Document:

Indenture

 

Exhibit 4.2

 

 

 

 

 

 

 

 

IVAX CORPORATION

1.875% CONVERTIBLE SENIOR NOTES DUE 2024

INDENTURE

DATED AS OF DECEMBER 22, 2004

U.S. BANK NATIONAL ASSOCIATION

AS TRUSTEE

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1. DEFINITIONS
	 	 	1	 
	SECTION 1.2. OTHER DEFINITIONS
	 	 	6	 
	SECTION 1.3. RULES OF CONSTRUCTION
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	THE SECURITIES
	 	 	8	 
	 
	 	 	 	 
	SECTION 2.1. FORM AND DATING
	 	 	8	 
	SECTION 2.2. EXECUTION AND AUTHENTICATION
	 	 	10	 
	SECTION 2.3. REGISTRAR, PAYING AGENT AND CONVERSION AGENT
	 	 	11	 
	SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST
	 	 	11	 
	SECTION 2.5. SECURITYHOLDER LISTS
	 	 	12	 
	SECTION 2.6. TRANSFER AND EXCHANGE
	 	 	12	 
	SECTION 2.7. REPLACEMENT SECURITIES
	 	 	13	 
	SECTION 2.8. OUTSTANDING SECURITIES
	 	 	14	 
	SECTION 2.9. TREASURY SECURITIES
	 	 	14	 
	SECTION 2.10. TEMPORARY SECURITIES
	 	 	14	 
	SECTION 2.11. CANCELLATION
	 	 	15	 
	SECTION 2.12. LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS
	 	 	15	 
	SECTION 2.13. CUSIP NUMBERS
	 	 	18	 
	SECTION 2.14. SENIOR UNSECURED OBLIGATIONS
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	REDEMPTION AND PURCHASES
	 	 	18	 
	 
	 	 	 	 
	SECTION 3.1. RIGHT TO REDEEM; NOTICE TO TRUSTEE
	 	 	18	 
	SECTION 3.2. SELECTION OF SECURITIES TO BE REDEEMED
	 	 	18	 
	SECTION 3.3. NOTICE OF REDEMPTION
	 	 	19	 
	SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION
	 	 	20	 
	SECTION 3.5. DEPOSIT OF REDEMPTION PRICE
	 	 	20	 
	SECTION 3.6. SECURITIES REDEEMED IN PART
	 	 	20	 
	SECTION 3.7. OTHER ARRANGEMENT ON CALL FOR REDEMPTION
	 	 	20	 
	SECTION 3.8. REPURCHASE OF SECURITIES AT THE OPTION OF HOLDERS
	 	 	21	 
	SECTION 3.9. REPURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON FUNDAMENTAL CHANGE
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	CONVERSION
	 	 	32	 
	 
	 	 	 	 
	SECTION 4.1. CONVERSION PRIVILEGE
	 	 	32	 
	SECTION 4.2. CONVERSION PROCEDURE; CONVERSION RATE; FRACTIONAL SHARES
	 	 	33	 
	SECTION 4.3. ADJUSTMENT OF CONVERSION RATE FOR COMMON STOCK
	 	 	36	 

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	 	 	Page	 
	SECTION 4.4. CONSOLIDATION OR MERGER OF THE COMPANY
	 	 	44	 
	SECTION 4.5. NOTICE OF ADJUSTMENT
	 	 	45	 
	SECTION 4.6. NOTICE IN CERTAIN EVENTS
	 	 	45	 
	SECTION 4.7. COMPANY TO RESERVE STOCK: REGISTRATION; LISTING
	 	 	46	 
	SECTION 4.8. TAXES ON CONVERSION
	 	 	46	 
	SECTION 4.9. CONVERSION AFTER RECORD DATE
	 	 	47	 
	SECTION 4.10. COMPANY DETERMINATION FINAL
	 	 	48	 
	SECTION 4.11. RESPONSIBILITY OF TRUSTEE FOR CONVERSION PROVISIONS
	 	 	48	 
	SECTION 4.12. UNCONDITIONAL RIGHT OF HOLDERS TO CONVERT
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	[RESERVED]
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	COVENANTS
	 	 	48	 
	 
	 	 	 	 
	SECTION 6.1. PAYMENT OF SECURITIES
	 	 	48	 
	SECTION 6.2. SEC REPORTS
	 	 	49	 
	SECTION 6.3. COMPLIANCE CERTIFICATES
	 	 	49	 
	SECTION 6.4. FURTHER INSTRUMENTS AND ACTS
	 	 	50	 
	SECTION 6.5. MAINTENANCE OF CORPORATE EXISTENCE
	 	 	50	 
	SECTION 6.6. RULE 144A INFORMATION REQUIREMENT
	 	 	50	 
	SECTION 6.7. STAY, EXTENSION AND USURY LAWS
	 	 	50	 
	SECTION 6.8. PAYMENT OF ADDITIONAL INTEREST
	 	 	50	 
	SECTION 6.9. PAYMENT OF CONTINGENT INTEREST
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	 	 	51	 
	 
	 	 	 	 
	SECTION 7.1. COMPANY MAY CONSOLIDATE, ETC, ONLY ON CERTAIN TERMS
	 	 	51	 
	SECTION 7.2. SUCCESSOR SUBSTITUTED
	 	 	51	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	DEFAULT AND REMEDIES
	 	 	52	 
	 
	 	 	 	 
	SECTION 8.1. EVENTS OF DEFAULT
	 	 	52	 
	SECTION 8.2. ACCELERATION
	 	 	53	 
	SECTION 8.3. OTHER REMEDIES
	 	 	54	 
	SECTION 8.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT
	 	 	54	 
	SECTION 8.5. CONTROL BY MAJORITY
	 	 	54	 
	SECTION 8.6. LIMITATIONS ON SUITS
	 	 	55	 
	SECTION 8.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT
	 	 	55	 
	SECTION 8.8. COLLECTION SUIT BY TRUSTEE
	 	 	55	 
	SECTION 8.9. TRUSTEE MAY FILE PROOFS OF CLAIM
	 	 	56	 
	SECTION 8.10. PRIORITIES
	 	 	56	 
	SECTION 8.11. UNDERTAKING FOR COSTS
	 	 	56	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	TRUSTEE
	 	 	57	 
	 
	 	 	 	 
	SECTION 9.1. DUTIES OF TRUSTEE
	 	 	57	 

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	 	 	Page	 
	SECTION 9.2. RIGHTS OF TRUSTEE
	 	 	58	 
	SECTION 9.3. INDIVIDUAL RIGHTS OF TRUSTEE
	 	 	59	 
	SECTION 9.4. TRUSTEE’S DISCLAIMER
	 	 	59	 
	SECTION 9.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT
	 	 	59	 
	SECTION 9.6. REPORTS BY TRUSTEE TO HOLDERS
	 	 	59	 
	SECTION 9.7. COMPENSATION AND INDEMNITY
	 	 	60	 
	SECTION 9.8. REPLACEMENT OF TRUSTEE
	 	 	60	 
	SECTION 9.9. SUCCESSOR TRUSTEE BY MERGER, ETC
	 	 	61	 
	SECTION 9.10. ELIGIBILITY; DISQUALIFICATION
	 	 	62	 
	SECTION 9.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	62	 
	 
	 	 	 	 
	SECTION 10.1. SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	62	 
	SECTION 10.2. APPLICATION OF TRUST MONEY
	 	 	63	 
	SECTION 10.3. REPAYMENT TO COMPANY
	 	 	63	 
	SECTION 10.4. REINSTATEMENT
	 	 	63	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	64	 
	 
	 	 	 	 
	SECTION 11.1. WITHOUT CONSENT OF HOLDERS
	 	 	64	 
	SECTION 11.2. WITH CONSENT OF HOLDERS
	 	 	65	 
	SECTION 11.3. COMPLIANCE WITH TRUST INDENTURE ACT
	 	 	66	 
	SECTION 11.4. REVOCATION AND EFFECT OF CONSENTS
	 	 	66	 
	SECTION 11.5. NOTATION ON OR EXCHANGE OF SECURITIES
	 	 	67	 
	SECTION 11.6. TRUSTEE TO SIGN AMENDMENTS, ETC
	 	 	67	 
	SECTION 11.7. EFFECT OF SUPPLEMENTAL INDENTURES
	 	 	67	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	TAX TREATMENT
	 	 	67	 
	 
	 	 	 	 
	SECTION 12.1. TAX TREATMENT
	 	 	67	 
	SECTION 12.2. COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE
	 	 	68	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	MISCELLANEOUS
	 	 	68	 
	 
	 	 	 	 
	SECTION 13.1. TRUST INDENTURE ACT CONTROLS
	 	 	68	 
	SECTION 13.2. NOTICES. 69
SECTION 13.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS
	 	 	70	 
	SECTION 13.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT
	 	 	70	 
	SECTION 13.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS
	 	 	71	 
	SECTION 13.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT
	 	 	71	 
	SECTION 13.7. LEGAL HOLIDAYS
	 	 	71	 
	SECTION 13.8. GOVERNING LAW
	 	 	71	 
	SECTION 13.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS
	 	 	71	 
	SECTION 13.10. NO RECOURSE AGAINST OTHERS
	 	 	71	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 13.11. SUCCESSORS
	 	 	72	 
	SECTION 13.12. MULTIPLE COUNTERPARTS
	 	 	72	 
	SECTION 13.13. SEPARABILITY
	 	 	72	 
	SECTION 13.14. TABLE OF CONTENTS, HEADINGS, ETC
	 	 	72	 

iv

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA SECTION	 	 	 	INDENTURE
	 	 	 	 	SECTION
	Section	 	310(a)(1)
	 	9.10
	 	 	(a)(2)
	 	9.10
	 	 	(a)(3)
	 	N.A.**
	 	 	(a)(4)
	 	N.A.
	 	 	(a)(5)
	 	9.10
	 	 	(b)
	 	9.8; 9.10
	 	 	(c)
	 	N.A.
	Section	 	311(a)
	 	9.11
	 	 	(b)
	 	9.11
	 	 	(c)
	 	N.A.
	Section	 	312(a)
	 	2.5
	 	 	(b)
	 	13.3
	 	 	(c)
	 	13.3
	Section	 	313(a)
	 	9.6
	 	 	(b)(1)
	 	N.A.
	 	 	(b)(2)
	 	9.6
	 	 	(c)
	 	9.6; 13.2
	 	 	(d)
	 	9.6
	Section	 	314(a)
	 	6.2; 6.4; 13.2
	 	 	(b)
	 	N.A.
	 	 	(c)(1)
	 	13.4(a)
	 	 	(c)(2)
	 	13.4(a)
	 	 	(c)(3)
	 	N.A.
	 	 	(d)
	 	N.A.
	 	 	(e)
	 	13.4(b)
	 	 	(f)
	 	N.A.
	Section	 	315(a)
	 	9.1(b)
	 	 	(b)
	 	9.5; 13.2
	 	 	(c)
	 	9.1(a)
	 	 	(d)
	 	9.1(c)
	 	 	(e)
	 	8.11
	Section	 	316(a)(last sentence)
	 	2.9
	 	 	(a)(1)(A)
	 	8.5
	 	 	(a)(1)(B)
	 	8.4
	 	 	(a)(2)
	 	N.A.
	 	 	(b)
	 	8.7
	 	 	(c)
	 	13.5
	Section	 	317(a)(1)
	 	8.8
	 	 	(a)(2)
	 	8.9
	 	 	(b)
	 	2.4

	*	 	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture.
	 
	**	 	N.A. means Not Applicable.

 

 

     THIS INDENTURE dated as of December 22, 2004 is between IVAX Corporation, a corporation
duly organized under the laws of the State of Florida (the “Company”), and U.S. Bank National
Association, a national banking association organized and existing under the laws of the United
States, as Trustee (the “Trustee”).

     In consideration of the premises and the purchase of the Securities by the Holders thereof,
both parties agree as follows for the benefit of the other and for the equal and ratable benefit of
the registered Holders of the Company’s 1.875% Convertible Senior Notes due 2024.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. DEFINITIONS.

     “Additional Interest” has the meaning specified in Paragraph 2 of the Security.

     “Affiliate” means, with respect to any specified person, 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
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” means any Registrar, Paying Agent or Conversion Agent.

     “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Security, the rules and procedures of the Depositary, in each case
to the extent applicable to such transfer or exchange.

     “Bid Solicitation Agent” means, an agent selected by the Company to serve as bid solicitation
agent hereunder, and, initially, the Trustee.

     “Board of Directors” means either the board of directors of the Company or any committee of
the Board of Directors authorized to act for it with respect to this Indenture.

     “Business Day” means each day that is not a Legal Holiday.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, but excluding any debt securities convertible into such equity.

     “Cash” or “cash” means such coin or currency of the United States as at any time of payment is
legal tender for the payment of public and private debts.

     “Certificated Security” means a Security that is in substantially the form attached hereto as
Exhibit A and that does not include the information or the schedule called for by footnotes
1, 3 and 4 thereof.

 

 

     “Common Stock” means the common stock of the Company, $0.10 par value, as it exists on the
date of this Indenture and any shares of any class or classes of capital stock of the Company
resulting from any reclassification or reclassifications thereof and which have no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding-up of the Company and which are not subject to redemption by
the Company; provided, however, that if at any time there shall be more than one such resulting
class, the shares of each such class then so issuable on conversion of Securities shall be
substantially in the proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes resulting from all
such reclassifications.

     “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
“Company” shall mean such successor Company.

     “Contingent Interest” has the meaning set forth in the Securities.

     “Contingent Interest Period” has the meaning set forth in the Securities.

     “Conversion Price” means, at any time, $1,000 divided by the Conversion Rate in effect at such
time, rounded to two decimal places (rounded up if the third decimal place thereof is 5 or more and
otherwise rounded down).

     “Conversion Rate” means initially 48.1301 shares per $1,000 principal amount of Securities,
subject to adjustment as set forth herein.

     “Conversion Value” means, at any time, the amount equal to the product of the Sales Price at
such time multiplied by the then current Conversion Rate.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time the
trust created by this Indenture shall be administered which office at the date of the execution of
this Indenture is located at 60 Livingston Avenue, EP-MN-WS3C, St. Paul, Minnesota 55107
Attention: Corporate Trust Services (IVAX Corporation — 1.875% Convertible Senior Notes Due 2024)
or at any other time at such other address as the Trustee may designate from time to time by notice
to the Company.

     “Default” or “default” means, when used with respect to the Securities, any event which is or,
after notice or passage of time or both, would be an Event of Default.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

     “Final Maturity Date” means December 15, 2024.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect as of the date of this Indenture, including those set forth in (1) the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants, (2) the statements and pronouncements of the Financial Accounting Standards

2

 

Board, (3) such other statements by such other entity as approved by a significant segment of
the accounting profession and (4) the rules and regulations of the SEC governing the inclusion of
financial statements (including pro forma financial statements) in registration statements filed
under the Securities Act and periodic reports required to be filed pursuant to Section 13 of the
Exchange Act, including opinions and pronouncements in staff accounting bulletins and similar
written statements from the accounting staff of the SEC.

     “Global Security” means a permanent Global Security that is in substantially the form attached
hereto as Exhibit A and that includes the information and schedule called for by footnotes
1, 3 and 4 thereof and which is deposited with the Depositary or its custodian and registered in
the name of the Depositary or its nominee.

     “Holder” or “Securityholder” means the person in whose name a Security is registered on the
Primary Registrar’s books.

     “Indebtedness” means, with respect to any Person, without duplication, (a) all indebtedness,
obligations and other liabilities (contingent or otherwise) of such Person (i) for borrowed money
(including obligations of such Person in respect of overdrafts, foreign exchange contracts,
currency exchange agreements, interest rate protection agreements, and any loans or advances from
banks, whether or not evidenced by notes or similar instruments) or (ii) evidenced by credit or
loan agreements, bonds, debentures, notes or similar instruments (whether or not the recourse of
the lender is to the whole of the assets of such Person or to only a portion thereof) (other than
any accounts payable or other accrued current liability or obligation incurred in the ordinary
course of business in connection with the obtaining of materials or services), (b) all
reimbursement obligations and other liabilities (contingent or otherwise) of such Person with
respect to letters of credit, bank guarantees or bankers’ acceptances, (c) all obligations and
liabilities (contingent or otherwise) of such Person (i) in respect of leases of such Person
required, in conformity with GAAP, to be accounted for as capitalized lease obligations on the
balance sheet of such Person (as determined by the Company), or (ii) under any lease or related
document (including a purchase agreement, conditional sale or other title retention agreement) in
connection with the lease of real property or improvement thereon (or any personal property
included as part of any such lease) which provides that such Person is contractually obligated to
purchase or cause a third party to purchase the leased property or pay an agreed upon residual
value of the leased property to the lessor (whether or not such lease transaction is characterized
as an operating lease or a capitalized lease in accordance with GAAP), (d) all obligations
(contingent or otherwise) of such Person with respect to any interest rate or other swap, cap,
floor or collar agreement, hedge agreement, forward contract, or other similar instrument or
agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement; (e) all
direct or indirect guaranties, agreements to be jointly liable or similar agreements by such Person
in respect of, and obligations or liabilities of such Person to purchase or otherwise acquire or
otherwise assure a creditor against loss in respect of, indebtedness, obligations or liabilities of
another Person of the kind described in clauses (a) through (d), and (f) any and all deferrals,
renewals, extensions, refinancings and refundings of, or amendments, modifications or supplements
to, any indebtedness, obligation or liability of the kind described in clauses (a) through (e).

3

 

     “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
terms of this Indenture.

     “Initial Purchaser” means UBS Securities LLC.

     “Interest Payment Date” has the meaning specified in Paragraph 1 of the Security.

     “Issuance Date” means the date on which the Securities are first authenticated and issued.

     “Market Price” means with respect to Securities, as of any date of determination, the average
of the secondary market bid quotations per $1,000 principal amount of Securities obtained by the
Bid Solicitation Agent for $1,000,000 principal amount of Securities at approximately 4:00 p.m.,
New York City time, on such date of determination from three securities dealers (none of which
shall be an Affiliate of the Company) selected by the Company, which may include the Initial
Purchaser, provided, that if at least three such bids cannot be reasonably obtained
by the Bid Solicitation Agent, but two bids are obtained, then the average of the two bids shall be
used, and if only one such bid can be reasonably obtained by the Bid Solicitation Agent, this one
bid will be used; provided, however, if (a) the Bid Solicitation Agent, through the
exercise of reasonable efforts, is unable to obtain at least one bid from a securities dealer, or
(b) in the Company’s reasonable judgment, the bid quotations are not indicative of the secondary
market value of the Securities as of such date of determination, then the Market Price of a
Security for such date of determination shall equal (1) the Conversion Rate in effect as of such
date of determination multiplied by (2) the average Sale Price of a share of Common Stock for the
five Trading Days ending on such date of determination, appropriately adjusted to take into account
the occurrence, during the period commencing on the first of such Trading Days during such five
Trading Day period and ending on the date of determination, as the case may be, of any event
described in Sections 4.3 or 4.4; and

     “Measurement Period” means the last 30 consecutive Trading Days in a fiscal quarter.

     “Officer” means the Chairman or any Co-Chairman of the Board, any Vice Chairman of the Board,
the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the
Controller, the Secretary or any Assistant Controller or Assistant Secretary of the Company.

     “Officers’ Certificate” means a certificate signed by the principal executive officer,
principal financial officer or principal accounting officer of the Company and by one other
Officer.

     “Opinion of Counsel” means a written opinion from legal counsel experienced in such matters as
are covered by the opinion. The counsel may be an employee of, or counsel to, the Company or the
Trustee.

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

4

 

     “Principal” or “principal” of a debt security, including the Securities, means the principal
of the security.

     “Redemption Date” when used with respect to any Security to be redeemed, means the date fixed
for such redemption pursuant to this Indenture.

     “Redemption Price” when used with respect to any Security to be redeemed, means the price
fixed for such redemption pursuant to this Indenture, as set forth in the form of Security annexed
as Exhibit A hereto.

     “Registration Rights Agreement” means the Registration Rights Agreement dated, as of December
22, 2004, between the Company and the Initial Purchaser.

     “Regular Record Date” has the meaning specified in Paragraph 1 of the Security.

     “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

     “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule.

     “Sale Price” of one share of Common Stock on any date means the closing per share sale price
of such Common Stock (or, if no closing sale price is reported, the average of the bid and ask
prices or, if there is more than one bid or ask price, the average of the average bid and the
average ask prices) on such date as reported in composite transactions on the principal U.S.
national securities exchange on which the Common Stock is traded or if the Common Stock is not
traded on a U.S. national securities exchange, as reported by the Nasdaq National Market system or
by the National Quotation Bureau Incorporated. In the absence of such a quotation, the Board of
Directors of the Company shall be entitled to make a good faith determination of the sale price on
the basis it considers appropriate which shall be conclusive.

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the 1.875% Convertible Senior Notes due 2024 or any of them (each, a
“Security”), as amended or supplemented from time to time, that are issued under this Indenture.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time.

     “Securities Custodian” means the Trustee, as custodian with respect to the Securities in
global form, or any successor thereto.

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

     “Subsidiary” means, in respect of any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
or other interests (including partnership interests) entitled (without regard to the

5

 

occurrence of any contingency) to vote in the election of directors, managers, general
partners or trustees thereof is at the time owned or controlled, directly or indirectly, by (i)
such Person; (ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more
Subsidiaries of such Person.

     “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder as in effect on the date of this Indenture, except as provided in Section 11.3, and
except to the extent any amendment to the Trust Indenture Act expressly provides for application of
the Trust Indenture Act as in effect on another date.

     “Trading Day” means, with respect to any security, each Monday, Tuesday, Wednesday, Thursday
and Friday, other than any day on which securities are not generally traded on the principal
exchange or market in which such security is traded.

     “Transfer Restricted Global Security” means a Global Security that is a Transfer Restricted
Security.

     “Transfer Restricted Security” means a Security required to bear the restricted legend set
forth in the form of Security set forth in Exhibit A of this Indenture.

     “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of this Indenture, and thereafter means the
successor.

     “Trust Officer” means, with respect to the Trustee, any officer assigned to the Corporate
Trust Office, and also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer’s knowledge of and familiarity with the particular subject.

     “Vice President” when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president.”

     “Voting Stock” of a Person means all classes of Capital Stock or other interests (including
partnership interests) of such Person then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or trustees thereof.

     SECTION 1.2. OTHER DEFINITIONS.

	 	 	 
	Term	 	Defined in Section
	“Agent Members”
	 	2.1(b)
	“Bankruptcy Law”
	 	8.1
	“Change in Control”
	 	3.9(a)(1)
	“Company Order”
	 	2.2
	“Conversion Agent”
	 	2.3
	“Conversion Notice”
	 	4.2(b)
	“Current Market Price”
	 	4.3(g)
	“Conversion Value Determination Date”
	 	4.2(b)
	“Custodian”
	 	8.1

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	Term	 	Defined in Section
	“DTC”
	 	2.1
	“Depositary”
	 	2.1
	“Event of Default”
	 	8.1
	” ‘ex’ date”
	 	4.3(g)
	“Expiration Date”
	 	4.3(e)
	“Expiration Time”
	 	4.3(f)
	“Fair Market Value”
	 	4.3(g)
	“Fundamental Change”
	 	3.9(a)(1)
	“Fundamental Change Company Notice”
	 	3.9(a)(2)
	“Fundamental Change Repurchase Date”
	 	3.9(a)(1)
	“Fundamental Change Repurchase Price”
	 	3.9(a)(3)
	“Legal Holiday”
	 	13.7
	“Legend”
	 	2.12
	“Net Share Amount”
	 	4.2(a)(ii)
	“Net Shares”
	 	4.2(a)(ii)
	“Net Share Settlement Conversion Value”
	 	4.2(b)
	“Non-Electing Share”
	 	4.4
	“Note Measurement Period”
	 	4.1(a)(ii)
	“Notice of Default”
	 	8.1
	“Paying Agent”
	 	2.3
	“Primary Registrar”
	 	2.3
	“Principal Return”
	 	4.2(a)(i)
	“Purchase Agreement”
	 	2.1
	“Purchase Offer”
	 	3.8(a)
	“Purchased Shares”
	 	4.3(f)
	“QIB”
	 	2.1
	“Record Date”
	 	4.3(g)
	“Reference Period”
	 	4.3(d)(2)
	“Reference Property”
	 	4.4(c)
	“Registrar”
	 	2.3
	“Regular Record Date”
	 	3.4
	“Repurchase Date”
	 	3.8(a)(1)
	“Repurchase Notice”
	 	3.8(a)(2)
	“Repurchase Price”
	 	3.8(a)(1)
	“Spin-Off”
	 	4.3(d)(3)
	“Ten-Day Weighted Average Price Per Share”
	 	4.2(b)(ii)
	“Trigger Event”
	 	4.3(d)(4)
	“Volume-Weighted Average Price”
	 	4.2(b)

     TRUST INDENTURE ACT PROVISIONS. Whenever this Indenture refers to a provision of the
TIA, that provision is incorporated by reference in and made a part of this Indenture. The
Indenture shall also include those provisions of the TIA required to be included herein by the
provisions of the Trust Indenture Reform Act of 1990. The following TIA terms used in this
Indenture have the following meanings:

          (A) “indenture securities” means the Securities;

          (B) “indenture security holder” means a Securityholder;

          (C) “indenture to be qualified” means this Indenture;

          (D) “indenture trustee” or “institutional trustee” means the Trustee; and

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          (E) “obligor” on the indenture securities means the Company or any other obligor on the
Securities.

