Document:

exv4w1

EXHIBIT 4.1

 

PHH CORPORATION

as Issuer

AND

THE BANK OF NEW YORK MELLON

as Trustee

 

Indenture

Dated as of September 29, 2009

 

4.00% Convertible Senior Notes due 2014

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE 1 

	Definitions and Other Provisions of General Application

	 
	 	 	 	 
	Section 1.01. Definitions

	 	 	1	 
	Section 1.02. Compliance Certificates and Opinions

	 	 	11	 
	Section 1.03. Form of Documents Delivered to Trustee

	 	 	12	 
	Section 1.04. Acts of Holders; Record Dates

	 	 	12	 
	Section 1.05. Notices, Etc., to Trustee and Company

	 	 	13	 
	Section 1.06. Notice to Holders; Waiver

	 	 	13	 
	Section 1.07. Effect of Headings and Table of Contents

	 	 	14	 
	Section 1.08. Severability Clause

	 	 	14	 
	Section 1.09. Benefits of Indenture

	 	 	14	 
	Section 1.10. Governing Law

	 	 	14	 
	Section 1.11. No Recourse Against Others

	 	 	14	 
	 
	 	 	 	 
	ARTICLE 2

	The Securities

	 
	 	 	 	 
	Section 2.01. Designation, Amount and Issuance of Securities

	 	 	15	 
	Section 2.02. Form of the Securities

	 	 	15	 
	Section 2.03. Date and Denomination of Securities; Payment at the Stated
Maturity Date; Payment of Interest

	 	 	16	 
	Section 2.04. Execution and Authentication

	 	 	17	 
	Section 2.05. Security Registrar, Paying Agent and Conversion Agent

	 	 	17	 
	Section 2.06. Paying Agent To Hold Money in Trust

	 	 	18	 
	Section 2.07. Holder Lists

	 	 	18	 
	Section 2.08. Exchange and Registration of Transfer of Securities

	 	 	18	 
	Section 2.09. Global Securities

	 	 	19	 
	Section 2.10. Transfer Restrictions

	 	 	20	 
	Section 2.11. Responsibilities and Obligations of the Trustee

	 	 	22	 
	Section 2.12. Replacement Securities

	 	 	22	 
	Section 2.13. Outstanding Securities

	 	 	23	 
	Section 2.14. Temporary Securities

	 	 	23	 
	Section 2.15. Cancellation

	 	 	24	 
	Section 2.16. CUSIP and ISIN Numbers

	 	 	24	 
	Section 2.17. Additional Securities

	 	 	24	 
	 
	 	 	 	 
	ARTICLE 3

	Particular Covenants of the Company
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Payment of Principal and Interest

	 	 	24	 
	Section 3.02. Maintenance of Office or Agency

	 	 	24	 

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	 	 	 	Page	 
	Section 3.03. Provisions as to Paying Agent

	 	 	25	 
	Section 3.04. Rule 144A Information Requirement

	 	 	26	 
	Section 3.05. Resale of Certain Securities

	 	 	26	 
	Section 3.06. Book-Entry System

	 	 	26	 
	Section 3.07. Compliance Certificate

	 	 	27	 
	Section 3.08. Payment of Additional Interest

	 	 	27	 
	 
	 	 	 	 
	ARTICLE 4

	Repurchase of Notes

	 
	 	 	 	 
	Section 4.01. Right To Require Repurchase Upon a Fundamental Change

	 	 	28	 
	 
	 	 	 	 
	ARTICLE 5

	Conversion

	 
	 	 	 	 
	Section 5.01. Conversion Privilege and Conversion Rate

	 	 	32	 
	Section 5.02. Conversion Rate Adjustment Upon Certain Make-whole Fundamental Changes

	 	 	34	 
	Section 5.03. Exercise of Conversion Privilege

	 	 	35	 
	Section 5.04. Settlement of Conversion Obligation

	 	 	36	 
	Section 5.05. Fractions of Shares

	 	 	38	 
	Section 5.06. Adjustment of Conversion Rate

	 	 	39	 
	Section 5.07. Notice of Adjustments of Conversion Rate

	 	 	47	 
	Section 5.08. Company To Reserve Common Stock

	 	 	47	 
	Section 5.09. Taxes on Conversions

	 	 	47	 
	Section 5.10. Certain Covenants

	 	 	48	 
	Section 5.11. Cancellation of Converted Notes

	 	 	48	 
	Section 5.12. Provision in Case of Effect of Reclassification, Consolidation, Merger or Sale

	 	 	48	 
	Section 5.13. Responsibility of Trustee for Conversion Provisions

	 	 	49	 
	Section 5.14. Notice to Holders Prior to Certain Actions

	 	 	50	 
	Section 5.15. Stockholder Rights Plan

	 	 	51	 
	Section 5.16. Company Determination Final

	 	 	51	 
	Section 5.17. Exchange in Lieu of Conversion

	 	 	51	 
	 
	 	 	 	 
	ARTICLE 6

	Events of Default; Remedies

	 
	 	 	 	 
	Section 6.01. Events of Default

	 	 	52	 
	Section 6.02. Acceleration of Maturity; Rescission and Annulment

	 	 	53	 
	Section 6.03. Collection of Indebtedness and Suits for Enforcement by Trustee

	 	 	55	 
	Section 6.04. Trustee May File Proofs of Claim

	 	 	55	 
	Section 6.05. Application of Money Collected

	 	 	55	 
	Section 6.06. Limitation on Suits

	 	 	56	 
	Section 6.07. Unconditional Right of Holders To Receive Payment

	 	 	56	 
	Section 6.08. Restoration of Rights and Remedies

	 	 	57	 

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	 	 	 	Page	 
	Section 6.09. Rights and Remedies Cumulative

	 	 	57	 
	Section 6.10. Delay or Omission Not Waiver

	 	 	57	 
	Section 6.11. Control by Holders

	 	 	57	 
	Section 6.12. Waiver of Past Defaults

	 	 	57	 
	Section 6.13. Undertaking for Costs

	 	 	58	 
	Section 6.14. Waiver of Stay or Extension Laws

	 	 	58	 
	Section 6.15. Violations of Certain Covenants

	 	 	58	 
	 
	 	 	 	 
	ARTICLE 7

	Consolidation, Merger, Conveyance, Transfer or Lease

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

	 	 	59	 
	 
	 	 	 	 
	ARTICLE 8

	The Trustee

	 
	 	 	 	 
	Section 8.01. Duties and Responsibilities of Trustee

	 	 	60	 
	Section 8.02. Notice of Defaults

	 	 	62	 
	Section 8.03. Reliance on Documents, Opinions, Etc

	 	 	62	 
	Section 8.04. No Responsibility for Recitals, Etc

	 	 	63	 
	Section 8.05. Trustee, Paying Agents, Conversion Agents or Security Registrar
May Own Securities

	 	 	63	 
	Section 8.06. Monies To Be Held in Trust

	 	 	64	 
	Section 8.07. Compensation and Expenses of Trustee

	 	 	64	 
	Section 8.08. Officers’ Certificate as Evidence

	 	 	64	 
	Section 8.09. Conflicting Interests of Trustee

	 	 	65	 
	Section 8.10. Eligibility of Trustee

	 	 	65	 
	Section 8.11. Resignation or Removal of Trustee

	 	 	65	 
	Section 8.12. Acceptance by Successor Trustee

	 	 	66	 
	Section 8.13. Succession by Merger, Etc

	 	 	67	 
	Section 8.14. Preferential Collection of Claims

	 	 	67	 
	Section 8.15. Trustee’s Application for Instructions from the Company

	 	 	67	 
	 
	 	 	 	 
	ARTICLE 9

	Holders’ Lists and Reports by Trustee

	 
	 	 	 	 
	Section 9.01. Company To Furnish Trustee Names and Addresses of Holders

	 	 	68	 
	Section 9.02. Preservation of Information; Communications to Holders

	 	 	68	 
	Section 9.03. Reports by Trustee

	 	 	68	 
	Section 9.04. Reports by Company

	 	 	69	 
	 
	 	 	 	 
	ARTICLE 10

	Satisfaction and Discharge

	 
	 	 	 	 
	Section 10.01. Discharge of Indenture

	 	 	69	 
	Section 10.02. Deposited Monies and Shares To Be Held in Trust by Trustee

	 	 	70	 

iii

 

	 	 	 	 	 
	 	 	 	Page	 
	Section 10.03. Paying Agent To Repay Monies and Shares Held

	 	 	70	 
	Section 10.04. Return of Unclaimed Monies and Shares

	 	 	70	 
	Section 10.05. Reinstatement

	 	 	70	 
	 
	 	 	 	 
	ARTICLE 11

	Supplemental Indentures

	 
	 	 	 	 
	Section 11.01. Supplemental Indentures Without Consent of Holders

	 	 	71	 
	Section 11.02. Supplemental Indentures with Consent of Holders

	 	 	71	 
	Section 11.03. Execution of Supplemental Indentures

	 	 	72	 
	Section 11.04. Effect of Supplemental Indentures

	 	 	73	 
	Section 11.05. Reference in Securities to Supplemental Indentures

	 	 	73	 
	Section 11.06. Notice to Holders of Supplemental Indentures

	 	 	73	 
	 
	 	 	 	 
	ARTICLE 12

	Miscellaneous

	 
	 	 	 	 
	Section 12.01. When Securities Are Disregarded

	 	 	73	 
	Section 12.02. Rules by Trustee, Paying Agent and Security Registrar

	 	 	73	 
	Section 12.03. Successors

	 	 	74	 
	Section 12.04. Multiple Originals

	 	 	74	 
	Section 12.05. Calculations

	 	 	74	 
	Section 12.06. Waiver of Jury Trial

	 	 	74	 
	Section 12.07. Force Majeure

	 	 	74	 
	 
	 	 	 	 
	Schedule A Make-Whole Table
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS

	 
	 	 	 	 
	Exhibit A — Form of Security
	 	 	 	 
	Exhibit B — Form of Restrictive Legend for Common Stock Issued Upon Conversion
	 	 	 	 

iv

 

     INDENTURE, dated as of September 29, 2009, between PHH Corporation, a corporation duly
organized and existing under the laws of the State of Maryland, as issuer (the “Company”), having
its principal office at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054 and The Bank of New York
Mellon, a New York banking corporation, as trustee (the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the creation of an issuance of 4.00% Convertible
Senior Notes due 2014 (each, a “Security” or “Note” and, collectively, the “Securities” or “Notes”)
of the tenor and amount hereinafter set forth, and to provide therefor the Company has duly
authorized the execution and delivery of this Indenture; and

     WHEREAS, all things necessary to make the Securities, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company, and to make this Indenture a valid and legally binding agreement of the
Company, in accordance with the terms of the Securities and this Indenture, have been done;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH, for and in consideration of the premises and the
purchases of the Securities by the Holders thereof, it is mutually agreed, for the benefit of the
Company and the equal and proportionate benefit of all Holders of the Securities, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

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

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

     (ii) all other terms used herein that are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

     (iii) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP; and

     (iv) 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, has the meaning specified in Section 1.04.

     “Additional Interest” has the meaning specified in Section 3.08(a).

     “Additional Securities” has the meaning specified in Section 2.17.

     “Additional Shares” has the meaning specified in Section 5.02.

 

 

     “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 Members” has the meaning specified in Section 2.09(f).

     “Bankruptcy Law” means Title 11 of the U.S. Code or any similar Federal or State law for
relief of debtors.

     “Bid Solicitation Agent” means initially the Company or any agent the Company may appoint in
the future, including the Trustee, to solicit a Trading Price for the Securities as may be required
pursuant to this Indenture.

     “Board of Directors” means, with respect to any Person, either the board of directors of such
Person or any duly authorized committee of that board.

     “Board Resolution” means, with respect to any Person, a copy of a resolution certified by the
Secretary or an Assistant Secretary of such Person 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 or a Sunday, that is neither a legal
holiday nor a day on which banking institutions are authorized or required by law, regulation or
executive order to close in the City of New York.

     “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock and limited liability company interests and,
with respect to partnerships, partnership interests (whether general or limited) and any other
interest or participation that confers on a Person the right to receive a share of the profits and
losses of, or distributions of assets of, such partnership.

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

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

     “Common Stock” means the shares of common stock, par value $0.01 per share, of the Company as
they exist on the date of this Indenture, subject to Section 5.12.

     “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.

2

 

     “Continuing Directors” means (i) individuals who on the date of original issuance of the Notes
were members of the Board of Directors of the Company and (ii) any new directors whose election to
the Board of Directors of the Company or whose nomination for election by the Company’s
stockholders was approved by at least a majority of the Company’s directors then still in office
(or a duly constituted committee thereof), either who were directors on the date of original
issuance of the Notes or whose election or nomination for election was previously so approved.
Solely for purposes of this definition, the phrase “or any duly authorized committee of that board”
of the definition of Board of Directors shall be disregarded.

     “Conversion Agent” has the meaning specified in Section 2.05.

     “Conversion Date” has the meaning specified in Section 5.03.

     “Conversion Notice” has the meaning specified in Section 5.03.

     “Conversion Obligation” has the meaning specified in Section 5.01(a).

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

     “Conversion Rate” means, initially 38.7522 shares of Common Stock per $1,000 principal amount
of Securities, subject to adjustment as set forth herein.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date of this Indenture, located at The Bank of New York Mellon, 101 Barclay Street, Floor 8 West,
New York, New York 10286, Attn: Corporate Trust Administration 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).

     “Custodian” means the Trustee, as custodian with respect to the Global Securities, or any
successor entity.

     “Daily Conversion Value” means for each of the 60 consecutive VWAP Trading Days during the
Observation Period, one-sixtieth (1/60th) 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 5.12) on such
VWAP Trading Day. Any determination of the Daily Conversion Value by the Company shall be
conclusive absent manifest error.

     “Daily Settlement Amount” has the meaning specified in Section 5.04.

     “Daily Share Amount” has the meaning specified in Section 5.04(a)(ii).

     “Daily VWAP” of the Common Stock means, for each of the 60 consecutive VWAP Trading Days
during the Observation Period, the per share volume-weighted average price as

3

 

displayed under the heading “Bloomberg VWAP” on Bloomberg page PHH.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. Daily VWAP will be determined without regard to after hours trading or any other trading
outside of the regular trading session trading hours.

     “Default” means any event that is or with the passage of time or the giving of notice or both
would become an Event of Default.

     “Depositary” means The Depository Trust Company until a successor Depositary shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall
mean such successor Depositary.

     “Effective Date” has the meaning specified in Section 5.02(b).

     “Event of Default” has the meaning specified in Section 6.01.

     “Ex-Date” shall mean the first date on which the shares of the Common Stock trade on the
relevant exchange or in the relevant market, regular way, without the right to receive the issuance
or distribution in question, from the Company or, if applicable, from the seller of Common Stock on
such exchange or market (in the form of due bids or otherwise) as determined by such exchange or
market.

     “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

     “Extension Fee” has the meaning specified in Section 6.02.

     “Foreign Jurisdiction Transaction” has the meaning specified in Section 7.01(a).

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

     (1) any Person acquires beneficial ownership, directly or indirectly, through a purchase,
merger or other acquisition 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 or any of the Company’s Subsidiaries; provided that a Fundamental Change
shall not occur as a result of this clause (1) if, in such purchase, merger, acquisition or other
transaction, all or substantially all of the Common Stock is exchanged for or converted into cash,
securities or other property, in which case clause (2) below shall apply (in addition to, if
applicable, clauses (3), (4) or (5) below); or

4

 

     (2) the Company (i) merges or consolidates with or into any other Person, 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 (excluding a pledge of securities
issued by any of the Company’s Subsidiaries, but not excluding any transfer or other disposition
resulting from the foreclosure or other exercise of creditors’ remedies pursuant to such pledge) or
(ii) engages in any recapitalization, reclassification or other acquisition transaction or series
of transactions in which all or substantially all of the Common Stock is exchanged for or converted
into cash, securities or other property, in each case other than any merger or consolidation:

     (a) pursuant to which the holders of Common Stock immediately prior to the transaction
have the entitlement to exercise, 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
either (x) the continuing or surviving corporation immediately after the transaction or (y)
the corporation that directly or indirectly owns 100% of the Capital Stock of such
continuing or surviving corporation; or

     (b) that does not result in a reclassification, conversion, exchange or cancellation of
the outstanding shares of Common Stock; 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 Common Stock
solely into shares of common stock of the surviving entity; or

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

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

     (5) if shares of Common Stock, or shares of any other Capital Stock which constitute the
Reference Property as set forth in Section 5.12 hereof, are not listed for trading on any United
States national securities exchange.

     For purposes of this definition, whether a “person” is a “beneficial owner” shall be determined in
accordance with Rule 13d-3 under the Exchange Act and “person” includes any syndicate or group that
would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act. In addition, solely
for purposes of this definition, the phrase “or any duly authorized committee of that board” of the
definition of Board of Directors shall be disregarded.

     “Fundamental Change Expiration Time” has the meaning specified in Section 4.01(i).

     “Fundamental Change Repurchase Date” has the meaning specified in Section 4.01.

     “Fundamental Change Repurchase Notice” has the meaning specified in Section 4.01(i).

5

 

     “Fundamental Change Repurchase Price” has the meaning specified in Section 4.01.

     “Fundamental Change Repurchase Right Notice” has the meaning specified in Section 4.01(b).

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, in each case, as in effect in the United States from time to time.

     “Global Security” means a Security in global form registered in the Security Register in the
name of the Depositary or a nominee thereof.

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

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof.

     “Initial Purchasers” means J.P. Morgan Securities Inc., Citigroup Global Markets Inc., Wells
Fargo Securities, LLC, Barclays Capital Inc. and RBS Securities Inc.

     “interest” means, when used with reference to the Securities, any interest payable under the
terms of the Securities, including Additional Interest, if any, and the Extension Fee, if any.

     “Interest Payment Date” means each March 1 and September 1 of each year.

     “Issue Date” means the date the Securities are originally issued as set forth on the face of
the Security under this Indenture.

