion or
repurchase and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency not designated or appointed by
the Trustee. 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.

     The Company may at any time and from time to time vary or terminate the appointment of any
such agent or appoint any additional agents for any or all of such purposes; provided, however,
that until all of the Notes have been delivered to the Trustee for cancellation, or moneys
sufficient to pay the principal of and interest on the Notes have been made available for payment
and either paid or returned to the Company pursuant to the provisions of Section 10.05, the Company
shall maintain an office or agency where Notes may be presented or surrendered for payment and
conversion, where Notes may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company shall give prompt written notice to the Trustee, and notice to the Holders in
accordance with Section 1.07, of the appointment or termination of any such agents and of the
location and any change in the location of any such office or agency.

     The Company hereby initially designates the Trustee as Paying Agent, Registrar, and Conversion
Agent, and the Corporate Trust Office of the Trustee as the office or agency of the Company for
each of the aforesaid purposes.

 

 

     SECTION 10.03 Existence.

     Subject to Section 7.01, the Company shall 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 shall not be required to preserve any such right or
franchise if the Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and that the loss thereof is not disadvantageous in any
material respect to the Holders.

     SECTION 10.04 Statement by Officers as to Default.

     The Company shall deliver to the Trustee, within 120 calendar days after the end of each
fiscal year, an Officer’s Certificate indicating whether or not, to the best of such signing
officer’s knowledge, any Default occurred during the previous fiscal year. The Company shall also
deliver to the Trustee, within 30 calendar days of becoming aware of any Default or any Event of
Default under this Indenture, an Officer’s Certificate specifying with particularity such Default
or Event of Default and further stating what action the Company has taken, is taking or proposes to
take with respect thereto.

     Any notice required to be given under this Section 10.04 shall be delivered to the Trustee at
its Corporate Trust Office.

     SECTION 10.05 Money for Note Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent, it will, on or before each due
date of the principal of or interest on any of the Notes, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal or 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, it will, prior to each due date of
the principal of or interest on any Notes, deposit with a Paying Agent a sum sufficient to pay such
amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent 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 10.05, that such Paying Agent will (i) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any
default by the Company (or any other obligor upon the Notes) in the making of any payment in
respect of the Notes, upon the written request of the Trustee, forthwith pay to the Trustee all
sums held in trust by such Paying Agent as such.

 

 

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     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 or interest on any Note and remaining unclaimed for two
years after such principal 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 Note shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money, and 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 Press Release, 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 10.06 Reports by Company

     (a) The Company shall file any documents or reports that it is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act with the Trustee within 15 calendar
days after the same are required to be filed with the Commission. Documents filed by the Company
with the Commission via the EDGAR system will be deemed filed with the Trustee as of the time such
documents are filed via EDGAR.

     (b) Delivery of such documents and reports to the Trustee is for informational purposes only,
and the Trustee’s receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively
rely exclusively on an Officer’s Certificate). Notwithstanding anything to the contrary in this
Section 10.06, the Company, to the extent permitted under the Trust Indenture Act, shall not be
required to deliver to the Trustee or the Holders any material for which the Company has sought and
received confidential treatment by the Commission.

 

 

     SECTION 10.07 Delivery of Certain Information

     At any time when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder of a Restricted Security or the holder of shares of Common Stock issued
upon conversion thereof, the Company will promptly furnish or cause to be furnished Rule 144A
Information (as defined below) to such Holder of Restricted Securities or such holder of shares of
Common Stock issued upon conversion of Restricted Securities, or to a prospective purchaser of any
such security designated by any such Holder or holder, as the case may be, to the extent required
to permit compliance by such Holder or holder with Rule 144A under the Securities Act (or any
successor provision thereto) in connection with the resale of any such security and to securities
analysts. “Rule 144A Information” shall be such information as is specified pursuant to Rule
144A(d)(4) under the Securities Act (or any successor provision thereto).

     SECTION 10.08 Registration Rights

     The Company agrees that the Holders from time to time of Registrable Securities (as defined
below) are entitled to the benefits of the Registration Rights Agreement.

     Whenever in this Indenture there is mentioned, in any context, the payment of interest on, or
in respect of, any Note, such mention shall be deemed to include mention of the payment of Special
Interest to the extent provided for in the Registration Rights Agreement, and express mention of
the payment of Special Interest (if applicable) in any provisions hereof shall not be construed as
excluding Special Interest in those provisions hereof where such express mention is not made.

     By its acceptance thereof, the Holder of Registrable Securities will have agreed to be bound
by the terms of the Registration Rights Agreement relating to the Registrable Securities which are
the subject of such election.

     If Special Interest is payable under the Registration Rights Agreement, the Company shall
deliver to the Trustee a certificate to that effect stating (i) the amount of Special Interest that
is payable and (ii) the date on which Special Interest is payable. Unless and until a Responsible
Officer of the Trustee receives at the Corporate Trust Office such a certificate, the Trustee may
assume without inquiry that no Special Interest is payable. If Special Interest has been paid by
the Company directly to the persons entitled to them, the Company shall deliver to the Trustee a
certificate setting forth the particulars of such payment.

 

 

ARTICLE 11

Repurchase of Notes

     SECTION 11.01 Right to Require Repurchase Upon a Designated Event.

     (a) If a Designated Event occurs at any time, then each Holder shall have the right, at such
Holder’s option, to require the Company to repurchase all of such Holder’s Notes or any portion of
the principal amount thereof that is equal to $1,000 or an integral multiple of $1,000, for cash on
the date (the “Designated Event Repurchase Date”) specified by the Company that is not less than 20
calendar days and not more than 35 calendar days after the date of the Designated Event Repurchase
Right Notice at a repurchase price equal to 100% of the principal amount thereof, together with
accrued and unpaid interest thereon (including Special Interest and Additional Interest, if any)
to, but excluding, the Designated Event Repurchase Date, unless such Designated Event Repurchase
Date falls after a Regular Record Date and on or prior to the corresponding Interest Payment Date,
in which case the Company shall pay the full amount of accrued and unpaid interest payable on such
Interest Payment Date to the Holder of record at the close of business on the corresponding Regular
Record Date (the “Designated Event Repurchase Price”).

          A “Designated Event” will be deemed to have occurred upon the occurrence of a Fundamental
Change or a Termination of Trading. A “Termination of Trading” will be deemed to have occurred if
shares of the Company’s Common Stock, or shares of any other Capital Stock or American Depositary
Receipts in respect of shares of Capital Stock into which the Notes are convertible pursuant to the
terms of this Indenture, are not listed for trading on any of the New York Stock Exchange, the
American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or any of
their respective successors).

     However, notwithstanding the foregoing, Holders shall not have the right to require the
Company to repurchase any Notes under this Section 11.01 based on a Fundamental Change described in
clause (1), (2) or (3) of the definition thereof (and the Company shall not be required to deliver
the Designated Event Repurchase Right Notice incidental thereto) if at least 90% of the
consideration paid for the Company’s Common Stock (excluding cash payments for fractional shares
and cash payments made pursuant to dissenters’ appraisal rights and cash dividends) in a merger or
consolidation or such other transaction otherwise constituting a Fundamental Change described in
clause (1) or (2) of the definition thereof consists of shares of Capital Stock or American
Depositary Receipts in respect of shares of Capital Stock traded on any of the New York Stock
Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market
(or any of their respective successors) (or that will be so traded or quoted immediately following
the completion of such merger or consolidation) and, as a result of the completion of such merger
or consolidation or such other transaction, the Notes become convertible into cash (in respect of

 

 

the Principal Portion, if the Company has not made the Full Share Settlement Election) and, if
applicable, such shares of such Capital Stock or such American Depositary Receipts.

     Repurchases of Notes under this Section 11.01 shall be made, at the option of the Holder
thereof, upon:

     (i) if the Notes are held in certificated form, delivery to the Trustee (or other
Paying Agent appointed by the Company) by a Holder of a duly completed notice (the
“Designated Event Repurchase Notice”) in the form set forth on the reverse of the Note or,
if the Notes are held in global form, a notice that complies with the Applicable
Procedures, prior to the close of business on the Business Day immediately preceding the
Designated Event Repurchase Date; and

     (ii) delivery or book-entry transfer of the Notes to the Trustee (or other Paying
Agent appointed by the Company) prior to the close of business on the Business Day
immediately preceding the Designated Event Repurchase Date (together with all necessary
endorsements) at the Corporate Trust Office of the Trustee (or other Paying Agent
appointed by the Company), such delivery being a condition to receipt by the Holder of the
Designated Event Repurchase Price therefor; provided that such Designated Event Repurchase
Price shall be so paid pursuant to this Section 11.01 only if the Note so delivered to the
Trustee (or other Paying Agent appointed by the Company) shall conform in all respects to
the description thereof in the related Designated Event Repurchase Notice.

     The Designated Event Repurchase Notice shall state:

     (A) if certificated, the certificate numbers of Notes to be delivered for
repurchase;

     (B) the portion of the principal amount of Notes to be repurchased, which
must be $1,000 or an integral multiple thereof; and

     (C) that the Notes are to be repurchased by the Company pursuant to the
applicable provisions of the Notes and this Indenture.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 11.01
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Designated Event Repurchase Date and the time of the book-entry transfer
or delivery of the Note.

     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Designated Event

 

 

Repurchase Notice or written notice of withdrawal thereof in accordance with the provisions of
subsection (c) of this Section 11.01.

     Any Note that is to be repurchased only in part shall be surrendered to the Trustee (with, if
the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Note without service charge, a
new Note or Notes, containing identical terms and conditions, each in an authorized denomination in
aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal
of the Note so surrendered.

     (b) After the occurrence of a Designated Event, but on or before the 10th calendar day after
the Effective Date of such Designated Event, the Company shall provide to all Holders of record of
the Notes and the Trustee and Paying Agent a notice (the “Designated Event Repurchase Right
Notice”) and issue a Press Release on the occurrence of such Designated Event and of the resulting
repurchase right, if any, at the option of the Holders arising as a result thereof.

     Each Designated Event Repurchase Right Notice and corresponding Press Release shall specify
(if applicable):

     (i) the events causing the Designated Event and whether such Designated Event also
constitutes a Fundamental Change;

     (ii) the date of the Designated Event;

     (iii) the last date on which a Holder may exercise the repurchase right;

     (iv) the Designated Event Repurchase Price, if applicable;

     (v) the Designated Event Repurchase Date, if applicable;

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

     (vii) the applicable Conversion Rate and any adjustments to the applicable Conversion
Rate;

     (viii) that the Notes with respect to which a Designated Event Repurchase Notice has
been delivered by a Holder may be converted only if the Holder withdraws the Designated
Event Repurchase Notice in accordance with the terms of this Indenture; and

 

 

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

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 11.01.

     (c) A Designated Event Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the Paying Agent in accordance with the Designated Event Repurchase Right
Notice at any time prior to the close of business on the Business Day prior to the Designated Event
Repurchase Date, specifying:

     (i) if certificated Notes have been issued, the certificate numbers of the withdrawn
Notes,

     (ii) the principal amount of the Note with respect to which such notice of withdrawal
is being submitted, and

     (iii) the principal amount, if any, of such Note that remains subject to the original
Designated Event Repurchase Notice, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000;

provided, however, that if the Notes are not in certificated form, the notice must comply with the
Applicable Procedures.

     (d) In connection with any repurchase of the Notes pursuant to this Section 11.01, the Company
shall

     (i) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer
rules under the Exchange Act that may then be applicable; and

     (ii) otherwise comply with all applicable federal and state securities laws.

     (e) On or prior to 11:00 a.m., New York City time, on the Designated Event Repurchase Date,
the Company shall deposit with the Trustee (or other Paying Agent appointed by the Company or if
the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided
in Section 10.03) an amount of money sufficient to repurchase on the Designated Event Repurchase
Date all of the Notes to be repurchased on such date at the Designated Event Repurchase Price.
Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed by the
Company), payment for Notes surrendered for repurchase (and not withdrawn) prior to the Designated
Event Expiration Time shall be made promptly after the later of (x) the Designated Event Repurchase
Date with respect to such Note (provided the Holder has satisfied the conditions to the payment of
the Designated Event Repurchase Price in this

 

 

Section 11.01), and (y) the time of book-entry transfer or the delivery of such Note to the
Trustee (or other Paying Agent appointed by the Company) by the Holder thereof in the manner
required by this Section 11.01. The Trustee shall, promptly after such payment and upon written
demand by the Company, return to the Company any funds in excess of the Designated Event Repurchase
Price.

     (f) If the Trustee (or other Paying Agent appointed by the Company) holds money sufficient to
repurchase on the Designated Event Repurchase Date all the Notes or portions thereof that are to be
purchased as of the Business Day following the Designated Event Repurchase Date, then on and after
the Designated Event Repurchase Date (i) such Notes shall cease to be outstanding, (ii) interest
shall cease to accrue on such Notes, and (iii) all other rights of the Holders of such Notes shall
terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been
delivered to the Trustee or Paying Agent, other than the right to receive the Designated Event
Repurchase Price upon delivery of the Notes.

ARTICLE 12

Conversion of Notes

     SECTION 12.01 Conversion Privilege and Conversion Rate.

     (a) Subject to the conditions described in clause (i), (ii), and (iii) below, and upon
compliance with the provisions of this Article 12, a Holder shall have the right, at such Holder’s
option, to convert all or any portion (if the portion to be converted is $1,000 in principal amount
or an integral multiple thereof) of any Notes at any time prior to the close of business on the
Scheduled Trading Day immediately preceding March 15, 2012, at a rate of 23.5114 shares of Common
Stock (subject to adjustment by the Company as provided in Section 12.01(e) and Section 12.05) per
$1,000 in principal amount of the Notes (the “Conversion Rate”) under the circumstances and during
the periods set forth below. On and after March 15, 2012 regardless of the conditions described in
clause (i), (ii) and (ii) below, and upon compliance with the provisions of this Article 12, a
Holder shall have the right, at such Holder’s option, to convert all or any portion (if the portion
to be converted is $1,000 in principal amount or an integral multiple thereof) of any Notes at the
applicable Conversion Rate at any time prior to the close of business on the third Scheduled
Trading Day immediately preceding the Maturity Date.