     All other terms used in this Indenture that are defined in the TIA, defined by TIA reference
to another statute or defined by any SEC rule and not otherwise defined herein have the meanings
assigned to them therein.

     SECTION 1.3. RULES OF CONSTRUCTION.

     Unless the context otherwise requires:

          (A) a term has the meaning assigned to it;

          (B) an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

          (C) words in the singular include the plural, and words in the plural include the singular;

          (D) provisions apply to successive events and transactions;

          (E) the term “merger” includes a statutory share exchange and the term “merged” has a
correlative meaning;

          (F) the masculine gender includes the feminine and the neuter;

          (G) references to agreements and other instruments include subsequent amendments thereto; and

          (H) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision.

ARTICLE 2

THE SECURITIES

     SECTION 2.1. FORM AND DATING.

     The Securities and the Trustee’s certificate of authentication shall be substantially in the
respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of
this Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange rule or usage. The Company shall provide any such notations, legends or endorsements to
the Trustee in writing. Each Security shall be dated the date of its authentication. The
Securities are being offered and sold by the Company pursuant to a Purchase Agreement, dated
December 17, 2004 (the “Purchase Agreement”), among the Company and the Initial Purchaser, in
transactions exempt from, or not subject to, the registration requirements of the Securities Act.

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     (a) Restricted Global Securities. All of the Securities are initially being offered
and sold to qualified institutional buyers as defined in Rule 144A (collectively, “QIBs” or
individually, each a “QIB”) in reliance on Rule 144A under the Securities Act and shall be issued
initially in the form of one or more Restricted Global Securities, which shall be deposited on
behalf of the purchasers of the Securities represented thereby with the Trustee, at its Corporate
Trust Office, as custodian for the depositary, The Depository Trust Company (“DTC”) (such
depositary, or any successor thereto, being hereinafter referred to as the “Depositary”), and
registered in the name of its nominee, Cede & Co., duly executed by the Company and authenticated
by the Trustee as hereinafter provided. The aggregate principal amount of the Restricted Global
Securities may from time to time be increased or decreased by adjustments made on the records of
the Securities Custodian as hereinafter provided, subject in each case to compliance with the
Applicable Procedures.

     (b) Global Securities In General. Each Global Security shall represent such of the
outstanding Securities as shall be specified therein and each 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 reduced or
increased, as appropriate, to reflect exchanges, redemptions, purchases or conversions of such
Securities. Any adjustment of the aggregate principal amount 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 in accordance with instructions given by the Holder thereof as
required by Section 2.12 and shall be made on the records of the Trustee and the Depositary.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary or under
the Global Security, and the Depositary (including, for this purpose, its nominee) 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 Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall (A) 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 (B) impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any Security.

     (c) Book Entry Provisions. The Company shall execute and the Trustee shall, in
accordance with this Section 2.1(c), authenticate and deliver initially one or more Global
Securities that (i) shall be registered in the name of the Depositary, (ii) shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary’s instructions and (iii) shall bear
legends substantially to the following effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY 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 THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH

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OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN
THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.”

     SECTION 2.2. EXECUTION AND AUTHENTICATION.

     An Officer shall sign the Securities for the Company by manual or facsimile signature attested
by the manual or facsimile signature of the Secretary or an Assistant Secretary of the Company.
Typographic and other minor errors or defects in any such facsimile signature shall not affect the
validity or enforceability of any Security which has been authenticated and delivered by the
Trustee.

     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 shall authenticate and make available for delivery Securities for original issue
in the aggregate principal amount of up to $333,000,000 upon receipt of a written order or orders
of the Company signed by an Officer of the Company (a “Company Order”). The Company Order shall
specify the amount of Securities to be authenticated, shall provide that all such Securities will
be represented by a Restricted Global Security and the date on which each original issue of
Securities is to be authenticated. The aggregate principal amount of Securities outstanding at any
time may not exceed $333,000,000 except as provided in Section 2.7.

     The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent acceptable to the Company to authenticate Securities. 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 shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company.

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     The Securities shall be issuable only in registered form without coupons and only in
denominations of $1,000 principal amount and any integral multiple thereof.

     SECTION 2.3. REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

     The Company shall maintain one or more offices or agencies where Securities may be presented
for registration of transfer or for exchange (each, a “Registrar”), one or more offices or agencies
where Securities may be presented for payment (each, a “Paying Agent”), one or more offices or
agencies where Securities may be presented for conversion (each, a “Conversion Agent”) and one or
more offices or agencies where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served. The Company will at all times maintain a Paying
Agent, Conversion Agent, Registrar and an office or agency where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served in the Borough of Manhattan,
The City of New York. One of the Registrars (the “Primary Registrar”) shall keep a register of the
Securities and of their transfer and exchange.

     The Company shall enter into an appropriate agency agreement with any 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 Agent not a party to
this Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or
agent for service of notices and demands in any place required by this Indenture, or fails to give
the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company
may act as Paying Agent (except for the purposes of Section 6.1 and Article 10).

     The Company hereby initially designates the Trustee as Paying Agent, Registrar, Securities
Custodian, Bid Solicitation Agent and Conversion Agent, and each of the Corporate Trust Office of
the Trustee and the office or agency of the Trustee in the Borough of Manhattan, The City of New
York (which shall initially be U.S. Bank Trust National Association, an Affiliate of the Trustee,
as agent of the Trustee located at Mail Station EX-NY-WALL, 100 Wall Street, Suite 1600, New York,
New York 10005, Attention: Corporate Trust Services (IVAX Corporation – 1.875% Convertible Senior
Notes due 2024), one such office or agency of the Company for each of the aforesaid purposes.

     SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST.

     Prior to 11:00 a.m., New York City time, on each due date of the principal of or interest, if
any, on any Securities, the Company shall deposit with a Paying Agent a sum sufficient to pay such
principal or interest, if any, so becoming due. A Paying Agent shall hold in trust for the benefit
of Securityholders or the Trustee all money held by the Paying Agent for the payment of principal
of or interest, if any, on the Securities, and shall notify the Trustee of any default by the
Company (or any other obligor on the Securities) in making any such payment. If the Company or an
Affiliate of the Company acts as Paying Agent, it shall, before 11:00 a.m., New York City time, on
each due date of the principal of or interest on any Securities, segregate the money 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 the Trustee may at any time during the continuance of any default, upon
written request to a Paying Agent, require such Paying Agent to pay forthwith to

11

 

the Trustee all sums so held in trust by such Paying Agent. Upon doing so, the Paying Agent
(other than the Company) shall have no further liability for the money.

     SECTION 2.5. SECURITYHOLDER 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 Securityholders. If the Trustee is not the
Primary Registrar, the Company shall furnish to the Trustee on or before each semiannual 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
Securityholders.

     SECTION 2.6. TRANSFER AND EXCHANGE.

     Subject to compliance with any applicable additional requirements contained in Section 2.12,
when a Security is presented to a Registrar with a request to register a transfer thereof or to
exchange such Security for an equal principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested if its
requirements for such transactions are met; provided, however, that every Security presented or
surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by an
assignment form and, if applicable, a transfer certificate each in the form included in Exhibit
A, and in form satisfactory to the Registrar duly executed by the Holder thereof or its
attorney duly authorized in writing. To permit registration of transfers and exchanges, upon
surrender of any Security for registration of transfer or exchange at an office or agency
maintained pursuant to Section 2.3, the Company shall execute and the Trustee shall authenticate
Securities of a like aggregate principal amount at the Registrar’s request. Any exchange or
transfer shall be without charge, except that the Company or the Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto, and provided, that this sentence shall not apply to any exchange pursuant to
Section 2.10, 2.12(a), 3.6, 3.11, or 11.5 not involving any transfer.

     Neither the Company, any Registrar nor the Trustee shall be required to exchange or register a
transfer of (i) any Securities for a period of 15 days next preceding any mailing of a notice of
Securities to be redeemed, (ii) any Securities or portions thereof selected or called for
redemption (except, in the case of redemption of a Security in part, the portion thereof not to be
redeemed) or (iii) any Securities or portions thereof in respect of which a Fundamental Change
Repurchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the case
of the purchase of a Security in part, the portion thereof not to be purchased).

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

     Any Registrar appointed pursuant to Section 2.3 shall provide to the Trustee such information
as the Trustee may reasonably require in connection with the delivery by such Registrar of
Securities upon transfer or exchange of Securities.

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     Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States federal or state
securities law.

     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 Security (including any transfers between or among Agent
Members or other beneficial owners of interests in any Global Security) 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 2.7. REPLACEMENT SECURITIES.

     If any mutilated Security is surrendered to the Company, a Registrar or the Trustee, or the
Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction,
loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and
the Trustee such security or indemnity as will be required by them to save each of them harmless,
then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has
been acquired by a protected purchaser, the Company shall execute, and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, or is about to be redeemed or purchased by the Company pursuant to Article
3, the Company in its discretion may, instead of issuing a new Security, pay, redeem or purchase
such Security, as the case may be.

     Upon the issuance of any new Securities under this Section 2.7, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the reasonable fees and expenses of
the Trustee or the Registrar) in connection therewith.

     Every new Security issued pursuant to this Section 2.7 in lieu of any mutilated, destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the mutilated, destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

     The provisions of this Section 2.7 are (to the extent lawful) exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities.

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     SECTION 2.8. OUTSTANDING SECURITIES.

     Securities outstanding at any time are all Securities authenticated by the Trustee, except for
those canceled by it, those converted pursuant to Article 4, those delivered to it for cancellation
or surrendered for transfer or exchange and those described in this Section 2.8 as not outstanding.

     If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the
Company receives proof satisfactory to it that the replaced Security is held by a protected
purchaser.

     If a Paying Agent (other than the Company or an Affiliate of the Company) holds on a
Redemption Date, a Repurchase Date, a Fundamental Change Repurchase Date or the Final Maturity Date
money sufficient to pay the principal of and accrued interest on Securities (or portions thereof)
payable on that date, then on and after such Redemption Date, Repurchase Date, Fundamental Change
Repurchase Date or the final Maturity Date, as the case may be, such Securities (or portions
thereof, as the case may be) shall cease to be outstanding and interest on them shall cease to
accrue; provided, that if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefore satisfactory to
the Trustee has been made.

     Subject to the restrictions contained in Section 2.9, a Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Security.

     SECTION 2.9. TREASURY SECURITIES.

     In determining whether the Holders of the required principal amount of Securities have
concurred in any notice, direction, waiver or consent, Securities owned by the Company or any other
obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be
disregarded, except that, for purposes of determining whether the Trustee shall be protected in
relying on any such notice, direction, waiver or consent, only Securities which a Trust Officer of
the Trustee actually knows are so owned shall be so disregarded. Securities so owned which have
been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to the Securities and that the pledgee is
not the Company or any other obligor on the Securities or any Affiliate of the Company or of such
other obligor.

     SECTION 2.10. TEMPORARY SECURITIES.

     Until definitive Securities are ready for delivery, the Company may prepare and execute, and,
upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary Securities.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company with the consent of the Trustee considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary Securities.

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     SECTION 2.11. CANCELLATION.

     The Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar, the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any
Securities surrendered to them for transfer, exchange, redemption, payment or conversion. The
Trustee and no one else shall cancel, in accordance with its standard procedures, all Securities
surrendered for transfer, exchange, redemption, payment, conversion or cancellation and shall
deliver the canceled Securities to the Company. All Securities which are redeemed, purchased or
otherwise acquired by the Company or any of its Subsidiaries prior to the Final Maturity Date shall
be delivered to the Trustee for cancellation, and the Company may not hold or resell such
Securities or issue any new Securities to replace any such Securities or any Securities that any
Holder has converted pursuant to Article 4. Without limitation to the foregoing, any Securities
acquired by any investment bankers or other purchasers pursuant to Section 3.7 shall be surrendered
for conversion and thereafter cancelled, and may not be reoffered, sold or otherwise transferred.

     SECTION 2.12. LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS.

     (a) If Securities are issued upon the transfer, exchange or replacement of Securities subject
to restrictions on transfer and bearing the legends set forth on the forms of Securities attached
hereto as Exhibit A (collectively, the “Legend”), or if a request is made to remove the
Legend on a Security, the Securities so issued shall bear the Legend, or the Legend shall not be
removed, as the case may be, unless there is delivered to the Company and the Registrar such
satisfactory evidence, which shall include an Opinion of Counsel if requested by the Company or
such Registrar, as may be reasonably required by the Company and the Registrar, that neither the
Legend nor the restrictions on transfer set forth therein are required to ensure that transfers
thereof comply with the provisions of Rule 144A or Rule 144 under the Securities Act or that such
Securities are not “restricted” within the meaning of Rule 144 under the Securities Act;
provided, that no such evidence need be supplied in connection with the sale of
such Security pursuant to a registration statement that is effective at the time of such sale.
Upon (i) provision of such satisfactory evidence if requested, or (ii) written notification by the
Company to the Trustee and Registrar of the sale of such Security pursuant to a registration
statement that is effective at the time of such sale, the Trustee, at the written direction of the
Company, shall authenticate and deliver a Security that does not bear the Legend. If the Legend is
removed from the face of a Security and the Security is subsequently held by an Affiliate of the
Company, the Legend shall be reinstated.

     (b) A Global Security may not be transferred, in whole or in part, to any Person other than
the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided, that the foregoing shall not prohibit any transfer of
a Security that is issued in exchange for a Global Security but is not itself a Global Security.
No transfer of a Security to any Person shall be effective under this Indenture or the Securities
unless and until such Security has been registered in the name of such Person. Notwithstanding any
other provisions of this Indenture or the Securities, transfers of a Global Security, in whole or
in part, shall be made only in accordance with this Section 2.12.

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     (c) Subject to the succeeding paragraph, every Security shall be subject to the restrictions
on transfer provided in the Legend other than a Restricted Global Security. Whenever any Transfer
Restricted Security other than a Restricted Global Security is presented or surrendered for
registration of transfer or for exchange for a Security registered in a name other than that of the
Holder, such Security must be accompanied by a certificate in substantially the form set forth in
Exhibit B, dated the date of such surrender and signed by the Holder of such Security, as
to compliance with such restrictions on transfer. The Registrar shall not be required to accept
for such registration of transfer or exchange any Security not so accompanied by a properly
completed certificate.

     (d) The restrictions imposed by the Legend upon the transferability of any Security shall
cease and terminate when such Security has been sold pursuant to an effective registration
statement under the Securities Act or transferred in compliance with Rule 144 under the Securities
Act (or any successor provision thereto) or, if earlier, upon the expiration of the holding period
applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision). Any Security as to which such restrictions on transfer shall have expired in
accordance with their terms or shall have terminated may, upon a surrender of such Security for
exchange to the Registrar in accordance with the provisions of this Section 2.12 (accompanied, in
the event that such restrictions on transfer have terminated by reason of a transfer in compliance
with Rule 144 or any successor provision, by, if requested, an Opinion of Counsel reasonably
acceptable to the Company, addressed to the Company and in form acceptable to the Company, to the
effect that the transfer of such Security has been made in compliance with Rule 144 or such
successor provision), be exchanged for a new Security, of like tenor and aggregate principal
amount, which shall not bear the restrictive Legend. The Company shall inform the Trustee of the
effective date of any registration statement registering the Securities under the Securities Act.
The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith in
accordance with the aforementioned opinion of counsel or registration statement.

     (e) As used in the preceding two paragraphs of this Section 2.12, the term “transfer”
encompasses any sale, pledge, transfer, hypothecation or other disposition of any Security.

     (f) The provisions of clauses (i), (ii), (iii) and (iv) below shall apply only to Global
Securities:

     (i) Notwithstanding any other provisions of this Indenture or the Securities, a
Global Security shall not be exchanged in whole or in part for a Security registered
in the name of any Person other than the Depositary or one or more nominees thereof,
provided, that a Global Security may be exchanged for Securities registered in the
names of any person designated by the Depositary in the event that (A) the
Depositary has notified the Company that it is unwilling or unable to continue as
Depositary for such Global Security or such Depositary has ceased to be a “clearing
agency” registered under the Exchange Act, and a successor Depositary is not
appointed by the Company within 90 days, (B) the Company has provided the Depositary
with written notice that it has decided to discontinue use of the system of
book-entry transfer through the Depositary or any successor Depositary or (C) an
Event of Default has occurred and is continuing with respect to the Securities. Any
Global Security exchanged

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pursuant to clauses (A) or (B) above shall be so exchanged in whole and not in
part, and any Global Security exchanged pursuant to clause (C) above may be
exchanged in whole or from time to time in part as directed by the Depositary. Any
Security issued in exchange for a Global Security or any portion thereof shall be a
Global Security; provided, that any such Security so issued that is registered in
the name of a Person other than the Depositary or a nominee thereof shall not be a
Global Security.

     (ii) Securities issued in exchange for a Global Security or any portion thereof
shall be issued in definitive, fully-registered book-entry form, without interest
coupons, shall have an aggregate principal amount equal to that of such Global
Security 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 the applicable legends provided for herein. Any Global Security to be
exchanged in whole shall be surrendered by the Depositary to the Trustee, as
Registrar. With regard to any Global Security to be exchanged in part, either such
Global Security shall be so surrendered for exchange or, if the Trustee is acting as
custodian for the Depositary or its nominee with respect to such Global Security,
the principal amount thereof shall be reduced, 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 deliver the Security issuable on such exchange to or upon the order
of the Depositary or an authorized representative thereof.

     (iii) Subject to the provisions of clause (v) below, the registered Holder may
grant proxies and otherwise authorize any Person, including Agent Members and
persons that may hold interests through Agent Members, to take any action which a
Holder is entitled to take under this Indenture or the Securities.

     (iv) In the event of the occurrence of any of the events specified in clause
(i) above, the Company will promptly make available to the Trustee a reasonable
supply of Certificated Securities in definitive, fully registered form, without
interest coupons.

     (v) Neither 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
Security registered in the name of the Depositary or any nominee thereof, or under
any such Global Security, 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 Security 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 Security.

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     SECTION 2.13. CUSIP NUMBERS.

     The Company in issuing the Securities may use one or more “CUSIP” numbers (if then generally
in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption or purchase 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 or purchase and that reliance may be placed only on the
other identification numbers printed on the Securities, and any such redemption or purchase shall
not be affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee of any change in the “CUSIP” numbers.

     SECTION 2.14. SENIOR UNSECURED OBLIGATIONS.

     The Securities are senior unsecured obligations of the Company and rank equally in right of
payment with all existing and future unsecured and unsubordinated indebtedness of the Company
senior to existing and future subordinated indebtedness and junior to the existing and future
secured indebtedness to the extent of the security thereon of the Company.

ARTICLE 3

REDEMPTION AND PURCHASES

     SECTION 3.1. RIGHT TO REDEEM; NOTICE TO TRUSTEE.

     The Securities may be redeemed at the election of the Company, as a whole or from time to time
in part, at any time on or after December 15, 2010, at the Redemption Price specified in paragraph
6 of the form of Security attached hereto as Exhibit A, together with accrued and unpaid
interest (including Contingent Interest, if any, and Additional Interest, if any) up to, but not
including, the Redemption Date; provided, that if the Redemption Date falls after
an interest payment record date and on or before an interest payment date, then the interest
(including Contingent Interest, if any, and Additional Interest, if any) will be payable to the
Holders in whose name the Securities are registered at the close of business on the interest
payment record date.

     If the Company elects to redeem Securities pursuant to this Section 3.1 and Paragraph 6 of the
Securities, it shall notify the Trustee at least 45 days prior to the Redemption Date, as fixed by
the Company, (unless a shorter notice shall be satisfactory to the Trustee) of the Redemption Date
and the principal amount of Securities to be redeemed. If fewer than all of the Securities are to
be redeemed, the record date relating to such redemption shall be selected by the Company and given
to the Trustee, which record date shall not be less than 10 days after the date of notice to the
Trustee.

     SECTION 3.2. SELECTION OF SECURITIES TO BE REDEEMED.

     If less than all of the Securities are to be redeemed, unless the procedures of the Depositary
provide otherwise, the Trustee shall, at least 30 days but not more than 60 days prior to the
Redemption Date, select the Securities to be redeemed. The Trustee shall make the selection from
the Securities outstanding and not previously called for redemption, by lot, or in its discretion,
on a pro rata basis. Securities in denominations of $1,000 may only be redeemed

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in whole. The Trustee may select for redemption portions (equal to $1,000 or any integral
multiple thereof) of the principal of Securities that have denominations larger than $1,000.
Provisions of this Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.

     If any Security selected for partial redemption is converted in part before termination of the
conversion right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed to be the portion selected for redemption. Securities which have
been converted during a selection of Securities to be redeemed shall be treated by the Trustee as
outstanding for the purpose of such selection.

     SECTION 3.3. NOTICE OF REDEMPTION.

     At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail or
cause to be mailed a notice of redemption to each Holder of Securities to be redeemed at such
Holder’s address as it appears on the Primary Registrar’s books.

     The notice shall identify the Securities (including CUSIP numbers) to be redeemed and shall
state:

          (1) the Redemption Date;

          (2) the Redemption Price;

          (3) the then current Conversion Rate;

          (4) the name and address of each Paying Agent and Conversion Agent;

          (5) that Securities called for redemption must be presented and surrendered to a Paying Agent
to collect the Redemption Price;

          (6) that Holders who wish to convert Securities must surrender such Securities for conversion
no later than the close of business on the Business Day immediately preceding the Redemption Date
and must satisfy the other requirements set forth in Paragraph 9 of the Securities;

          (7) that, unless the Company defaults in making the payment of the Redemption Price, interest
on Securities called for redemption shall cease accruing on and after the Redemption Date and the
only remaining right of the Holder shall be to receive payment of the Redemption Price plus accrued
interest, if any upon presentation and surrender to a Paying Agent of the Securities; and

          (8) if any Security is being redeemed in part, the portion of the principal amount of such
Security to be redeemed and that, after the Redemption Date, upon presentation and surrender of
such Security, a new Security or Securities in aggregate principal amount equal to the unredeemed
portion thereof will be issued.

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     If any of the Securities to be redeemed is in the form of a Global Security, then the Company
shall modify such notice to the extent necessary to accord with the procedures of the Depositary
applicable to redemptions. At the Company’s written request, which request shall (i) be
irrevocable once given and (ii) set forth all relevant information required by clauses (1) through
(8) of the preceding paragraph, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense.

     SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION.

     Once notice of redemption is mailed, Securities called for redemption become due and payable
on the Redemption Date and at the Redemption Price stated in the notice, together with accrued and
unpaid interest (including Contingent Interest, if any, and Additional Interest, if any) except for
Securities that are converted in accordance with the provisions of Article 4. Upon presentation
and surrender to a Paying Agent, Securities called for redemption shall be paid at the Redemption
Price, plus accrued and unpaid interest (including Contingent Interest, if any, and Additional
Interest, if any) up to but not including the Redemption Date; provided, that if
the Redemption Date falls after an interest payment record date and on or before an interest
payment date, then the interest (including Contingent Interest, if any, and Additional Interest, if
any) will be payable to the Holders in whose name the Securities are registered at the close of
business on the interest payment record date (each, a “Regular Record Date”).

     SECTION 3.5. DEPOSIT OF REDEMPTION PRICE.

     Prior to 11:00 a.m. New York City time, on the Redemption Date, the Company shall deposit with
a Paying Agent (or, if the Company acts as Paying Agent, shall segregate and hold in trust) an
amount of money (in immediately available funds if deposited on such Redemption Date) sufficient to
pay the Redemption Price of and accrued and unpaid interest (including Contingent Interest, if any,
and Additional Interest, if any) on all Securities to be redeemed on that date, other than
Securities or portions thereof called for redemption on that date which have been delivered by the
Company to the Trustee for cancellation or have been converted. The Paying Agent shall as promptly
as practicable return to the Company any money not required for that purpose or, if such money is
then held by the Company in trust and is not required for such purpose, it shall be discharged from
the trust.

     SECTION 3.6. SECURITIES REDEEMED IN PART.

     Upon presentation and surrender of a Security that is redeemed in part, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder a new Security equal in
principal amount to the unredeemed portion of the Security surrendered.

     SECTION 3.7. OTHER ARRANGEMENT ON CALL FOR REDEMPTION.

     In lieu of a redemption of the Securities, the Company may arrange for the purchase of any
Securities called for redemption by an agreement with one or more investment bankers or other
purchasers to purchase such Securities by paying to a Paying Agent (other than the Company or any
of its Affiliates) in trust for the Holders, on or before 11:00 a.m. New York City time on the
Redemption Date, an amount that, together with any amounts deposited with such Paying Agent by the
Company for the redemption of such Securities, is not less than the

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Redemption Price of such Securities. Notwithstanding anything to the contrary contained in
this Article 3, the obligation of the Company to pay the Redemption Price of such Securities shall
be deemed to be satisfied and discharged to the extent such amount is so paid by such purchasers;
provided, however, that nothing in this Section 3.7 shall relieve the Company of its obligation to
pay the Redemption Price on Securities called for redemption. If such an agreement with one or
more investment banks or other purchasers is entered into, any Securities called for redemption and
not surrendered for conversion by the Holders thereof prior to the relevant Redemption Date may, at
the option of the Company upon written notice to the Trustee, be deemed, to the fullest extent
permitted by law, acquired by such purchasers from such Holders as of 11:00 a.m. New York City time
on the Redemption Date, subject to payment of the above amount as aforesaid. The Paying Agent
shall hold and pay to the Holders whose Securities are selected for redemption any such amount paid
to it for purchase in the same manner as it would money deposited with it by the Company for the
redemption of Securities. Without the Paying Agent’s prior written consent, no arrangement between
the Company and such purchasers for the purchase of any Securities shall increase or otherwise
affect any of the powers, duties, responsibilities or obligations of the Paying Agent as set forth
in this Indenture, and the Company agrees to indemnify the Paying Agent from, and hold it harmless
against, any loss, liability or expense arising out of or in connection with any such arrangement
for the purchase of any Securities between the Company and such purchasers, including the costs and
expenses incurred by the Paying Agent in the defense of any claim or liability arising out of or in
connection with the exercise or performance of any of its powers, duties, responsibilities or
obligations under this Indenture.

