Document:

exv4w15

 

    EXHIBIT
    4.15

 

    NOTICE OF
    GUARANTEED DELIVERY

    for Tender of

    4.000% Senior Notes Due
    2012

    of Berkshire Hathaway Finance
    Corporation,

    unconditionally guaranteed by
    Berkshire Hathaway Inc.

 

    As set forth in the Exchange Offer (as defined below), this
    Notice of Guaranteed Delivery (or a facsimile hereof) or one
    substantially equivalent hereto or the electronic form used by
    The Depository Trust Company (“DTC”) for this purpose
    must be used to accept the Exchange Offer of certificates for
    4.000% Senior Notes Due 2012 (the “Outstanding Notes”)
    of Berkshire Hathaway Finance Corporation, a Delaware
    corporation (the “Company”), not immediately available
    to the registered holder of such Outstanding Notes, or if a
    participant in DTC is unable to complete the procedures for
    book-entry transfer on a timely basis of Outstanding Notes to
    the account maintained by J.P. Morgan Trust Company,
    National Association (the “Exchange Agent”) at DTC,
    prior to 5:00 p.m., New York City time, on
    [          ,
    2009], unless extended (the “Expiration Date”). This
    Notice of Guaranteed Delivery (or a facsimile hereof) or one
    substantially equivalent hereto may be delivered by mail
    (registered or certified mail is recommended), by facsimile
    transmission, by hand or overnight carrier to the Exchange
    Agent. See “The Exchange Offer — Procedures for
    Tendering Outstanding Notes” in the Prospectus (as defined
    below). Capitalized terms used herein and not defined herein
    have the meanings assigned to them in the Exchange Offer.

 

    The Exchange Agent for the Exchange Offer is:

 

    The Bank of New York Mellon Trust

    Corporate Trust Dept. — Reorganization Unit

    101 Barclay Street, 7E

    New York, NY 10286

    Phone: 212-815-3738

    Fax: 212-298-1915

 

    Delivery of this Notice of Guaranteed Delivery to an address
    other than as set forth above or transmission of this Notice of
    Guaranteed Delivery via a facsimile number other than the number
    listed above will not constitute a valid delivery.

 

    This Notice of Guaranteed Delivery is not to be used to
    guarantee signatures. If a signature on a Letter of Transmittal
    is required to be guaranteed by an Eligible Institution (as
    defined therein) under the instructions thereto, such signature
    guarantee must appear in the applicable space provided in the
    signature box on the Letter of Transmittal.

 

 

    Ladies and Gentlemen:

 

    The undersigned hereby tenders to Berkshire Hathaway Finance
    Corporation, a Delaware corporation (the “Company”),
    the aggregate principal amount of Outstanding Notes indicated
    below pursuant to the guaranteed delivery procedures and upon
    the terms and subject to the conditions set forth in the
    Prospectus dated
    [               ,
    2009] (as the same may be amended or supplemented from time to
    time, the “Prospectus”) and in the related Letter of
    Transmittal (which together with the Prospectus constitute the
    “Exchange Offer”), receipt of which is hereby
    acknowledged.

 

    The undersigned hereby represents, warrants and agrees that the
    undersigned has full power and authority to tender, exchange,
    sell, assign, and transfer the tendered Outstanding Notes and
    that the Company will acquire good, marketable and unencumbered
    title thereto, free and clear of all liens, restrictions,
    charges and encumbrances when the tendered Outstanding Notes are
    acquired by the Company as contemplated herein, and the tendered
    Outstanding Notes are not subject to any adverse claims or
    proxies. The undersigned warrants and agrees that the
    undersigned and each Beneficial Owner will, upon request,
    execute and deliver any additional documents deemed by the
    Company or the Exchange Agent to be necessary or desirable to
    complete the tender, exchange, sale, assignment and transfer of
    the tendered Outstanding Notes, and that the undersigned will
    comply with its obligations under the Registration Rights
    Agreement. The undersigned has read and agrees to all of the
    terms of the Exchange Offer.

 

    BY TENDERING OUTSTANDING NOTES AND EXECUTING THIS NOTICE OF
    GUARANTEED DELIVERY, THE UNDERSIGNED HEREBY REPRESENTS AND
    WARRANTS THAT (I) NEITHER THE UNDERSIGNED NOR ANY
    BENEFICIAL OWNER(S) IS AN “AFFILIATE” OF THE COMPANY
    AS DEFINED IN RULE 405 UNDER OF THE SECURITIES ACT,
    (II) ANY EXCHANGE NOTES TO BE RECEIVED BY THE
    UNDERSIGNED AND ANY BENEFICIAL OWNER(S) ARE BEING ACQUIRED BY
    THE UNDERSIGNED AND ANY BENEFICIAL OWNER(S) IN THE ORDINARY
    COURSE OF BUSINESS OF THE UNDERSIGNED AND ANY BENEFICIAL
    OWNER(S), (III) THE UNDERSIGNED AND EACH BENEFICIAL OWNER
    HAVE NO ARRANGEMENT OR UNDERSTANDING WITH ANY PERSON TO
    PARTICIPATE IN A DISTRIBUTION (WITHIN THE MEANING OF THE
    SECURITIES ACT) OF EXCHANGE NOTES TO BE RECEIVED IN THE
    EXCHANGE OFFER, (IV) THE UNDERSIGNED OR ANY SUCH BENEFICIAL
    OWNER IS NOT ENGAGED IN, AND DOES NOT INTEND TO ENGAGE IN, A
    DISTRIBUTION (WITHIN THE MEANING OF THE SECURITIES ACT) OF SUCH
    EXCHANGE NOTES AND (V) THE UNDERSIGNED IS NOT ACTING ON
    BEHALF OF ANY PERSON OR ENTITY THAT COULD NOT TRUTHFULLY MAKE
    THESE STATEMENTS. IF THE UNDERSIGNED IS A BROKER-DEALER, IT
    ACKNOWLEDGES THAT IT WILL DELIVER A COPY OF THE PROSPECTUS IN
    CONNECTION WITH ANY RESALE OF THE EXCHANGE NOTES.

 

    All questions as to the form of documents, validity, eligibility
    (including time of receipt) and acceptance for exchange of
    tendered Outstanding Notes will be determined by the Company, in
    its sole discretion, whose determination shall be final and
    binding on all parties. The Company reserves the absolute right,
    in its sole and absolute discretion, to reject any and all
    tenders determined by the Company not to be in proper form or
    the acceptance of which, or exchange for, may, in the view of
    the Company or its counsel, be unlawful.

 

    All authority herein conferred or agreed to be conferred shall
    survive the death or incapacity of the undersigned and every
    obligation of the undersigned hereunder shall be binding upon
    the heirs, executors, administrators, personal representatives,
    trustees in bankruptcy, legal representatives, successors and
    assigns of the undersigned.

    

    2

 

 

		
	    Name(s) of
    Registered
    Holder(s): 	
    

 

    Please Print

 

		
	    Address(es): 	
    

 

 

		
	    Area Code and Tel.
    No(s): 	
    

 

			
	 	    x 
	
    

	 
	 	    x 
	
    

    Signature(s) of Owner(s) or
    Authorized Signatory

 

    Must be signed by the registered holder(s) of the tendered
    Outstanding Notes as their name(s) appear(s) on certificates for
    such tendered Outstanding Notes, or on a security position
    listing, or by person(s) authorized to become registered
    holder(s) by endorsement and documents transmitted with this
    Notice of Guaranteed Delivery. If signature is by a trustee,
    executor, administrator, guardian,
    attorney-in-fact,
    officer or other person acting in a fiduciary or representative
    capacity, such person must set forth his or her full title below.

 

	 	 	 	 	 	 	 
	
 
	
 
	
 
	
    Aggregate Principal

    
	
 
	
 
	
 

	
    Certificate No(s)

    
	
 
	
 
	
    Amount Represented

    
	
 
	
 
	
    Aggregate Principal

    

	
    (if available)
	
 
	
 
	
    by Certificate
	
 
	
 
	
    Amount Tendered

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

         If Outstanding Notes will be
    delivered by book-entry transfer to The Depository Trust
    Company, provide the following information:

 

		
	    Signature: 	
    

 

		
	    Account Number: 	
    

 

		
	    Date: 	
    

 

    THE
    GUARANTEE ON THE REVERSE SIDE MUST BE COMPLETED

    

    3

 

 

    GUARANTEE

    (Not to be used for signature guarantee)

 

    The undersigned, a firm or other entity identified in
    Rule 17Ad-15 under the Securities Exchange Act of 1934, as
    amended, as an “eligible guarantor institution,”
    including (as such terms are defined therein): (i) a bank;
    (ii) a broker, dealer, municipal securities broker,
    municipal securities dealer, government securities broker,
    government securities dealer; (iii) a credit union;
    (iv) a national securities exchange, registered securities
    association or clearing agency; or (v) a savings
    association that is a participant in a Securities Transfer
    Association recognized program (each of the foregoing being
    referred to as an “Eligible Institution”), hereby
    guarantees delivery to the Exchange Agent, at one of its
    addresses set forth above, either certificates for the
    Outstanding Notes tendered hereby, in proper form for transfer,
    or confirmation of the book-entry transfer of such Outstanding
    Notes to the Exchange Agent’s account at The Depository
    Trust Company (“DTC”), pursuant to the procedures for
    book-entry transfer set forth in the Prospectus, in either case
    together with one or more properly completed and duly executed
    Letter(s) of Transmittal (or facsimile thereof or an
    Agent’s Message in lieu thereof) and any other documents
    required by the Letter of Transmittal, all within three
    (3) business days after the date of execution of this
    Notice of Guaranteed Delivery.

 

 

    The undersigned acknowledges that it must communicate the
    guarantee to the Exchange Agent and must deliver the Letter of
    Transmittal and certificates for the Outstanding Notes tendered
    hereby to the Exchange Agent within the time period shown hereon
    and that failure to do so could result in a financial loss to
    the undersigned.

 

	 	 	 
	
 
	
 
	
 

	

    Firm

	
 
	
    Authorized Signature

	
 
	
 
	
 

	
 
	
 
	

    Name: 

    

	
 
	
 
	
 

	

    Address

	
 
	
    (Please Type or Print)

	
 
	
 
	
 

	
 
	
 
	

    Title: 

    

	
 
	
 
	
 

	

    Zip Code

	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
    Dated:
    ­
    ­
    , 2009

 

		
	    Area Code and Tel. No.:	
    

 

    DO NOT SEND CERTIFICATES FOR OUTSTANDING NOTES WITH THIS
    NOTICE OF GUARANTEED DELIVERY. ACTUAL SURRENDER OF OUTSTANDING
    NOTES MUST BE MADE PURSUANT TO, AND BE ACCOMPANIED BY, A
    PROPERLY COMPLETED AND DULY EXECUTED LETTER OF TRANSMITTAL AND
    ANY OTHER REQUIRED DOCUMENT.

    

    4exv4w2

EXHIBIT 4.2

HYTHIAM, INC.

and

[TRUSTEE]

as Trustee

 

INDENTURE

Dated as of [•], 2009

 

[•] Principal Amount

[•]% CONVERTIBLE SENIOR NOTES DUE 2014

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	I. DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	1.01 Definitions
	 	 	1	 
	1.02 Other Definitions
	 	 	6	 
	1.03
	 	 	6	 
	1.04 Incorporation by Reference of Trust Indenture Act
	 	 	7	 
	1.05 Rules of Construction
	 	 	8	 
	 
	 	 	 	 
	II. THE SECURITIES
	 	 	8	 
	 
	 	 	 	 
	2.01 Form and Dating
	 	 	8	 
	2.02 Execution and Authentication
	 	 	9	 
	2.03 Registrar, Paying Agent and Conversion Agent
	 	 	10	 
	2.04 Paying Agent to Hold Money in Trust
	 	 	10	 
	2.05 Securityholder Lists
	 	 	10	 
	2.06 Transfer and Exchange
	 	 	10	 
	2.07 Replacement Securities
	 	 	11	 
	2.08 Outstanding Securities
	 	 	11	 
	2.09 Securities Held by the Company or an Affiliate
	 	 	12	 
	2.10 Temporary Securities
	 	 	12	 
	2.11 Cancellation
	 	 	13	 
	2.12 Defaulted Interest
	 	 	13	 
	2.13 CUSIP Numbers
	 	 	13	 
	2.14 Deposit of Moneys
	 	 	13	 
	2.15 Book-Entry Provisions for Global Securities
	 	 	14	 
	2.16 Special Transfer Provisions
	 	 	14	 
	2.17 Restrictive Legends
	 	 	15	 
	2.18 Ranking
	 	 	16	 
	 
	 	 	 	 
	III. REDEMPTION AND REPURCHASE
	 	 	16	 
	 
	 	 	 	 
	3.01 No Right of Redemption at the Option of the Company
	 	 	16	 
	3.02 Repurchase at Option of Holder Upon a Fundamental Change
	 	 	16	 
	 
	 	 	 	 
	IV. COVENANTS
	 	 	22	 
	 
	 	 	 	 
	4.01 Payment of Securities
	 	 	22	 
	4.02 Maintenance of Office or Agency
	 	 	22	 
	4.03 Rule 144A Information and Annual Reports
	 	 	23	 
	4.04 Compliance Certificate
	 	 	23	 
	4.05 Stay, Extension and Usury Laws
	 	 	23	 
	4.06 Corporate Existence
	 	 	24	 
	4.07 Notice of Default
	 	 	24	 
	4.08 Further Instruments and Acts
	 	 	24	 
	4.09 Additional Interest Notice
	 	 	24	 

- i -

 

	 	 	 	 	 
	 	 	Page	 
	V. SUCCESSORS
	 	 	25	 
	 
	 	 	 	 
	5.01 When
Company May Merge, etc.
	 	 	25	 
	5.02 Successor Substituted
	 	 	25	 
	 
	 	 	 	 
	VI. DEFAULTS AND REMEDIES
	 	 	25	 
	 
	 	 	 	 
	6.01 Events of Default
	 	 	25	 
	6.02 Acceleration
	 	 	27	 
	6.03 Other Remedies
	 	 	28	 
	6.04 Waiver of Past Defaults
	 	 	28	 
	6.05 Control by Majority
	 	 	28	 
	6.06 Limitation on Suits
	 	 	29	 
	6.07 Rights of Holders to Receive Payment
	 	 	29	 
	6.08 Collection Suit by Trustee
	 	 	29	 
	6.09 Trustee May File Proofs of Claim
	 	 	29	 
	6.10 Priorities
	 	 	30	 
	6.11 Undertaking for Costs
	 	 	30	 
	 
	 	 	 	 
	VII. TRUSTEE
	 	 	31	 
	 
	 	 	 	 
	7.01 Duties of Trustee
	 	 	31	 
	7.02 Rights of Trustee
	 	 	31	 
	7.03 Individual Rights of Trustee
	 	 	33	 
	7.04 Trustee’s Disclaimer
	 	 	33	 
	7.05 Notice of Defaults
	 	 	33	 
	7.06 Reports by Trustee to Holders
	 	 	33	 
	7.07 Compensation and Indemnity
	 	 	33	 
	7.08 Replacement of Trustee
	 	 	34	 
	7.09
Successor Trustee by Merger, etc.
	 	 	35	 
	7.10 Eligibility; Disqualification
	 	 	35	 
	7.11 Preferential Collection of Claims Against Company
	 	 	35	 
	 
	 	 	 	 
	VIII. DISCHARGE OF INDENTURE
	 	 	35	 
	 
	 	 	 	 
	8.01 Termination of the Obligations of the Company
	 	 	35	 
	8.02 Application of Trust Money
	 	 	36	 
	8.03 Repayment to Company
	 	 	36	 
	8.04 Reinstatement
	 	 	37	 
	 
	 	 	 	 
	IX. AMENDMENTS
	 	 	37	 
	 
	 	 	 	 
	9.01 Without Consent of Holders
	 	 	37	 
	9.02 With Consent of Holders
	 	 	37	 
	9.03 Compliance with Trust Indenture Act
	 	 	39	 
	9.04 Revocation and Effect of Consents
	 	 	39	 
	9.05 Notation on or Exchange of Securities
	 	 	39	 
	9.06 Trustee Protected
	 	 	39	 

- ii -

 

	 	 	 	 	 
	 	 	Page	 
	9.07 Effect of Supplemental Indentures
	 	 	40	 
	 
	 	 	 	 
	X. CONVERSION
	 	 	40	 
	 
	 	 	 	 
	10.01 Conversion Privilege; Restrictive Legends
	 	 	40	 
	10.02 Conversion Procedure
	 	 	40	 
	10.03 Fractional Shares
	 	 	43	 
	10.04 Taxes on Conversion
	 	 	44	 
	10.05 Company to Provide Stock
	 	 	44	 
	10.06 Adjustment of Conversion Rate
	 	 	45	 
	10.07 No Adjustment
	 	 	50	 
	10.08 Other Adjustments
	 	 	51	 
	10.09 Adjustments for Tax Purposes
	 	 	51	 
	10.10 Notice of Adjustment
	 	 	51	 
	10.11 Notice of Certain Transactions
	 	 	51	 
	10.12 Effect of Reclassifications, Consolidations, Mergers,
Binding Share Exchanges or Sales on Conversion Privilege
	 	 	52	 
	10.13 Trustee’s Disclaimer
	 	 	54	 
	10.14 Rights Distributions Pursuant to Stockholders’ Rights Plans
	 	 	54	 
	10.15 Adjustment to the Conversion Rate on November 15, 2008
	 	 	54	 
	10.16 Increased Conversion Rate Applicable to Certain Notes
Surrendered in Connection with Make-Whole Fundamental Changes
	 	 	55	 
	 
	 	 	 	 
	XI. MISCELLANEOUS
	 	 	58	 
	 
	 	 	 	 
	11.01 Trust Indenture Act Controls
	 	 	58	 
	11.02 Notices
	 	 	58	 
	11.03 Communication by Holders with Other Holders
	 	 	59	 
	11.04 Certificate and Opinion as to Conditions Precedent
	 	 	60	 
	11.05 Statements Required in Certificate or Opinion
	 	 	60	 
	11.06 Rules by Trustee and Agents
	 	 	60	 
	11.07 Legal Holidays
	 	 	60	 
	11.08 Duplicate Originals
	 	 	61	 
	11.09 Governing Law
	 	 	61	 
	11.10 No Adverse Interpretation of Other Agreements
	 	 	61	 
	11.11 Successors
	 	 	61	 
	11.12 Separability
	 	 	61	 
	11.13 Table
of Contents, Headings, etc.
	 	 	61	 
	11.14 Calculations in Respect of the Securities
	 	 	61	 

	 	 	 	 	 
	Exhibit A

	 	–
	 	Form of Global Security
	Exhibit B-1

	 	–
	 	Form of Private Placement Legend
	Exhibit B-2

	 	–
	 	Form of Legend for Global Security
	Exhibit C

	 	–
	 	Form of Notice of Transfer Pursuant to Registration Statement

- iii -

 

     INDENTURE, dated as of [•], 2009, between Hythiam, Inc., a Delaware corporation (the
“Company”), and [TRUSTEE], as trustee (the “Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s [•]% Convertible Senior Notes due 2014 (the “Securities”).

DEFINITIONS AND INCORPORATION BY REFERENCE

Definitions.

     The term “additional interest” has the meaning ascribed to it in the Registration Rights
Agreement.

     “Affiliate” means any person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company. For this purpose, “control” shall mean the
power to direct the management and policies of a person through the ownership of securities, by
contract or otherwise.

     “Asset Sale Make-Whole Fundamental Change” means a sale, transfer, lease, conveyance or other
disposition of all or substantially all of the property or assets of the Company, or of the Company
and the Subsidiaries on a consolidated basis, 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.

     “Board of Directors” means the Board of Directors of the Company or any committee thereof
authorized to act for it hereunder.

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

     “Capital Stock” of any Person means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of such Person and all warrants or options to
acquire such capital stock.

     “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.

