Document:

exv4w2

 

Exhibit 4.2

 

Registration Rights Agreement

Dated as of June 29, 2007

among

Tektronix, Inc.

and

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Goldman, Sachs & Co.

and

Citigroup Global Markets Inc.

 

 

 

REGISTRATION RIGHTS AGREEMENT

          This Registration Rights Agreement (the “Agreement”) is made and entered into this 29th day of
June, 2007, between Tektronix, Inc., an Oregon corporation (the “Company”), and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, Goldman, Sachs & Co. and Citibank Global Markets Inc. (the
“Initial Purchasers”).

          This Agreement is made pursuant to the Purchase Agreement (the “Purchase Agreement”), dated
June 25, 2007, between the Company and the Initial Purchasers, which provides for the sale by the
Company to the Initial Purchasers of $300,000,000 aggregate principal amount ($345,000,000
aggregate principal amount if the Initial Purchasers exercise their over-allotment option in full)
of the Company’s 1.625% Senior Convertible Notes due 2012 (the “Notes” and together with the shares
of Common Stock of the Company into which the Notes are convertible, the “Securities”). In order
to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide to the Initial Purchasers and its direct and indirect transferees the registration rights
set forth in this Agreement. The execution of this Agreement is a condition to the closing under
the Purchase Agreement.

          In consideration of the foregoing, the parties hereto agree as follows:

          1. Definitions.

          As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended from time to time.

     “1934 Act” shall mean the Securities Exchange Act of l934, as amended from time
to time.

     “1939 Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

     “Additional Interest” shall have the meaning set forth in Section 2.4 herein.

     “Agreement” shall have the meaning set forth in the preamble.

     “Closing Date” shall mean the Initial Closing Time as defined in the Purchase
Agreement.

     “Common Stock” shall mean any shares of common stock, without par value, of the
Company and any other shares of common stock as may constitute “Common Stock” for purposes
of the Indenture.

     “Company” shall have the meaning set forth in the preamble and shall also
include the Company’s successors.

2

 

     “Depositary” shall mean The Depository Trust Company, or any other depositary
appointed by the Company, provided, however, that such depositary must have an address in
the Borough of Manhattan, in the City of New York.

     “Effectiveness Period” shall have the meaning set forth in Section 2.1(b)
herein.

     “Holder” shall mean an Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and indirect
transferees who become owners, beneficial or otherwise, of Registrable Securities under the
Indenture.

     “Indenture” shall mean the Indenture relating to the Securities, dated as of
the date hereof, between the Company and U.S. Bank National Association, as Trustee, as the
same may be amended, supplemented, waived or otherwise modified from time to time in
accordance with the terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Issuer Free Writing Prospectus” shall have the meaning set forth in Section
2.1(f) herein.

     “Majority Holders” shall mean the Holders of a majority of the aggregate
principal amount of outstanding Registrable Securities; provided that, for purposes of this
definition, (1) a Holder of shares of Common Stock that constitute Registrable Securities
which were issued upon conversion of the Notes shall be deemed to hold an aggregate
principal amount at maturity of Registrable Securities (in addition to the principal amount
at maturity of any Registrable Securities held by such Holder) equal to the principal amount
at maturity of Registrable Securities which were converted into such shares of Common Stock
and (2) such Registrable Securities which were converted into such shares of Common Stock
shall be deemed to be outstanding; provided further, that whenever the consent or approval
of Holders of a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or any Affiliate (as defined in the Indenture) of
the Company shall be disregarded in determining whether such consent or approval was given
by the Holders of such required percentage amount.

     “Notes” shall have the meaning set forth in the preamble.

     “Offering Memorandum” shall mean the offering memorandum of the Company, dated
June 25, 2007, related to the Securities.

     “Person” shall mean an individual, partnership (general or limited),
corporation, limited liability company, trust or unincorporated organization, or a
government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus included in a Shelf Registration
Statement, including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including any such prospectus supplement with
respect to the terms of the offering of any portion of the Registrable Securities

3

 

covered by a Shelf Registration Statement, and by all other amendments and supplements
to a prospectus, including post-effective amendments, and in each case including all
materials incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Questionnaire” shall have the meaning set forth in Section 2.1(d) herein.

     “Registrable Securities” shall mean all or any of the Securities; provided,
however, that any such Securities shall cease to be Registrable Securities at the earliest
of when (i) a Shelf Registration Statement with respect to such Securities shall have been
declared effective or otherwise become effective under the 1933 Act and such Securities
shall have been disposed of pursuant to such Shelf Registration Statement, (ii) such
Securities have been sold to the public pursuant to Rule 144 or may be sold or transferred
pursuant to Rule l44(k) (or any similar provision then in force, but not Rule 144A) under
the 1933 Act by holders who are not “affiliates” of the Company, or (iii) such Securities
shall have ceased to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 2.4 herein.

     “Registration Expenses” shall mean any and all expenses incident to performance
of or compliance by the Company with this Agreement, whether or not a Shelf Registration
Statement becomes effective, including without limitation: (i) all SEC, stock exchange or
National Association of Securities Dealers, Inc. (the “NASD”) registration and filing fees,
including, if applicable, the reasonable and documented fees and expenses of any “qualified
independent underwriter” (and its counsel) that is required to be retained by any holder of
Registrable Securities in accordance with the rules and regulations of the NASD, (ii) all
fees and expenses incurred by the Company in connection with compliance with state
securities or blue sky laws and compliance with the rules of the NASD (including reasonable
and documented fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Registrable Securities and any filings
with the NASD), (iii) all expenses of the Company in preparing or assisting in preparing,
word processing, printing and distributing any Shelf Registration Statement, any Prospectus,
any amendments or supplements thereto, any securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all fees and
expenses incurred by the Company in connection with the listing, if any, of any of the
Registrable Securities on any securities exchange or exchanges, (v) all rating agency fees
incurred by the Company, if any, (vi) the fees and disbursements of counsel for the Company
and of the independent public accountants of the Company, including the expenses of any
special audits or “comfort” letters required by or incident to such performance and
compliance, (vii) the reasonable and documented fees and expenses of the Trustee, and any
escrow agent or custodian, (viii) the reasonable and documented fees and expenses of a
single counsel to the Holders (the “Holders’ Counsel”) in connection with the Shelf
Registration Statement, and (ix) any fees and expenses of any special experts retained by
the Company in connection with any Shelf Registration Statement, but excluding any
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or

4

 

disposition of Registrable Securities by a Holder and the fees and expenses of any
counsel to the Holders, except as provided for in clause (viii) above.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency
or government body performing the functions currently performed by the United States
Securities and Exchange Commission.

     “Securities” shall have the meaning set forth in the preamble.

     “Shelf Registration” shall mean a registration effected pursuant to Section 2.1
hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of
the Company pursuant to the provisions of Section 2.1 of this Agreement which covers all of
the Registrable Securities on an appropriate form under Rule 415 under the 1933 Act, or any
similar rule that may be adopted by the SEC, and all amendments and supplements to such
registration statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all materials incorporated by
reference therein.

     “Suspension Period” shall have the meaning set forth in Section 2.5 herein.

     “Trustee” shall mean the trustee with respect to the Securities under the
Indenture.

     “Underwriter” shall have the meaning set forth in Section 4(a).