     (i) The Notes shall be convertible prior to March 15, 2012, during the five Business
Day period immediately after any five consecutive Trading Day period (the “Measurement
Period”) in which the Trading Price per $1,000 in principal amount of the Notes for each
Trading Day of such Measurement Period was less than 98% of the product of the Last
Reported Sale Price of the Common Stock on such Trading Day and the applicable Conversion
Rate in effect on such Trading Day (the “Trading Price Condition”) determined as set forth
below. If a

 

 

Holder provides the Company with reasonable evidence that the Trading Price per
$1,000 in principal amount of the Notes would be less than 98% of the product of (a) the
then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price at such
time, then the Company shall instruct the Trustee to determine the Trading Price of the
Notes beginning on the next Trading Day and on each successive Trading Day until the date
on which the Trading Price per Note is greater than or equal to 98% of the product of (a)
the then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price (as
provided to the Trustee by the Company on each such date). If the Trading Price Condition
has been met in accordance with the foregoing, the Company shall so notify the Holders of
the Notes and issue a Press Release. If, at any time after the Trading Price Condition
has been met in accordance with the foregoing, the Trading Price per $1,000 in principal
amount of the Notes is greater than 98% of the product of (a) the then-applicable
Conversion Rate of the Notes and (b) the Last Reported Sale Price on such date, the
Company shall so notify the Holders of the Notes and issue a Press Release, and the
Trustee shall have no further obligation to determine the Trading Price of the Notes
unless requested by the Company to do so again in writing pursuant to this Section 12.01.
Furthermore, if the Company does not, when obligated to do so pursuant to this clause (i),
instruct the Trustee to determine the Trading Price of the Notes, or if the Company so
instructs the Trustee, but the Trustee does not make such determination, then the Trading
Price per $1,000 in principal amount of the Notes shall be deemed to be less than 98% of
the product of (a) the then-applicable Conversion Rate of the Notes and (b) the Last
Reported Sale Price on such date.

     (ii) The Notes shall be convertible prior to March 15, 2012, during any calendar
quarter after the calendar quarter ending June 30, 2007 (and only during such calendar
quarter), if the Last Reported Sale Price of the Common Stock for twenty (20) or more
Trading Days in a period of thirty (30) consecutive Trading Days ending on the last
Trading Day of the immediately preceding calendar quarter exceeds 130% of the applicable
Conversion Price in effect on the last Trading Day of the immediately preceding calendar
quarter.

     (iii) The Notes shall be convertible prior to March 15, 2012, as provided in
subsections (b), (c) and (d) of this Section 12.01.

     (b) In the event that the Company elects to:

     (i) distribute to all or substantially all holders of Common Stock any rights or
warrants entitling them, for a period of not more than 45 calendar days after the record
date for such distribution, to subscribe for or purchase Common Stock at a price per share
less than the Last Reported Sale Price of the Common Stock for the Trading Day immediately
preceding the declaration date of such distribution; or

 

 

     (ii) distribute to all or substantially all holders of Common Stock, assets
(including cash) or debt securities of the Company or rights to purchase the Company’s
securities, which distribution has a per share value (as determined by the Board of
Directors) exceeding 15% of the Last Reported Sale Price of the Common Stock on the
Trading Day immediately preceding the date of declaration of such
distribution, then, in either case, Holders may surrender the Notes for conversion at any time on and
after the date that the Company provides the notice to such Holders and the Trustee
referred to in the next sentence until the earlier of 5:00 p.m., New York City time, on
the Business Day immediately preceding the Ex-Date for such distribution or the date the
Company announces that such distribution will not take place. The Company shall notify
Holders and the Trustee and issue a Press Release with respect to any distribution
referred to in either clause (i) or clause (ii) above and of the resulting conversion
right no later than the 25th Scheduled Trading Day prior to the Ex-Date for such
distribution. A Holder may not exercise this right if such Holder is permitted to
participate (as a result of holding the Notes, and at the same time as holders of the
Common Stock participate) in any distribution referred to in clause (i) or clause (ii)
above as if such Holder held a number of shares of Common Stock equal to the
then-applicable Conversion Rate, multiplied by the principal amount (expressed in
thousands) of Notes held by such Holder, without having to convert its Notes.

     (c) If the Company is a party to a combination, merger, recapitalization, reclassification,
binding-share exchange or other similar transaction or sale or conveyance of all or substantially
all of its properties and assets, in each case pursuant to which the Common Stock would be
converted into cash, securities and/or other property and that does not also constitute a
Designated Event, then the Holders shall have the right to convert Notes at any time beginning ten
Scheduled Trading Days prior to the date announced by the Company as the anticipated effective date of the transaction and ending on the 25th Scheduled Trading Day after the date that is the
effective date of such transaction. The Company shall notify Holders and the Trustee and issue a
Press Release at least ten Scheduled Trading Days prior to the anticipated effective date of any
such transaction. The Board of Directors shall determine the anticipated effective date of the
transaction, and such determination shall be conclusive and binding on the Holders.

     (d) If the Company is a party to any transaction or event described in clause (1) or (2) of
the definition of Fundamental Change, a Holder may surrender Notes for conversion at any time,
after the Company gives the notice referred to in the last sentence of this Section 12.01(d) and
issues a Press Release, from and after the effective date of such Fundamental Change until (i) the
related Designated Event Repurchase Date or (ii) if there is no such Designated Event Repurchase
Date, 25 Scheduled Trading Days following the effective date of such

 

 

transaction or event. If an event described in clause (3) or (4) of the definition of
Fundamental Change occurs or if a Termination of Trading occurs, a Holder may surrender Notes for
conversion at any time, after the Company gives the notice referred to in the last sentence in this
Section 12.01(d) and issues a Press Release, from and after the effective date of such event until
(i) the Designated Event Repurchase Date corresponding to such event or (ii) if there is no such
Designated Event Repurchase Date, 25 Scheduled Trading Days following the effective date of such
event. The Company shall notify, in the manner provided for in Section 1.07, each of the Holders
of the Fundamental Change and issue a Press Release, (i) no later than ten Scheduled Trading Days
prior to the anticipated Effective Date with respect to a transaction or event described in the
first sentence above or (ii) with respect to an event described in the second sentence of this
Section 12.01(d), on the Effective Date.

     (e) If a Holder elects to convert Notes in connection with a Fundamental Change described in
clauses (1), (2) and (4) of the definition of Fundamental Change that occurs prior to the Maturity
Date, the Conversion Rate applicable to each $1,000 in principal amount of Notes so converted shall
be increased by an additional number of shares of Common Stock (the “Additional Shares”) as
described below; provided, however that no increase shall be made in the case of a Fundamental
Change if at least 90% of the consideration for the Company’s Common Stock (excluding cash payments
for fractional shares and cash payments made pursuant to dissenters’ appraisal rights) in such
Fundamental Change consists of shares of Capital Stock or American Depositary Receipts in respect
of shares of Capital Stock traded on any of the New York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or any of their respective
successors) (or that will be so traded or quoted immediately following the transaction) and as a
result of such transaction or transactions the Notes become convertible into cash (in respect of
the Principal Portion, if the Company has not made the Full Share Settlement Election) and, if
applicable, such shares of such Capital Stock or such American Depositary Receipts. Settlement of
Notes tendered for conversion to which Additional Shares shall be added to the Conversion Rate as
provided in this subsection shall be settled pursuant to Section 12.02(d). For purposes of this
subsection (e), a conversion shall be deemed to be “in connection with” such Fundamental Change to
the extent that a Holder surrenders Notes for conversion on or after the 25th Scheduled Trading Day
prior to the date announced by the Company as the anticipated effective date of such Fundamental
Change until the related Designated Event Repurchase Date for such Fundamental Change (or, if there
is no such Designated Event Repurchase Date, until the 25th Scheduled Trading Day following such
effective date).

     (i) The number of Additional Shares shall be determined by the Company by reference
to the table attached as Schedule A hereto, based on the date on which the
Fundamental Change occurs or becomes effective (the “Effective Date”), and the Stock
Price; provided that if the actual Stock Price is between two Stock Price amounts in the
table or the

 

 

Effective Date is between two Effective Dates in the table, the number of Additional
Shares shall be determined by a straight-line interpolation between the number of
Additional Shares set forth for the next higher and next lower Stock Price amounts and the
two nearest Effective Dates, as applicable, based on a 365-day year; provided further that
if (1) the Stock Price is greater than $225.00 per share of Common Stock (subject to
adjustment in accordance with clause (ii) below), no adjustments will be made in the
Conversion Rate, and (2) the Stock Price is less than $32.10 per share (subject to
adjustment in accordance with clause (ii) below), no adjustments will be made in the
Conversion Rate. Notwithstanding the foregoing, in no event shall the Conversion Rate
exceed 31.1526 per $1,000 in principal amount of Notes (subject to adjustment in
the same manner as set forth in Section 12.05).

     (ii) The Stock Prices set forth in the first row of the tables in Schedule A
hereto shall be adjusted by the Company as of any date on which the Conversion Rate of the
Notes is adjusted (except pursuant to this Section 12.01(e)). The adjusted Stock Prices
shall equal the Stock Prices applicable immediately prior to such adjustment, multiplied
by a fraction, the numerator of which is the applicable Conversion Rate in effect
immediately prior to the adjustment giving rise to the Stock Price adjustment and the
denominator of which is the Conversion Rate as so adjusted. The number of Additional
Shares within the table shall be adjusted in the same manner as the Conversion Rate as set
forth in Section 12.05 (other than by operation of an adjustment to the Conversion Rate by
adding Additional Shares).

     SECTION 12.02 Exercise of Conversion Privilege.

     (a) (1) Subject to subsection (b) of this Section 12.02, the Company shall satisfy the
Conversion Obligation with respect to each $1,000 in principal amount of Notes tendered for
conversion in cash and shares of fully paid Common Stock, if applicable, by delivering, on or
before the third VWAP Trading Day immediately following the last VWAP Trading Day of the related
Observation Period, cash and shares of Common Stock, if any, equal to the sum of the Daily
Settlement Amounts for each of the 20 VWAP Trading Days during the related Observation Period;
provided that the Company shall deliver cash in lieu of fractional shares of Common Stock as
provided in Section 12.03; provided further, that should the Company make the Full Share Settlement
Election pursuant to clause (4) of this Section 12.02(a), the Company will delivery upon conversion
the applicable Conversion Rate on the Conversion Date, and the Observation Period will not be
applicable. The Daily Settlement Amounts shall be determined by the Company promptly following the
last VWAP Trading Day of the Observation Period.

          (2) If the Company elects to pay cash in lieu of delivering shares of Common Stock, the
Company shall notify, in the manner provided for in

 

 

Section 1.07, the Holder tendering a Notice of Conversion of the percentage of each share of Common
Stock issuable upon conversion that will be paid in cash in lieu of shares of Common Stock (the
“Cash Percentage”) at any time on or before the close of business on the Trading Date following the
Company’s receipt of the Notice of Conversion tendered by such Holder. In the event the Company
elects to settle in cash all or any portion of the shares of Common Stock issuable upon conversion
in connection with conversions of Notes within 30 Scheduled Trading Days prior to the Stated
Maturity of such Notes, the Company shall send, on or prior to the 30th Scheduled
Trading Date prior to the applicable Stated Maturity, a single notice for all such conversions to
the Trustee with respect to the Cash Percentage that will be paid in cash in lieu of shares of
Common Stock.

          (3) Notwithstanding the provisions described above in this subsection (a), in satisfaction of
the Conversion Obligation, the Company may direct the Conversion Agent to surrender, on or prior to
the commencement of the Observation Period (or, in the case of any surrender of Notes for
conversion after the Full Share Settlement Effective Date, promptly after receipt of a Notice of
Conversion), such Notes to a financial institution designated by the Company for exchange in lieu
of conversion. In order to accept Notes surrendered for conversion, the designated institution
must agree to deliver, in exchange for such Notes, all cash and, if applicable, the appropriate
number of shares of Common Stock equal to the consideration due upon conversion pursuant to this
Section 12.02, at the sole option of the designated financial institution and as is designated to
the Conversion Agent by the Company. By the close of business on the Trading Day immediately
preceding the start of the Observation Period, the Company shall notify, in the manner provided in
Section 1.07, the Holder surrendering Securities for conversion that the Company has directed the
designated financial institution to make an exchange in lieu of conversion and such financial
institution shall be required to notify the Conversion Agent whether it will deliver, upon
exchange, all cash or a combination of cash and shares of Common Stock. If the designated
institution accepts any such Notes, it will deliver cash and, if applicable, the appropriate number
of shares of Common Stock in accordance with Section 12.02(d). Any Notes exchanged by the
designated institution shall remain outstanding. If the designated institution agrees to accept any
Notes for exchange but does not timely deliver the related consideration, or if such designated
financial institution does not accept the Notes for exchange, the Company shall, no later than the
third Trading Day immediately following the last day of the related Observation Period, convert the
Notes into cash and, if applicable, the appropriate number of shares of Common Stock due upon
conversion pursuant to this Section 12.02.

          (4) Notwithstanding anything in this Indenture to the contrary, at any time during the
180-day period following the occurrence of an Accounting Event, but in no event later than November
15, 2011, the Company may, by giving notice to the Trustee and the Holders, irrevocably elect (the
“Full Share Settlement Election”) to satisfy the Company’s conversion obligations with respect to
Notes thereafter surrendered for conversion by utilizing the full share

 

 

settlement method described in this clause (4). If the Company makes the Full Share
Settlement Election, then all Notes surrendered for conversion on or after the date that is 10
Business Days following the delivery of the notice of such election (the “Full Share Election
Effective Date”) will be settled utilizing the full share settlement method. In order to make the
Full Share Settlement Election, the Company will give a notice to the Trustee and the Holders.
Promptly after making the election, the Company will issue a Press Release announcing that it has
made the Full Share Settlement Election.