     “Last Reported Sale Price” of the Common Stock (or any other security for which a Last
Reported Sale Price must be determined) on any date means the closing sale price per share (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 that
date as reported in composite transactions for the principal U.S. national or regional securities
exchange on which the Common Stock (or such other security) is traded. If the Common Stock (or
such other security) is not listed for trading on a U.S. 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 for the Common Stock (or such other security) in the over-the-counter market on the
relevant date, as reported by Pink OTC Markets Inc. or similar organization. If the Common Stock
(or such other security) is not so quoted, the “Last Reported Sale Price” shall be the average of
the mid-point of the last bid and ask prices for the Common Stock (or such other security) on the
relevant date from each of at least three nationally recognized independent investment banking
firms, which may include one or more of the Initial Purchasers, selected by the Company for this
purpose. Any such determination shall be conclusive absent manifest error.

6

 

     “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change pursuant to clauses (1), (2) or (5) under the definition of Fundamental Change (but without
giving effect to subclause (a) under clause (2) of that definition).

     “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.

     “Measurement Period” has the meaning specified in Section 5.01(a)(i).

     “Note” or “Notes” has the meaning specified in the first paragraph of the Recitals of the
Company.

     “Observation Period” with respect to any Security means:

     (i) with respect to any Conversion Date occurring on or after the 65th Scheduled Trading Day
prior to the Stated Maturity Date, the 60 consecutive VWAP Trading Day period beginning on, and
including, the 62nd Scheduled Trading Day prior to the Stated Maturity Date (or if such day is not
a VWAP Trading Day, the next succeeding VWAP Trading Day); and

     (ii) in all other instances, the 60 consecutive VWAP Trading Day period beginning on and
including the third VWAP Trading Day after the Conversion Date.

     “Officers’ Certificate” means a certificate signed by the Chief Executive Officer, the
President or the Chief Financial Officer, and by the Treasurer or the Secretary, of the Company,
and delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant
to Section 3.07 shall be the principal executive, financial or accounting officer of the Company.

     “open of business” means 9:00 a.m., New York City time.

     “Opinion of Counsel” means a written opinion of counsel, who may be external or in-house
counsel for the Company.

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

     (i) Securities theretofore cancelled by the Trustee or accepted by the Trustee for
cancellation;

     (ii) Securities, or portions thereof, for whose payment or purchase money in the
necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other
than the Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities; provided that
if such Securities are to be purchased prior to the Stated

7

 

Maturity Date thereof, notice of such purchase shall have been given to the Holders as
herein provided, or provision satisfactory to a Responsible Officer of the Trustee shall
have been made for giving such notice;

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

     (iv) Securities converted pursuant to Article 5;

provided, however, that, in determining whether the Holders of the requisite principal amount of
the Outstanding Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to
act with respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

     “Paying Agent” means any Person (including the Company) authorized by the Company to pay the
principal amount of, interest on or Fundamental Change Repurchase Price of, any Securities on
behalf of the Company. The Trustee shall be the initial Paying Agent.

     “Person” means any individual, corporation, partnership, limited liability company, joint
venture, trust, unincorporated organization or government or any agency or political subdivision
thereof.

     “Physical Securities” means permanent certificated Securities in registered form issued in
denominations of $1,000 principal amount and multiples thereof.

     “Principal Portion” has the meaning specified in Section 5.04(a)(i).

     “protected purchaser” has the meaning specified in Section 2.12.

     “Purchase Agreement” means the Purchase Agreement, dated September 23, 2009, entered into by
the Company and the Initial Purchasers in connection with the sale of the Securities.

     “record date” has the meaning specified in Section 5.06(e).

     “Record Date” means, with respect to the payment of interest, the February 15 (whether or not
a Business Day) immediately preceding an Interest Payment Date on March 1 and August 15 (whether or
not a Business Day) immediately preceding an Interest Payment Date on September 1.

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     “Reference Property” has the meaning specified in Section 5.12(b).

     “Resale Restriction Termination Date” has the meaning specified in Section 2.10.

     “Responsible Officer” means any officer of the Trustee within the corporate trust department
of the Trustee including any vice president, assistant vice president, assistant secretary,
assistant treasurer, trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be such officers,
respectively, with direct responsibility for the administration of this Indenture and also, with
respect to a particular matter, any other officer of the Trustee to whom such matter is referred
because of such officer’s knowledge and familiarity with the particular subject.

     “Restricted Security” or “Restricted Securities” has the meaning specified in Section 2.10.

     “Restricted Security Legend” has the meaning specified in Section 2.10.

     “Restricted Transfer Default” has the meaning specified in Section 3.08(b).

     “Rule 144” means Rule 144 under the Securities Act (including any successor rule thereto), as
the same may be amended from time to time.

     “Rule 144A” means Rule 144A under the Securities Act (including any successor rule thereto),
as the same may be amended from time to time.

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

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

     “Securitization Indebtedness” means any indebtedness of any of the Company’s structured
bankruptcy-remote subsidiaries which does not permit or provide for recourse to the Company or any
of its Subsidiaries (other than the structured bankruptcy-remote subsidiary) or any property or
assets of the Company or any of its Subsidiaries (other than property or assets of such structured
bankruptcy-remote subsidiary); provided that if at any time, whether by operation of law, the terms
of such indebtedness, pursuant to a legal judgment, decree or order, or otherwise, any such
indebtedness is, or becomes, recourse to the Company or any of its Subsidiaries (other than the
structured bankruptcy-remote subsidiary) then such indebtedness shall not be Securitization
Indebtedness.

     “Security” or “Securities” has the meaning specified in the first paragraph of the Recitals of
the Company.

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     “Security Register” and “Security Registrar” have the respective meanings specified in Section
2.05.

     “Spin-Off” has the meaning specified in Section 5.06(c).

     “Stated Maturity Date” when used with respect to any Security and the payment of the principal
amount thereof, means September 1, 2014.

     “Stock Price” means the price per share of Common Stock at the time of a Make-Whole
Fundamental Change pursuant to which Additional Shares shall be added to the Conversion Rate as set
forth in Section 5.02, 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 Make-Whole Fundamental Change,
the cash amount paid per share and (ii) otherwise, the average of the Last Reported Sale Prices of
the Common Stock over the 10 Trading Day period ending on the Trading Day preceding the Effective
Date.

     “Stock Price Condition” has the meaning specified in Section 5.01(a)(ii).

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock or other voting
interests 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 or other voting interests” means stock or other voting interests which
ordinarily have voting power for the election of directors or comparable governing body, whether at
all times or only so long as no senior class of stock or other interests has such voting power by
reason of any contingency.

     “Successor Company” has the meaning specified in Section 7.01(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” of the Notes on any date of determination means the average of the secondary
market bid quotations obtained by the Bid Solicitation Agent per $1000 in principal amount of Notes
for $2.0 million in principal amount of the Notes at approximately 3:30 p.m., New York City time,
on such determination date from three independent nationally recognized securities dealers the
Company selects, which may include one or more of the Initial Purchasers; provided that if three
such bids cannot reasonably be provided to the Bid Solicitation Agent, but two such bids are
obtained, then the average of the two bids shall be used, and if only one such bid is obtained,
that one bid shall be used. If at least one bid for $2.0 in million principal amount of the Notes
cannot reasonably be obtained, then the Trading Price per $1,000 in principal amount of the Notes
will 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. Any such determination shall be conclusive absent
manifest error.

     “Trading Price Condition” has the meaning specified in Section 5.01(a)(i).

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     “Trigger Event” has the meaning specified in Section 5.06(c).

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in effect on the date as of
which this Indenture 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.

     “U.S.” or “United States” means the United States of America.

     “Valuation Period” has the meaning specified in Section 5.06(c).

     “VWAP Market Disruption Event” means (i) a failure by the principal U.S. 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. (local time on such exchange or market) on any Scheduled Trading Day for the Common Stock for
an aggregate one half-hour period or longer 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 U.S. 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 a Business Day.

     “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person, all the Capital
Stock of which (other than directors’ qualifying shares) is owned by such Person or another Wholly
Owned Subsidiary of such Person.

     Section 1.02. Compliance Certificates and Opinions. Upon any application or request by the
Company to the Trustee to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required hereunder. Each such
certificate or opinion shall be given in the form of an Officers’ Certificate, if to be given by an
officer of the Company, or an Opinion of Counsel, if to be given by counsel, and shall comply with
any other requirement set forth in this Indenture.

     Every Officers’ Certificate or Opinion of Counsel 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;

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     (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, such individual has made such
examination or investigation as is necessary to enable such individual to express an informed
opinion as to whether or not such covenant or condition has been complied with; and

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

     Section 1.03. Form of Documents Delivered to 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 Officers’ Certificate or Opinion of Counsel 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 that the certificate or opinion or representations with respect
to the matters upon which his certificate or opinion is based are erroneous. Any such Officers’
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 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 1.04. Acts of Holders; Record Dates. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing and, except as herein
otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as an “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 8.01) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section 1.04.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary

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public or other officer authorized by law to take acknowledgments of deeds, certifying that
the individual signing such instrument or writing acknowledged to him the execution thereof. Where
such execution is by a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his authority. The fact and
date of the execution of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other manner which the Trustee reasonably deems sufficient.

     (c) The Company may fix any day as the record date for the purpose of determining the Holders
entitled to give or take any request, demand, authorization, direction, notice, consent, waiver or
other action, or to vote on any action, authorized or permitted to be given or taken by Holders.
If not set by the Company prior to the first solicitation of a Holder made by any Person in respect
of any such action, or, in the case of any such vote, prior to such vote, the record date for any
such action or vote shall be the 30th day (or, if later, the date of the most recent list of
Holders required to be provided pursuant to Section 9.01) prior to such first solicitation or vote,
as the case may be. With regard to any record date, only the Holders on such date (or their duly
designated proxies) shall be entitled to give or take, or vote on, the relevant action.

     (d) The ownership of Securities shall be proved by the Security Register.

     (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

     Section 1.05. Notices, Etc., to Trustee and Company. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with:

     (i) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its
applicable Corporate Trust Office; or

     (ii) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to the Company addressed to it at the address of its principal office
specified in the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company, Attention: General Counsel.

     Section 1.06. Notice to Holders; Waiver. Where this Indenture provides for notice to Holders
of any event, such notice shall be sufficiently given if in writing and mailed, first-class postage
prepaid, to each Holder affected by such event, at such Holder’s address as it appears in the
Security Register. 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. Notices will be deemed to have been
given on the date of mailing. Where this Indenture provides for notice in any manner, such

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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.

     Whenever under this Indenture the Trustee is required to provide any notice by mail, in all
cases the Trustee may alternatively provide notice by overnight courier or by telefacsimile, with
confirmation of transmission.

     Section 1.07. Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction
hereof, and all Article and Section references are to Articles and Sections, respectively, of this
Indenture unless otherwise expressly stated.

     Section 1.08. Severability Clause. In case any provision in this Indenture or in the
Securities 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 1.09. Benefits of Indenture. Nothing in this Indenture or in the Securities, express
or implied, shall give to any Person, other than the parties hereto and their respective successors
hereunder and the Holders of Securities, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     Section 1.10. Governing Law. THIS INDENTURE AND EACH SECURITY (AND ANY CLAIM, CONTROVERSY OR
DISPUTE ARISING UNDER OR RELATED TO THIS INDENTURE AND EACH SECURITY) SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF
LAWS PROVISIONS THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAWS OF THE
STATE OF NEW YORK).

     Section 1.11. No Recourse Against Others. No director, officer, employee, stockholder or
Affiliate of the Company from time to time shall have any liability for any obligations of the
Company under the Securities or this Indenture. Each Holder by accepting a Security waives and
releases such liability.

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ARTICLE 2

The Securities

     Section 2.01. Designation, Amount and Issuance of Securities. The Securities shall be
designated as “4.00% Convertible Senior Notes due 2014.” The Securities will be limited to an
aggregate principal amount of $250,000,000, subject to Section 2.17 and except for Notes
authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of,
other Notes pursuant to Section 2.04, Section 2.08, Section 2.09, Section 2.10, Section 2.12 or
Section 2.14. Upon the execution of this Indenture, or from time to time thereafter, Securities
may be executed by the Company and delivered to the Trustee for authentication, and the Trustee
shall thereupon authenticate and deliver Securities upon a written order of the Company, such order
signed by an Officer of the Company, without any further action by the Company hereunder.

     Section 2.02. Form of the Securities. The Securities and the Trustee’s certificate of
authentication to be borne by such Securities shall be substantially in the form set forth in
Exhibit A hereto. The terms and provisions contained in the form of Securities attached as Exhibit
A hereto shall constitute, and are hereby expressly made, a part of this Indenture and, to the
extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

     Any of the Securities may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required by the Custodian for the Global Securities or
the Depositary or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any securities exchange or
automated quotation system on which the Securities may be listed, or to conform to usage, or to
indicate any special limitations or restrictions to which any particular Securities are subject.

     So long as the Securities are eligible for book-entry settlement with the Depositary, or
unless otherwise required by law, subject to Section 2.09, all of the Securities will be
represented by one or more Securities in global form registered in the name of the Depositary or
the nominee of the Depositary (“Global Securities”). The transfer and exchange of beneficial
interests in any such Global Securities shall be effected through the Depositary in accordance with
this Indenture and the applicable procedures of the Depositary. Except as provided in Section
2.09, beneficial owners of a Global Security shall not be entitled to have certificates registered
in their names, will not receive or be entitled to receive physical delivery of certificates in
definitive form and will not be considered Holders of such Global Security.

     Any Global Security shall represent such of the Outstanding Securities as shall be specified
therein and shall provide that it shall represent the aggregate amount of Outstanding Securities
from time to time endorsed thereon and that the aggregate amount of outstanding Securities
represented thereby may from time to time be increased or reduced to reflect issuances,
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement

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of a Global Security to reflect the amount of any increase or decrease in the amount of
Outstanding Securities represented thereby shall be made by the Trustee or the Custodian for the
Global Security, at the direction of the Trustee, in such manner and upon instructions given by the
Holder of such Securities in accordance with this Indenture. Payment of principal of, and interest
on, any Global Securities shall be made to the Depositary in immediately available funds.

     Section 2.03. Date and Denomination of Securities; Payment at the Stated Maturity Date;
Payment of Interest. The Securities shall be issuable in registered form without coupons in
denominations of $1,000 principal amount and integral multiples thereof. Each Security shall be
dated the date of its authentication and shall bear interest from the date specified on the face of
the form of Securities attached as Exhibit A hereto. Interest on the Securities shall be computed
on the basis of a 360-day year comprised of twelve 30-day months.

     On the Stated Maturity Date, each Holder shall be entitled to receive the principal amount of
the Securities held and accrued and unpaid interest to, but not including, the Stated Maturity
Date. With respect to Global Securities, principal and interest will be paid to the Depositary in
immediately available funds. With respect to any Physical Securities, principal and interest will
be payable at the Company’s office or agency maintained for that purpose, which initially will be
the Trustee’s office at 101 Barclay Street, Floor 8 West, New York, New York 10286.

     The Person in whose name any Security is registered on the Security Register at the close of
business on any Record Date with respect to any Interest Payment Date shall be entitled to receive
the interest payable on such Interest Payment Date, except that the interest payable upon the
Stated Maturity Date will be payable to the Person to whom principal is payable upon the Stated
Maturity Date.

     Except as provided above, the Company shall pay interest (i) on any Global Securities by wire
transfer of immediately available funds to the account of the Depositary or its nominee, (ii) on
any Securities in certificated form having a principal amount of $5,000,000 or less, by check
mailed to the address of the Person entitled thereto as it appears in the Security Register,
provided that on the Stated Maturity Date, interest will be payable at the office of the Company
maintained by the Company for such purposes, which shall initially be an office or agency of the
Trustee located at 101 Barclay Street, Floor 8 West, New York, New York 10286 and (iii) on any
Securities in certificated form having a principal amount of more than $5,000,000, either by check
mailed to the address of the Person entitled thereto as it appears in the Security Register or,
upon application by a Holder to the Security Registrar not later than the relevant Record Date, by
wire transfer in immediately available funds to that Holder’s account within the United States,
which application shall remain in effect until the Holder notifies, in writing, the Security
Registrar to the contrary; provided that on the Stated Maturity Date, interest will be payable at
the office of the Company maintained by the Company for such purposes, which shall initially be an
office or agency of the Trustee located at 101 Barclay Street, Floor 8 West, New York, New York
10286. If a payment date is not a Business Day, payment shall be made on the next succeeding
Business Day, and no additional interest shall accrue thereon.

16

 

     Section 2.04. Execution and Authentication. One or more Officers shall sign the Securities
for the Company by manual or facsimile signature.

     If an Officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.

     A Security shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

     The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Securities. Any such appointment shall be evidenced by an instrument signed by a
Responsible Officer, a copy of which shall be furnished to the Company. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee
may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as any Security
Registrar, Paying Agent or agent for service of notices and demands.

     Section 2.05. Security Registrar, Paying Agent and Conversion Agent. The Company shall
maintain an office or agency where Securities may be presented for registration of transfer or for
exchange (the “Security Registrar”), an office or agency where Securities may be presented for
payment (the “Paying Agent”) and an office or agency where Securities may be presented for
conversion (the “Conversion Agent”). The Corporate Trust Office shall be considered as one such
office or agency of the Company for each of the aforesaid purposes. The Security Registrar shall
keep a register of the Securities (the “Security Register”) and of their transfer and exchange.
The Company may have one or more co-registrars and one or more additional paying agents. The term
“Paying Agent” includes any additional paying agent, and the term “Security Registrar” includes any
co-registrars. The Company initially appoints the Trustee as (i) Security Registrar and Paying
Agent in connection with the Securities, (ii) the Custodian with respect to the Global Securities
and (iii) Conversion Agent.

     The Company shall enter into an appropriate agency agreement with any Security Registrar,
Paying Agent or Conversion Agent not a party to this Indenture. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of
the name and address of any such agent. If the Company fails to maintain a Security Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 8.07. The Company or any of its domestically
organized Wholly Owned Subsidiaries may act as Paying Agent, Conversion Agent or Security
Registrar.