     “Well-Known Seasoned Issuer” shall have the meaning set forth in Rule 405 under
the 1933 Act.

          2. Registration Under the 1933 Act.

          2.1 Shelf Registration.

               (a) The Company shall, at its cost, no later than 120 days after the Closing Date, file
with
the SEC, and thereafter shall use its commercially reasonable efforts to cause to be declared
effective as promptly as practicable but no later than 210 days after the Closing Date, a Shelf
Registration Statement relating to the offer and sale of the Registrable Securities by the Holders
that have provided the information pursuant to Section 2.1(d); provided, however, that in the event
the Company is eligible for, and elects to utilize, the “automatic shelf” registration procedure on
Form S-3 available to Well-Known Seasoned Issuers, the only obligation of the Company under this
Section 2.1(a) shall be to file a Shelf Registration Statement with the SEC no later than 150 days
after the Closing Date, provided that such Shelf Registration Statement becomes immediately
effective upon filing pursuant to Rule 462 under the 1933 Act, as such rule may be amended from
time to time.

               (b) The Company shall, at its cost, use its commercially reasonable efforts, subject to
Section 2.5, to keep the Shelf Registration Statement continuously effective in order to permit the
Prospectus forming part thereof to be usable by Holders for the period (the

5

 

“Effectiveness Period”)
beginning upon the effective date of the Shelf Registration Statement until the earliest to occur
of (1) the sale pursuant to the Shelf Registration Statement of the Registrable Securities, (2) the
date when the Holders, other than Holders that are “affiliates” (as defined in Rule 405 under the
1933 Act) of the Company, are able to sell all such Registrable Securities immediately without
restriction pursuant to the volume limitation provisions of Rule 144 under the 1933 Act or any
successor Rule thereto or otherwise and (3) the date that is two years from the Closing Date.

               (c) Notwithstanding any other provisions hereof, the Company shall use its commercially
reasonable efforts to provide that (i) any Shelf Registration Statement and any amendment thereto
and any Prospectus forming part thereof and any supplement thereto complies in all material
respects with the 1933 Act and the rules and regulations thereunder, (ii) any Shelf Registration
Statement and any amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any Prospectus forming part of
any Shelf Registration Statement, and any supplement to such Prospectus (as amended or supplemented
from time to time), does not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

               (d) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in the Shelf Registration Statement pursuant to this
Agreement unless the Holder furnishes to the Company a fully completed notice and questionnaire in
the form attached as Annex A to the Offering Memorandum (the “Questionnaire”) and such other
information in writing as the Company may reasonably request in writing for use in connection with
the Shelf Registration Statement or Prospectus included therein and in any application to be filed
with or under state securities laws. At least 30 days prior to the filing of the Shelf Registration
Statement, the Company will provide notice (which notice may be by means of a press release) to the
Holders of its intention to file the Shelf Registration Statement. In order to be named as a
selling securityholder in the Prospectus at the time of effectiveness of the Shelf Registration
Statement, each Holder must, before the filing of the Shelf Registration Statement and no later
than the 20th day after being notified of the Company’s intention to file, furnish the completed
Questionnaire and such other information that the Company may reasonably request in writing, if
any, to the Company in writing and the Company shall include the information from the completed
Questionnaire and such other information, if any, in the Shelf Registration Statement and the
Prospectus in a manner so that upon effectiveness of the Shelf Registration Statement the Holder
will be permitted to deliver the Prospectus to purchasers of the Holder’s Registrable Securities.
From and after the date that the Shelf Registration Statement is first declared effective by the
SEC or otherwise becomes effective, upon receipt of a completed Questionnaire and such other
information that the Company may reasonably request in writing, if any, the Company will use its
commercially reasonable efforts to file (i) within 20 business days any amendments or supplements
to the Shelf Registration Statement or (ii) within 10 business days any report filed with the SEC
under the 1934 Act, if the Company is permitted to do so pursuant to the 1933 Act and the
regulations
thereunder, necessary for such Holder to be named as a selling securityholder in the
Prospectus contained therein to permit such Holder to deliver the Prospectus to purchasers of the
Holder’s Registrable Securities (subject to the Company’s right to suspend the Shelf Registration

6

 

Statement as described in Section 2.5 below); provided, however, that the Company shall not be
required to file more than one of the documents listed in clauses (i) and (ii) of this paragraph
(d) in any calendar quarter for all such Holders. Holders that do not deliver a completed written
Questionnaire and such other information, as provided for in this Section 2.1(d), will not be named
as selling securityholders in the Prospectus. Each Holder named as a selling securityholder in the
Prospectus agrees to promptly furnish to the Company all information required to be disclosed in
order to make information previously furnished to the Company by the Holder not materially
misleading and any other information regarding such Holder and the distribution of such Holder’s
Registrable Securities as the Company may from time to time reasonably request in writing.

               (e) During the Effectiveness Period, each Holder agrees not to sell any Registrable Securities
pursuant to the Shelf Registration Statement without delivering, or causing to be delivered, a
Prospectus to the purchaser thereof.

               (f) The Company represents and agrees that, unless it obtains the prior consent of Holders of
a majority in principal amount of the Registrable Securities that are registered under the Shelf
Registration Statement at such time or the approval of Holders’ Counsel or the consent of the
managing underwriter in connection with any underwritten offering of Registrable Securities, and
each Holder represents and agrees that, unless it obtains the prior consent of the Company and any
such underwriter, it will not during the Effectiveness Period make any offer relating to the
Securities (which, for the avoidance of doubt, will not include any shares of Common Stock which
are not Securities within the meaning of this Agreement) that would constitute an “issuer free
writing prospectus,” as defined in Rule 433 under the 1933 Act (any such issuer free writing
prospectus relating to any such offer made by the Company during the Effectiveness Period, an
“Issuer Free Writing Prospectus”), or that would otherwise constitute a “free writing prospectus,”
as defined in Rule 405 under the 1933 Act, required to be filed with the SEC. The Company
represents that any Issuer Free Writing Prospectus will not include any information that conflicts
with the information contained in the Shelf Registration Statement or Prospectus and that any
Issuer Free Writing Prospectus, when taken together with the information in the Shelf Registration
Statement and the Prospectus, will not include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

          The Company will not permit any securities other than Registrable Securities to be included in
the Shelf Registration Statement. The Company agrees to supplement or amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to the registration form
used by the Company if required by the 1933 Act, or to the extent the Company does not reasonably
object, as reasonably requested in writing by any Holder with respect to information relating to
such Holder, and to furnish to the Holders of Registrable Securities that are covered under such
Shelf Registration Statement copies of any such supplement or amendment promptly after its being
used or filed with the SEC in such amounts as they may reasonably request.

          2.2 Expenses. The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2.1. Each Holder shall pay all underwriting

7

 

discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s
Registrable Securities pursuant to the Shelf Registration Statement.

          2.3 Effectiveness. (a) The Company will be deemed not to have used its commercially
reasonable efforts to cause the Shelf Registration Statement to become, or to remain,
effective during the requisite period (subject to Section 2.5) if the Company voluntarily
takes any action that would, or voluntarily omits to take any action which omission would,
result in any such Shelf Registration Statement not being declared effective or in the Holders
of Registrable Securities covered thereby not being able to offer and sell such Registrable
Securities during that period as and to the extent contemplated hereby, unless such action or
omission is required by applicable law.