     SECTION 3.8. REPURCHASE OF SECURITIES AT THE OPTION OF HOLDERS.

     (a) Optional Put.

          (1) Securities shall be repurchased in Cash by the Company, at the option of the Holder
thereof, on December 15, 2010, December 15, 2014 and December 15, 2019 (each, a “Repurchase Date”),
at a repurchase price equal to 100% of the principal amount of those Securities plus accrued and
unpaid interest (including Contingent Interest, if any, and Additional Interest, if any) to, but
not including, such Repurchase Date (the “Repurchase Price”), subject to satisfaction by or on
behalf of the Holder of the requirements set forth in Section 3.8(a)(3).

          (2) No later than 20 Business Days prior to each Repurchase Date, the Company shall mail a
written notice of the repurchase right under Section 3.8(a)(1) (a “Purchase Offer”) by first class
mail to the Trustee and to each Holder (and to beneficial owners as required by applicable law).
The notice shall include a form of notice to be completed by the Holder and returned to the Company
in the event that the Holder elects such right to so repurchase (the “Repurchase Notice”) and shall
briefly state, as applicable:

               (i) the date by which the Repurchase Notice must be delivered to the Paying
Agent in order for a Holder to exercise the repurchase right;

               (ii) the Repurchase Date;

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               (iii) the Repurchase Price;

               (iv) the name and address of the Paying Agent and the Conversion Agent;

               (v) the Conversion Rate;

               (vi) that the Securities as to which a Repurchase Notice has been given may be
converted if they are otherwise convertible pursuant to Article 4 only if the
Repurchase Notice has been withdrawn in accordance with the terms of this Indenture;

               (vii) that the Securities must be surrendered to the Paying Agent to collect
payment;

               (viii) that the Repurchase Price for any Security as to which a Repurchase
Notice has been duly given and not withdrawn will be paid promptly following the
later of the Repurchase Date and the time of surrender of such Security;

               (ix) the procedures the Holder must follow to exercise its put right under this
Section 3.8(a);

               (x) the conversion rights, if any, of the Securities;

               (xi) the procedures for withdrawing a Repurchase Notice;

               (xii) that, unless the Company defaults in making payment of such Repurchase
Price, interest (including Contingent Interest, if any, and Additional Interest, if
any) on Securities surrendered for repurchase by the Company will cease to accrue on
and after the Repurchase Date; and

               (xiii) the CUSIP number(s) of the Securities.

     At the Company’s request, the Trustee shall give the Purchase Offer in the Company’s name and
at the Company’s expense; provided, however, that the Company makes such request at least three
Business Days (unless a shorter period shall be satisfactory to the Trustee) prior to the date by
which such Purchase Offer must be given to the Holder in accordance with this Section 3.8(a)(2);
provided, further, that the text of the notice of repurchase right shall be prepared by the
Company.

     (3) A Holder may exercise its right specified in Section 3.8(a)(1) upon delivery of a
properly completed Repurchase Notice to the Paying Agent at any time during the period beginning at
9:00 a.m., New York City time, on the date that is 20 Business Days immediately preceding the
relevant Repurchase Date until 5:00 p.m., New York City time, on the Business Day immediately
preceding such Repurchase Date, stating:

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          (i) the certificate number (if certified) of the Security which the Holder will
deliver to be repurchased or the appropriate Depositary procedures if Certificated
Securities have not been issued;

          (ii) the portion of the principal amount of the Security which the Holder will
deliver to be repurchased, which portion must be in principal amounts of $1,000 or
an integral multiple of $1,000; and

          (iii) that such Security shall be repurchased by the Company as of the
Repurchase Date pursuant to the terms and conditions specified in the Securities and
in this Indenture.

     The delivery of such Security to the Paying Agent with, or at any time after delivery of, the
Repurchase Notice (together with all necessary endorsements) at the offices of the Paying Agent
shall be a condition to the receipt by the Holder of the Repurchase Price therefor;
provided, however, that such Repurchase Price shall be so paid pursuant to this
Section 3.8(a) only if the Security so delivered to the Paying Agent shall conform in all respects
to the description thereof in the related Repurchase Notice.

     The Company shall repurchase from the Holder thereof, pursuant to this Section 3.8(a), a
portion of a Security, so long as the principal amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the repurchase of all of a
Security also apply to the repurchase of such portion of such Security.

     Any repurchase by the Company contemplated pursuant to the provisions of this Section 3.8(a)
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Repurchase Date and the time of delivery of the Security with the
necessary endorsements.

     Notwithstanding anything contained herein to the contrary, any Holder delivering to the Paying
Agent the Repurchase Notice contemplated by this Section 3.8(a)(3) shall have the right to withdraw
such Repurchase Notice at any applicable time prior to 5:00 p.m., New York City time, on the
Business Day immediately preceding the Repurchase Date by delivery of a written notice of
withdrawal to the Paying Agent in accordance with Section 3.8(b).

     The Paying Agent shall promptly notify the Company of the receipt by it of any Repurchase
Notice or written notice of withdrawal thereof.

     (b) Effect of Repurchase Notice.

     Upon receipt by the Paying Agent of the Repurchase Notice specified in Section 3.8(a)(3), the
Holder of the Security in respect of which such Repurchase Notice was given shall (unless such
Repurchase Notice is withdrawn as specified in the following paragraph) thereafter be entitled to
receive solely the Repurchase Price with respect to such Security. Such Repurchase Price shall be
paid to such Holder, subject to receipts of Cash by the Paying Agent, promptly following the later
of (a) the Repurchase Date with respect to such Security (provided the conditions in
Section 3.8(a)(3) have been satisfied) and (b) the time of delivery of such Security to the Paying
Agent by the Holder thereof in the manner required by Section 3.8(a)(3).

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     Securities in respect of which a Repurchase Notice has been given by the Holder thereof may
not be converted pursuant to Article IV on or after the date of the delivery of such Repurchase
Notice unless such Repurchase Notice has first been validly withdrawn as specified in the following
paragraph.

     A Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to
the office of the Paying Agent in accordance with the Repurchase Notice at any time prior to 5:00
p.m., New York City time, on the Business Day immediately preceding the Repurchase Date,
specifying:

     (1) the Holder’s name and an election to withdraw such Repurchase Notice;

     (2) the certificate number, if any, or the appropriate Depositary procedures, if
applicable, of the Security in respect of which such notice of withdrawal is being
submitted;

     (3) the principal amount of the Security (which must be in an integral multiple of
$1,000) with respect to which such notice of withdrawal is being submitted; and

     (4) the principal amount, if any, of such Security which remains subject to the
original Repurchase Notice and which has been or will be delivered for repurchase by the
Company.

     (c) Deposit of Repurchase Price.

     Prior to 11:00 a.m., New York City time, on the applicable Repurchase Date, the Company shall
deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate of any of them is
acting as the Paying Agent, shall segregate and hold in trust as provided in Section 2.4) an amount
of Cash (in immediately available funds if deposited on such Business Day) sufficient to pay the
aggregate Repurchase Price of all the Securities or portions thereof which are to be repurchased on
such Repurchase Date.

     If the Paying Agent holds, in accordance with the terms hereof, at 11:00 a.m., New York City
time, on the Business Day immediately following the applicable Repurchase Date, Cash sufficient to
pay the Repurchase Price of any Securities for which a Repurchase Notice has been tendered and not
withdrawn pursuant to Section 3.8(b), then, immediately after such Repurchase Date, such Securities
will cease to be outstanding and interest (including, Contingent Interest, if any) and Additional
Interest, if any, on such Securities will cease to accrue, whether or not such Securities are
delivered to the Paying Agent, and the rights of the Holders in respect thereof shall terminate
(other than the right to receive the Repurchase Price upon delivery of such Securities, together
with any necessary endorsement) and the repurchased Securities shall be cancelled.

     (d) Securities Repurchased in Part.

     Any Certificated Security which is to be repurchased only in part shall be surrendered at the
office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or
a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or such Holder’s attorney duly authorized in writing) and the

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Company shall execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without charge, a new Security or Securities, of any authorized denomination as requested
by such Holder in aggregate principal amount equal to, and in exchange for, the portion of the
principal amount of the Security so surrendered which is not repurchased.

     (e) Covenant to Comply With Securities Laws Upon Repurchase of Securities.

     When complying with the provisions of Section 3.8(a) hereof (provided, that
such offer or purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term,
as used herein, includes any successor provision thereto) under the Exchange Act at the time of
such offer or purchase), and subject to any exemptions available under applicable law, the Company
shall:

     (1) comply with Rule 13e-4 and Rule 14e-1 (or any successor provision) under the
Exchange Act, as applicable;

     (2) file the related Schedule TO (or any successor schedule, form or report) under the
Exchange Act, as applicable; and

     (3) otherwise comply with all federal and state securities laws so as to permit the
rights and obligations under Section 3.8 to be exercised in the time and in the manner
specified therein.

     To the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Section 3.8, the Company’s compliance with such laws and regulations shall not
in and of itself cause a breach of its obligations under this Section 3.8.

     (f) Repayment to the Company.

     The Paying Agent shall return to the Company any Cash that remains unclaimed for two years,
together with interest, if any, thereon, held by it for the payment of the Repurchase Price;
provided, however, to the extent that the aggregate amount of Cash deposited by the Company
pursuant to Section 3.8(c) exceeds the aggregate Repurchase Price of the Securities or portions
thereof which the Company is obligated to repurchase on the Repurchase Date, then, promptly after
the Repurchase Date, the Paying Agent shall return any such excess to the Company.

     SECTION 3.9. REPURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON FUNDAMENTAL CHANGE.

     (a) Fundamental Change Put.

               (1) General. In the event any Fundamental Change (as defined below) shall occur, each Holder
of Securities shall have the right (the “Fundamental Change Repurchase Right”), at such Holder’s
option, to require the Company to repurchase all of such Holder’s Securities (or portions thereof
that are integral multiples of $1,000 in principal amount), on a date selected by the Company (the
“Fundamental Change Repurchase Date”), which Fundamental Change Repurchase Date shall be no later
than thirty (30) Trading Days, and no earlier than twenty (20) Trading Days, after the date the
Fundamental Change Notice (as defined

25

 

below) is mailed in accordance with Section 3.9(a)(2), and no earlier than the date such
Fundamental Change occurs, at a price, payable in Cash equal to one hundred percent (100%) of the
principal amount of the Securities (or portions thereof) to be so repurchased (the “Fundamental
Change Repurchase Price”), plus accrued and unpaid interest (including Contingent Interest, if any,
and Additional Interest, if any) to, but excluding, the Fundamental Change Repurchase Date.

     A “Fundamental Change” shall be deemed to have occurred upon the occurrence of either a
“Change in Control” or a “Termination of Trading.”

     A “Change of Control” shall be deemed to have occurred if any of the following occurs after
the date hereof:

     (i) any “person” or “group” (as such terms are used for purposes of Sections
13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as such
term is used in Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty
percent (50%) or more of the Company’s Voting Stock; or

     (ii) at any time the following persons cease for any reason to constitute a
majority of the Company’s Board of Directors:

     (1) individuals who on the Issue Date constituted the Company’s Board
of Directors; and

     (2) any new directors whose election to the Company’s Board of
Directors or whose nomination for election by the Company’s stockholders
was approved by at least a majority of the directors of the Company then
still in office either who were directors of the Company on the Issue Date
or whose election or nomination for election was previously so approved; or

     (iii) the Company consolidates with, or merges with or into, another person or
any person consolidates with, or merges with or into, the Company, in any such event
other than pursuant to a transaction in which:

     (1) the persons that “beneficially owned” (as such term is used in Rule
13d-3 under the Exchange Act), directly or indirectly, the shares of the
Company’s Voting Stock immediately prior to such transaction, “beneficially
own” (as such term is used in Rule 13d-3 under the Exchange Act), directly
or indirectly, immediately after such transaction, shares of the surviving
or continuing corporation’s Voting Stock representing at least a majority of
the total voting power of all outstanding classes of the Voting Stock of the
surviving or continuing corporation; and

     (2) the persons that “beneficially owned” (as such term is used in Rule
13d-3 under the Exchange Act), directly or indirectly, the shares of the
Company’s Common Stock immediately prior to such transaction, “beneficially
own” (as such term is used in Rule 13d-3 under the

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Exchange Act), directly or indirectly, immediately after such
transaction shares of common stock of the surviving or continuing
corporation in substantially the same proportion to each other as such
ownership immediately prior to the transaction; or

     (iv) the sale, transfer, lease, conveyance or other disposition of all or
substantially all of the property or assets of the Company to any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
including any group acting for the purpose of acquiring, holding, voting or
disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange
Act;

     Notwithstanding the foregoing, a Change in Control will not be deemed to have occurred if
either:

     (i) the last Sale Price of our Common Stock for any five Trading Days during
the ten Trading Days immediately preceding the Change in Control is at least equal
to 105% of the Conversion Price in effect on such Trading Day; or

     (ii) at least ninety-five percent (95%) of the consideration (other than Cash
payments for fractional shares or pursuant to statutory appraisal rights) in such
merger or consolidation consists of common stock and any associated rights traded on
a U.S. national securities exchange or quoted on the Nasdaq National Market (or
which shall be so traded or quoted when issued or exchanged in connection with such
merger or consolidation), and, as a result of such merger or consolidation, the
Securities become convertible solely into such common stock and associated rights.

     A “Termination of Trading” shall be deemed to have occurred if, after the date hereof, the
Common Stock (or other common stock into which the Securities are then convertible) is not listed
for trading on a U.S. national securities exchange, quoted on the American Stock Exchange, or
approved for trading on an established automated over-the-counter trading market in the United
States.

     (2) Notice of Fundamental Change. No later than 20 Business Days after the occurrence of a
Fundamental Change the Company shall mail a written notice of Fundamental Change (the “Fundamental
Change Company Notice”) by first class mail to the Trustee and to each Holder (and to beneficial
owners as required by applicable law). The notice shall include a form of notice to be completed
by the Holder in the event the Holder elects such right to repurchase pursuant to this Section 3.9
(the “Fundamental Change Repurchase Notice”) and shall briefly state, as applicable:

     (i) the events causing a Fundamental Change and the date of such Fundamental
Change;

     (ii) that the Holder has a right to require the Company to repurchase the
Holder’s Securities;

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     (iii) the date by which the Fundamental Change Repurchase Notice must be
delivered to the Paying Agent in order for a Holder to exercise the Fundamental
Change Repurchase Right;

     (iv) the Fundamental Change Repurchase Date;

     (v) the Fundamental Change Repurchase Price;

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

     (vii) the Conversion Rate applicable on the Fundamental Change Company Notice
Date and any adjustments to the Conversion Rate that will result from the
Fundamental Change;

     (viii) that the Securities as to which a Fundamental Change Repurchase Notice
has been given may be converted if they are otherwise convertible pursuant to
Article 4 only if the Fundamental Change Repurchase Notice has been withdrawn in
accordance with the terms of this Indenture;

     (ix) that the Securities must be surrendered to the Paying Agent to collect
payment;

     (x) that the Fundamental Change Repurchase Price for any Security as to which a
Fundamental Change Repurchase Notice has been duly given and not withdrawn will be
paid promptly following the later of the Fundamental Change Repurchase Date and the
time of surrender of such Security;

     (xi) the procedures the Holder must follow to exercise its put right under this
Section 3.9(a);

     (xii) the conversion rights, if any, of the Securities;

     (xiii) the procedures for withdrawing a Fundamental Change Repurchase Notice;

     (xiv) that, unless the Company defaults in making payment of such Fundamental
Change Repurchase Price, interest (including Contingent Interest, if any, and
Additional Interest, if any) on Securities surrendered for repurchase by the Company
will cease to accrue on and after the Fundamental Change Repurchase Date; and

     (xv) the CUSIP number(s) of the Securities.

     At the Company’s request, the Trustee shall give the Fundamental Change Company Notice in the
Company’s name and at the Company’s expense; provided, however, the Company makes such request at
least three Business Days (unless a shorter period shall be satisfactory to the Trustee) prior to
the date by which such Fundamental Change Company Notice must be

28

 

given to the Holders in accordance with this Section 3.9(a)(2); provided,
further, that the text of the Fundamental Change Company Notice shall be prepared by the
Company.

     (3) Fundamental Change Repurchase Notice. A Holder may exercise its right specified in
Section 3.9(a)(1) upon delivery of a properly completed Fundamental Change Repurchase Notice to the
Paying Agent at any time from the opening of business on the date of the Fundamental Change Company
Notice until 5:00 p.m., New York City time, on the third Business Day immediately preceding the
Fundamental Change Repurchase Date, stating:

     (i) the certificate number of the Security which the Holder will deliver to be
repurchased or the appropriate depositary procedures if Certificated Securities have
not been issued;

     (ii) the portion of the principal amount of the Security which the Holder will
deliver to be repurchased, which portion must be $1,000 or an integral multiple of
$1,000; and

     (iii) that such Security shall be repurchased on the Fundamental Change
Repurchase Date pursuant to the terms and conditions specified in the Securities and
in this Indenture.

     The delivery of such Security to the Paying Agent with, or at any time after delivery of, the
Fundamental Change Repurchase Notice (together with all necessary endorsements) at the offices of
the Paying Agent shall be a condition to the receipt by the Holder of the Fundamental Change
Repurchase Price therefor; provided, however, that such Fundamental Change Repurchase Price shall
be so paid pursuant to this Section 3.9(a) only if the Security so delivered to the Paying Agent
shall conform in all respects to the description thereof set forth in the related Fundamental
Change Repurchase Notice.

     The Company shall repurchase from the Holder thereof, pursuant to this Section 3.9(a), a
portion of a Security, so long as the principal amount of such portion is $1,000 or an integral
multiple of $1,000. Provisions of this Indenture that apply to the repurchase of all of a
Security also apply to the repurchase of such portion of such Security.

     Any repurchase by the Company contemplated pursuant to the provisions of this Section 3.9(a)
shall be consummated by the delivery of the consideration to be received by the Holder promptly
following the later of the Fundamental Change Repurchase Date and the time of delivery of the
Security.

     Notwithstanding anything contained herein to the contrary, any Holder delivering to the Paying
Agent the Fundamental Change Repurchase Notice contemplated by this Section 3.9(a)(3) shall have
the right to withdraw such Fundamental Change Repurchase Notice at any time prior to 5:00 p.m., New
York City time, on the Business Day immediately preceding the Fundamental Change Repurchase Date by
delivery of a written notice of withdrawal to the Paying Agent in accordance with Section 3.9(b).

     The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental
Change Repurchase Notice or written notice of withdrawal thereof.

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     (b) Effect of Fundamental Change Repurchase Notice.

     Upon receipt by the Paying Agent of the Fundamental Change Repurchase Notice specified in
Section 3.9(a)(3), the Holder of the Security in respect of which such Fundamental Change
Repurchase Notice was given shall (unless such Fundamental Change Repurchase Notice is withdrawn as
specified in the following paragraph) thereafter be entitled to receive solely the Fundamental
Change Repurchase Price with respect to such Security. Such Fundamental Change Repurchase Price
shall be paid to such Holder, subject to receipt of Cash by the Paying Agent, promptly following
the later of (a) the Fundamental Change Repurchase Date with respect to such Security (provided the
conditions in Section 3.9(a)(3) have been satisfied) and (b) the time of delivery of such Security
to the Paying Agent by the Holder thereof in the manner required by Section 3.9(a)(3). Securities
in respect of which a Fundamental Change Repurchase Notice has been given by the Holder thereof may
not be converted pursuant to Article 4 on or after the date of the delivery of such Fundamental
Change Repurchase Notice unless such Fundamental Change Repurchase Notice has first been validly
withdrawn as specified in the following paragraph.

     A Fundamental Change Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the Fundamental Change
Repurchase Notice at any time prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding the Fundamental Change Repurchase Date, specifying:

     (1) the Holder’s name and election to withdraw such Fundamental Change Repurchase
Notice;

     (2) the principal amount of the Security (which must be in an integral multiple of
$1,000) with respect to which such notice of withdrawal is being submitted;

     (3) the certificate number, if any, or the appropriate Depository procedures, if
applicable, of the Security in respect of which such notice of withdrawal is being
submitted; and

     (4) the principal amount, if any, of such Security which remains subject to the
original Fundamental Change Repurchase Notice and which has been or will be delivered for
repurchase by the Company.

     (c) Deposit of Fundamental Change Repurchase Price.

     Prior to 11:00 a.m., New York City time, on the applicable Fundamental Change Repurchase Date,
the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary or an Affiliate
of any of them is acting as the Paying Agent, shall segregate and hold in trust as provided in
Section 2.4) an amount of Cash (in immediately available funds if deposited on such Business Day)
sufficient to pay the aggregate Fundamental Change Repurchase Price of all the Securities or
portions thereof which are to be repurchased on such Fundamental Change Repurchase Date.

     If the Paying Agent holds, in accordance with the terms hereof, at 11:00 a.m., New York City
time, on the Business Day immediately following the applicable Fundamental Change

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Repurchase Date, Cash sufficient to pay the Fundamental Change Repurchase Price of any
Securities for which a Fundamental Change Repurchase Notice has been tendered and not withdrawn
pursuant to Section 3.9(b), then, immediately after such Fundamental Change Repurchase Date, such
Securities will cease to be outstanding and interest (including Contingent Interest, if any, and
Additional Interest, if any) on such Securities will cease to accrue, whether or not such
Securities are delivered to the Paying Agent, and the rights of the Holders in respect thereof
shall terminate (other than the right to receive the Fundamental Change Repurchase Price upon
delivery of such Securities, together with necessary endorsements) and the repurchased Securities
will be cancelled.

     (d) Securities Repurchased in Part.

     Any Certificated Security which is to be repurchased only in part shall be surrendered at the
office of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or
a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or such Holder’s attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such Security, without
charge, a new Security or Securities, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to, and in exchange for, the portion of the principal amount of
the Security so surrendered which is not repurchased.

     (e) Covenant to Comply With Securities Laws Upon Repurchase of Securities.

     When complying with the provisions of Section 3.9(a) hereof (provided, that
such offer or purchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term,
as used herein, includes any successor provision thereto) under the Exchange Act at the time of
such offer or purchase), and subject to any exemptions available under applicable law, the Company
shall:

     (1) comply with Rule 13e-4 and Rule 14e-1 (or any successor provision) under the
Exchange Act, as applicable;

     (2) file the related Schedule TO (or any successor schedule, form or report) under the
Exchange Act, as applicable; and

     (3) otherwise comply with all federal and state securities laws so as to permit the
rights and obligations under this Section 3.9 to be exercised in the time and in the manner
specified therein.

     To the extent that the provisions of any securities laws or regulations conflict with the
provisions of this Section 3.9, the Company’s compliance with such laws and regulations shall not
in and of itself cause a breach of its obligations under this Section 3.9.

     (f) Repayment to the Company.

     The Paying Agent shall return to the Company any Cash that remains unclaimed for two years,
together with interest, if any, thereon, held by it for the payment of the Fundamental Change
Repurchase Price; provided, however, to the extent that the aggregate amount of Cash

31

 

deposited by the Company pursuant to Section 3.9(c) exceeds the aggregate Fundamental Change
Repurchase Price of the Securities or portions thereof which the Company is obligated to repurchase
as of the Fundamental Change Repurchase Date then, promptly after the Fundamental Change Repurchase
Date, the Paying Agent shall return any such excess to the Company.

ARTICLE 4

CONVERSION

     SECTION 4.1. CONVERSION PRIVILEGE.

     (a) Subject to and upon compliance with the provisions of this Article 4, a Holder of a
Security shall have the right, at such Holder’s option, to convert all or any portion (if the
portion to be converted is $1,000 or an integral multiple of $1,000) of such Security into Cash
and, if applicable, shares of Common Stock only as follows:

     (i) during any fiscal quarter (beginning with the quarter ending March 31,
2005) if the Sale Price of the Common Stock for at least 20 consecutive Trading Days
in the Measurement Period of the immediately preceding fiscal quarter exceeds 120%
of the Conversion Price in effect on the last Trading Day of such Measurement Period
(in the event that the Conversion Price on such last Trading Day of such Measurement
Period is not the same as the Conversion Price in effect for each of the Trading
Days in such Measurement Period, the Conversion Agent shall make such adjustments as
it, in its discretion, deems appropriate in determining whether the foregoing
condition has been met);

     (ii) during any five consecutive Trading Day period immediately following any
five consecutive Trading Day period (the “Note Measurement Period”) in which the
average Market Price per $1,000 principal amount of Securities during such Note
Measurement Period was less than 95% of the average Conversion Value during such
Note Measurement Period; or

     (iii) at any time prior to 5:00 p.m., New York City time, on the Business Day
immediately preceding the Redemption Date, if such Security has been called for
redemption pursuant to Article 3 hereof.