     The Company may remove any Security Registrar, Paying Agent or Conversion Agent upon written
notice to such Security Registrar, Paying Agent or Conversion Agent and to the Trustee; provided
that no such removal shall become effective until (1) acceptance of an appointment by a successor
as evidenced by an appropriate agreement entered into by the Company and such successor Security
Registrar, Paying Agent or Conversion Agent, as the case may be, and delivered to the Trustee or
(2) notification to the Trustee that the Trustee shall serve

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as Security Registrar, Paying Agent or Conversion Agent until the appointment of a successor
in accordance with clause (1) above. The Security Registrar, Paying Agent or Conversion Agent may
resign at any time upon written notice; provided that the Trustee may resign as Paying Agent,
Conversion Agent or Security Registrar only if the Trustee also resigns as Trustee in accordance
with Section 8.11.

     Section 2.06. Paying Agent To Hold Money in Trust. On or prior to each due date of the
principal and interest on any Security, the Company shall deposit with the Paying Agent (or if the
Company or a Wholly Owned Subsidiary of the Company is acting as Paying Agent, segregate and hold
in trust for the benefit of the Persons entitled thereto) a sum sufficient to pay such principal
and interest when so becoming due. The Company shall require each Paying Agent (other than the
Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal of or interest on
the Securities and shall notify the Trustee of any default by the Company in making any such
payment. If the Company or a Wholly Owned Subsidiary of the Company acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company
at any time may require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed by the Paying Agent. Upon complying with this Section 2.06, the Paying
Agent shall have no further liability for the money delivered to the Trustee.

     Section 2.07. Holder Lists. The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of Holders. If the
Trustee is not the Security Registrar, the Company shall furnish, or cause the Security Registrar
to furnish, to the Trustee, in writing at least five Business Days before each Interest Payment
Date and at such other times as the Trustee may request in writing, a list in such form and as of
such date as the Trustee may reasonably require of the names and addresses of Holders.

     Section 2.08. Exchange and Registration of Transfer of Securities. The Company shall cause
to be kept at the Corporate Trust Office the Security Register in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Security Register shall be in written form or in any form capable
of being converted into written form within a reasonably prompt period of time.

     Upon surrender for registration of transfer of any Securities to the Security Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section 2.08
and in Section 2.10, the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Securities of any authorized
denominations and of a like aggregate principal amount and bearing such restrictive legends as may
be required by this Indenture.

     Securities may be exchanged for other Securities of any authorized denominations and of a like
aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture, upon surrender of the Securities to be exchanged at any such office or agency maintained
by the Company pursuant to Section 3.02. Whenever any Securities are so surrendered for exchange,
the Company shall execute, and the Trustee shall authenticate and

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deliver, the Securities that the Holder making the exchange is entitled to receive bearing
registration numbers not contemporaneously Outstanding.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     All Securities presented or surrendered for registration of transfer or for exchange,
repurchase or conversion shall (if so required by the Company or the Security Registrar) be duly
endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory
to the Company, duly executed by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made to any Holder for any registration of, transfer or exchange of
Securities, but the Company, the Trustee or the Security Registrar may require payment by the
Holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be
imposed in connection with any registration of transfer or exchange of Securities.

     Neither the Company nor the Trustee nor any Security Registrar shall be required to exchange,
issue or register a transfer of (a) any Securities or portions thereof surrendered for conversion
pursuant to Article 5 or (b) any Securities or portions thereof tendered for repurchase (and not
withdrawn) pursuant to Section 4.01.

     Section 2.09. Global Securities. The following provisions shall apply to Global Securities:

     (a) Each Global Security authenticated under this Indenture shall be registered in the name of
the Depositary or a nominee thereof and delivered to the Depositary or a nominee thereof or
custodian for the Global Securities therefor, and each such Global Security shall constitute a
single Security for all purposes of this Indenture.

     (b) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for Securities registered, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary or a nominee thereof
unless the Depositary (x) has notified the Company that it is unwilling or unable to continue as
Depositary for such Global Security or (y) has ceased to be a clearing agency registered under the
Exchange Act, and a successor depositary has not been appointed by the Company within 90 calendar
days. Any Global Securities exchanged pursuant to this Section 2.09(b) shall be so exchanged in
whole and not in part.

     (c) In addition, Physical Securities will be issued in exchange for beneficial interests in a
Global Security upon request by or on behalf of the Depositary in accordance with customary
procedures following the request of a beneficial owner seeking to enforce its rights under the
Securities or this Indenture upon the occurrence and during the continuance of an Event of Default.

19

 

     (d) Securities issued in exchange for a Global Security or any portion thereof pursuant to
Section 2.09(b) or Section 2.09(c) shall be issued in definitive, fully registered form, without
interest coupons, shall have an aggregate principal amount equal to that of such Global Securities
or portion thereof to be so exchanged, shall be registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear any legends required hereunder. Any
Global Securities to be exchanged shall be surrendered by the Depositary to the Trustee, as
Security Registrar; provided that pending completion of the exchange of a Global Security, the
Trustee acting as Custodian for the Global Securities for the Depositary or its nominee with
respect to such Global Securities, shall reduce the principal amount thereof, by an amount equal to
the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records
of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make
available for delivery the Securities issuable on such exchange to or upon the written order of the
Depositary or an authorized representative thereof.

     (e) In the event of the occurrence of any of the events specified in Section 2.09(b) above or
upon any request described in Section 2.09(c), the Company will promptly make available to the
Trustee a sufficient supply of Physical Securities in definitive, fully registered form, without
interest coupons.

     (f) Neither any members of, or participants in, the Depositary (“Agent Members”) nor any other
Persons on whose behalf Agent Members may act shall have any rights under this Indenture with
respect to any Global Securities registered in the name of the Depositary or any nominee thereof,
and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner and Holder of such Global
Securities for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or such
nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other
Person on whose behalf an Agent Member may act, the operation of customary practices of such
Persons governing the exercise of the rights of a Holder of any Securities.

     (g) At such time as all interests in a Global Security have been repurchased, converted,
cancelled or exchanged for Securities in certificated form, such Global Security shall, upon
receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions
existing between the Depositary and the Custodian for the Global Security. At any time prior to
such cancellation, if any interest in a Global Security is redeemed, repurchased, converted,
cancelled or exchanged for Securities in certificated form, the principal amount of such Global
Security shall, in accordance with the standing procedures and instructions existing between the
Depositary and the Custodian for the Global Security, be appropriately reduced, and an endorsement
shall be made on such Global Security, by the Trustee or the Custodian for the Global Security, at
the direction of the Trustee, to reflect such reduction.

     Section 2.10. Transfer Restrictions. Subject to the last two paragraphs of this Section
2.10, prior to the date upon which the Restricted Security Legend is removed from any Security (the
“Resale Restriction Termination Date,” which shall have a correlative meaning in respect

20

 

of any Restricted Common Stock) any certificate evidencing such Security (and all securities
issued in exchange therefor or substitution thereof, including Common Stock, if any, issued upon
conversion thereof, which shall bear the legend set forth in the form of Security set forth in
Exhibit B hereto, if applicable) shall bear a legend in the form identified as the
“Restricted Security Legend” (the “Restricted Security Legend”) in the form of Security set forth
in Exhibit A hereto and, unless such Security (or such Common Stock) has been sold pursuant
to a registration statement that has been declared effective under the Securities Act (and which
continues to be effective at the time of such transfer) or sold pursuant to Rule 144 or any similar
provision then in force, or unless otherwise agreed by the Company in writing, with written notice
thereof to the Trustee.

     Every Security (and all securities issued in exchange therefor or in substitution thereof)
that bears or is required under this Section 2.10 to bear the legend required by this Section 2.10
(together with any Common Stock issued upon conversion of the Securities and required to bear the
legend set forth in Exhibit B hereto, collectively, the “Restricted Securities”) shall be
subject to the restrictions on transfer set forth in this Section 2.10 and such legends, unless
such restrictions on transfer shall be waived by written consent of the Company, and the Holder of
any Restricted Securities, by such Holder’s acceptance thereof, agrees to be bound by all such
restrictions on transfer. As used in this Section 2.10, the term “transfer” means any sale,
pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest
therein.

     So long as the Securities are represented by Global Securities that are held by or on behalf
of the Depositary only, the Company may accomplish any delegending of such Securities by:

     (i) instructing the Trustee to remove the Restricted Security Legend from the
Securities and instructing the transfer agent for the Common Stock to remove the Restricted
Stock Legend from the Common Stock issued upon conversion of the Securities;

     (ii) notifying Holders of the Securities and Common Stock issued upon conversion of the
Securities that the Restricted Security Legend and Restricted Stock Legend have been removed
or deemed removed;

     (iii) notifying the Trustee, the transfer agent for the Common Stock and DTC to change
the CUSIP number for the Securities and the Common Stock issued upon conversion of the
Securities to the applicable unrestricted CUSIP number; and

     (iv) complying with the applicable procedures of the Depositary for delegending.

     Any Security (or security issued in exchange or substitution therefor) that has been
transferred, replaced or exchanged on or after the Resale Restriction Termination Date or that has
been transferred pursuant to a registration statement that has been declared effective under the
Securities Act may, upon surrender of such Security to the Registrar for exchange in accordance
with the provisions of this Section 2.10, be exchanged for a new Security or

21

 

Securities, of like tenor and aggregate principal amount, which shall not bear the Restricted
Security Legend required by this Section 2.10.

     Section 2.11. Responsibilities and Obligations of the Trustee. The Trustee shall have no
responsibility or obligation to any Agent Members or any other Person with respect to the accuracy
of the books or records, or the acts or omissions, of the Depositary or its nominee or of any
participant or member thereof, with respect to any ownership interest in the Securities or with
respect to the delivery to any Agent Member or other Person (other than the Depositary) of any
notice or the payment of any amount, under or with respect to such Securities. All notices and
communications to be given to the Holders of Securities and all payments to be made to Holders of
Securities under the Securities shall be given or made only to or upon the order of the registered
Holders of Securities (which shall be the Depositary or its nominee in the case of a Global
Security). The rights of beneficial owners in any Global Securities shall be exercised only
through the Depositary subject to the customary procedures of the Depositary. The Trustee may rely
and shall be fully protected in relying upon information furnished by the Depositary with respect
to its Agent Members.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Securities (including any transfers between or among Agent
Members) other than to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof.

     Section 2.12. Replacement Securities. If a mutilated Security is surrendered to the Security
Registrar or if the Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
if the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the Holder
(i) notifies the Company or the Trustee within a reasonable time after he has notice of such loss,
destruction or wrongful taking and the Security Registrar does not register a transfer prior to
receiving such notification, (ii) makes such request to the Company or the Trustee prior to the
Security being acquired by a protected purchaser as defined in Section 8-303 of the Uniform
Commercial Code (a “protected purchaser”) and (iii) satisfies any other reasonable requirements of
the Trustee and the Company. If required by the Trustee or the Company, such Holder shall furnish
an indemnity bond sufficient in the judgment of the Trustee to protect the Company, the Trustee,
the Paying Agent, the Conversion Agent and the Security Registrar from any loss that any of them
may suffer if a Security is replaced. The Company and the Trustee may charge the Holder for their
expenses in replacing a Security. In case any Security which has matured or is about to mature or
has been properly tendered for repurchase on a Fundamental Change Repurchase Date (and not
withdrawn) or is to be converted into Common Stock, shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of
or convert or authorize the conversion of the same (without surrender thereof except in the case of
a mutilated Securities), as the case may be, if the applicant for such payment or conversion shall
furnish to

22

 

the Company, to the Trustee and, if applicable, to such authenticating agent such security or
indemnity as may be required by them to save each of them harmless for any loss, liability, cost or
expense caused by or in connection with such substitution, and, in every case of destruction, loss
or theft, the applicant shall also furnish to the Company, the Trustee and, if applicable, any
Paying Agent or Conversion Agent evidence to their satisfaction of the destruction, loss or theft
of such Securities and of the ownership thereof.

     The provisions of this Section 2.12 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, lost,
destroyed or wrongfully taken Securities.

     Section 2.13. Outstanding Securities. Securities Outstanding at any time are all Securities
authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section 2.13 as not Outstanding. A Security does not
cease to be outstanding because the Company or an Affiliate of the Company holds the Security.

     If a Security is replaced pursuant to Section 2.12, it ceases to be Outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a
protected purchaser.

     If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Fundamental Change Repurchase Date or Stated Maturity Date money sufficient to pay all principal
and interest payable on that date with respect to the Securities (or portions thereof) to be
repurchased or maturing, as the case may be, and the Paying Agent is not prohibited from paying
such money to the Holders on that date pursuant to the terms of this Indenture, then on and after
that date such Securities (or portions thereof) cease to be Outstanding and interest on them ceases
to accrue.

     Section 2.14. Temporary Securities. Pending the preparation of Securities in certificated
form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee
shall, upon the written request of the Company, authenticate and deliver temporary Securities
(printed or lithographed). Temporary Securities shall be issuable in any authorized denomination,
and substantially in the form of the Securities in certificated form, but with such omissions,
insertions and variations as may be appropriate for temporary Security, all as may be determined by
the Company. Every such temporary Securities shall be executed by the Company and authenticated by
the Trustee or such authenticating agent upon the same conditions and in substantially the same
manner, and with the same effect, as the Securities in certificated form. Without unreasonable
delay, the Company will execute and deliver to the Trustee or such authenticating agent Securities
in certificated form and thereupon any or all temporary Securities may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section 3.02 and the
Trustee or such authenticating agent shall authenticate and make available for delivery in exchange
for such temporary Securities an equal aggregate principal amount of Securities in certificated
form. Such exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Securities shall in all respects be entitled to the
same benefits and

23

 

subject to the same limitations under this Indenture as Securities in certificated form
authenticated and delivered hereunder.

     Section 2.15. Cancellation. To the extent permitted by law, the Company may from time to
time repurchase the Notes in open market purchases or negotiated transactions without prior notice
to Holders. The Company shall surrender any Notes repurchased by it for cancellation and any such
repurchased Notes shall be deemed to be no longer Outstanding. The Security Registrar and the
Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else shall cancel all Securities surrendered
for registration of transfer, exchange, payment or cancellation and deliver canceled Securities to
the Company pursuant to written direction by an Officer. The Company may not issue new Securities
to replace Securities it has redeemed, paid or delivered to the Trustee for cancellation. The
Trustee shall not authenticate Securities in place of canceled Securities other than pursuant to
the terms of this Indenture.

     Section 2.16. CUSIP and ISIN Numbers. The Company in issuing the Securities may use “CUSIP”
and “ISIN” numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” and “ISIN”
numbers in notices of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

     Section 2.17. Additional Securities. The Company may, from time to time without the consent
of the Holders of Outstanding Securities, issue additional Securities pursuant to this Indenture
(“Additional Securities”) with the same terms and with the same CUSIP number as the Securities
issued on the date of this Indenture; provided that such Additional Securities are issued pursuant
to a “qualified reopening” or are treated as issued without original issue discount for U.S.
federal income tax purposes. The Securities originally issued pursuant to the Purchase Agreement
and any Additional Securities shall be treated as a single class for all purposes under this
Indenture, including waivers, amendments, offers to purchase and U.S. federal income tax purposes.
No Additional Securities may be issued if on the Issue Date therefor any Event of Default has
occurred and is continuing.

ARTICLE 3

Particular Covenants of the Company

     Section 3.01. Payment of Principal and Interest. The Company covenants and agrees that it
shall duly and punctually pay or cause to be paid the principal of, and interest on, each of the
Securities at the places, at the respective times and in the manner provided herein and in the
Securities.

     Section 3.02. Maintenance of Office or Agency. The Company shall maintain an office or
agency in the Borough of Manhattan, The City of New York, where the Securities may be

24

 

surrendered for registration of transfer or exchange or for presentation for payment or for
conversion and where notices and demands to or upon the Company in respect of the Securities 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, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

     The Company may also from time to time designate co-registrars and one or more offices or
agencies where the Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations.

     The Company will give prompt written notice of any such designation or rescission and of any
change in the location of any such other office or agency.

     The Company hereby initially designates the Trustee as Paying Agent, Security Registrar,
Custodian and Conversion Agent at the Corporate Trust Office for each of the aforesaid purposes.

     So long as the Trustee is the Security Registrar, the Trustee agrees to mail, or cause to be
mailed, the notices set forth in Section 8.11(a) and the third paragraph of Section 8.12. If
co-registrars have been appointed in accordance with this Section, the Trustee shall mail such
notices only to the Company and the Holders of Securities it can identify from its records.

     Section 3.03. Provisions as to Paying Agent. (a) If the Company shall appoint a Paying Agent
other than the Trustee, or if the Trustee shall appoint such a Paying Agent, the Company will cause
such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall
agree with the Trustee, subject to the provisions of this Section 3.03:

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of or interest, on the Securities (whether such sums have been paid to it by the
Company or by any other obligor on the Securities) in trust for the benefit of the Holders
of the Securities;

     (ii) that it will give the Trustee notice of any failure by the Company (or by any
other obligor on the Securities) to make any payment of the principal of or interest on the
Securities when the same shall be due and payable; and

     (iii) that at any time during the continuance of an Event of Default, upon request of
the Trustee, it will forthwith pay to the Trustee all sums so held in trust.

     The Company shall, on or before each due date of the principal of or interest on the
Securities, deposit with the paying agent a sum (in funds which are immediately available on the
due date for such payment) sufficient to pay such principal or interest, and (unless such paying

25

 

agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such
action; provided, however, that if such deposit is made on the due date, such deposit shall be
received by the paying agent by 11:00 a.m. New York City time, on such date.

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

     (c) Anything in this Section 3.03 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying
agent hereunder as required by this Section 3.03, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent to the Trustee,
the Company or such paying agent shall be released from all further liability with respect to such
sums.

     (d) Anything in this Section 3.03 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 3.03 is subject to Section 10.03 and Section 10.04.

     The Trustee shall not be responsible for the actions of any other paying agents (including the
Company if acting as its own paying agent) and shall have no control of or liability for any funds
held by such other paying agents.