          From and after the Full Share Election Effective Date, the Company will deliver to any Holder
surrendering a Note for conversion a number of shares of Common Stock equal to (i) the aggregate
principal amount of Notes to be converted, multiplied by (ii) the applicable Conversion Rate as of
the Conversion Date. The Company will not make any cash payment in respect of the Principal
Portion of Notes being converted, but the Company will pay cash for any fractional shares
(calculated on an aggregate basis for the Notes surrendered for conversion) based on the closing
sale price per share of the Company’s Common Stock on the Conversion Date applicable to such
conversion. The Company will deliver the shares of Common Stock issuable upon conversion and the
cash payment for any fractional shares payable pursuant to Section 12.04 no later than the third
Trading Day following the Conversion Date, except that such delivery will occur on the Maturity
Date (or if such date is not a Business Day, the next succeeding Business Day) in respect of any
conversion occurring on or after the 25th Scheduled Trading Day prior to the Maturity Date.

     (b) Notwithstanding subsection (a) of this Section 12.02, the Company shall satisfy the
Conversion Obligation with respect to each $1,000 in principal amount of Notes tendered for
conversion to which Additional Shares shall be added to the Conversion Rate as set forth in Section
12.01(e) pursuant to this clause (b); provided, (i) the Company may (subject to clause (a)(4)
above) elect to pay cash to Holders of Notes surrendered for conversion in lieu of all or a portion
of the shares of Common Stock issuable upon conversion of the Notes in satisfaction of the
Conversion Obligation pursuant to clause (2) of subsection (a) of this Section.

     (c) Before any Holder of a Note shall be entitled to convert the same as set forth above, such
Holder shall (1) in the case of a Global Note, comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such Holder is not entitled as set forth in subsection (i) of this Section
12.02 and, if required, pay all taxes or duties, if any, and (2) in the case of a Note issued in
certificated form, (A) complete and manually sign and deliver an irrevocable written notice to the
Conversion Agent in the form set forth under Section 2.03 (or a facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and shall state in writing therein the principal
amount of Notes to be converted and the name or names (with addresses) in which such Holder wishes
the certificate or certificates for any shares of Common Stock, if any, to be delivered upon

 

 

settlement of the Conversion Obligation to be registered, (B) surrender such Notes, duly
endorsed to the Company or in blank (and accompanied by appropriate endorsement and transfer
documents), at the office of the Conversion Agent, (C) if required, pay funds equal to interest
payable on the next Interest Payment Date to which such Holder is not entitled as set forth in
subsection (i) of this Section 12.02, and (D) if required, pay all taxes or duties, if any. As
used herein, “Conversion Date” shall mean the date that the Holder has complied with the
requirements set forth in this subsection (c).

     No Notice of Conversion with respect to any Notes may be tendered by a Holder thereof if such
Holder has also tendered a Designated Events Repurchase Notice and not validly withdrawn such
Designated Events Repurchase Notice in accordance with the applicable provisions of Section 11.01.

     If more than one Note shall be surrendered for conversion at one time by the same Holder, the
Conversion Obligation with respect to such Notes, if any, that shall be payable upon conversion
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof to the extent permitted thereby) so surrendered.

     (d) Delivery of the amounts owing in satisfaction of the Conversion Obligation shall be made
by the Company in no event later than the date specified in subsection (a) of this Section 12.02,
except to the extent specified in subsection (b) of this Section 12.02. The Company shall make such
delivery by paying the cash amount owed to the Holder of the Note surrendered for conversion, or
such Holder’s nominee or nominees, and, if applicable, by issuing, or causing to be issued, and
delivering to such Holder, or such Holder’s nominee or nominees, certificates or a book-entry
transfer through the Depositary for the number of full shares of Common Stock, if any, to which
such Holder shall be entitled as part of such Conversion Obligation (together with any cash in lieu
of fractional shares).

     (e) In case any Note shall be surrendered for partial conversion, the Company shall execute
and the Trustee shall, as provided in a Company Order, authenticate and deliver to or upon the
written order of the Holder of the Note so surrendered, without charge to such Holder, a new Note
or Notes in authorized denominations in an aggregate principal amount equal to the unconverted
portion of the surrendered Notes.

     (f) If a Holder submits a Note for conversion, the Company shall pay all documentary, stamp or
similar issue or transfer tax due, if any, which may be imposed by the United States or any
political subdivision thereof or taxing authority thereof or therein with respect to the issuance
of shares of Common Stock, if any, upon the conversion. However, the Holder shall pay any such tax
which is due because the Holder requests any shares of Common Stock to be issued in a name other
than the Holder’s name. The Company may refuse to deliver the certificates representing the shares
of Common Stock being issued in a name other than the Holder’s name until the Company receives a
sum sufficient to

 

 

pay any tax which will be due because the shares are to be issued in a name other than the
Holder’s name. Nothing herein shall preclude any tax withholding required by law or regulations.

     (g) Except as provided in Section 12.05, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Note as provided in this Article 12.

     (h) Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian at the
direction of the Trustee, shall make a notation on such Global Note as to the reduction in the
principal amount represented thereby. The Company shall notify the Trustee in writing of any
conversion of Notes effected through any Conversion Agent other than the Trustee.

     (i) Upon conversion, a Holder shall not receive any separate cash payment for accrued and
unpaid interest except as set forth below. The Company’s settlement of the Conversion Obligation as
described above shall be deemed to satisfy its obligation to pay the principal amount of the Note
and accrued and unpaid interest to, but not including, the Conversion Date. As a result, accrued
and unpaid interest (including Special Interest and Additional Interest, if any) on the Notes to,
but not including, the Conversion Date shall be deemed to be paid in full rather than cancelled,
extinguished or forfeited. Notwithstanding the preceding sentence, if Notes are converted after
5:00 p.m., New York City time, on a Regular Record Date, Holders of such Notes as of 5:00 p.m., New
York City time, on such Regular Record Date shall receive the interest payable on such Notes on the
corresponding Interest Payment Date notwithstanding the conversion. Notes 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 in cash equal to the interest payable, on such Interest Payment Date, on the Notes so
converted; provided, however, that no such payment need be made (i) if the Company has specified a
Designated Events Purchase Date that is after a Regular Record Date and on or prior to the
corresponding Interest Payment Date; (ii) to the extent of any overdue interest remains unpaid at
the time of conversion with respect to such Note; or (iii) with respect to any Conversion Date that
occurs during the period from the close of business on the Regular Record Date immediately
preceding the Maturity Date to the Maturity Date. Except as described above, no payment or
adjustment shall be made for accrued interest on converted Notes.

     SECTION 12.03 Restrictions on Conversion Rights.

     (a) Notwithstanding anything in this Indenture to the contrary, if, prior to March 15, 2012
(other than in connection with a Designated Event) (i) the Company is unable to comply with the
covenant set forth in Section 6.6 of the New Credit Facility or (ii) during the continuance of a
default or event of default under the New Credit Facility, Holders will not be entitled to receive
the cash

 

 

payments due upon conversion of the Notes. Any shares of the Company’s Common Stock due upon
any such conversion of the Notes (other than in connection with a Designated Event) will be
delivered as described herein but the cash payments due upon conversion will be deferred until the
earlier of (1) March 15, 2012 or (2) the date on which the New Credit Facility permits the payment.
In addition, additional interest (“Additional Interest”) will accrue on all Outstanding Notes if
any Note properly surrendered for conversion does not receive the cash payments due upon conversion
as a result of this Section 12.03(a) for a period of more than 30 VWAP Trading Days from the
applicable Conversion Date. Such Additional Interest will accrue at a rate equal to 0.25% of the
principal amount per annum of the Outstanding Notes from and after the 30th VWAP Trading
Day after the applicable Conversion Date to the date on which all payments have been made with
respect to all Notes that have been surrendered for conversion. This Additional Interest will be
in addition to any Special Interest provided for pursuant to the Registration Rights Agreement.

     The Company will provide a notice to Holders and issue a Press Release as reasonably as
practicable in the event cash payment of a Note is deferred pursuant to this Section 12.03.

     (b) Notwithstanding anything in this Indenture to the contrary, no Holder may exercise any
conversion right with respect to the Notes to the extent the receipt of the Common Stock
deliverable upon conversion of the Notes would (a) require prior regulatory approval by a state
insurance regulator and such approval has not been received or the receipt of such shares would
otherwise be prohibited under State laws, regulations and regulatory orders applicable to ownership
of shares (“Applicable State Laws”) or (b) cause the Holder or any person whose ownership position
would be aggregated with that of the Holder under any Applicable State Law to be subject to any
reporting or registration obligation or requirement under any Applicable State Law and such
obligation or requirement has not been satisfied.

     SECTION 12.04 Fractions of Shares.

     No fractional shares of Common Stock shall be issued upon conversion of any Note or Notes. If
more than one Note shall be surrendered for conversion at one time by the same Holder, the number
of full shares which shall be issuable upon conversion thereof shall be computed on the basis of
the aggregate principal amount of the Notes (or specified portions thereof) so surrendered. Instead
of any fractional share of Common Stock that would otherwise be issuable upon conversion of any
Note or Notes (or specified portions thereof), the Company shall calculate and pay a cash
adjustment in respect of such fraction (calculated to the nearest 1/100th of a share) in an amount
equal to the same fraction of the Daily VWAP of the Common Stock on the last VWAP Trading Day of
the relevant Observation Period.

 

 

     SECTION 12.05 Adjustment of Conversion Rate.

     The Conversion Rate shall be adjusted from time to time by the Company as follows; provided
that the Company shall not make any adjustments to the Conversion Rate if Holders of the Notes
participate (as a result of holding the Notes, and at the same time as holders of the Common Stock
participate) in any of the transactions described below as if such Holders held a number of shares
of Common Stock equal to the applicable Conversion Rate, multiplied by the principal amount
(expressed in thousands) of Notes held by such Holders, without having to convert their Notes:

     (a) In case the Company shall issue shares of Common Stock as a dividend or distribution on
shares of Common Stock, or shall effect a share split or share combination, the Conversion Rate
shall be adjusted based on the following formula:

	 	 	 	 	 	 	 
	 

	 	CR ́ = CR0 ×
	 	OS ́
 

OS0
	 	 

where,

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

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

OS0 = the number of shares of Common Stock outstanding immediately prior to the
Ex-Date for such dividend or distribution or immediately prior to the effective date of
such share split or combination, as the case may be; and

OS ́ = the number of shares of Common Stock outstanding as of the “Ex-Date” for such
dividend or distribution and immediately after giving effect to such dividend or
distribution or immediately after the effective date of such share split or combination,
as the case may be.

     Such adjustment shall become effective immediately prior to the opening of business on the
Ex-Date fixed for such dividend or distribution, or the effective date for such share split or
share combination. If any dividend or distribution of the type described in this Section 12.05(a)
is declared but not so paid or made, or the outstanding shares of Common Stock are not split or
combined, as the case may be, the Conversion Rate shall be immediately readjusted, effective as of
the date the Board of Directors determines not to pay such dividend or distribution, or split or
combine the outstanding shares of Common Stock, as the case may be, to

 

 

the Conversion Rate that would then be in effect if such dividend, distribution, share split
or share combination had not been declared.

     (b) In case the Company shall distribute to all or substantially all holders of its
outstanding shares of Common Stock any rights or warrants entitling them (for a period expiring not
more than 45 calendar days after the record date for such distribution) to subscribe for or
purchase shares of Common Stock at a price per share less than the Last Reported Sale Price of the
Common Stock on the Trading Day immediately preceding the declaration date of such distribution,
the Conversion Rate shall be adjusted based on the following formula:

	 	 	 	 	 	 	 
	 

	 	CR ́ = CR0 ×
	 	OS0 + X
 

OS0 + Y
	 	 

     where,

     CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
distribution;

     CR ́ = the Conversion Rate in effect immediately after the Ex-Date for such distribution;

     OS0 = the number of shares of Common Stock outstanding immediately prior to the
Ex-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 Common
Stock over the 10 consecutive Trading Day period ending on the Trading Day immediately
preceding the Ex-Date for such distribution.

     Such adjustment shall be successively made whenever any such rights or warrants are
distributed and shall become effective immediately prior to the opening of business on the Ex-Date
for such distribution. The Company shall not issue any such rights or warrants in respect of
shares of the Common Stock held in treasury by the Company. To the extent that shares of the
Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate
shall be readjusted to the Conversion Rate that would then be in effect had the adjustments made
upon the issuance of such rights or warrants been made on the basis of delivery of only the number
of shares of Common Stock actually delivered. If such rights or warrants are not so issued, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if
such Ex-Date for such distribution had not been fixed.

 

 

     In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Price, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to be determined by the
Board of Directors.

     (c) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of its Common Stock shares of any class of Capital Stock of the Company, evidences of
its Indebtedness or other assets or property of the Company (including securities, but excluding
dividends and distributions covered by subsection (a), (b) or (d) of this Section 12.05 and
distributions described below in this subsection (c) with respect to Spin-Offs) (any of such shares
of Capital Stock, Indebtedness, or other asset or property hereinafter in this subsection (c)
called the “Distributed Property”), then, in each such case the Conversion Rate shall be adjusted
based on the following formula:

	 	 	 	 	 	 	 
	 

	 	CR ́ = CR0 ×
	 	SP0
 

SP0 - FMV
	 	 

where,

CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
distribution;

CR ́ = the Conversion Rate in effect immediately after the Ex-Date for such distribution;

SP0 = the average of the Last Reported Sale Prices of Common Stock over the ten
(10) consecutive Trading Day period ending on the Trading Day immediately preceding the
Ex-Date for such distribution; and

FMV = the fair market value as determined by the Board of Directors of the Distributed
Property with respect to each outstanding share of Common Stock on the Ex-Date for such
distribution.