     “Closing Sale Price” means the price of a share of Common Stock on the relevant date,
determined (a) on the basis of the closing sale price per share of Common Stock (or if no closing
sale price per share of Common Stock is reported, the average of the bid and ask prices per share
of Common Stock or, if more than one in either case, the average of the average bid and the average
ask prices per share of Common Stock) on such date on the U.S. principal national securities
exchange on which the Common Stock is listed; or (b) if the Common Stock is not listed on a U.S.
national securities exchange, as reported by National Quotation Bureau,

- 1 -

 

Incorporated or a similar organization. In the absence of a quotation, the Closing Sale Price
shall be such price as the Company shall reasonably determine on the basis of such quotations as
most accurately reflecting the price that a fully informed buyer, acting on his own accord, would
pay to a fully informed seller, acting on his own accord in an arms-length transaction, for a share
of such Common Stock.

     “Common Stock” means the common stock, $0.0001 par value per share, of the Company, or such
other Capital Stock of the Company into which the Company’s common stock is reclassified or
changed.

     “Common Stock Change Make-Whole Fundamental Change” means any transaction or series of related
transactions (other than a Listed Stock Business Combination), in connection with which (whether by
means of an exchange offer, liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization, asset sale, lease of assets or otherwise) the Common Stock is
exchanged for, converted into, acquired for or constitutes solely the right to receive other
securities, other property, assets or Cash.

     “Company” means the party named as such above until a successor replaces it pursuant to the
applicable provision hereof and thereafter means the successor. The foregoing sentence shall
likewise apply to any such successor or subsequent successor.

     “Company Order” or “Company Request” means a written request or order signed on behalf of the
Company by any Officer and delivered to the Trustee.

     “Conversion Price” means, as of any date of determination, the dollar amount derived by
dividing one thousand dollars ($1,000) by the Conversion Rate in effect on such date.

     “Conversion Rate” means[•] shares of Common Stock issuable upon conversion of a Security per
$1,000 principal amount, subject to adjustment as provided in Article X.

     “Conversion Value” means, for every $1,000 principal amount of a Note being converted, an
amount equal to the sum of the Daily Conversion Values for each of the 30 Trading Days during the
Settlement Period.

     “Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in
Section 11.02 or such other address as the Trustee may give notice of to the Company.

     “Daily Conversion Value” means, for any Trading Day during the Settlement Period,
1/30th of: (a) the Conversion Rate in effect on that Trading Day multiplied by the VWAP
of the Common Stock on that Trading Day.

     “Daily Settlement Amount” means, for each of the 30 Trading Days during the Settlement Period:
(1) an amount of Cash equal to the lesser of (x) 1/30th of $1,000 and (y) the Daily
Conversion Value relating to such Trading Day; and (2) if such Daily Conversion Value exceeds
1/30th of $1,000, a number of shares of Common Stock equal to (A) the difference between
such Daily Conversion Value and 1/30th of $1,000, divided by (B) the VWAP of the Common
Stock for such Trading Day.

- 2 -

 

     “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

     “Depositary” means The Depository Trust Company, its nominees and successors.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC thereunder.

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

     “Indebtedness” of a person means the principal of, premium, if any, and interest on, and all
other obligations in respect of (a) all indebtedness of such person for borrowed money (including
all indebtedness evidenced by notes, bonds, debentures or other securities), (b) all obligations
(other than trade payables) incurred by such person in the acquisition (whether by way of purchase,
merger, consolidation or otherwise and whether by such person or another person) of any business,
real property or other assets, (c) all reimbursement obligations of such person with respect to
letters of credit, bankers’ acceptances or similar facilities issued for the account of such
person, (d) all capital lease obligations of such person, (e) all net obligations of such person
under interest rate swap, currency exchange or similar agreements of such person, (f) all
obligations and other liabilities, contingent or otherwise, 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 improvements 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, including such person’s obligations under such lease or related document to purchase or
cause a third party to purchase such leased property or pay an agreed-upon residual value of the
leased property to the lessor, (g) guarantees by such person of indebtedness described in
clauses (a) through (f) of another person, and (h) all renewals, extensions, refundings,
deferrals, restructurings, amendments and modifications of any indebtedness, obligation, guarantee
or liability of the kind described in clauses (a) through (g).

     “Indenture” means this Indenture as amended or supplemented from time to time.

     “Initial Purchasers” means UBS Securities LLC, Brean Murray, Carret & Co., LLC, RBC Capital
Markets Corporation and William Blair.

     “Issue Date” means [•], 2009.

     “Make-Whole Fundamental Change” means an Asset Sale Make-Whole Fundamental Change or a Common
Stock Change Make-Whole Fundamental Change.

     “Market Disruption Event” means either (i) a failure by the primary United States national
securities exchange or market on which the Common Stock is listed or admitted to trading to open
for trading during its regular trading session; or (ii) the occurrence or existence prior to
1:00 p.m. on any Trading Day for the Common Stock for an aggregate of at least thirty (30) minutes
of any suspension or limitation imposed on trading (by reason of movements in

- 3 -

 

price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in
any options, contracts or future contracts relating to the Common Stock.

     “Maturity Date” means [•], 2014.

     “Offering Memorandum” means the final Offering Memorandum of the Company, dated [•], 2009,
relating to the Securities and the Company’s [•]% Convertible Senior Notes due 2014.

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

     “Officer’s Certificate” means a certificate signed by one Officer of the Company.

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

     “Option” means the Initial Purchasers’ option to acquire up to $[•] aggregate principal amount
of additional Securities (“Additional Securities”) as provided for in the Purchase Agreement.

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

     “Purchase Agreement” means the Purchase Agreement dated [•], 2009 among the Company and the
Initial Purchasers.

     “Purchase Notice” means a Purchase Notice in the form set forth in the Securities.

     “QIB” means a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act.

     “Registration Rights Agreement” means the Registration Rights Agreement dated as of the date
hereof between the Company and the several Initial Purchasers.

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

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     “Restricted Security” means a Security that constitutes a “restricted security” within the
meaning of Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be
entitled to request and conclusively rely on an Opinion of Counsel with respect to whether any
Security constitutes a Restricted Security.

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

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

     “SEC” means the Securities and Exchange Commission.

     “Securities” means the [•]% Convertible Senior Notes due 2014 issued by the Company pursuant
to this Indenture.

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

     “Securities Agent” means any Registrar, Paying Agent, Conversion Agent or co-Registrar or
co-agent.

     “Settlement Period” means the 30 consecutive Trading Days:

          (1) with respect to Conversion Dates occurring during the period beginning 35 Scheduled
Trading Days preceding the maturity date, beginning on and including the 32nd
Scheduled Trading Day immediately preceding the Maturity Date; and

          (2) in all other cases, beginning on and including the third Trading Day following the
Conversion Date.

     “Significant Subsidiary” with respect to any person means any subsidiary (as defined in
Rule 1-02(x) of Regulation S-X under the Securities Act) of such person that constitutes a
“significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X under the Securities
Act, as such regulation is in effect on the date of this Indenture.

     “Subsidiary” means (i) a corporation a majority of whose Capital Stock with voting power,
under ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by
the Company, by one or more subsidiaries of the Company or by the Company and one or more of its
subsidiaries, (ii) any other person (other than a corporation) in which the Company, one or more of
its subsidiaries, or the Company and one or more of its subsidiaries, directly or indirectly, at
the date of determination thereof, own at least a majority ownership interest, or (iii) any other
entity that constitutes a “subsidiary” within the meaning of Rule 1-02 of Regulation S-X
promulgated under the Securities Act.

     “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as amended and in
effect from time to time.

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     “Trading Day” means any day during which all of the following conditions are satisfied:
(i) trading in the Common Stock generally occurs on the primary U.S. national securities exchange
or market on which it is then listed or, if the Common Stock is not listed on a U.S. national or
regional securities exchange, on the principal other market on which the Common Stock is then
traded; and (ii) there is no Market Disruption Event on the principal other U.S. national or
regional securities exchange on which the Common Stock is then listed.

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

     “Voting Stock” of any Person means the total voting power of all classes of the Capital Stock
of such Person entitled to vote generally in the election of directors of such Person.

     “VWAP” for the Common Stock means, with respect to any Trading Day during the Settlement
Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP”
on Bloomberg page HYT.UQ <equity> in respect of the period from 9:30 a.m. to 4:00 p.m., New
York City time, on such Trading Day; or if such volume-weighted average price is unavailable, the
market value per share of the Common Stock on such Trading Day as determined by a nationally
recognized independent investment banking firm retained for this purpose by the Company.

Other Definitions.

	 	 	 
	Acquisition of Voting Control

	 	Section 3.02(K)(i)(a)
	Additional Interest Notice

	 	Section 4.09
	Additional Securities

	 	Section 1.01
	Aggregate Amount

	 	Section 10.06(e)
	Applicable Price

	 	Section 10.16(C)
	Bankruptcy Law

	 	Section 6.01
	BCF Adjustment Cap

	 	Section 10.07
	BCF Make-Whole Cap

	 	Section 10.16(B)(iv)
	Business Day

	 	Section 11.07
	Change in Control

	 	Section 3.02(K)(i)
	Closing Sale Price

	 	Section 10.06(c)
	Collective Election

	 	Section 10.12
	Conversion Agent

	 	Section 2.03
	Conversion Date

	 	Section 10.02(A)
	Conversion Notice

	 	Section 10.02(A)
	Conversion Obligation

	 	Section 10.01(A)
	Conversion Shares

	 	Section 10.06(c)
	Custodian

	 	Section 6.01
	Effective Date

	 	Section 10.16(B)
	Event of Default

	 	Section 6.01
	Ex Date

	 	Section 10.06(g)
	Expiration Date

	 	Section 10.06(e)
	Expiration Time

	 	Section 10.06(e)
	Floor Price

	 	Section 10.15

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	Fundamental Change

	 	Section 3.02(K)
	Fundamental Change Notice

	 	Section 3.02(A)
	Fundamental Change Repurchase Date

	 	Section 3.02(A)
	Fundamental Change Repurchase Price

	 	Section 3.02(A)
	Fundamental Change Repurchase Right

	 	Section 3.02(A)
	Global Security

	 	Section 2.01
	Irrevocable Payment Election

	 	Section 10.02(A)
	Legal Holiday

	 	Section 11.07
	Make-Whole Applicable Increase

	 	Section 10.16(B)
	Make-Whole Consideration

	 	Section 10.16(A)
	Make-Whole Conversion Period

	 	Section 10.16(A)
	Nasdaq share limitation

	 	Section 10.02(A)
	Notice of Default

	 	Section 6.01
	Participants

	 	Section 2.15(A)
	Paying Agent

	 	Section 2.03
	Physical Securities

	 	Section 2.01
	Private Placement Legend

	 	Section 2.17
	Purchased Shares

	 	Section 10.06(e)
	record date

	 	Section 10.06(g)
	Reference Property

	 	Section 10.12
	Registrar

	 	Section 2.03
	Repurchase Upon Fundamental Change

	 	Section 3.01(A)
	Resale Restriction Termination Date

	 	Section 2.17
	Rights

	 	Section 10.06(c)
	Spin-Off

	 	Section 10.06(c)
	Termination of Trading

	 	Section 3.02(K)(ii)
	Trigger Event

	 	Section 10.06(c)
	Underlying Shares

	 	Section 10.06(b)

Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

     The following TIA terms used in this Indenture have the following meanings:

“Commission” means the SEC;

“indenture securities” means the Securities;

“indenture security holder” means a Securityholder or a Holder;

“indenture to be qualified” means this Indenture;

“indenture trustee” or “institutional trustee” means the Trustee; and

“obligor” on the indenture securities means the Company or any successor.

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

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Rules of Construction.

     Unless the context otherwise requires:

          a term has the meaning assigned to it;

an accounting term not otherwise defined has the meaning assigned
to it in accordance with generally accepted accounting principles in effect
from time to time;

          “or” is not exclusive;

          “including” means “including without limitation”;

words in the singular include the plural and in the plural include
the singular;

          provisions apply to successive events and transactions;

the term “interest” includes additional interest, unless the
context otherwise requires or unless the terms of the Registration Rights
Agreement provide otherwise;

“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 of this
Indenture; and

references to currency shall mean the lawful currency of the United States of
America, unless the context requires otherwise.

THE SECURITIES

Form and Dating.

     The Securities and the Trustee’s certificate of authentication shall be substantially in the
form set forth in Exhibit A, which is incorporated in and forms a part of this Indenture.
The Securities may have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Security shall be dated the date of its authentication.

     Securities offered and sold in reliance on Rule 144A shall be issued initially in the form of
one or more Global Securities, substantially in the form set forth in Exhibit A (the
“Global Security”), registered in the name of the Depositary or a nominee thereof, deposited with
the Trustee, as custodian for the Depositary, duly executed by the Company and authenticated by the
Trustee as hereinafter provided and bearing the legends set forth in Exhibits B-1 and
B-2. The aggregate principal amount of the Global Security may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as custodian for the
Depositary, as hereinafter provided; provided, that, in no event shall the aggregate principal
amount of the Global Security or Securities exceed $[•] (or $[•] if the Initial Purchasers elect to
purchase all of the Additional Securities pursuant to the Option).

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     Securities issued in exchange for interests in a Global Security pursuant to
Section 2.15 may be issued in the form of permanent certificated Securities in registered
form in substantially the form set forth in Exhibit A (the “Physical Securities”) and, if
applicable, bearing any legends required by Section 2.17.

Execution and Authentication.

     One duly authorized Officer shall sign the Securities for the Company by manual or facsimile
signature.

     A Security’s validity shall not be affected by the failure of an Officer whose signature is on
such Security to hold, at the time the Security is authenticated, the same office at the Company.

     A Security shall not be valid until authenticated by the manual signature of the Trustee. The
signature shall be conclusive evidence that the Security has been authenticated under this
Indenture.

     Upon a written order of the Company signed by one Officer of the Company, the Trustee shall
authenticate Securities for original issue in the aggregate principal amount of $[•] and such
additional principal amount, if any, as shall be determined pursuant to the next sentence of this
Section 2.02. Upon receipt by the Trustee of an Officer’s Certificate stating that the
Initial Purchasers have elected to purchase from the Company a specified principal amount of
Additional Securities, not to exceed $[•], pursuant to the Option, the Trustee shall authenticate
and deliver such specified principal amount of Additional Securities to or upon the written order
of the Company signed as provided in the immediately preceding sentence. Such Officer’s
Certificate must be received by the Trustee not later than the proposed date for delivering of such
Additional Securities. The aggregate principal amount of Securities outstanding at any time may
not exceed $[•] except as provided in this Section 2.02.

     Upon a Company Order, the Trustee shall authenticate Securities not bearing the Private
Placement Legend to be issued to the transferee when sold pursuant to an effective registration
statement under the Securities Act as set forth in Section 2.16(B).

     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 authenticating
agent. An authenticating agent has the same rights as a Securities Agent to deal with the Company
and its Affiliates.

     If a Company Order pursuant to this Section 2.02 has been, or simultaneously is,
delivered, any instructions by the Company to the Trustee with respect to endorsement, delivery or
redelivery of a Security issued in global form shall be in writing but need not comply with
Section 11.04 hereof and need not be accompanied by an Opinion of Counsel.

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

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Registrar, Paying Agent and Conversion Agent.

     The Company shall maintain, or shall cause to be maintained, an office or agency in the United
States where Securities may be presented for registration of transfer or for exchange
(“Registrar”), an office or agency in the United States where Securities may be presented for
payment (“Paying Agent”) and an office or agency in the United States where Securities may be
presented for conversion (“Conversion Agent”). The Registrar shall keep a register of the
Securities and of their transfer and exchange. The Company may appoint or change one or more
co-Registrars, one or more additional paying agents and one or more additional conversion agents
without notice and may act in any such capacity on its own behalf. The term “Registrar” includes
any co-Registrar; the term “Paying Agent” includes any additional paying agent; and the term
“Conversion Agent” includes any additional conversion agent.

     The Company shall enter into an appropriate agency agreement with any Securities Agent not a
party to this Indenture. The agreement shall implement the provisions of this Indenture that
relate to such Securities Agent. The Company shall notify the Trustee of the name and address of
any Securities Agent not a party to this Indenture. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such.

     The Company initially appoints the Trustee as Paying Agent, Registrar and Conversion Agent.

Paying Agent to Hold Money in Trust.

     Each Paying Agent shall hold in trust for the benefit of the Securityholders or the Trustee
all moneys held by the Paying Agent for the payment of the Securities, and shall notify the Trustee
of any Default by the Company in making any such payment. While any such Default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to
the Trustee, the Paying Agent shall have no further liability for such money. If the Company acts
as Paying Agent, it shall segregate and hold as a separate trust fund all money and, if applicable,
other property held by it as Paying Agent.

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
Registrar, the Company shall furnish, or shall cause to be furnished, to the Trustee no later than
three Business Days before each interest payment date, and at such other times as the Trustee may
request in writing, a list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Securityholders.

Transfer and Exchange.

     Subject to Sections 2.15 and 2.16 hereof, where Securities are presented to
the Registrar with a request to register their transfer or to exchange them for an equal principal
amount of Securities of other authorized denominations, the Registrar shall register the transfer
or make the

- 10 -

 

exchange if its requirements for such transaction are met. To permit registrations of
transfer and exchanges, the Trustee shall authenticate Securities at the Registrar’s request or
upon the Trustee’s receipt of a Company Order therefor. The Company or the Trustee, as the case
may be, shall not be required to register the transfer of or exchange any Security for which a
Fundamental Change Notice has been delivered, and not withdrawn, in accordance with this Indenture,
except the unrepurchased portion of Securities being repurchased in part.

     No service charge shall be made for any transfer, exchange or conversion of Securities, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge that may be imposed in connection with any transfer, exchange or conversion of
Securities, other than exchanges pursuant to Sections 2.10, 9.05 or 10.02,
or Article III, not involving any transfer.

Replacement Securities.

     If the Holder of a Security claims that the Security has been mutilated, lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
upon surrender to the Trustee of the mutilated Security, or upon delivery to the Trustee of
evidence of the loss, destruction or theft of the Security satisfactory to the Trustee and the
Company. In the case of a lost, destroyed or wrongfully taken Security, if required by the Trustee
or the Company, an indemnity bond must be provided by the Holder that is reasonably satisfactory to
the Trustee and the Company to indemnify and hold harmless the Company, the Trustee or any
Securities Agent from any loss which any of them may suffer if such Security is replaced. The
Trustee and the Company may charge such Holder for their expenses in replacing a Security.

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

     Every replacement Security is an additional obligation of the Company only as provided in
Section 2.08.

Outstanding Securities.

     Securities outstanding at any time are all the Securities authenticated by the Trustee except
for those converted, those cancelled by it, those delivered to it for cancellation and those
described in this Section 2.08 as not outstanding. Except to the extent provided in
Section 2.09, a Security does not cease to be outstanding because the Company or one of its
Subsidiaries or Affiliates holds the Security.

     If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it, or a court holds, that the replaced Security is held
by a protected purchaser.

     If the Paying Agent (other than the Company) holds on a Fundamental Change Repurchase Date or
Maturity Date, money sufficient to pay the aggregate Fundamental Change

- 11 -

 

Repurchase Price or
principal amount, as the case may be, with respect to all Securities to be purchased or paid upon
Repurchase Upon Fundamental Change or maturity, as the case may be, in each case plus, if
applicable, accrued and unpaid interest, if any, payable as herein provided upon Repurchase Upon
Fundamental Change or maturity, then (unless there shall be a Default in the payment of such
aggregate Fundamental Change Repurchase Price or principal amount, or of such accrued and unpaid
interest), except as otherwise provided herein, on and after such date such Securities shall be
deemed to be no longer outstanding, interest on such Securities shall cease to accrue, and such
Securities shall be deemed paid whether or not such Securities are delivered to the Paying Agent.
Thereafter, all rights of the Holders of such Securities shall terminate with respect to such
Securities, other than the right to receive the Fundamental Change Repurchase Price or principal
amount, as the case may be, plus, if applicable, such accrued and unpaid interest, in accordance
with this Indenture.

     If a Security is converted in accordance with Article X, then, from and after the time
of such conversion on the Conversion Date, such Security shall cease to be outstanding, and
interest, if any, shall cease to accrue on such Security unless there shall be a Default in the
payment or delivery of the consideration payable hereunder upon such conversion.

Securities Held by the Company or an Affiliate.