     Section 3.04. Rule 144A Information Requirement. Until the first anniversary of the last
Issue Date, the Company covenants and agrees that it shall, during any period in which it is not
subject to Section 13 or 15(d) under the Exchange Act, make available to any Holder or beneficial
holder of Securities or any Common Stock issued upon conversion thereof which continue to be
Restricted Securities in connection with any sale thereof and any prospective purchaser of
Securities or such Common Stock designated by such Holder or beneficial holder, the information
required pursuant to Rule 144A(d)(4) under the Securities Act upon the request of any Holder or
beneficial holder of the Securities or such Common Stock, all to the extent required from time to
time to enable such Holder or beneficial holder to sell its Securities or Common Stock without
registration under the Securities Act within the limitation of the exemption provided by Rule 144A,
as such rule may be amended from time to time.

     Section 3.05. Resale of Certain Securities. The Company shall not, and shall not permit any
of its “affiliates” (as defined under Rule 144 or any successor provision thereto) to, resell any
Securities that have been reacquired by any of them. The Trustee shall have no responsibility in
respect of the Company’s performance of its agreement in the preceding sentence.

     Section 3.06. Book-Entry System. If the Securities cease to trade in the Depositary’s
book-entry settlement system, the Company covenants and agrees that it shall use reasonable
efforts to make such other book entry arrangements that it determines are reasonable for the
Securities.

26

 

     Section 3.07. Compliance Certificate. The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year of the Company, commencing with the fiscal year ending
December 31, 2009, an Officers’ Certificate indicating whether the signers thereof know of any
event has occurred and is continuing, which is or after notice of lapse of time or both would
become an Event of Default, and if such an event has occurred and is continuing, specifying each
such event known to such officers and the status thereof.

     The Company shall deliver to the Trustee, as soon as possible and in any event within 30 days
after the Company becomes aware of the occurrence of any Event of Default or an event which, with
notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate
setting forth the details of such Event of Default or Default, its status and the action which the
Company proposes to take with respect thereto.

     Any notice required to be given under this Section 3.07 shall be delivered to a Responsible
Officer of the Trustee at its Corporate Trust Office.

     Section 3.08. Payment of Additional Interest. (a) The Company will make a one-time payment
to each Holder of Notes of 0.50% of such Holder’s aggregate principal amount of Notes (such
one-time payment, together with any amounts payable pursuant to the immediately succeeding
paragraph, “Additional Interest”) if at any time during the six months to one year period following
the last original Issue Date of the Notes, it fails to timely file any document or report that it
is required (giving effect to any grace period provided by Rule 12b-25) to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (other than reports on Form
8-K); provided that the Company will have 14 days, in the aggregate, to cure all such missed
filings before such payment shall become due. The Additional Interest will be payable on the
Interest Payment Date following the late filing.

     (b) Further, if, and for so long as, the Restrictive Security Legend on the Notes has not been
removed, or the Notes are not otherwise freely tradable by Holders other than the Company’s
Affiliates (without restrictions pursuant to U.S. securities law or the Restrictive Security
Legend), in each case as of the 375th day after the last original Issue Date of the Notes (each, a
“Restricted Transfer Default”), the Company shall either (i) pay Additional Interest on the Notes
at a rate equal to 0.50% per annum of the principal amount of Notes Outstanding while a Restricted
Transfer Default is continuing until all Restricted Transfer Defaults shall cease or until the
Notes are freely tradable pursuant to the next clause or (ii) designate an effective shelf
registration statement useable for the resale of the Notes or any Common Stock issuable upon
conversion of the Notes, in which case Additional Interest shall not accrue for each day on which
such registration statement remains effective and useable by Holders for the resale of the Notes
and any Common Shares. Additional Interest shall be payable in arrears on each Interest Payment
Date following accrual in the same manner as regular interest on the Notes. For the avoidance of
doubt, payment of Additional Interest as set forth in this Section 3.08(b) shall be the sole remedy
to Holders in the event that the Company fails to remove the Restrictive Security
Legend and the Notes are not otherwise freely tradable by Holders other than the Company’s
Affiliates.

27

 

ARTICLE 4

Repurchase of Notes

     Section 4.01. Right To Require Repurchase Upon a Fundamental Change. (a) If a Fundamental
Change 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 thereof that is equal
to $1,000 or an integral multiple of $1,000 principal amount, for cash, on a date (the “Fundamental
Change Repurchase Date”) of the Company’s choosing that is not less than 20 calendar days nor more
than 35 calendar days after the date of the Fundamental Change Repurchase Right Notice, at a
repurchase price (the “Fundamental Change Repurchase Price”) equal to 100% of the principal amount
thereof, plus accrued and unpaid interest thereon to, but not including, the Fundamental Change
Repurchase Date, unless such Fundamental Change Repurchase Date falls after a Record Date for the
payment of interest 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 Record Date.

     Notwithstanding the foregoing, no Holder shall have the right to require the Company to
repurchase any of its Notes under clause (2) of the definition of Fundamental Change (and the
Company shall not be required to deliver the Fundamental Change Repurchase Notice incidental
thereto) if at least 90% of the consideration paid for the 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 under clause (2) of the definition thereof consists of shares of common stock
traded on the New York Stock Exchange, the NASDAQ Global Market, the NASDAQ Global Select Market or
the American Stock Exchange (or any of their respective successors) (or will be so traded or quoted
immediately following the completion of the merger or consolidation or such other transaction) and,
as a result of the completion of the merger or consolidation or such other transaction the
Securities become convertible into cash (in respect of the Principal Portion) and, if applicable,
such shares of such common stock pursuant to Section 5.12.

     Repurchases of Notes under this Section 4.01 shall be made, at the option of the Holder
thereof, upon:

     (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder of a duly completed notice (the “Fundamental Change Repurchase Notice”) in the form
set forth on the reverse of the Note on or before the Business Day prior to the Fundamental
Change Repurchase Date (the “Fundamental Change Expiration Time”); and

28

 

     (ii) delivery or book-entry transfer of the Notes to the Trustee (or other Paying Agent
appointed by the Company) at any time after delivery of the Fundamental Change Repurchase
Notice (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 Fundamental Change Repurchase Price therefor.

     The Fundamental Change 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;

provided, however, that if the Notes are not Physical Notes, the Fundamental Change Repurchase
Notice must comply with applicable Depositary procedures.

     Any repurchase by the Company contemplated pursuant to the provisions of this Section 4.01
shall be consummated by the delivery of the consideration to be received by the Holder on the later
of (i) the Fundamental Change Repurchase Date and (ii) the time of the book-entry transfer or the
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 Fundamental Change Repurchase Notice or written notice of withdrawal
thereof in accordance with the provisions of subsection (c) of this Section 4.01.

     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 Fundamental Change, but on or before the 10th calendar day
following such occurrence, the Company shall provide to all Holders of the Notes and the Trustee
and Paying Agent a notice (the “Fundamental Change Repurchase Right Notice”) of the occurrence of
such Fundamental Change and of the repurchase right, if any, at the option of the Holders arising
as a result thereof. Such mailing shall be by first class mail. Simultaneously with providing such
Fundamental Change Repurchase Right Notice, the Company shall publish a notice containing the
information included therein in a newspaper of general circulation in The

29

 

City of New York or on the Company’s website or through such other public medium as the
Company may use at such time.

     Each Fundamental Change Repurchase Right Notice shall specify (if applicable):

     (i) the events causing a Fundamental Change;

     (ii) the date of the Fundamental Change;

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

     (iv) the Fundamental Change Repurchase Price, if applicable;

     (v) the Fundamental Change 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 Fundamental Change Repurchase Notice has
been delivered by a Holder may be converted only if the Holder withdraws the Fundamental
Change Repurchase Notice in accordance with the terms of this Indenture;

     (ix) that the Holder must exercise the repurchase right on or prior to the Fundamental
Change Expiration Time;

     (x) that the Holder shall have the right to withdraw any Notes surrendered for
repurchase prior to the Fundamental Change Expiration Time; and

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

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 4.01.

     (c) A Fundamental Change Repurchase Notice may be withdrawn, in whole or in part, by means of
a written notice of withdrawal delivered to the Paying Agent in accordance with the Fundamental
Change Repurchase Right Notice at any time prior to the Fundamental Change Expiration Time,
specifying:

     (i) the principal amount of the Notes with respect to which such notice of withdrawal
is being submitted,

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

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

provided, however, that if the Notes are not in certificated form, the notice must comply with
appropriate procedures of the Depositary.

     (d) On or prior to 11:00 a.m., New York City time, on the Fundamental Change 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) an amount of
money sufficient to repurchase on the Fundamental Change Repurchase Date all of the Notes to be
repurchased on such date at the Fundamental Change 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 Fundamental Change Expiration Time
shall be made on the later of (x) the Fundamental Change Repurchase Date with respect to such Note
(provided the Holder has satisfied the conditions to the payment of the Fundamental Change
Repurchase Price in this Section 4.01), 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 4.01 by mailing checks for the amount payable to the Holders of
such Notes entitled thereto as they shall appear in the Security Register; provided, however, that
payments to the Depositary shall be made by wire transfer of immediately available funds to the
account of the Depositary or its nominee. The Trustee shall, promptly after such payment and upon
written demand by the Company, return to the Company any funds in excess of the Fundamental Change
Repurchase Price.

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

     (f) In connection with any repurchase of Notes pursuant to this Article 4, the Company hereby
agrees to:

     (i) comply with the provisions of Rule 13e-1, 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.

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     (g) No Notes may be repurchased at the option of Holders upon a Fundamental Change if the
principal amount of the Notes has been accelerated, and such acceleration has not been rescinded,
on or prior to such date (except in the case of an acceleration resulting from the Company’s
default in the payment of the Fundamental Change Repurchase Price with respect to such Notes).

ARTICLE 5

Conversion

     Section 5.01 . Conversion Privilege and Conversion Rate. (a) Subject to the conditions
described in subsections (i), (ii), and (iii) below, and upon compliance with the provisions of
this Article 5, 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 principal amount or an integral multiple thereof)
of such Note at any time prior to the close of business on the Scheduled Trading Day immediately
preceding March 1, 2014, at the Conversion Rate (subject to adjustment as provided in this
Indenture) per $1,000 principal amount of the Note (the “Conversion Obligation”) under the
circumstances and during the periods set forth below. On and after March 1, 2014, regardless of the
conditions described in subsections (i), (ii) and (iii) below, and upon compliance with the
provisions of this Article 5, 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 principal amount or an integral
multiple thereof) of Notes at the applicable Conversion Rate at any time prior to the close of
business on the third Scheduled Trading Day immediately preceding the Stated Maturity Date.

     (i) The Notes shall be convertible prior to March 1, 2014, during the five Business Day
period after any five consecutive Trading Day period (the “Measurement Period”) in which the
Trading Price per $1,000 in principal amount of the Notes, determined as set forth below,
for each Trading Day of the Measurement Period was less than 98% of the product of (x) the
Last Reported Sale Price of the Common Stock and (y) the applicable Conversion Rate for the
Notes for such Trading Day (the “Trading Price Condition”). The Bid Solicitation Agent shall
have no obligation to determine the Trading Price of the Notes and the Company shall have no
obligation to make such request unless a Holder provides the Company with reasonable
evidence that the Trading Price per $1,000 in principal amount of the Notes would be less
than 98% of the product of (a) the Last Reported Sale Price of the Common Stock and (b) the
applicable Conversion Rate, in which case and at such time the Company shall instruct the
Bid Solicitation Agent 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
$1,000 in principal amount of the Notes is greater than or equal to 98% of the product of
(a) the Last Reported Sale Price of the Common Stock and (b) the applicable Conversion Rate.
If the Company does not, when obligated to do so pursuant to this clause (i), instruct the
Bid Solicitation Agent to determine the Trading Price of the Notes, or if the Company so
instructs the Bid Solicitation Agent, but the Bid Solicitation Agent does not make such
determination, then the Trading Price Condition shall be deemed to have been satisfied until
such failure has been cured. If the Trading Price Condition has

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been met, the Company shall promptly notify the Holders of the Notes. If, at any time
after the Trading Price Condition has been met, the Trading Price per $1,000 in principal
amount of the Notes is greater than 98% of the product of (a) the Last Reported Sale Price
of the Common Stock and (b) the applicable Conversion Rate for such date, the Company shall
so promptly notify the Holders of the Notes, and the Bid Solicitation Agent 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 5.01(a)(i).

     (ii) The Notes shall be convertible prior to March 1, 2014 during any calendar quarter
after the calendar quarter ending December 31, 2009 (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 each such Trading Day, all as determined by the Company and communicated to the
Trustee (the “Stock Price Condition”). If the Stock Price Condition has been satisfied, the
Company shall promptly notify Holders of Notes.

     (iii) The Notes shall be convertible prior to March 1, 2014, as provided in subsections
(b), (c) and (d) of this Section 5.01.

     (b) If 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 60 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 the distribution; or

     (ii) distribute to all or substantially all holders of Common Stock the Company’s
assets (including cash), 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 5% of the Last Reported Sale Price of the Common Stock on the Trading
Day immediately preceding the declaration date for such distribution,

then, in either case, the Company shall notify Holders and the Trustee of such distribution and of
the resulting conversion right at least 65 Scheduled Trading Days prior to the Ex-Date for such
distribution. Once the Company has given such notice, Holders may surrender the Notes for
conversion at any time until the earlier of (x) the close of business on the Business Day
immediately prior to the Ex-Date for such distribution and (y) the date the Company announces that
such distribution will not take place, even if the Notes are not otherwise convertible at such
time. 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) of this Section 5.01(b) as if such Holder
held a number of shares of Common Stock equal to the applicable Conversion Rate, multiplied by the
principal amount (expressed in thousands) of Notes held by such Holder, without having to convert
its Notes.

33

 

     (c) If a transaction or event constituting a Fundamental Change occurs, a Holder may surrender
Notes for conversion at any time after the effective date of such transaction or event until (i)
the Fundamental Change Repurchase Date corresponding to such transaction or event or (ii) if there
is no such Fundamental Change Repurchase Date, 30 Scheduled Trading Days following the effective
date of such transaction or event and, upon such surrender the Holder may be entitled to an
increase in the Conversion Rate by Additional Shares of Common Stock, if any, as specified in
Section 5.02. If a transaction or event constituting a Fundamental Change occurs, the Company
shall notify, in the manner provided for in Section 1.06, each of the Holders and the Trustee of
the occurrence of any such transaction or event on the effective date of such transaction or event.

     (d) 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 property and assets (excluding a pledge of securities issued by any of the Company’s
Subsidiaries but, for the avoidance of doubt, not excluding any foreclosure thereon), in each case
pursuant to which the Common Stock would be converted into cash, securities and/or other property
that does not constitute a Fundamental Change, then the Holders shall have the right to convert
Notes at any time beginning on the earlier of (i) the date on which the Company gives notice or
makes a public announcement of such transaction and (ii) the effective date of such transaction,
and ending on the 20th Scheduled Trading Day following the effective date of such transaction. The
Company shall notify each of the Holders and the Trustee as soon as practicable of the anticipated
effective date of any such transaction to which the provisions of this Section 5.01(d) shall apply.

     Section 5.02 . Conversion Rate Adjustment Upon Certain Make-whole Fundamental Changes. (a)
If a Holder elects to convert Notes in connection with a Make-Whole Fundamental Change that occurs
prior to the Stated Maturity Date, the Conversion Rate applicable to each $1,000 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 pursuant
to this Section 5.02 in the case of a transaction constituting a Fundamental Change described in
clause (2) of such definition where 90% or more for the Common Stock (excluding cash payments for
fractional shares and cash payments made pursuant to dissenters’ appraisal rights) in such
transaction consists of shares of common stock traded on any of the New York Stock Exchange, the
NASDAQ Global Market, the NASDAQ Global Select Market or the American Stock Exchange (or any of
their respective successors) (or that will be so traded 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) and such shares of common stock pursuant to Section 5.12. Settlement of
Notes tendered for conversion to which Additional Shares shall be added to the Conversion Rate as
provided in this subsection shall be made pursuant to Section 5.04(d). For purposes of this Section
5.02, a conversion shall be deemed to be “in connection with” a Make-Whole Fundamental Change if
the related Conversion Date occurs on or after the Effective Date of such Make-Whole Fundamental
Change, until the related Fundamental Change Repurchase Date or, if there is no such Fundamental
Change Repurchase Date, 30 Scheduled Trading Days following such Effective Date (regardless of
whether the Notes are otherwise convertible because of the

34

 

conditions set forth in Section 5.01), as applicable. The Company shall notify Holders and
the Trustee of the occurrence of any such Make-Whole Fundamental Change on the Effective Date of
such transaction or event.

     (b) The number of Additional Shares by which the Conversion Rate shall be increased in the
event of a Make-Whole Fundamental Change shall be determined by the Company by reference to the
table attached as Schedule A hereto, based on the date on which the Make-Whole Fundamental Change
becomes effective (the “Effective Date”) and the Stock Price. The exact Stock Price and Effective
Dates may not be set forth in the table attached as Schedule A hereto, in which case:

     (i) if the 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 higher and lower Stock Price amounts and the two Effective Dates, as applicable,
based on a 365-day year;

     (ii) if the Stock Price is greater than $100.00 per share (subject to adjustment in the
same manner as set forth in paragraph (c) below), no Additional Shares shall be added to the
Conversion Rate; and

     (iii) if the Stock Price is less than $19.85 per share (subject to adjustment in the
same manner as set forth in paragraph (c) below), no Additional Shares shall be added to the
Conversion Rate.

Notwithstanding the foregoing, in no event shall the Conversion Rate exceed 50.3778 per $1,000 in
principal amount of Notes (subject to adjustments in the same manner as the Conversion Rate as set
forth in Section 5.06).

     (c) The Stock Prices set forth in the first column of the table in Schedule A hereto (i.e.,
the row headers) shall be adjusted by the Company as of any date on which the Conversion Rate of
the Notes is otherwise adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable
immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the
applicable Conversion Rate 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 attached as Schedule A hereto shall be adjusted in the same
manner as the Conversion Rate as set forth in Section 5.06 (other than by operation of an
adjustment to the Conversion Rate by adding Additional Shares).