     Such adjustment shall become effective immediately prior to the opening of business on the
Ex-Date for such distribution; provided that if “FMV” as set forth above is equal to or greater
than “SP0” as set forth above, in lieu of the foregoing adjustment, adequate provision
shall be made so that each Holder of Notes has the right to receive, for each $1,000 in principal
amount of Notes, the amount of Distributed Property such Holder would have received had such Holder
owned a number of shares of Common Stock equal to the Conversion Rate on the Ex-Date for such
distribution, without being required to convert the Notes. If such distribution is not so paid or
made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in
effect if such dividend or

 

 

distribution had not been declared. If the Board of Directors determines “FMV” for purposes
of this Section 12.05(c) by reference to the actual or when issued trading market for any
securities, it must in doing so consider the prices in such market over the same period used in
computing the Last Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on the Trading Day immediately preceding the Ex-Date for such distribution.

     With respect to an adjustment pursuant to this subsection (c) where there has been a payment
of a dividend or other distribution on the Common Stock or 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
10th Trading Day immediately following, and including, the effective date of the Spin-Off shall be
increased based on the following formula:

	 	 	 	 	 	 	 
	 

	 	CR ́ = CR0 ×
	 	FMV0 + MP0
 

MP0
	 	 

Where,

CR0 = the Conversion Rate in effect immediately prior to the 10th Trading Day
immediately following the effective date of the Spin-Off;

CR ́ = the Conversion Rate in effect immediately after the 10th Trading Day immediately
following 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 the 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 on the 10th Trading Day from, and including, the effective date of
the Spin-Off; provided that in respect of any conversion within the 10 Trading Days immediately
following, and including, the effective date of any Spin-Off, references with respect to the
Spin-Off 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 Conversion Date in determining the
applicable Conversion Rate; provided further that, for any conversion prior to the Full Share
Election Effective Date, if any, within the first four Trading Days following the effective date of
such Spin-Off (if such Trading Days are also VWAP Trading Days), references to 10 Trading Days
shall be deemed replaced with four Trading Days.

 

 

     Rights or warrants distributed by the Company to all holders of Common Stock, entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital Stock, including
Common Stock (either initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with
such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of
future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this
Section 12.05 (and no adjustment to the Conversion Rate under this Section 12.05 shall be required)
until the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under this subsection (c). If any such rights or warrants are subject
to events, upon the occurrence of which such rights or warrants become exercisable to purchase
different securities, evidences of Indebtedness or other assets, then the date of the occurrence of
any and each such event shall be deemed to be the date of distribution and record date with respect
to new rights or warrants with such rights (and a termination or expiration of the existing rights
or warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section 12.05 was made, (1) in the case of any such rights or warrants that shall all have
been redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall have expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been issued.

     For purposes of this subsection (c) and subsections (a) and (b) of this Section 12.05, any
dividend or distribution to which this subsection (c) is applicable that also includes shares of
Common Stock to which subsection (a) of this Section 12.05 applies or rights or warrants to
subscribe for or purchase shares of Common Stock to which subsection (a) or (b) of this Section
12.05 applies (or both), shall be deemed instead to be (1) a dividend or distribution of the
evidences of Indebtedness, assets or shares of Capital Stock other than such shares of Common Stock
or rights or warrants, to which this subsection (c) applies (and any Conversion Rate adjustment
required by this subsection (c) with respect to such dividend or distribution shall then be made)
immediately followed by (2) a dividend or distribution of such shares of Common Stock or such
rights or warrants (and any further Conversion Rate adjustment required by subsections (a)

 

 

and (b) of this Section 12.05 with respect to such dividend or distribution shall then be
made), except (A) the Ex-Date of such dividend or distribution shall under this subsection (c) be
substituted as “the Ex-Date” within the meaning of subsection (a) and subsection (b) and (B) any
shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding
immediately prior to the Ex-Date for such dividend or distribution or immediately prior to the
effective date of such share split or combination, as the case may be” within the meaning of
subsection (a) or “outstanding immediately prior to the Ex-Date for such distribution” within the
meaning of subsection (b).

     (d) In case the Company shall pay any cash dividends or distributions to all or substantially
all holders of its Common Stock, the Conversion Rate shall be adjusted based on the following
formula:

	 	 	 	 	 	 	 
	 

	 	CR ́ = CR0 ×
	 	SP0 
 

SP0 - C
	 	 

where,

CR0 = the Conversion Rate in effect immediately prior to the Ex-Date for such
distribution;

CR ́ = the Conversion Rate in effect immediately after the Ex-Date for such distribution;

SP0 = the Last Reported Sale Price of Common Stock on the Trading Day
immediately preceding the Ex-Date for such distribution; and

C = the amount in cash per share the Company distributes to holders of Common Stock in
such distribution.

     Such adjustment shall become effective immediately prior to the opening of business on the
Ex-Date for such dividend or distribution; provided that if the portion of the cash so distributed
applicable to one share of the Common Stock is equal to or greater than SP0 as set forth
above, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder of
Notes shall receive on the date on which such cash dividend is distributed to holders of Common
Stock, for each $1,000 in principal amount of Notes, the amount of cash such Holder would have
received had such Holder owned a number of shares equal to the Conversion Rate on the Ex-Date for
such distribution, without being required to convert the Notes. If such dividend or distribution is
not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.

     For the avoidance of doubt, for purposes of this subsection (d), in the event of any
reclassification of the Common Stock, as a result of which the Notes become convertible into more
than one class of Common Stock, if an adjustment

 

 

to the Conversion Rate is required pursuant to this subsection (d), references in this Section
12.05 to one share of Common Stock or Last Reported Sale Price of one share of Common Stock shall
be deemed to refer to a unit or to the price of a unit consisting of the number of shares of each
class of Common Stock into which the Notes are then convertible equal to the numbers of shares of
such class issued in respect of one share of Common Stock in such reclassification. The above
provisions of this paragraph shall similarly apply to successive reclassifications.

     (e) In case the Company or any of its Subsidiaries make a payment in respect of a tender offer
or exchange offer for all or any portion of the 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
shall be increased based on the following formula:

	 	 	 	 	 	 	 
	 

	 	CR ́ = CR0 ×
	 	AC + (SP ́ × OS ́)
 

OS0 × SP ́
	 	 

where,

CR0 = the Conversion Rate in effect on the date such tender or exchange offer
expires;

CR ́ = the Conversion Rate in effect on the day next succeeding the date such tender or
exchange offer expires;

AC = the aggregate value of all cash and any other consideration as determined by the
Board of Directors paid or payable for shares purchased in such tender or exchange offer;

OS0 = the number of shares of Common Stock outstanding immediately prior to the
date such tender or exchange offer expires;

OS ́ = the number of shares of Common Stock outstanding immediately after the date such
tender or exchange offer expires (after giving effect to such tender offer or exchange
offer); and

SP’ = the Last Reported Sale Price of Common Stock on the Trading Day next succeeding the
date such tender or exchange offer expires.

     Such adjustment shall become effective immediately after close of business on the Trading Day
next succeeding the date such tender or exchange offer expires. If the Company or its Subsidiary is
obligated to purchase shares of Common Stock pursuant to any such tender or exchange offer, but the
Company or its Subsidiary is permanently prevented by applicable law from effecting all or any such
purchases or all or any portion of such purchases are rescinded, the Conversion Rate shall again be
adjusted to be the Conversion Rate that would

 

 

then be in effect if such tender or exchange offer had not been made or had only been made in
respect of the purchases that had been effected.

     If the application of any of the foregoing formulas (other than in respect of a share
combination) would result in a decrease in the Conversion Rate, no adjustment to the Conversion
Rate will be made.

     For purposes of this Section 12.05 the term “record date” shall mean, with respect to any
dividend, distribution or other transaction or event in which the holders of Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of shareholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

     (f) In addition to those required by subsections (a), (b), (c), (d) and (e) of this Section
12.05, and to the extent permitted by applicable law and the rules of the New York Stock Exchange
or any other securities exchange on which the Common Stock is then listed, the Company from time to
time may increase the applicable Conversion Rate by any amount for a period of at least 20 calendar
days if the Board of Directors determines (such determination will be conclusive) that such
increase would be in the Company’s best interest. Whenever the applicable Conversion Rate is
increased pursuant to the preceding sentence, the Company shall notify the Holder of each Note and
issue a Press Release at least 15 calendar days prior to the date the increased applicable
Conversion Rate takes effect, and such notice shall state the increased applicable Conversion Rate
and the period during which it will be in effect. In addition, the Company may also (but is not
required to) increase the applicable Conversion Rate to avoid or diminish any income tax to holders
of Common Stock or rights to purchase Common Stock in connection with any dividend or distribution
of shares (or rights to acquire shares) or similar event.

     (g) Except as described in Sections 12.01 and 12.05 of this Indenture, the Company will not
adjust the Conversion Rate. 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;

     (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 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 date of this Indenture;

     (iv) for a change in the par value of the Common Stock; or

     (v) for accrued and unpaid interest (including Special Interest and Additional
Interest, if any).

     (h) All calculations and other determinations under this Article 12 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be. No adjustment shall be made to the Conversion Rate unless such
adjustment would require a change of at least 1% in the Conversion Rate then in effect at such
time. The Company shall carry forward any adjustments that are less than 1% of the Conversion Rate
and make such carried forward adjustments, regardless of whether the aggregate adjustment is less
than 1% (1) annually, on the anniversary of the date of this Indenture, (2) upon a Designated Event
or (3) on the Maturity Date (and on each VWAP Trading Day of the 20 VWAP Trading Day Observation
Period beginning on the 22nd Scheduled Trading Day prior to the Maturity Date).

     (i) In any case in which this Section 12.05 provides that an adjustment shall become effective
immediately after (1) the Ex-Date for an event or (2) the last date on which tenders or exchanges
may be made pursuant to any tender or exchange offer pursuant to subsection (e) of this Section
12.05 (each an “Adjustment Determination Date”), the Company may elect to defer until the
occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the Holder of
any Note converted after such Adjustment Determination Date and before the occurrence of such
Adjustment Event, the additional cash and, if applicable, shares of Common Stock or other
securities issuable upon such conversion by reason of the adjustment required by such Adjustment
Event over and above the amounts deliverable upon such conversion before giving effect to such
adjustment and (y) paying to such Holder any amount in cash in lieu of any fraction pursuant to
Section 12.03. For purposes of this subsection (i), the term “Adjustment Event” shall mean:

     (i) in any case referred to in clause (1), the date any dividend or distribution of
Common Stock, shares of Capital Stock, evidences of Indebtedness, other assets or property
or cash is paid or made, the effective date of any share split or combination or the date
of expiration of any rights or warrants, and

     (ii) in any case referred to in clause (2), the date a sale or exchange of Common
Stock pursuant to such tender or exchange offer is consummated and becomes irrevocable.

 

 

     (j) For purposes of this Section 12.05, 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.

     (k) For the avoidance of doubt, if a Holder converts Notes prior to the effective date of a
Fundamental Change, and the Fundamental Change does not occur, the Holder shall not be entitled to
Additional Shares in connection with such conversion.

     (l) With respect to a conversion of Notes pursuant to this Article 12, at and after the close
of business on the last VWAP Trading Day (the “Relevant Date”) of the related Observation Period,
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 on such
Relevant Date; provided, however, that if any such shares of Common Stock constitute Additional
Shares, then the Relevant Date with respect to such shares that constitute Additional Shares shall
instead be deemed to be the later of (i) the last VWAP Trading Day of the related Observation
Period and (ii) the Effective Date of the Fundamental Change resulting in the Additional Shares. On
and after the Conversion Date with respect to a conversion of Notes pursuant hereto, all rights of
the Holders of such Notes shall terminate, other than the right to receive the consideration
deliverable upon conversion of such Notes as provided herein. A Holder of a Note is not entitled,
as such, to any rights of a holder of Common Stock until, if such Holder converts such Note and is
entitled pursuant hereto to receive shares of Common Stock in respect of such conversion, the close
of business on the Relevant Date or respective Relevant Dates, as the case may be, with respect to
such conversion.

     (m) Whenever any provision of this Article 12 requires a calculation of Last Reported Sale
Prices or Daily VWAP over a span of multiple days, the Company shall make appropriate adjustments
to the Daily Settlement Amounts (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-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 12.06 Notice of Adjustments of Conversion Rate.

     Whenever the Conversion Rate is adjusted as herein provided:

     (a) the Company shall compute the adjusted Conversion Rate in accordance with Section 12.05
and shall prepare an Officer’s Certificate signed by the Chief Financial Officer of the Company
setting forth the adjusted Conversion

 

 

Rate and showing in reasonable detail the facts upon which such adjustment is based, and such
certificate shall promptly be filed with the Trustee and with each Conversion Agent (if other than
the Trustee); and

     (b) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall be required, such notice shall be provided by the
Company to all Holders in accordance with Section 1.07.

     Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate or the information and calculations contained therein, except to
exhibit the same to any Holder of Notes desiring inspection thereof at its office during normal
business hours.

     SECTION 12.07 Company to Reserve Common Stock.

     The Company shall at all times reserve and keep available, free from preemptive rights, out of
its authorized but unissued Common Stock, for the purpose of effecting the conversion of Notes, the
full number of shares of Common Stock then issuable upon the conversion of all Outstanding Notes.

     SECTION 12.08 Taxes on Conversions.