     The Conversion Agent shall, on behalf of the Company, determine at the end of each applicable
period whether the Securities shall be convertible as a result of the occurrence of an event
specified in clause (i) or (ii) above and, if the Securities shall be so convertible, the
Conversion Agent shall promptly deliver to the Company and the Trustee written notice thereof.
Whenever the Securities shall become convertible pursuant to Section 4.1, the Company or, at the
Company’s request, the Trustee in the name and at the expense of the Company, shall notify the
Holders in writing of the event triggering such convertibility in the manner provided in Section
4.2, and the Company shall also publicly announce such information and publish it on the Company’s
website. Any notice so given shall be conclusively presumed to have been duly given, whether or
not the Holder receives such notice.

     (b) In addition,

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     (i) if the Company elects to distribute to all Holders of the Common Stock:

     (A) certain rights or warrants, exercisable for not more than 60 days,
entitling them to purchase Common Stock at less than the Sale Price of the Common
Stock on the Trading Day preceding the declaration date for such distribution of the
rights or warrants other than pursuant to a shareholder rights plan; or

     (B) Shares of Capital Stock (other than Common Stock or rights or warrants)
described in (A) above or evidences of our indebtedness or non-cash assets;

then, in each case, the Company must notify, in writing, Holders of Securities of
the occurrence of such an event at least 20 days prior to the “ex” date for any such
distribution. Once the Company has given such notice, Holders may surrender their
Securities for conversion at any time until the earlier of the close of business on
the Business Day immediately preceding the ex-Dividend Date or the date of
announcement by the Company that the distribution will not take place. No
adjustment shall be made to the ability of a Holder of Securities to convert if such
Holder may participate in the distribution without conversion.

     (ii) if the Company becomes party to (A) a consolidation, merger or binding
share exchange pursuant to which more than 50% of the Common Stock of the Company
would be converted into Cash, securities or other property, or (B) a Fundamental
Change, then a Holder may surrender the Securities for conversion at any time from
and after the date which is 15 days prior to the date that was announced as the
anticipated effective date of the transaction until 15 days after the actual date of
the transaction.

     SECTION 4.2. CONVERSION PROCEDURE; CONVERSION RATE; FRACTIONAL SHARES.

     (a) To convert a Security, a Holder must satisfy the requirements of Paragraph 9 of the
Securities. Upon conversion of a Holder’s Security, the Company shall deliver, through the
Conversion Agent, the following to such Holder:

     (i) an amount (the “Principal Return”) in Cash equal to the lesser of (1) the
aggregate Net Share Settlement Conversion Value of such Security and (2) the
aggregate principal amount of such Security; and

     (ii) if the aggregate Net Share Settlement Conversion Value of such Security is
greater than the Principal Return of such Security (the excess, if any, of such Net
Share Settlement Conversion Value over such Principal Return being herein referred
to as the “Net Share Amount”), a certificate for a number of shares of Common Stock
(the “Net Shares”) equal to a fraction whose numerator is the Net Share Amount for
such Security and whose denominator is Ten-Day Weighted Average Price Per Share;
provided, however, that the Company shall

33

 

not issue fractional shares of Common Stock and shall instead deliver Cash (in
addition to any consideration otherwise payable upon such conversion) in an amount
equal to the value of such fraction computed on the basis of such Ten-Day Weighted
Average Price Per Share.

     The Company shall deliver such Principal Return and, if applicable, such Net Shares as soon as
practicable following the date (the “Conversion Date”) on which such Holder satisfies all the
requirements for such conversion specified in Paragraph 9 of the Securities, but in no event more
than five (5) Business Days after the applicable Conversion Value Determination Date.

     (b) The “Net Share Settlement Conversion Value” per $1,000 aggregate principal amount of a
Security to be converted pursuant to this Article IV, shall mean the product of:

     (i) the Conversion Rate in effect at the time such Security is tendered for
conversion; and

     (ii) the average of the daily Volume-Weighted Average Price (as defined below)
per share of Common Stock for each of the ten (10) consecutive Trading Days
beginning on the second Trading Day immediately following the day such Security is
so tendered for conversion (the “Ten-Day Weighted Average Price Per Share,” and, the
last Trading Day of such ten (10) consecutive Trading Days, the “Conversion Value
Determination Date”);

provided, however, that the Board of Directors shall, in its good faith determination, make
appropriate adjustments to the Net Share Settlement Conversion Value to account for any adjustment,
pursuant hereto, to the Conversion Rate that shall become effective, or any event requiring,
pursuant hereto, an adjustment to the Conversion Rate where the Ex Date of such event occurs, at
any time from, and including, the date such Security is so tendered for conversion to, and
including, the date that the consideration payable upon conversion pursuant hereto is delivered in
accordance herewith. The Company shall, no later than the applicable Conversion Value Determination
Date, calculate the Net Share Settlement Conversion Value of a Security to be converted.

     The “Volume-Weighted Average Price” per share of Common Stock on any Trading Day shall mean
the volume-weighted average price per share of Common Stock on the American Stock Exchange or, if
the Common Stock shall not be listed on the American Stock Exchange, on the principal exchange or
over-the-counter market on which the Common Stock shall then be listed or traded in all cases, from
9:30 a.m. to 4:30 p.m., New York City time, on such Trading Day as displayed by Bloomberg or such
other comparable service that has replaced Bloomberg; provided, however, that if such
volume-weighted average price shall not be available, then the Board of Directors shall in good
faith determine the amount to be used as the Volume-Weighted Average Price for purposes hereof.

     (c) The amount of Cash paid upon conversion of the Securities shall not exceed the aggregate
principal amount of the Securities issued. In addition, the Company shall not issue fractional
shares of Common Stock upon conversion of Securities and instead shall pay the Cash adjustment for
fractional shares described in this Section 4.2.

34

 

     (d) On and after the Conversion Date of a Security, the person in whose name any certificate
representing Net Shares, if any, is to be registered shall be treated as a stockholder of record of
the Company, and all rights of the Holder of such Security shall terminate, other than the right to
receive the consideration deliverable upon conversion of such Security as provided herein. A
Holder of Securities is not entitled, as such, to any rights of a holder of Common Stock until such
Holder has converted its Securities into shares of Common Stock (to the extent such Securities are
convertible into shares of Common Stock) or is deemed to be a stockholder of record of the Company,
as provided in this Section 4.2(d).

     (e) If a Holder converts more than one Security at the same time, the number of full shares of
Common Stock issuable upon such conversion, if any, shall be based on the total Net Share Amount of
all Securities converted.

     (f) In case any Certificated Security shall be surrendered for partial conversion, the Company
shall execute and the Trustee shall, upon the written order of the Company, authenticate and
deliver to the Holder of the Security so surrendered, without charge to such Holder (subject to the
provisions of Section 4.8 hereof), a new Security or Securities in authorized denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered Certificated
Securities.

     (g) If the last day on which a Security may be converted is a Legal Holiday in a place where a
Conversion Agent is located, the Security may be surrendered to that Conversion Agent on the next
succeeding day that is not a Legal Holiday.

     (h) Once given, a Conversion Notice may not be rescinded.

     If shares of Common Stock to be issued upon conversion of a Restricted Security are to be
issued in the name of a Person other than the Holder of such Restricted Security, such Holder must
deliver to the Conversion Agent a certification in substantially the form set forth in a Transfer
Certificate attached to the Security (the “Transfer Certificate”) dated the date of surrender of
such Restricted Security and signed by such Holder, as to compliance with the restrictions on
transfer applicable to such Restricted Security. The Company shall not be required to issue Common
Stock upon conversion of any such Restricted Security to a Person other than the Holder if such
Restricted Security is not so accompanied by a properly completed Transfer Certificate, and the
Registrar shall not be required to register Common Stock upon conversion of any such Restricted
Security in the name of a Person other than the Holder if such Restricted Security is not so
accompanied by a properly completed Transfer Certificate.

     (i) A Security shall be deemed to have been converted as of the close of business on the date
of the surrender of such Security for conversion as provided above, and the person or persons
entitled to receive Cash and, if applicable Common Stock issuable, upon such conversion shall be
treated for all purposes as the record Holder or Holders of such Common Stock as of the close of
business on such date. Upon conversion, all obligations under the Securities so converted will be
deemed satisfied, including with respect to any accrued and unpaid interest (including Contingent
Interest, if any, and Additional Interest, if any).

35

 

     SECTION 4.3. ADJUSTMENT OF CONVERSION RATE FOR COMMON STOCK.

     The Conversion Rate shall be adjusted from time to time as follows:

     (a) In case the Company shall, at any time or from time to time while any of the Securities
are outstanding, pay a dividend or make a distribution in shares of Common Stock to all holders of
its outstanding shares of Common Stock, then the Conversion Rate in effect at the opening of
business on the date next following the Record Date fixed for the determination of stockholders
entitled to receive such dividend or other distribution shall be increased by multiplying such
Conversion Rate by a fraction:

     (1) the numerator of which shall be the sum of the number of shares of Common Stock
outstanding at the close of business on such Record Date fixed for such determination and the total
number of shares constituting such dividend or other distribution; and

     (2) the denominator of which shall be the number of shares of Common Stock outstanding at the
close of business on such Record Date fixed for such determination.

     Such increase shall become effective immediately after the opening of business on the day
following the Record Date fixed for such determination.

     If any dividend or distribution of the type described in this Section 4.3(a) is declared but
not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate which would
then be in effect if such dividend or distribution had not been declared.

     (b) In case the Company shall, at any time or from time to time while any of the Securities
are outstanding, subdivide its outstanding shares of Common Stock into a greater number of shares
of Common Stock, then the Conversion Rate in effect at the opening of business on the day following
the day upon which such subdivision becomes effective shall be proportionately increased, and
conversely, in case the Company shall, at any time or from time to time while any of the Securities
are outstanding, combine its outstanding shares of Common Stock into a smaller number of shares of
Common Stock, then the Conversion Rate in effect at the opening of business on the day following
the day upon which such combination becomes effective shall be proportionately decreased. In each
such case, the Conversion Rate shall be adjusted by multiplying such Conversion Rate by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding immediately after
giving effect to such subdivision or combination and the denominator of which shall be the number
of shares of Common Stock outstanding immediately prior to such subdivision or combination. Such
increase or reduction, as the case may be, shall become effective immediately after the opening of
business on the day following the day upon which such subdivision or combination becomes effective.

     (c) In case the Company shall, at any time or from time to time while any of the Securities
are outstanding, issue rights or warrants for a period expiring within 60 days after the date of
announcement of such issuance (other than any rights or warrants referred to in Section 4.3(d)) or
any rights or warrants issued pursuant to the Company’s shareholder rights plan, to all holders of
its shares of Common Stock entitling them to subscribe for or purchase shares of

36

 

Common Stock (or securities convertible into or exchangeable or exercisable for shares of
Common Stock), at a price per share (or having a conversion, exchange or exercise price per share)
less than the Sale Price of the Common Stock on the Trading Day immediately preceding the date of
the announcement of such issuance (treating the conversion, exchange or exercise price per share of
the securities convertible into or exchangeable or exercisable for Common Stock as equal to the
quotient of (x) the sum of (i) the price for a unit of the security convertible into or
exchangeable or exercisable for Common Stock and (ii) any additional consideration initially
payable upon the conversion, exchange or exercise of such security into Common Stock divided by (y)
the number of shares of Common Stock initially underlying such convertible, exchangeable or
exercisable security), then the Conversion Rate shall be adjusted so that the same shall equal the
rate determined by multiplying the Conversion Rate in effect at the opening of business on the date
after such date of announcement by a fraction:

     (1) the numerator of which shall be the number of shares of Common Stock outstanding at the
close of business on the date of announcement, plus the total number of additional shares of Common
Stock so offered for subscription or purchase (or into which the convertible, exchangeable or
exercisable securities so offered are convertible, exchangeable or exercisable); and

     (2) the denominator of which shall be the number of shares of Common Stock outstanding on the
close of business on the date of announcement, plus the number of shares (or convertible,
exchangeable or exercisable securities) which the aggregate offering price of the total number of
shares (or convertible, exchangeable or exercisable securities) so offered for subscription or
purchase (or the aggregate conversion, exchange or exercise price of the convertible securities so
offered) would purchase at the Sale Price of the Common Stock on the Business Day immediately
preceding the date of the announcement of such issuance (determined by multiplying such total
number of shares so offered by the exercise price of such rights or warrants and dividing the
product so obtained by such Sale Price).

     Such adjustment shall become effective immediately after the opening of business on the day
following the date of announcement of such issuance.

     To the extent that shares of Common Stock (or securities convertible into or exchangeable or
exercisable for shares of Common Stock) are not delivered pursuant to such rights or warrants, upon
the expiration or termination of such rights or warrants, the Conversion Rate shall be readjusted
to the Conversion Rate which would then be in effect had the adjustments made upon the issuance of
such rights or warrants been made on the basis of the delivery of only the number of shares of
Common Stock (or securities convertible into or exchangeable or exercisable for shares of Common
Stock) actually delivered. In the event that such rights or warrants are not so issued, the
Conversion Rate shall again be adjusted to be the Conversion Rate which would then be in effect if
the date fixed for the determination of stockholders entitled to receive such rights or warrants
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 Sale Price, and in determining the
aggregate offering price of such shares of Common Stock, there shall be taken into account any
consideration received for such rights or warrants and the value of such consideration if other
than Cash, to be determined in good faith by the Board of Directors of the Company.

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     (d) (1) In case the Company shall, at any time or from time to time while any of the
Securities are outstanding, by dividend or otherwise, distribute to all holders of its shares of
Common Stock (including any such distribution made in connection with a consolidation or merger in
which the Company is the continuing corporation and the Common Stock is not changed or exchanged),
shares of its Capital Stock (other than any dividends or distributions to which Section 4.3(a)
applies), evidences of its Indebtedness or other non-Cash assets, including securities, but
excluding (x) any rights or warrants referred to in Section 4.3(c), (y) dividends or distributions
of stock referred to in Section 4.3(a), and (z) dividends and distributions paid exclusively in
Cash (such capital stock, evidence of its indebtedness, other non-Cash assets or securities being
distributed hereinafter in this Section 4.3(d) called the “distributed assets”), then, in each such
case, subject to the other provisions of this Section 4.3(d), the Conversion Rate shall be
increased so that the same shall be equal to the rate determined by multiplying the Conversion Rate
in effect immediately prior to the close of business on the Record Date with respect to such
distribution by a fraction:

     (i) the numerator of which shall be the Current Market Price of the Common
Stock; and

     (ii) the denominator of which shall be such Current Market Price of the Common
Stock, less the Fair Market Value on such date of the portion of the distributed
assets so distributed applicable to one share of Common Stock (determined on the
basis of the number of shares of Common Stock outstanding on the Record Date)
(determined as provided in Section 4.3(f)).

Such increase shall become effective immediately prior to the opening of business on the day
following the Record Date for such distribution. In the event that such dividend or distribution
is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate which
would then be in effect if such dividend or distribution had not been declared.

          (1) If the Board of Directors determines the Fair Market Value of any distribution for
purposes of this Section 4.3(d) by reference to the actual or when issued trading market for any
distributed assets comprising all or part of such distribution, it must in doing so consider the
prices in such market over the same period (the “Reference Period”) used in computing the Current
Market Price pursuant to Section 4.3(f) to the extent possible, unless the Board of Directors
determines in good faith that determining the Fair Market Value during the Reference Period would
not be in the best interest of the Holders.

          (2) In the event any such distribution consists of shares of capital stock of, or similar
equity interests in, one or more of the Company’s Subsidiaries (a “Spin-Off”), the Fair Market
Value of the securities to be distributed shall equal the average of the closing sale prices of
such securities on the principal securities market on which such securities are traded for the 10
consecutive Trading Days commencing on and including fifth Trading Day after the “ex” date in
respect of the Spin-Off. In the event, however, that an underwritten initial public offering of
the securities in the Spin-Off occurs simultaneously with the Spin-Off, Fair Market Value of the
securities distributed in the Spin-Off shall mean the initial public offering price of such
securities.

38

 

          (3) Rights or warrants distributed by the Company to all holders of its shares of Common Stock
entitling them to subscribe for or purchase shares of the Company’s Capital Stock (either initially
or under certain circumstances), which rights or warrants, until the occurrence of a specified
event or events (“Trigger Event”), (x) are deemed to be transferred with such shares of Common
Stock, (y) are not exercisable and (z) are also issued in respect of future issuances of shares of
Common Stock shall be deemed not to have been distributed for purposes of this Section 4.3(d) (and
no adjustment to the Conversion Rate under this Section 4.3(d) will be required) until the
occurrence of the earliest Trigger Event. If such right or warrant is subject to subsequent
events, upon the occurrence of which such right or warrant shall become exercisable to purchase
different distributed assets, evidences of indebtedness or other assets, or entitle the holder to
purchase a different number or amount of the foregoing or to purchase any of the foregoing at a
different purchase price, then the occurrence of each such event shall be deemed to be the date of
issuance and record date with respect to a new right or warrant (and a termination or expiration of
the existing right or warrant without exercise by the holder thereof). If such an adjustment is
made and the rights are later redeemed, invalidated or terminated, then a corresponding reversing
adjustment will be made to the Conversion Rate on an equitable basis. The Conversion Rate will not
be adjusted as a result of any distribution of separate certificates representing any rights under
our existing or any future shareholder rights plan or exercise in accordance with such plan.

     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 resulted in an adjustment to the Conversion Rate under this Section 4.3(d):

     (i) in the case of any such rights or warrants which 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 of shares of Common Stock with respect to such rights or warrants (assuming
such holder had retained such rights or warrants), made to all holders of shares of
Common Stock as of the date of such redemption or repurchase; and

     (ii) in the case of such rights or warrants which shall have expired or been
terminated without exercise, the Conversion Rate shall be readjusted as if such
rights and warrants had never been issued.

          (4) For purposes of this Section 4.3(d) and Sections 4.3(a), 4.3(b) and 4.3(c), any dividend
or distribution to which this Section 4.3(d) is applicable that also includes (x) shares of Common
Stock, (y) a subdivision or combination of shares of Common Stock to which Section 4.3(b) applies
or (z) rights or warrants to subscribe for or purchase shares of Common Stock or securities
convertible into or exercisable or exchangeable for Common Stock to which Section 4.3(c) applies
(or any combination thereof), shall be deemed instead to be:

     (i) a dividend or distribution of the evidences of indebtedness, assets, shares
of capital stock, rights or warrants, other than such shares of Common Stock, such
subdivision or combination or such rights or warrants or securities

39

 

convertible into or exercisable or exchangeable for Common Stock to which
Sections 4.3(a), 4.3(b) and 4.3(c) apply, respectively (and any Conversion Rate
increase required by this Section 4.3(d) with respect to such dividend or
distribution shall then be made), immediately followed by

     (ii) a dividend or distribution of such shares of Common Stock, such
subdivision or combination or such rights or warrants or securities convertible into
or exercisable or exchangeable for Common Stock (and any further Conversion Rate
increase required by Sections 4.3(a), 4.3(b) and 4.3(c) with respect to such
dividend or distribution shall then be made), except:

     (1) the Record Date of such dividend or distribution shall be
substituted as (x) “the date fixed for the determination of stockholders
entitled to receive such dividend or other distribution,” “Record Date fixed
for such determinations” and “Record Date” within the meaning of Section
4.3(a), (y) “the day upon which such subdivision becomes effective” and “the
day upon which such combination becomes effective” within the meaning of
Section 4.3(b), and (z) as “the date fixed for the determination of
stockholders entitled to receive such rights or warrants,” “the Record Date
fixed for the determination of the stockholders entitled to receive such
rights or warrants” and such “Record Date” within the meaning of Section
4.3(c); and

     (2) any shares of Common Stock included in such dividend or
distribution shall not be deemed “outstanding at the close of business on
the date fixed for such determination” within the meaning of Section 4.3(a)
and any reduction or increase in the number of shares of Common Stock
resulting from such subdivision or combination shall be disregarded in
connection with such dividend or distribution.

     (e) In case the Company shall, at any time or from time to time while any of the Securities
are outstanding, by dividend or otherwise, distribute to all or substantially all holders of its
shares of Common Stock, Cash (excluding any Cash that is distributed upon a reclassification,
change, merger, consolidation, statutory share exchange, combination, sale or conveyance to which
Section 4.4 applies, Cash distributed as part of a distribution referred to in Section 4.3(d), or
any Cash that is distributed pursuant to a tender offer , to which Section 4.3(f) applies), then,
and in each case, immediately after the close of business on such date, the Conversion Rate shall
be increased so that the same shall equal the rate determined by multiplying the Conversion Rate in
effect immediately prior to the close of business of such Record Date for the determination of
holders of Common Stock entitled to such distribution by a fraction:

     (i) the numerator of which shall be equal to the Current Market Price per share
of Common Stock (as determined pursuant to Section 4.3(g) on the Record Date); and

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     (ii) the denominator of which shall be equal to (a) the Current Market Price
per share of Common Stock on such date, less (b) an amount equal to the lesser of
(i) the amount of the distribution per share of Common Stock and (ii) the Current
Market Price per share of Common Stock; provided, however that if
such denominator shall be zero, the Conversion Rate shall be instead adjusted so
that the Conversion Price is equal to one cent ($0.01).

Notwithstanding the foregoing, if the Conversion Rate as adjusted pursuant to this Section 4.3(e)
would cause the Conversion Price to be less than one cent ($0.01), then the Conversion Price shall
be one cent ($0.01).

     (f) In case the Company or any of its subsidiaries shall, at any time or from time to time,
while any of the Securities are outstanding, distribute Cash or other consideration in respect of a
tender offer or exchange offer made by the Company or any subsidiary for all or any portion of the
Common Stock (excluding any Cash that is distributed upon a reclassification, change, merger,
consolidation, statutory share exchange, combination, sale or conveyance to which Section 4.4
applies or as part of a distribution referred to in Sections 4.3(d) or 4.3(e)), where the sum of
the aggregate amount of such Cash distributed and the aggregate fair market value (as determined in
good faith by the Board of Directors, whose determination shall be conclusive and set forth in a
Board Resolution), as of the Expiration Date (as defined below), of such other consideration
distributed (such sum, the “Aggregate Amount”) expressed as an amount per share of Common Stock
validly tendered or exchanged, and not withdrawn, pursuant to such tender offer or exchange offer
as of the Expiration Time (as defined below) (such tendered or exchanged shares of Common Stock,
the “Purchased Shares”) exceeds the Sale Price of the Common Stock on the trading day next
succeeding the last date (such last date, the “Expiration Date”) on which tenders or exchanges
could have been made pursuant to such tender offer or exchange offer (as the same may be amended
through the Expiration Date), then, and in each case, immediately after the close of business on
such date, the Conversion Rate shall be increased so that the same shall equal the rate determined
by multiplying the Conversion Rate in effect immediately prior to the close of business of such
Expiration Date by a fraction:

     (1) the numerator of which is equal to the sum of (I) the Aggregate Amount and (II) the
product of (a) the Sale Price of Common Stock on the Expiration Date and (b) an amount equal to (i)
the number of shares of Common Stock outstanding as of last time (the “Expiration Time”) at which
tenders or exchanges could have been made pursuant to such tender offer or exchange offer less (ii)
the Purchased Shares; and

     (2) the denominator of which shall be equal to the product of (I) the number of shares of
Common Stock outstanding as of the Expiration Time (including all Purchased Shares) and (II) the
Sale Price of Common Stock on the Expiration Date.

An adjustment, if any, to the Conversion Rate pursuant to this Section 4.3(f) shall become
effective immediately prior to the opening of business on the Business Day following the Expiration
Date. In the event that the Company or a subsidiary is obligated to purchase shares of Common
Stock pursuant to any such tender offer or exchange offer, but the Company or such subsidiary is
permanently prevented by applicable law from effecting any such purchases, or all such purchases
are rescinded, then the Conversion Rate shall again be adjusted to be the

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Conversion Rate which would then be in effect if such tender offer or exchange offer had not been
made. If the application of this Section 4.3(f) to any tender offer or exchange offer would result
in a decrease in the Conversion Rate, no adjustment shall be made for such tender offer or exchange
offer under this Section 4.3(f).

     (g) For purposes of this Article 4, the following terms shall have the meanings indicated:

     “Current Market Price” on any date means the average of the daily Sale Prices per share of
Common Stock for the ten consecutive Trading Days immediately prior to such date; provided,
however, that if the “ex” date (as hereinafter defined) for any event (other than the
issuance or distribution requiring such computation) that requires an adjustment to the Conversion
Rate pursuant to Section 4.3(a), (b), (c), (d), (e) or (f) occurs during such ten consecutive
Trading Days, “Current Market Price” shall be calculated for such period in a manner determined in
good faith by the Board of Directors to reflect the impact of such event on the Closing Price of
the Common Stock during such period.

     For purposes of this Indenture, the term “ex” date, when used:

     (i) with respect to any issuance or distribution, means the first date on which the
shares of Common Stock trade regular way on the relevant exchange or in the relevant market
from which the Sale Price was obtained without the right to receive such issuance or
distribution;

     (ii) with respect to any subdivision or combination of shares of Common Stock, means
the first date on which the shares of Common Stock trade regular way on such exchange or in
such market after the time at which such subdivision or combination becomes effective; and

     (iii) with respect to any tender or exchange offer, means the first date on which the shares of Common Stock trade regular way on such exchange or in such market after the
expiration of such offer.

Notwithstanding the foregoing, whenever successive adjustments to the Conversion Rate are called
for pursuant to this Section 4.3, such adjustments shall be made to the Current Market Price as may
be necessary or appropriate to effectuate the intent of this Section 4.3 and to avoid unjust or
inequitable results as determined in good faith by the Board of Directors.

     “Fair Market Value” shall mean the amount which a willing buyer would pay a willing seller in
an arm’s length transaction (as determined in good faith by the Board of Directors, whose good
faith determination shall be conclusive).