     Section 5.03 . Exercise of Conversion Privilege. (a) Before any Holder of a Note shall be
entitled to convert the same as set forth above, such Holder shall (i) in the case of a Global
Note, comply with the procedures of the Depositary in effect at that time and, if required, pay
funds equal to interest payable on the next Interest Payment Date to which such Holder is not
entitled as set forth in Section 5.04(e) and, if required, pay all taxes or duties, if any, as set
forth in Section 5.09 and (ii) in the case of a Physical Note, (A) complete and manually sign and
deliver an irrevocable written notice to the Conversion Agent in the form set forth in Exhibit A

35

 

hereto (or a facsimile thereof) (a “Conversion Notice”) 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 all transfer or similar taxes, if any, as set forth in Section 5.09 and (D) if
required, pay funds equal to interest payable on the next Interest Payment Date to which such
Holder is not entitled as set forth in Section 5.04(e). A Note shall be deemed to have been
converted immediately prior to the close of business on the date (the “Conversion Date”) that the
Holder has complied with the requirements set forth in this Section 5.03.

     Notwithstanding the foregoing, no Conversion Notice with respect to any Notes may be tendered
by a Holder thereof if such Holder has also tendered a Fundamental Change Repurchase Notice and not
validly withdrawn such Fundamental Change Repurchase Notice in accordance with the applicable
provisions of Article 4.

     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.

     (b) 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.

     (c) 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.

     Section 5.04 . Settlement of Conversion Obligation. (a) Subject to clause (c) below, the
Company shall satisfy the Conversion Obligation with respect to each $1,000 in principal amount of
Notes tendered for conversion, on the third Business Day immediately following the last VWAP
Trading Day of the related Observation Period, by paying cash and delivering shares of fully paid
Common Stock, if applicable, determined for each VWAP Trading Day of such Observation Period as
follows (the “Daily Settlement Amount”):

     (i) an amount of cash equal to the lesser of: (x) one-sixtieth (1/60th) of $1,000 and
(y) the Daily Conversion Value relating to such VWAP Trading Day (such cash amount, the
“Principal Portion”); and

     (ii) if such Daily Conversion Value exceeds one-sixtieth (1/60th) of $1,000, a number
of shares of Common Stock (the “Daily Share Amount”), subject to the

36

 

Company’s right to pay cash in lieu of all or a portion of the Daily Share Amount in
accordance with Section 5.04(b), equal to (A) the difference between such Daily Conversion
Value and the Principal Portion, divided by (B) the Daily VWAP of the Common Stock for such
VWAP Trading Day.

The Daily Settlement Amounts shall be determined by the Company promptly following the last VWAP
Trading Day of the Observation Period.

     (b) The Company may elect, subject to the requirements set forth in this clause (b), to
deliver cash in lieu of all or a portion of the Daily Share Amount as set forth above. Subject to
obtaining the approval of its stockholders as set forth below, by the close of business on the VWAP
Trading Day prior to the first Scheduled Trading Day of the applicable Observation Period, the
Company may specify a percentage of the Daily Share Amount that will be settled in cash (the “Cash
Percentage”) and the Company shall notify Holders of such Cash Percentage through written notice to
the Trustee (the “Cash Percentage Notice”). With respect to any Notes that are converted on or
after March 1, 2014, the Cash Percentage that the Company specifies for the corresponding
Observation Period shall apply to all such conversions. If the Company timely elects to specify a
Cash Percentage, (i) the amount of cash that the Company shall pay in lieu of the applicable
portion of the Daily Share Amount in respect of each VWAP Trading Day in the applicable Observation
Period shall equal: (A) the Cash Percentage, multiplied by (B) the Daily Share Amount for such
Trading Day (assuming the Company had not specified a Cash Percentage), multiplied by (C) the Daily
VWAP for such VWAP Trading Day and (ii) the number of shares of Common Stock deliverable in respect
of each VWAP Trading Day in the applicable Observation Period (in lieu of the full Daily Share
Amount for such Trading Day) shall be a percentage of the Daily Share Amount (assuming the Company
had not specified a Cash Percentage) equal to 100% minus the Cash Percentage. If (x) the Company
does not specify a Cash Percentage or (y) the Company has not obtained the stockholder approval
referred to below, the Company must settle the entire Daily Share Amount for each VWAP Trading Day
in such Observation Period in cash as if it had specified a Cash Percentage of 100%. The Company
may, at its option, revoke any Cash Percentage Notice through written notice to the Trustee by the
close of business on the VWAP Trading Day prior to the first Scheduled Trading Day of the
applicable Observation Period.

     The Company shall settle all conversions of Notes in cash as set forth in the immediately
preceding paragraph unless prior to any such conversion the Company shall have obtained the
approval of its stockholders to issue the full number of shares of Common Stock that would
constitute the Daily Share Amount in respect of all Notes, in which case the Company may specify a
Cash Percentage in respect of any such conversion. The Company shall notify Holders through
written notice to the Trustee upon obtaining any such approval.

     (c) Notwithstanding clauses (a) and (b) above, if, following a Make-Whole Fundamental Change,
Notes are surrendered for conversion following the related Effective Date and the Reference
Property consists solely of cash as set forth in Section 5.12, then the Company shall satisfy the
related Conversion Obligations by paying, on the third Business Day following the Conversion Date,
cash in an amount equal to the applicable Conversion Rate multiplied by the Stock Price.

37

 

     (d) Any cash amounts due upon conversion by a Holder of Notes surrendered for conversion shall
be paid by the Company to such Holder, or such Holder’s nominee or nominees. In addition, the
Company shall issue, or shall cause to be issued, any shares of Common Stock due upon conversion to
such Holder, or such Holder’s nominee or nominees, certificates or a book-entry transfer through
the Depositary (together with any cash in lieu of fractional shares).

     (e) Upon conversion, a Holder shall not receive any separate cash payment for accrued and
unpaid interest except as set forth in this clause (e). 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 to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding the preceding two
sentences, if Notes are converted after the close of business on a Record Date for the payment of
interest, Holders of such Notes at the close of business on the 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 the close of business on any
Record Date to the open of business on the immediately following Interest Payment Date must be
accompanied by funds equal to the amount of interest payable on the Notes so converted, except that
no such payment need be made:

     (i) if the Company has specified a Fundamental Change Purchase Date that is after a
Record Date and on or prior to the Business Day immediately following the corresponding
Interest Payment Date;

     (ii) to the extent of any overdue interest, if any overdue interest remains unpaid at
the time of conversion with respect to such Notes; or

     (iii) in respect of any conversion for which the related Conversion Date occurs after
the close of business on the Record Date immediately preceding the Stated Maturity Date.

Except as described above, no payment or adjustment shall be made for accrued interest on converted
Notes.

     Section 5.05 . 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.

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     Section 5.06 . Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from
time to time by the Company as follows, except 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 and upon the same terms as holders of the Common Stock participate) in any 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) If the Company issues shares of Common Stock as a dividend or distribution on shares of
Common Stock, or if the Company effects a share split or share combination, the Conversion Rate
shall be adjusted based on the following formula:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such dividend or distribution or the effective date of such
share split or combination, as the case may be;

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

     OS1 = the number of shares of Common Stock that will be outstanding (including as a
result of such share split or combination, as the case may be) as of the close of business on the
Business Day prior to 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; and

     OS0 = the number of shares of Common Stock outstanding immediately prior to the
close of business on the Business Day prior to the Ex-Date for such dividend or distribution or the
effective date of such share split or combination, as the case may be.

     Such adjustment shall become effective immediately after the close of business on the Business
Day prior to 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 5.06(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 Company 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.

39

 

     (b) If the Company distributes to all or substantially all holders of its outstanding shares
of Common Stock any rights or warrants entitling them for a period of not more than 60 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; provided that the Conversion Rate shall be readjusted to
the extent that such rights or warrants are not exercised prior to their expiration:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such distribution;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the Business Day prior to the Ex-Date for such distribution;

     OS0 = the number of shares of Common Stock outstanding immediately prior to the
close of business on the Business Day 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 after 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

40

 

on exercise or conversion thereof, the value of such consideration, if other than cash, to be
determined by the Board of Directors.

     (c) If the Company distributes shares of its Capital Stock, evidences of its indebtedness or
other assets or property of the Company to all or substantially all holders of its Common Stock,
excluding

     (i) dividends or distributions as to which an adjustment was effected pursuant to
Section 5.06(a) or Section 5.06(b),

     (ii) dividends or distributions paid exclusively in cash, and

     (iii) Spin-Offs described below in this subsection (c);

(any of such shares of Capital Stock, evidences of indebtedness or other assets 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:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such distribution;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the Business Day prior to the Ex-Date for such distribution;

     SP0 = 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; and

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

     Such adjustment shall become effective immediately after the close of business on the Business
Day prior to 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 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 record 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

41

 

declared. If the Board of Directors determines “FMV” for purposes of this Section 5.06(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 10 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 in shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit of the
Company (a “Spin-Off”), the Conversion Rate shall be increased based on the following formula:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
last day of the Valuation Period;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the last day of the Valuation Period;

     FMV0 = the average of the Last Reported Sale Prices of the Capital Stock or similar
equity interest distributed to holders of 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 (such period, the “Valuation Period”); and

     MP0 = the average of the Last Reported Sale Prices of the Common Stock over the
Valuation Period.

     Such adjustment to the Conversion Rate under the foregoing provisions of this subsection (c)
shall be made immediately after the close of business on the last day of the Valuation Period, with
retroactive effect to the open of business on the effective date for the applicable Spin-Off.

     To the extent that the final day of the related Observation Period occurs during the Valuation
Period, the Company shall satisfy the Conversion Obligation on the third Business Day following the
last day of the Valuation Period.

     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
subsection (c) (and no adjustment to the Conversion Rate under this subsection (c) shall be

42

 

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 Ex-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 subsection (c) 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 5.06, 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 5.06 applies or rights or warrants to
subscribe for or purchase shares of Common Stock to which subsection (b) of this Section 5.06
applies, shall be deemed instead to be (1) a dividend or distribution of the shares of Capital
Stock, evidences of indebtedness or other assets or property, other than such shares of Common
Stock or such 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 5.06 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) of this Section 5.06 and (B)
any shares of Common Stock included in such dividend or distribution shall not be deemed
“outstanding immediately prior to the close of business on the Business Day prior to the Ex-Date
for such dividend or distribution or the effective date of such share split or combination, as the
case may be” within the meaning of subsection (a) of this Section 5.06 or “outstanding immediately
prior to the close of business on the Business Day prior to the Ex-Date for such distribution”
within the meaning of subsection (b) of this Section 5.06.

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     (d) If the Company pays 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:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such distribution;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the Business Day prior to 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.

     Such adjustment shall become effective immediately after the close of business on the Business
Day prior to 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 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.

     (e) If the Company or any of its Subsidiaries make a payment in respect of a tender offer or
exchange offer for the Common Stock, to the extent that the cash and value of any other
consideration included in the payment per share of 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 (as it may be amended), the
Conversion Rate shall be increased based on the following formula:

     

     where,

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     CR1 = the Conversion Rate in effect immediately after the close of business on the
Trading Day next succeeding the date such tender or exchange offer expires;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the Trading Day next succeeding the date such tender or exchange offer expires;

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

     SP1 = the Last Reported Sale Price of Common Stock on the Trading Day next
succeeding the date such tender or exchange offer expires;

     OS1 = the number of shares of Common Stock outstanding immediately after the close
of business on the Business Day prior to the date such tender or exchange offer expires (after
giving effect to such tender offer or exchange offer); and

     OS0 = the number of shares of Common Stock outstanding immediately prior to the
close of business on the Business Day prior to the date such tender or exchange offer expires
(prior to giving effect to such tender offer or exchange offer).

     Such adjustment shall become effective immediately after the 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 is permanently prevented by applicable law from effecting any such purchase or all 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.

     No adjustment to the Conversion Rate shall be made 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.

     For purposes of this Section 5.06, 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) For the avoidance of doubt, for purposes of subsections (a), (b), (c), (d) and (e) of this
Section 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 any of subsections (a), (b), (c), (d) or (e) references in those
subsections 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

45

 

reclassification. The above provisions of this paragraph shall similarly apply to successive
reclassifications.

     (g) In addition to those required by subsections (a), (b), (c), (d) and (e) of this Section
5.06, and to the extent permitted by applicable law and the rules of the New York Stock Exchange or
any other securities exchange or market in which the Common Stock is then listed, the Company in
its sole discretion from time to time may increase the Conversion Rate by any amount for a period
of at least 20 Business Days if the Board of Directors determines that such increase would be in
the Company’s best interest. Whenever the Conversion Rate is increased pursuant to the preceding
sentence, the Company shall mail to the Holder of each Note at his last address appearing on the
Security Register pursuant to Section 1.06 a notice of the increase at least 20 Business Days prior
to the date the increased Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect. In addition, the Company may also
(but is not required to) increase the Conversion Rate to avoid or diminish any income tax to
holders of Common Stock or rights to purchase Common Stock in connection with a dividend or
distribution of shares (or rights to acquire shares) or similar event.

     (h) Without limiting the foregoing, the Conversion Rate shall not be adjusted:

     (i) upon the issuance of any shares of Common Stock pursuant to any present or future
plan providing for the reinvestment of dividends or interest payable on 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
those shares of Common Stock pursuant to any present or future employee, director or
consultant benefit plan or program or stock purchase plan of or assumed by the Company or
any of its Subsidiaries;

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

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

     (v) for accrued and unpaid interest.

     (i) All calculations and other determinations under this Article 5 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.

     (j) For purposes of this Section 5.06, 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.

46

 

     (k) With respect to a conversion of Notes pursuant to this Article 5, at and after the close
of business on each VWAP Trading Day of the relevant 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 each such VWAP Trading Day in an
amount of shares equal to the product of the Daily Share Amount for such VWAP Trading Day and 100%
minus the Cash Percentage. 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 each such VWAP
Trading Day with respect to such amount of shares of Common Stock.

     (l) Whenever any provision of this Article 5 requires a calculation of Last Reported Sale
Prices or Daily VWAPs over a span of multiple days, the Company shall make proportional adjustments
to the Daily Settlement Amount (determined in good faith by the Board of Directors) to account for
any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment
to the Conversion Rate where the Ex-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 Conversion Amounts relating to days prior to the date that the adjustment to the
Conversion Ratio becomes effective.

     Section 5.07 . 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 5.06 and
shall prepare a 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 1.06.

     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 5.08 . 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 5.09 . Taxes on Conversions. Except as provided in the next sentence, the Company
shall pay any and all taxes and duties that may be payable in respect of the issue or delivery of
shares of Common Stock on conversion of Notes pursuant hereto. The Company

47

 

shall not, however, be required to pay any tax or duty that may be payable (i) in respect of
income of the Holder, or (ii) because the Holder requests any shares to be issued and delivered in
a name other than the Holder’s name, 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. Nothing herein
shall preclude any tax withholding required by law or regulations.

     Section 5.10 . 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 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.

     Section 5.11 . 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 2.15.

     Section 5.12 . Provision in Case of Effect of Reclassification, Consolidation, Merger or
Sale. (a) In the event of:

     (i) any reclassification of the Common Stock,

     (ii) a consolidation, binding share exchange, recapitalization, reclassification,
merger, combination or other similar event, or

     (iii) any sale or conveyance to another Person of all or substantially all of the
property and assets of the Company (excluding a pledge of securities issued by any of the
Company’s subsidiaries but, for the avoidance of doubt, not excluding any foreclosure
thereon), in any case as a result of which holders of the outstanding Common Stock would be
entitled to receive cash, securities or other property or assets for their shares of Common
Stock;

(any such event described in clauses (i) through (iii) above, a “Merger Event”), then the Company
or the successor or purchasing Person, as the case may be, shall execute with the Trustee a
supplemental indenture permitted under Section 11.01 providing for the conversion and settlement of
the Notes as set forth in this Indenture, subject to Section 5.04(b). 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 5 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 Merger Event, 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 4.

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     In the event a supplemental indenture is executed pursuant to this Section 5.12, the Company
shall promptly file with the Trustee an Officers’ Certificate briefly stating the reasons
therefore, the kind or amount of cash, securities or 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.

     (b) Notwithstanding the provisions of Section 5.04(a), and subject to the provisions of
Section 5.01, at and after the effective time of such Merger Event, the right to convert each
$1,000 principal amount of Notes shall be changed to a right to convert such principal amount of
Notes by reference to the kind and amount of cash, securities or other property or assets that a
holder of a number of shares of Common Stock equal to the Conversion Rate immediately prior to such
Merger Event would have owned or been entitled to receive (the “Reference Property”) such that from
and after the effective time of such Merger Event, a Holder shall be entitled thereafter to convert
its Notes into cash up to the aggregate principal portion thereof and, in lieu of the shares of
Common Stock otherwise deliverable, units of Reference Property based on the Daily Conversion
Amounts of such Reference Property and the applicable Conversion Rate, as described under Section
5.04(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
reclassifications, consolidations, mergers, sales or conveyance of assets 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 (i) the 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 an 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 5 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 its address appearing on the Security 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 5.12 shall similarly apply to successive Merger
Events.

     Section 5.13 . Responsibility of Trustee for Conversion Provisions. The Trustee, subject to
the provisions of Article 8, and any Conversion Agent shall not at any time be under any duty or
responsibility to any Holder of Notes or to the Company 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, subject to the provisions of Article 8, nor any Conversion
Agent shall be accountable with respect to the validity or value (or the kind or

49

 

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, subject to the provisions of Article 8,
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, subject to the provisions of Article 8, 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 5.

     Section 5.14 . Notice to Holders Prior to Certain Actions. Unless a notice has been provided
under Section 5.01(b) or Section 5.01(c), as applicable, in case:

     (a) the Company shall declare a dividend (or any other distribution ) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 5.06;

     (b) the Company shall authorize the granting to the holders of all or substantially all of its
Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other
rights or warrants that would require an adjustment in the Conversion Rate pursuant to Section
5.06;

     (c) of any reclassification or reorganization of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value), or of any consolidation or merger to
which the Company is a party and for which approval of any stockholders of the Company is required,
or of the sale, lease or transfer of all or substantially all of the assets of the Company; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company or
any of its Subsidiaries;

then, in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent
and to be mailed to each Holder at such Holder’s address appearing on the list of Holders provided
for in Section 9.01 of this Indenture, as promptly as practicable but in any event at least 20 days
prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record
is to be taken for the purpose of such action by the Company or, if a record is not to be taken,
the date as of such the holders of Common Stock of record are to be determined for the purposes of
such action by the Company, or (y) the date on which such reclassification, consolidation, merger,
sale, lease, transfer, dissolution, liquidation or winding up is expected to become effective or
occur, and the date as of which it is expected that holders of Common Stock of record shall be
entitled to exchange their Common Stock for securities or other property deliverable upon such
reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of
such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up.