     Except as provided in the next sentence, the Company shall pay all documentary, stamp or
similar issue or transfer tax due that may be payable in respect of the issue or delivery of shares
of Common Stock on conversion of Notes pursuant hereto. The Company shall not, however, be
required, and the Holder shall instead be required, to pay any tax or duty that may be payable in
respect of (i) income of the Holder, or (ii) any transfer involved in the issue and delivery of
shares of Common Stock in a name other than that of the Holder of the Note or Notes to be
converted, and no such issue or delivery shall be made unless and until the Person requesting such
issue has paid to the Company the amount of any such tax or duty, or has established to the
satisfaction of the Company that such tax or duty has been paid.

     SECTION 12.09 Certain Covenants.

     Before taking any action which would cause an adjustment reducing the Conversion Rate below
the then par value, if any, of the shares of Common Stock issuable upon conversion of the Notes,
the Company shall take all corporate action, if any, which it reasonably determines may be
necessary in order that the Company may validly and legally issue shares of such Common Stock at
such adjusted Conversion Rate.

     The Company covenants that all shares of Common Stock issued upon conversion of Notes shall be
fully paid and non-assessable by the Company and free from all liens created by the Company.

 

 

     The Company further covenants that if at any time the Common Stock shall be listed for trading
on any other national securities exchange the Company shall, if permitted and required by the rules
of such exchange, list and keep listed, so long as the Common Stock shall be so listed on such
exchange, all Common Stock issuable upon conversion of the Notes.

     SECTION 12.10 Cancellation of Converted Notes.

     All Notes delivered for conversion shall be delivered to the Trustee or its agent and canceled
by the Trustee as provided in Section 3.08.

     SECTION 12.11 Company Responsible for Making Calculations.

     Except as otherwise provided herein, the Company will be responsible for making all
calculations required under the Notes and this Indenture. The Company will make these calculations
in good faith and absent manifest error, these calculations will be final and binding on the
Holders. The Company will provide a schedule of such calculations to each of the Trustee and the
Conversion Agent, and each of the Trustee and the Conversion Agent is entitled to conclusively rely
upon the accuracy of such calculations without independent verification. The Trustee will forward
the Company’s calculations to any Holder upon the written request of such Holder.

     SECTION 12.12 Provision in Case of Effect of Reclassification, Consolidation, Merger or Sale.

     If any of the following events occur, namely (i) any Fundamental Change described in clause
(2) of the definition of Fundamental Change, (ii) any reclassification or change of the outstanding
shares of Common Stock (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a split, subdivision or combination), (iii) any
consolidation, binding share exchange, recapitalization, reclassification, merger, combination or
other similar event, or (iv) any sale or conveyance of all or substantially all of the property and
assets of the Company to any other Person, in any case as a result of which holders of Common Stock
shall be entitled to receive cash, securities or other property or assets with respect to or in
exchange for their shares of Common Stock (any such event described in clauses (i) through (iv) a
“Merger Event”), then:

     (a) the Company or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force
at the date of execution of such supplemental indenture if such supplemental indenture is then
required to so comply) permitted under Section 8.01(f) providing for the conversion and settlement
of the Notes as set forth in this Indenture. Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Article 12 and the Trustee may

 

 

conclusively rely on the determination by the Company of the equivalency of such adjustments.
If, in the case of any Merger Event, the Reference Property includes shares of stock or other
securities and assets of a company other than the successor or purchasing company, as the case may
be, in such change of control, consolidation, binding share exchange, recapitalization,
reclassification, merger, combination, sale or conveyance or Fundamental Change described in clause
(2) of the definition of Fundamental Change, then such supplemental indenture shall also be
executed by such other company and shall contain such additional provisions to protect the
interests of the Holders of the Notes as the Board of Directors shall reasonably consider necessary
by reason of the foregoing, including to the extent required by the Board of Directors and
practicable the provisions providing for the repurchase rights set forth in Article 11.

     In the event a supplemental indenture is executed pursuant to this Section 12.11, the Company
shall promptly file with the Trustee an Officer’s Certificate briefly stating the reasons
therefore, the kind or amount of cash, securities, property or assets that will constitute the
Reference Property after any such Merger Event, any adjustment to be made with respect thereto and
that all conditions precedent have been complied with, and shall promptly mail notice thereof to
all Holders.

     If any securities to be provided for the purpose of conversion of Notes hereunder require
registration with or approval of any governmental authority under any federal or state law before
such securities may be validly issued upon conversion, each supplemental indenture executed
pursuant to this Section 12.11 shall provide that the Company or the successor or the purchasing
Person, as the case may be, or if the Reference Property includes shares of stock or other
securities and assets of a company other than the successor or purchasing company, as the case may
be, then such company, shall use all commercially reasonable efforts, to the extent then permitted
by the rules and interpretations of the Commission (or any successor thereto), to secure such
registration or approval in connection with the conversion of Notes.

     (b) Notwithstanding the provisions of Section 12.02(a) and Section 12.02(b), and subject to
the provisions of Section 12.01, at the effective time of such Merger Event, the right to convert
each $1,000 in principal amount of Notes shall be changed to a right to convert such Notes by
reference to the kind and amount of cash, securities, other property or assets that a holder of a
number of shares of Common Stock equal to the Conversion Rate immediately prior to such transaction
would have owned or been entitled to receive (the “Reference Property”) such that from and after
the effective time of such transaction, a Holder shall be entitled thereafter to convert its Notes
into cash (if the Company has not made the Full Share Settlement Election) and, in lieu of Common
Stock, if any, the same type (and in the same proportion) of Reference Property, based on the Daily
Settlement Amounts of Reference Property in an amount equal to the applicable Conversion Rate, as
described under Section 12.02(a). For purposes of determining the constitution of Reference
Property, the type and amount of

 

 

consideration that a holder of Common Stock would have been entitled to in the case of change
of controls, consolidations, binding share exchanges, recapitalizations, reclassifications,
mergers, combinations, sales or transfers of assets or Fundamental Changes described in clause (2)
of the definition of Fundamental Change or other transactions that cause the 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) shall be deemed to be the (i) weighted average of the
types and amounts of consideration received by the holders of Common Stock that affirmatively make
such an election or (ii) if no holders of Common Stock affirmatively make such election, the types
and amounts of consideration actually received by such holders. The Company shall not become a
party to any such transaction unless its terms are consistent with the preceding. None of the
foregoing provisions shall affect the right of a Holder of Notes to convert its Notes in accordance
with the provisions of this Article 12 prior to the effective date.

     (c) The Company shall cause notice of the execution of such supplemental indenture to be
mailed to each Holder, at his address appearing on the Register provided for in this 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 12.11 shall similarly apply to successive Merger
Events.

     SECTION 12.13 Responsibility of Trustee for Conversion Provisions.

The Trustee and any Conversion Agent shall not at any time be under any duty or responsibility to
any Holder of Notes to determine whether any facts exist which may require any adjustment of the
Conversion Rate, or with respect to the nature or extent of any such adjustment when made, or with
respect to the method employed, herein or in any supplemental indenture provided to be employed, in
making the same, or whether a supplemental indenture need be entered into. Neither the Trustee nor
any Conversion Agent shall be accountable with respect to the validity or value (or the kind or
amount) of any Common Stock, or of any other securities or property or cash, which may at any time
be issued or delivered upon the conversion of any Notes; and it or they do not make any
representation with respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Company to make or calculate any cash payment or to issue,
transfer or deliver any shares of Common Stock or share certificates or other securities or
property or cash upon the surrender of any Note for the purpose of conversion; and the Trustee and
any Conversion Agent shall not be responsible for any failure of the Company to comply with any of
the covenants of the Company contained in this Article 12. 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 provision contained in any
supplemental indenture entered into pursuant to Section 8.01 relating either to the

 

 

kind or amount
of shares of stock or securities or other property or assets (including cash) receivable for
Holders upon the conversion of Notes after any event referred to in Section 12.12 or to any
adjustment to be made with respect thereto, but, subject to the provisions of Section 6.03, may
accept as conclusive evidence of the correctness of any such provisions, and shall be protected in
relying upon, the Officer’s Certificate (which the Company shall be obligated to file with the
Trustee prior to the execution of any such supplemental indenture) with respect thereto. Neither
the Trustee nor any Conversion Agent shall be responsible for determining whether any event
contemplated by Section 12.12 has occurred which makes the securities eligible for conversion until
the Company has delivered to the Trustee and any Conversion Agent an Officer’s Certificate stating
that such event has occurred, on which Officer’s Certificate the Trustee and any such Conversion
Agent may conclusively rely, and the Company agrees to deliver such Officer’s Certificate to the
Trustee and any such Conversion Agent immediately after the occurrence of any such event.

 

     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 all as
of the day and year first above written.

	 	 	 	 	 
	 	AMERIGROUP CORPORATION

 	 
	 	By:  	 /s/
James W. Truess	 
	 	 	Name:  	 James W. Truess	 
	 	 	Title:  	 Executive Vice President and Chief
Financial Officer	 
	 
	 	THE BANK OF NEW YORK,

as Trustee

 	 
	 	By:  	 /s/
Beata Hryniewicka	 
	 	 	Name:  	 Beata Hryniewicka	 
	 	 	Title:  	 Assistant Vice President	 
	 

96

 

SCHEDULE A

     The following table sets forth the hypothetical “Stock Price,” “Effective Date” and the
adjustments to the Conversion Rate, expressed as a number of Additional Shares by which the
Conversion Rate shall be increased in the event of a Fundamental Change, in accordance with the
Indenture:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective Date	 	$	 32.10	 	 	$	 33.00	 	 	$	35.00	 	 	$	37.50	 	 	$	40.00	 	 	$	45.00	 	 	$	50.00	 	 	$	75.00	 	 	$	100.00	 	 	$	150.00	 	 	$	225.00	 
	March 28, 2007
	 	 	7.6412	 	 	 	7.2286	 	 	 	6.4061	 	 	 	5.5493	 	 	 	4.8438	 	 	 	3.7669	 	 	 	3.0011	 	 	 	1.2587	 	 	 	0.6981	 	 	 	0.3069	 	 	 	0.1140	 
	May 15, 2008
	 	 	7.6357	 	 	 	7.1828	 	 	 	6.2951	 	 	 	5.3770	 	 	 	4.6280	 	 	 	3.5017	 	 	 	2.7190	 	 	 	1.0426	 	 	 	0.5604	 	 	 	0.2471	 	 	 	0.0931	 
	May 15, 2009
	 	 	7.5185	 	 	 	7.0292	 	 	 	6.0745	 	 	 	5.0956	 	 	 	4.3059	 	 	 	3.1410	 	 	 	2.3552	 	 	 	0.8043	 	 	 	0.4220	 	 	 	0.1914	 	 	 	0.0758	 
	May 15, 2010
	 	 	7.3606	 	 	 	6.8176	 	 	 	5.7644	 	 	 	4.6969	 	 	 	3.8497	 	 	 	2.6368	 	 	 	1.8583	 	 	 	0.5218	 	 	 	0.2701	 	 	 	0.1278	 	 	 	0.0498	 
	May 15, 2011
	 	 	7.2102	 	 	 	6.5734	 	 	 	5.3446	 	 	 	4.1183	 	 	 	3.1713	 	 	 	1.8924	 	 	 	1.1570	 	 	 	0.2339	 	 	 	0.1345	 	 	 	0.0698	 	 	 	0.0304	 
	May 15, 2012
	 	 	7.6412	 	 	 	6.7916	 	 	 	5.0600	 	 	 	3.1553	 	 	 	1.4886	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000exv4w2

 

Exhibit 4.2

AMERIGROUP Corporation

2.00% Convertible Senior Notes due 2012

Registration Rights Agreement

March 28, 2007

Goldman, Sachs & Co.,

As representatives of the several Purchasers

           named in Schedule I to the Purchase Agreement

85 Broad Street

New York, New York 10004

Ladies and Gentlemen:

     AMERIGROUP Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to
the Purchasers (as defined herein) upon the terms set forth in the Purchase Agreement (as defined
herein) its 2.00% Convertible Senior Notes due 2012 (the “Securities”). As an inducement to the
Purchasers to enter into the Purchase Agreement and in satisfaction of a condition to the
obligations of the Purchasers thereunder, the Company agrees with the Purchasers for the benefit of
Holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as
follows:

     1. Definitions.

     (a) Capitalized terms used herein without definition shall have the meanings ascribed to them
in the Purchase Agreement. As used in this Agreement, the following defined terms shall have the
following meanings:

     “Affiliate” of any specified person means any other person which, directly or indirectly, is
in control of, is controlled by, or is under common control with such specified person. For
purposes of this definition, control of a person means the power, direct or indirect, to direct or
cause the direction of the management and policies of such person whether by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Closing Date” means the First Time of Delivery as defined in the Purchase Agreement.

     “Commission” means the United States Securities and Exchange Commission, or any other federal
agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant
statute for the particular purpose.

     “Common Stock” means the Company’s common stock, par value $0.01 per share.

 

 

     “DTC” means The Depository Trust Company.

     “Effective Failure” has the meaning assigned thereto in Section 7(b) hereof.

     “Effectiveness Period” has the meaning assigned thereto in Section 2(b)(i) hereof.

     “Effective Time” means the time at which the Commission declares the Shelf Registration
Statement effective or at which the Shelf Registration Statement otherwise becomes effective.

     “EDGAR” has the meaning assigned thereto in Section 3(b) hereof.

     “Electing Holder” has the meaning assigned thereto in Section 3(a)(iii) hereof.

     “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     “Holder” means any person that is the record owner of Registrable Securities (and includes any
person that has a beneficial interest in any Registrable Security in book-entry form).

     “Indemnified Person” has the meaning assigned thereto in Section 5(a).

     “Indenture” means the Indenture, dated as of March 28, 2007, between the Company and The Bank
of New York, as amended and supplemented from time to time in accordance with its terms.

     “Issuer Free Writing Prospectus” has the meaning set forth in Rule 433 under the Securities
Act.

     “Liquidated Damages” has the meaning assigned thereto in Section 7(a) hereof.