               (b) A Shelf Registration Statement will not be deemed to have become effective unless it has
been declared effective by the SEC or has become automatically effective under the 1933 Act;
provided, however, that if, after it has been declared or become effective, the offering of
Registrable Securities pursuant to a Shelf Registration Statement is interfered with by any stop
order, injunction or other order or requirement of the SEC or any other governmental agency or
court, such Shelf Registration Statement will be deemed not to have become effective during the
period of such interference, until the offering of Registrable Securities pursuant to such Shelf
Registration Statement may legally resume.

          2.4 Interest. In the event that (a) a Shelf Registration Statement is not filed with the
SEC on or before the 120th calendar day following the Closing Date, (b) a Shelf Registration
Statement is not declared effective or otherwise becomes effective on or prior to the 210th
calendar day following the Closing Date, (c) after effectiveness, subject to Section 2.5, the
Shelf Registration Statement ceases to be effective or fails to be usable by the Holders
without being succeeded within seven business days by a post-effective amendment or a report
filed with the SEC pursuant to the 1934 Act that immediately cures the failure to be effective
or usable, or (d) the Prospectus is unusable by the Holders for any reason, and the Suspension
Period (as defined in Section 2.5 hereof) exceeds the number of days set forth in Section 2.5
(each such event being a “Registration Default”), additional interest (“Additional
Interest”) will accrue at a rate per annum of one-quarter of one percent (0.25%) of the
principal amount of the Registrable Securities for the first 90 day period from the day
following the Registration Default, and thereafter at a rate per annum of one-half of one
percent (0.50%) of the principal amount of the Registrable Securities; provided that in no
event shall Additional Interest accrue at a rate per annum exceeding one half of one percent
(0.50%) of the issue price of the Registrable Securities; provided further that no Additional
Interest shall accrue after the second anniversary of the Closing Date; provided further that
Additional Interest shall not accrue under clause (a) above in the event that the Company is
eligible for, and elects to utilize, the “automatic shelf” registration procedure on Form S-3
available to Well-Known Seasoned Issuers and files a Shelf Registration Statement
with the SEC no later than 150 days after the Closing Date, which Shelf Registration Statement
shall become immediately effective upon filing pursuant to Rule 462 under the 1933 Act, as such
rule may be amended from time to time; provided further that Additional Interest shall not accrue
under clause (c) and (d) above with respect to any Holder that (x) does not submit a properly
completed Questionnaire, and (y) is not named as a selling securityholder in the Shelf Registration
Statement. Upon the cure of all Registration Defaults then continuing, the accrual of Additional
Interest will automatically cease and the interest rate borne by the

8

 

Registrable Securities will
revert to the original interest rate at such time. Additional Interest shall be computed based on
the actual number of days elapsed in each 90-day period in which the Shelf Registration Statement
or the Prospectus is not effective or is unusable. Holders who have converted Securities into
Common Stock will not be entitled to receive any Additional Interest with respect to such Common
Stock or the issue price of the Securities converted.

          The Company shall notify the Trustee within five business days after each and every date on
which an event occurs in respect of which Additional Interest is required to be paid. Additional
Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the Holders of
Registrable Securities, on or before the applicable semiannual interest payment date, in
immediately available funds in sums sufficient to pay the Additional Interest then due. The
Additional Interest due shall be payable in arrears on each interest payment date to the record
Holder of Registrable Securities entitled to receive the interest payment to be paid on such date
as set forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to
accrue from and including the day following the Registration Default to but excluding the day on
which the Registration Default is cured.

          A Registration Default under clause (a) above shall be cured on the date that the Registration
Statement is filed with the SEC. A Registration Default under clause (b) above shall be cured on
the date that the Shelf Registration Statement is declared effective by the SEC or deemed to become
automatically effective under the 1933 Act. A Registration Default under clauses (c) or (d) above
shall be cured on the date an amended Shelf Registration Statement is declared effective by the SEC
or deemed to become automatically effective under the 1933 Act, or the Company otherwise declares
the Shelf Registration Statement and the Prospectus useable, as applicable. The Company will have
no liabilities for monetary damages other than the Additional Interest with respect to any
Registration Default.

          2.5 Suspension. Notwithstanding any other provision hereof, the Company may suspend the
use of any Prospectus, without incurring or accruing any obligation to pay Additional Interest
pursuant to Section 2.4 hereof or being deemed in violation of any other provision hereof, for
a period or periods (each, a “Suspension Period”) not to exceed an aggregate 45 calendar days
in any three-month period, or an aggregate of 90 calendar days in any twelve-month period, if
management of the Company shall have determined in good faith that because of valid business
reasons (not including avoidance of the Company’s obligations hereunder), including without
limitation proposed or pending corporate developments and similar events or because of filings
with the SEC, it is in the best interests of the Company to suspend such use, and prior to
suspending such use the Company provides the Holders with written notice of such suspension,
which notice need not specify the nature of the event giving rise to such suspension;
provided, however, that such
Suspension Period may be extended to an aggregate of 60 calendar days in any three-month period, or
an aggregate of 120 calendar days in any twelve-month period, if the Company in good faith
determines that such extension is in the best interests of the Company because (x) the Company is
in possession of material, nonpublic information concerning an acquisition, merger,
recapitalization, consolidation, reorganization, financing or other material transaction by or of
the Company or concerning pending or threatened litigation, and (y) disclosure of such information
would be materially adverse to the Company and its subsidiaries taken as a whole. Each Holder
shall keep confidential any

9

 

communications received by it from the Company regarding the suspension
of the use of the Prospectus, except as required by applicable law.

          3. Registration Procedures.

          In connection with the obligations of the Company with respect to the Shelf Registration, the
Company shall, subject to the rights of the Company to invoke and maintain a Suspension Period in
accordance with Section 2.5 without being in violation of any of the provisions hereunder:

               (a) prepare and file with the SEC a Shelf Registration Statement, within the relevant time
period specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall be available for the sale of the Registrable Securities by the
selling Holders thereof, (iii) shall comply as to form in all material respects with the
requirements of the applicable form and include or incorporate by reference all financial
statements required by the SEC to be filed therewith or incorporated by reference therein, and (iv)
shall comply in all respects with the applicable requirements of Regulation S-T under the 1933 Act,
if any, and use commercially reasonable efforts to cause such Shelf Registration Statement to
become effective and remain effective in accordance with Section 2 hereof;

               (b) prepare and file with the SEC such amendments and post-effective amendments to the Shelf
Registration Statement as may be necessary under applicable law to keep the Shelf Registration
Statement effective for the Effectiveness Period, subject to Section 2.5; and cause each Prospectus
to be supplemented by any required prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply during
the Effectiveness Period with the provisions of the 1933 Act, the 1934 Act and the rules and
regulations thereunder required to enable the disposition of all Registrable Securities covered by
the Shelf Registration Statement in accordance with the intended method or methods of distribution
by the selling Holders thereof;