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     Section 5.15 . Stockholder Rights Plan. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 5 shall be entitled to receive the appropriate number of
rights, if any, and the certificates representing the Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of any stockholder
rights plan adopted by the Company, as the same may be amended from time to time. If prior to any
conversion, however, such rights have separated from the shares of Common Stock in accordance with
the provisions of the applicable stockholder rights agreement, the Conversion Rate shall be
adjusted at the time of separation as if the Company distributed to all holders of the Common
Stock, shares of the Company’s Capital Stock, evidences of indebtedness, assets, property, rights
or warrants as described in Section 5.06(c), subject to readjustment in the event of the
expiration, termination or redemption of such rights.

     Section 5.16 . Company Determination Final. Any determination that the Company or the Board
of Directors must make pursuant to this Article 5 shall be conclusive if made in good faith, absent
manifest error.

     Section 5.17 . Exchange in Lieu of Conversion. Notwithstanding anything herein to the
contrary, when a Holder surrenders Notes for conversion, the Company may direct the Conversion
Agent to surrender, prior to the commencement of the applicable Observation Period, such Notes to a
financial institution designated by the Company for exchange in lieu of conversion.  In order to
accept any Notes surrendered for conversion, the designated institution must agree to deliver to
the Conversion Agent for delivery to such Holder, in exchange for such Notes to be delivered to
such designated institution by the Conversion Agent, all cash and shares of Common Stock, if any,
equal to the consideration otherwise due upon conversion, as provided under this Article 5
(assuming for this purpose and for the purpose of determining the related Observation Period that
the date such Holder surrenders such Notes for conversion is the Conversion Date for such Notes),
at the sole option of the designated 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 will notify the Holder surrendering Notes for conversion that it
has directed the designated financial institution to make an exchange in lieu of conversion and
such designated institution will be required to notify the Conversion Agent, who will then notify
the Holder, whether it will deliver, upon exchange, all cash or a combination of cash and shares of
Common Stock (by the Company’s specifying a Cash Percentage as provided under this Article 5).

     If the designated institution accepts any such Notes, it will deliver cash and, if applicable,
the appropriate number of shares of Common Stock to the Conversion Agent on the date such cash and
shares of Common Stock, if any, would otherwise be due as set forth in this Article 5 and the
Conversion Agent will promptly deliver the cash and those shares to Holders. Any Notes exchanged
by the designated institution will 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 Business Day immediately following the last day of the related Observation
Period, convert the Notes into cash and shares of Common Stock, if any,

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in accordance with this Article 5 (based on such assumed Conversion Date as described above
and the specified Cash Percentage as described above).

     The Company’s designation of an institution to which the Notes may be submitted for exchange
does not require the institution to accept any Notes. The Company will not pay any consideration
to, or otherwise enter into any agreement with, the designated institution for or with respect to
such designation.

ARTICLE 6

Events of Default; Remedies

     Section 6.01 . 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 (including Additional Interest, if any, but excluding
the Extension Fee, if any) on any Note when due and payable and the default continues for a period
of 30 days; or

     (b) default in the payment of principal of, or Extension Fee, if any, on, any Note when due
and payable at its Stated Maturity Date, 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 and that failure
continues for five (5) days; or

     (d) failure by the Company to comply with its obligations under Article 7; or

     (e) default in the performance, or breach of any covenant or agreement by the Company under
this Indenture (other than a covenant or agreement otherwise described as a separate “Event of
Default” hereunder) and continuance of such default or breach by the Company for 60 days after
written notice has been given, by registered or certified mail, to the Company from the Trustee or
to the Company and the Trustee from the Holders of at least 25% principal amount of the Notes then
Outstanding which written notice shall specify such default or breach and requiring it to be
remedied and stating that such notice is a “Notice of Default” under this Indenture; or

     (f) failure by the Company to comply with its notice obligations under Sections 5.01(b)
through (d) or under Section 4.01 when due; or

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     (g) default by the Company or any 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 $25 million in the aggregate of the
Company and/or any such Subsidiary (other than Securitization Indebtedness), 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 of such declaration or (ii) from a failure to pay the
principal of any such debt when due and payable at its stated maturity or upon required repurchase
and such defaulted payment shall not have been made, waived or extended within 30 days of such due
date or required date of repurchase; provided, however, that clause (i) shall not apply to any
indebtedness of any Subsidiary issued and outstanding prior to the date such Subsidiary became a
Subsidiary of the Company (other than indebtedness issued in connection with, or in anticipation
of, such Subsidiary becoming a Subsidiary of the Company) if such default arises solely as a result
of a “change of control” provision applicable to such indebtedness which becomes operative as a
result of the acquisition of such Subsidiary by the Company or any of its existing Subsidiaries; or

     (h) failure by the Company or any of its Subsidiaries, within 60 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 $25 million, which are not stayed while on
appeal; or

     (i) the Company, pursuant to or within the meaning of any Bankruptcy Law shall (i) commence a
voluntary case, (ii) consent to the entry of an order for relief against it in an involuntary case,
(iii) consent to the appointment of any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law for it or all or substantially all of its property, or (iv) make a general
assignment for the benefit of its creditors; or

     (j) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(i) is for relief against the Company in an involuntary case, (ii) appoints any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law for the Company or for all or
substantially all of its property, or (iii) orders the liquidation of the Company and the order or
decree remains unstayed and in effect for 60 days.

     Section 6.02 . Acceleration of Maturity; Rescission and Annulment. If an Event of Default
(other than an Event of Default specified in Section 6.01(i) or Section 6.01(j)) occurs and is
continuing, then in every such case (except as provided in the immediately following paragraph) the
Trustee or the Holders of at least 25% in principal amount of the Outstanding Notes may, and the
Trustee at the request of such Holders shall, declare the principal of 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 such principal shall become immediately due and payable. If
an Event of Default specified in Section 6.01(i) or Section 6.01(j) with respect to the Company
occurs, the principal of, and accrued and unpaid 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.

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     At any time following an Event of Default and after such a declaration of acceleration has
been made, the Holders of a majority in aggregate principal amount of the Outstanding Securities,
by written notice to the Company and the Trustee, may rescind and annul such declaration and its
consequences (other than with respect to an Event of Default under Sections 6.01(a), 6.01(b),
6.01(c), 6.01(i) or 6.01(j)) if:

     (i) such rescission and annulment will not conflict with any judgment or decree of a
court of competent jurisdiction; and

     (ii) all Events of Default, other than the non-payment of the principal amount plus
accrued and unpaid interest on Securities that have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 6.12.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 6.01(e) relating to the failure by the Company to comply with its
obligations under Section 9.04 or any filing obligation the Company shall have or be deemed to have
pursuant to Section 314(a)(1) of the Trust Indenture Act relating to its failure to 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 or the covenant set forth in Section 9.04, shall for the first 180 days
after the occurrence of such an Event of Default consist exclusively of the right to receive an
extension fee (“Extension Fee”) on the Notes at an annual rate equal to 0.5% of the principal
amount of the Notes over such portion of the 180-day period during which time such Event of Default
continues. If the Company so elects, such Extension Fee shall accrue on all Outstanding Notes from
and including the date on which such Event of Default first occurs and shall be payable on each
relevant Interest Payment Date to Holders of record on the Record Date immediately preceding that
Interest Payment Date. On the 181st calendar day after such Event of Default (if such violation is
not cured or waived prior to such 181st calendar day), the Notes shall be subject to acceleration
in accordance with the provisions of this Section 6.02 set forth above. This paragraph and the two
immediately succeeding paragraphs shall not affect the rights of Holders of Notes in the event of
the occurrence of any other Event of Default. In the event the Company does not elect to pay the
Extension Fee upon an Event of Default in accordance with this paragraph, the Notes shall be
subject to acceleration in accordance with the provisions of this Section 6.02 set forth above.

     In order to elect to pay the Extension Fee as the sole remedy during the first 180 days after
an Event of Default relating to the failure to comply with the reporting obligations in accordance
with the immediately preceding paragraph, the Company must notify, in the manner provided for in
Section 1.06, all Holders of record of Notes and the Trustee and Paying Agent of such election on
or before the close of business on the date on which such Event of Default occurs. Upon the
Company’s failure to timely give such notice or pay the Extension Fee, the Notes shall be subject
to acceleration in accordance with the provisions of this Section 6.02 set forth above.

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     If an Extension Fee is payable under this Section 6.02, the Company shall deliver to the
Trustee a certificate to that effect stating that an Extension Fee is payable and the date upon
which such Extension Fee shall begin to accrue. 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 an Extension Fee is not payable. If an Extension Fee has been paid by the Company
directly to the persons entitled to it, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment.

     Section 6.03 . Collection of Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if a Default is made in the payment of the principal amount and accrued and unpaid
interest at the Stated Maturity Date or in the payment of the Fundamental Change Repurchase Price
in respect of any Security, the Company will, upon demand of the Trustee, pay to it, for the
benefit of the Holders of such Securities, the whole amount then due and payable on such
Securities, and, in addition thereto, such further amounts required pursuant to Section 6.07.

     If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy to collect the payment of the principal amount plus accrued but
unpaid interest on the Securities or to enforce the performance of any provision of the Securities
or this Indenture. The Trustee may maintain a proceeding even if the Trustee does not possess any
of the Securities or does not produce any of the Securities in the proceeding. A delay or omission
by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of
Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

     Section 6.04 . Trustee May File Proofs of Claim. In case of any judicial proceeding relative
to the Company (or any other obligor upon the Securities), 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 8.07.

     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 Securities 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 6.05 . Application of Money Collected. Any money collected by the Trustee pursuant
to this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money to Holders, upon presentation of the
Securities and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

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     FIRST: To the payment of all amounts due the Trustee under Section 8.07;

     SECOND: To the payment of the amounts then due and unpaid on the Securities for the
principal amount, Fundamental Change Repurchase Price or interest, as the case may be, in
respect of which or for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on such
Securities; and

     THIRD: To the payment of the remainder, if any, to the Company or any other Person
lawfully entitled thereto.

     Section 6.06 . Limitation on Suits. No Holder of any Security shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder (other than in the case of
an Event of Default specified in Section 6.01(a), Section 6.01(b) or Section 6.01(d)), unless:

     (i) such Holder has previously given the Trustee notice that an Event of Default is
continuing;

     (ii) Holders of at least 25% in aggregate principal amount of the Outstanding
Securities shall have made written request to the Trustee to pursue such remedy in its own
name as Trustee hereunder;

     (iii) such Holder or Holders have offered the Trustee security or indemnity reasonably
satisfactory to the Trustee against any loss, liability or expense to be incurred in
compliance with such request;

     (iv) the Trustee has not complied with such request within 60 days after its receipt of
such notice and the offer of security or indemnity; and

     (v) the Holders of a majority principal amount of the Outstanding Securities have not
given the Trustee a direction that is inconsistent with such request within such 60-day
period;

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 itself 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 6.07 . Unconditional Right of Holders To Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of the principal amount,
Fundamental Change Repurchase Price or accrued and unpaid interest in respect of the

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Securities held by such Holder, on or after the respective due dates expressed in the
Securities or any Fundamental Change Repurchase Date, as applicable, and to convert the Securities
in accordance with Article 5, or to bring suit for the enforcement of any such payment on or after
such respective dates or the right to convert, shall not be impaired or affected adversely without
the consent of such Holder.

     Section 6.08 . 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 6.09 . Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 2.12, 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 shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     Section 6.10 . Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to
the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

     Section 6.11 . Control by Holders. The Holders of a majority in principal amount of the
Outstanding Securities shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on
the Trustee; provided that:

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

     (ii) the Trustee may refuse to follow any such direction that the Trustee determines is
unduly prejudicial to the rights of any other Holder or that would involve the Trustee in
personal liability.

     Section 6.12 . Waiver of Past Defaults. The Holders of not less than a majority in principal
amount of the Outstanding Securities may on behalf of the Holders of all the Securities waive any
past Default hereunder and its consequences, except a Default:

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     (i) described in Section 6.01(a), Section 6.01(b), Section 6.01(c), Section 6.01(i), or
Section 6.01(j); or

     (ii) in respect of a covenant or provision hereof which under Article 11 cannot be
modified or amended without the consent of the Holder of each Outstanding Security 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 6.13 . 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 or omitted by it as
Trustee, in either case in respect of the Securities, a court may require any party litigant in
such suit to file an undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees and expenses, against any party litigant in the suit
having due regard to the merits and good faith of the claims or defenses made by the party
litigant; but the provisions of this Section 6.13 shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of the principal amount
on any Security on or after the Stated Maturity Date of such Security or the Fundamental Change
Repurchase Price.

     Section 6.14 . Waiver of Stay or Extension Laws. The Company covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Company from paying all or any portion of the principal of or
interest on the Securities as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which 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 will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such power as though no
such law had been enacted.

     Section 6.15 . Violations of Certain Covenants. A violation of any covenant or agreement in
this Indenture that expressly provides that a violation of such covenant or agreement shall not
constitute an Event of Default may only be enforced by the Trustee by instituting a legal
proceeding against the Company for enforcement of such covenant or agreement.

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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, , transfer all or substantially all its assets (excluding a
pledge of securities issued by any of the Company’s subsidiaries) to, another Person, unless:

     (a) the resulting, surviving or transferee person (the “Successor Company”) assumes by
supplemental indenture all of the Company’s obligations under the Notes and this Indenture;
provided, however, that in the event that the Successor Company in any merger, consolidation, or
transfer is not organized and existing under the laws of the United States, any state thereof or
the District of Columbia (any such merger, consolidation or transfer, a “Foreign Jurisdiction
Transaction”), (i) the Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders will not recognize income, gain or loss for U.S. Federal income tax
purposes as a result of such transaction and will be subject to U.S. Federal income tax on the same
amounts and at the same times as would have been the case if such transaction had not occurred; and
(ii) the Company shall have delivered to the Trustee an Opinion of Counsel in the jurisdiction of
the Successor Company to the effect that (A) any payment of interest, principal, or any other
payment or amount delivered under the Notes under or with respect to the Notes will, after giving
effect to such transaction, be exempt from any withholding or deduction for or on account of any
present or future tax, duty, levy, impost, assessment or other governmental charge of whatever
nature imposed or levied by or on behalf of any jurisdiction from or through which payment is made
or in which the payor is organized, resident or engaged in business for tax purposes and (B) no
transfer taxes, stamp taxes, or taxes on income (including capital gains) will be payable by a
Holder of Notes under the laws of any jurisdiction where the Successor Company is or becomes
organized, resident or engaged in business for tax purposes in respect of the acquisition,
ownership or disposition of the Notes, including the receipt of interest or principal thereon,
provided that such Holder does not use or hold, and is not deemed to use or hold the Notes in
carrying on a business in the jurisdiction where the Successor Company is or becomes organized,
resident or engaged in business for tax purposes; provided that the Holder will not be deemed to
use or hold the Notes in carrying on a business in such jurisdiction solely as a result of the
Holder’s ownership of the notes. Thereafter all such obligations of the Company or such other
predecessor corporation shall be terminated. Upon any such consolidation, merger or transfer, the
resulting, surviving or transferee person shall succeed to, and may exercise, every right and power
of the Company under the Securities and under this Indenture;

     (b) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing;

     (c) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and, if a supplemental indenture
is required in connection with such transaction, such supplemental indenture, comply with this
Article 7; and

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     (d) other than in connection with a Foreign Jurisdiction Transaction (to which the
requirements of the proviso in clause (a) above shall apply), the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Holders or beneficial owners of the
Securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result
of such transaction and will be subject to U.S. federal income tax in the same amount, in
substantially the same manner and at the same times as would have been the case if the transaction
had not occurred.

     For purposes of the foregoing, the transfer (by assignment, sale or otherwise) of the
properties and assets of one or more Subsidiaries (other than to the Company or another
Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially
all of the properties and assets of the Company and its Subsidiaries, taken as a whole, shall be
deemed to be the transfer of all or substantially all of the properties and assets of the Company.

     The Successor Company formed by such consolidation or into which the Company is merged or the
Successor Company to which such conveyance, transfer, lease or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the Company herein; and
thereafter, except in the case of a conveyance, transfer or lease of all or substantially all the
Company’s assets (in which case the Company will not be discharged from the obligation to pay the
principal amount of the Securities and interest, including any Additional Amounts) and except for
obligations, if any, that the Company may have under a supplemental indenture, the Company shall be
discharged from all obligations and covenants under this Indenture and the Securities. Subject to
Section 11.03, the Company, the Trustee and the Successor Company shall enter into a supplemental
indenture to evidence the succession and substitution of such Successor Company and such discharge
and release of the Company.

ARTICLE 8

The Trustee

     Section 8.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence
of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against the
Trustee. In case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent person would exercise or use under
the circumstances in the conduct of his or her own affairs.

     No provision of this Indenture shall be construed to relieve the Trustee from liability for
its own grossly negligent action, its own grossly negligent failure to act or its own willful
misconduct, except that:

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     (a) prior to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred:

     (i) the duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for the performance
of such duties and obligations as are specifically set forth in this Indenture and no
implied covenants or obligations shall be read into this Indenture against the Trustee; and

     (ii) in the absence of bad faith and willful misconduct on the part of the Trustee, the
Trustee may conclusively rely as to the truth and accuracy of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished
to the Trustee and conforming to the requirements of this Indenture; but, in the case of any
such certificates or opinions which by any provisions hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture (but need not confirm or
investigate, and shall not be responsible for, the accuracy of any mathematical calculations
or other facts stated therein);

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

     (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the written direction of the Holders of not less than a
majority in principal amount of the Securities at the time Outstanding determined as provided in
Section 1.04 relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture;

     (d) whether or not therein provided, every provision of this Indenture relating to the conduct
or affecting the liability of, or affording protection to, the Trustee shall be subject to the
provisions of this Section 8.01;

     (e) the Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or notice effected by the
Company or any other paying agent or any records maintained by any co-registrar with respect to the
Securities; and

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

     None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is reasonable ground for
believing
that the repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

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     Section 8.02. Notice of Defaults. If a Default occurs and is continuing and is actually
known to a Responsible Officer of the Trustee, the Trustee shall mail to each Holder notice of the
Default within 90 days after it occurs unless such Default has been cured or waived. Except in the
case of a Default in (i) the payment of principal, including the Fundamental Change Repurchase
Price, if applicable, of, or interest on any Security or (ii) the payment or delivery, as the case
may be, of the consideration due upon conversion of the Notes in accordance with Article 5, the
Trustee shall be protected in withholding such notice if and so long as the board of directors, the
executive committee or a trust committee of directors or Responsible Officers of the Trustee in
good faith determines that withholding such notice is in the interests of the Holders.