     “Managing Underwriters” means the investment banker or investment bankers and manager or
managers that shall administer an underwritten offering, if any, conducted pursuant to Section 6
hereof.

     “NASD Rules” means the Rules of the National Association of Securities Dealers, Inc., as
amended from time to time.

     “Notice and Questionnaire” means a Notice of Registration Statement and Selling Securityholder
Questionnaire substantially in the form of Appendix A hereto.

     The term “person” means an individual, partnership, corporation, trust or unincorporated
organization, or a government or agency or political subdivision thereof.

     “Prospectus” means the prospectus (including, without limitation, any preliminary prospectus,
any final prospectus and any prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule 430A under the Securities Act) included in the Shelf Registration Statement, as amended or
supplemented by any prospectus supplement with respect to the terms of the offering of any

2

 

portion
of the Registrable Securities covered by the Shelf Registration Statement and by all other
amendments and supplements to such prospectus, including all material incorporated by reference in
such prospectus and all documents filed after the date of such prospectus by the Company under the
Exchange Act and incorporated by reference therein.

     “Purchase Agreement” means the purchase agreement, dated as of March 22, 2007, between the
Purchasers and the Company relating to the Securities.

     “Purchasers” means the Purchasers named in Schedule I to the Purchase Agreement.

     “Registrable Securities” means all or any portion of the Securities issued on the date hereof
(or pursuant to the exercise of the purchasers’ over-allotment option) under the Indenture in
registered form and the shares of common Stock issuable upon conversion of such Securities;
provided, however, that a security ceases to be a Registrable Security when it is no longer a
Restricted Security.

     “Registration Default” has the meaning assigned thereto in Section 7(a) hereof.

     “Restricted Security” means any Security or share of Common Stock issuable upon conversion
thereof except any such Security or share of Common Stock that (i) has been effectively registered
under the Securities Act and sold in a manner contemplated by the Shelf Registration Statement,
(ii) has been transferred in compliance with Rule 144 under the Securities Act (or any successor
provision thereto) or is transferable pursuant to paragraph (k) of such Rule 144 (or any successor
provision thereto) or (iii) has otherwise been transferred and a new Security or share of Common
Stock not subject to transfer restrictions under the Securities Act has been delivered by or on
behalf of the Company in accordance with Section 3.05 of the Indenture.

     “Rules and Regulations” means the published rules and regulations of the Commission
promulgated under the Securities Act or the Exchange Act, as in effect at any relevant time.

     “Securities Act” means the United States Securities Act of 1933, as amended.

     “Shelf Registration” means a registration effected pursuant to Section 2 hereof.

     “Shelf Registration Statement” means a “shelf” registration statement filed under the
Securities Act providing for the registration of, and the sale on a continuous or delayed basis by
the Holders of, the Registrable Securities pursuant to Rule 415 under the Securities Act and/or any
similar rule that may be adopted by the Commission, filed by the Company pursuant to the provisions
of Section 2 of this Agreement, including the Prospectus contained therein, any amendments and
supplements to such registration statement, including post-effective amendments, and all exhibits
and all material incorporated by reference in such registration statement.

     “Suspension Period” has the meaning assigned thereto in Section 2(c).

     “Trust Indenture Act” means the Trust Indenture Act of 1939, or any successor thereto, and the
rules, regulations and forms promulgated thereunder, as the same shall be amended from time to
time.

3

 

     The term “underwriter” means any underwriter of Registrable Securities in connection with an
offering thereof under a Shelf Registration Statement.

     (b) Wherever there is a reference in this Agreement to a percentage of the “principal amount”
of Registrable Securities or to a percentage of Registrable Securities, Common Stock constituting
Registrable Securities shall be treated as representing the principal amount of Securities that was
surrendered for conversion or exchange in order to receive such number of shares of Common Stock.

     2. Shelf Registration.

     (a) The Company shall use its commercially reasonable efforts to cause a Shelf Registration
Statement relating to the offer and sale of the Registrable Securities by the Holders from time to
time in accordance with the methods of distribution elected by such Holders and set forth in such
Shelf Registration Statement to be declared effective under the Securities Act no later than 180
calendar days following the Closing Date; provided, however, that the Company may, upon written
notice to all Holders, postpone having the Shelf Registration Statement declared effective for a
reasonable period not to exceed 90 days if the Company possesses material non-public information,
the disclosure of which would have a material adverse effect on the Company and its subsidiaries
taken as a whole; provided, further, however, that (i) no Holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement or to use the Prospectus forming a part
thereof for resales of Registrable Securities unless such Holder is an Electing Holder and (ii) no
distribution of Registrable Securities pursuant to such Shelf Registration Statement shall take the
form of an underwritten offering without the Company’s prior written agreement.

     (b) The Company shall use its commercially reasonable efforts:

     (i) to keep the Shelf Registration Statement continuously effective under the
Securities Act in order to permit the Prospectus forming a part thereof to be usable by
Holders until the earliest of (1) the sale of all Registrable Securities registered under
the Shelf Registration Statement; (2) the expiration of the period referred to in Rule
144(k) of the Securities Act, or any successor provision, with respect to all Registrable
Securities held by Persons that are not Affiliates of the Company; and (3) two years from
the Effective Time (such period being referred to herein as the “Effectiveness Period”);

     (ii) after the Effective Time of the Shelf Registration Statement, subject to Section
3(a)(ii) hereof, promptly upon the request of any Holder of Registrable Securities that is
not then an Electing Holder, to take any action reasonably necessary to enable such Holder
to use the Prospectus forming a part thereof for resales of Registrable Securities,
including, without limitation, any action necessary to identify such Holder as a selling
securityholder in the Shelf Registration Statement; and

     (iii) if at any time the Securities, pursuant to Article 12.12 of the Indenture, are
convertible into securities other than Common Stock, to cause, or to cause any successor
under the Indenture to cause, such securities to be included in the Shelf Registration
Statement no later than the later of (A) 180 calendar days following the

4

 

Closing Date and
(B) the date on which the Securities are convertible into such securities.

The Company shall be deemed not to have used its commercially reasonable efforts to keep the Shelf
Registration Statement effective during the requisite period if the Company voluntarily takes any
action that would result in Holders of Registrable Securities covered thereby not being able to
offer and sell any of such Registrable Securities during that period, unless such action is (A)
required by applicable law and the Company thereafter promptly complies with the requirements of
Section 3(j) hereof or (B) permitted pursuant to Section 2(c) below.

     (c) The Company may suspend the use of the Prospectus, without incurring any obligation to pay
Liquidated Damages, for a period not to exceed 45 days in any 90-day period or an aggregate of 90
days in any 12-month period (each a “Suspension Period”) if the Board of Directors of the Company
shall have determined in good faith that because of valid business reasons (not including avoidance
of the Company’s obligations hereunder), including the acquisition or divestiture of assets,
pending corporate developments, public filings with the Commission and similar events, it is in the
best interests of the Company to suspend such use, and prior to suspending such use the Company
provides the Holders with written notice of such suspension, which notice need not specify the
nature of the event giving rise to such suspension.

     3. Registration Procedures. In connection with the Shelf Registration Statement, the
following provisions shall apply:

     (a) (i) Not less than 30 calendar days prior to the Effective Time of the Shelf Registration
Statement, the Company shall mail the Notice and Questionnaire to the Holders of Registrable
Securities. No Holder shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement as of the Effective Time, and no Holder shall be entitled to use the
Prospectus forming a part thereof for resales of Registrable Securities at any time, unless such
Holder has returned a completed and signed Notice and Questionnaire to the Company by the date five
business days prior to such Effective Time; provided, however, Holders of Registrable Securities
shall have at least 20 calendar days from the date on which the Notice and Questionnaire is first
mailed to such Holders to return a completed and signed Notice and Questionnaire to the Company.

     (ii) After the Effective Time of the Shelf Registration Statement, the Company shall,
upon the request of any Holder of Registrable Securities that is not then an Electing
Holder, promptly send a Notice and Questionnaire to such Holder and thereafter the Company
will, within 30 days after the date such completed and signed Notice and Questionnaire has
been delivered to the Company, file a supplement to the Prospectus relating to the Shelf
Registration Statement, or, if required, file a post-effective amendment or a new Shelf
Registration Statement in order to permit resales of such Holder’s Registrable Securities;
provided, however, if the Company receives the Notice
and Questionnaire during a Suspension Period, or the Company initiates a Suspension Period
within 30 days after receipt of the applicable Notice and Questionnaire, then the Company
will make the required filing within 30 days after the end of the Suspension Period;
provided, further, however, in no event, will the Company be required to file more than one
supplement to the Prospectus per 30-day period in order to name as a selling

5

 

securityholder
any Holder that has provided the Company with a completed Notice and Questionnaire after the
deadline set forth in Section 3(a)(i) hereof to be included as a selling securityholder in
the initial Prospectus. If the Company files a post-effective amendment or a new Shelf
Registration Statement pursuant to the requirements of this Section 3(a)(ii), then it will
use reasonable efforts to cause the post-effective amendment or new Shelf Registration
Statement to become effective under the Securities Act as promptly as practicable, but in
any event by the 90th day after the filing date required by this Section 3(a)(ii); provided,
however, if a post-effective amendment or a new Shelf Registration Statement is required in
order to permit resales by Holders seeking to include Registrable Securities in the Shelf
Registration Statement after the Effective Time of the initial Shelf Registration Statement,
the Company will not be required to file more than one post-effective amendment or new Shelf
Registration Statement for such purpose in any 90-day period. For the avoidance of doubt
the Company shall not be required to take any action to name such Holder as a selling
securityholder in the Shelf Registration Statement or to enable such Holder to use the
Prospectus forming a part thereof for resales of Registrable Securities until such Holder
has returned a completed and signed Notice and Questionnaire to the Company.

     (iii) The term “Electing Holder” shall mean any Holder of Registrable Securities that
has returned a completed and signed Notice and Questionnaire to the Company in accordance
with Section 3(a)(i) or 3(a)(ii) hereof.

     (iv) Each Electing Holder agrees to furnish promptly to the Company all information
required to be disclosed in order to make information previously furnished to the Company by
the Holder not materially misleading and any other information regarding such Holder and the
distribution of such Holder’s Registrable Securities as the Company may from time to time
reasonably request in writing.

     (b) Unless such document is available on the Electronic Data Gathering Analysis and Retrieval
System of the Commission (“EDGAR”), the Company shall furnish to each Electing Holder upon request,
promptly after the Effective Time, a copy of the Shelf Registration Statement initially filed with
the Commission, and shall furnish to such Holders upon request, prior to the filing thereof with
the Commission, copies of each amendment thereto and each amendment or supplement, if any, to the
Prospectus included therein, and shall use its commercially reasonable efforts to reflect in each
such document, at the Effective Time or when so filed with the Commission, as the case may be, such
comments as such Holders and their respective counsel reasonably may propose.

     (c) The Company shall promptly take such action as may be necessary so that (i) each of the
Shelf Registration Statement and any amendment thereto and the Prospectus forming a part thereof
and any amendment or supplement thereto (and each report or other document incorporated therein by
reference in each case) complies in all material respects with
the Securities Act and the Exchange Act and the respective rules and regulations thereunder,
(ii) each of the Shelf Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading and (iii) each of
the Prospectus forming a part of the Shelf Registration Statement, and any amendment or supplement
to such Prospectus, does not at any time during the Effectiveness

6

 

Period include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that the Company shall not be required to take such action in respect of the
Shelf Registration Statement or any amendment thereto or of the Prospectus or any amendment or
supplement to the Prospectus during any Suspension Period.

     (d) The Company shall promptly advise each Electing Holder, and shall confirm such advice in
writing if so requested by any such Electing Holder:

     (i) when a Shelf Registration Statement and any amendment thereto has become effective
and the case of effectiveness of the initial Shelf Registration Statement (not including any
post-effective amendments thereto) by making a public announcement thereof by release made
to Reuters Economic Services and Bloomberg Business News;

     (ii) of the issuance by the Commission of any stop order suspending the effectiveness
of the Shelf Registration Statement or the initiation of any proceedings for such purpose;

     (iii) of the receipt by the Company of any notification with respect to the suspension
of the qualification of the securities included in the Shelf Registration Statement for sale
in any jurisdiction or the initiation of any proceeding for such purpose; and

     (iv) of the occurrence of any event or the existence of any state of facts that
requires the making of any changes in the Shelf Registration Statement or the Prospectus
included therein so that, as of such date, such Shelf Registration Statement and Prospectus
do not contain an untrue statement of a material fact and do not omit to state a material
fact required to be stated therein or necessary to make the statements therein (in the case
of the Prospectus, in light of the circumstances under which they were made) not misleading
(which advice shall be accompanied by an instruction to such Holders to suspend the use of
the Prospectus until the requisite changes have been made); provided, however, that no
notice by the Company shall be required pursuant to this clause (iv) in the event that the
Company either promptly files a Prospectus supplement to update the Prospectus or a Form 8-K
or other appropriate report that is incorporated by reference into the Shelf Registration
Statement, which, in either case, contains the requisite information that results in such
Shelf Registration Statement no longer containing any untrue statement of material fact or
omitting to state a material fact necessary to make the statements therein not misleading).

     (e) The Company shall use its commercially reasonable efforts to prevent the issuance, and if
issued to obtain the withdrawal at the earliest possible time, of any order
suspending the effectiveness of the Shelf Registration Statement or, if any such order of
suspension is made effective during or results in any Suspension Period, at the earliest
practicable moment after the end of such Suspension Period.

     (f) The Company shall furnish to each Electing Holder upon written request of such Holder,
without charge, at least one copy of the Shelf Registration Statement and all post-effective
amendments thereto, and, if such documents are not available on EDGAR, all reports,

7

 

schedules,
other documents and exhibits that are filed with or incorporated by reference in the Shelf
Registration Statement.