               (c) (i) notify each Holder of Registrable Securities (which notification may be effected
by
issuing a press release) of the filing of a Shelf Registration Statement with respect to the
Registrable Securities; (ii) furnish to each Holder of Registrable Securities that has provided the
information required by Section 2.1(d) and to each underwriter of an underwritten offering of
Registrable Securities, if any, without charge, electronic copies of each Prospectus, including
each preliminary Prospectus, and any amendment or supplement thereto and such other documents as
such Holder or underwriter may reasonably request, including financial statements
and schedules and, if the Holder so requests, all exhibits in order to facilitate the
unrestricted sale or other disposition of the Registrable Securities; and (iii) subject to Section
2.5 hereof and to any notice by the Company in accordance with Section 3(e) hereof of the existence
of any fact of the kind described in Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, hereby
consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling
Holders of Registrable Securities that has provided the information required by Section 2.1(d) in
connection with the offering and sale of the Registrable Securities;

10

 

               (d) use commercially reasonable efforts to register or qualify the Registrable Securities for
exemptions under all applicable state securities or “blue sky” laws of such jurisdictions as any
Holder of Registrable Securities covered by a Shelf Registration Statement and each underwriter of
an underwritten offering of Registrable Securities shall reasonably request, and do any and all
other acts and things which may be reasonably necessary or advisable to enable each such Holder and
underwriter to consummate the disposition in each such jurisdiction of such Registrable Securities
owned by such Holder; provided, however, that the Company shall not be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it would not otherwise
be required to qualify but for this Section 3(d), or (ii) take any action which would subject it to
general service of process or taxation in any such jurisdiction where it is not then so subject;

               (e) notify promptly each Holder of Registrable Securities under a Shelf Registration Statement
that has provided the information required by Section 2.1(d) and, if requested by such Holder,
confirm such advice in writing promptly (i) when a Shelf Registration Statement has become
effective and when any post-effective amendments thereto have become effective, (ii) of any request
by the SEC or any state securities authority for post-effective amendments and supplements to a
Shelf Registration Statement and Prospectus or for additional information relating thereto after
the Shelf Registration Statement has become effective, (iii) of the issuance by the SEC or any
state securities authority of any stop order suspending the effectiveness of a Shelf Registration
Statement or the initiation of any proceedings for that purpose, (iv) of the happening of any event
or the discovery of any facts during the period a Shelf Registration Statement is effective which
makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in
any material respect or which requires the making of any changes in such Shelf Registration
Statement or Prospectus in order to make the statements therein (in the case of the Prospectus in
light of the circumstances under which they were made) not misleading, (v) of the receipt by the
Company of any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such
purpose and (vi) of any determination by the Company that a post-effective amendment to such Shelf
Registration Statement would be appropriate, other than a post-effective amendment solely to add
selling Holders;

               (f) furnish to Holders’ Counsel on behalf of the Holders of Registrable Securities
(i) copies
of any comment letters received from the SEC with respect to a Shelf Registration Statement, and,
if requested, with respect to any documents incorporated therein and (ii) any other request by the
SEC or any state securities authority for amendments or supplements to a Shelf Registration
Statement and Prospectus or for additional information with respect to the Shelf Registration
Statement and Prospectus;

               (g) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement at the earliest practicable moment and provide
prompt notice to each Holder of the withdrawal of such order;

               (h) furnish, upon request, to each Holder of Registrable Securities that has provided the
information required by Section 2.1(d), and each underwriter, if any, without charge, at least one
conformed copy of each Shelf Registration Statement and any post-effective

11

 

amendment thereto,
including financial statements and schedules (without documents incorporated therein by reference
and all exhibits thereto, unless requested);

               (i) if electronic global certificates for the Registrable Securities are not then available,
cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold and not bearing any
restrictive legends (other than as required by applicable law); and enable such Registrable
Securities to be in such denominations (consistent with the provisions of the Indenture) and
registered in such names as the selling Holders or the underwriters, if any, may reasonably request
at least three business days prior to the closing of any sale of Registrable Securities;

               (j) upon the occurrence of any event or the discovery of any facts, each as contemplated by
Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, as promptly as practicable after the
occurrence of such an event, use commercially reasonable efforts to prepare a supplement or
post-effective amendment to the Shelf Registration Statement or the related Prospectus or any
document incorporated therein by reference or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will not
contain at the time of such delivery any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading or will remain so qualified. At such time as such public disclosure
is otherwise made or the Company determines that such disclosure is not necessary, in each case to
correct any misstatement of a material fact or to include any omitted material fact, the Company
agrees promptly to notify each Holder of Registrable Securities covered by such Shelf Registration
Statement of such determination and to furnish each Holder such number of copies of the Prospectus
as amended or supplemented, as such Holder may reasonably request;

               (k) no less than three business days after the filing of any Shelf Registration Statement, any
Prospectus, any amendment to a Shelf Registration Statement or amendment or supplement to a
Prospectus (other than amendments and supplements that do nothing more than name Holders and
provide information with respect thereto), provide copies of such document to the Trustee on behalf
of such Holders, and make representatives of the Company, as shall be reasonably requested by the
Holders’ Counsel, available for discussion of such document;

               (l) obtain CUSIP numbers for all Registrable Securities not later than the effective date of
the Shelf Registration Statement and provide the Trustee with printed certificates for the
Registrable Securities in a form eligible for deposit with the Depositary;

               (m) (i) cause the Indenture to be qualified under the 1939 Act in connection with the
registration of the Registrable Securities, (ii) cooperate with the Trustee and the Holders to
effect such changes to the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the 1939 Act, and (iii) execute, and use commercially reasonable
efforts to cause the Trustee to execute, all documents as may be required to effect such changes,
and all other forms and documents required to be filed with the SEC to enable the Indenture to be
so qualified in a timely manner;

12

 

               (n) subject to the last paragraph of this Section 3(n), enter into such customary
agreements
(including, if requested, an underwriting agreement in customary form) and take all other customary
and appropriate actions, if any, as the Majority Holders shall reasonably request in writing in
order to expedite or facilitate the disposition of such Registrable Securities, including, but not
limited to:

          (i) if an underwriting agreement is entered into, obtain opinions of counsel to the
Company and updates thereof addressed to each selling Holder and the underwriters covering
the matters set forth in the opinions of such counsel delivered at the Closing Date as are
customarily covered in legal opinions in connection with an underwritten offering of
securities;

          (ii) if an underwriting agreement is entered into, obtain “comfort” letters and updates
thereof from the Company’s independent certified public accountants (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company or of any
business acquired by the Company for which financial statements are, or are required to be,
included in the Shelf Registration Statement) addressed to the underwriters, and use
reasonable efforts to have such letter addressed to the selling Holders of Registrable
Securities (to the extent consistent with Statement on Auditing Standards No. 72 of the
American Institute of Certified Public Accountants), such letters to be substantially in the
form of, and covering the matters covered in, the comfort letter delivered on the Closing
Date;

          (iii) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 hereof with respect to the underwriters and
all other parties to be indemnified pursuant to said Section or, at the request of any
underwriters, in the form customarily provided to such underwriters in similar types of
transactions; and

          (iv) deliver such documents and certificates as may be reasonably requested and as are
customarily delivered in similar offerings to the Holders of a majority in principal amount
of the Registrable Securities being sold and the managing underwriters, if any.