     “Record Date” shall mean, with respect to any dividend, distribution or other transaction or
event in which the holders of shares of Common Stock have the right to receive any Cash, securities
or other property or in which the shares of Common Stock (or other applicable security) is
exchanged for or converted into any combination of Cash, securities or other property, the date
fixed for determination of stockholders entitled to receive such Cash, securities or other property
(whether such date is fixed by the Board of Directors or by statute, contract or otherwise).

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     (h) The Company shall be entitled at its election to make such additional increases in the
Conversion Rate, in addition to those required by Sections 4.3(a), (b), (c), (d), (e) or (f), as
shall be necessary in order that any dividend or distribution of Common Stock, any subdivision,
reclassification or combination of shares of Common Stock or any issuance of rights or warrants
referred to above shall not be taxable to the holders of Common Stock for United States federal
income tax purposes.

     (i) To the extent permitted by applicable law, the Company may, from time to time, increase
the Conversion Rate by any amount for any period of time, if such period is at least 20 days, the
Board of Directors determines that the increase in the Conversion Rate is in the best interest of
the Company, and the increase is irrevocable during the period. Whenever the Conversion Rate is
increased pursuant to the preceding sentence, the Company shall mail to the Trustee and each Holder
at the address of such Holder as it appears in the register of the Securities maintained by the
Registrar, at least 15 days prior to the date the increased Conversion Rate takes effect, a notice
of the increase stating the increased Conversion Rate and the period during which it will be in
effect.

     (j) In any case in which this Section 4.3 shall require that any adjustment be made effective
as of or retroactively immediately following a Record Date, the Company may elect to defer (but
only for five Trading Days following the filing of the statement referred to in Section 4.5)
issuing to the Holder of any Securities converted after such Record Date the consideration issuable
upon such conversion over and above the consideration issuable upon such conversion on the basis of
the Conversion Rate prior to adjustment; provided, however, that the Company shall deliver to such
Holder a due bill or other appropriate instrument evidencing such Holder’s right to receive such
additional shares upon the occurrence of the event requiring such adjustment.

     (k) All calculations under this Section 4.3 shall be made to the nearest cent or one-hundredth
of a share, with one-half cent and 0.005 of a share, respectively, being rounded upward.
Notwithstanding any other provision of this Section 4.3, the Company shall not be required to make
any adjustment of the Conversion Rate unless such adjustment would require an increase or decrease
of at least 1% of such rate. Any lesser adjustment shall be carried forward and shall be made at
the time of and together with the next subsequent adjustment which, together with any adjustment or
adjustments so carried forward, shall amount to an increase or decrease of at least 1% in such
rate. Any adjustments under this Section 4.3 shall be made successively whenever an event
requiring such an adjustment occurs.

     (l) In the event that at any time, as a result of an adjustment made pursuant to this Section
4.3, the Holder of any Securities thereafter surrendered for conversion shall become entitled to
receive any shares of stock of the Company other than shares of Common Stock into which the
Securities originally were convertible, the Conversion Rate of such other shares so receivable upon
conversion of any such Security shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to Common Stock contained
in subparagraphs (a) through (i) of this Section 4.3, and the provision of Sections 4.1, 4.2 and
4.4 through 4.9 with respect to the Common Stock shall apply on like or similar terms to any such
other shares and the good faith determination of the Board of Directors as to any such adjustment
shall be conclusive.

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     (m) No adjustment shall be made pursuant to this Section 4.3 if the Holders of the Securities
may participate in the transaction that would otherwise give rise to an adjustment pursuant to this
Section 4.3.

     SECTION 4.4. CONSOLIDATION OR MERGER OF THE COMPANY.

     If any of the following events occurs, namely:

     (a) any reclassification or change of the outstanding Common Stock into another class of
Capital Stock (other than a change in par value, or from par value to no par value, or from no par
value to par value, or as a result of a subdivision or combination);

     (b) any merger, consolidation, statutory share exchange or combination of the Company with
another corporation as a result of which all of the holders of Common Stock shall be entitled to
receive stock, securities or other property or assets (including Cash or any combination thereof)
with respect to or in exchange for all of their Common Stock; or

     (c) any sale or conveyance of the properties and assets of the Company as, or substantially
as, an entirety to any other person as a result of which all of the holders of Common Stock shall
be entitled to receive stock, securities or other property or assets (including Cash or any
combination thereof) with respect to or in exchange for all of their Common Stock;

the Company or the successor or purchasing person, as the case may be, shall execute with the
Trustee a supplemental indenture (which shall comply with the TIA as in force at the date of
execution of such supplemental indenture, if such supplemental indenture is then required to so
comply) providing that, at and after the effective time of such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease, conveyance or disposition,
the Holder of each Security then outstanding shall have the right to convert such Security into the
kind and amount of shares of stock and other securities and property (including cash)
(collectively, “Reference Property”) receivable upon such reclassification, change, consolidation,
merger, binding share exchange, sale, transfer, lease, conveyance or disposition by a holder of a
number of shares of Common Stock equal to a fraction whose denominator is one thousand (1,000) and
whose numerator is the product of the principal amount of such Security and the Conversion Rate in
effect immediately prior to such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition, assuming that such Holder would not
have exercised any rights of election that such Holder would have had as a holder of Common Stock
to select a particular type of consideration; provided, however, that after the effective time of
such reclassification, change, consolidation, merger, binding share exchange, sale, transfer,
lease, conveyance or disposition, the Principal Return payable hereunder upon conversion of such
Security shall continue to be payable in cash and the Net Share Settlement Conversion Value shall
be calculated based on the fair value of the Reference Property. 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 4. If, in the case of any such reclassification, change,
merger, consolidation, statutory share exchange, combination, sale or conveyance, the stock or
other securities and assets receivable thereupon by a holder of Common Stock includes shares of
stock or other securities and assets of a corporation other than the successor or purchasing
corporation, as the case may be, in such reclassification,

44

 

change, merger, consolidation, statutory share exchange, combination, sale or conveyance, then such
supplemental indenture shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Holders of the Securities as the Board of
Directors shall reasonably consider necessary by reason of the foregoing.

     The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each Holder, at the address of such Holder as it appears on the register of the Securities
maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of such supplemental indenture.

     The above provisions of this Section 4.4 shall similarly apply to successive
reclassifications, changes, mergers, consolidations, statutory share exchanges, combinations, sales
and conveyances.

     If this Section 4.4 applies to any event or occurrence, Section 4.3 shall not apply.

     SECTION 4.5. NOTICE OF ADJUSTMENT.

     Whenever an adjustment in the Conversion Rate with respect to the Securities is required:

     (a) the Company shall forthwith place on file with the Trustee and any Conversion Agent for
such securities a certificate of the Treasurer of the Company (upon which the Trustee may
conclusively rely), stating the adjusted Conversion Rate determined as provided herein and setting
forth in reasonable detail such facts as shall be necessary to show the reason for and the manner
of computing such adjustment; and

     (b) a notice stating that the Conversion Rate has been adjusted and setting forth the adjusted
Conversion Rate shall forthwith be given by the Company or, at the Company’s request, by the
Trustee in the name and at the expense of the Company, to each Holder in the manner provided in
Section 4.2 hereof. Any notice so given shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice.

     SECTION 4.6. NOTICE IN CERTAIN EVENTS.

     In case:

     (a) of a consolidation or merger to which the Company is a party and for which approval of any
stockholders of the Company is required, or of the sale or conveyance to another Person or entity
or group of Persons or entities acting in concert as a partnership, limited partnership, syndicate
or other “group” (as defined in Section 3.9(a)(1)(i)) of all or substantially all of the property
and assets of the Company; or

     (b) of the voluntary or involuntary dissolution, liquidation or winding up of the Company; or

     (c) of any action triggering an adjustment of the Conversion Rate referred to in clauses (y)
or (z) below;

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then, in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent,
and shall cause to be given, to the Holders of the Securities in the manner provided in Section 4.2
hereof, at least 15 days prior to the applicable date hereinafter specified, a notice stating:

     (y) the date on which a record is to be taken for the purpose of any distribution or
grant of rights or warrants or other securities triggering an adjustment to the Conversion
Rate pursuant to this Article 4, or, if a record is not to be taken, the date as of which
the holders of record of Common Stock entitled to such distribution, rights or warrants or
other securities are to be determined, or

     (z) the date on which holders of Common Stock of record shall be entitled to exchange
their Common Stock for securities or other property deliverable upon any reclassification,
consolidation, merger, sale, conveyance, dissolution, liquidation or winding up described
under clauses (a), (b) and (c) of Section 4.4.

     Failure to give such notice or any defect therein shall not affect the legality or validity of
the proceedings described in clause (a), (b) or (c) of this Section 4.6.

     SECTION 4.7. COMPANY TO RESERVE STOCK: REGISTRATION; LISTING.

     (a) The Company shall from time to time reserve and keep available, free from preemptive
rights, out of its authorized but unissued shares of Common Stock for the purpose of effecting the
conversion of the Securities, such number of its duly authorized shares of Common Stock as shall
from time to time be sufficient to effect the conversion of all Securities then outstanding into
such Common Stock at any time (assuming that, at the time of the computation of such number of
shares or securities, all such Securities would be held by a single Holder). The Company covenants
that all shares of Common Stock which may be issued upon conversion of Securities will upon issue
be fully paid and nonassessable and free from all liens and charges and, except as provided in
Section 4.8, taxes with respect to the issue thereof.

     (b) If any shares of Common Stock which would be issuable upon conversion of Securities
hereunder require registration with or approval of any governmental authority before such shares or
securities may be issued upon such conversion, the Company will use its commercially reasonable
efforts to cause such shares or securities to be duly registered or approved, as the case may be.
The Company further covenants that so long as the Common Stock shall be quoted on the American
Stock Exchange, the Company will use its commercially reasonable efforts, if permitted by the rules
of the American Stock Exchange, to have and keep approved for quoting on the American Stock
Exchange (subject to notice of official issuance) all Common Stock issuable upon conversion of the
Securities, and the Company will use its commercially reasonable efforts to list the shares of
Common Stock required to be delivered upon conversion of the Securities prior to such delivery upon
any other national securities exchange upon which the outstanding Common Stock is listed at the
time of such delivery.

     SECTION 4.8. TAXES ON CONVERSION.

     The issue of stock certificates on conversion of Securities shall be made without charge to
the converting Holder for any documentary, stamp or similar issue or transfer taxes in respect

46

 

of the issue thereof, and the Company shall pay any and all documentary, stamp or similar
issue or transfer taxes that may be payable in respect of the issue or delivery of shares of Common
Stock on conversion of Securities pursuant hereto. The Company shall not, however, be required to
pay any such tax which may be payable in respect of any transfer involved in the issue or delivery
of shares of Common Stock or the portion, if any, of the Securities which are not so converted in a
name other than that in which the Securities so converted were registered, 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 such tax or has established to the satisfaction of the Company that such tax has been
paid.

     The Company agrees, and each Holder is deemed to agree, that delivery to such Holder of Cash
and, if applicable, the number of shares of Common Stock into which each Security is convertible,
together with any Cash payment of such Holder’s fractional shares or otherwise in accordance with
Section 4.13, will be treated as a contingent payment (in an amount equal to the sum of the then
Fair Market Value of such Common Stock and such Cash payment) on the Securities for purposes of the
Contingent Payment Debt Regulations governing contingent payment debt obligations.

     Nothing contained herein shall preclude any income tax withholding required by law or
regulation upon conversion of the Securities, and at the Company’s request, Holders shall be
responsible for satisfying any such withholding.

     SECTION 4.9. CONVERSION AFTER RECORD DATE.

     Except as provided in this Section 4.9, a converting Holder of Securities shall not be
entitled to receive any accrued and unpaid interest (including Contingent Interest, if any and
Additional Interest, if any) on any such Securities being converted. By delivery to the Holder of
Cash and, if applicable, the number of shares of Common Stock or other consideration issuable or
payable upon conversion in accordance with this Article 4, any accrued and unpaid interest
(including Contingent Interest, if any, and Additional Interest, if any) on such Securities will be
deemed to have been paid in full. If any Securities are surrendered for conversion subsequent to
the Regular Record Date preceding an Interest Payment Date but prior to such Interest Payment Date,
the Holder of such Securities at the close of business on such Regular Record Date shall receive
the interest payable on such Security on such Interest Payment Date notwithstanding the conversion
thereof. Securities surrendered for conversion during the period from the close of business on any
Regular Record Date preceding any Interest Payment Date to the opening of business on such Interest
Payment Date shall (except in the case of Securities which have been called for redemption on a
Redemption Date within such period) be accompanied by payment from converting Holders, for the
account of the Company, in Cash, or other funds of an amount equal to the interest payable on such
Interest Payment Date (excluding any overdue interest, if applicable) on the Securities being
surrendered for conversion; provided, however, if the Company elects to redeem Securities on a date
that is after the Regular Record Date but prior to the corresponding Interest Payment Date, and
such Holder elects to convert those Securities, the Holder will not be required to pay the Company,
at the time that Holder surrenders those Securities for conversion, the amount of interest such
Holder will have received on the Interest Payment Date.

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     Except as provided in this Section 4.9, no adjustments in respect of payments of interest
(including Contingent Interest, if any, and Additional Interest, if any) on Securities surrendered
for conversion or any dividends or distributions or interest on the Common Stock issued upon
conversion shall be made upon the conversion of any Securities.

     SECTION 4.10. COMPANY DETERMINATION FINAL.

     Any determination that the Company or the Board of Directors must make pursuant to this
Article 4 shall be conclusive if made in good faith and in accordance with the provisions of this
Article, absent manifest error, and set forth in a Board Resolution.

     SECTION 4.11. RESPONSIBILITY OF TRUSTEE FOR CONVERSION PROVISIONS.

     The Trustee has no duty to determine when an adjustment under this Article 4 should be made,
how it should be made or what it should be. Unless and until a Trust Officer of the Trustee
receives a certificate delivered pursuant to Section 4.5 setting forth an adjustment of the
Conversion Rate, the Trustee may assume without inquiry that no such adjustment has been made and
that the last Conversion Rate of which the Trustee has knowledge remains in effect. The Trustee
makes no representation as to the validity or value of any securities or assets issued upon
conversion of Securities. The Trustee shall not be responsible for any failure of the Company to
comply with this Article 4. Each Conversion Agent other than the Company shall have the same
protection under this Section 4.11 as the Trustee.

     The rights, privileges, protections, immunities and benefits given to the Trustee under this
Indenture including, without limitation, its rights to be indemnified, are extended to, and shall
be enforceable by, the Trustee in each of its capacities hereunder, and each Paying Agent or
Conversion Agent acting hereunder.

     SECTION 4.12. UNCONDITIONAL RIGHT OF HOLDERS TO CONVERT.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to convert its Security in accordance with this
Article 4 and to bring an action for the enforcement of any such right to convert, and such rights
shall not be impaired or affected without the consent of such Holder.

ARTICLE 5

[RESERVED]

ARTICLE 6

COVENANTS

     SECTION 6.1. PAYMENT OF SECURITIES.

     The Company shall promptly make all payments in respect of the Securities on the dates and in
the manner provided in the Securities and this Indenture. An installment of principal or

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interest (including Contingent Interest, if any, and Additional Interest, if any) shall be
considered paid on the date it is due if the Paying Agent (other than the Company) holds by 11:00
a.m., New York City time, on that date Cash, deposited by the Company or an Affiliate thereof,
sufficient to pay the installment. The Company shall, (in immediately available funds) to the
fullest extent permitted by law, pay interest on overdue principal (including premium, if any) and
overdue installments of interest at the rate borne by the Securities per annum.

     Payment of the principal of and any interest (including Contingent Interest, if any, and
Additional Interest, if any) on the Securities shall be made at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, The City of New York (which shall
initially be U.S. Bank National Association, an Affiliate of the Trustee, as agent of the Trustee)
or at the Corporate Trust Office of the Trustee in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company payment of interest
with respect to a Certified Security may be made by check mailed to the address of the Person
entitled thereto as such address appears in the Register; provided, further,
that a Holder with an aggregate principal amount of Certified Securities in excess of
$5,000,000 will be paid by wire transfer in immediately available funds at the election of such
Holder if such Holder has provided wire transfer instructions to the Company at least 10 Business
Days prior to the payment date.

     SECTION 6.2. SEC REPORTS.

     The Company shall file all reports and other information and documents which it is required to
file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, and shall make such reports
and other information and documents available on its website to the extent required by law.

     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
rely exclusively on Officers’ Certificates).

     SECTION 6.3. COMPLIANCE CERTIFICATES.

     The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of
the Company (beginning with the fiscal year ending December 31, 2004), an Officers’ Certificate as
to the signer’s knowledge of the Company’s compliance with all conditions and covenants on its part
contained in this Indenture and stating whether or not the signer knows of any default or Event of
Default. If such signer knows of such a default or Event of Default, the Officers’ Certificate
shall describe the default or Event of Default and the efforts to remedy the same. For the
purposes of this Section 6.3, compliance shall be determined without regard to any grace period or
requirement of notice provided pursuant to the terms of this Indenture.

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     SECTION 6.4. FURTHER INSTRUMENTS AND ACTS.

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

     SECTION 6.5. MAINTENANCE OF CORPORATE EXISTENCE.

     Subject to Article 7, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence.

     SECTION 6.6. RULE 144A INFORMATION REQUIREMENT.

     Within the period prior to the expiration of the holding period applicable to sales thereof
under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants and
agrees that it shall, during any period in which it is not subject to Section 13 or 15(d) under the
Exchange Act, upon the request of any Holder or beneficial holder of the Securities make available
to such Holder or beneficial holder of Securities or any Common Stock issued upon conversion
thereof which continue to be Transfer 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 or
such Common Stock and it will take such further action as any Holder or beneficial holder of such
Securities or such Common Stock may reasonably request, 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. Upon the request of any Holder or any beneficial
holder of the Securities or such Common Stock, the Company will deliver to such Holder a written
statement as to whether it has complied with such requirements.

     SECTION 6.7. STAY, EXTENSION AND USURY LAWS.

     The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the principal, or interest (including Contingent Interest, if any, and
Additional Interest, if any) 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 it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law had been enacted.

     SECTION 6.8. PAYMENT OF ADDITIONAL INTEREST.

     If Additional Interest is payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee a certificate to that effect stating (i) the
amount of such Additional Interest that is payable (ii) the reason why such Additional Interest is

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payable and (iii) the date on which such Additional Interest is payable. Unless and until a
Trust Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry
that no such Additional Interest is payable. If the Company has paid Additional Interest directly
to the Persons entitled to it, the Company shall deliver to the Trustee a certificate setting forth
the particulars of such payment.

     SECTION 6.9. PAYMENT OF CONTINGENT INTEREST.

     If Contingent Interest is payable pursuant to the terms of the Paragraph 1 of the Security,
the Company shall furnish to the Trustee a certificate to that effect stating (i) the amount of
such Contingent Interest per $1,000 principal amount of the Notes that is payable, (ii) the facts
and calculations supporting the determination of such amount and (iii) the date on which such
interest is payable and pay the Contingent Interest, required by that paragraph. Unless and until
a Trust Officer receives the notice required by such paragraph, the Trustee may assume without
inquiry that no Contingent Interest is payable.

ARTICLE 7

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     SECTION 7.1. COMPANY MAY CONSOLIDATE, ETC, ONLY ON CERTAIN TERMS.

     The Company shall not consolidate with or merge into any other Person (in a transaction in
which the Company is not the surviving corporation) or convey, transfer or lease its properties and
assets substantially as an entirety to any Person, unless:

     (a) either (i) the Company is the surviving entity or (ii) the successor or transferee (the
“successor corporation”) is a corporation or limited liability company organized and existing under
the laws of the United States, any State thereof, or the District of Columbia and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the Trustee, all of the
obligation of the Company under the Securities and the Indenture;

     (b) immediately after giving effect to such transaction, no Default shall exist; and

     (c) the Company shall have delivered to the Trustee an Officers’ Certificate and, if requested
by the Trustee, an Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer, sale, lease or other disposition and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture, comply with this Article 7 and that
all conditions precedent herein provided for relating to such transaction have been satisfied.

     SECTION 7.2. SUCCESSOR SUBSTITUTED.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 7.1, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been

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named as the Company herein, and thereafter, except in the case of a lease, the predecessor
Person shall be relieved of all obligations and covenants under this Indenture and the Securities.

ARTICLE 8

DEFAULT AND REMEDIES

     SECTION 8.1. EVENTS OF DEFAULT.

     An “Event of Default” shall occur if:

          (1) the Company defaults in the payment of the principal amount, with respect to the
Securities, when the same become due and payable;

          (2) the Company defaults in the payment of any accrued and unpaid interest (including
Contingent Interest, if any, and Additional Interest, if any) in each case, when due and payable,
and continuance of such default for a period of 30 days;

          (3) the Company fails to satisfy its conversion obligation with respect to any portion of the
principal amount of any Security following the exercise by the Holder of the right to convert such
Security into Cash and, if applicable, shares of Common Stock pursuant to and in accordance with
Article 4;

          (4) the Company defaults in its obligation to pay the Repurchase Price or the Fundamental
Change Repurchase Price, as applicable, with respect to any Security, or any portion thereof, upon
the exercise by the Holder of such Holder’s right to require the Company to repurchase such
Securities pursuant to and in accordance with Section 3.8 or 3.9, as applicable;

          (5) the Company fails to comply with any of its agreements or covenants in the Securities or
this Indenture (other than those referred to in clauses (1) through (4) above) and such failure
continues for 60 days after receipt by the Company of a Notice of Default (defined below);

          (6) acceleration of any of the Company’s or any subsidiaries’ of the Company indebtedness for
money borrowed in the aggregate principal amount then outstanding of $35,000,000 or more so that
such indebtedness becomes due and payable prior to the date on which it would otherwise have become
due and payable, and such acceleration is not rescinded within 60 days after notice to the Company
by the trustee or to the trustee and the Company by the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding, in accordance with the Indenture;

          (7) the Company or any Significant Subsidiary, pursuant to or under or within the meaning of
any Bankruptcy Law:

               (A) commences a voluntary case or proceeding;

               (B) consents to the entry of any order for relief against it in an involuntary case or
proceeding or the commencement of any case against it;

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               (C) consents to the appointment of a Custodian of it or for any substantial part of its
property;

               (D) makes a general assignment for the benefit of its creditors;

               (E) files a petition in bankruptcy or answer or consent seeking reorganization or relief; or

               (F) consents to the filing of such petition or the appointment of or taking possession by a
Custodian; or

          (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

               (A) is for relief against the Company or any Significant Subsidiary, in an involuntary case or
proceeding;

               (B) appoints a Custodian of the Company or any Significant Subsidiary, or for any substantial
part of its property; or

               (C) orders the winding up or liquidation of the Company or any Significant Subsidiary,

     and in each case the order or decree remains unstayed and in effect for 60 consecutive days.

     The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto)
or any similar federal or state law for the relief of debtors. The term “Custodian” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law.

     A default under clauses (5) or (6) above is not an Event of Default until the Trustee notifies
the Company, or the Holders of at least 25% in aggregate principal amount of the Securities then
outstanding notify the Company and the Trustee, in writing of the default, and the Company does not
cure the default within 60 days after receipt of such notice. The notice given pursuant to this
Section 8.1 must specify the default, demand that it be remedied and state that the notice is a
“Notice of Default.” When any default under this Section 8.1 is cured, it ceases.

     The Trustee shall not be charged with knowledge of any Event of Default unless written notice
thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by
the Company, a Paying Agent, any Holder or any agent of any Holder.

     SECTION 8.2. ACCELERATION.

     If an Event of Default (other than an Event of Default specified in clause (7) or (8) of
Section 8.1) occurs and is continuing, the Trustee may, by notice to the Company, or the Holders of
at least 25% in aggregate principal amount of the Securities then outstanding may, by notice to the
Company and the Trustee, declare all unpaid principal to the date of acceleration on the

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Securities then outstanding (if not then due and payable) to be due and payable upon any such
declaration, and the same shall become and be immediately due and payable. If an Event of Default
specified in clause (7) or (8) of Section 8.1 occurs, all unpaid principal of the Securities then
outstanding shall ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holder. The Holders of a majority in aggregate
principal amount of the Securities then outstanding by notice to the Trustee may rescind an
acceleration and its consequences if (a) all existing Events of Default, other than the nonpayment
of the principal of the Securities which has become due solely by such declaration of acceleration,
have been cured or waived; (b) to the extent the payment of such interest is lawful, interest
(calculated at the rate per annum borne by the Securities) on overdue installments of interest and
overdue principal, which has become due otherwise than by such declaration of acceleration, has
been paid; (c) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction; and (d) all payments due to the Trustee and any predecessor Trustee under
Section 9.7 have been made. No such rescission shall affect any subsequent default or impair any
right consequent thereto.

     SECTION 8.3. OTHER REMEDIES.

     If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy by proceeding at law or in equity to collect the payment of the
principal of or 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 it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any
Securityholder 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 to the extent permitted
by law.

     SECTION 8.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.

     Subject to Sections 8.7 and 11.2, the Holders of a majority in aggregate principal amount of
the Securities then outstanding by notice to the Trustee may waive an existing default or Event of
Default and its consequence, except a default or Event of Default in the payment of the principal,
or interest on any Security, or the payment of the Redemption Price, the Repurchase Price or
Fundamental Change Repurchase Price or any default or Event of Default in respect of any provision
of this Indenture or the Securities which, under Section 11.2, cannot be modified or amended
without the consent of the Holder of each Security affected. When a default or Event of Default is
waived, it is cured and ceases.