     Section 8.03. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
8.01:

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

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to
the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

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

     (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Holders pursuant to the
provisions of this Indenture, unless such Holders shall have provided to the Trustee security or
indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities which
may be incurred therein or thereby;

     (e) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent or
attorney (at the reasonable expense of the Company and the Trustee shall incur no liability of
any kind by reason of such inquiry or investigation);

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     (f) 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 by it
with due care hereunder;

     (g) 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;

     (h) 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)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action;

     (i) 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 Securities and this Indenture;

     (j) 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; and

     (k) 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 8.04. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Securities (except in the Trustee’s certificate of authentication) shall be taken as the statements
of the Company, and the Trustee or any Authenticating Agent assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the validity or sufficiency of
this Indenture or of the Securities. The Trustee or any Authenticating Agent shall not be
accountable for the use or application by the Company of any Securities or the proceeds of any
Securities authenticated and delivered by the Trustee or any Authenticating Agent in conformity
with the provisions of this Indenture.

     Section 8.05. Trustee, Paying Agents, Conversion Agents or Security Registrar May Own
Securities. The Trustee, any paying agent, any conversion agent or Security Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent, conversion agent or Security Registrar.

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     Section 8.06. Monies To Be Held in Trust. Subject to the provisions of Section 10.04, all
monies and properties received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law. The
Trustee shall have no liability for interest on any money received by it hereunder except as may be
agreed in writing from time to time by the Company and the Trustee.

     Section 8.07. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, such compensation for all
services rendered by it hereunder in any capacity (which shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust) as mutually agreed to from time
to time in writing between the Company and the Trustee, and the Company will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances reasonably
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its gross negligence, willful misconduct or bad faith. The Company also covenants to
indemnify the Trustee or any predecessor Trustee (and all officers, directors and employees of the
Trustee or any predecessor Trustee), in any capacity under this Indenture and its agents and any
authenticating agent for, and to hold each of them harmless against, any and all loss, damage,
liability, claim 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 the part of the Trustee or such officer(s), director(s), employee(s) and agent(s) or
authenticating agent, as the case may be, and arising out of or in connection with the acceptance
or administration of this trust or in any other capacity hereunder, including the costs and
expenses of defending themselves against any claim of liability in the premises. The obligations
of the Company under this Section 8.07 to compensate or indemnify the Trustee and to pay or
reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien prior to
that of the Securities upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the Holders of particular Securities. The obligation of the
Company under this Section 8.07 shall survive the satisfaction and discharge of this Indenture.

     When the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 6.01(i) or (j) with respect to the Company occurs,
the expenses and the compensation for the services are intended to constitute expenses of
administration under any bankruptcy, insolvency or similar laws.

     Section 8.08. Officers’ Certificate as Evidence. Except as otherwise provided in Section
8.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Trustee.

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     Section 8.09. Conflicting Interests of Trustee. 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 8.10. Eligibility of Trustee. There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank
holding company system, its bank holding company shall have a combined capital and surplus of at
least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of any supervising or examining authority, then for the purposes of this
Section 8.10 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 8.10,
it shall resign immediately in the manner and with the effect hereinafter specified in this
Article.

     Section 8.11. Resignation or Removal of Trustee.

     (a) The Trustee may at any time resign by giving written notice of such resignation to the
Company and to the Holders of Securities. Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee
and one copy to the successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment 60 days after the mailing of such notice of resignation to the Holders,
the resigning Trustee may, upon ten business days’ notice to the Company and the Holders, appoint a
successor identified in such notice or may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor trustee, or, any Holder who has been a
bona fide Holder of a Security or Securities for at least 6 months may, subject to the provisions
of Section 6.13, on behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. Such court may thereupon, after such notice, if any,
as it may deem proper and prescribe, appoint a successor trustee.

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

     (i) the Trustee shall fail to comply with Section 8.09 after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a Security or Securities
for at least 6 months; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.10 and shall fail to resign after written request therefor by the Company or by
any such Holder; or

     (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed, or

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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, the Company may remove the Trustee and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or,
subject to the provisions of Section 6.13, any Holder who has been a bona fide Holder of a Security
or Securities for at least 6 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; provided, however, that if no successor Trustee shall have been appointed and
have accepted appointment 60 days after either the Company or the Holders has removed the Trustee,
the Trustee so removed may petition at the Company’s expense any court of competent jurisdiction
for an appointment of a successor trustee. Such court may thereupon, after such notice, if any, as
it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities at the time
Outstanding may at any time remove the Trustee and nominate a successor trustee which shall be
deemed appointed as successor trustee unless, within ten days after notice to the Company of such
nomination, the Company objects thereto, in which case the Trustee so removed or any Holder, or if
such Trustee so removed or any Holder fails to act, the Company, upon the terms and conditions and
otherwise as in Section 8.11(a) provided, may petition any court of competent jurisdiction for an
appointment of a successor trustee.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 8.11 shall become effective upon acceptance of appointment
by the successor trustee as provided in Section 8.12.

     Section 8.12. Acceptance by Successor Trustee. Any successor trustee appointed as provided
in Section 8.11 shall execute, acknowledge and deliver to the Company and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the successor trustee, the
trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of
Section 8.07, execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee,
the Company shall execute any and all instruments in writing for more fully and certainly vesting
in and confirming to such successor trustee all such rights and powers. Any trustee ceasing to act
shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as
such, except for funds held in trust for the benefit of Holders of particular Securities, to secure
any amounts then due it pursuant to the provisions of Section 8.07.

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     No successor trustee shall accept appointment as provided in this Section 8.12 unless, at the
time of such acceptance, such successor trustee shall be qualified under the provisions of Section
8.09 and be eligible under the provisions of Section 8.10.

     Upon acceptance of appointment by a successor trustee as provided in this Section 8.12, the
Company (or the former trustee, at the written direction of the Company) shall mail or cause to be
mailed notice of the succession of such trustee hereunder to the Holders of Securities at their
addresses as they shall appear on the Security Register. If the Company fails to mail such notice
within ten days after acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Company.

     Section 8.13. Succession by Merger, Etc. 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 of the corporate trust business of the Trustee (including
any trust created by this Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto;
provided that in the case of any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, such corporation shall be qualified under the provisions
of Section 8.09 and eligible under the provisions of Section 8.10.

     In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Securities shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or
authenticating agent appointed by such predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have been authenticated,
any successor to the Trustee or any authenticating agent appointed by such successor trustee may
authenticate such Securities in the name of the successor trustee; and in all such cases such
certificates shall have the full force that is provided in the Securities or in this Indenture;
provided, however, that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.

     Section 8.14. Preferential Collection of Claims. If and when the Trustee shall be or become
a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor).

     Section 8.15. Trustee’s Application for Instructions from the Company. Any application by
the Trustee for written instructions from the Company (other than with regard to any action
proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Holders
of the Securities under this Indenture) may, at the option of the Trustee, set forth in writing any
action proposed to be taken or omitted by the Trustee under this Indenture and the date on and/or
after which such action shall be taken or such omission shall be effective. The Trustee shall not
be liable for any action taken by, or omission of, the Trustee in accordance with a proposal
included in such application on or after the date specified in such application (which date shall

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not be less than three Business Days after the date any officer of the Company actually
receives such application, unless any such officer shall have consented in writing to any earlier
date) unless prior to taking any such action (or the effective date in the case of an omission),
the Trustee shall have received written instructions in response to such application specifying the
action to be taken or omitted.

ARTICLE 9

Holders’ Lists and Reports by Trustee

     Section 9.01. Company To Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:

     (i) semi-annually, not more than 15 days after each Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of such
Record Date; and

     (ii) at such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company of any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar; provided, however, that no such list need be furnished so long as the Trustee
is acting as Security Registrar.

     Section 9.02. Preservation of Information; Communications to Holders. (a) The Trustee shall
preserve, in as current a form as is reasonably practicable, the names and addresses of Holders
contained in the most recent list furnished to the Trustee as provided in Section 9.01 and the
names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 9.01 upon receipt of a new list
so furnished.

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

     (c) Every Holder, 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. Reports by Trustee. (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. Reports so required
to be transmitted at stated intervals of not more than 12 months shall be transmitted no

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later than July 15 of each calendar year, commencing on July 15, 2008. Each such report shall
be dated as of a date not more than 60 days prior to the date of transmission.

     (b) 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 Securities are listed, with the
Commission and with the Company. The Company will notify the Trustee when the Securities are
listed on any stock exchange or of any delisting thereof.

     Section 9.04.
Reports by Company. (a) Any information, documents or reports that the
Company is required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act
shall be filed with the Trustee within 15 days after the same are required (giving effect to any
grace period provided by Rule 12b-25) to be filed with the Commission. To the extent any such
information, documents and reports are filed by the Company electronically on the Commission’s
Electronic Data Gathering and Retrieval System (or any successor system), and an automatic e-mail
notification thereof to the Trustee is generated, such information, documents and reports shall be
deemed filed with the Trustee.

     (b) Delivery of such reports, information and documents 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 Officers’ Certificate). It is expressly understood that
materials transmitted electronically by the Company to the Trustee shall be deemed filed with the
Trustee for purposes of this Section 9.04.

ARTICLE 10

Satisfaction and Discharge

     Section 10.01. Discharge of Indenture. When (a) the Company shall deliver to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities that have been
destroyed, lost or stolen and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) and not theretofore canceled, or (b) all the Securities not
theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable
(whether at the Stated Maturity Date, or on any Fundamental Change Repurchase Date or upon
conversion or otherwise) and the Company shall deposit with the Trustee, in trust, cash funds and
shares of Common Stock, as applicable, sufficient to pay all amounts due (and shares of Common
Stock deliverable following conversion, if applicable) on all of such Securities (other than any
Securities that shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Securities shall have been authenticated and delivered) not
theretofore canceled or delivered to the Trustee for cancellation, including principal and interest
due, accompanied, except in the event the Securities are due and payable solely in cash upon a
Fundamental Change Repurchase Date, by a verification report as to the sufficiency of the deposited
amount from an independent certified accountant or other financial professional satisfactory to the
Trustee, and if the Company shall also pay or cause to be paid all

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other sums payable hereunder by the Company, then this Indenture shall cease to be of further
effect (except as to (i) remaining rights of registration of transfer, substitution and exchange
and conversion of Securities, (ii) rights hereunder of Holders to receive payments of principal of
and interest on, the Securities and the other rights, duties and obligations of Holders, as
beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee and (iii)
the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written
demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required
by Section 1.02 and at the cost and expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture. The Company, however, hereby agrees to
reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the
Trustee and to compensate the Trustee for any services thereafter reasonably and properly rendered
by the Trustee in connection with this Indenture or the Securities.

     Section 10.02. Deposited Monies and Shares To Be Held in Trust by Trustee. Subject to
Section 10.04, all monies and shares of Common Stock, if any, deposited with the Trustee pursuant
to Section 10.01 shall be held in trust for the sole benefit of the Holders, and such monies and
shares of Common Stock, if any, shall be applied by the Trustee to the payment, either directly or
through any paying agent (including the Company if acting as its own paying agent), to the Holders
of the particular Securities for the payment or settlement of which such monies have been deposited
with the Trustee, of all sums due and to become due thereon for principal and interest.

     Section 10.03. Paying Agent To Repay Monies and Shares Held. Upon the satisfaction and
discharge of this Indenture, all monies and shares of Common Stock, if any, then held by any paying
agent of the Securities (other than the Trustee) shall, upon written request of the Company, be
repaid to it or paid to the Trustee, and thereupon such paying agent shall be released from all
further liability with respect to such monies and shares of Common Stock, if any.

     Section 10.04. Return of Unclaimed Monies and Shares. Subject to the requirements of
applicable law, any monies and shares of Common Stock deposited with or paid to the Trustee for
payment of the principal of or interest on or settlement of Securities and not applied but
remaining unclaimed by the Holders of Securities for two years after the date upon which the
principal of or interest on such Securities, as the case may be, shall have become due and payable,
shall be repaid to the Company by the Trustee on demand and all liability of the Trustee shall
thereupon cease with respect to such monies and shares of Common Stock; and the Holder of any of
the Securities shall thereafter look only to the Company for any payment that such Holder may be
entitled to collect unless an applicable abandoned property law designates another Person.

     Section 10.05. Reinstatement. If the Trustee or the paying agent is unable to apply any
money in accordance with Section 10.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 10.01 until such time as the Trustee or the
paying agent is permitted to apply all such money in accordance with Section 10.02; provided,

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however, that if the Company makes any payment of interest on or principal of any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money held by the Trustee or paying
agent.

ARTICLE 11

Supplemental Indentures

     Section 11.01. Supplemental Indentures Without Consent of Holders. The Company and the
Trustee may modify or amend this Indenture or the Securities without the consent of any Holder to:

     (i) (x) cure any ambiguity, manifest error or defect or (y) cure any omission or
inconsistency; provided that, in the case of clause (y), the rights of the Holders are not
adversely affected in any material respect;

     (ii) provide for the assumption by a Successor Company of the Company’s obligations
under this Indenture;

     (iii) add guarantees with respect to the Notes;

     (iv) secure the Notes;

     (v) add to the Company’s covenants for the benefit of the Holders or surrender any
right or power conferred upon the Company;

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

     (vii) provide for the conversion rights of Holders of Notes and the Company’s
repurchase obligation in connection with a Fundamental Change in accordance with the terms
of this Indenture in the event of any reclassification of the Common Stock, merger or
consolidation, or sale, conveyance, transfer or lease of the Company’s property and assets
substantially as an entirety; or

     (viii) make any change that does not adversely affect the rights of any Holder in any
material respect; provided that any amendment to conform the terms of this Indenture or the
Notes to the section entitled “Description of the Notes” as set forth in the final offering
memorandum related to the Securities dated September 23, 2009 will not be deemed to be
adverse to any Holder.

     Section 11.02. Supplemental Indentures with Consent of Holders. Except as provided below in
this Section 11.02 and in Section 11.01, this Indenture or the Notes may be amended with the
consent of the Holders of at least a majority principal amount of the Notes then Outstanding,
including without limitation, consents obtained in connection with a purchase of, or

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tender offer or exchange offer for, Notes, and, subject to certain exceptions as set forth in
this Indenture, any past Default or compliance with any provisions may be waived with the consent
of the Holders of a majority principal amount of the Notes then Outstanding, including, without
limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer
for, Notes.

     Notwithstanding the immediately preceding paragraph, without the written consent of each
Holder of an Outstanding Security affected thereby, no amendment, supplement or waiver under this
Section 11.02 may:

     (i) reduce the amount of Notes whose holders must consent to an amendment;

     (ii) 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;

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

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

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

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

     (vii) 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 Notes;

     (viii) adversely affect the ranking of the Notes as the Company’s senior unsecured
indebtedness; or

     (ix) make any change in the amendment provisions which require each Holder’s consent or
in the waiver provisions.

     It shall not be necessary for any Act of Holders under this Section 11.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Section 11.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 11 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be provided with,
and (subject to Section 8.01) shall be fully protected and indemnified by the Company in relying
upon, in addition to the documents required by Section 1.02, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture.

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Subject to the preceding sentence, the Trustee shall sign such supplemental indenture if the
same does not adversely affect the Trustee’s own rights, duties or immunities under this Indenture
or otherwise or adversely affect the rights, duties or immunities of the Holders under this
Indenture or otherwise. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that adversely affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise.

     Section 11.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 11, 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.

     Section 11.05. Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 11 shall
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

     Section 11.06. Notice to Holders of Supplemental Indentures. The Company shall cause notice
of the execution of any supplemental indenture to be mailed to each Holder, at his address
appearing on the Security Register provided for in this Indenture, within 20 days after execution
thereof. Failure to deliver such notice, or any defect in such notes, shall not affect the legality
or validity of such supplemental indenture.

ARTICLE 12

Miscellaneous

     Section 12.01. When Securities Are Disregarded. In determining whether the Holders of the
required principal amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company shall be disregarded and deemed not
to be Outstanding, except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which a Responsible
Officer of the Trustee actually knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Securities Outstanding at the time shall be considered in any such determination.

     Section 12.02. Rules by Trustee, Paying Agent and Security Registrar. The Trustee may make
reasonable rules for action by, or a meeting of, Holders. The Security Registrar and the Paying
Agent may make reasonable rules for their functions.

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     Section 12.03. Successors. All agreements of the Company in this Indenture and the
Securities shall bind their respective successors. All agreements of the Trustee in this Indenture
shall bind its successors.

     Section 12.04. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

     Section 12.05. Calculations. Except as otherwise provided herein, the Company shall be
responsible for making all calculations called for under this Indenture and the Securities. These
calculations include, but are not limited to, determinations of the Last Reported Sale Prices,
accrued interest payable on the Notes and the Conversion Rate of the Notes. The Company shall make
all these calculations in good faith and, absent manifest error, its calculations will be final and
binding on Holders. The Company will provide a schedule of its calculations to each of the Trustee
and the Conversion Agent, and each of the Trustee and Conversion Agent is entitled to rely
conclusively upon the accuracy of the Company’s calculations without independent verification. The
Trustee will forward a copy of such schedule to any Holder upon the request of such Holder.

     Section 12.06. Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTION
CONTEMPLATED THEREBY.