     In determining whether the Holders of the required aggregate principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the Company or any of its
Subsidiaries or Affiliates shall be considered as though not outstanding, except that, for the
purposes of determining whether a Responsible Officer of the Trustee shall be protected in relying
on any such direction, waiver or consent, only Securities which the Trustee knows are so owned
shall be so disregarded. Securities so owned which have been pledged in good faith may be
considered to be outstanding for purposes of this Section 2.09 if the pledgee establishes,
to the satisfaction of the Trustee, the pledgee’s right so to concur with respect to such
Securities and that the pledgee is not, and is not acting at the direction or on behalf of, the
Company, any other obligor on the Securities, an Affiliate of the Company or an affiliate of any
such other obligor. In the event of a dispute as to whether the pledgee has established the
foregoing, the Trustee may rely on the advice of counsel or on an Officer’s Certificate.

Temporary Securities.

     Until definitive Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers appropriate for
temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities. Until so exchanged, each
temporary Security shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities, and such temporary Security shall be exchangeable for
definitive Securities in accordance with the terms of this Indenture.

- 12 -

 

Cancellation.

     The Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar, Paying Agent and Conversion Agent shall forward to the Trustee any Securities
surrendered to them for transfer, exchange, payment or conversion. The Trustee shall promptly
cancel all Securities surrendered for transfer, exchange, payment, conversion or cancellation in
accordance with its customary procedures. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation or that any Securityholder
has converted pursuant to Article X.

Defaulted Interest.

     If and to the extent the Company defaults in a payment of interest on the Securities, the
Company shall pay in Cash the defaulted interest in any lawful manner plus, to the extent not
prohibited by applicable statute or case law, interest on such defaulted interest at the rate
provided in the Securities. The Company may pay the defaulted interest (plus interest on such
defaulted interest) to the persons who are Securityholders on a subsequent special record date. The
Company shall fix such record date and payment date. At least fifteen (15) calendar days before
the record date, the Company shall deliver or cause to be delivered to Securityholders a notice
that states the record date, payment date and amount of interest to be paid. Upon the due payment
in full, interest shall no longer accrue on such defaulted interest pursuant to this
Section 2.12.

CUSIP Numbers.

     The Company in issuing the Securities may use one or more “CUSIP” numbers, and, if so, the
Trustee shall use the CUSIP numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that no representation is hereby deemed to be made by the Trustee as to
the correctness or accuracy of the CUSIP numbers printed on the notice or on the Securities;
provided further, that reliance may be placed only on the other identification numbers printed on
the Securities, and the effectiveness of any such notice shall not be affected by any defect in, or
omission of, such CUSIP numbers. The Company shall promptly notify the Trustee of any change in
the CUSIP numbers.

Deposit of Moneys.

     Prior to 11:00 A.M., New York City time, on each interest payment date, Maturity Date or
Fundamental Change Repurchase Date, the Company shall deposit with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust in accordance with
Section 2.04) money, in funds immediately available on such date, sufficient to make Cash
payments, if any, due on such interest payment date, Maturity Date or Fundamental Change Repurchase
Date, as the case may be, in a timely manner which permits the Paying Agent to remit payment to the
Holders on such interest payment date, Maturity Date or Fundamental Change Repurchase Date, as the
case may be.

- 13 -

 

Book-Entry Provisions for Global Securities.

     The Global Securities initially shall (i) be registered in the name of the Depositary or the
nominee of the Depositary, (ii) be delivered to the Trustee as custodian for the Depositary and
(iii) bear legends as set forth in Section 2.17.

     Members of, or participants in, the Depositary (“Participants”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
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 impair, as
between the Depositary and Participants, the operation of customary practices governing the
exercise of the rights of a Holder of any Security.

     Transfers of Global Securities shall be limited to transfers in whole, but not in part, to the
Depositary, its successors or their respective nominees. In addition, Physical Securities shall be
transferred to all beneficial owners, as identified by the Depositary, in exchange for their
beneficial interests in Global Securities only if (i) the Depositary notifies the Company that the
Depositary is unwilling or unable to continue as depositary for any Global Security (or the
Depositary ceases to be a “clearing agency” registered under Section 17A of the Exchange Act) and a
successor Depositary is not appointed by the Company within ninety (90) days of such notice or
cessation or (ii) an Event of Default has occurred and is continuing and the Registrar has received
a written request from the Depositary to issue Physical Securities.

     In connection with the transfer of a Global Security in its entirety to beneficial owners
pursuant to Section 2.15(B), such Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall upon written
instructions from the Company authenticate and deliver, to each beneficial owner identified by the
Depositary in exchange for its beneficial interest in such Global Security, an equal aggregate
principal amount of Physical Securities of authorized denominations.

     Any Physical Security constituting a Restricted Security delivered in exchange for an interest
in a Global Security pursuant to Section 2.15(B) shall, except as otherwise provided by
Section 2.16, bear the Private Placement Legend.

     The Holder of any Global Security may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through Participants, to take any action
which a Holder is entitled to take under this Indenture or the Securities.

Special Transfer Provisions.

     Restrictions on Transfer and Exchange of Global Securities. Notwithstanding any other
provisions of this Indenture, but except as provided in Section 2.15(B), a Global 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.

- 14 -

 

     Private Placement Legend. Upon the transfer, exchange or replacement of Securities not
bearing the Private Placement Legend, the Registrar or co-Registrar shall deliver Securities that
do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of Securities
bearing the Private Placement Legend, the Registrar or co-Registrar shall deliver only Securities
that bear the Private Placement Legend unless (i) the requested transfer is after the Resale
Restriction Termination Date, (ii) there is delivered to the Trustee and the Company an opinion of
counsel reasonably satisfactory to the Company and addressed to the Company to the effect that
neither such legend nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act or (iii) such Security has been sold pursuant
to an effective registration statement under the Securities Act and the Holder selling such
Securities has delivered to the Registrar or co-Registrar a notice in the form of Exhibit C
hereto. Upon the effectiveness, under the Securities Act, of the “Shelf Registration Statement”
(as defined in the Registration Rights Agreement), the Company shall deliver to the Trustee a
notice of effectiveness, a Global Security or Global Securities, which do not bear the Private
Placement Legend and an authentication order in accordance with Section 2.02 and, if
required by the Depositary, the Company shall deliver to the Depositary a letter of representations
in a form reasonably acceptable to the Depositary. Upon the effectiveness of any post-effective
amendment to the “Shelf Registration Statement” (as defined in the Registration Rights Agreement)
and upon the effectiveness, under the Securities Act, of any “Subsequent Shelf Registration
Statement” (as defined in the Registration Rights Agreement), the Company shall deliver to the
Trustee a notice of effectiveness. Upon any sale, pursuant to a Shelf Registration Statement, of a
beneficial interest in a Global Security that theretofore constituted a Restricted Security and
delivery of appropriate evidence thereof to the Trustee, and upon any sale or transfer of a
beneficial interest in connection with which the Private Placement Legend will be removed in
accordance with this Indenture, the Trustee shall increase the principal amount of the Global
Security that does not constitute a Restricted Security by the principal amount of such sale or
transfer and likewise reduce the principal amount of the Global Security that does constitute a
Restricted Security.

     General. By its acceptance of any Security bearing the Private Placement Legend, each Holder
of such a Security acknowledges the restrictions on transfer of such Security set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Security only
as provided in this Indenture and as permitted by applicable law.

     The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.15 or this Section 2.16. The Company shall have the
right to inspect and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable written notice to the Registrar.

     Transfers of Securities Held by Affiliates. Any Securities or shares of Common Stock issued
upon the conversion of Securities that are purchased or owned by the Company or any Affiliate
thereof may not be resold by the Company or such Affiliate unless registered under the Securities
Act or resold pursuant to an exemption from the registration requirements of the Securities Act in
a transaction that results in such Securities or shares of Common Stock, as the case may be, no
longer being Restricted Securities. For the avoidance of doubt, solely with respect to Affiliates,
the aforementioned sentence shall not constitute a covenant of the Company under this Indenture.

Restrictive Legends.

     Each Global Security and Physical Security that constitutes a Restricted Security shall bear
the legend (the “Private Placement Legend”) as set forth in Exhibit B-1 on the face thereof

- 15 -

 

(1) until after the second anniversary of the later of (i) the Issue Date and (ii) the last date on
which the Company or any Affiliate was the owner of such Security (or any predecessor security) (or
such shorter period of time as permitted by Rule 144(k) under the Securities Act or any successor
provision thereunder) (or such longer period of time as may be required under the Securities Act or
applicable state securities laws, as set forth in an Opinion of Counsel, unless otherwise agreed
between the Company and the Holder thereof) (such date, the “Resale Restriction Termination Date”);
or (2) as otherwise provided in or permitted by Section 2.16(B).

     Each Global Security shall also bear the legend as set forth in Exhibit B-2.

Ranking.

     The indebtedness of the Company arising under or in connection with this Indenture and every
outstanding Security issued under this Indenture from time to time constitutes and will constitute
a senior unsecured obligation of the Company, ranking equally with other existing and future senior
unsecured indebtedness of the Company and ranking senior to any existing or future subordinated
indebtedness of the Company.

REDEMPTION AND REPURCHASE

No Right of Redemption at the Option of the Company.

The Securities are not redeemable at the option of the Company, except with respect to any
repurchase upon a Fundamental Change, in accordance with paragraph 6 of the Securities (a
“Repurchase Upon Fundamental Change”).

Repurchase at Option of Holder Upon a Fundamental Change.

     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 five (35) days, nor earlier than twenty (20) days, after the date the Fundamental
Change Notice (as defined below) is delivered in accordance with Section 3.02(B), 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, if any, to, but excluding, the Fundamental Change Repurchase
Date, upon:

     delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Fundamental Change Notice, no
later than the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, of a Purchase Notice, in the form set forth in the
Securities or any other form of written notice substantially similar thereto, in each case,
duly completed and signed, with appropriate signature guarantee, stating:

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     the certificate number(s) of the Securities which the Holder will deliver to be
repurchased, if such Securities are in certificated form;

     the principal amount of Securities to be repurchased, which must be $1,000 or
an integral multiple thereof; and

     that such principal amount of Securities are to be repurchased pursuant to the
terms and conditions specified in paragraph 6 of the Securities and in this
Indenture; and

     delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Fundamental Change Notice, at any time
after the delivery of such Purchase Notice, of such Securities (together with all necessary
endorsements) with respect to which the Fundamental Change Repurchase Right is being
exercised;

provided, however, that if such Fundamental Change Repurchase Date is after a record date for the
payment of an installment of interest and on or before the related interest payment date, then the
accrued and unpaid interest, if any, to, but excluding, such interest payment date will be paid on
such interest payment date to the Holder of record of such Securities at the close of business on
such record date (without any surrender of such Securities by such Holder), and the Holder
surrendering such Securities for repurchase will not be entitled to any such accrued and unpaid
interest unless such Holder was also the Holder of record of such Securities at the close of
business on such record date.

     If such Securities are held in book-entry form through the Depositary, the Purchase Notice
shall comply with applicable procedures of the Depositary.

     If such Securities are in certificated form, upon delivery of certificated Securities to the
Company (if it is acting as its own Paying Agent) or such Paying Agent, such Holder shall be
entitled to receive from the Company or such Paying Agent, as the case may be, a nontransferable
receipt of deposit evidencing such delivery.

     Notwithstanding anything herein to the contrary, any Holder that has delivered the Purchase
Notice contemplated by this Section 3.02(A) to the Company (if it is acting as its own
Paying Agent) or to a Paying Agent designated by the Company for such purpose in the Fundamental
Change Notice shall have the right to withdraw such Purchase Notice by delivery, at any time prior
to the close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date, of a written notice of withdrawal to the Company (if acting as its own Paying
Agent) or the Paying Agent, which notice shall contain the information specified in
Section 3.02(B)(xi).

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

     The Company will comply with all federal and state securities laws, and the applicable laws of
any foreign jurisdiction, in connection with any offer to sell or solicitations of offers to buy
Securities pursuant to this Section 3.02.

- 17 -

 

     Within five (5) Business Days after the occurrence of a Fundamental Change, the Company shall
deliver, or cause to be delivered, to all Holders of record of the Securities at their addresses
shown in the register of the Registrar, and to beneficial owners as required by applicable law, a
notice (the “Fundamental Change Notice”) of the occurrence of such Fundamental Change and the
Fundamental Change Repurchase Right arising as a result thereof. The Company shall deliver a copy
of the Fundamental Change Notice to the Trustee and shall publicly release, through a reputable
national newswire service, such Fundamental Change Notice.

     Each Fundamental Change Notice shall state:

     the events causing the Fundamental Change;

     the date of such Fundamental Change;

     the Fundamental Change Repurchase Date;

     the date by which the Fundamental Change Repurchase Right must be exercised;

     the Fundamental Change Repurchase Price plus accrued and unpaid interest, if any, to,
but excluding, the Fundamental Change Repurchase Date;

     the names and addresses of the Paying Agent and the Conversion Agent;

     a description of the procedures which a Holder must follow to exercise the Fundamental
Change Repurchase Right;

     that, in order to exercise the Fundamental Change Repurchase Right, the Securities must
be surrendered for payment of the Fundamental Change Repurchase Price plus accrued and
unpaid interest, if any, payable as herein provided upon Repurchase Upon Fundamental Change;

     that the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any,
to, but excluding, the Fundamental Change Repurchase Date, for any Security as to which a
Purchase Notice has been given and not validly withdrawn will be paid as promptly as
practicable, but in no event later than the later of such Fundamental Change Repurchase Date
and the third Business Day after the time of delivery of the Security (together with all
necessary endorsements) as described in clause (viii) above; provided, however, that
if such Fundamental Change Repurchase Date is after a record date for the payment of an
installment of interest and on or before the related interest payment date, then the accrued
and unpaid interest, if any, to, but excluding, such interest payment date will be paid on
such interest payment date to the Holder of record of such Security at the close of business
on such record date (without any surrender of such Securities by such Holder), and the
Holder surrendering such Security for repurchase will not be entitled to any such accrued
and unpaid interest unless such Holder was also the Holder of record of such Security at the
close of business on such record date;

     that, except as otherwise provided herein, on and after such Fundamental Change
Repurchase Date (unless there shall be a Default in the payment of the consideration payable
as herein provided upon Repurchase Upon Fundamental Change), interest on Securities subject
to Repurchase Upon Fundamental Change will cease to accrue, and all rights of the Holders of
such Securities shall terminate, other than the right to receive, in

- 18 -

 

accordance herewith,
the consideration payable as herein provided upon Repurchase Upon Fundamental Change;

     that a Holder will be entitled to withdraw its election in the Purchase Notice if the
Company (if acting as its own Paying Agent), or the Paying Agent receives, prior to the
close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date, or such longer period as may be required by law, a letter or telegram,
telex or facsimile transmission (receipt of which is confirmed and promptly followed by a
letter) setting forth (I) the name of such Holder, (II) a statement that such Holder is
withdrawing its election to have Securities purchased by the Company on such Fundamental
Change Repurchase Date pursuant to a Repurchase Upon Fundamental Change, (III) the
certificate number(s) of such Securities to be so withdrawn, if such Securities are in
certificated form, (IV) the principal amount of the Securities of such Holder to be so
withdrawn, which amount must be $1,000 or an integral multiple thereof and (V) the principal
amount, if any, of the Securities of such Holder that remain subject to the Purchase Notice
delivered by such Holder in accordance with this Section 3.02, which amount must be
$1,000 or an integral multiple thereof;

     the Conversion Rate and any adjustments to the Conversion Rate that will result from
such Fundamental Change;

     that Securities with respect to which a Purchase Notice is given by a Holder may be
converted pursuant to Article X only if such Purchase Notice has been withdrawn in
accordance with this Section 3.02 or if there shall be a Default in the payment of
the Fundamental Change Repurchase Price or in the accrued and unpaid interest, if any,
payable as herein provided upon Repurchase Upon Fundamental Change; and

     the CUSIP number or numbers, as the case may be, of the Securities.

     At the Company’s request, upon reasonable prior notice, the Trustee shall deliver such
Fundamental Change Notice in the Company’s name and at the Company’s expense; provided, however,
that the form and content of such Fundamental Change Notice shall be prepared by the Company.

     No failure of the Company to give a Fundamental Change Notice shall limit any Holder’s right
to exercise a Fundamental Change Repurchase Right.

     Subject to the provisions of this Section 3.02, the Company shall pay, or cause to be
paid, the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any, to, but
excluding, the Fundamental Change Repurchase Date, with respect to each Security as to which the
Fundamental Change Repurchase Right shall have been exercised to the Holder thereof as promptly as
practicable, but in no event later than the later of the Fundamental Change Repurchase Date and the
time such Security is surrendered to the Paying Agent; provided, however, that if such Fundamental
Change Repurchase Date is after a record date for the payment of an installment of interest and on
or before the related interest payment date, then the accrued and unpaid interest, if any, to, but
excluding, such interest payment date will be paid on such interest
payment date to the Holder of record of such Security at the close of business on such record
date, and the Holder surrendering such Security for repurchase will not be entitled to any such
accrued and unpaid interest unless such Holder was also the Holder of record of such Security at
the close of business on such record date.

- 19 -

 

     Prior to 11:00 A.M., New York City time on a Fundamental Change Repurchase Date, the Company
shall deposit with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust in accordance with Section 2.04) money, in funds immediately available on
the Fundamental Change Repurchase Date, sufficient to pay the consideration payable as herein
provided upon Repurchase Upon Fundamental Change for all of the Securities that are to be
repurchased by the Company on such Fundamental Change Repurchase Date pursuant to a Repurchase Upon
Fundamental Change. The Paying Agent shall return to the Company, as soon as practicable, any
money not required for that purpose.

     Once the Fundamental Change Notice and the Purchase Notice have been duly given in accordance
with this Section 3.02, the Securities to be repurchased pursuant to a Repurchase Upon
Fundamental Change shall, on the Fundamental Change Repurchase Date, become due and payable in
accordance herewith, and, on and after such date (unless there shall be a Default in the payment of
the consideration payable as herein provided upon Repurchase Upon Fundamental Change), except as
otherwise herein provided, such Securities shall cease to bear interest, and all rights of the
Holders of such Securities shall terminate, other than the right to receive, in accordance
herewith, such consideration.

     Securities with respect to which a Purchase Notice has been duly delivered in accordance with
this Section 3.02 may be converted pursuant to Article X, if otherwise convertible
in accordance with Article X, only if such Purchase Notice has been withdrawn in accordance
with this Section 3.02 or if there shall be a Default in the payment of the consideration
payable as herein provided upon Repurchase Upon Fundamental Change.

     If any Security shall not be paid upon surrender thereof for Repurchase Upon Fundamental
Change, the principal of, and accrued and unpaid interest on, such Security shall, until paid, bear
interest, payable in Cash, at the rate borne by such Security on the principal amount of such
Security, and such Security shall continue to be convertible pursuant to Article X.

     Any Security which is to be submitted for Repurchase Upon Fundamental Change only in part
shall be delivered pursuant to this Section 3.02 (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 its attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and make available for
delivery to the Holder of such Security without service charge, a new Security or Securities, of
any authorized denomination as requested by such Holder, of the same tenor and in aggregate
principal amount equal to the portion of such Security not duly submitted for Repurchase Upon
Fundamental Change.

     Notwithstanding anything herein to the contrary, there shall be no purchase of any Securities
pursuant to this Section 3.02 on a Fundamental Change Repurchase Date if, on or prior to
such date, there has occurred an Event of Default with respect to the Securities, other than a
Default in the payment of the Fundamental Change Repurchase Price with respect to the Securities or
a Default arising from the Company’s failure to deliver a Fundamental Change Notice in accordance
with Section 3.02(B) herein. The Paying Agent will promptly return to the respective
Holders thereof any Securities tendered to it for Repurchase Upon Fundamental Change during
the continuance of such an acceleration.

     Notwithstanding anything herein to the contrary, if the option granted to Holders to require
the repurchase of the Securities upon the occurrence of a Fundamental Change is determined to
constitute a tender offer, the Company shall comply with all applicable tender offer rules under
the

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Exchange Act, including Rule 13e-4 and Regulation 14E thereunder, and with all other applicable
laws, and will file a Schedule TO or any other schedules required under the Exchange Act or any
other applicable laws.