     SECTION 8.5. CONTROL BY MAJORITY.

     The Holders of a majority in aggregate principal amount of the Securities then outstanding may
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 it. However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture, that the Trustee

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determines may be unduly prejudicial to the rights of another Holder or the Trustee, or that
may involve the Trustee in personal liability unless the Trustee is offered indemnity satisfactory
to it; provided, however, that the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.

     SECTION 8.6. LIMITATIONS ON SUITS.

     A Holder may not pursue any remedy with respect to this Indenture or the Securities (except
actions for payment of overdue principal or interest or for the conversion of the Securities
pursuant to Article 4) unless:

          (1) the Holder gives to the Trustee written notice of a continuing Event of Default;

          (2) the Holders of at least 25% in aggregate principal amount of the then outstanding
Securities make a written request to the Trustee to pursue the remedy;

          (3) such Holder or Holders offer to the Trustee reasonable indemnity to the Trustee against
any loss, liability or expense;

          (4) the Trustee does not comply with the request within 60 days after receipt of the request
and the offer of indemnity; and

          (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in aggregate principal amount of the Securities
then outstanding.

     A Securityholder may not use this Indenture to prejudice the rights of another Securityholder
or to obtain a preference or priority over such other Securityholder.

     SECTION 8.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT.

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of the principal of and interest on the Security, on or after the respective due
dates expressed in the Security and this Indenture, to convert such Security in accordance with
Article 4 and to bring suit for the enforcement of any such payment on or after such respective
dates or the right to convert, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.

     SECTION 8.8. COLLECTION SUIT BY TRUSTEE.

     If an Event of Default in the payment of principal or interest specified in clause (1) or (2)
of Section 8.1 occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company or another obligor on the Securities for the whole
amount of principal and accrued interest remaining unpaid, together with, to the extent that
payment of such interest is lawful, interest on overdue principal and on overdue installments of
interest, in each case at the rate per annum borne by the Securities and such further amount as

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shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

     SECTION 8.9. TRUSTEE MAY FILE PROOFS OF CLAIM.

     The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered to collect and
receive any money or other property payable or deliverable on any such claims and to distribute the
same, and any Custodian 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 to 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 9.7, and to the extent that such payment of the
reasonable compensation, expenses, disbursements and advances in any such proceedings shall be
denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other property which the Holders may be
entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization
or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to, or, on behalf of any Holder, to authorize, accept or adopt 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 8.10. PRIORITIES.

     If the Trustee collects any money pursuant to this Article 8, it shall pay out the money in
the following order:

     First, to the Trustee for amounts due under Section 9.7;

     Second, to Holders for amounts due and unpaid on the Securities for principal and interest
(including Contingent Interest, if any, and Additional Interest, if any), ratably, without
preference or priority of any kind, according to the amounts due and payable on the Securities for
principal and interest (including Contingent Interest, if any, and Additional Interest, if any),
respectively; and

     Third, the balance, if any, to the Company.

     The Trustee may fix a record date and payment date for any payment to Holders pursuant to this
Section 8.10.

     SECTION 8.11. 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, a court in its discretion may

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require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
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. This Section 8.11 does not apply to a
suit made by the Trustee, a suit by a Holder pursuant to Section 8.7, or a suit by Holders of more
than 10% in aggregate principal amount of the Securities then outstanding.

ARTICLE 9

TRUSTEE

     SECTION 9.1. DUTIES OF TRUSTEE.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture and use the same degree of care and skill in
its exercise as a prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

     (b) Except during the continuance of an Event of Default:

          (1) the Trustee need perform only those duties as are specifically set forth in this Indenture
and no others; and

          (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements of this Indenture. The
Trustee, however, shall examine any certificates and opinions which by any provision hereof are
specifically required to be delivered to the Trustee to determine whether or not they conform to
the requirements of this Indenture.

     (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

          (1) this paragraph does not limit the effect of subsection (b) of this Section 9.1;

          (2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust
Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;
and

          (3) the Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 8.5.

     (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers unless the Trustee shall have received adequate
indemnity in its opinion against potential costs and liabilities incurred by it relating thereto.

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     (e) Every provision of this Indenture that in any way relates to the Trustee is subject to
subsections (a), (b), (c) and (d) of this Section 9.1.

     (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     SECTION 9.2. RIGHTS OF TRUSTEE.

     Subject to Section 9.1:

     (a) The Trustee may rely conclusively on any document believed by it to be genuine and to have
been signed or presented by the proper person. The Trustee need not investigate any fact or matter
stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel, which shall conform to Section 13.4(b). The Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or
Opinion.

     (c) The Trustee may act through its agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.

     (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.

     (e) The Trustee may consult with counsel of its selection, and the advice or opinion of such
counsel as to matters of law shall be full and complete authorization and protection in respect of
any such action taken, omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

     (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction.

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

     (h) Except with respect to Section 6.1, the Trustee shall have no duty to inquire as to the
performance of the Company with respect to the covenants contained in Article 6. In addition,

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the Trustee shall not be deemed to have knowledge of an Event of Default except (i) any
Default or Event of Default occurring pursuant to Sections 6.1, 8.1(1) or 8.1(2) or (ii) any
Default or Event of Default of which the Trustee shall have received written notification or
obtained actual knowledge.

     (i) 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 to each agent, custodian and
other Person employed to act hereunder.

     (j) Delivery of reports, information and documents to the Trustee under Section 6.2 is for
informational purposes only and the Trustee’s receipt of the foregoing 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 rely exclusively on Officer’s Certificates).

     SECTION 9.3. INDIVIDUAL RIGHTS OF TRUSTEE.

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or an Affiliate of the Company with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee is subject to Sections 9.10 and 9.11.

     SECTION 9.4. TRUSTEE’S DISCLAIMER.

     The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities,
and it shall not be responsible for any statement in the Securities other than its certificate of
authentication.

     SECTION 9.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT.

     If a default or an Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to each Securityholder notice of the default or Event of Default
within 90 days after it occurs. However, the Trustee may withhold the notice if and so long as a
committee of its Trust Officers in good faith determines that withholding notice is in the
interests of Securityholders, except in the case of a default or an Event of Default in payment of
the principal of or interest on any Security.

     SECTION 9.6. REPORTS BY TRUSTEE TO HOLDERS.

     If such report is required by TIA Section 313, within 60 days after each May 15, beginning
with the May 15 following the date of this Indenture, the Trustee shall mail to each Securityholder
a brief report dated as of such May 15 that complies with TIA Section 313(a). The Trustee also
shall comply with TIA Section 313(b)(2) and (c).

     A copy of each report at the time of its mailing to Securityholders shall be mailed to the
Company and filed with the SEC and each stock exchange, if any, on which the Securities are

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listed. The Company shall notify the Trustee whenever the Securities become listed on any
stock exchange or listed or admitted to trading on any quotation system and any changes in the
stock exchanges or quotation systems on which the Securities are listed or admitted to trading and
of any delisting thereof.

     SECTION 9.7. COMPENSATION AND INDEMNITY.

     The Company shall pay to the Trustee from time to time such compensation (as agreed to from
time to time by the Company and the Trustee in writing) for its services (which compensation shall
not be limited by any provision of law in regard to the compensation of a trustee of an express
trust). The Company shall reimburse the Trustee upon request for all reasonable disbursements,
expenses and advances incurred or made by it. Such expenses may include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

     The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of this
Section 9.7 shall include its officers, directors, employees and agents) for, and hold it harmless
against, any and all loss, liability or expense including taxes (other than taxes based upon,
measured by or determined by the income of the Trustee), (including reasonable legal fees and
expenses) incurred by it in connection with the acceptance or administration of its duties under
this Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The Trustee shall notify the
Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The
Company need not pay for any settlement without its written consent, which shall not be
unreasonably withheld.

     The Company need not reimburse the Trustee for any expense or indemnify it against any loss or
liability incurred by it resulting from its gross negligence or bad faith.

     To secure the Company’s payment obligations in this Section 9.7, the Trustee shall have a
senior claim to which the Securities are hereby made subordinate on all money or property held or
collected by the Trustee, except such money or property held in trust to pay the principal of and
interest on the Securities. The obligations of the Company under this Section 9.7 shall survive
the satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
clause (7) or (8) of Section 8.1 occurs, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Bankruptcy Law. The provisions of this
Section shall survive the termination of this Indenture.

     SECTION 9.8. REPLACEMENT OF TRUSTEE.

     The Trustee may resign by so notifying the Company. The Holders of a majority in aggregate
principal amount of the Securities then outstanding may remove the Trustee by so

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notifying the Trustee and may, with the Company’s written consent, appoint a successor
Trustee. The Company may remove the Trustee if:

          (1) the Trustee fails to comply with Section 9.10;

          (2) the Trustee is adjudged a bankrupt or an insolvent;

          (3) a receiver or other public officer takes charge of the Trustee or its property; or

          (4) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. The resignation or removal of a
Trustee shall not be effective until a successor Trustee shall have delivered the written
acceptance of its appointment as described below.

     If a successor Trustee does not take office within 45 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of 10% in principal amount of the
Securities then outstanding may petition any court of competent jurisdiction for the appointment of
a successor Trustee at the expense of the Company.

     If the Trustee fails to comply with Section 9.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee and be released from its obligations
(exclusive of any liabilities that the retiring Trustee may have incurred while acting as Trustee)
hereunder, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Holder.

     A retiring Trustee shall not be liable for the acts or omissions of any successor Trustee
after its succession.

     Notwithstanding replacement of the Trustee pursuant to this Section 9.8, the Company’s
obligations under Section 9.7 shall continue for the benefit of the retiring Trustee.

     SECTION 9.9. SUCCESSOR TRUSTEE BY MERGER, ETC.

     If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust assets (including the administration of this Indenture) to, another
corporation, the resulting, surviving or transferee corporation, without any further act, shall be
the successor Trustee, provided such transferee corporation shall qualify and be eligible
under Section 9.10. Such successor Trustee shall promptly mail notice of its succession to the
Company and each Holder.

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     SECTION 9.10. ELIGIBILITY; DISQUALIFICATION.

     The Trustee shall always satisfy the requirements of paragraphs (1), (2) and (5) of TIA
Section 310(a). The Trustee (or its parent holding company) shall have a combined capital and
surplus of at least $50,000,000. If at any time the Trustee shall cease to satisfy any such
requirements, it shall resign immediately in the manner and with the effect specified in this
Article 9. The Trustee shall be subject to the provisions of TIA Section 310(b). Nothing herein
shall prevent the Trustee from filing with the SEC the application referred to in the penultimate
paragraph of TIA Section 310(b).

     SECTION 9.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

     The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed
in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section
311(a) to the extent indicated therein.

ARTICLE 10

SATISFACTION AND DISCHARGE OF INDENTURE

     SECTION 10.1. SATISFACTION AND DISCHARGE OF INDENTURE.

     This Indenture shall cease to be of further effect (except as to any surviving rights of
conversion, registration of transfer or exchange of Securities herein expressly provided for and
except as further provided below), and the Trustee, on demand of and at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

          (1) either

               (A) all Securities theretofore authenticated and delivered (other than (i) Securities which
have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.7
and (ii) Securities for whose payment money has theretofore been deposited in trust and thereafter
repaid to the Company as provided in Section 10.3) have been delivered to the Trustee for
cancellation; or

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

                    (i) have become due and payable, or

                    (ii) will become due and payable at the Final Maturity Date within one
year, or

                    (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,

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and the Company, in the case of clause (i), (ii) or (iii) above, has irrevocably deposited or
caused to be irrevocably deposited with the Trustee or a Paying Agent (other than the Company or
any of its Affiliates) as trust funds in trust for the purpose Cash in an amount sufficient to pay
and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and interest (including Contingent Interest, if any, and Additional
Interest, if any) to the date of such deposit (in the case of Securities which have become due and
payable) or to the Final Maturity Date or Redemption Date, as the case may be;

          (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and

          (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

     Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 9.7 shall survive and, if money shall have been deposited with
the Trustee pursuant to subclause (B) of clause (1) of this Section, the provisions of Sections
2.3, 2.4, 2.5, 2.6, 2.7, 2.12, 3.8, 3.9, 3.10, 3.11 and 12.5, Article 4, the last paragraph of
Section 6.2 and this Article 10, shall survive until the Securities have been paid in full.

     SECTION 10.2. APPLICATION OF TRUST MONEY.

     Subject to the provisions of Section 10.3, the Trustee or a Paying Agent shall hold in trust,
for the benefit of the Holders, all money deposited with it pursuant to Section 10.1 and shall
apply the deposited money in accordance with this Indenture and the Securities to the payment of
the principal of and interest on the Securities.

     SECTION 10.3. REPAYMENT TO COMPANY.

     The Trustee and each Paying Agent shall promptly pay to the Company upon request any excess
money (i) deposited with them pursuant to Section 10.1 and (ii) held by them at any time.

     The Trustee and each Paying Agent shall pay to the Company upon request any money held by them
for the payment of principal or interest that remains unclaimed for two years after a right to such
money has matured; provided, however, that the Trustee or such Paying Agent, before being
required to make any such payment, may at the expense of the Company cause to be mailed to each
Holder entitled to such money notice that such money remains unclaimed and that after a date
specified therein, which shall be at least 30 days from the date of such mailing, any unclaimed
balance of such money then remaining will be repaid to the Company. After payment to the Company,
Holders entitled to money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another person.

     SECTION 10.4. REINSTATEMENT.

     If the Trustee or any Paying Agent is unable to apply any money in accordance with Section
10.2 by reason of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application,

63

 

then the Company’s obligations under this Indenture and the Securities shall be revived and
reinstated as though no deposit had occurred pursuant to Section 10.1 until such time as the
Trustee or such Paying Agent is permitted to apply all such money in accordance with Section 10.2;
provided, however, that if the Company has made any payment of the principal of or interest
on any Securities because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive any such payment from the money held by
the Trustee or such Paying Agent.

ARTICLE 11

AMENDMENTS, SUPPLEMENTS AND WAIVERS

     SECTION 11.1. WITHOUT CONSENT OF HOLDERS.

     The Company and the Trustee may amend or supplement this Indenture or the Securities without
notice to or consent of any Securityholder to:

     (a) add to the covenants of the Company for the benefit of the Holders of Securities;

     (b) surrender any right or power herein conferred upon the Company by this Indenture;

     (c) provide for the assumption of the Company’s obligations to the Holders of Securities in
the case of a merger, consolidation, conveyance, transfer, sale, lease or other disposition
pursuant to Article 7;

     (d) increase the Conversion Rate or reduce the Conversion Price; provided,
however, that such increase in the Conversion Rate or reduction in the Conversion
Price, as the case may be, is in accordance with the terms of this Indenture or shall not adversely
affect the interests of the Holders of Securities in any material respect;

     (e) comply with the requirements of the SEC in order to effect or maintain the qualification
of this Indenture under the TIA;

     (f) provide for a successor Trustee with respect to the Securities;

     (g) add any additional Events of Default with respect to all or any of the Securities;

     (h) secure the Securities;

     (i) supplement any of the provisions of the Indenture to such extent as shall be necessary to
permit or facilitate the discharge of the Securities, provided, that such change or
modification does not adversely affect the interests of the Holders of the Securities in any
material respect;

     (j) make any changes or modifications necessary in connection with the registration of the
Securities under the Securities Act as contemplated in the Registration Rights Agreement;
provided, however, that such action does not adversely affect the interests
of the Holders of Securities in any material respect;

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     (k) cure any ambiguity, correct or supplement any provision herein which may be inconsistent
with any other provision herein or which is otherwise defective, or to make any other provisions
with respect to matters or questions arising under this Indenture which the Company may deem
necessary or desirable and which shall not be inconsistent with the provisions of this Indenture;
provided, however, that such action does not adversely affect the interests
of the Holders of Securities in any material respect; and

     (l) add or modify any other provisions herein with respect to matters or questions arising
hereunder which the Company and the Trustee may deem necessary or desirable and which would not
adversely affect the interests of the Holders of Securities in any material respect.

     SECTION 11.2. WITH CONSENT OF HOLDERS.

     The Company and the Trustee may amend or supplement this Indenture or the Securities with the
written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding. The Holders of at least a majority in aggregate principal amount of
the Securities then outstanding may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Securities without notice to any Securityholder. However,
notwithstanding the foregoing but subject to Section 11.4, without the written consent of each
Securityholder affected, an amendment, supplement or waiver, including a waiver pursuant to Section
8.4, may not:

     (a) change the stated maturity of the principal of, or any installment of interest (including
Contingent Interest or Additional Interest) on, any Security;

     (b) reduce the principal amount of, Redemption Price, Repurchase Price, Fundamental Change
Repurchase Price or any interest (including Contingent Interest or Additional Interest) on, any
Security;

     (c) alter the manner of calculation or rate of accrual of interest (including Contingent
Interest or Additional Interest) on or the Redemption Price, the Repurchase Price, or the
Fundamental Change Repurchase Price of any Security or extend the time or payment of any such
amount;

     (d) change the place or currency of payment of principal of, or any interest on (including
Contingent Interest or Additional Interest), any Security;

     (e) impair the right of any Holder to institute suit for the enforcement of any repurchase of,
payment on or with respect to, or conversion of, any Security on or after the stated maturity of
the Securities, in the case of redemption, on or after the Redemption Date, or in the case of
repayment at the option of the Holder, on or after the Repurchase Date or Fundamental Change
Repurchase Date;

     (f) modify the optional redemption provisions of Article 3 in a manner materially adverse to
the Holders of Securities;

     (g) adversely affect the right of Holders to convert Securities other than as provided in or
under Article 4 of this Indenture;

65

 

     (h) adversely affect the right of Holders to require the Company to repurchase the Security as
provided in Sections 3.8 and 3.9;

     (i) reduce the percentage of the aggregate principal amount of the outstanding Securities
whose Holders must consent to a modification or amendment;

     (j) reduce the percentage of the aggregate principal amount of the outstanding Securities
necessary for the waiver of compliance with certain provisions of this Indenture or the waiver of
certain defaults under this Indenture; and

     (k) modify any of the provisions of this Section 11.2 or Section 8.4, except to increase any
such percentage or to provide that certain provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each outstanding Security affected thereby.

     It shall not be necessary for the consent of the Holders under this Section 11.2 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 11.2 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such amendment, supplement or
waiver.

     To the extent that the Company or any of the Subsidiaries hold any Securities, such Securities
shall be disregarded for purposes of voting in connection with any notice, waiver, consent or
direction requiring the vote or concurrence of Securityholders.

     SECTION 11.3. COMPLIANCE WITH TRUST INDENTURE ACT.

     Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as in effect at the date of such amendment or supplement.

     SECTION 11.4. REVOCATION AND EFFECT OF CONSENTS.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security, even if notation of the consent
is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent
as to its Security or portion of a Security if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective.

     After an amendment, supplement or waiver becomes effective, it shall bind every
Securityholder, unless it makes a change described in any of clauses (a) through (k) of Section
11.2. In that case the amendment, supplement or waiver shall bind each Holder of a Security who
has consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

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     SECTION 11.5. NOTATION ON OR EXCHANGE OF SECURITIES.

     If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security about the changed terms and return it to the Holder. Alternatively, if
the Company or the Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

     SECTION 11.6. TRUSTEE TO SIGN AMENDMENTS, ETC.

     The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this
Article 11 if the amendment or supplemental indenture does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but
need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and, subject to Section 9.1, shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is
authorized or permitted by this Indenture. The Company may not sign an amendment or supplement
indenture until the Board of Directors approves it.

     SECTION 11.7. EFFECT OF SUPPLEMENTAL INDENTURES.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

ARTICLE 12

TAX TREATMENT

     SECTION 12.1. TAX TREATMENT

     (a) The parties hereto hereby agree, and each Holder and any beneficial holder of a Security
by its purchase of a Security hereby agrees (in the absence of administrative pronouncement or
judicial ruling to the contrary):

          (1) to treat the Securities as indebtedness of the Company for all United States federal
income tax purposes;

          (2) to treat the Securities as debt instruments that are subject to Treasury Regulation
section 1.1275-4(b); and

          (3) to treat the delivery of Cash and, if applicable, Common Stock (including Cash delivered
in lieu of a fractional share) to a Holder of a Security upon conversion of such Security, or upon
a purchase of such Security by the Company at the option of the Holder of a Security where the
Company makes a payment in Cash (including Cash paid in lieu of a fractional share) as a contingent
payment (in an amount equal to the sum of the Cash and Fair

67

 

Market Value of any such Common Stock received) under Treasury Regulation section 1.1275-4(b).

     SECTION 12.2. COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE

     (a) Solely for purposes of applying Treasury Regulation section 1.1275-4 to the Securities:

          (1) for United States federal income tax purposes, the Company shall accrue interest with
respect to outstanding Securities as original issue discount according to the “noncontingent bond
method,” as set forth in Treasury Regulation section 1.1275-4(b) using a comparable yield of 5.75%,
compounded semiannually and the projected payment schedule as determined by the Company;

          (2) the Company shall file with the Trustee promptly at the end of each calendar year (A) a
written notice specifying the amount of original issue discount for United States federal income
tax purposes accrued on outstanding Securities as of the end of such year and (B) such other
specific information relating to such original issue discount that the Company determines to be
relevant under the Internal Revenue Code of 1986, as amended from time to time, including the
amount of any adjustment made under the noncontingent bond method to account for the amount of any
difference between the amount of an actual payment and the amount of a projected payment; and

          (3) the Company acknowledges and agrees, and each Holder and any beneficial holder of a
Security, by its purchase of a Security shall be deemed to acknowledge and agree, that (A) the
comparable yield and the projected payment schedule are determined on the basis of an assumption of
linear growth of stock price and a constant growth in dividend yield, (B) the comparable yield and
the projected payment schedule are not determined for any purpose other than for the purpose of
applying Treasury Regulation section 1.1275-4(b)(4) to the Security, (C) the comparable yield and
the projected payment schedule do not constitute a projection or representation regarding the
actual amounts payable on the Securities, and (D) the Company’s application of Treasury Regulation
section 1.1275-4(b) shall be binding on each Holder and any beneficial holder of a Security,
including the Company’s determination of the comparable yield and the projected payment schedule.

          (4) Holders that wish to obtain the projected payment schedule may do so by contacting the
Company (to the attention of the Treasurer) as set forth in Section 13.2 below.

ARTICLE 13

MISCELLANEOUS

     SECTION 13.1. TRUST INDENTURE ACT CONTROLS.

     If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
any of Sections 310 to 317, inclusive, of the TIA through operation of Section 318(c) thereof, such
imposed duties shall control.

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     SECTION 13.2. NOTICES.

     Any demand, authorization notice, request, consent or communication shall be given in writing
and delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or
transmitted by facsimile transmission (confirmed by delivery in person or mail by first-class mail,
postage prepaid, or by guaranteed overnight courier) to the following facsimile numbers:

		
	           	If to the Company, to:

IVAX Corporation

4400 Biscayne Boulevard

Miami, FL 33137

Attention: President

Facsimile No.: (305) 575-6055

with copies to:

IVAX Corporation

4400 Biscayne Boulevard

Miami, FL 33137

Attention: General Counsel

Facsimile No.: (305) 575-6055

and to:

Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

150 W. Flagler Street

Suite 2200

Miami, Florida 33130

Attention: Alison W. Miller, Esq.

Facsimile No.: (305) 789-3395

if to the Trustee, to:

U.S. Bank National Association

60 Livingston Avenue

EP-MN-WS3C

St. Paul, Minnesota 55107

Attn: Corporate Trust Services

(IVAX Corporation – 1.875% Convertible

Senior Notes due 2024)

Facsimile No.: (651) 495-8097

     Such notices or communications shall be effective when received.

     The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

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     Any notice or communication mailed to a Securityholder shall be mailed by first-class mail or
delivered by an overnight delivery service to it at its address shown on the register kept by the
Primary Registrar.

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

     SECTION 13.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

     Securityholders may communicate pursuant to TIA Section 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and any other person shall have the protection of TIA Section 312(c).

     SECTION 13.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

     (a) Upon any request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee at the request of the Trustee:

          (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions
precedent (including any covenants, compliance with which constitutes a condition precedent), if
any, provided for in this Indenture relating to the proposed action have been complied with; and

          (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent (including any covenants, compliance with which constitutes a condition precedent) have
been complied with.

     (b) Each Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

          (1) a statement that the person making such certificate or opinion has read such covenant or
condition;

          (2) 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;

          (3) a statement that, in the opinion of such person, he or she has made such examination or
investigation as is necessary to enable him or her to express an informed opinion as to whether or
not such covenant or condition has been complied with; and

          (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with;

70

 

provided, however, that with respect to matters of fact an Opinion of Counsel may
rely on an Officers’ Certificate or certificates of public officials.

     SECTION 13.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS.

     The Company (or, in the event deposits have been made pursuant to Section 10.1, the Trustee)
may set a record date for purposes of determining the identity of Holders entitled to vote or
consent to any action by vote or consent authorized or permitted under this Indenture, which record
date shall not be more than thirty (30) days prior to the date of the commencement of solicitation
of such action. Notwithstanding the provisions of Section 11.4, if a record date is fixed, those
persons who were Holders of Securities at the close of business on such record date (or their duly
designated proxies), and only those persons, shall be entitled to take such action by vote or
consent or to revoke any vote or consent previously given, whether or not such persons continue to
be Holders after such record date.

     SECTION 13.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT.

     The Trustee may make reasonable rules (not inconsistent with the terms of this Indenture) for
action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make
reasonable rules for its functions.

     SECTION 13.7. LEGAL HOLIDAYS.