The above shall be done only in connection with any underwritten offering of not less than one half
of the Registrable Securities using such Shelf Registration Statement pursuant to an underwriting
or similar agreement as and to the extent required thereunder, and as reasonably requested by the
Majority Holders thereto; provided, however, that, anything herein to the
contrary notwithstanding, in no event will an underwritten offering of Registrable Securities be
made without the prior written agreement of the Company, which may be withheld in the Company’s
sole discretion; provided further, that, anything herein to the contrary notwithstanding, in no
event will the Company be required to pay the costs and expenses of, or to participate in the
marketing or “road show” presentations of, any underwritten offering of Registrable Securities;

13

 

               (o) if reasonably requested in connection with a disposition of Registrable Securities, make
available for inspection during business hours by representatives of the Holders of the Registrable
Securities, any underwriters participating in any disposition pursuant to a Shelf Registration
Statement and any counsel or accountant retained by any of the foregoing, all appropriate financial
and other records, pertinent corporate documents and properties of the Company reasonably requested
in writing by any such persons, and cause the respective officers, directors, employees, and any
other agents of the Company to supply all information reasonably requested by any such
representative, underwriter, special counsel or accountant in connection with a Shelf Registration
Statement, and make such representatives of the Company available for discussion of such documents
as shall be reasonably requested by the Initial Purchasers, in each case as is customary for “due
diligence” investigations; provided that, to the extent the Company, in its reasonable discretion,
agrees to disclose material non-public information, such persons shall first agree in writing with
the Company that any such non-public information shall be kept confidential by such persons and
shall be used solely for the purposes of exercising rights under this Agreement and such person
shall not engage in trading any securities of the Company until such material non-public
information becomes properly publicly available, unless (i) disclosure of such information is
required by court or administrative order or is necessary to respond to inquiries of regulatory
authorities, (ii) disclosure of such information is required by law (including any disclosure
requirements pursuant to federal securities laws in connection with the filing of any Shelf
Registration Statement or the use of any Prospectus referred to in this Agreement upon a customary
opinion of counsel for such persons delivered and reasonably satisfactory to the Company), (iii)
such information becomes generally available to the public other than as a result of a disclosure
or failure to safeguard by any such person, (iv) such information becomes available to any such
person from a source other than the Company and such source is not bound by a confidentiality
agreement, or (v) such non-public information ceases to be material; provided further, that, the
foregoing inspection and information gathering shall, to the greatest extent possible, be
coordinated on behalf of all the Holders and the other parties entitled thereto by Holders’
Counsel;

               (p) if requested in writing by any selling Holder of Registrable Securities that has provided
the information required by Section 2.1(d), a reasonable time prior to filing the Shelf
Registration Statement, any Prospectus forming a part thereof, any amendment to the Shelf
Registration Statement or amendment or supplement to such Prospectus (other than amendments and
supplements that do nothing more than name Holders and provide information with respect thereto),
(i) provide copies of such document to the Holders of Registrable Securities that have provided the
information required by Section 2.1(d), to Holders’ Counsel and to the underwriter or underwriters
of an underwritten offering of Registrable Securities, if any, (ii) make such changes in any such
document prior to the filing thereof as Holders’ Counsel or the underwriter or underwriters
reasonably agree should be included therein and provide to the Company in writing for inclusion
therein within three business days of delivery of such copies,
(iii) if requested by any selling Holder of Registrable Securities that has provided the
information required by Section 2.1(d), not file any such document in a form (A) to which the
Majority Holders, Holders’ Counsel or any underwriter shall not have previously been advised and
furnished a copy of or (B) to which the Majority Holders, Holders’ Counsel or any underwriter shall
reasonably object within three business days of delivery of such copies, and (iv) make the
representatives of the Company available for discussion of such document as shall be reasonably
requested in writing by the Holders of Registrable Securities, Holders’ Counsel or any

14

 

underwriter;
provided, however, that the foregoing discussion shall be coordinated on behalf of the parties
entitled thereto by the Holders’ Counsel;

               (q) if requested by any selling Holder or the underwriters, if any, incorporate in the Shelf
Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if
necessary, such information as such selling Holder or underwriter, if any, may reasonable request
in writing to have included therein with respect to the name or names of such selling Holder, the
number of shares of Common Stock or principal amount of Securities owned by such Holder, the plan
of distribution of the Registrable Securities (as required by Item 508 of Regulation S-K), the
principal amount of Securities or number of shares of Common Stock being sold, the purchase price
being paid therefor, and any other terms of the offering of the Registrable Securities to be sold
in such offering;

               (r) use commercially reasonable efforts to cause all Registrable Securities to be listed on
any securities exchange or inter-dealer quotation system on which similar debt securities issued by
the Company are then listed if requested by the Majority Holders, or if requested by the
underwriter or underwriters of an underwritten offering of Registrable Securities, if any;

               (s) [intentionally deleted];

               (t) otherwise comply with all applicable rules and regulations of the SEC and make available
to its security holders, as soon as reasonably practicable, an earnings statement covering at least
12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder; and

               (u) cooperate and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter and its counsel (including any
“qualified independent underwriter” that is required to be retained in accordance with the rules
and regulations of the NASD).

          Without limiting the provisions of Section 2.1(d), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing.

          Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event or the discovery of any facts, each of the kind described in Section 3(e)(ii), (iii), (iv),
(v) or (vi) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the Prospectus included in the Shelf Registration Statement
until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(j) hereof or written notice from the Company that the Shelf Registration Statement is
again effective and no amendment or supplement is needed, and, if so directed by the Company, such
Holder will deliver to the Company (at its expense) all copies in such Holder’s possession, other
than permanent file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities current at the time of receipt of such notice.

15

 

          If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees
to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents required under the terms of such underwriting arrangements.

          4. Indemnification; Contribution.

               (a) The Company agrees to indemnify and hold harmless the Initial Purchasers, each Holder,
each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and
each Person, if any, who controls any such Holder or Underwriter within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act as follows:

               (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any Shelf Registration Statement (or any amendment or supplement thereto)
pursuant to which Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, or the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the statements therein
not misleading, or arising out of any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (or any amendment or supplement thereto) or any
Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;

               (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that
(subject to Section 4(d) below) any such settlement is effected with the written
consent of the Company; and

               (iii) against any and all expense whatsoever, as incurred (including the reasonable
and
documented fees and disbursements of counsel chosen by any indemnified party), reasonably
incurred and documented in investigating, preparing or defending against any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or threatened,
or any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not paid under
subparagraph (i) or (ii) above;

16

 

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of (A) any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with written information
furnished to the Company by or on behalf of the Initial Purchasers, any Holder or Underwriter, if
any, expressly for use in a Shelf Registration Statement (or any amendment thereto), any Prospectus
(or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or
supplement thereto), (B) use of a Prospectus during a period when use of such Prospectus has been
validly suspended pursuant to Section 2.5 hereof, provided that such Holder has received prior
notice of such suspension, (C) failure of such Holder to deliver a prospectus, as then amended or
supplemented, as required by applicable laws, provided that the Company shall have delivered to
such Holder such Prospectus, as then amended or supplemented, or (D) the gross negligence, willful
misconduct or bad faith of any such party seeking indemnification.