     As used herein and in the Securities, 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 in Control” shall be deemed to have occurred at such time as:

     any “person” or “group” (as such terms are used in 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 total outstanding voting power of all classes of the Company’s
Capital Stock entitled to vote generally in the election of directors (such an
event, an “Acquisition of Voting Control”); or

     there occurs a sale, transfer, lease, conveyance or other disposition of all or
substantially all of the property or assets of the Company, or of the Company and
the Subsidiaries on a consolidated basis, 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; or

     the Company consolidates with, or merges with or into, another person or any
person consolidates with, or merges with or into, the Company, unless 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 consolidation or merger, “beneficially own,” directly or indirectly,
immediately after such consolidation or merger, shares of the surviving or
continuing corporation’s Voting Stock representing at least a majority of the total
outstanding voting power of all outstanding classes of the Voting Stock of the
surviving or continuing corporation in substantially the same proportion as such
ownership immediately prior to such consolidation or merger; or

     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

     the Company is liquidated or dissolved or the holders of the Company’s Capital
Stock approve any plan or proposal for the liquidation or dissolution of the
Company.

     A “Termination of Trading” shall occur if the Common Stock of the Company (or other
common stock into which the Securities are then convertible) is no longer listed for trading
on a U.S. national securities exchange.

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COVENANTS

Payment of Securities.

     The Company shall pay all amounts due with respect to the Securities on the dates and in the
manner provided in the Securities and in this Indenture. All such amounts shall be considered paid
on the date due if the Paying Agent holds (or, if the Company is acting as Paying Agent, the
Company has segregated and holds in trust in accordance with Section 2.04) on that date
money sufficient to pay the amount then due with respect to the Securities (unless there shall be a
Default in the payment of such amounts to the respective Holder(s)). The Company will pay, in
money of the United States that at the time of payment is legal tender for payment of public and
private debts, all amounts due in Cash with respect to the Securities, which amounts shall be paid
(A) in the case of a Security that is in global form, by wire transfer of immediately available
funds to the account designated by the Depositary or its nominee; or (B) in the case of a Security
that is held, other than global form, by wire transfer of immediately available funds to the
account specified by such Holder or, if such Holder does not specify an account, by mailing a check
to the address of such Holder set forth in the register of the Registrar.

     The Company shall pay, in Cash, interest on any overdue amount (including, to the extent
permitted by applicable law, overdue interest) at the rate borne by the Securities.

Maintenance of Office or Agency.

     The Company will maintain, or cause to be maintained, in the United States an office or agency
(which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-Registrar)
where Securities may be surrendered for registration of transfer or exchange, payment or conversion
and where notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at
the Corporate Trust Office of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the United
States for such purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.

     The Company hereby designates the Corporate Trust Office of the Trustee as an agency of the
Company in accordance with Section 2.03.

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Rule 144A Information and Annual Reports.

     At any time when the Company is not subject to, or is in violation of, Sections 13 or 15(d) of
the Exchange Act, the Company shall promptly provide to the Trustee and shall, upon request,
provide to any Holder, beneficial owner or prospective purchaser of Securities or shares of Common
Stock issued upon conversion of any Securities, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act to facilitate the resale of such Securities or shares
of Common Stock pursuant to Rule 144A. The Company shall take such further action as any Holder or
beneficial holder of such Securities or shares of Common Stock may reasonably request to the extent
required from time to time to enable such Holder or beneficial holder to sell its Securities or
shares of Common Stock in accordance with Rule 144A, as such rule may be amended from time to time.

     The Company shall deliver to the Trustee, no later than the time such report is required to be
filed with the SEC pursuant to the Exchange Act (including, without limitation, to the extent
applicable, any extension permitted by Rule 12b-25 under the Exchange Act), a copy of each report
the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act;
provided, however, that the Company shall not be required to deliver to the Trustee any material
for which the Company has sought and received confidential treatment by the SEC; provided further,
each such report will be deemed to be so delivered to the Trustee if the Company files such report
with the SEC through the SEC’s EDGAR database no later than the time such report is required to be
filed with the SEC pursuant to the Exchange Act (including, without limitation, to the extent
applicable, any extension permitted by Rule 12b-25 under the Exchange Act). In the event the
Company is at any time while any Securities are outstanding no longer subject to the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act, the Company shall continue to
provide to the Trustee and, upon request, to each Holder, no later than the date the Company would
have been required to file the same with the SEC, the reports the Company would have been required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange if the Company were subject to
the reporting requirements of such sections. The Company also shall comply with the other
provisions of TIA § 314(a). Delivery of such reports, information and documents to the Trustee is
for informational purposes only, and the Trustee’s receipt thereof 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).

Compliance Certificate.

     The Company shall deliver to the Trustee, within ninety (90) calendar days after the end of
each fiscal year of the Company, an Officer’s Certificate stating whether or not the signatory to
such Officer’s Certificate is aware of any Default or Event of Default by the Company in performing
any of its obligations under this Indenture or the Securities. If such signatory is aware of any
such Default or Event of Default, then such Officer’s Certificate shall describe the Default or
Event of Default and its status.

Stay, Extension and Usury Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will 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 wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (in each case, to

- 23 -

 

the
extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, 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 has been enacted.

Corporate Existence.

     Subject to Article V, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the corporate existence of
each of its Subsidiaries, in accordance with the respective organizational documents of the Company
and of each Subsidiary, and the rights (charter and statutory), licenses and franchises of the
Company and its Subsidiaries; provided, however, that the Company shall not be required to preserve
any such right, license or franchise, or the corporate existence of any Subsidiary, if in the good
faith judgment of the Board of Directors (i) such preservation or existence is not material to the
conduct of business of the Company and (ii) the loss of such right, license or franchise or the
dissolution of such Subsidiary does not have a material adverse impact on the Holders.

Notice of Default.

     Upon the occurrence of any Default or Event of Default, the Company shall give prompt written
notice to the Trustee of such Default or Event of Default, and any remedial action proposed to be
taken.

Further Instruments and Acts.

     Upon request of the Trustee, the Company shall 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.

Additional Interest Notice.

     In the event that the Company is required to pay additional interest to holders of Securities
pursuant to the Registration Rights Agreement, the Company will provide written notice (“Additional
Interest Notice”) to the Trustee of its obligation to pay additional interest no later than fifteen
(15) calendar days prior to the proposed payment date for the additional interest (or, if the
applicable Event (as defined in the Registration Rights Agreement) giving rise to the obligation to
pay such additional interest occurs on or after the fifteenth (15th) calendar day before such
payment date, no later than the Business Day after the date such Event occurs). Each Additional
Interest Notice shall set forth the amount of Additional Interest to be paid by the Company on such
payment date. The Trustee
shall not at any time be under any duty or responsibility to any Holder to determine the
amount of additional interest, or with respect to the nature, extent or calculation of the amount
of additional interest owed, or with respect to the method employed in such calculation of the
additional interest.

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SUCCESSORS

When Company May Merge, etc.

     The Company shall not consolidate with, or merge with or into, or sell, transfer, lease,
convey or otherwise dispose of all or substantially all of the property or assets of the Company,
or of the Company and the Subsidiaries on a consolidated basis, to, another person, whether in a
single transaction or series of related transactions, unless (i) if the surviving person is not the
Company, the surviving person is a corporation organized and existing under the laws of the United
States, any State thereof or the District of Columbia; (ii) such person assumes by supplemental
indenture all the obligations of the Company under the Securities and this Indenture; and
(iii) immediately after giving effect to such transaction or series of transactions, no Default or
Event of Default shall exist.

     The Company shall deliver to the Trustee prior to the consummation of the proposed transaction
an Officer’s Certificate to the foregoing effect and an Opinion of Counsel (which may rely upon
such Officer’s Certificate as to the absence of Defaults and Events of Default) stating that the
proposed transaction and such supplemental indenture will, upon consummation of the proposed
transaction, comply with this Indenture.

Successor Substituted.

     Upon any consolidation, merger or any sale, transfer, lease, conveyance or other disposition
of all or substantially all of the property or assets of the Company, or of the Company and the
Subsidiaries on a consolidated basis, the successor person formed by such consolidation or into
which the Company is merged or to which such sale, transfer, lease, conveyance or other disposition
is made shall succeed to, and, except in the case of a lease, be substituted for, and may exercise
every right and power of, and shall assume every duty and obligation of, the Company under this
Indenture with the same effect as if such successor had been named as the Company herein. When the
successor assumes all obligations of the Company hereunder, except in the case of a lease, all
obligations of the predecessor shall terminate.

DEFAULTS AND REMEDIES

Events of Default.

     An “Event of Default” occurs if:

     the Company fails to pay the principal of, or premium, if any, on, any Security when
the same becomes due and payable, whether at maturity, on a Fundamental Change Repurchase
Date with respect to a Repurchase Upon Fundamental Change or otherwise;

     the Company fails to pay an installment of interest or additional interest on any
Security when due, if such failure continues for thirty (30) days after the date when due;

     the Company fails to satisfy its conversion obligations upon exercise of a Holder’s
conversion rights pursuant hereto;

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     the Company fails to timely provide a Fundamental Change Notice, as required by the
provisions of this Indenture, or fails to timely provide any notice pursuant to, and in
accordance with, Section 10.16(E);

     the Company fails to comply with any other term, covenant or agreement set forth in the
Securities or this Indenture and such failure continues for the period, and after the
notice, specified below;

     the Company or any of its Subsidiaries defaults in the payment when due, after the
expiration of any applicable grace period, of principal of, or premium, if any, or interest
on, Indebtedness for money borrowed, in the aggregate principal amount then outstanding of
five million dollars ($5,000,000) or more, or the acceleration of Indebtedness of the
Company or any of its Subsidiaries for money borrowed in such aggregate principal amount or
more so that it becomes due and payable prior to the date on which it would otherwise become
due and payable and such default is not cured or waived, or such acceleration is not
rescinded, within thirty (30) days after notice to the Company by the Trustee or to the
Company and the Trustee by Holders of at least twenty five percent (25%) in aggregate
principal amount of the Securities then outstanding, each in accordance with this Indenture;

     the Company or any of its Subsidiaries fails to pay any final judgment, the aggregate
uninsured portion of which is at least five million dollars ($5,000,000), and such judgments
are not paid or discharged within thirty (30) days;

     the Company or any of its Significant Subsidiaries or any group of Subsidiaries that in
the aggregate would constitute a Significant Subsidiary of the Company, pursuant to, or
within the meaning of, any Bankruptcy Law, insolvency law, or other similar law now or
hereafter in effect or otherwise, either:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or

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

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

     (A) is for relief against the Company or any of its Significant Subsidiaries or
any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company in an involuntary case or proceeding, or adjudicates the
Company or any of its Significant Subsidiaries or any group of Subsidiaries that in
the aggregate would constitute a Significant Subsidiary of the Company insolvent or
bankrupt,

     (B) appoints a Custodian of the Company or any of its Significant Subsidiaries
or any group of Subsidiaries that in the aggregate would constitute a

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Significant Subsidiary of the Company for all or substantially all of the
property of the Company or any such Significant Subsidiary or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the
Company, as the case may be, or

     (C) orders the winding up or liquidation of the Company or any of its
Significant Subsidiaries or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company,

and, in the case of each of the foregoing clauses (A), (B) and (C) of this Section
6.01(ix), the order or decree remains unstayed and in effect for at least ninety (90)
consecutive days.

     The term “Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or State law for
the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

     A Default under clause (v) above is not an Event of Default until (I) the Trustee
notifies the Company, or the Holders of at least twenty five percent (25%) in aggregate principal
amount of the Securities then outstanding notify the Company and the Trustee, of the Default and
(II) the Default is not cured within sixty (60) days after receipt of such notice. Such notice must
specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.”
If the Holders of at least twenty five percent (25%) in aggregate principal amount of the
outstanding Securities request the Trustee to give such notice on their behalf, the Trustee shall
do so. When a Default is cured, it ceases.

Acceleration.

     If an Event of Default (excluding an Event of Default specified in Section 6.01(viii)
or (ix) with respect to the Company (but including an Event of Default specified in
Section 6.01(viii) or (ix) solely with respect to a Significant Subsidiary of the
Company or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company)) occurs and is continuing, the Trustee by written notice to the Company,
or the Holders of at least twenty five percent (25%) in aggregate principal amount of the
Securities then outstanding by written notice to the Company and the Trustee, may declare the
Securities to be immediately due and payable in full. Upon such declaration, the principal of, and
any accrued and unpaid interest (including any additional interest) on, all Securities shall be due
and payable immediately. If an Event of Default specified in Section 6.01(viii) or
(ix) with respect to the Company (excluding, for purposes of this sentence, an Event of
Default specified in Section 6.01(viii) or (ix) solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company) occurs, the principal of, and accrued and
unpaid interest (including any additional interest) on, all the Securities 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 written notice to the Trustee may rescind or annul an acceleration and its
consequences if (A) the rescission would
not conflict with any order or decree, (B) all existing Events of Default, except the
nonpayment

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of principal or interest (including additional interest) that has become due solely
because of the acceleration, have been cured or waived and (C) all amounts due to the Trustee under
Section 7.07 have been paid.

Other Remedies.

     Notwithstanding any other provision of this Indenture, if an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of amounts due with respect to 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 Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative.

Waiver of Past Defaults.

     Subject to Sections 6.07 and 9.02, the Holders of a majority in aggregate
principal amount of the Securities then outstanding may, by notice to the Trustee, waive any past
Default or Event of Default and its consequences, other than (A) a Default or Event of Default in
the payment of the principal of, or premium, if any, or interest or additional interest on, any
Security, or in the payment of the Fundamental Change Repurchase Price (or accrued and unpaid
interest, if any, payable as herein provided, upon Repurchase Upon Fundamental Change), (B) a
Default or Event of Default arising from a failure by the Company to convert any Securities into
shares of Common Stock in accordance with this Indenture or (C) any Default or Event of Default in
respect of any provision of this Indenture or the Securities which, under Section 9.02,
cannot be modified or amended without the consent of the Holder of each outstanding Security
affected. When a Default or an Event of Default is waived, it is cured and ceases. This
Section 6.04 shall be in lieu of TIA § 316(a)(1)(B), and, as permitted by the TIA, TIA
§ 316(a)(1)(B) is hereby expressly excluded from this Indenture.

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, is unduly prejudicial to the rights
of other Holders or would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction. This
Section 6.05 shall be in lieu of TIA § 316(a)(1)(A), and, as permitted by the TIA, TIA
§ 316(a)(1)(A) is hereby expressly excluded from this Indenture.

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Limitation on Suits.

     Except as provided in Section 6.07, a Securityholder may not institute any proceeding
under this Indenture, or for the appointment of a receiver or a trustee, or for any other remedy
under this Indenture unless:

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

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

     such Holder or Holders offer and, if requested, provide to the Trustee indemnity
reasonably satisfactory to the Trustee against any loss, liability or expense to or of the
Trustee in connection with pursuing such remedy;

     the Trustee does not comply with the request within sixty (60) days after receipt of
such notice, request and offer of indemnity; and

     during such sixty (60) day period, the Holders of a majority in aggregate principal
amount of the Securities then outstanding do not give the Trustee a direction inconsistent
with the request.

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

Rights of Holders to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of all amounts due with respect to the Securities, on or after the respective due dates as
provided herein, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of the Holder.

     Notwithstanding any other provision of this Indenture, the right of any Holder to convert the
Security in accordance with this Indenture, or to bring suit for the enforcement of such right,
shall not be impaired or affected without the consent of the Holder.

Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(i) or (ii) occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount due with respect to the Securities, including any unpaid
and accrued interest.

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, any predecessor Trustee and the
Securityholders allowed in any judicial proceedings relative to the Company or its creditors or
properties.

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     The Trustee may collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or similar official in any 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 the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the 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.

Priorities.

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

	 	 	 	 	 
	 

	 	First:
	 	to the Trustee for amounts due under Section 7.07;
	 
	 	 	 	 
	 

	 	Second:
	 	to Securityholders for all amounts due and unpaid on the Securities, without
preference or priority of any kind, according to the amounts due and payable on the
Securities; and
	 
	 	 	 	 
	 

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

     The Trustee, upon prior written notice to the Company, may fix a record date and payment date
for any payment by it to Securityholders pursuant to this Section 6.10. At least fifteen
(15) days before each such record date, the Trustee shall deliver to each Holder and the Company a
written notice that states such record date and payment date and the amount of such payment.

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
require the filing by any party litigant in the suit other than the Trustee of an undertaking to
pay the costs of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, 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 6.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a
suit by Holders of more than ten percent (10%) in aggregate principal amount of the outstanding
Securities.

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TRUSTEE

Duties of Trustee.

     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
their exercise, as a prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

     Except during the continuance of an Event of Default:

     the Trustee need perform only those duties that are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and

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

     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:

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

     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 6.05.

     Every provision of this Indenture that in any way relates to the Trustee is subject to the
provisions of this Section 7.01.

     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.

Rights of Trustee.

     Subject to Section 7.01, the Trustee may conclusively rely 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; if, however, the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled during normal business hours to

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examine the relevant books, records and premises of the Company, personally or by agent or
attorney upon reasonable prior notice.

     Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate
and/or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel.

     Any request or direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order, and any resolution of the Board of Directors shall be
sufficiently evidenced by a Board Resolution.

     The Trustee may consult with counsel (such counsel to be reasonably acceptable to the
Company), and the advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.

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

     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 discretion, rights or powers conferred upon it by this
Indenture.

     Except with respect to Section 6.01, the Trustee shall have no duty to inquire as to
the performance of the Company with respect to the covenants contained in Article IV. In
addition, 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 6.01(i) or (ii) or
(ii) any Default or Event of Default of which a Responsible Officer of the Trustee shall have
received written notification or obtained actual knowledge. Delivery of reports, information and
documents to the Trustee under Article IV (other than Sections 4.04 and
4.07) 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 on Officer’s Certificates).

     Subject to Section 7.01(A), the Trustee shall be under no obligation to exercise any
of the rights or powers vested by this Indenture at the request or direction of any of the Holders
pursuant to this Indenture unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or direction.

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

     The Trustee may request that the Company deliver an Officer’s Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take specified actions

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pursuant to this Indenture, which Officer’s Certificate may be signed by any person authorized
to sign an Officer’s Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded.

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 any of its Affiliates with the same rights
the Trustee would have if it were not Trustee. Any Securities Agent may do the same with like
rights. The Trustee, however, must comply with Sections 7.10 and 7.11.

Trustee’s Disclaimer.

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

Notice of Defaults.

     If a Default or Event of Default occurs and is continuing as to which the Trustee has received
notice pursuant to the provisions of this Indenture, or as to which a Responsible Officer of the
Trustee is aware, then the Trustee shall deliver to each holder a notice of the Default or Event of
Default within thirty (30) days after it occurs, unless such Default or Event of Default has been
cured or waived; provided, however, that, except in the case of a Default or Event of Default in
payment of any amounts due with respect to any Security, the Trustee may withhold such notice if,
and so long as it in good faith determines that, withholding such notice is in the best interests
of Holders.

Reports by Trustee to Holders.

     Within sixty (60) days after each [•], beginning with [•], 2009, the Trustee shall deliver to
each Securityholder if required by TIA § 313(a) a brief report dated as of such [•] that complies
with TIA § 313(c). In such event, the Trustee also shall comply with TIA § 313(b).

     A copy of each report at the time of its delivering to Securityholders shall be mailed by
first class mail to the Company and filed by the Trustee with the SEC and each stock exchange, if
any, on which the Securities are listed. The Company shall promptly notify the Trustee of the
listing or delisting of the Securities on or from any stock exchange.

Compensation and Indemnity.

     The Company shall pay to the Trustee from time to time such compensation for its services as
shall be agreed upon in writing. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it. Such expenses

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shall include the reasonable compensation and out-of-pocket expenses of the Trustee’s agents
and counsel.

     The Company shall indemnify the Trustee against any and all loss, liability, damage, claim or
expense (including the reasonable fees and expenses of counsel and taxes other than those based
upon the income of the Trustee) incurred by it in connection with the acceptance or administration
of this trust and the performance of its duties hereunder, including the reasonable costs and
expenses of defending itself against any claim (whether asserted by the Company, any Holder or any
other Person) or liability in connection with the exercise or performance of any of its powers and
duties hereunder. The Company need not pay for any settlement made without its consent. The
Trustee shall notify the Company promptly of any claim for which it may seek indemnification. The
Company need not reimburse any expense or indemnify against any loss or liability incurred by the
Trustee through the Trustee’s negligence, bad faith or willful misconduct.