     A “Legal Holiday” is a Saturday, Sunday or a day on which state or federally chartered banking
institutions in New York, New York and the state in which the Corporate Trust Office is located are
not required to be open. If a payment date is a Legal Holiday, payment shall be made on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening
period. If a regular record date is a Legal Holiday, the record date shall not be affected.

     SECTION 13.8. GOVERNING LAW.

     This Indenture and the Securities shall be governed by, and construed in accordance with, the
laws of the State of New York, without regard to principles of conflicts of laws.

     SECTION 13.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

     This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used
to interpret this Indenture.

     SECTION 13.10. NO RECOURSE AGAINST OTHERS.

     All liability described in Paragraph 19 of the Securities of any director, officer, employee
or shareholder, as such, of the Company is waived and released.

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     SECTION 13.11. SUCCESSORS.

     All agreements of the Company in this Indenture and the Securities shall bind its successor.
All agreements of the Trustee in this Indenture shall bind its successor.

     SECTION 13.12. MULTIPLE COUNTERPARTS.

     The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall
be deemed an original, but all of them together represent the same agreement.

     SECTION 13.13. SEPARABILITY.

     In case any provisions 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 13.14. TABLE OF CONTENTS, HEADINGS, ETC.

     The table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

72

 

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written.

	 	 	 	 	 
	 	IVAX Corporation

 	 
	 	By:  	/s/ Steven D. Rubin
 	 
	 	 	Name:  	Steven D. Rubin 	 
	 	 	Title:  	Senior Vice President and General Counsel 	 
	 

	 	 	 	 	 
	 	U.S. Bank National Association, as Trustee

 	 
	 	By:  	/s/ Richard Prokosch
 	 
	 	 	Name:  	Richard Prokosch 	 
	 	 	Title:  	Vice President 	 

73

 

	 	 	 	 	 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY 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 THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]1

     [THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS
SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING
ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.]2

     [THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND
THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY BE OFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A

	1	 	These paragraphs should be included only if the Security
is a Global Security.
	 
	2	 	These paragraphs to be included only if the
Security is a Transfer Restricted Security.

A-1

 

TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE)
OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES
(I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]2

     [THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT
(AS SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE
HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS
AGREEMENT.]2

     FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
THIS SECURITY IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT. IN ADDITION, THIS SECURITY IS SUBJECT
TO REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS. UNDER SUCH REGULATIONS, THE
COMPARABLE YIELD OF THIS SECURITY IS 5.75%.

     THE ISSUER AGREES, AND BY PURCHASING A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITIES EACH
HOLDER OF SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES
(1) TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE
“CONTINGENT PAYMENT REGULATIONS”) AND, FOR PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, TO TREAT
THE FAIR MARKET VALUE OF ANY STOCK BENEFICIALLY RECEIVED BY A BENEFICIAL HOLDER UPON ANY CONVERSION
OF THE SECURITIES AS A CONTINGENT PAYMENT AND (2) TO BE BOUND BY THE ISSUER’S DETERMINATION OF THE
“COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT PAYMENT
REGULATIONS, WITH RESPECT TO THE SECURITIES. THE ISSUER AGREES TO PROVIDE PROMPTLY TO HOLDER OF
SECURITIES, UPON WRITTEN REQUEST, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO
MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD BE SENT
TO THE ISSUER AT THE FOLLOWING ADDRESS: IVAX CORPORATION, 4400 BISCAYNE BOULEVARD, MIAMI, FL 33137,
ATTENTION: TREASURER.

	2	 	These paragraphs to be included only if the
Security is a Transfer Restricted Security.

A-2

 

IVAX CORPORATION

CUSIP No.: ________________

1.875% CONVERTIBLE SENIOR NOTES DUE 2024

     IVAX Corporation, a Florida corporation (the “Company,” which term shall include any successor
corporation under the Indenture referred to on the reverse hereof), promises to pay to Cede & Co.,
or registered assigns, the principal sum of Three Hundred Thirty Three Million Dollars
($333,000,000) on December 15, 2024, or such greater or lesser amount as is indicated on the
Schedule of Exchanges of Notes on the other side of this Note to reflect exchanges, redemptions,
purchases and conversions.

	 	 	 
	Interest Payment Dates:

	 	June 15 and December 15, commencing June 15, 2005
	Record Dates:

	 	June 1 and December 1

     This Note is convertible as specified on the other side of this Note. Additional provisions
of this Note are set forth on the other side of this Note.

SIGNATURE PAGE FOLLOWS

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

	 	 	 	 	 
	 	IVAX CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

Name:

Title:

Dated: December 22, 2004

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to

in the within-mentioned Indenture.

U.S. Bank National Association, as Trustee

Authorized Signatory

A-4

 

[FORM OF REVERSE SIDE OF SECURITY]

IVAX CORPORATION

1.875% CONVERTIBLE SENIOR NOTES DUE 2024

     1. INTEREST

          The Company promises to pay interest on the principal amount of this Note at the rate of
1.875% per annum. The Company shall pay interest semiannually on June 15 and December 15 of each
year (each, an “Interest Payment Date”), commencing on June 15, 2005. Interest on the Notes shall
accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from December 22, 2004; provided, however, that if there is not an existing default in the payment
of interest and if this Note is authenticated between a record date referred to on the face hereof
and the next succeeding interest payment date, interest shall accrue from such interest payment
date. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

          In addition, the Company shall pay contingent interest (“Contingent Interest”) to the Holders
during any six-month period (a “Contingent Interest Period”) from December 15 to June 14 and from
June 15 to December 14, commencing with the six-month period beginning December 15, 2010, if the
average Market Price of a Note for the five Trading Day period ending on the third Trading Day
immediately preceding the relevant Contingent Interest Period equals $1,200 (120% of the principal
amount of a Note) or more.

          Upon a determination by the Company that Holders will be entitled to receive Contingent
Interest which will become payable during a Contingent Interest Period, on or prior to the first
day of such Contingent Interest Period, the Company shall deliver an Officer’s Certificate to the
Trustee setting forth the amount of such Contingent Interest per $1,000 principal amount of Notes
and shall issue a press release through a public medium as is customary for such a press release.

          The amount of Contingent Interest payable per $1,000 principal amount of Notes for any
relevant Contingent Interest Period shall equal 0.29% per annum of the average Market Price of such
Note for the five Trading Day period ending on the third Trading Day immediately preceding the
first day of the relevant six-month period. Contingent Interest, if any, will accrue and be
payable to Holders in the same manner as regular interest. Regular interest will continue to
accrue at the rate of 1.875% per year on the principal amount of the Notes whether or not
Contingent Interest is paid.

          If this Note is redeemed pursuant to Section 6 of this Note or the Holder elects to require
the Company to repurchase this Note pursuant to Section 8 of this Note, on a date that is after the
Regular Record Date and prior to the corresponding Interest Payment Date, interest (including
Contingent Interest, if any, and Additional Interest, if any) accrued and unpaid hereon to, but not
including, the applicable Redemption Date, Repurchase Date or Fundamental Change Repurchase Date
will be paid to the same Holder to whom the Company pays the principal of such Note regardless of
whether such Holder was the registered Holder on the Regular Record

A-5

 

Date immediately preceding the applicable Redemption Date, Repurchase Date or Fundamental
Change Repurchase Date.

          Interest (including Contingent Interest, if any, and Additional Interest, if any) on Notes
converted after the close of business on a Regular Record Date but prior to the opening of business
on the corresponding Interest Payment Date will be paid to the Holder of the Notes on June 1 or
December 1 (whether or not a Business Day), as the case may be, next preceding the corresponding
Interest Payment Date (a “Regular Record Date”) but, upon conversion, the Holder must pay the
Company the interest (including Contingent Interest, if any, and Additional Interest, if any) which
has accrued and will be paid on such Interest Payment Date. No such payment need be made with
respect to Notes which will be converted after a Regular Record Date and prior to the corresponding
Interest Payment Date after being called for redemption by the Company.

          Any reference herein to interest accrued or payable as of any date shall include any
Additional Interest accrued or payable on such date as provided in Paragraph 2 hereof.

     2. [REGISTRATION RIGHTS AGREEMENT

          The holder of this Note is entitled to the benefits of a Registration Rights Agreement, dated
as of December 22, 2004, among the Company and the Initial Purchaser (the “Registration Rights
Agreement”). Pursuant to the Registration Rights Agreement the Company has agreed for the benefit
of the Holders of the Notes, that (i) it will, at its cost, within 90 days after the closing of the
sale of the Notes (the “Closing”), file a shelf registration statement (the “Shelf Registration
Statement”) with the Securities and Exchange Commission (the “Commission”) with respect to resales
of the Notes and the Common Stock issuable upon conversion thereof, (ii) it will use its reasonable
best efforts to cause such Shelf Registration Statement to be declared effective within 180 days
after the Closing, and (iii) it will use its reasonable best efforts to keep such Shelf
Registration Statement continuously effective under the Securities Act, subject to certain
exceptions specified in the Registration Rights Agreement until the earliest of the dates specified
in the Registration Rights Agreement. As set forth in the Registration Rights Agreement, the
Company will be permitted to suspend use of the prospectus that is part of the Shelf Registration
Statement during certain periods of time and in certain circumstances relating to pending corporate
developments and public filings with the SEC and similar events. If (a) the Company fails to file
the Shelf Registration Statement required by the Registration Rights Agreement on or before the
date specified above for such filing, (b) such Shelf Registration Statement is not declared
effective by the Commission on or prior to the date specified above for such effectiveness, or (c)
the Shelf Registration Statement is declared effective but thereafter ceases to be effective or
useable in connection with resales of Transfer Restricted Securities (as defined in the
Registration Rights Agreement) during the periods specified in the Registration Rights Agreement
(each such event referred to in clauses (a) through (c) above a “Registration Default”), then the
Company will pay Additional Interest to each Holder of Transfer Restricted Securities, with respect
to the first 90-day period immediately following the occurrence of such Registration Default in an
amount equal to an increase in the annual interest rate on the Notes of 0.25% (“Additional
Interest”) and thereafter at 0.5% per annum. All accrued Additional Interest shall be paid by the
Company on each date on which regular interest is payable by wire transfer of immediately available
funds or by federal funds check to the holders of Global Notes and to

A-6

 

holders of certificated Notes registered as such as of the preceding Record Date by the means
specified in the Indenture. Following the cure of all Registration Defaults, the application of
Additional Interest will cease.]2

     3. METHOD OF PAYMENT

          Except as provided herein, the Company shall pay interest (including Contingent Interest, if
any, and Additional Interest, if any) on this Note (except defaulted interest) to the person who is
the Holder of this Note at the close of business on the Regular Record Date, next preceding the
related interest payment date. The Holder must surrender this Note to a Paying Agent to collect
payment of principal. The Company will pay principal and interest (including Contingent Interest,
if any, and Additional Interest, if any) in money of the United States that at the time of payment
is legal tender for payment of public and private debts. The Company may, however, pay principal
and interest (including Contingent Interest, if any, and Additional Interest, if any) in respect of
any Certificated Security by check or wire payable in such money; provided,
however, that a Holder with an aggregate principal amount in excess of $5,000,000 will be
paid by wire transfer in immediately available funds at the election of such Holder if such Holder
has provided wire transfer instructions to the Company at least 10 Business Days prior to the
payment date.

     4. PAYING AGENT, REGISTRAR, BID SOLICITATION AGENT AND CONVERSION AGENT

          Initially, U.S. Bank National Association (the “Trustee,” which term shall include any
successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar,
Bid Solicitation Agent and Conversion Agent. The Company may change any Paying Agent, Registrar,
Bid Solicitation Agent or Conversion Agent without notice to the Holder. The Company or any of its
Subsidiaries may, subject to certain limitations set forth in the Indenture, act as Paying Agent or
Registrar.

     5. INDENTURE, LIMITATIONS

          This Note is one of a duly authorized issue of Securities of the Company designated as its
1.875% Convertible Senior Notes due 2024 (the “Notes”), issued under an Indenture dated as of
December 22, 2004 (together with any supplemental indentures thereto, the “Indenture”), between the
Company and the Trustee. The terms of this Note include those stated in the Indenture and those
required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended, as in effect on the date of the Indenture. This Note is subject to all such terms, and
the Holder of this Note is referred to the Indenture and said Act for a statement of them. The
Notes are senior unsecured obligations of the Company limited to $333,000,000 aggregate principal
amount. The Indenture does not limit other debt of the Company, secured or unsecured.

	2	 	These paragraphs to be included only if the
Security is a Transfer Restricted Security.

A-7

 

     6. OPTIONAL REDEMPTION

          The Notes are subject to redemption, at any time on or after December 15, 2010, as a whole or
from time to time in part, at the election of the Company. The Redemption Price is 100% of the
principal amount together with accrued and unpaid interest (including Contingent Interest, if any,
and Additional Interest, if any) up to but not including the Redemption Date; provided,
that if the Redemption Date falls after an interest payment record date and on or before an
interest payment date, then the interest (including Contingent Interest, if any, and Additional
Interest, if any) will be payable to the Holders in whose names the Notes are registered at the
close of business on the relevant interest payment record date.

          No sinking fund is provided for the Notes.

     7. NOTICE OF REDEMPTION

          Notice of redemption will be mailed by first-class mail at least 30 days but not more than 60
days before the Redemption Date to each Holder of Notes to be redeemed at its registered address.
Notes in denominations larger than $1,000 may be redeemed in part, but only in whole multiples of
$1,000. On and after the Redemption Date, subject to the deposit with the Paying Agent of funds
sufficient to pay the Redemption Price, interest (including Contingent Interest, if any, and
Additional Interest, if any) shall cease to accrue on Notes or portions of them called for
redemption.

     8. PURCHASE OF NOTES AT OPTION OF HOLDER OR UPON A FUNDAMENTAL CHANGE

          Subject to the terms and conditions of the Indenture, the Company shall become obligated to
repurchase, at the option of the Holder, all or any portion of the Notes held by such Holder on
December 15, 2010, December 15, 2014 and December 15, 2019 in integral multiples of $1,000 at a
repurchase price equal to 100% of the principal amount of those Notes plus accrued and unpaid
interest (including Contingent Interest, if any, and Additional Interest, if any) to, but not
including, such Repurchase Date (the “Repurchase Price”). To exercise such right, a Holder shall
deliver to the Paying Agent a Repurchase Notice containing the information set forth in the
Indenture, at any time from 9:00 a.m., New York City time, on the date that is 20 Business Days
immediately preceding such Repurchase Date until 5:00 p.m., New York City time, on the Business Day
immediately preceding such Repurchase Date, and shall deliver the Securities to the Paying Agent as
set forth in the Indenture. The Repurchase Price for Notes to be so repurchased must be paid in
Cash.

          Subject to the terms and conditions of the Indenture, the Company shall become obligated to
repurchase, at the option of the Holder, all or any portion of the Notes held by such Holder upon a
Fundamental Change in integral multiples of $1,000 at the Fundamental Change Repurchase Price. To
exercise such right, a Holder shall deliver to the Paying Agent a Fundamental Change Repurchase
Notice containing the information set forth in the Indenture, at any time prior to 5:00 p.m., New
York City time, on the Business Day immediately preceding the Fundamental Change Repurchase Date,
and shall deliver the Notes to the Paying Agent as set forth in the Indenture. The Fundamental
Change Repurchase Price must be paid in Cash.

A-8

 

          Holders have the right to withdraw any Repurchase Notice or Fundamental Change Repurchase
Notice by delivering to the Paying Agent a written notice of withdrawal in accordance with the
provisions of the Indenture.

          If Cash sufficient to pay the Repurchase Price or Fundamental Change Repurchase Price, as the
case may be, of all Notes or portions thereof to be repurchased with respect to a Repurchase Date
or Fundamental Change Repurchase Date, as the case may be, has been deposited with the Paying
Agent, at 11:00 a.m., New York City time, on the Business Day immediately following the Repurchase
Date or Fundamental Change Repurchase Date, as the case may be, then, immediately after the
Repurchase Date or Fundamental Change Repurchase Date, as applicable, such Notes will cease to be
outstanding and interest (including Contingent Interest, if any, and Additional Interest, if any)
on such Notes will cease to accrue and the Holder thereof shall have no other rights as such other
than the right to receive the Repurchase Price or Fundamental Change Repurchase Price upon
surrender of such Note.

     9. CONVERSION

          Subject to and in compliance with the provisions of the Indenture (including, without
limitation, the conditions to conversion of this Security set forth in Section 4.1 and Section 4.2
thereof), a Holder is entitled, at such Holder’s option, to convert the Holder’s Note (or any
portion of the principal amount thereof that is $1,000 or an integral multiple $1,000), into Cash
and, if applicable, fully paid and nonassessable of shares of Common Stock at the Conversion Rate
in effect on the date of conversion in accordance with Section 4.2 of the Indenture.

          The Company will notify Holders of any event triggering the right to convert the Notes as
specified above in accordance with the Indenture.

          A Note in respect of which a Holder has delivered a Repurchase Notice or Fundamental Change
Repurchase Notice, as the case may be, exercising the right of such Holder to require the Company
to repurchase such Note may be converted only if such Repurchase Notice or Fundamental Change
Repurchase Notice is withdrawn in accordance with the terms of the Indenture.

          The initial Conversion Rate is 48.1301 shares per $1,000 principal amount of Notes, subject to
adjustment in certain events described in the Indenture.

          To surrender a Note for conversion, a Holder must, in the case of Global Notes, comply with
the Applicable Procedures of the Depositary in effect at that time, and in the case of Certificated
Notes, (1) surrender the Security to the Conversion Agent, (2) complete and manually sign the
conversion notice below (or complete and manually sign a facsimile of such notice) and deliver such
notice to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents and (4)
pay all funds required, if any, relating to interest (including Contingent Interest, if any, and
Additional Interest, if any) and any withholding, transfer or similar tax, if required.

          No fractional share of Common Stock shall be issued upon conversion of any Note. Instead, the
Company shall pay a Cash adjustment as provided in the Indenture.

A-9

 

          No payment or adjustment will be made for accrued and unpaid interest (including Contingent
Interest, if any, and Additional Interest, if any) or dividends on the shares of Common Stock,
except as provided in the Indenture.

          If the Company (i) is a party to a consolidation, merger, statutory share exchange or
combination of the Company with another corporation and as a result of which all the holders of the
outstanding Common Stock shall be entitled to receive stock, securities or other property or assets
(including Cash or a combination thereof) with respect to or in exchange for all of their Common
Stock, (ii) reclassifies or changes the shares of Common Stock or (iii) conveys, transfers or
leases its properties and assets as, or substantially as, an entirety to any person, the right to
convert a Note into Cash and, if applicable, shares of Common Stock shall be changed as provided in
Section 4.4 of the Indenture.

     10. OTHER ARRANGEMENT ON CALL FOR REDEMPTION

          Any Notes called for redemption, unless surrendered for conversion before the close of
business on the Business Day immediately preceding the Redemption Date, may be deemed to be
purchased from the Holders of such Notes at an amount not less than the Redemption Price, together
with accrued interest (including Contingent Interest, if any, and Additional Interest, if any) to,
but not including, the Redemption Date, by one or more investment bankers or other purchasers who
may agree with the Company to purchase such Notes from the Holders, to and to make payment for such
Notes to the Paying Agent in trust for such Holders.

     11. [RESERVED]

     12. DENOMINATIONS, TRANSFER, EXCHANGE

          The Notes are in registered form, without coupons, in denominations of $1,000 and integral
multiples of $1,000. A Holder may register the transfer of or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes or other governmental charges that may be
imposed in relation thereto by law or permitted by the Indenture.

     13. PERSONS DEEMED OWNERS

          The Holder of a Note may be treated as the owner of it for all purposes.

     14. UNCLAIMED MONEY

          If money for the payment of principal or interest (including Contingent Interest, if any, and
Additional Interest, if any) remains unclaimed for two years, the Trustee or Paying Agent will pay
the money back to the Company at its written request, subject to applicable unclaimed property law.
After that, Holders entitled to money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another person.

     15. AMENDMENT, SUPPLEMENT AND WAIVER

A-10

 

          Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in aggregate principal amount of the Notes then
outstanding, and an existing default or Event of Default and its consequence or compliance with any
provision of the Indenture or the Notes may be waived in a particular instance with the consent of
the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without the
consent of or notice to any Holder, the Company and the Trustee may amend or supplement the
Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency or make
any other change that does not adversely affect the rights of any Holder in any material respect.

     16. SUCCESSOR ENTITY

          When a successor corporation assumes all the obligations of its predecessor under the Notes
and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor
corporation (except in certain circumstances specified in the Indenture) shall be released from
those obligations.

     17. DEFAULTS AND REMEDIES

          Under the Indenture, an Event of Default includes: (i) default for 30 days in payment of any
interest (including Contingent Interest, if any, and Additional Interest, if any) on any Notes;
(ii) default in payment of any principal on the Notes when due; (iii) failure by the Company to
satisfy its conversion obligation following the exercise by the Holder of the right to convert all
or a portion of this Note into Cash and, if applicable, shares of Common Stock; (iv) default in the
payment of the Repurchase Price or the Fundamental Change Repurchase Price when due; (v) failure
by the Company for 60 days after notice to it to comply with any of its other agreements contained
in the Indenture or the Notes; (vi) acceleration of the maturity of certain indebtedness of the
Company or a Significant Subsidiary; and (vii) certain events of bankruptcy, insolvency or
reorganization of the Company or any Significant Subsidiary. If an Event of Default (other than as
a result of certain events of bankruptcy, insolvency or reorganization of the Company) occurs and
is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding may declare all unpaid principal to the date of acceleration on the Notes
then outstanding to be due and payable immediately, all as and to the extent provided in the
Indenture. If an Event of Default occurs as a result of certain events of bankruptcy, insolvency
or reorganization of the Company, unpaid principal of the Notes then outstanding shall become due
and payable immediately without any declaration or other act on the part of the Trustee or any
Holder, all as and to the extent provided in the Indenture. Holders may not enforce the Indenture
or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory
to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a
majority in aggregate principal amount of the Notes then outstanding may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing
default (except a default in payment of principal or interest) if it determines that withholding
notice is in their interests. The Company is required to file periodic reports with the Trustee as
to the absence of default.

     18. TRUSTEE DEALINGS WITH THE COMPANY

A-11

 

          U.S. Bank National Association, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from and perform services for the Company or an
Affiliate of the Company, and may otherwise deal with the Company or an Affiliate of the Company,
as if it were not the Trustee.

     19. NO RECOURSE AGAINST OTHERS

          A director, officer, employee or shareholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or the Indenture nor for any claim
based on, in respect of or by reason of such obligations or their creation. The Holder of this
Note by accepting this Note waives and releases all such liability. The waiver and release are
part of the consideration for the issuance of this Note.

     20. AUTHENTICATION

          This Note shall not be valid until the Trustee or an authenticating agent manually signs the
certificate of authentication on the other side of this Note.

     21. ABBREVIATIONS AND DEFINITIONS

          Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and UGMA (= Uniform Gifts to Minors
Act).

          All terms defined in the Indenture and used in this Note but not specifically defined herein
are defined in the Indenture and are used herein as so defined.

     22. INDENTURE TO CONTROL; GOVERNING LAW

          In the case of any conflict between the provisions of this Note and the Indenture, the
provisions of the Indenture shall control. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to principals of conflicts of
law.

          The Company will furnish to any Holder, upon written request and without charge, a copy of the
Indenture. Requests may be made to: IVAX Corporation, 4400 Biscayne Boulevard, Miami, FL 33137,
Attention: Treasurer.

A-12

 

ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     I or we assign and transfer this Note to

(Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

and irrevocably appoint

agent to transfer this Note on the books of the Company. The agent may substitute another to act
for him or her.

	 	 	 
	

	 	Your Signature:
	 
	 	 
	Date:
	 	 
	 

	 	 
	

	 	(Sign exactly as your name appears on the
other side of this Note)
	 
	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 
	By:
	 	 
	 
	 	 

	*  	The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

A-13

 

CONVERSION NOTICE

     To convert this Note, check the box: o

     To convert only part of this Note, state the principal amount to be converted (must be $1,000
or a integral multiple of $1,000): $___.

     If you want the Cash paid to another person or the stock certificate, if any, made out in
another person’s name, fill in the form below:

(Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

	 	 	 
	

	 	Your Signature:
	 
	 	 
	Date:
	 	 
	 

	 	 
	

	 	(Sign exactly as your name appears on the
other side of this Note)
	 
	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 
	By:
	 	 
	 
	 	 

	*  	The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

A-14

 

SCHEDULE OF EXCHANGES OF NOTES3

     The following exchanges, redemptions, repurchases or conversions of a part of this global Note
have been made:

	 	 	 	 	 
	Principal Amount	 	 	 	 
	of this Global Note	 	Authorized	 	 
	Following Such	 	Signatory of	 	Amount of Decrease in
	Decrease Date	 	Securities	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	of this Global Note
	     
	 	 	 	 
	     
	 	 	 	 
	     
	 	 	 	 
	     
	 	 	 	 

	3	 	This schedule should be included only if the
Security is a Global Security.

A-15

 

EXHIBIT B

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF TRANSFER RESTRICTED SECURITIES4

		
	Re: 	1.875% Convertible Senior Notes due 2024 (the “Notes”) of IVAX Corporation

     This certificate relates to $___principal amount of Notes owned in (check applicable box)

     o book-entry or                       o definitive form by ___(the “Transferor”).

     The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Notes.