               (b) Each Holder, severally, but not jointly, agrees to indemnify and hold harmless the
Company, the Initial Purchasers, each Underwriter, if any, and the other selling Holders, and each
of their respective directors and officers, and each Person, if any, who controls the Company, the
Initial Purchasers, any Underwriter or any other selling Holder within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability, claim, damage and
expense described in the indemnity contained in Section 4(a) hereof, as incurred and documented,
but only with respect to untrue statements or omissions, or alleged untrue statements or omissions,
made in the Shelf Registration Statement (or any amendment thereto) or any Prospectus included
therein (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus in reliance
upon and in conformity with written information with respect to such Holder furnished to the
Company by or on behalf of such Holder expressly for use in the Shelf Registration Statement (or
any amendment thereto) or such Prospectus (or any amendment or supplement thereto) or any Issuer
Free Writing Prospectus; provided, however, that no such Holder shall be liable for any claims
hereunder in excess of the amount of net proceeds received by such Holder from the sale of
Registrable Securities pursuant to such Shelf Registration Statement.

               (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In case any such
action, claim, suit, investigation or proceeding shall be brought against any indemnified party and
it shall notify the Company of the commencement thereof, the Company shall be entitled to
participate therein and to assume the defense thereof; provided, however, that in the event that
any such action, claim, suit, investigation or proceeding includes both an indemnified party and
the Company, and such indemnified party reasonably concludes that there may be legal defenses
available to it or other indemnified parties that are different from or in addition to those
available to the Company, or if the Company fails to assume the defense of the action, claim, suit,
investigation or proceeding, in either case in a timely manner, then such indemnified party may
employ separate counsel to represent or defend it in any such action, claim, suit, investigation or
proceeding and the Company will pay the reasonable fees and disbursements of such counsel;
provided, further, that the Company will not be required to pay the fees and disbursements of

17

 

more
than one counsel for all indemnified parties (and one separate local counsel). In any action,
claim, suit, investigation or proceeding the defense of which the Company assumes, the indemnified
party will have the right to participate in such litigation and to retain its own counsel at such
indemnified party’s own expense. No indemnifying party shall (i) without the prior written consent
of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise
or consent to the entry of any judgment with respect to any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in
respect of which indemnification or contribution could be sought under this Section 4 (whether or
not the indemnified parties are actual or potential parties thereto), unless such settlement,
compromise or consent (A) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (B) does not
include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party or (ii) be liable for any settlement of any such action effected without
its prior written consent (which consent shall not be unreasonably withheld).

               (d) Notwithstanding clause (ii) of Section 4(c), if at any time an indemnified party
shall
have requested an indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section 4(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.

               (e) If the indemnification provided for in this Section 4 is for any reason unavailable to
or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the Holders and the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

          The relative fault of the Company on the one hand and the Holders and the Initial Purchasers
on the other hand shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company, or by the Holders or the Initial Purchasers
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

          The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred and documented by an indemnified party and referred to

18

 

above in this Section 4
shall be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged omission.

          Notwithstanding the provisions of this Section 4, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities sold
by it were offered exceeds the amount of any damages which such Initial Purchaser has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.

          No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

          For purposes of this Section 4, each Person, if any, who controls the Initial Purchasers or
any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall
have the same rights to contribution as the Initial Purchasers or the Holder, and each director of
the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of
the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company. The obligations of the Company, the Initial Purchasers and the Holders pursuant to this
Section 4 shall be in addition to any liability that such party may otherwise have.

          5. Miscellaneous.

          5.1 Rule 144 and Rule 144A. During the Effectiveness Period, for so long as the Company
is subject to the reporting requirements of Section 13 or 15(d) of the 1934 Act, the Company
covenants that it will file the reports required to be filed by it under Section 13 of 15(d)
of the 1934 Act and the rules and regulations adopted by the SEC thereunder. If during the
Effectiveness Period the Company ceases to be so required to file such reports, the Company
covenants that it will upon the request of any Holder
of Registrable Securities (a) make publicly available such information as is necessary to permit
sales pursuant to Rule 144 under the 1933 Act, (b) deliver such information to a prospective
purchaser as is necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will take
such further action as any Holder of Registrable Securities may reasonably request for such
purpose, and (c) take such further action that is reasonable in the circumstances, in each case, to
the extent required from time to time to enable such Holder to sell its Registrable Securities
without registration under the 1933 Act within the limitation of the exemptions provided by (i)
Rule 144 under the 1933 Act, as such Rule may be amended from time to time, (ii) Rule 144A under
the 1933 Act, as such Rule may be amended from time to time, or (iii) any similar rules or
regulations hereafter adopted by the SEC. During the Effectiveness Period, upon the request of any
Holder of Registrable Securities, the Company will deliver to such Holder a written statement as to
whether it has complied with such requirements.

19

 

          5.2 No Inconsistent Agreements. The Company has not entered into and the Company shall
not, after the date of this Agreement, enter into any agreement which is inconsistent in any
material respect with the rights granted to the Holders of Registrable Securities in this
Agreement or otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not and will not for the term of this Agreement in any way conflict with
the rights granted to the holders of any of the Company’s other issued and outstanding
securities under any such agreements.

          5.3 No Adverse Actions Affecting Registration Rights. Subject to the rights of the
Company to invoke and maintain a Suspension Period, the Company shall not, directly or
indirectly, intentionally take any action with respect to the Registrable Securities as a
class that would adversely affect the ability of the Holders of Registrable Securities to
include such Registrable Securities in a registration undertaken pursuant to this Agreement.

          5.4 Amendments and Waivers. The provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or consents to
departures from the provisions hereof may not be given unless the Company has obtained the
written consent of Holders of at least a majority in aggregate principal amount of the
outstanding Registrable Securities (with Holders of Notes that constitute Registrable
Securities deemed to be the Holders, for purposes of this Section 5.4, of the number of
outstanding shares of Common Stock into which such Registrable Securities are or could be
convertible on the date that consent would be required) affected by such amendment,
modification, supplement, waiver or departure. Notwithstanding the foregoing, this Agreement
may be amended by a written agreement between the Company and the Initial Purchasers, without
the consent of the Holders of the Registrable Securities, in order to cure any ambiguity or to
correct or supplement any provision contained herein, provided that no such amendment shall
adversely affect in any material respect the interest of the Holders of Registrable
Securities. Each Holder of Registrable Securities outstanding at the time of any amendment,
modification, waiver or consent pursuant to this Section 5.4, shall be bound by such
amendment, modification, waiver or consent, whether or not any notice or writing indicating
such amendment, modification, waiver or consent is delivered to such Holder.

          5.5 Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail, facsimile, or any
courier guaranteeing overnight delivery (a) if to a Holder, at the most current address given
by such Holder to the Company in a Questionnaire or by means of a notice given in accordance
with the provisions of this Section 5.5, which address initially is the address set forth in
the Purchase Agreement with respect to Merrill Lynch, Pierce, Fenner & Smith Incorporated, as
representative of the Initial Purchasers (the “Representative”); and (b) if to the Company,
initially at the Company’s address set forth in the Purchase Agreement, and thereafter at such
other address of which notice is given in accordance with the provisions of this Section 5.5.

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on the next
business day if timely delivered to an overnight courier.

20

 

          Copies of all such notices, demands, or other communications shall be concurrently delivered
by the person giving the same to the Trustee under the Indenture, at the address specified in such
Indenture.