     To secure the Company’s payment obligations in this Section 7.07, the Trustee shall
have a lien prior to the Securities on all money or property held or collected by the Trustee,
except as otherwise required by law.

     The indemnity obligations of the Company with respect to the Trustee provided for in this
Section 7.07 shall survive any resignation or removal of the Trustee.

     When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(viii) or (ix) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law.

Replacement of Trustee.

     A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this
Section 7.08.

     The Trustee may resign by so notifying the Company in writing thirty (30) Business Days prior
to such resignation. The Holders of a majority in aggregate principal amount of the Securities
then outstanding may remove the Trustee by so notifying the Trustee and the Company in writing and
may appoint a successor Trustee with the Company’s consent. The Company may remove the Trustee if:

     the Trustee fails to comply with Section 7.10;

     the Trustee is adjudged a bankrupt or an insolvent;

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

     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.

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     If a successor Trustee does not take office within thirty (30) days after the retiring Trustee
resigns or is removed, the retiring Trustee (at the Company’s expense), the Company or the Holders
of at least ten percent (10%) in aggregate principal amount of the outstanding Securities may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 7.10, the Company or 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. Thereupon 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. The successor Trustee shall deliver a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.07.

Successor Trustee by Merger, etc.

     If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee, if such successor corporation is otherwise eligible
hereunder.

Eligibility; Disqualification.

     There shall at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof, which Trustee
(A) is authorized under such laws to exercise corporate trustee power, (B) is subject to
supervision or examination by federal or state authorities and (C) has a combined capital and
surplus of at least $100 million as set forth in its most recent published annual report of
condition. The Trustee shall comply with TIA § 310(b). Nothing in this Indenture shall prevent
the Trustee from filing with the SEC the application referred to in the penultimate paragraph of
TIA § 310(b).

Preferential Collection of Claims Against Company.

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

DISCHARGE OF INDENTURE

Termination of the Obligations of the Company.

     This Indenture shall cease to be of further effect if (a) either (i) all outstanding
Securities (other than Securities replaced pursuant to Section 2.07 hereof) have been
delivered to the

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Trustee for cancellation or (ii) all outstanding Securities have become due and payable at
their scheduled maturity or upon Repurchase Upon Fundamental Change, and in either case the Company
irrevocably deposits, prior to the applicable due date, with the Trustee or the Paying Agent (if
the Paying Agent is not the Company or any of its Affiliates) Cash sufficient to pay all amounts
due and owing on all outstanding Securities (other than Securities replaced pursuant to
Section 2.07 hereof) on the Maturity Date or a Fundamental Change Repurchase Date, as the
case may be; (b) the Company pays to the Trustee all other sums payable hereunder by the Company;
(c) no Default or Event of Default with respect to the Securities shall exist on the date of such
deposit; (d) such deposit will not result in a breach or violation of, or constitute a Default or
Event of Default under, this Indenture or any other agreement or instrument to which the Company is
a party or by which it is bound; and (e) the Company has delivered to the Trustee an Officer’s
Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for
herein relating to the satisfaction and discharge of this Indenture have been complied with;
provided, however, that Sections 2.02, 2.03, 2.04, 2.05,
2.06, 2.07, 2.08, 2.15, 2.16, 2.17, 3.02,
4.01, 4.02, 4.05, 7.07 and 7.08 and Articles VIII
and X shall survive any discharge of this Indenture until such time as the Securities have
been paid in full and there are no Securities outstanding.

Application of Trust Money.

     The Trustee shall hold in trust all money deposited with it pursuant to Section 8.01
and shall apply such deposited money through the Paying Agent and in accordance with this Indenture
to the payment of amounts due on the Securities.

Repayment to Company.

     The Trustee and the Paying Agent shall promptly notify the Company of, and pay to the Company
upon the request of the Company, any excess money held by them at any time. The Trustee or the
Paying Agent, as the case may be, shall provide written notice to the Company of any money that has
been held by it and has, for a period of two (2) years, remained unclaimed for the payment of the
principal of, or any accrued and unpaid interest on, the Securities. The Trustee and the Paying
Agent shall pay to the Company upon the written request of the Company any money held by them for
the payment of the principal of, premium, if any, or any accrued and unpaid interest or additional
interest on, the notes that remains unclaimed for two (2) years; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment, may, at the expense
of the Company, cause to be published once in a newspaper of general circulation in the City of New
York or cause to be delivered to each holder, notice stating that such money remains unclaimed and
that, after a date specified therein, which shall not be less than thirty (30) days from the date
of such publication or delivery, any unclaimed balance of such money then remaining will be repaid
to the Company. After payment to the Company, Securityholders entitled to the money must look to
the Company for payment as general creditors, subject to applicable law, and all liability of the
Trustee and the Paying Agent with respect to such money and payment shall, subject to applicable
law, cease.

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Reinstatement.

     If the Trustee or Paying Agent is unable to apply any money in accordance with
Sections 8.01 and 8.02 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, the obligations of the Company under this Indenture and the Securities shall be
revived and reinstated as though no deposit had occurred pursuant to Sections 8.01 and
8.02 until such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Sections 8.01 and 8.02; provided, however, that if the Company has
made any payment of amounts due with respect to any Securities because of the reinstatement of its
obligations, then the Company shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the money held by the Trustee or Paying Agent.

AMENDMENTS

Without Consent of Holders.

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

          to comply with Sections 5.01 and 10.12;

          to make any changes or modifications to this Indenture necessary in connection with the
registration of the public offer and sale of the Securities under the Securities Act
pursuant to the Registration Rights Agreement or the qualification of this Indenture under
the TIA;

          to secure the obligations of the Company in respect of the Securities;

          to add to the covenants of the Company described in this Indenture for the benefit of
Securityholders or to surrender any right or power conferred upon the Company; and

          to make provisions with respect to adjustments to the Conversion Rate as required by
this Indenture or to increase the Conversion Rate in accordance with this Indenture.

     In addition, the Company and the Trustee may enter into a supplemental indenture without the
consent of Holders of the Securities to (i) cure any ambiguity, defect, omission or inconsistency
in this Indenture in a manner that does not, individually or in the aggregate with all other
modifications made or to be made to the Indenture, adversely affect the rights of any Holder; or
(ii) conform this Indenture to the description of the Securities contained in the Offering
Memorandum of the Company, dated [•], 2009.

With Consent of Holders.

     The Company, with the consent of the Trustee, may amend or supplement this Indenture or the
Securities without notice to any Securityholder but with the written consent of the Holders of at
least a majority in aggregate principal amount of the outstanding Securities. Subject to
Sections 6.04 and 6.07, the Holders of a majority in aggregate principal amount of
the

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outstanding Securities may, by notice to the Trustee, waive compliance by the Company with any
provision of this Indenture or the Securities without notice to any other Securityholder.
Notwithstanding anything herein to the contrary, without the consent of each Holder of each
outstanding Security affected, an amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may not:

     change the stated maturity of the principal of, or the payment date of any installment of
interest or additional interest on, any Security;

     reduce the principal amount of, or any premium, interest or additional interest on, any
Security;

     change the place, manner or currency of payment of principal of, or any premium, interest or
additional interest on, any Security;

     impair the right to institute suit for the enforcement of any payment on, or with respect to,
or of the conversion of, any Security;

     modify, in a manner adverse to Holders, the provisions with respect to the right of Holders
pursuant to Article III to require the Company to repurchase Securities upon the occurrence
of a Fundamental Change;

     modify the provisions of Section 2.18 in a manner adverse to Holders;

     adversely affect the right of Holders to convert Securities in accordance with
Article X;

     reduce the percentage of the aggregate principal amount of the outstanding Securities whose
Holders must consent to a modification to or amendment of any provision of this Indenture or the
Securities;

     reduce the percentage of the aggregate principal amount of the outstanding Securities whose
Holders must consent to a waiver of compliance with any provision of this Indenture or the
Securities or a waiver of any Default or Event of Default; or

     modify the provisions of this Indenture with respect to modification and waiver (including
waiver of a Default or an Event of Default), except to increase the percentage required for
modification or waiver or to provide for the consent of each affected Holder.

     Promptly after an amendment, supplement or waiver under Section 9.01 or this
Section 9.02 becomes effective, the Company shall deliver, or cause to be delivered, to
Securityholders a notice briefly describing such amendment, supplement or waiver. Any failure of
the Company to deliver such notice shall not in any way impair or affect the validity of such
amendment, supplement or waiver.

     It shall not be necessary for the consent of the Holders under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof.

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Compliance with Trust Indenture Act.

     Every amendment, waiver or supplement to this Indenture or the Securities shall comply with
the TIA as then in effect.

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. An amendment, supplement or waiver
becomes effective in accordance with its terms and thereafter binds every Holder.

     After an amendment, supplement or waiver becomes effective with respect to the Securities, it
shall bind every Holder unless such amendment, supplement or waiver makes a change that requires,
pursuant to Section 9.02, the consent of each Holder affected. In that case, the
amendment, supplement or waiver shall bind each Holder of a Security who has consented to it and,
provided that notice of such amendment, supplement or waiver is reflected on a Security that
evidences the same debt as the consenting Holder’s Security, every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the consenting Holder’s Security.

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 as directed and prepared by the Company about the changed terms and return
it to the Holder. Alternatively, if the Company so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new Security that reflects the changed
terms.

Trustee Protected.

     The Trustee shall sign any amendment, supplemental indenture or waiver authorized pursuant to
this Article IX; provided, however, that the Trustee need not sign any amendment,
supplement or waiver authorized pursuant to this Article IX that adversely affects the
Trustee’s rights, duties, liabilities or immunities. The Trustee shall be entitled to receive and
conclusively rely upon an Opinion of Counsel as to legal matters and an Officer’s Certificate as to
factual matters that any supplemental indenture, amendment or waiver is permitted or authorized
pursuant to this Indenture.

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Effect of Supplemental Indentures.

     Upon the due execution and delivery of any supplemental indenture in accordance with this
Article IX, this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes, and, except as set forth in
Sections 9.02 and 9.04, every Holder of Securities shall be bound thereby.

CONVERSION

Conversion Privilege; Restrictive Legends.

     Subject to the provisions of Article III, the Securities shall be convertible into
Cash, shares of Common Stock or a combination of Cash and shares of our common stock, at the
Company’s election, in accordance with this Article X at any time prior to stated maturity
or repurchase (the “Conversion Obligation”).

     Notwithstanding anything herein to the contrary, the right to convert the Securities pursuant
to this Article X shall terminate at the close of business on the Business Day immediately
preceding the Maturity Date.

     The initial Conversion Rate shall be [•] shares of Common Stock per $1,000 principal amount of
Securities. The Conversion Rate shall be subject to adjustment in accordance with Sections
10.06 through 10.15.

     A Holder may convert a portion of the principal amount of a Security if such portion is $1,000
principal amount or an integral multiple of $1,000 principal amount. Provisions of this Indenture
that apply to conversion of all of a Security also apply to conversion of a portion of such
Security.

     Any shares of Common Stock that are issued upon conversion of a Security shall bear the
Private Placement Legend until the earlier of the second anniversary of the later of the Issue Date
and the last date on which the Company or any Affiliate was the owner of such shares or the
Security (or any predecessor security) from which such shares were converted (or such shorter
period of time as permitted by Rule 144(k) under the Securities Act or any successor provision
thereunder) (or such longer period of time as may be required under the Securities Act or
applicable state securities laws, as set forth in an Opinion of Counsel, unless otherwise agreed by
the Company and the Holder thereof) (or, if earlier, the date such shares are sold pursuant to
Rule 144 or pursuant to an effective registration statement under the Securities Act).

Conversion Procedure.

     To convert a Security, a Holder must satisfy the requirements of Paragraph 7 of the
Securities. Each Security shall be convertible at the office of the Conversion Agent into fully
paid and nonassessable shares (calculated to the nearest 1/100th of a share) of Common Stock at the
Conversion Rate therefor, subject to the Company’s rights pursuant to this Section
10.02(A).

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     Notwithstanding any other provision of this Indenture or the Securities, all Holders’ rights
with respect to the conversion of the Securities and the Company’s Conversion Obligation are
subject, in their entirety, to the Company’s right, in its sole discretion, to elect to satisfy its
Conversion Obligation as provided in this Section 10.02(A).

     The Company shall not issue any fraction of a share of Common Stock in connection with any
conversion of Securities, but instead shall, subject to this Section 10.02(A), make a Cash payment
equal to such fraction multiplied by the daily VWAP of the Common Stock on (i) the Conversion Date,
in the event that the Daily Settlement Amount is computed pursuant to clause (1) below, and (ii)
the last day of the applicable Settlement Period, in the event that the Daily Settlement Amount is
computed pursuant to clauses (2) or (3) below.

     Before any Holder of a Security shall be entitled to convert the same into Common Stock, such
Holder shall, in the case of Securities issued in global form, comply with the procedures of the
Depositary in effect at that time, and in the case of certificated Securities, surrender such
Securities, duly endorsed to the Company or in blank, at the office of the Conversion Agent, and
shall give written notice to the Company at said office or place in the form of the Conversion
Notice attached to the Security (the “Conversion Notice”) that such Holder elects to convert the
same and shall state in writing therein the principal amount of Security to be converted and the
name or names (with addresses) in which such Holder wishes the certificate or certificates for
Common Stock to be issued. Before any such conversion, a Holder also shall pay all funds required,
if any, relating to interest on the Securities, as provided in Section 10.02(C), and all
taxes or duties, if any, as provided in Section 10.04. A Security shall be deemed to have
been converted as of the close of business on the date on which all of the foregoing requirements
have been satisfied (such date, the “Conversion Date”).

     Except to the extent that the Company makes the Irrevocable Payment Election, the Company may
elect to deliver shares of Common Stock, Cash or a combination of Cash and shares of Common Stock
in satisfaction of a Conversion Obligation by providing the Holder and the Trustee with notice of
the method of settlement at any time on or before the close of business on the second Trading Day
following the Conversion Date; provided, however, that the Company will only be permitted to make a
single election for all Securities for which the Conversion Date is on or after the 35th Scheduled
Trading Day preceding the Maturity Date, and such election shall be made on or before the close of
business on the Trading Day immediately preceding such 35th Scheduled Trading Day. Any such notice
that includes an election to settle a conversion in the manner described in clause (3) below will
state the maximum number of shares of Common Stock that may be delivered in respect of such
conversion after giving effect to the Nasdaq Share Limitation on delivery of shares contained in
the last paragraph of this Section 10.02(A) if the Company believes, in its reasonable
judgment, that such limitation will apply. If the Company does not make such election, all
Conversion Obligations will be settled in shares of Common Stock as set forth in clause (1) below.
Settlement of Conversion Obligations (regardless of whether made solely in Cash, solely in shares
of Common Stock or a combination thereof) will occur on the third Trading Day following the final
Settlement Period Trading Day of the Settlement Period.

     The Company will settle any Conversion Obligation as follows:

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     (1) if the Company elects to satisfy the entire Conversion Obligation in shares of
Common Stock only, the Company will deliver to the Holder for each $1,000 principal amount
of the Securities converted, a number of shares of Common Stock equal to the Conversion Rate
in effect on the Conversion Date (plus Cash in lieu of fractional shares, if applicable, in
accordance with this Section 10.02);

     (2) if the Company elects to satisfy the entire Conversion Obligation in Cash only, the
Company will deliver to the Holder for each $1,000 principal amount of the Securities
converted Cash in an amount equal to the Conversion Value; and

     (3) if the Company elects to satisfy the Conversion Obligation in a combination of Cash
and shares of Common Stock, the Company will deliver to the Holder for each $1,000 principal
amount of the Securities converted, Cash and shares of Common Stock, if applicable, equal to
the sum of the Daily Settlement Amounts for each of the Settlement Period Trading Days
during the related Settlement Period (plus Cash in lieu of fractional shares if applicable,
pursuant to this Section 10.02).

     However, at any time on or before the 35th Scheduled Trading Day immediately preceding the
Maturity Date, the Company may irrevocably elect (the “Irrevocable Payment Election”), in its sole
discretion and without the consent of any Holder, to satisfy conversions of the Securities in the
manner set forth in clause (3) above.

     In connection with any election to settle a Conversion Obligation in accordance with clause
(3) above, the Company will not issue shares of Common Stock in excess of 19.99% of the Common
Stock outstanding immediately prior to the Issue Date in compliance with the continued listing
requirements of the Nasdaq Global Market (the “Nasdaq Share Limitation”). Any remaining Conversion
Obligation will be comprised of Cash (based on the VWAP on the Trading Day immediately preceding
the date on which such shares of Common Stock would be required to be delivered but for the Nasdaq
Share Limitation).

     Upon making the Irrevocable Payment Election, the Company will notify the Trustee and the
Holders through the Trustee of such election. The Company will also, simultaneously with providing
the notice to the Trustee, issue a press release, through a reputable national newswire service,
containing the same information as the notice, and will make the conversion information available
on the Company’s website.

     From and after the close of business on the Conversion Date of a Security, the person in whose
name any certificate representing Common Stock issued pursuant to this Section 10.02, 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 10.02(B).

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     Except as provided in this Section 10.02(C), a converting Holder of Securities shall
not be entitled to receive any accrued and unpaid interest (including additional interest, if any)
on any such Securities being converted. By delivery to the Holder of the number of shares of
Common Stock, Cash or combination of Common Stock and Cash, or other consideration issuable or
payable upon conversion in accordance with this Article X, any accrued and unpaid interest
(including 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 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 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 record date preceding any interest
payment date to the opening of business on such interest payment date shall 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 on the Securities being
surrendered for conversion; provided, however, the Holder will not be required to pay the Company,
at the time that Holder surrenders those Securities for conversion, the amount of interest payable
by the Company on such interest payment date (i) if the Company has specified a Fundamental Change
Repurchase Date that is after the record date but prior to the corresponding interest payment date,
(ii) to the extent of any overdue interest, if any overdue interest remains unpaid at the time of
conversion with respect to such Securities, or (iii) in respect of any conversions that occur after
the record date immediately preceding the Maturity Date. Except as provided in this Section
10.02(C), no adjustments in respect of payments of interest (including 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.

     If a Holder converts more than one Security at a time, the number of full shares of Common
Stock issuable upon such conversion, if any, shall be based on the aggregate principal amount of
the Securities converted.

     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 10.04 hereof), a new Security or Securities in authorized
denominations in an aggregate principal amount equal to the unconverted portion of the surrendered
Certificated Securities.

     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.

Fractional Shares.

     The Company will deliver Cash in lieu of any fractional shares of Common Stock issuable in
connection with a conversion of Securities by delivery of a check in an amount equal to the value
of such fraction computed on the basis of the VWAP (i) on the Conversion Date, in the event that
such amount is computed pursuant to Section 10.02(A)(1) and (ii) on the last day

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of the applicable Settlement Period in the event that such amount is computed pursuant to
Section 10.02(A)(2) or (3).

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 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.

     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.

Company to Provide Stock.

     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 Notes then outstanding into 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
10.04, taxes with respect to the issue thereof.

     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 Nasdaq Global
Market, the Company will use its commercially reasonable efforts, if permitted by the rules of the
Nasdaq Global Market, to have and keep approved for quoting on the Nasdaq Global Market (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.

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     The Company shall comply with all securities laws regulating the offer and delivery of shares
of Common Stock upon conversion of Securities

Adjustment of Conversion Rate.

     The Conversion Rate shall be subject to adjustment from time to time as follows:

     In case the Company shall (1) pay a dividend in shares of Common Stock to all
holders of Common Stock, (2) make a distribution in shares of Common Stock to all
holders of Common Stock, (3) subdivide the outstanding shares of Common Stock into a
greater number of shares of Common Stock or (4) combine the outstanding shares of
Common Stock into a smaller number of shares of Common Stock, the Conversion Rate
shall be adjusted by multiplying the Conversion Rate in effect immediately prior to
close of business on the Ex Date or effective date, as applicable, of such dividend,
distribution, subdivision or combination, by the number of shares of Common Stock
that a person who owns only one share of Common Stock immediately before such Ex
Date or effective date, as applicable, of such dividend, distribution, subdivision
or combination and who is entitled to participate in such dividend, distribution,
subdivision or combination would own immediately after giving effect to such
dividend, distribution, subdivision or combination (without giving effect to any
arrangement pursuant to such dividend, distribution, subdivision or combination not
to issue fractional shares of Common Stock). Any adjustment made pursuant to this
Section 10.06(a) shall become effective immediately after such Ex Date, in
the case of a dividend or distribution, and shall become effective immediately after
such effective date, in the case of a subdivision or combination.