     (g) The Company shall, during the Effectiveness Period, deliver to each Electing Holder,
without charge, as many copies of the Prospectus (including each preliminary Prospectus) included
in the Shelf Registration Statement and any amendment or supplement thereto as such Electing Holder
may reasonably request in writing; and the Company consents (except during the periods specified in
Section 2(c) above or during the continuance of any event or the existence of any state of facts
described in Section 3(d)(ii), (iii) or (iv) above) to the use of the Prospectus and any amendment
or supplement thereto by each of the Electing Holders in connection with the offering and sale of
the Registrable Securities covered by the Prospectus and any amendment or supplement thereto during
the Effectiveness Period.

     (h) Prior to any offering of Registrable Securities pursuant to the Shelf Registration
Statement, the Company shall use its commercially reasonable efforts to (i) register or qualify or
cooperate with the Electing Holders and their respective counsel in connection with the
registration or qualification of such Registrable Securities for offer and sale under the
securities or “blue sky” laws of such jurisdictions within the United States as any Electing Holder
may reasonably request in writing, (ii) keep such registrations or qualifications in effect and
comply with such laws so as to permit the continuance of offers and sales in such jurisdictions for
so long as may be necessary to enable any Electing Holder or underwriter, if any, to complete its
distribution of Registrable Securities pursuant to the Shelf Registration Statement, (iii) take any
and all other actions reasonably necessary or advisable to enable the disposition in such
jurisdictions of such Registrable Securities, and (iv) obtain the consent or approval of each
governmental agency or authority, whether federal, state or local, which may be required to effect
the Shelf Registration or the offering or sale in connection therewith or to enable the selling
securityholders to offer, or to consummate the disposition of, their Registrable Securities;
provided, however, that in no event shall the Company be obligated to (A) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not otherwise be
required to so qualify but for this Section 3(h), (B) file any general consent to service of
process in any jurisdiction where it is not as of the date hereof so subject or (C) take any action
which would subject it to taxation in any such jurisdiction where it is not then so subject.

     (i) Unless any Registrable Securities shall be in book-entry or global certificate only form,
the Company shall use its commercially reasonable efforts to cooperate with the Electing Holders to
facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be sold pursuant to the Shelf Registration Statement, which certificates, if so required by any
securities exchange upon which any Registrable Securities are listed, shall be penned, lithographed
or engraved, or produced by any combination of such methods, on steel engraved borders, and which
certificates shall be free of any restrictive legends and in such
permitted denominations and registered in such names as Electing Holders may request in connection
with the sale of Registrable Securities pursuant to the Shelf Registration Statement.

     (j) Upon the occurrence of any event or the existence of any state of facts contemplated by
paragraph 3(d)(iv) above, the Company shall promptly prepare a post-effective amendment to any
Shelf Registration Statement or an amendment or supplement to the related Prospectus or file any
other required document so that, as thereafter delivered to purchasers of the Registrable
Securities included therein, the Prospectus will not include an untrue statement

8

 

of a material fact
or omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that the Company shall
not be required to take such action in respect of the Shelf Registration Statement or any amendment
thereto or of the Prospectus or any amendment or supplement to the Prospectus during any Suspension
Period. If the Company notifies the Electing Holders of the occurrence of any event or the
existence of any state of facts contemplated by Section 2(c) or paragraph 3(d)(iv) above, the
Electing Holder shall suspend the use of the Prospectus until the requisite changes to the
Prospectus have been made and shall keep confidential such communications received by it from the
Company.

     (k) Not later than the Effective Time of the Shelf Registration Statement, the Company shall
provide a CUSIP number for the Registrable Securities that are debt securities.

     (l) The Company shall use its commercially reasonable efforts to comply with all applicable
Rules and Regulations, and to make generally available to its securityholders as soon as
practicable, but in any event not later than eighteen months after (i) the effective date (as
defined in Rule 158(c) under the Securities Act) of the Shelf Registration Statement, (ii) the
effective date of each post-effective amendment to the Shelf Registration Statement, and (iii) the
date of each filing by the Company with the Commission of an Annual Report on Form 10-K that is
incorporated by reference in the Shelf Registration Statement, an earning statement of the Company
and its subsidiaries complying with Section 11(a) of the Securities Act and the rules and
regulations of the Commission thereunder (including, at the option of the Company, Rule 158).

     (m) Not later than the Effective Time of the Shelf Registration Statement, the Company shall
use its commercially reasonable efforts to cause the Indenture to be qualified under the Trust
Indenture Act; in connection with such qualification, the Company shall cooperate with the Trustee
under the Indenture and the Holders (as defined in the Indenture) to effect such changes to the
Indenture as may be required for such Indenture to be so qualified in accordance with the terms of
the Trust Indenture Act; and the Company shall execute, and shall use all reasonable efforts to
cause the Trustee to execute, all documents that may be required to effect such changes and all
other forms and documents required to be filed with the Commission to enable such Indenture to be
so qualified in a timely manner. In the event that any such amendment or modification referred to
in this Section 3(m) involves the appointment of a new trustee under the Indenture, the Company
shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture.

     (n) In the event of an underwritten offering conducted pursuant to Section 6 hereof, the
Company shall, if requested by Electing Holders in writing, promptly include or incorporate in
a Prospectus supplement or post-effective amendment to the Shelf Registration Statement such
information as the Managing Underwriters of such offering reasonably agree should be included
therein and to which the Company does not reasonably object and shall make all required filings of
such Prospectus supplement or post-effective amendment as soon as practicable after it is notified
of the matters to be included or incorporated in such Prospectus supplement or post-effective
amendment; provided, that in no event shall the Company be required to make any such filings during
any Suspension Period.

9

 

     (o) The Company shall enter into such customary agreements (including an underwriting
agreement in customary form in the event of an underwritten offering conducted pursuant to Section
6 hereof to which the Company has agreed) and take all other appropriate action in order to
expedite and facilitate the registration and disposition of the Registrable Securities, and in
connection therewith, if an underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures substantially identical to those set forth in Section 5
hereof with respect to all parties to be indemnified pursuant to Section 5 hereof.

     (p) The Company shall:

     (i)(A) make reasonably available for inspection during normal business hours by the
Electing Holders, any underwriter participating in any disposition pursuant to the Shelf
Registration Statement, and any attorney, accountant or other agent retained by such
Electing Holders or any such underwriter all relevant financial and other records, pertinent
corporate documents and properties of the Company and its subsidiaries, and (B) cause the
Company’s officers, directors and employees to supply all information reasonably requested
by such Electing Holders or any such underwriter, attorney, accountant or agent in
connection with the Shelf Registration Statement, in each case, as is customary for similar
due diligence examinations; provided, however, that such persons shall first agree in
writing with the Company that (X) all records, information and documents that are designated
by the Company, in good faith, as confidential shall be kept confidential by such Electing
Holders and any such underwriter, attorney, accountant or agent, unless such disclosure is
required to be made in connection with a court proceeding or required by law, or such
records, information or documents become available to the public generally or through a
third party without an accompanying obligation of confidentiality, (y) they shall use such
records, information and documents solely for the purposes of exercising rights under this
Agreement and they shall not engage in trading any securities of the Company until the
Company makes such material non-public information publicly available; and provided further
that, if the foregoing inspection and information gathering would otherwise disrupt the
Company’s conduct of its business, such inspection and information gathering shall, to the
greatest extent possible, be coordinated on behalf of the Electing Holders and the other
parties entitled thereto by one counsel designated by and on behalf of the Electing Holders
and other parties;

     (ii) in connection with any underwritten offering conducted pursuant to Section 6
hereof to which the Company has agreed, make such representations and warranties to the
Electing Holders participating in such underwritten offering and to the
Managing Underwriters, in form, substance and scope as are customarily made by the Company
to underwriters in primary underwritten offerings of equity and convertible debt securities
and covering matters substantially similar to, those set forth in the Purchase Agreement;

     (iii) in connection with any underwritten offering conducted pursuant to Section 6
hereof to which the Company has agreed, the Company shall use its commercially reasonable
efforts to obtain opinions and letters of counsel to the Company (which counsel and opinions
(in form, scope and substance) shall be

10

 

reasonably satisfactory to the Managing
Underwriters) addressed to each Electing Holder participating in such underwritten offering
and the underwriters, covering such matters as are customarily covered in opinions requested
in primary underwritten offerings of equity and convertible debt securities and such other
matters as may be reasonably requested by such Managing Underwriter (it being agreed that
the matters to be covered by such opinions and letters shall include, without limitation, a
statement by such counsel that nothing came to the attention of such counsel in the course
of their review of the Shelf Registration Statement and the Prospectus, including the
documents incorporated by reference therein (other than the financial statements or other
financial data therein, as to which such counsel need express no opinion or belief) that has
caused such counsel to believe that, as of the date of the opinion and as of the Effective
Time of the Shelf Registration Statement or most recent post-effective amendment thereto, as
the case may be, the Shelf Registration Statement or such post-effective amendment
containing any untrue statement of a material fact or the omission of any material fact
required to be stated therein or necessary to make the statements therein not misleading;

     (iv) in connection with any underwritten offering conducted pursuant to Section 6
hereof to which the Company has agreed, the Company shall use its commercially reasonable
efforts to obtain “cold comfort” letters and updates thereof from the independent public
accountants of the Company (and, if necessary, from the independent public accountants of
any subsidiary of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the Shelf Registration
Statement), addressed to each Electing Holder participating in such underwritten offering
(if such Electing Holder has provided such letter, representations or documentation, if any,
required for such cold comfort letter to be so addressed) and the underwriters, in customary
form and covering matters of the type customarily covered in “cold comfort” letters in
connection with primary underwritten offerings;

     (v) in connection with any underwritten offering conducted pursuant to Section 6 hereof
to which the Company has agreed, deliver such documents and certificates as may be
reasonably requested by the Electing Holders participating in such underwritten offering
they hold a majority in principal amount of the Registrable Securities being sold in such
and the Managing Underwriters, if any, including, without limitation, certificates to
evidence compliance with Section 3(j) hereof and with any conditions contained in the
underwriting agreement or other agreements entered into by the Company.

     (q) The Company will use its commercially reasonable efforts to cause the Common Stock
issuable upon conversion of the Securities to be listed on the New York Stock Exchange or other
stock exchange or trading system on which the Common Stock primarily trades on or prior to the
Effective Time of the Shelf Registration Statement hereunder.

     (r) In the event that any broker-dealer registered under the Exchange Act shall be an
"affiliate” (as defined in Rule 2720(b)(1) of the NASD Rules (or any successor provision thereto))
of the Company or has a “conflict of interest” (as defined in Rule 2720(b)(7) of the NASD Rules (or
any successor provision thereto)) and such broker-dealer shall underwrite,

11

 

participate as a member
of an underwriting syndicate or selling group or assist in the distribution of any Registrable
Securities covered by the Shelf Registration Statement, whether as a Holder of such Registrable
Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect
thereof, or otherwise, the Company shall assist such broker-dealer in complying with the
requirements of the NASD Rules, including, without limitation, by (A) engaging a “qualified
independent underwriter” (as defined in Rule 2720(b)(15) of the NASD Rules (or any successor
provision thereto)) to participate in the preparation of the registration statement relating to
such Registrable Securities, to exercise usual standards of due diligence in respect thereto and to
recommend the public offering price of such Registrable Securities, (B) indemnifying such qualified
independent underwriter to the extent of the indemnification of underwriters provided in Section 5
hereof, and (C) providing such information to such broker-dealer as may be required in order for
such broker-dealer to comply with the requirements of the NASD Rules.

     (s) The Company shall use its commercially reasonable efforts to take all other steps
necessary to effect the registration, offering and sale of the Registrable Securities covered by
the Shelf Registration Statement contemplated hereby.

     4. Registration Expenses. Except as otherwise provided in Section 3, the Company shall bear
all fees and expenses incurred in connection with the performance of its obligations under Sections
2, 3 and 6 hereof and shall bear or reimburse the Electing Holders for the reasonable fees and
disbursements, not to exceed $25,000, of a single counsel selected by a plurality of all Electing
Holders who own an aggregate of not less than 25% of the Registrable Securities covered by the
Shelf Registration Statement to act as counsel therefore in connection therewith. Each Electing
Holder shall pay all underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Electing Holder’s Registrable Securities pursuant to the Shelf
Registration Statement.

     5. Indemnification and Contribution.

     (a) Indemnification by the Company. Upon the registration of the Registrable Securities
pursuant to Section 2 hereof, the Company shall indemnify and hold harmless each Electing Holder
and each underwriter, selling agent or other securities professional, if any, which facilitates the
disposition of Registrable Securities, and each of their respective officers and directors and each
person who controls such Electing Holder, underwriter, selling agent or other securities
professional within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act (each such person being sometimes referred to as an “Indemnified Person”) against any losses,
claims, damages or liabilities, joint or several, to which such Indemnified
Person may become subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue
statement or alleged untrue statement of a material fact contained in any Shelf Registration
Statement under which such Registrable Securities were registered under the Securities Act, or any
Prospectus or any Issuer Free Writing Prospectus contained therein or furnished by the Company to
any Indemnified Person, or any amendment or supplement thereto, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and the Company hereby agrees to reimburse
such Indemnified Person for any legal or other expenses reasonably incurred by them in connection
with investigating or

12

 

defending any such action or claim as such expenses are incurred; provided,
however, that the Company shall not be liable to any such Indemnified Person in any such case to
the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in such Shelf
Registration Statement, Prospectus or Issuer Free Writing Prospectus, or amendment or supplement,
in reliance upon and in conformity with written information furnished to the Company by such
Indemnified Person expressly for use therein; and provided further, that the Company shall not be
liable pursuant to this Section 5 to the extent that it shall have been established that the sale
or transfer giving rise to such loss, claim, damage or liability shall have occurred during a
Suspension Period.