          5.6 Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided that
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture.
If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether
by operation of law or otherwise, such Registrable Securities shall be held subject to all of
the terms of this Agreement, and by taking and holding such Registrable Securities such person
shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and
provisions of this Agreement, including the restrictions on resale set forth in this Agreement
and, if applicable, the Purchase Agreement, and such person shall be entitled to receive the
benefits hereof.

          5.7 Third Party Beneficiaries. The Initial Purchasers (even if the Initial Purchasers
are not Holders of Registrable Securities) shall be third party beneficiaries to the
agreements made hereunder between the Company, on the one hand, and the Holders, on the other
hand, and shall have the right to enforce such agreements directly to the extent they deem
such enforcement necessary or advisable to protect their rights or the rights of Holders
hereunder. Each Holder of Registrable Securities shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Initial Purchasers, on
the other hand, and shall have the right to enforce such agreements directly to the extent it
deems such enforcement necessary or advisable to protect its rights hereunder.

          5.8 Specific Enforcement. Without limiting the remedies available to the Initial Purchasers and the Holders, the Company
acknowledges that any failure by the Company to comply with its obligations under Section 2.1
hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it may not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder
may seek such relief as may be required to specifically enforce the Company’s obligations under
Section 2.1 hereof.

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

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

          5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS

21

 

PRINCIPLES THAT WOULD
RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

          5.12 Severability. In the event that any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

          5.13 Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There
are no restrictions, promises, warranties or undertakings, other than those set forth or
referred to herein with respect to the registration rights granted by the Company with respect
to the Registrable Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

22

 

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 	 	 
	 	 	TEKTRONIX, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ JAMES F. DALTON	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James F. Dalton	 	 
	 

	 	 	 	Title: Senior Vice President,
          General Counsel, and Secretary	 	 

Registration Rights Agreement

 

Confirmed and accepted as
  of
the date first above written:

MERRILL LYNCH, PIERCE,

FENNER & SMITH INCORPORATED

	 	 	 	 	 	 	 
	By:
	 	/s/ PATRICK R. FANNON
	 

	 	 	 	 
	 

	 	Name:	Patrick Fannon
	 

	 	Title:	Vice President	 

As Representative of the Initial Purchasers

listed on Schedule A to the Purchase Agreement

Registration Rights Agreementexv10w1

 

Exhibit 10.1

 

TEKTRONIX, INC.

(an Oregon corporation)

Convertible Senior Notes due 2012

PURCHASE AGREEMENT

Dated: June 25, 2007

 

 

 

TEKTRONIX, INC.

(An Oregon corporation)

$300,000,000

Convertible Senior Notes due 2012

PURCHASE AGREEMENT

June 25, 2007

MERRILL LYNCH & CO.

Merrill Lynch, Pierce, Fenner & Smith

          Incorporated

As Representative of the several

     Initial Purchasers named in Schedule A attached hereto

c/o Merrill Lynch & Co.

        Merrill Lynch, Pierce, Fenner & Smith

               Incorporated

Ladies and Gentlemen:

     Tektronix, Inc., an Oregon corporation (the “Company”), confirms its agreement with Merrill
Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman, Sachs & Co. and Citigroup
Global Markets Inc. (the “Initial Purchasers”) with respect to the issue and sale by the Company
and the purchase by the Initial Purchasers of $300,000,000 aggregate principal amount of the
Company’s Convertible Senior Notes due 2012 (the “Initial Securities”), and with respect to the
grant by the Company to the Initial Purchasers of the option described in Section 2(b) hereof to
purchase all or any part of an additional $45,000,000 aggregate principal amount of Convertible
Senior Notes due 2012 (the “Option Securities” and together with the Initial Securities, the
“Securities”). The Securities are to be issued pursuant to an indenture to be dated as of June 29,
2007 (the “Indenture”) between the Company and U.S. Bank National Association, as trustee (the
“Trustee”).

     The Securities are convertible, subject to certain conditions as described in the Final
Offering Memorandum (as defined below), prior to maturity (unless previously redeemed or otherwise
purchased) into cash or a combination of cash and shares of common stock, no par value, of the
Company (the “Common Stock”) in accordance with the terms of the Securities and the Indenture.
Securities issued in book-entry form will be issued to Cede & Co. as nominee of The Depository
Trust Company (“DTC”) pursuant to a letter agreement, to be dated as of the Initial Closing Time
(as defined in Section 2(c)) (the “DTC Agreement”), among the Company, the Trustee and DTC.

     The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and agrees that the Initial Purchasers
may resell, subject to the conditions set forth herein, all or a portion of the Securities to
purchasers (“Subsequent Purchasers”) at any time after this Agreement has been executed and

 

 

delivered. The Securities are to be sold to the Initial Purchasers and resold by the Initial
Purchasers without being registered under the Securities Act of 1933, as amended (the “1933 Act”),
in reliance upon exemptions therefrom. Pursuant to the terms of the Securities and the Indenture,
investors that acquire Securities may only resell or otherwise transfer such Securities if such
Securities are hereafter registered under the 1933 Act or if an exemption from the registration
requirements of the 1933 Act is available (including the exemption afforded by Rule 144A (“Rule
144A”) of the rules and regulations promulgated under the 1933 Act by the Securities and Exchange
Commission (the “Commission”)). On or prior to the Initial Closing Time, the Company will enter
into an agreement with the Initial Purchasers (the “Registration Rights Agreement”), pursuant to
which, subject to the conditions set forth therein, the Company will be required to file and use
its commercially reasonable best efforts to have declared effective a registration statement (the
“Registration Statement”) under the 1933 Act to register resales of the Securities and the shares
of Common Stock issuable upon conversion thereof.

     Section 1. Representations and Warranties by the Company.

     (a) Representations and Warranties. The Company represents and warrants to the Initial
Purchasers, as of the date hereof and as of each Closing Time referred to in Section 2(c) hereof,
and agrees with the Initial Purchasers, as follows:

     (i) Disclosure Package and Offering Memorandum. The Company has prepared and
delivered to the Initial Purchasers copies of a preliminary offering memorandum dated June
25, 2007 (the “Preliminary Offering Memorandum”) and has prepared and will deliver to the
Initial Purchasers copies of a final offering memorandum dated June 25, 2007 (the “Final
Offering Memorandum”), each for use by the Initial Purchasers in connection with its
solicitation of purchases of, or offering of, the Securities. “Offering Memorandum” means,
with respect to any date or time referred to in this Agreement, the most recent offering
memorandum (whether the Preliminary Offering Memorandum or the Final Offering Memorandum, or
any amendment or supplement to either such document), including exhibits thereto and any
documents incorporated therein by reference, which has been prepared and delivered by the
Company to the Initial Purchasers in connection with its solicitation of purchases of, or
offering of, the Securities. All references in this Agreement to financial statements and
schedules and other information which is “contained,” “included” or “stated” in the Offering
Memorandum (or other references of like import) shall be deemed to mean and include all such
financial statements and schedules and other information which are incorporated by reference
in the Offering Memorandum; and all references in this Agreement to amendments or
supplements to the Offering Memorandum shall be deemed to mean and include the filing of any
document under the Securities Exchange Act of 1934 (the “Exchange Act”) which is
incorporated by reference in the Offering Memorandum.