     In case the Company shall issue rights or warrants to all or substantially all
holders of Common Stock, entitling them, for a period expiring not more than sixty
(60) days immediately following the date of issuance of such rights or warrants, to
subscribe for or purchase shares of Common Stock (or securities convertible into or
exchangeable or exercisable for Common Stock), at a price per share (or having a
conversion, exchange or exercise price per share) that is less than the current
market price (as determined pursuant to Section 10.06(g)) per share of
Common Stock on the trading day immediately preceding the announcement of the
issuance of such rights or warrants, the Conversion Rate shall be increased by
multiplying the Conversion Rate in effect immediately prior to the Ex Date
corresponding to such record date by a fraction of which (A) the numerator shall be
the sum of (I) the number of shares of Common Stock outstanding immediately prior to
the open of business on such Ex Date and (II) the aggregate number of shares (the
“Underlying Shares”) of Common Stock underlying all such issued rights or
warrants (whether by exercise, conversion, exchange or otherwise), and (B) the
denominator shall be the sum of (I) number of shares of Common Stock outstanding
immediately prior to the open of business on such Ex Date and (II) the number of
shares of Common Stock which the aggregate exercise, conversion, exchange or other
price at which the Underlying Shares may be subscribed for or purchased pursuant to
such rights or warrants would purchase at such current market price per share of
Common Stock; provided, however, no adjustment shall be made pursuant to this
Section 10.06(b) solely by reason of a distribution of rights pursuant to a
stockholders’ rights plan, provided the Company has complied with the provisions of
Section 10.14 with respect to such stockholders’ rights plan and
distribution. Such increase shall become effective immediately prior to the open of
business on such Ex Date. In no event shall the Conversion Rate be decreased
pursuant to this 

Section 10.06(b).

     Except as set forth in the immediately following paragraph, in case the Company
shall dividend or distribute to all or substantially all holders of Common Stock
shares of Capital Stock of the Company or any existing or future Subsidiary (other
than Common Stock), evidences of Indebtedness or other assets (other than dividends
or distributions requiring an adjustment to the Conversion Rate in accordance with Sections
10.06(d) or

 - 45 - 

 

10.06(e)), or shall dividend or distribute to all or
substantially all holders of Common Stock rights or warrants to subscribe for or
purchase securities (other than dividends or distributions of rights or warrants
requiring an adjustment to the Conversion Rate in accordance with Section
10.06(b)), then in each such case the Conversion Rate shall be increased by
multiplying the Conversion Rate in effect immediately prior to the open of business
on the Ex Date corresponding to the record date for the determination of
stockholders entitled to such dividend or distribution by a fraction of which
(A) the numerator shall be the current market price per share of Common Stock (as
determined pursuant to Section 10.06(g)) on such record date and (B) the
denominator shall be an amount equal to (I) such current market price per share of
Common Stock less (II) the fair market value (as determined in good faith by the
Board of Directors, whose determination shall be conclusive and described in a Board
Resolution), on such Ex Date, of the portion of the shares of Capital Stock,
evidences of Indebtedness, assets, rights and warrants to be dividended or
distributed applicable to one share of Common Stock, such increase to become
effective immediately prior to the open of business on such Ex Date; provided,
however, that if such denominator is equal to or less than zero, then, in lieu of
the foregoing adjustment to the Conversion Rate, adequate provision shall be made so
that each Holder shall have the right to receive upon conversion of its Securities,
in addition to any consideration otherwise payable as herein provided upon such
conversion, an amount of shares of Capital Stock, evidences of Indebtedness, assets,
rights and/or warrants that such Holder would have received had such Holder
converted all of its Securities on such record date. Notwithstanding the foregoing,
in the event that the Company shall distribute rights or warrants (other than
distributions of rights or warrants requiring an adjustment to the Conversion Rate
in accordance with Section 10.06(b) and other than any stockholders’ rights
plan the Company may have in effect at such time) (collectively, “Rights”) pro rata
to holders of Common Stock, the Company may, in lieu of making any adjustment
pursuant to this Section 10.06(c), make proper provision so that each Holder
of a Security who converts such Security (or any portion thereof) on or after the
record date for such distribution and prior to the expiration or redemption of the
Rights shall be entitled to receive upon such conversion, in addition to the shares
of Common Stock issuable (and Cash, if any, payable) or combination of Cash and
shares of Common Stock payable upon such conversion (the “Conversion Shares”), the
same number of Rights to which a holder of a number of shares of Common Stock equal
to the number of shares of Conversion Shares would be entitled at the time of such
conversion in accordance with the terms and provisions of and applicable to the
Rights. Notwithstanding the first sentence of this Section 10.06(c), a
distribution of rights pursuant to a stockholders’ rights plan shall not constitute
a dividend or distribution requiring an adjustment to the Conversion Rate pursuant
to the first sentence of this Section 10.06(c), provided that (1) such
rights have not separated from the Common Stock at the time of such distribution;
and (2) the Company has made adequate provision in accordance with Section
10.14 for Holders to receive such rights upon conversion. In no event shall the
Conversion Rate be decreased pursuant to this Section 10.06(c).

     Notwithstanding anything to the contrary in this Section 10.06(c), if,
in a distribution requiring an adjustment to the Conversion Rate pursuant to the
immediately preceding paragraph, the property distributed by the Company to all
Holders of Common Stock consists solely of Capital Stock, or similar equity
interests in, a Subsidiary or other business unit of the Company, which Capital
Stock or interests are, or will be upon completion of such distribution, listed on a
national securities exchange or quoted on an automated quotation system and closing
sale prices for such Capital Stock or interests are readily available (a
“Spin-Off”), then in lieu of adjusting the Conversion Rate in accordance with the
immediately preceding paragraph, the Conversion Rate shall be increased (subject to the other terms of this
Indenture) by multiplying the Conversion Rate in effect

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immediately prior to the
opening of business on the thirteenth (13th) Trading Day following the record date
for such distribution by a fraction (I) whose numerator is the sum of (A) the
average of the Closing Sale Prices per share of Common Stock for the ten (10)
consecutive Trading Days commencing on, and including, the third (3rd) Trading Day
after the record date for such distribution and (B) the product of (i) the average
of the Closing Sale Prices per share or unit, as applicable, of such Capital Stock
or interests (determined as if such shares or units were shares of Common Stock for
purposes of the definition of “Closing Sale Price”) for the for the ten (10)
consecutive Trading Days commencing on, and including, the third (3rd) Trading Day
after the record date for such distribution and (ii) number of shares or units, as
applicable, of such Capital Stock or interests distributed per share of Common
Stock; and (II) whose denominator is the average of the Closing Sale Prices per
share of Common Stock for the ten (10) consecutive Trading Days commencing on, and
including, the third (3rd) Trading Day after the record date for such distribution.
The average Closing Sale Prices referred to in the immediately preceding sentence
shall be subject to appropriate adjustments, in the Company’s good faith
determination, to account for other distributions, stock splits and combinations,
stock dividends, reclassifications and similar events. Each adjustment to the
Conversion Rate made pursuant to this paragraph shall become effective immediately
after the open of business on the thirteenth (13th) Trading Day following the record
date for such distribution.

     Rights or warrants distributed by the Company to all holders of Common Stock
entitling the holders thereof to subscribe for or purchase shares of the Company’s
Capital Stock (either initially or under certain circumstances), which rights,
options or warrants, until the occurrence of a specified event or events (“Trigger
Event”): (i) are deemed to be transferred with such shares of Common Stock;
(ii) are not exercisable; and (iii) are also issued in respect of future issuances
of Common Stock, shall be deemed not to have been distributed for purposes of this
Section 10.06 (and no adjustment to the Conversion Rate under this
Section 10.06 will be required) until the occurrence of the earliest Trigger
Event, whereupon such rights, options and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Conversion
Rate shall be made under this Section 10.06(c). In no event shall the
Conversion Rate be decreased pursuant to this Section 10.06(c).

     In case the Company shall, by dividend or otherwise, at any time make a
distribution of Cash (excluding any Cash that is distributed as part of a
distribution requiring a Conversion Rate adjustment pursuant to Section
10.06(e)) to all or substantially all holders of Common Stock, the Conversion
Rate shall be increased by multiplying the Conversion Rate in effect immediately
prior to the open of business on the Ex Date for such distribution by a fraction
(A) whose numerator shall be the current market price per share of Common Stock (as
determined pursuant to Section 10.06(g)) on the trading date immediately
preceding the Ex Date and (B) whose denominator shall be an amount equal to
(I) such current market price per share of Common Stock less (II) the amount of
the distribution per share of Common Stock; provided, however, that the Conversion
Rate shall not be adjusted pursuant to this Section 10.06(d) to the extent,
and only to the extent, such adjustment would cause the Conversion Price to be less
than $0.0001 (which minimum amount shall be subject to appropriate adjustments, in
the good faith determination of the

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Board of Directors), to account for stock splits
and combinations, stock dividends, reclassifications and similar events); provided
further that, if the denominator of such fraction shall be equal to or less than
zero, the Conversion Rate shall be instead adjusted so that the Conversion Price is
equal to $0.0001 (as adjusted in accordance with the immediately preceding proviso).
An adjustment to the Conversion Rate pursuant to this Section 10.06(d)
shall become effective immediately prior to the open of business on such Ex Date.
In no event shall the Conversion Rate be decreased pursuant to this Section
10.06(d).

     In case the Company or any Subsidiary shall 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 where the sum of the
aggregate amount of such Cash distributed and the aggregate fair market value (as
determined in good faith by the Company), 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 Closing Sale Price per share of Common Stock on the
first Trading Day after 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 the
Conversion Rate shall be increased by multiplying the Conversion Rate in effect
immediately prior to the close of business on the first Trading Day after the
Expiration Date by a fraction (A) whose numerator is equal to the sum of (I) the
Aggregate Amount and (II) the product of (a) the Closing Sale Price per share of
Common Stock on the first Trading Day after the Expiration Date and (b) an amount
equal to (i) the number of shares of Common Stock outstanding as of the last time
(the “Expiration Time”) at which tenders or exchanges could have been made pursuant
to such tender offer or exchange offer (including all Purchased Shares) less
(ii) the Purchased Shares and (B) whose denominator is 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) such Closing Sale Price per share of
Common Stock.

     An increase, if any, to the Conversion Rate pursuant to this Section
10.06(e) shall become effective immediately prior to the open of business on the
Business Day following the first Trading Day after 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 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
10.06(e) 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 10.06(e).

     In addition to the foregoing adjustments in subsections (a),
(b), (c), (d) and (e) above, the Company, from time
to time and to the extent permitted by law and by the continued listing requirements
of the NASDAQ Global Market or any other securities exchange in which the Common
Stock may then be listed, may increase the Conversion Rate by any amount for a
period of at least twenty (20) days or such longer period as may be required by law,
if the Board of Directors has made a determination, which determination shall be
conclusive, that such increase would be in the best interests of the Company,
provided, that such increase will not cause the then effective Conversion Price to
be less than

 - 48 - 

 

$0.0001. Such Conversion Rate increase shall be irrevocable during
such period. The Company shall give notice to the Trustee and cause notice of such
increase to be delivered to each Holder of Securities at such Holder’s address as
the same appears on the registry books of the Registrar, at least fifteen (15) days
prior to the date on which such increase commences.

     For the purpose of any computation under subsections (a), (b),
(c) or (d) above of this Section 10.06, the “current market
price” per share of Common Stock on any date shall be deemed to be the average of
the Closing Sale Prices for the ten (10) consecutive Trading Days ending on, but
excluding, the earlier of such date and the close of business on the trading day
immediately preceding the Ex Date with respect to the issuance or distribution
requiring such computation; provided, however, that such current market price per
share of Common Stock shall be appropriately adjusted by the Company, in its good
faith determination, 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 during the period that begins on, and includes, the first day of such
ten (10) consecutive Trading Days and ends on, and includes, the date when the
adjustment to the Conversion Rate on account of the event requiring the computation
of such current market price becomes effective.

     The term “Ex Date,” (i) when used with respect to any issuance or distribution,
means the first date on which the Common Stock trades the regular way on the
relevant exchange or in the relevant market from which the Closing Sale Price was
obtained without the right to receive such issuance or distribution, (ii) when used
with respect to any subdivision or combination of shares of Common Stock, means the
first date on which the Common Stock trades the regular way on such exchange or in
such market after the time at which such subdivision or combination becomes
effective, and (iii) when used with respect to any tender offer or exchange offer
means the first date on which the Common Stock trades the regular way on such
exchange or in such market after the expiration time of such tender offer or
exchange offer (as it may be amended or extended). For purposes of determining the
Ex Date with respect to an issuance or distribution under this Indenture, the
Company may conclusively assume (and such assumption shall be binding upon the
Holders) that purchases and sales of the relevant security with respect to which
such issuance or distribution is being made will settle based on the customary
settlement cycle for purchases or sales of such security.

     Unless the context requires otherwise, the term “record date” means, 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).

 - 49 - 

 

No Adjustment.

     Notwithstanding anything herein or in the Securities to the contrary, in no event shall the
Conversion Rate be adjusted pursuant to this Indenture or the Securities to the extent such
adjustment shall reduce the Conversion Price to an amount that is less than the par value per share
of Common Stock.

     No adjustment in the Conversion Rate pursuant to Section 10.06 shall be required until
cumulative adjustments amount to one percent (1%) or more of the Conversion Rate as last adjusted
(or, if never adjusted, the initial Conversion Rate); provided, however, that any adjustments to
the Conversion Rate which by reason of this Section 10.07 are not required to be made shall
be carried forward and taken into account in any subsequent adjustment to the Conversion Rate;
provided further, that at the end of each fiscal year of the Company, beginning with the fiscal
year ending on December 31, 2009 and on and after the date that is 35 scheduled trading days prior
to the Maturity Date, any adjustments to the Conversion Rate that have been, and at such time
remain, deferred pursuant to this Section 10.07 shall be given effect, and such
adjustments, if any, shall no longer be carried forward and taken into account in any subsequent
adjustment to the Conversion Rate; provided further, that if a Fundamental Change or Make-Whole
Fundamental Change occurs, then, in each case, any adjustments to the Conversion Rate that have
been, and at such time remain, deferred pursuant to this Section 10.07 shall be given
effect, and such adjustments, if any, shall no longer be carried forward and taken into account in
any subsequent adjustment to the Conversion Rate. All calculations under this Article X
shall be made to the nearest cent or to the nearest one-millionth of a share, as the case may be.

     If any rights, options or warrants issued by the Company and requiring an adjustment to the
Conversion Rate in accordance with Section 10.06 are only exercisable upon the occurrence
of certain triggering events, then the Conversion Rate will not be adjusted as provided in
Section 10.06 until the earliest of such triggering event occurs. Upon the expiration or
termination of any such rights, options or warrants without the exercise of such rights, options or
warrants, the Conversion Rate then in effect shall be adjusted immediately to the Conversion Rate
which would have been in effect at the time of such expiration or termination had such rights,
options or warrants, to the extent outstanding immediately prior to such expiration or termination,
never been issued.

     If any dividend or distribution is declared and the Conversion Rate is adjusted pursuant to
Section 10.06 on account of such dividend or distribution, but such dividend or
distribution is thereafter not paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate which would then be in effect had such dividend or distribution not been declared.

     No adjustment to the Conversion Rate need be made pursuant to Section 10.06 for a
transaction if each Holder is to participate in the transaction, at substantially the same time
that holders of Common Stock participate in such transaction, without conversion as if such Holder
held a number of shares of Common Stock equal to a fraction whose numerator is the product of
the Conversion Rate in effect at the Ex Date or effective date, as applicable, of the transaction
(without giving effect to any adjustment pursuant to Section 10.06 on account of such
transaction) and the aggregate principal amount of Securities held by such Holder and whose
denominator is one thousand (1,000).

 - 50 - 

 

     Notwithstanding anything herein to the contrary, in no event shall the Conversion Rate be
increased pursuant to Section 10.06(b), Section 10.06(c), Section 10.06(d)
or Section 10.06(e) to the extent, but only to the extent, such increase shall cause the
Conversion Rate applicable to such Security to exceed [•] shares per $1,000 principal amount (the
“BCF Adjustment Cap”); provided, however, that the BCF Adjustment Cap shall be adjusted in the same
manner in which the Conversion Rate is to be adjusted pursuant to this Article X for stock
splits and combinations, stock dividends, reclassifications and similar events.

Other Adjustments.

     In the event that, as a result of an adjustment made pursuant to this Article X, the
Holder of any Security thereafter surrendered for conversion shall become entitled to receive any
shares of Capital Stock other than shares of Common Stock, thereafter the Conversion Rate of such
other shares so receivable upon conversion of any 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 this Article X.

Adjustments for Tax Purposes.

     Except as prohibited by law or by the continued listing requirements of the NASDAQ Global
Market or any other securities exchange in which the Common Stock may then be listed, the Company
may (but is not obligated to) make such increases in the Conversion Rate, in addition to those
required by Section 10.06 hereof, as it determines to be advisable in order that any stock
dividend, subdivision of shares, distribution of rights to purchase stock or securities or
distribution of securities convertible into or exchangeable for stock made by the Company or to its
stockholders will not be taxable to the recipients thereof or in order to diminish any such
taxation.

Notice of Adjustment.

     Whenever the Conversion Rate is adjusted, the Company shall promptly deliver, or cause to be
delivered, to Holders at the addresses appearing on the Registrar’s books a notice of the
adjustment and file with the Trustee an Officer’s Certificate briefly stating the facts requiring
the adjustment and the manner of computing it. The certificate shall be conclusive evidence of the
correctness of such adjustment.

Notice of Certain Transactions.

     In the event that:

     (1) the Company takes any action, or becomes aware of any event, which would require an
adjustment in the Conversion Rate,

     (2) the Company takes any action that would require a supplemental indenture pursuant
to Section 10.12, or

     (3) there is a dissolution or liquidation of the Company,

 - 51 - 

 

the Company shall deliver to Holders at the addresses appearing on the Registrar’s books and the
Trustee a written notice stating the proposed record, effective or expiration date, as the case may
be, of any transaction referred to in clause (1), (2) or (3) of this
Section 10.11. The Company shall deliver such notice at least twenty (20) calendar days
(or, in the case of any event that would require an adjustment in the Conversion Rate pursuant to
Sections 10.06(b), 10.06(c), 10.06(d) or 10.06(e), forty five (45)
calendar days) before such date; however, failure to deliver such notice or any defect therein
shall not affect the validity of any transaction referred to in clause (1), (2) or
(3) of this Section 10.11.

Effect of Reclassifications, Consolidations, Mergers, Binding Share Exchanges or Sales on
Conversion Privilege.

     If any of the following shall occur, namely: (i) any reclassification or change in the Common
Stock issuable upon conversion of Securities (other than a change only 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 of Common Stock), (ii) any consolidation, amalgamation, statutory arrangement. merger
or binding share exchange to which the Company is a party other than a merger in which the Company
is the continuing Person and which does not result in any reclassification of, or change (other
than a change in name, or 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) in, the Common Stock or (iii) any sale,
transfer, lease, conveyance or other disposition of all or substantially all of the property or
assets of the Company, or of the Company and the Subsidiaries on a consolidated basis, in each case
pursuant to which the Common Stock would be converted into or exchanged for, or would constitute
solely the right to receive, Cash, securities or other property, then the Company or such successor
or purchasing Person, as the case may be, shall execute and deliver to the Trustee a supplemental
indenture in form reasonably satisfactory to the Trustee 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, to the extent the Holder would have otherwise received Common
Stock upon conversion, into the kind and amount of Cash, securities or other property
(collectively, “Reference Property”) receivable upon such reclassification, change, consolidation,
amalgamation, statutory arrangement, 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, amalgamation, statutory arrangement, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition (assuming, if holders of Common Stock
shall have the opportunity to elect the form of consideration to receive pursuant to such
reclassification, change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, that the Collective Election shall have been made with respect to such
election). At and after the effective time of such consolidation, amalgamation, statutory
arrangement, merger, binding share exchange, sale, transfer, lease, conveyance or disposition, the
Securities will continue to be payable in Cash, Reference Property or a combination of Cash and
Reference Property, at the Company’s election, at the Conversion Rate, as adjusted pursuant to this
Indenture.