     (b) Indemnification by the Electing Holders and any Agents and Underwriters. Each Electing
Holder agrees, as a consequence of the inclusion of any of such Electing Holder’s Registrable
Securities in such Shelf Registration Statement, and each underwriter, selling agent or other
securities professional, if any, which facilitates the disposition of Registrable Securities shall
agree, as a consequence of facilitating such disposition of Registrable Securities, severally and
not jointly, to (i) indemnify and hold harmless the Company, its directors, officers who sign any
Shelf Registration Statement and each person, if any, who controls the Company within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses,
claims, damages or liabilities to which the Company or such other persons may become subject, under
the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in such Shelf Registration Statement, Prospectus or Issuer Free
Writing Prospectus, or any amendment or supplement, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Company by or on behalf
of such Electing Holder, underwriter, selling agent or other securities professional expressly for
use therein, and (ii) reimburse the Company and such other persons for any legal or other expenses
reasonably incurred by the Company in connection with investigating or defending any such action or
claim as such expenses are incurred.

     (c) Notices of Claims, Etc. Promptly after receipt by an indemnified party under subsection
(a) or (b) above of notice of the commencement of any action, such indemnified party shall, if a
claim in respect thereof is to be made against an indemnifying party under this
Section 5, notify such indemnifying party in writing of the commencement thereof; but the omission
so to notify the indemnifying party shall not relieve it from any liability which it may have to
any indemnified party otherwise than under the indemnification provisions of or contemplated by
subsection (a) or (b) above. In case any such action shall be brought against any indemnified
party and it shall notify an indemnifying party of the commencement thereof, such indemnifying
party shall be entitled to participate therein and, to the extent that it shall wish, jointly with
any other indemnifying party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, such indemnifying
party shall not be liable to such indemnified party under this Section

13

 

5 for any legal expenses of
other counsel or any other expenses, in each case subsequently incurred by such indemnified party,
in connection with the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the written consent of the indemnified party, effect the
settlement or compromise of, or consent to the entry of any judgment with respect to, any pending
or threatened action or claim in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified party is an actual or potential party to such action or
claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the
indemnified party from all liability arising out of such action or claim and (ii) does not include
a statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of
any indemnified party.

     (d) Contribution. If the indemnification provided for in this Section 5 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of
any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in
such proportion as is appropriate to reflect the relative fault of the indemnifying party and the
indemnified party in connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and indemnified party
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by such indemnifying party or by such indemnified party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata allocation (even if the
Electing Holders or any underwriters, selling agents or other securities professionals or all of
them were treated as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to in this Section 5(d). The amount paid
or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The obligations of the Electing Holders
and any underwriters, selling agents or other securities
professionals in this Section 5(d) to contribute shall be several in proportion to the percentage
of principal amount of Registrable Securities registered or underwritten, as the case may be, by
them and not joint.

     (e) Notwithstanding any other provision of this Section 5, in no event will any (i) Electing
Holder be required to undertake liability to any person under this Section 5 for any amounts in
excess of the dollar amount of the proceeds to be received by such Holder from the sale of such
Holder’s Registrable Securities (after deducting any fees, discounts and commissions applicable
thereto) pursuant to any Shelf Registration Statement under which such Registrable Securities are
to be registered under the Securities Act and (ii) underwriter, selling agent or other securities
professional be required to undertake liability to any person hereunder for any amounts in excess
of the discount, commission or other compensation payable to such

14

 

underwriter, selling agent or
other securities professional with respect to the Registrable Securities underwritten by it and
distributed to the public.

     (f) The obligations of the Company under this Section 5 shall be in addition to any liability
which the Company may otherwise have to any Indemnified Person and the obligations of any
Indemnified Person under this Section 5 shall be in addition to any liability which such
Indemnified Person may otherwise have to the Company. The remedies provided in this Section 5 are
not exclusive and shall not limit any rights or remedies which may otherwise be available to an
indemnified party at law or in equity.

     6. Underwritten Offering. Upon receipt of the Company’s prior written consent, any Holder of
Registrable Securities who desires to do so may sell Registrable Securities (in whole or in part)
in an underwritten offering; provided that (i) the Electing Holders of at least 33-1/3% in
aggregate principal amount of the Registrable Securities then covered by the Shelf Registration
Statement shall request such an offering and (ii) at least such aggregate principal amount of such
Registrable Securities shall be included in such offering; and provided further that the Company
shall not be obligated to cooperate with more than one underwritten offering during the
Effectiveness Period. Upon receipt of such a request, the Company shall provide all Holders of
Registrable Securities written notice of the request, which notice shall inform such Holders that
they have the opportunity to participate in the offering. In any such underwritten offering, the
investment banker or bankers and manager or managers that will administer the offering will be
selected by, and the underwriting arrangements with respect thereto (including the size of the
offering) will be approved by, the holders of a majority of the Registrable Securities to be
included in such offering; provided, however, that such investment bankers and managers and
underwriting arrangements must be reasonably satisfactory to the Company. No Holder may
participate in any underwritten offering contemplated hereby unless (a) such Holder agrees to sell
such Holder’s Registrable Securities to be included in the underwritten offering in accordance with
any approved underwriting arrangements, (b) such Holder completes and executes all reasonable
questionnaires, powers of attorney, indemnities, underwriting agreements, lock-up letters and other
documents required under the terms of such approved underwriting arrangements, and (c) if such
Holder is not then an Electing Holder, such Holder returns a completed and signed Notice and
Questionnaire to the Company in accordance with Section 3(a)(ii) hereof within a reasonable amount
of time before such underwritten offering. The Holders participating in any underwritten offering
shall be responsible for any underwriting discounts and commissions and fees and, subject to
Section 4 hereof, expenses of their own
counsel. The Company shall pay all expenses customarily borne by issuers in an underwritten
offering, including but not limited to filing fees, the fees and disbursements of its counsel and
independent public accountants and any printing expenses incurred in connection with such
underwritten offering. Notwithstanding the foregoing or the provisions of Section 3(n) hereof,
upon receipt of a request from the Managing Underwriter or a representative of holders of a
majority of the Registrable Securities to be included in an underwritten offering to prepare and
file an amendment or supplement to the Shelf Registration Statement and Prospectus in connection
with an underwritten offering, the Company may delay the filing of any such amendment or supplement
for up to 90 days if the Board of Directors of the Company shall have determined in good faith that
the Company has a bona fide business reason for such delay. For the avoidance of doubt, the
determination by the Company to consent to an underwritten offering shall be in the Company’s sole
discretion.

15

 

     7. Liquidated Damages.

     (a) Notwithstanding any postponement of effectiveness permitted by Section 2(a) hereof, if on
or prior to the 180th day following the Closing Date, a Shelf Registration Statement is not
declared effective by the Commission (each, a “Registration Default”), the Company shall be
required to pay liquidated damages (“Liquidated Damages”), from and including the day following
such Registration Default until such Shelf Registration Statement is either so filed or so filed
and subsequently declared effective or the expiration of the Effectiveness Period, as applicable,
at a rate per annum equal to an additional one-quarter of one percent (0.25%) of the principal
amount of Registrable Securities, to and including the 90th day following such Registration Default
and one-half of one percent (0.50%) thereof from and after the 91st day following such Registration
Default until the earlier of (1) the time such Shelf Registration Statement is declared effective
or (2) the expiration of the Effectiveness Period; provided, however, no Liquidated Damages shall
accrue under this Section 7(a) during any Suspension Period.

     (b) In the event that (i) the Shelf Registration Statement ceases to be effective, (ii) the
Company suspends the use of the Prospectus pursuant to Section 2(c) or 3(j) hereof, (iii) the
Holders are not authorized to use the Prospectus pursuant to Section 3(g) hereto or (iv) the
Holders are otherwise prevented or restricted by the Company from effecting sales pursuant to the
Shelf Registration Statement (an “Effective Failure”) for more than 45 days, whether or not
consecutive, in any 90-day period, or for more than 90 days, whether or not consecutive, during any
12-month period, then the Company shall pay Liquidated Damages at a rate per annum equal to an
additional one-quarter of one percent (0.25%) of the principal amount of Registrable Securities
from the 46th day of the applicable 90-day period or one-half of one percent (0.50%) of the
principal amount of Registrable Securities from the 91st day of the applicable 12-month period, as
the case may be, that any such Effective Failure has existed until the earlier of (1) the time the
Holders of Registrable Securities are again able to make sales under the Shelf Registration
Statement or (2) the expiration of the Effectiveness Period; provided, however, no Liquidated
Damages shall accrue under this Section 7(b) (A) with respect to the Registrable Securities of any
Holder that is not an Electing Holder or (B) during any Suspension Period.

     (c) Any amounts to be paid as Liquidated Damages pursuant to paragraphs (a) or (b) of this
Section 7 shall be paid in cash semi-annually in arrears, with the first semi-annual
payment due on the first Interest Payment Date (as defined in the Indenture), as applicable,
following the date of such Registration Default or Effective Failure, as applicable. Such
Liquidated Damages will accrue (1) in respect of the applicable Registrable Securities at the rates
set forth in paragraphs (a) or (b) of this Section 7, as applicable, on the principal amount of
such Registrable Securities.

     (d) Except as provided in Section 8(b) hereof, the Liquidated Damages as set forth in this
Section 7 shall be the exclusive monetary remedy available to the Holders of Registrable Securities
for such Registration Default or Effective Failure. In no event shall the Company be required to
pay Liquidated Damages in excess of the applicable maximum amount of one-half of one percent
(0.50%) set forth above, regardless of whether one or multiple Registration Defaults or Effective
Failures exist. In no event shall Holders who have converted Securities into Common Stock be
entitled to receive any Liquidated Damages with respect to such Common Stock or the issue price of
the Securities converted. The Liquidated Damages provided for

16

 

herein are in addition to any
“Additional Interest” (as defined in the Indenture) which may be payable in respect of the
Securities.

     8. Miscellaneous.

     (a) Other Registration Rights. The Company may grant registration rights that would permit
any person that is a third party the right to piggy-back on any Shelf Registration Statement,
provided that if the Managing Underwriter of any underwritten offering conducted pursuant to
Section 6 hereof notifies the Company and the Electing Holders that the total amount of securities
which the Electing Holders and the holders of such piggy-back rights intend to include in any Shelf
Registration Statement is so large as to materially threaten the success of such offering
(including the price at which such securities can be sold), then the amount, number or kind of
securities to be offered for the account of holders of such piggy-back rights will be reduced to
the extent necessary to reduce the total amount of securities to be included in such offering to
the amount, number and kind recommended by the Managing Underwriter prior to any reduction in the
amount of Registrable Securities to be included in such Shelf Registration Statement.

     (b) Specific Performance. The parties hereto acknowledge that there would be no adequate
remedy at law if the Company fails to perform any of its obligations hereunder and that the
Purchasers and the Holders from time to time may be irreparably harmed by any such failure, and
accordingly agree that the Purchasers and such Holders, in addition to any other remedy to which
they may be entitled at law or in equity and without limiting the remedies available to the
Electing Holders under Section 7 hereof, shall be entitled to compel specific performance of the
obligations of the Company under this Registration Rights Agreement in accordance with the terms
and conditions of this Registration Rights Agreement, in any court of the United States or any
State thereof having jurisdiction.

     (c) Amendments and Waivers. This Agreement, including this Section 8(c), may be amended, and
waivers or consents to departures from the provisions hereof may be given, only by a written
instrument duly executed by the Company and the holders of a majority in aggregate principal amount
of Registrable Securities then outstanding. Each Holder of Registrable Securities outstanding at
the time of any such amendment, waiver or consent or
thereafter shall be bound by any amendment, waiver or consent effected pursuant to this Section
8(c), whether or not any notice, writing or marking indicating such amendment, waiver or consent
appears on the Registrable Securities or is delivered to such Holder.

     (d) Notices. All notices and other communications provided for or permitted hereunder shall
be given as provided in the Indenture; provided, that the Company may deliver notices and other
communications provided for or permitted hereunder to any Electing Holder to its address as set
forth in its Notice and Questionnaire.

     (e) Parties in Interest. The parties to this Agreement intend that all Holders of Registrable
Securities shall be entitled to receive the benefits of this Agreement and that any Electing Holder
shall be bound by the terms and provisions of this Agreement by reason of such election with
respect to the Registrable Securities which are included in a Shelf Registration Statement. All
the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and
shall be enforceable by the respective successors and assigns of the parties

17

 

hereto and any Holder
from time to time of the Registrable Securities to the aforesaid extent. In the event that any
transferee of any Holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall,
without any further writing or action of any kind, be entitled to receive the benefits of and, if
an Electing Holder, be conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement to the aforesaid extent.

     (f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

     (g) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (h) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.

     (i) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties hereto shall be
enforceable to the fullest extent permitted by law.

     (j) Survival. The respective indemnities, agreements, representations, warranties and other
provisions set forth in this Agreement or made pursuant hereto shall remain in full force and
effect, regardless of any investigation (or any statement as to the results thereof) made by or on
behalf of any Electing Holder, any director, officer or partner of such Holder, any agent or
underwriter, any director, officer or partner of such agent or underwriter, or any controlling
person of any of the foregoing, and shall survive the transfer and registration of the Registrable
Securities of such Holder.

18

 

     Please confirm that the foregoing correctly sets forth the agreement between the Company and
you.

	 	 	 	 	 
	 	Very truly yours,

AMERIGROUP Corporation

 	 
	 	By:  	/s/
James W. Truess	 
	 	 	Name:  James W. Truess	 
	 	 	Title:  Executive Vice President and Chief Financial Officer	 
	 

Accepted as of the date hereof:

Goldman, Sachs & Co.

	 	 	 	 	 
	By:

	 	/s/ Goldman Sachs	 	 
	 

	 	 	 	 
	 

	 	(Goldman, Sachs & Co.)	 	 
	 

	 	 	 	 
	 
	 	 
	 

	 	On behalf of each of the Purchasers

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