     Section 12.07. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software or hardware) services; it being understood 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.

[Remainder of the page intentionally left blank]

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

	 	 	 	 	 
	 	PHH CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name: 	Mark E. Johnson  	 
	 	 	Title: SVP & Treasurer 	 
	 
	 	THE BANK OF NEW YORK MELLON, as Trustee

 	 
	 	By:  	/s/ Timothy W. Casey
 	 
	 	 	Name: 	Timothy W. Casey 	 
	 	 	Title: Senior Associate 	 
	 

 

 

SCHEDULE A

Make-Whole Table

The following table sets forth the number of Additional Shares to be added to the Conversion Rate
per $1,000 principal amount of Securities pursuant to Section 5.02 of this Indenture:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Effective	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	date	 	$19.85	 	$22.00	 	$24.00	 	$26.00	 	$28.00	 	$30.00	 	$35.00	 	$40.00	 	$45.00	 	$50.00	 	$60.00	 	$70.00	 	$80.00	 	$90.00	 	$100.00
	9/29/2009
	 	 	11.6256	 	 	 	10.0594	 	 	 	8.6327	 	 	 	7.4929	 	 	 	6.5680	 	 	 	5.8073	 	 	 	4.4058	 	 	 	3.4644	 	 	 	2.7994	 	 	 	2.3103	 	 	 	1.6479	 	 	 	1.2265	 	 	 	0.9382	 	 	 	0.7305	 	 	 	0.5750	 
	9/1/2010
	 	 	11.6256	 	 	 	10.1348	 	 	 	8.5783	 	 	 	7.3490	 	 	 	6.3634	 	 	 	5.5626	 	 	 	4.1172	 	 	 	3.1750	 	 	 	2.5277	 	 	 	2.0632	 	 	 	1.4522	 	 	 	1.0748	 	 	 	0.8215	 	 	 	0.6408	 	 	 	0.5062	 
	9/1/2011
	 	 	11.6256	 	 	 	9.9150	 	 	 	8.2136	 	 	 	6.8904	 	 	 	5.8470	 	 	 	5.0142	 	 	 	3.5563	 	 	 	2.6494	 	 	 	2.0536	 	 	 	1.6432	 	 	 	1.1289	 	 	 	0.8267	 	 	 	0.6296	 	 	 	0.4909	 	 	 	0.3880	 
	9/1/2012
	 	 	11.6256	 	 	 	9.4371	 	 	 	7.5426	 	 	 	6.1017	 	 	 	4.9943	 	 	 	4.1349	 	 	 	2.7056	 	 	 	1.8868	 	 	 	1.3916	 	 	 	1.0758	 	 	 	0.7146	 	 	 	0.5202	 	 	 	0.3983	 	 	 	0.3133	 	 	 	0.2497	 
	9/1/2013
	 	 	11.6256	 	 	 	8.4119	 	 	 	6.2217	 	 	 	4.6226	 	 	 	3.4562	 	 	 	2.6055	 	 	 	1.3518	 	 	 	0.7725	 	 	 	0.4953	 	 	 	0.3546	 	 	 	0.2292	 	 	 	0.1722	 	 	 	0.1363	 	 	 	0.1099	 	 	 	0.0890	 
	9/1/2014
	 	 	11.6256	 	 	 	6.7024	 	 	 	2.9145	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

[INCLUDE IF A GLOBAL SECURITY]

[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.

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

[INCLUDE IF A RESTRICTED SECURITY]

[THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)) (A “QUALIFIED
INSTITUTIONAL BUYER”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH
IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY OR ANY COMMON STOCK
ISSUABLE UPON CONVERSION OF THIS SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE
TO SALES OF THIS SECURITY UNDER RULE 144(D) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION),
ONLY IN ACCORDANCE WITH THE TWO IMMEDIATELY SUCCEEDING PARAGRAPHS; AND (3) AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. THIS LEGEND WILL BE REMOVED ON THE EARLIEST OF (1) THE FIRST ANNIVERSARY OF THE ISSUE
DATE, (2) THE TRANSFER OF THIS SECURITY PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR (3) ON
ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).

A-1

 

THIS NOTE (OR ITS PREDECESSOR) 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
ACCORDINGLY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT AS SET FORTH BELOW.
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER:

(1) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY
OR ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES IS A QIB
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (D) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH THE APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION; AND

(2) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE AS TO THE ABOVE RESTRICTIONS.

THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTES, IF ANY, IS SUBJECT TO CERTAIN RESTRICTIONS
ON OWNERSHIP AND TRANSFER. PHH CORPORATION WILL FURNISH A FULL STATEMENT ABOUT THE RESTRICTIONS ON
TRANSFERABILITY AND OWNERSHIP OF THE COMMON STOCK TO ANY HOLDER ON REQUEST AND WITHOUT CHARGE. SUCH
REQUEST MAY BE MADE TO THE COMPANY’S CORPORATE SECRETARY AT ITS PRINCIPAL OFFICE.]

IN CANADA, UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
TRADE THE SECURITY BEFORE JANUARY 30, 2010.

A-2

 

PHH CORPORATION

			
	No.      
	 	Initially $                    

4.00% Convertible Senior Note due 2014

CUSIP No.: 693320 AJ2

ISIN Number: US693320AJ20

     PHH CORPORATION, a Maryland corporation, promises to pay to [CEDE & CO., or its registered
assigns]1, the principal sum of                      DOLLARS, [as revised by the Schedule of
Increases or Decreases in Global Security attached hereto,]2 on September 1, 2014.

     Interest Payment Dates: March 1 and September 1.

     Interest Record Dates: February 15 and August 15.

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

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

     This Security shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

 

			
	1	 	Use bracketed language for a Global Security.
	 
	2	 	Use bracketed language for a Global Security.

A-3

 

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

	 	 	 	 	 
	 	PHH CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

THE BANK OF NEW YORK MELLON, as Trustee, certifies

that this Security is one of the Securities described in

the within-named Indenture.	 	 
	 
	 	 	 	 
	Dated:
	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 

Authorized Signatory
	 	 

A-4

 

[FORM OF REVERSE OF NOTE]

PHH CORPORATION

4.00% Convertible Senior Note due 2014

1. Interest

     PHH CORPORATION, a Maryland corporation (such corporation, and its successors and assigns
under the Indenture, the “Company”), promises to pay interest on the principal amount of this
Security at the rate of 4.00% per annum. The Company will pay interest semiannually on March 1 and
September 1 of each year, commencing on March 1, 2010. Interest on the Security will accrue from
the most recent date to which interest has been paid or, if no interest has been paid, from
September 29, 2009. Interest will be computed on the basis of a 360-day year of twelve 30-day
months. If a payment date is not a Business Day, payment will be made on the next succeeding
Business Day, and no additional interest will accrue in respect of the delay. The Company shall
pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at the rate of interest then in
effect; and it shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful.

2. Paying Agent, Registrar and Conversion Agent

     Initially, The Bank of New York Mellon, a New York banking corporation (the “Trustee”), will
act as Paying Agent, Registrar and Conversion Agent. The Company may appoint and change any Paying
Agent, Registrar or co-registrar or Conversion Agent without notice. The Company or any of its
domestically incorporated wholly owned Subsidiaries may act as Paying Agent, Registrar or
co-registrar, or Conversion Agent.

3. Indenture

     The Company issued the Securities under an Indenture dated as of September 29, 2009 (the
“Indenture”), between the Company and the Trustee. Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such
terms, and Holders are referred to the Indenture for a statement of those terms.

     This Security is one of the Securities referred to in the Indenture issued in an initial
aggregate principal amount of $250,000,000. Additional Securities may be issued in accordance with
the terms of the Indenture. The Indenture also imposes limitations on the ability of the Company
to consolidate or merge with or into any other Person or convey, transfer or lease all or
substantially all of the property of the Company.

4. Conversion

     Upon the occurrence of certain events specified in the Indenture and in compliance with the
provisions of the Indenture, on or prior to the close of business on the third Scheduled Trading
Day immediately preceding the Stated Maturity Date of this Security, the Holder hereof has the
right, at its option, to convert each $1,000 principal amount of this Security into a
combination of cash and Common Stock, determined as set forth in the Indenture, based on the
applicable Conversion Rate, as the same may be adjusted pursuant to the terms of the Indenture.

A-5

 

5. Denominations, Transfer, Exchange

     The Securities are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Holder may transfer or exchange Securities in accordance with the terms of
the Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes
required by law or permitted by the Indenture.

6. Persons Deemed Owners

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

7. Defaults and Remedies

     If an Event of Default (other than an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization of the Company or relating to the failure to file certain
reports subject to the provisions of the Indenture) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the Outstanding Securities may declare the principal
of and accrued and unpaid interest on all the Securities to be due and payable. If an Event of
Default relating to certain events of bankruptcy, insolvency or reorganization of the Company
occurs, the principal of and interest on all the Securities will become immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder. Notwithstanding the
foregoing, at the election of the Company, the sole remedy for an Event of Default relating to a
failure to file certain reports with the Commission and the Trustee shall for the first 180
calendar days after such Event of Default consist exclusively of the right to receive an Extension
Fee.

8. No Recourse Against Others

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

9. Authentication

     This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

10. Abbreviations

     Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants

A-6

 

with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A
(=Uniform Gift to Minors Act).

11. GOVERNING LAW

     THIS SECURITY (AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS
SECURITY) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
(WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD RESULT IN THE APPLICATION OF
ANY LAW OTHER THAN THE LAWS OF THE STATE OF NEW YORK).

12. CUSIP and ISIN Numbers

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

     The Company will furnish to any Holder of Securities upon written request and without charge
to the Holder a copy of the Indenture which has in it the text of this Security.

A-7

 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY3

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal amount of this	 	authorized
	 	 	Amount of decrease in	 	Amount of increase in	 	Global Security	 	signatory of
	Date of	 	principal amount of this	 	principal amount of this	 	following such decrease	 	Trustee or
	Exchange	 	Global Security	 	Global Security	 	or increase	 	Custodian
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

 

			
	3	 	For Global Securities only.

A-8

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	 	 	 	 	Principal amount of this	 	authorized
	 	 	Amount of decrease in	 	Amount of increase in	 	Global Security	 	signatory of
	Date of	 	principal amount of this	 	principal amount of this	 	following such decrease	 	Trustee or
	Exchange	 	Global Security	 	Global Security	 	or increase	 	Custodian
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 

A-9

 

[FORM OF CONVERSION NOTICE]

To: PHH Corporation

     The undersigned registered owner of this Security hereby irrevocably exercises the option to
convert this Security, or the portion thereof (which is $1,000 or a multiple thereof) below
designated, into, cash and shares of Common Stock of PHH Corporation, if any, in accordance with
the terms of the Indenture referred to in this Security, and directs that the check in payment for
cash and the shares, if any, issuable and deliverable upon such conversion, together with any check
in payment for fraction shares and any Securities representing any unconverted principal amount
hereof, be issued and delivered to the registered Holder hereof unless a different name has been
indicated below.

     If shares or any portion of this Security not converted are to be issued in the name of a
Person other than the undersigned, the undersigned will provide the appropriate information below
and pay all transfer taxes payable with respect thereto. In addition, subject to certain
exceptions in the Indenture, if this notice is being delivered on a date after the close of
business on a Record Date and prior to the open of business on the related Interest Payment Date,
this notice is accompanied by payment of an amount equal to the interest payable on such Interest
Payment Date of the principal of this Security to be converted.

     Capitalized terms used herein but not defined shall have the meanings ascribed to such terms
in the Indenture.

	 	 	 	 	 	 	 
	Dated:

	 	 
 

	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	  
  
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	  
  Signature(s)
	 
	 	 	 	 	 	 
	 

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

	 	 	 	 	 	  
  Signature
Guarantee

A-10 

 

     Fill in the registration of shares of Common Stock, if any, if to be issued, and Securities,
if any, to be delivered, and the person to whom cash, if any, and payment for fractional shares, if
any, is to be made, if other than to and in the name of the registered Holder:

	 	 	 
	Please print name and address
	 	 
	 
	 	 
	 
 

(Name)

	 	 
	 
	 	 
	  

(Street
Address)

	 	 
	 
	 	 
	  

(City,
State and Zip Code)

	 	 

Principal amount to be converted

  (if less than all, must be $1,000 or whole multiples thereof):

	 	 	 	 	 
	$

	 	 
 

	 	 

Social Security or Other Taxpayer

  Identification Number:

	 	 	 
	 
 

	 	 

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

A-11 

 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

To: PHH Corporation

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

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

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 
 

Signature(s)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	  

Social
Security or Other Taxpayer Identification Number
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	principal amount to be repaid (if less than all):	 	 
	 

	 	 	 	$___,000	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	NOTICE: The signature on the Fundamental Change
Repurchase Notice must correspond with the name as
written upon the face of the Security in every
particular without alteration or enlargement or any
change whatever.	 	 

A-12 

 

[FORM OF ASSIGNMENT AND TRANSFER]

For value received                                          hereby sell(s), assign(s) and transfer(s) unto
                     (Please insert social security or Taxpayer Identification Number of assignee) the
within Security, and hereby irrevocably constitutes and appoints                                          attorney to
transfer the said Security on the books of the Company, with full power of substitution in the
premises.

In connection with any transfer of the within Note prior to the Resale Restriction Termination
Date, the undersigned confirms that such Note is being transferred:

o      To PHH Corporation or a subsidiary thereof; or

o     Pursuant to a person who the undersigned believes is a “qualified institutional buyer” purchasing
for its own account or for the account of a “qualified institutional buyer” in a transaction
meeting the requirements of Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”); or

o     Pursuant to the exemption from registration under the Securities Act provided by Rule 144
thereunder (if available); or

o     Pursuant to a registration statement that has become or been declared effective under the
Securities Act.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 
 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
 

Signature(s)
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature(s) must be guaranteed
by an institution which is a member of one of the
following recognized signature Guarantee
Programs:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(i) The Securities Transfer Agent Medallion
Program (STAMP); (ii) The New York Stock Exchange
Medallion Program (MNSP); (iii) The Stock
Exchange Medallion Program (SEMP) or (iv) another
guarantee program acceptable to the Trustee.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	  

Signature
Guarantee
	 	 

A-13 

 

EXHIBIT B

[FORM OF RESTRICTIVE LEGEND FOR COMMON STOCK ISSUED UPON
CONVERSION]

[THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND ACCORDINGLY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION
HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER:

(1) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS SECURITY CERTIFICATE EXCEPT (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHO THE TRANSFEROR
REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT, OR (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND, IN EACH CASE, IN
ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION; AND

(2) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS COMMON STOCK CERTIFICATE OR AN
INTEREST HEREIN IS TRANSFERRED A NOTICE AS TO THE ABOVE RESTRICTIONS.

THIS LEGEND WILL BE REMOVED ON THE EARLIER OF (1) THE FIRST ANNIVERSARY OF THE ISSUE DATE, (2) THE
TRANSFER OF THIS SECURITY UNDER CLAUSE 1(B) ABOVE OR (3) ON ANY TRANSFER OF THIS SECURITY UNDER
RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).]

B-1exv10w1

EXHIBIT 10.1

AMENDMENT TO CONVERTIBLE BOND HEDGING TRANSACTION CONFIRMATION

	 	 	 
	Date:

	 	September 29, 2009
	 
	 	 
	To:

	 	PHH Corporation
(“Counterparty”)
	 
	 	 
	Facsimile:

	 	(856) 917-4278
	 
	 	 
	Attention:

	 	Treasurer
	 
	 	 
	From:

	 	JPMorgan Chase Bank, National
Association, London Branch (“Dealer”)
	 
	 	 
	Facsimile:

	 	(212) 622-8534

Transaction Reference Number:

          This letter agreement (this “Amendment”) amends the terms and conditions of the
transaction (the “Transaction”) evidenced by the Confirmation dated as of September 23,
2009 (the “Confirmation”), entered into pursuant to the Master Terms and Conditions for
Convertible Bond Hedging Transactions, between Dealer and Counterparty, dated as of September 23,
2009 (as amended from time to time, the “Master Confirmation”).

          1. Definitions. The definitions and provisions contained in the Definitions (as such
term is defined in the Master Confirmation) and in the Master Confirmation are incorporated into
this Amendment. In the event of any inconsistency between those definitions and provisions and
this Amendment, this Amendment will govern.

	 	2.	 	Amendments. The Confirmation is hereby amended as follows:
	 
	 	(a)	 	The “Number of Units” shall be increased by 30,000.
	 
	 	(b)	 	The “Premium” shall be increased by USD 3,478,200.00.

          3. Effectiveness. This Amendment shall become effective upon execution by the parties
hereto. Upon the effectiveness of this Amendment, all references in the Master Confirmation and
the Confirmation to the “Transaction” will be deemed to be to the Transaction as amended hereby.

          4. No Additional Amendments or Waivers. Except as amended hereby, all the terms of
the Transaction and provisions in the Master Confirmation and the Confirmation shall remain and
continue in full force and effect and are hereby confirmed in all respects.

          5. Counterparts. This Amendment may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if all of the signatures thereto and hereto
were upon the same instrument.

          6. Governing Law. The provisions of this Amendment shall be governed by the laws of
the state of New York law, without reference to choice of law doctrine.

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

 

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
this Amendment and returning it to us.

	 	 	 	 	 	 	 
	 	 	Yours sincerely,	 	 
	 
	 	 	 	 	 	 
	 	 	J.P. MORGAN SECURITIES INC., AS AGENT FOR
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Santosh Sreenivasan
 

	 	 
	 	 	Authorized Signatory	 	 
	 	 	Name: Santosh Sreenivasan	 	 

	 	 	 	 	 
	Confirmed as of the
date first above written:	 	 
	 
	 	 	 	 
	PHH CORPORATION	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mark E. Johnson
 

Name: Mark E. Johnson
	 	 
	 

	 	Title: SVP & Treasurer	 	 

JPMorgan Chase Bank, National Association

Organised under the laws of the United States as a National Banking Association

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271

Registered as a branch in England & Wales branch No. BR000746

Registered Branch Office 125 London Wall, London EC2Y 5AJ

Authorised and regulated by the Financial Services Authority

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