 - 52 - 

 

     If holders of Common Stock shall have the opportunity to elect the form of consideration to
receive pursuant to such reclassification, change, consolidation, amalgamation, statutory
arrangement, merger, binding share exchange, sale, transfer, lease, conveyance or disposition, then
the Company shall make adequate provision to give Holders, treated as a single class, a reasonable
opportunity to elect (the “Collective Election”) the form of such consideration for purposes of
determining the composition of the Reference Property referred to in the immediately preceding
sentence, and once such election is made, such election shall apply to all Holders after the
effective time of such reclassification, change, consolidation, amalgamation, statutory
arrangement, merger, binding share exchange, sale, transfer, lease, conveyance or disposition.
Such Collective Election shall be determined based on the weighted average of the elections made by
Holders of the Securities who participate in such determination, shall be subject to any
limitations to which all of the holders of Common Stock are subject, such as pro-rata reductions
applicable to any portion of the consideration payable in such reclassification, change,
consolidation, amalgamation, statutory arrangement, merger, binding share exchange, sale, transfer,
lease, conveyance or disposition, and shall be conducted in such a manner as to be completed by the
close of business on the actual effective date of such reclassification, change, consolidation,
amalgamation, statutory arrangement, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition. The Company shall provide notice of the opportunity to determine the
form of such consideration, as well as notice of the determination made by Holders, by issuing a
press release through a reputable national newswire service, and providing a copy of such notice to
the Trustee. The Company shall not become a party to any reclassification, change, consolidation,
amalgamation, statutory arrangement, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, the terms of which are inconsistent with this paragraph and the
immediately preceding paragraph.

     The supplemental indenture referred to in the first sentence of this Section 10.12
shall provide for adjustments of the Conversion Rate which shall be as nearly equivalent as may be
practicable to the adjustments of the Conversion Rate provided for in this Article X. The
foregoing, however, shall not in any way affect the right a Holder of a Security may otherwise
have, pursuant to Section 10.06(b) or Section 10.14, to receive rights or warrants
upon conversion of a Security. If, in the case of any such consolidation, amalgamation, statutory
arrangement, merger, binding share exchange, sale, transfer, lease, conveyance or disposition, the
stock or other securities and property (including Cash) receivable thereupon by a holder of Common
Stock includes shares of stock or other securities and property of a Person other than
the successor or purchasing Person, as the case may be, in such consolidation, amalgamation,
statutory arrangement, merger, binding share exchange, sale, transfer, lease, conveyance or
disposition, then such supplemental indenture shall also be executed by such other Person and shall
contain such additional provisions to protect the interests of the Holders of the Securities as the
Board of Directors in good faith shall reasonably determine necessary by reason of the foregoing
(which determination shall be described in a Board Resolution). The provisions of this Section
10.12 shall similarly apply to successive consolidations, mergers, binding share exchanges,
sales, transfers, leases, conveyances or dispositions.

     In the event the Company shall execute a supplemental indenture pursuant to this
Section 10.12, the Company shall promptly file with the Trustee an Officer’s Certificate
briefly stating the reasons therefor, the kind or amount of shares of stock or securities or
property (including Cash) receivable by Holders of the Securities upon the conversion of their
Securities

 - 53 - 

 

after any such reclassification, change, consolidation, amalgamation, statutory
arrangement, merger, binding share exchange, sale, transfer, lease, conveyance or disposition and
any adjustment to be made with respect thereto.

Trustee’s Disclaimer.

     The Trustee has no duty to determine when an adjustment under this Article X should be
made, how it should be made or what such adjustment should be, but may accept as conclusive
evidence of the correctness of any such adjustment, and shall be protected in relying upon, the
Officer’s Certificate with respect thereto which the Company is obligated to file with the Trustee
pursuant to Section 10.10 hereof. The Trustee makes no representation as to the validity
or value of any securities or assets issued upon conversion of Securities, and the Trustee shall
not be responsible for the failure by the Company to comply with any provisions of this
Article X.

     The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section 10.12, but
may accept as conclusive evidence of the correctness thereof, and shall be protected in relying
upon, the Officer’s Certificate with respect thereto which the Company is obligated to file with
the Trustee pursuant to Section 10.12 hereof.

Rights Distributions Pursuant to Stockholders’ Rights Plans.

     Upon conversion of any Security or a portion thereof, the Company shall make provision such
that the Holder thereof shall, to the extent such Holder is to receive shares of Common Stock upon
such conversion, receive, in addition to, and concurrently with the delivery of, the consideration
otherwise payable hereunder upon such conversion, the rights described in any future stockholders’
rights plan(s) of the Company then in effect, unless such rights have separated from the Common
Stock at the time of such conversion, in which case the Conversion Rate shall be adjusted upon such
separation in accordance with Section 10.06(c).

Adjustment to the Conversion Rate on November 15, 2008.

     If the arithmetic average of the daily VWAP per share of Common Stock for each of the 20
consecutive Trading Days ending on November 15, 2008 is less than the “Floor Price,” the
Conversion Rate shall be increased such that the Conversion Price would represent the greater
of (1) [•]% of such arithmetic average of the daily VWAP and (2) the Floor Price. This adjustment
to the Conversion Rate will become effective as of the open of business on November 15, 2008 or, if
that date is not a business day, the next business day. However, we will not adjust the Conversion
Price as described above if doing so would result in a Conversion Price that is greater than the
Conversion Price that would have otherwise been in effect on November 15, 2008.

     Subject to the continued listing standards of the NASDAQ Global Market, the Floor Price and
the VWAP shall be adjusted in accordance with the adjustments to the Conversion Rate described
under Section 10.06. No adjustment to the Floor Price or the VWAP shall be made as a
result of adjustments to the Conversion Rate described under Section 10.16. In no event
will

 - 54 - 

 

the limitations relating to the BCF Adjustment Cap, as set forth in Section 10.07,
affect the determination of the Floor Price or the VWAP.

     The “Floor Price” shall initially mean $[•], which is the closing sale price per share of the
Common Stock on the date of the Offering Memorandum.

     The Company shall notify the Holders and the Trustee in the manner provided in
Section 11.02 of any adjustment in the Conversion Rate under this Section 10.15.

Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection with Make-Whole
Fundamental Changes.

     Notwithstanding anything herein to the contrary, the Conversion Rate applicable to each
Security that is surrendered for conversion, in accordance with this Article X, at any time
during the period (the “Make-Whole Conversion Period”) that begins on, and includes, the date that
is thirty (30) calendar days prior to the date originally announced by the Company as the
anticipated effective date of a Make-Whole Fundamental Change (which anticipated effective date the
Company shall disclose, in good faith, in the written notice, public announcement and publication
referred to in Section 10.16(E)) and ends on, and includes, the date that is forty (40)
Business Days after the actual effective date of such Make-Whole Fundamental Change (or, if such
Make-Whole Fundamental Change also constitutes a Fundamental Change, the Fundamental Change
Repurchase Date applicable to such Fundamental Change) shall be increased to an amount equal to the
Conversion Rate that would, but for this Section 10.16, otherwise apply to such Security
pursuant to this Article X, plus an amount equal to the Make-Whole Applicable Increase;
provided, however, that such increase to the Conversion Rate shall not apply if such Make-Whole
Fundamental Change is announced by the Company but shall not be consummated.

     The additional consideration payable hereunder on account of any Make-Whole Applicable
Increase with respect to a Security surrendered for conversion is herein referred to as the
“Make-Whole Consideration.” For avoidance of doubt, the amount of the Make-Whole Consideration due
upon the conversion of a Security shall be based on the Settlement Period and VWAP applicable to
such conversion pursuant to Section 10.02.

     The Make-Whole Consideration due upon a conversion of a Security by a Holder shall be paid as
soon as practicable, but in no event later than third Business Day after the later of (1) the date
such Holder surrenders such Security for such conversion; and (2) the Effective Date of the
applicable Make-Whole Fundamental Change.

     As used herein, “Make-Whole Applicable Increase” shall mean, with respect to a Make-Whole
Fundamental Change, the amount, set forth in the following table, which corresponds to the
effective date of such Make-Whole Fundamental Change (the “Effective Date”) and the Applicable
Price of such Make-Whole Fundamental Change:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Effective Date	 
	 	 	[•],	 	 	[•],	 	 	[•],	 	 	[•],	 	 	[•],	 	 	[•],	 
	Applicable Price	 	2009	 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	2014	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 - 55 - 

 

provided, however, that:

     if the actual Applicable Price of such Make-Whole Fundamental Change is between two (2)
prices listed in the table above under the column titled “Applicable Price,” or if the
actual Effective Date of such Make-Whole Fundamental Change is between two dates listed in
the table above in the row immediately below the title “Effective Date,” then the Make-Whole
Applicable Increase for such Make-Whole Fundamental Change shall be determined by linear
interpolation between the Make-Whole Applicable Increases set forth for such two prices, or
for such two dates based on a three hundred and sixty five (365) day year, as applicable;

     if the actual Applicable Price of such Make-Whole Fundamental Change is greater than
$[•] per share (subject to adjustment as provided in Section 10.16(B)(iii)), or if
the actual Applicable Price of such Make-Whole Fundamental Change is less than $[•] per
share (subject to adjustment as provided in Section 10.16(B)(iii)), then the
Make-Whole Applicable Increase shall be equal to zero (0);

     if an event occurs that requires, pursuant to this Article X (other than solely
pursuant to this Section 10.16), an adjustment to the Conversion Rate, then, on the
date and at the time such adjustment is so required to be made, (A) each price set forth in
the table above under the column titled “Applicable Price” shall be deemed to be adjusted so
that such price, at and after such time, shall be equal to the product of (1) such price as
in effect immediately before such adjustment to such price and (2) a fraction whose
numerator is the Conversion Rate in effect immediately before such adjustment to the
Conversion Rate and whose denominator is the Conversion Rate to be in effect, in accordance
with this Article X, immediately after such adjustment to the Conversion Rate; and
(B) each Make-Whole Applicable Increase amount set forth in the table above shall be deemed
to be adjusted so that such Make-Whole Applicable Increase, at and after such time, shall be
equal to the product of (1) such Make-Whole Applicable Increase as in effect immediately
before such adjustment to such Make-Whole Applicable Increase and (2) a fraction whose
numerator is the Conversion Rate to be in effect, in accordance with this Article X,
immediately after such adjustment to the Conversion Rate and whose denominator is the
Conversion Rate in effect immediately before such adjustment to the Conversion Rate;

 - 56 - 

 

     in no event shall the Conversion Rate applicable to any Security be increased pursuant
to this Section 10.16 to the extent, but only to the extent, such increase shall
cause the Conversion Rate applicable to such Security to exceed [•] shares per $1,000
principal amount (the “BCF Make-Whole Cap”); provided, however, that the BCF Make-Whole Cap
shall be adjusted in the same manner in which, and for the same events for which, the
Conversion Rate is to be adjusted pursuant to this Article X; and

     in no event shall the Conversion Rate applicable to any Security be increased pursuant
to this Section 10.16 to the extent, but only to the extent, such increase shall not
be permitted by the continued listing standards of the NASDAQ Global Market; provided,
however, that any reduction, pursuant to this Section 10.16(B)(v), in such increase
to the Conversion Rate shall be made by the Company in the good faith judgment of its Board
of Directors and, to the extent practical, pro rata in accordance with the principal amount
of Securities surrendered for conversion in connection with the applicable Make-Whole
Fundamental Change.

     As used herein, “Applicable Price” shall have the following meaning with respect to a
Make-Whole Fundamental Change: (a) if such Make-Whole Fundamental Change constitutes a Common
Stock Change Make-Whole Fundamental Change and the consideration (excluding Cash payments for
fractional shares or pursuant to statutory appraisal rights) for the Common Stock in such
Make-Whole Fundamental Change consists solely of Cash, then the “Applicable Price” with respect to
such Make-Whole Fundamental Change shall be equal to the Cash amount paid per share of Common Stock
in such Make-Whole Fundamental Change; (b) if such Make-Whole Fundamental Change constitutes an
Asset Sale Make-Whole Fundamental Change and the consideration paid for the property and assets of
the Company or the Subsidiaries consists solely of Cash, then the “Applicable Price” with respect
to such Make-Whole Fundamental Change shall be equal to the Cash amount paid for the property and
assets of the Company, expressed as an amount per share of Common Stock outstanding on the
Effective Date of such Make-Whole Fundamental Change; and (c) in all other circumstances, the
“Applicable Price” with respect to such Make-Whole Fundamental Change shall be equal to the average
of the Closing Sale Prices per share of Common Stock for the five (5) consecutive Trading Days
immediately preceding the Effective Date of such Make-Whole Fundamental Change, which average shall
be appropriately adjusted by the Board of Directors, in its good faith determination, 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 during such five (5)
consecutive Trading Days.

     The Make-Whole Consideration due upon a conversion of a Security by a Holder shall be paid as
soon as practicable after the Conversion Date of such conversion, but in no event later than the
third (3rd) Business Day after the later of (1) the date such Holder surrenders such Security for
such conversion; and (2) the Effective Date of the applicable Make-Whole Fundamental Change. The
consideration in which the Make-Whole Consideration is payable shall be determined in accordance
herewith, including, without limitation, in accordance with, to the extent applicable, with
Section 10.12.

     At least thirty (30) calendar days before the anticipated effective date of each proposed
Make-Whole Fundamental Change, the Company shall deliver to each Holder and to the Trustee,

 - 57 - 

 

in
accordance with Section 11.02, written notice of, and shall publicly announce, through a
reputable national newswire service, and publish on the Company’s website, the anticipated
effective date of such proposed Make-Whole Fundamental Change. Each such notice, announcement and
publication shall also state that, in connection with such Make-Whole Fundamental Change, the
Company shall increase, in accordance herewith, the Conversion Rate applicable to Securities
entitled as provided herein to such increase (along with a description of how such increase shall
be calculated and the time periods during which Securities must be surrendered in order to be
entitled to such increase). No later than the third Business Day after the Effective Date of each
Make-Whole Fundamental Change, the Company shall deliver, in accordance with Section 11.02,
written notice to each Holder and to the Trustee of, and shall publicly announce, through a
reputable national newswire service, and publish on the Company’s website, such Effective Date and
the Make-Whole Applicable Increase applicable to such Make-Whole Fundamental Change.

     For avoidance of doubt, the provisions of this Section 10.16 shall not affect or
diminish the Company’s obligations, if any, pursuant to Article IV with respect to a
Make-Whole Fundamental Change.

     Nothing in this Section 10.16 shall prevent an adjustment to the Conversion Rate
pursuant to Section 10.06 in respect of a Make-Whole Fundamental Change.

MISCELLANEOUS

Trust Indenture Act Controls.

     If any provision of this Indenture limits, qualifies or conflicts with another provision which
is required to be included in this Indenture by the TIA, the required provision of the TIA shall
control.

Notices.

     Any notice or communication by the Company or the Trustee to the other shall be deemed to be
duly given if made in writing and delivered:

     by hand (in which case such notice shall be effective upon delivery);

     by facsimile (in which case such notice shall be effective upon receipt of confirmation of
good transmission thereof); or

     by overnight delivery by a nationally recognized courier service (in which case such notice
shall be effective on the Business Day immediately after being deposited with such courier
service),

in each case to the recipient party’s address or facsimile number, as applicable, set forth in this
Section 11.02. The Company or the Trustee by notice to the other may designate additional
or different addresses or facsimile numbers for subsequent notices or communications.

 - 58 - 

 

     Any notice or communication to a Holder shall be delivered to its address shown on the
register kept by the Registrar. Failure to deliver a notice or communication to a Holder or any
defect in it shall not affect its sufficiency with respect to other Holders.

     If a notice or communication is delivered in the manner provided above, it is duly given,
whether or not the addressee receives it.

     If the Company delivers a notice or communication to Holders, it shall deliver a copy to the
Trustee and each Securities Agent at the same time. If the Trustee or the Securities Agent is
required, pursuant to the express terms of this Indenture or the Securities, to deliver a notice or
communication to Holders, the Trustee or the Securities Agent, as the case may be, shall also
deliver a copy of such notice or communication to the Company.

     All notices or communications shall be in writing.

     The Company’s address is:

Hythiam, Inc.

11150 Santa Monica Boulevard, Suite 1500

Los Angeles, CA 90025

Attn: [•]

Facsimile: (310) 444-5300

With a copy to:

Luce Forward Hamilton & Scripps LLP

601 South Figueroa Street, Suite 3900

Los Angeles, CA 90017

John C. Kirkland, Esq.

Facsimile: (213) 452-8035

     The Trustee’s address is:

[TRUSTEE]

[•]

[•]

[•]

[•]

Attn: [•]

Facsimile: [•]

Communication by Holders with Other Holders.

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

 - 59 - 

 

Certificate and Opinion as to Conditions Precedent.

     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:

     an Officer’s Certificate stating that, in the opinion of the signatories to such
Officer’s Certificate, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

     if requested by the Trustee, an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

     Each signatory to an Officer’s Certificate or an Opinion of Counsel may (if so stated) rely,
effectively, upon an Opinion of Counsel as to legal matters and an Officer’s Certificate or
certificates of public officials as to factual matters if such signatory reasonably and in good
faith believes in the accuracy of the document relied upon.

Statements Required in Certificate or Opinion.

     Each Officer’s Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

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

     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;

     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

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

Rules by Trustee and Agents.

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The
Registrar, Paying Agent or Conversion Agent may make reasonable rules and set reasonable
requirements for their respective functions.

Legal Holidays.

     A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions are not
required to be open in the City of New York, in the State of New York or such other place of
payment with respect to the Notes. If a payment date is a Legal Holiday at a place of payment,
payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue on that payment for the intervening period.

 - 60 - 

 

     A “Business Day” is a day other than a Legal Holiday.

Duplicate Originals.

     The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. Delivery of an executed
counterpart by facsimile shall be effective as delivery of a manually executed counterpart thereof.

Governing Law.

     The laws of the State of New York shall govern this Indenture and the Securities.

No Adverse Interpretation of Other Agreements.

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

Successors.

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

Separability.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby and a Holder shall have no claim therefor against any
party hereto.

Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table 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.

Calculations in Respect of the Securities.

     The Company and its agents (including, without limitation, the Bid Solicitation Agent) shall
make all calculations under this Indenture and the Securities in good faith. In the absence of
manifest error, such calculations shall be final and binding on all Holders. The Company shall
provide a copy of such calculations to the Trustee as required hereunder, and, absent such manifest
error, the Trustee shall be entitled to conclusively rely on the accuracy of any such calculation
without independent verification.

[The Remainder of This Page Intentionally Left Blank; Signature Page Follows]

 - 61 - 

 

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

	 	 	 	 	 
	 	HYTHIAM, INC.

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	[TRUSTEE]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Signature Page to Indenture

 

EXHIBIT A

[Face of Security]

HYTHIAM, INC.

Certificate No.                     

[INSERT PRIVATE PLACEMENT LEGEND AND GLOBAL SECURITY LEGEND

AS REQUIRED]

[•]% Convertible Senior Note due 2014

CUSIP No.                     

     Hythiam, Inc., a Delaware corporation (the “Company”), for value received, hereby promises to
pay to Cede & Co., or its registered assigns, the principal sum of
                                                     
        dollars ($     
               ) on [•], 2014 and to pay interest thereon, as provided
on the reverse hereof, until the principal and any unpaid and accrued interest are paid or duly
provided for.

     interest payment dates:      May 15 and November 15, with the first payment to be made on May 15, 2008.

     Record Dates: May 1 and November 1.

     The provisions on the back of this certificate are incorporated as if set forth on the face
hereof.

     IN WITNESS WHEREOF, HYTHIAM, INC. has caused this instrument to be duly signed.

	 	 	 	 	 	 	 
	 	 	HYTHIAM, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Dated:                                        

A-1

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to

in the within-mentioned Indenture.

[TRUSTEE],

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

A-2

 

[REVERSE OF SECURITY]

HYTHIAM, INC.