     In connection with such request and in respect of each such Note, the Transferor does hereby
certify that the Transferor is familiar with transfer restrictions relating to the Notes as
provided in Section 2.12 of the Indenture dated as of December 22, 2004 between IVAX Corporation
and U.S. Bank National Association, as trustee (the “Indenture”), and the transfer of such Note is
being made pursuant to an effective registration statement under the Securities Act of 1933, as
amended (the “Securities Act”) (check applicable box) or the transfer or exchange, as the case may
be, of such Note does not require registration under the Securities Act because (check applicable
box):

     o Such Note is being transferred pursuant to an effective registration statement under the
Securities Act.

     o Such Note is being acquired for the Transferor’s own account, without transfer.

     o Such Note is being transferred to the Company or a Subsidiary (as defined in the Indenture) of
the Company.

     o Such Note is being transferred to a person the Transferor reasonably believes is a “qualified
institutional buyer” (as defined in Rule 144A or any successor provision thereto (“Rule 144A”)
under the Securities Act) that is purchasing for its own account or for the account of a “qualified
institutional buyer,” in each case to whom notice has been given that the transfer is being made in
reliance on such Rule 144A, and in each case in reliance on Rule 144A.

     o Such Note is being transferred pursuant to and in compliance with an exemption from the
registration requirements under the Securities Act in accordance with Rule 144 (or any successor
thereto) (“Rule 144”) under the Securities Act.

     Such Note is being transferred pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act (other than an exemption referred to above) and as

	4	 	This certificate should only be included if
this Security is a Transfer Restricted Security.

 

a result of which such Note will, upon such transfer, cease to be a “restricted security”
within the meaning of Rule 144 under the Securities Act.

     The Transferor acknowledges and agrees that, if the transferee will hold any such Notes in the
form of beneficial interests in a global Note which is a “restricted security” within the meaning
of Rule 144 under the Securities Act, then such transfer can only be made pursuant to Rule 144A
under the Securities Act and such transferee must be a “qualified institutional buyer” (as defined
in Rule 144A).

	 	 	 
	 
	 	 
	Date:
	 	(Insert Name of Transferor)

B-2Form of 1.875% Convertible Senior Notes

 

Exhibit 4.3

IVAX CORPORATION

1.875% CONVERTIBLE SENIOR NOTES DUE 2024

CUSIP NO. 465823 AK 8

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY 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 THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

     THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THIS
SECURITY AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING
ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

     THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY AND
THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION THEREOF MAY BE OFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION
FROM

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REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I)
THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES,
AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

     THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS
SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE
HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS
AGREEMENT.

     FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
THIS SECURITY IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT. IN ADDITION, THIS SECURITY IS SUBJECT
TO REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT INSTRUMENTS. UNDER SUCH REGULATIONS, THE
COMPARABLE YIELD OF THIS SECURITY IS 5.75%.

     THE ISSUER AGREES, AND BY PURCHASING A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITIES EACH
HOLDER OF SECURITIES WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES
(1) TO TREAT THE SECURITIES AS INDEBTEDNESS THAT IS SUBJECT TO TREAS. REG. SEC. 1.1275-4 (THE
“CONTINGENT PAYMENT REGULATIONS”) AND, FOR PURPOSES OF THE CONTINGENT PAYMENT REGULATIONS, TO TREAT
THE FAIR MARKET VALUE OF ANY STOCK BENEFICIALLY RECEIVED BY A BENEFICIAL HOLDER UPON ANY CONVERSION
OF THE SECURITIES AS A CONTINGENT PAYMENT AND (2) TO BE BOUND BY THE ISSUER’S DETERMINATION OF THE
“COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT PAYMENT
REGULATIONS, WITH RESPECT TO THE SECURITIES. THE ISSUER AGREES TO PROVIDE PROMPTLY TO HOLDER OF
SECURITIES, UPON WRITTEN REQUEST, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO
MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE. ANY SUCH WRITTEN REQUEST SHOULD BE SENT
TO THE ISSUER AT THE FOLLOWING ADDRESS: IVAX CORPORATION, 4400 BISCAYNE BOULEVARD, MIAMI, FL 33137,
ATTENTION: TREASURER.

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IVAX CORPORATION

CUSIP No.: 465823 AK 8

1.875% CONVERTIBLE SENIOR NOTES DUE 2024

     IVAX Corporation, a Florida corporation (the “Company,” which term shall include any successor
corporation under the Indenture referred to on the reverse hereof), promises to pay to Cede & Co.,
or registered assigns, the principal sum of Three Hundred Thirty Three Million Dollars
($333,000,000) on December 15, 2024, or such greater or lesser amount as is indicated on the
Schedule of Exchanges of Notes on the other side of this Note to reflect exchanges, redemptions,
purchases and conversions.

	 	 	 
	Interest Payment Dates:

	 	June 15 and December 15, commencing June 15, 2005
	 
	 	 
	Record Dates:

	 	June 1 and December 1

     This Note is convertible as specified on the other side of this Note. Additional provisions
of this Note are set forth on the other side of this Note.

SIGNATURE PAGE FOLLOWS

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

	 	 	 	 	 
	 	IVAX CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

Name:

Title:

Dated: December 22, 2004

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to

in the within-mentioned Indenture.

U.S. Bank National Association, as Trustee

Authorized Signatory

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IVAX CORPORATION

1.875% CONVERTIBLE SENIOR NOTES DUE 2024

1. INTEREST

     The Company promises to pay interest on the principal amount of this Note at the rate of
1.875% per annum. The Company shall pay interest semiannually on June 15 and December 15 of each
year (each, an “Interest Payment Date”), commencing on June 15, 2005. Interest on the Notes shall
accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from December 22, 2004; provided, however, that if there is not an existing default in the payment
of interest and if this Note is authenticated between a record date referred to on the face hereof
and the next succeeding interest payment date, interest shall accrue from such interest payment
date. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     In addition, the Company shall pay contingent interest (“Contingent Interest”) to the Holders
during any six-month period (a “Contingent Interest Period”) from December 15 to June 14 and from
June 15 to December 14, commencing with the six-month period beginning December 15, 2010, if the
average Market Price of a Note for the five Trading Day period ending on the third Trading Day
immediately preceding the relevant Contingent Interest Period equals $1,200 (120% of the principal
amount of a Note) or more.

     Upon a determination by the Company that Holders will be entitled to receive Contingent
Interest which will become payable during a Contingent Interest Period, on or prior to the first
day of such Contingent Interest Period, the Company shall deliver an Officer’s Certificate to the
Trustee setting forth the amount of such Contingent Interest per $1,000 principal amount of Notes
and shall issue a press release through a public medium as is customary for such a press release.

     The amount of Contingent Interest payable per $1,000 principal amount of Notes for any
relevant Contingent Interest Period shall equal 0.29% per annum of the average Market Price of such
Note for the five Trading Day period ending on the third Trading Day immediately preceding the
first day of the relevant six-month period. Contingent Interest, if any, will accrue and be
payable to Holders in the same manner as regular interest. Regular interest will continue to
accrue at the rate of 1.875% per year on the principal amount of the Notes whether or not
Contingent Interest is paid.

     If this Note is redeemed pursuant to Section 6 of this Note or the Holder elects to require
the Company to repurchase this Note pursuant to Section 8 of this Note, on a date that is after the
Regular Record Date and prior to the corresponding Interest Payment Date, interest (including
Contingent Interest, if any, and Additional Interest, if any) accrued and unpaid hereon to, but not
including, the applicable Redemption Date, Repurchase Date or Fundamental Change Repurchase Date
will be paid to the same Holder to whom the Company pays the principal of such Note regardless of
whether such Holder was the registered Holder on the Regular Record Date immediately preceding the
applicable Redemption Date, Repurchase Date or Fundamental Change Repurchase Date.

5

 

     Interest (including Contingent Interest, if any, and Additional Interest, if any) on Notes
converted after the close of business on a Regular Record Date but prior to the opening of business
on the corresponding Interest Payment Date will be paid to the Holder of the Notes on June 1 or
December 1 (whether or not a Business Day), as the case may be, next preceding the corresponding
Interest Payment Date (a “Regular Record Date”) but, upon conversion, the Holder must pay the
Company the interest (including Contingent Interest, if any, and Additional Interest, if any) which
has accrued and will be paid on such Interest Payment Date. No such payment need be made with
respect to Notes which will be converted after a Regular Record Date and prior to the corresponding
Interest Payment Date after being called for redemption by the Company.

     Any reference herein to interest accrued or payable as of any date shall include any
Additional Interest accrued or payable on such date as provided in Paragraph 2 hereof.

2. REGISTRATION RIGHTS AGREEMENT

     The holder of this Note is entitled to the benefits of a Registration Rights Agreement, dated
as of December 22, 2004, among the Company and the Initial Purchaser (the “Registration Rights
Agreement”). Pursuant to the Registration Rights Agreement the Company has agreed for the benefit
of the Holders of the Notes, that (i) it will, at its cost, within 90 days after the closing of the
sale of the Notes (the “Closing”), file a shelf registration statement (the “Shelf Registration
Statement”) with the Securities and Exchange Commission (the “Commission”) with respect to resales
of the Notes and the Common Stock issuable upon conversion thereof, (ii) it will use its reasonable
best efforts to cause such Shelf Registration Statement to be declared effective within 180 days
after the Closing, and (iii) it will use its reasonable best efforts to keep such Shelf
Registration Statement continuously effective under the Securities Act, subject to certain
exceptions specified in the Registration Rights Agreement until the earliest of the dates specified
in the Registration Rights Agreement. As set forth in the Registration Rights Agreement, the
Company will be permitted to suspend use of the prospectus that is part of the Shelf Registration
Statement during certain periods of time and in certain circumstances relating to pending corporate
developments and public filings with the SEC and similar events. If (a) the Company fails to file
the Shelf Registration Statement required by the Registration Rights Agreement on or before the
date specified above for such filing, (b) such Shelf Registration Statement is not declared
effective by the Commission on or prior to the date specified above for such effectiveness, or (c)
the Shelf Registration Statement is declared effective but thereafter ceases to be effective or
useable in connection with resales of Transfer Restricted Securities (as defined in the
Registration Rights Agreement) during the periods specified in the Registration Rights Agreement
(each such event referred to in clauses (a) through (c) above a “Registration Default”), then the
Company will pay Additional Interest to each Holder of Transfer Restricted Securities, with respect
to the first 90-day period immediately following the occurrence of such Registration Default in an
amount equal to an increase in the annual interest rate on the Notes of 0.25% (“Additional
Interest”) and thereafter at 0.5% per annum. All accrued Additional Interest shall be paid by the
Company on each date on which regular interest is payable by wire transfer of immediately available
funds or by federal funds check to the holders of Global Notes and to holders of certificated Notes
registered as such as of the preceding Record Date by the means specified in the Indenture.
Following the cure of all Registration Defaults, the application of Additional Interest will cease.

6

 

3. METHOD OF PAYMENT

     Except as provided herein, the Company shall pay interest (including Contingent Interest, if
any, and Additional Interest, if any) on this Note (except defaulted interest) to the person who is
the Holder of this Note at the close of business on the Regular Record Date, next preceding the
related interest payment date. The Holder must surrender this Note to a Paying Agent to collect
payment of principal. The Company will pay principal and interest (including Contingent Interest,
if any, and Additional Interest, if any) in money of the United States that at the time of payment
is legal tender for payment of public and private debts. The Company may, however, pay principal
and interest (including Contingent Interest, if any, and Additional Interest, if any) in respect of
any Certificated Security by check or wire payable in such money; provided,
however, that a Holder with an aggregate principal amount in excess of $5,000,000 will be
paid by wire transfer in immediately available funds at the election of such Holder if such Holder
has provided wire transfer instructions to the Company at least 10 Business Days prior to the
payment date.

4. PAYING AGENT, REGISTRAR, BID SOLICITATION AGENT AND CONVERSION AGENT

     Initially, U.S. Bank National Association (the “Trustee,” which term shall include any
successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar,
Bid Solicitation Agent and Conversion Agent. The Company may change any Paying Agent, Registrar,
Bid Solicitation Agent or Conversion Agent without notice to the Holder. The Company or any of its
Subsidiaries may, subject to certain limitations set forth in the Indenture, act as Paying Agent or
Registrar.

5. INDENTURE, LIMITATIONS

     This Note is one of a duly authorized issue of Securities of the Company designated as its
1.875% Convertible Senior Notes due 2024 (the “Notes”), issued under an Indenture dated as of
December 22, 2004 (together with any supplemental indentures thereto, the “Indenture”), between the
Company and the Trustee. The terms of this Note include those stated in the Indenture and those
required by or made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended, as in effect on the date of the Indenture. This Note is subject to all such terms, and
the Holder of this Note is referred to the Indenture and said Act for a statement of them. The
Notes are senior unsecured obligations of the Company limited to $333,000,000 aggregate principal
amount. The Indenture does not limit other debt of the Company, secured or unsecured.

6. OPTIONAL REDEMPTION

     The Notes are subject to redemption, at any time on or after December 15, 2010, as a whole or
from time to time in part, at the election of the Company. The Redemption Price is 100% of the
principal amount together with accrued and unpaid interest (including Contingent Interest, if any,
and Additional Interest, if any) up to but not including the Redemption Date; provided,
that if the Redemption Date falls after an interest payment record date and on or before an
interest payment date, then the interest (including Contingent Interest, if any, and Additional

7

 

Interest, if any) will be payable to the Holders in whose names the Notes are registered at
the close of business on the relevant interest payment record date.

     No sinking fund is provided for the Notes.

7. NOTICE OF REDEMPTION

     Notice of redemption will be mailed by first-class mail at least 30 days but not more than 60
days before the Redemption Date to each Holder of Notes to be redeemed at its registered address.
Notes in denominations larger than $1,000 may be redeemed in part, but only in whole multiples of
$1,000. On and after the Redemption Date, subject to the deposit with the Paying Agent of funds
sufficient to pay the Redemption Price, interest (including Contingent Interest, if any, and
Additional Interest, if any) shall cease to accrue on Notes or portions of them called for
redemption.

8. PURCHASE OF NOTES AT OPTION OF HOLDER OR UPON A FUNDAMENTAL CHANGE

     Subject to the terms and conditions of the Indenture, the Company shall become obligated to
repurchase, at the option of the Holder, all or any portion of the Notes held by such Holder on
December 15, 2010, December 15, 2014 and December 15, 2019 in integral multiples of $1,000 at a
repurchase price equal to 100% of the principal amount of those Notes plus accrued and unpaid
interest (including Contingent Interest, if any, and Additional Interest, if any) to, but not
including, such Repurchase Date (the “Repurchase Price”). To exercise such right, a Holder shall
deliver to the Paying Agent a Repurchase Notice containing the information set forth in the
Indenture, at any time from 9:00 a.m., New York City time, on the date that is 20 Business Days
immediately preceding such Repurchase Date until 5:00 p.m., New York City time, on the Business Day
immediately preceding such Repurchase Date, and shall deliver the Securities to the Paying Agent as
set forth in the Indenture. The Repurchase Price for Notes to be so repurchased must be paid in
Cash.

     Subject to the terms and conditions of the Indenture, the Company shall become obligated to
repurchase, at the option of the Holder, all or any portion of the Notes held by such Holder upon a
Fundamental Change in integral multiples of $1,000 at the Fundamental Change Repurchase Price. To
exercise such right, a Holder shall deliver to the Paying Agent a Fundamental Change Repurchase
Notice containing the information set forth in the Indenture, at any time prior to 5:00 p.m., New
York City time, on the Business Day immediately preceding the Fundamental Change Repurchase Date,
and shall deliver the Notes to the Paying Agent as set forth in the Indenture. The Fundamental
Change Repurchase Price must be paid in Cash.

     Holders have the right to withdraw any Repurchase Notice or Fundamental Change Repurchase
Notice by delivering to the Paying Agent a written notice of withdrawal in accordance with the
provisions of the Indenture.

     If Cash sufficient to pay the Repurchase Price or Fundamental Change Repurchase Price, as the
case may be, of all Notes or portions thereof to be repurchased with respect to a Repurchase Date
or Fundamental Change Repurchase Date, as the case may be, has been deposited with the Paying
Agent, at 11:00 a.m., New York City time, on the Business Day

8

 

immediately following the Repurchase Date or Fundamental Change Repurchase Date, as the case
may be, then, immediately after the Repurchase Date or Fundamental Change Repurchase Date, as
applicable, such Notes will cease to be outstanding and interest (including Contingent Interest, if
any, and Additional Interest, if any) on such Notes will cease to accrue and the Holder thereof
shall have no other rights as such other than the right to receive the Repurchase Price or
Fundamental Change Repurchase Price upon surrender of such Note.

9. CONVERSION

     Subject to and in compliance with the provisions of the Indenture (including, without
limitation, the conditions to conversion of this Security set forth in Section 4.1 and Section 4.2
thereof), a Holder is entitled, at such Holder’s option, to convert the Holder’s Note (or any
portion of the principal amount thereof that is $1,000 or an integral multiple $1,000), into Cash
and, if applicable, fully paid and nonassessable of shares of Common Stock at the Conversion Rate
in effect on the date of conversion in accordance with Section 4.2 of the Indenture.

     The Company will notify Holders of any event triggering the right to convert the Notes as
specified above in accordance with the Indenture.

     A Note in respect of which a Holder has delivered a Repurchase Notice or Fundamental Change
Repurchase Notice, as the case may be, exercising the right of such Holder to require the Company
to repurchase such Note may be converted only if such Repurchase Notice or Fundamental Change
Repurchase Notice is withdrawn in accordance with the terms of the Indenture.

     The initial Conversion Rate is 48.1301 shares per $1,000 principal amount of Notes, subject to
adjustment in certain events described in the Indenture.

     To surrender a Note for conversion, a Holder must, in the case of Global Notes, comply with
the Applicable Procedures of the Depositary in effect at that time, and in the case of Certificated
Notes, (1) surrender the Security to the Conversion Agent, (2) complete and manually sign the
conversion notice below (or complete and manually sign a facsimile of such notice) and deliver such
notice to the Conversion Agent, (3) furnish appropriate endorsements and transfer documents and (4)
pay all funds required, if any, relating to interest (including Contingent Interest, if any, and
Additional Interest, if any) and any withholding, transfer or similar tax, if required.

     No fractional share of Common Stock shall be issued upon conversion of any Note. Instead, the
Company shall pay a Cash adjustment as provided in the Indenture.

     No payment or adjustment will be made for accrued and unpaid interest (including Contingent
Interest, if any, and Additional Interest, if any) or dividends on the shares of Common Stock,
except as provided in the Indenture.

     If the Company (i) is a party to a consolidation, merger, statutory share exchange or
combination of the Company with another corporation and as a result of which all the holders of the
outstanding Common Stock shall be entitled to receive stock, securities or other property or assets
(including Cash or a combination thereof) with respect to or in exchange for all of their

9

 

Common Stock, (ii) reclassifies or changes the shares of Common Stock or (iii) conveys,
transfers or leases its properties and assets as, or substantially as, an entirety to any person,
the right to convert a Note into Cash and, if applicable, shares of Common Stock shall be changed
as provided in Section 4.4 of the Indenture.

10. OTHER ARRANGEMENT ON CALL FOR REDEMPTION

     Any Notes called for redemption, unless surrendered for conversion before the close of
business on the Business Day immediately preceding the Redemption Date, may be deemed to be
purchased from the Holders of such Notes at an amount not less than the Redemption Price, together
with accrued interest (including Contingent Interest, if any, and Additional Interest, if any) to,
but not including, the Redemption Date, by one or more investment bankers or other purchasers who
may agree with the Company to purchase such Notes from the Holders, to and to make payment for such
Notes to the Paying Agent in trust for such Holders.

11. [RESERVED]

12. DENOMINATIONS, TRANSFER, EXCHANGE

     The Notes are in registered form, without coupons, in denominations of $1,000 and integral
multiples of $1,000. A Holder may register the transfer of or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes or other governmental charges that may be
imposed in relation thereto by law or permitted by the Indenture.

13. PERSONS DEEMED OWNERS

     The Holder of a Note may be treated as the owner of it for all purposes.

14. UNCLAIMED MONEY

     If money for the payment of principal or interest (including Contingent Interest, if any, and
Additional Interest, if any) remains unclaimed for two years, the Trustee or Paying Agent will pay
the money back to the Company at its written request, subject to applicable unclaimed property law.
After that, Holders entitled to money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another person.

15. AMENDMENT, SUPPLEMENT AND WAIVER

     Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in aggregate principal amount of the Notes then
outstanding, and an existing default or Event of Default and its consequence or compliance with any
provision of the Indenture or the Notes may be waived in a particular instance with the consent of
the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without the
consent of or notice to any Holder, the Company and the Trustee may amend or supplement the
Indenture or the Notes to, among other things, cure

10

 

     any ambiguity, defect or inconsistency or make any other change that does not adversely affect
the rights of any Holder in any material respect.

16. SUCCESSOR ENTITY

     When a successor corporation assumes all the obligations of its predecessor under the Notes
and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor
corporation (except in certain circumstances specified in the Indenture) shall be released from
those obligations.

17. DEFAULTS AND REMEDIES

     Under the Indenture, an Event of Default includes: (i) default for 30 days in payment of any
interest (including Contingent Interest, if any, and Additional Interest, if any) on any Notes;
(ii) default in payment of any principal on the Notes when due; (iii) failure by the Company to
satisfy its conversion obligation following the exercise by the Holder of the right to convert all
or a portion of this Note into Cash and, if applicable, shares of Common Stock; (iv) default in the
payment of the Repurchase Price or the Fundamental Change Repurchase Price when due; (v) failure
by the Company for 60 days after notice to it to comply with any of its other agreements contained
in the Indenture or the Notes; (vi) acceleration of the maturity of certain indebtedness of the
Company or a Significant Subsidiary; and (vii) certain events of bankruptcy, insolvency or
reorganization of the Company or any Significant Subsidiary. If an Event of Default (other than as
a result of certain events of bankruptcy, insolvency or reorganization of the Company) occurs and
is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding may declare all unpaid principal to the date of acceleration on the Notes
then outstanding to be due and payable immediately, all as and to the extent provided in the
Indenture. If an Event of Default occurs as a result of certain events of bankruptcy, insolvency
or reorganization of the Company, unpaid principal of the Notes then outstanding shall become due
and payable immediately without any declaration or other act on the part of the Trustee or any
Holder, all as and to the extent provided in the Indenture. Holders may not enforce the Indenture
or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory
to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a
majority in aggregate principal amount of the Notes then outstanding may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing
default (except a default in payment of principal or interest) if it determines that withholding
notice is in their interests. The Company is required to file periodic reports with the Trustee as
to the absence of default.

18. TRUSTEE DEALINGS WITH THE COMPANY

     U.S. Bank National Association, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from and perform services for the Company or an
Affiliate of the Company, and may otherwise deal with the Company or an Affiliate of the Company,
as if it were not the Trustee.

19. NO RECOURSE AGAINST OTHERS

11

 

     A director, officer, employee or shareholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or the Indenture nor for any claim
based on, in respect of or by reason of such obligations or their creation. The Holder of this
Note by accepting this Note waives and releases all such liability. The waiver and release are
part of the consideration for the issuance of this Note.

20. AUTHENTICATION

     This Note shall not be valid until the Trustee or an authenticating agent manually signs the
certificate of authentication on the other side of this Note.

21. ABBREVIATIONS AND DEFINITIONS

     Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and UGMA (= Uniform Gifts to Minors
Act).

     All terms defined in the Indenture and used in this Note but not specifically defined herein
are defined in the Indenture and are used herein as so defined.

22. INDENTURE TO CONTROL; GOVERNING LAW

     In the case of any conflict between the provisions of this Note and the Indenture, the
provisions of the Indenture shall control. This Note shall be governed by, and construed in
accordance with, the laws of the State of New York, without regard to principals of conflicts of
law.

     The Company will furnish to any Holder, upon written request and without charge, a copy of the
Indenture. Requests may be made to: IVAX Corporation, 4400 Biscayne Boulevard, Miami, FL 33137,
Attention: Treasurer.

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ASSIGNMENT FORM

     To assign this Note, fill in the form below:

     I or we assign and transfer this Note to

(Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

and irrevocably appoint

agent to transfer this Note on the books of the Company. The agent may substitute another to act
for him or her.

	 	 	 
	

	 	Your Signature:
	 
	 	 
	Date:
	 	 
	 

	 	 
	

	 	(Sign exactly as your name appears on the
other side of this Note)
	 
	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 
	By:
	 	 
	 	 	 

	*  	The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

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CONVERSION NOTICE

     To convert this Note, check the box: o

     To convert only part of this Note, state the principal amount to be converted (must be $1,000
or a integral multiple of $1,000): $___.

     If you want the Cash paid to another person or the stock certificate, if any, made out in
another person’s name, fill in the form below:

(Insert assignee’s soc. sec. or tax I.D. no.)

(Print or type assignee’s name, address and zip code)

	 	 	 
	

	 	Your Signature:
	 
	 	 
	Date:
	 	 
	 

	 	 
	

	 	(Sign exactly as your name appears on the
other side of this Note)
	 
	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 
	By:
	 	 
	 	 	 

	*  	The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

14

 

SCHEDULE OF EXCHANGES OF NOTES

     The following exchanges, redemptions, repurchases or conversions of a part of this global Note
have been made:

	 	 	 	 	 
	Principal Amount	 	 	 	 
	of this Global Note	 	Authorized	 	 
	Following Such	 	Signatory of	 	Amount of Decrease in
	Decrease Date	 	Securities	 	Principal Amount
	of Exchange (or Increase)	 	Custodian	 	of this Global Note
	     
	 	 	 	 
	     
	 	 	 	 
	     
	 	 	 	 
	     
	 	 	 	 

15

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