[•]% Convertible Senior Note due 2014

     1. Interest. Hythiam, Inc., a Delaware corporation (the “Company”), promises to pay interest
on the principal amount of this Security at the rate per annum shown above. The Company will pay
interest, payable semi-annually in arrears, on May 15 and November 15 of each year, with the first
payment to be made on May 15, 2008. Interest on the Securities will accrue on the principal amount
from, and including, the most recent date to which interest has been paid or provided for or, if no
interest has been paid, from, and including, [•], 2009, in each case to, but excluding, the next
interest payment date or Maturity Date, as the case may be. Interest will be computed on the basis
of a 360-day year of twelve 30-day months.

     2. Maturity. The Securities will mature on [•], 2014.

     3. Method of Payment. Except as provided in the Indenture (as defined below), the Company
will pay interest on the Securities to the persons who are Holders of record of Securities at the
close of business on the record date set forth on the face of this Security next preceding the
applicable interest payment date. Holders must surrender Securities to a Paying Agent to collect
the principal amount or Fundamental Change Repurchase Price of the Securities, plus, if applicable,
accrued and unpaid interest, if any, payable as herein provided on the Maturity Date or upon
Repurchase Upon Fundamental Change, as the case may be. The Company will pay, in money of the
United States that at the time of payment is legal tender for payment of public and private debts,
all amounts due in Cash with respect to the Securities, which amounts shall be paid (A) in the case
this Security is in global form, by wire transfer of immediately available funds to the account
designated by the Depositary or its nominee; or (B) in the case this Security is held, other than
global form, by wire transfer of immediately available funds to the account specified by such
Holder or, if such Holder does not specify an account, by mailing a check to the address of such
Holder set forth in the register of the Registrar.

     4. Paying Agent, Registrar, Conversion Agent. Initially, [TRUSTEE] (the “Trustee”) will act
as Paying Agent, Registrar and Conversion Agent. The Company may change any Paying Agent,
Registrar or Conversion Agent without notice.

     5. Indenture. The Company issued the Securities under an Indenture dated as of [•], 2009 (the
“Indenture”) between the Company and the Trustee. The terms of the Securities include those stated
in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of
1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”) as amended and in effect from time to time. The
Securities are subject to all such terms, and Holders are referred to the Indenture and the TIA for
a statement of such terms. The Securities are general unsecured senior obligations of the Company
limited to $[•] aggregate principal amount ($[•] if the Initial Purchasers have elected to exercise
in full the Option to purchase up to an additional $[•] aggregate principal amount of the
Securities), except as otherwise provided in the Indenture (except for Securities issued in
substitution for destroyed, mutilated, lost or stolen Securities).

A-3

 

Terms used herein without definition and which are defined in the Indenture have the meanings
assigned to them in the Indenture.

     6. Repurchase at Option of Holder Upon a Fundamental Change. Subject to the terms and
conditions of the Indenture, in the event of a Fundamental Change, each Holder of the Securities
shall have the right, at the Holder’s option, to require the Company to repurchase such Holder’s
Securities including any portion thereof which is $1,000 in principal amount or any integral
multiple thereof on a date selected by the Company (the “Fundamental Change Repurchase Date”),
which date is no later than thirty five (35) days, nor earlier than twenty (20) days, after the
date on which notice of such Fundamental Change is delivered in accordance with the Indenture, at a
price payable in Cash equal to one hundred percent (100%) of the principal amount of such Security,
plus accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date;
provided, however, that if such Fundamental Change Repurchase Date is after a record date for the
payment of an installment of interest and on or before the related interest payment date, then the
accrued and unpaid interest, if any, to, but excluding, such interest payment date will be paid on
such interest payment date to the Holder of record of such Securities at the close of business on
such record date, and the Holder surrendering such Securities for repurchase will not be entitled
to any such accrued and unpaid interest unless such Holder was also the Holder of record of such
Securities at the close of business on such record date.

     7 Conversion. Subject to earlier Redemption, Purchase at Holder’s Option or Repurchase Upon
Fundamental Change, Holders may surrender Securities in integral multiples of $1,000 principal
amount for conversion into Cash, shares of Common Stock or a combination of Cash and shares of
Common Stock, at the Company’s election, in accordance with Article X of the Indenture at
any time prior to stated maturity.

     Notwithstanding anything herein to the contrary, the right to convert the Securities pursuant
to Article X of the Indenture shall terminate at the close of business on the Business Day
immediately preceding the Maturity Date.

     To convert a Security, a Holder must (1) complete and sign the Conversion Notice, with
appropriate signature guarantee, on the back of the Security, (2) surrender the Security to a
Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the
Registrar or Conversion Agent, (4) pay the amount of interest, if any, the Holder must pay in
accordance with the Indenture and (5) pay any tax or duty if required pursuant to the Indenture. A
Holder may convert a portion of a Security if the portion is $1,000 principal amount or an integral
multiple of $1,000 principal amount. To convert interests in a Global Security, a Holder must
comply with DTC’s then applicable conversion program procedures.

     The
initial Conversion Rate is [•] shares of Common Stock per $1,000 principal amount of
Securities (which results in an effective initial Conversion Price of
$[•] per share) subject to
adjustment in the event of certain circumstances as specified in the Indenture. The Company will
deliver a check in lieu of any fractional share. On conversion, no payment or adjustment for any
unpaid and accrued interest or additional interest on the Securities will be made. If any Holder
surrenders a Security for conversion after the close of business on the record date for the payment
of an installment of interest and prior to the related interest payment date, then,

A-4

 

notwithstanding such conversion, the interest payable with respect to such Security on such
interest payment date shall be paid on such interest payment date to the Holder of record of such
Security at the close of business on such record date; provided, however, that such Security, when
surrendered for conversion, must be accompanied by payment to the Conversion Agent on behalf of the
Company of an amount equal to the interest payable on such interest payment date on the portion so
converted; provided, however, the Holder will not be required to pay the Company, at the time that
Holder surrenders those Securities for conversion, the amount of interest payable by the Company on
such interest payment date (i) if the Company has specified a Fundamental Change Repurchase Date
that is after the record date but prior to the corresponding interest payment date, (ii) to the
extent of any overdue interest, if any overdue interest remains unpaid at the time of conversion
with respect to such Securities, or (iii) in respect of any conversions that occur after the record
date immediately preceding the Maturity Date. The Conversion Rate may be increased on November 15,
2008, pursuant to Section 10.15 of the Indenture, if the arithmetic average of the daily
VWAP per share of Common Stock for each of the 20 consecutive Trading Days ending on November 15,
2008 is less than the Floor Price.

     The Conversion Rate applicable to each Security that is surrendered for conversion, in
accordance with the Securities and Article X of the Indenture, at any time during the
Make-Whole Conversion Period with respect to a Make-Whole Fundamental Change shall be increased to
an amount equal to the Conversion Rate that would, but for Section 10.16 of the Indenture,
otherwise apply to such Security pursuant to Article X of the Indenture, plus an amount
equal to the Make-Whole Applicable Increase; provided, however, that such increase to the
Conversion Rate shall not apply if such Make-Whole Fundamental Change is announced by the Company
but shall not be consummated.

     8. Denominations, Transfer, Exchange. The Securities are in registered form, without coupons,
in denominations of $1,000 principal amount and integral multiples of $1,000 principal amount. The
transfer of Securities may be registered and Securities may be exchanged as provided in the
Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents. No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or
similar governmental charge that may be imposed in connection with certain transfers or exchanges.
The Company or the Trustee, as the case may be, shall not be required to register the transfer of
or exchange any Security for which a notice of a Fundamental Change has been delivered, and not
withdrawn, in accordance with the Indenture, except the unrepurchased portion of Securities being
repurchased in part.

     9. Persons Deemed Owners. The registered Holder of a Security may be treated as the owner of
such Security for all purposes.

     10. Merger or Consolidation. The Company shall not consolidate with, or merge with or into,
or sell, transfer, lease, convey or otherwise dispose of all or substantially all of the property
or assets of the Company, or of the Company and the Subsidiaries on a consolidated basis, to,
another person, whether in a single transaction or series of related transactions, unless (i) if
the surviving person is not the Company, the surviving person is a corporation organized and
existing under the laws of the United States, any State thereof or the District of Columbia;

A-5

 

(ii) such person assumes by supplemental indenture all the obligations of the Company under
the Securities and the Indenture; and (iii) immediately after giving effect to the transaction, no
Default or Event of Default shall exist.

     11. Amendments, Supplements and Waivers. Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Securities, and certain existing Defaults or Events
of Default may be waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. In accordance with the terms of the Indenture, the
Company, with the consent of the Trustee, may amend or supplement this Indenture or the Securities
without notice to or the consent of any Securityholder: (i) to comply with Sections 5.01
and 10.12 of the Indenture; (ii) to make any changes or modifications to the Indenture
necessary in connection with the registration of the Securities under the Securities Act pursuant
to the Registration Rights Agreement or the qualification of the Indenture under the TIA; (iii) to
secure the obligations of the Company in respect of the Securities; (iv) to add to the covenants of
the Company described in the Indenture for the benefit of Securityholders or to surrender any right
or power conferred upon the Company; and (v) to make provisions with respect to adjustments to the
Conversion Rate as required by the Indenture or to increase the Conversion Rate in accordance with
the Indenture. In addition, the Company and the Trustee may enter into a supplemental indenture
without the consent of Holders of the Securities to (i) cure any ambiguity, defect, omission or
inconsistency in the Indenture in a manner that does not, individually or in the aggregate with all
other modifications made or to be made to the Indenture, adversely affect the rights of any Holder;
or (ii) conform the Indenture to the description of the Securities contained in the Offering
Memorandum of the Company, dated [•], 2009.

     12. Defaults and Remedies. If an Event of Default (excluding an Event of Default specified in
Section 6.01(viii) or (ix) of the Indenture with respect to the Company (but
including an Event of Default specified in Section 6.01(viii) or (ix) of the
Indenture solely with respect to a Significant Subsidiary of the Company or any group of
Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the Company))
occurs and is continuing, the Trustee by notice to the Company or the Holders of at least twenty
five percent (25%) in principal amount of the Securities then outstanding by notice to the Company
and the Trustee may declare the Securities to be due and payable. Upon such declaration, the
principal of, and any accrued and unpaid interest (including any additional interest) on, all
Securities shall be due and payable immediately. If an Event of Default specified in Section
6.01(viii) or (ix) of the Indenture with respect to the Company (excluding, for
purposes of this sentence, an Event of Default specified in Section 6.01(viii) or
(ix) of the Indenture solely with respect to a Significant Subsidiary of the Company or any
group of Subsidiaries that in the aggregate would constitute a Significant Subsidiary of the
Company) occurs, the principal of, and accrued and unpaid interest (including any additional
interest) on, all the Securities 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 written notice to the Trustee
may rescind or annul an acceleration and its consequences if (A) the rescission would not conflict
with any order or decree, (B) all existing Events of Default, except the nonpayment of principal or
interest (including additional interest) that has become due solely

A-6

 

because of the acceleration, have been cured or waived and (C) all amounts due to the Trustee
under Section 7.07 of the Indenture have been paid.

     Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
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 the Indenture, is unduly prejudicial to the rights
of other Holders or would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction.

     If a Default or Event of Default occurs and is continuing as to which the Trustee has received
notice pursuant to the provisions of the Indenture, or as to which a Responsible Officer of the
Trustee shall have actual knowledge, the Trustee shall deliver to each Holder a notice of the
Default or Event of Default within thirty (30) days after it occurs unless such Default or Event of
Default has been cured or waived. Except in the case of a Default or Event of Default in payment
of any amounts due with respect to any Security, the Trustee may withhold the notice if, and so
long as it in good faith determines that, withholding the notice is in the best interests of
Holders. The Company must deliver to the Trustee an annual compliance certificate.

     13. Registration Rights. The Holders are entitled to registration rights as set forth in the
Registration Rights Agreement. The Holders shall be entitled to receive additional interest in
certain circumstances, all as set forth in the Registration Rights Agreement.

     14. Trustee Dealings with the Company. The Trustee under the Indenture, or any banking
institution serving as successor Trustee thereunder, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for, the Company or its Affiliates, and
may otherwise deal with the Company or its Affiliates, as if it were not Trustee.

     15. No Recourse Against Others. No past, present or future director, officer, employee or
stockholder, as such, of the Company shall have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of, or by reason of,
such obligations or their creation. Each Holder, by accepting a Security, waives and releases all
such liability. The waiver and release are part of the consideration for the issue of the
Securities.

     16. Authentication. This Security shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent in accordance with the Indenture.

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

     THE COMPANY WILL FURNISH TO ANY HOLDER UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE
INDENTURE. REQUESTS MAY BE MADE TO:

A-7

 

Hythiam, Inc.

11150 Santa Monica Boulevard, Suite 1500

Los Angeles, CA 90025

Attn: [•]

A-8

 

[FORM OF ASSIGNMENT]

I or we assign to

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER

      

      

(please print or type name and address)

 
 

the within Security and all rights thereunder, and hereby irrevocably constitute and appoint

 

Attorney to transfer the Security on the books of the Company with full power of substitution in
the premises.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	NOTICE: The signature on this assignment must
correspond with the name as it appears upon the face
of the within Security in every particular without
alteration or enlargement or any change whatsoever
and be guaranteed by a guarantor institution
participating in the Securities Transfer Agents
Medallion Program or in such other guarantee program
acceptable to the Trustee.

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 

A-9

 

In connection with any transfer of this Security occurring prior to the date which is the earlier
of (i) the date of the declaration by the SEC of the effectiveness of a registration statement
under the Securities Act of 1933, as amended, covering resales of this Security (which
effectiveness shall not have been suspended or terminated at the date of the transfer) and (ii) the
Resale Restriction Termination Date, the undersigned confirms that it is making, and it has not
utilized any general solicitation or general advertising in connection with, the transfer:

[Check One]

	 	 	 	 	 
	(1)

	 	___
	 	to the Company or any Subsidiary thereof, or
	 
	 	 	 	 
	(2)

	 	___
	 	pursuant to, and in compliance with, the exemption from
registration provided by Rule 144A under the Securities Act
of 1933, as amended, or
	 
	 	 	 	 
	(3)

	 	___
	 	pursuant to, and in compliance with, the exemption from
registration provided by Rule 144 under the Securities Act
of 1933, as amended, or
	 
	 	 	 	 
	(4)

	 	___
	 	pursuant to, and in compliance with, an exemption from
registration under the Securities Act of 1933, as amended,
other than Rule 144A or Rule 144, or
	 
	 	 	 	 
	(5)

	 	___
	 	pursuant to an effective registration statement under the
Securities Act of 1933, as amended,

and, unless the box below is checked, the undersigned confirms that this Security is not being
transferred to an “affiliate” of the Company (an “Affiliate”) as defined in Rule 144 under
the Securities Act of 1933, as amended:

     o The transferee is an Affiliate of the Company. (If the Security is transferred to
an Affiliate, the restrictive legend must remain on the Security for at least two (2) years
following the date of the transfer.)

Unless one of the items (1) through (5) is checked, the Trustee will refuse to register any of the
Securities evidenced by this certificate in the name of any person other than the registered Holder
thereof; provided, however, that if item (3) or (4) is checked, the Company or the Trustee may
require, prior to registering any such transfer of the Securities, in their sole discretion, such
written legal opinions, certifications and other information as the Trustee or the Company have
reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the Securities Act of 1933, as
amended. If item (2) is checked, the purchaser must complete the certification below.

If none of the foregoing items are checked, the Trustee or Registrar shall not be obligated to
register this Security in the name of any person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in the Indenture shall have
been satisfied.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 
	 	Signed:	 	 	 	 
	 

	 	 	 	 	 	 	 	(Sign exactly as name appears on the other
side of this Security)	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 

A-10

 

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

The undersigned represents and warrants that it is purchasing this Security for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A and acknowledges that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from registration provided
by Rule 144A.

	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	NOTICE: To be executed by an executive officer

A-11

 

CONVERSION NOTICE

To convert this Security in accordance with the Indenture, check the box: o

To convert only part of this Security, state the principal amount to be converted (must be in
multiples of $1,000):

$                    

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

 

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

 

 

 

 

 

 

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Signature(s):	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

(Sign exactly as your name(s) appear on the other
side of this Security)
	 	 

	 	 	 
	Signature(s) guaranteed by:
	 	 
	 

	 	 
	 

	 	(All signatures must be guaranteed by a guarantor institution
participating in the Securities Transfer Agents Medallion Program
or in such other guarantee program acceptable to the Trustee.)

A-12

 

PURCHASE NOTICE

Certificate No. of Security:                     

     If you want to elect to have this Security purchased by the Company pursuant to Section
3.02 of the Indenture, check the box: o

     If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.02 of the Indenture, as applicable, state the principal amount to be so
purchased by the Company:

$                    

(in an integral multiple of $1,000)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Signature(s):	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

(Sign exactly as your name(s) appear(s) on the
other side of this Security)
	 	 	 	 

	 	 	 
	Signature(s) guaranteed by:
	 	 
	 

	 	 
	 

	 	(All signatures must be guaranteed by a guarantor institution
participating in the Securities Transfer Agents Medallion Program
or in such other guarantee program acceptable to the Trustee.)

A-13

 

SCHEDULE A

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY

     The following exchanges of a part of this Global Security for an interest in another Global
Security or for Securities in certificated form, have been made:

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

A-14

 

EXHIBIT B-1

FORM OF PRIVATE PLACEMENT LEGEND

THIS SECURITY AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE.
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE ACQUIRER

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

(2) AGREES THAT IT WILL NOT DIRECTLY OR INDIRECTLY ENGAGE IN ANY HEDGING TRANSACTIONS INVOLVING
THIS SECURITY OR THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY UNLESS IN COMPLIANCE
WITH THE SECURITIES ACT, AND

(3) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE
TRANSFER THIS SECURITY OR ANY BENEFICIAL INTEREST HEREIN PRIOR TO THE DATE THAT IS THE LATER OF
(X) TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS
SECURITY) OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144(K) UNDER THE SECURITIES ACT OR
ANY SUCCESSOR PROVISION THEREUNDER, AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY
APPLICABLE LAW, EXCEPT ONLY

	 	(A)	 	TO THE COMPANY OR ANY SUBSIDIARY THEREOF,
	 
	 	(B)	 	PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE
SECURITIES ACT,
	 
	 	(C)	 	TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, OR
	 
	 	(D)	 	PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE
SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT.

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(C) ABOVE, A DULY COMPLETED AND
SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE DELIVERED TO THE
TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (3)(D)

B-1-1

 

ABOVE, THE COMPANY AND THE TRUSTEE RESERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT
THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS. NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

THIS SECURITY SHALL BE ENTITLED TO THE BENEFITS OF THAT CERTAIN REGISTRATION RIGHTS AGREEMENT,
DATED [•], 2009, AMONG HYTHIAM, INC. AND THE OTHER PARTIES NAMED THEREIN.

B-1-2

 

EXHIBIT B-2

FORM OF LEGEND FOR GLOBAL SECURITY

     Any Global Security authenticated and delivered hereunder shall bear a legend (which would be
in addition to any other legends required in the case of a Restricted Security) in substantially
the following form:

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR
DEPOSITARY. THIS SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY 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) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

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

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE.

B-2-1

 

EXHIBIT C

Form of Notice of Transfer Pursuant to Registration Statement

Hythiam, Inc.

11150 Santa Monica Boulevard, Suite 1500

Los Angeles, CA 90025

Attention: [•]

[TRUSTEE]

[•]

[•]

[•]

[•]

Attention: [•]

			
	Re:	 	Hythiam, Inc. (the “Company”) [•]% Convertible Senior Notes

due 2014 (the “Securities”)

Ladies and Gentlemen:

          Please be advised that                      has transferred $                     aggregate principal amount
of the Securities and       
                    
       shares of the Common Stock, $0.0001 par value per share, of the
Company issued on conversion of the Securities (“Stock”) pursuant to an effective Shelf
Registration Statement on Form S-3 (File No. 333-                    ).

          We hereby certify that the prospectus delivery requirements, if any, of the Securities Act of
1933 as amended, have been satisfied with respect to the transfer described above and that the
above-named beneficial owner of the Securities or Stock is named as a “Selling Security Holder” in
the Prospectus dated                     , or in amendments or supplements thereto, and that the aggregate
principal amount of the Securities and the number of shares of Stock transferred are [a portion of]
the Securities and Stock listed in such Prospectus, as amended or supplemented, opposite such
owner’s name.

Very truly yours,

(Name)

B-2-1

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