          As of the Applicable Time (as defined below), neither (x) the Offering Memorandum as of
the Applicable Time as supplemented by the final pricing term sheet, in the form attached
hereto as Schedule B (the “Pricing Supplement”), that
has been prepared and delivered by the Company to the Initial Purchasers in connection with its
solicitation of offers to purchase Securities, all considered together (collectively, the

2

 

“Disclosure Package”), nor (y) any individual Supplemental Offering Materials (as defined
below), when considered together with the Disclosure Package, included any untrue statement
of a material fact or omitted to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading.

          “Applicable Time” means [7:00] a.m. (Eastern time) June 26, 2007 or such other time as
agreed by the Company and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated as the representative of the Initial Purchasers (the “Representative”).

          “Supplemental Offering Materials” means any “written communication” (within the meaning
of the rules and regulations under the 1933 Act) prepared by or on behalf of the Company at
the Company’s direction or used or referred to by the Company, that constitutes an offer to
sell or a solicitation of an offer to buy the Securities other than the Offering Memorandum
or amendments or supplements thereto (including the Pricing Supplement), including, without
limitation, any road show relating to the Securities that constitutes such a written
communication.

          As of its issue date and as of each Closing Time, the Final Offering Memorandum will
not include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

          The representations and warranties in this subsection shall not apply to statements in
or omissions from the Disclosure Package or the Final Offering Memorandum made in reliance
upon and in conformity with written information furnished to the Company by the Initial
Purchasers expressly for use therein.

     (ii) Incorporated Documents. The Offering Memorandum as delivered from time to
time shall incorporate by reference the most recent Annual Report of the Company on Form
10-K filed with the Commission and each Quarterly Report of the Company on Form 10-Q and
each Current Report of the Company on Form 8-K filed with the Commission since the end of
the fiscal year to which such Annual Report relates. The documents incorporated or deemed
to be incorporated by reference in the Offering Memorandum at the time they were or
hereafter are filed with the Commission complied and will comply in all material respects
with the requirements of the 1934 Act and the rules and regulations of the Commission
thereunder (the “1934 Act Regulations”).

     (iii) Independent Accountants. The accountants who certified the financial
statements and supporting schedules included in the Disclosure Package and the Final
Offering Memorandum are independent public accountants with respect to the Company and its
subsidiaries within the meaning of the 1933 Act and the rules and regulations thereunder
(the “1933 Act Regulations”).

3

 

     (iv) Financial Statements. The financial statements, together with the related
schedules and notes, included in the Disclosure Package and the Final Offering Memorandum,
present fairly the financial position of the Company and its consolidated subsidiaries at
the dates indicated and the statement of operations, shareholders’ equity and cash flows of
the Company and its consolidated subsidiaries for the periods specified; said financial
statements have been prepared in conformity with generally accepted accounting principles
(“GAAP”) applied on a consistent basis throughout the periods involved. The supporting
schedules, if any, included in the Disclosure Package and the Final Offering Memorandum,
present fairly in accordance with GAAP the information required to be stated therein. The
selected financial data and the summary financial information included in the Disclosure
Package and the Final Offering Memorandum present fairly the information shown therein and
have been compiled on a basis consistent with that of the audited financial statements
included in the Disclosure Package and the Final Offering Memorandum.

     (v) No Material Adverse Change in Business. Since the respective dates as of
which information is given in the Disclosure Package and the Final Offering Memorandum,
except as otherwise stated therein, (A) there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business (a “Material Adverse Effect”), (B) there have
been no transactions entered into by the Company or any of its subsidiaries, other than
those in the ordinary course of business, which are material with respect to the Company and
its subsidiaries considered as one enterprise, and (C) except for regular dividends on the
Common Stock, no par value, there has been no dividend or distribution of any kind declared,
paid or made by the Company on any class of its capital stock.

     (vi) Valid Existence of the Company. The Company has been duly organized and
is validly existing as a corporation under the laws of the state of Oregon and has corporate
power and authority to own, lease and operate its properties and to conduct its business as
described in the Disclosure Package and the Final Offering Memorandum and to enter into and
perform its obligations under this Agreement; and the Company is duly qualified as a foreign
corporation to transact business and is in good standing in each other jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of property or
the conduct of business, except where the failure so to qualify or to be in good standing
would not result in a Material Adverse Effect.

     (vii) Good Standing of Designated Subsidiaries. Each significant subsidiary of
the Company (as such term is defined in Rule 1-02 of Regulation S-X) (each a “Designated
Subsidiary” and, collectively, the “Designated Subsidiaries”) has been duly organized and is
validly existing as a corporation in good standing under the laws of the jurisdiction of its
incorporation, has corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Disclosure Package and the Final Offering
Memorandum and is duly qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which such

4

 

qualification is required, whether by reason of the ownership or leasing of property or
the conduct of business, except where the failure so to qualify or to be in good standing
would not result in a Material Adverse Effect; except as otherwise disclosed in the
Disclosure Package and the Final Offering Memorandum, all of the issued and outstanding
capital stock of each Designated Subsidiary has been duly authorized and validly issued, is
fully paid and non-assessable and is owned by the Company directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or
equity; none of the outstanding shares of capital stock of the Designated Subsidiaries was
issued in violation of any preemptive or similar rights of any securityholder of such
Designated Subsidiary.

     (viii) Capitalization and Other Capital Stock Matters. The total shareholders’
equity of the Company is as set forth in the Disclosure Package and the Final Offering
Memorandum in the column entitled “Actual” under the caption “Capitalization” as of the
respective dates set forth therein, and the actual, authorized, issued and outstanding
number of shares of Common Stock of the Company is as set forth in the section entitled
“Description of Capital Stock” in the Disclosure Package and the Final Offering Memorandum
as of the date set forth therein, and there have been no changes to such amounts (except for
subsequent issuances, if any, pursuant to this Agreement, pursuant to reservations,
agreements, employee benefit plans referred to in the Disclosure Package and the Final
Offering Memorandum or pursuant to the exercise of convertible securities or options
referred to in the Disclosure Package and the Final Offering Memorandum). The Common Stock
conforms in all material respects to the description thereof set forth in the Disclosure
Package and the Final Offering Memorandum. All of the outstanding shares of Common Stock
have been duly authorized and validly issued, are fully paid and nonassessable and have been
issued in compliance with federal and state securities laws. Upon issuance and delivery of
the Securities in accordance with this Agreement and the Indenture, the Securities will be
convertible at the option of the holder thereof into shares of Common Stock in accordance
with the terms of the Securities and the Indenture; the shares of Common Stock issuable upon
conversion of the Securities have been duly authorized and reserved for issuance upon such
conversion by all necessary corporate action and such shares, when issued upon such
conversion in accordance with the terms of the Securities, will be validly issued and will
be fully paid and non-assessable; no holder of such shares will be subject to personal
liability by reason of being such a holder; and the issuance of such shares upon such
conversion will not be subject to the preemptive or other similar rights of any
securityholder of the Company. None of the outstanding shares of Common Stock were issued
in violation of any preemptive rights, rights of first refusal or other similar rights to
subscribe for or purchase securities of the Company. There are no authorized or outstanding
options, warrants, preemptive rights, rights of first refusal or other rights to purchase,
or equity or debt securities convertible into or exchangeable or exercisable for, any
capital stock of the Company or any of its subsidiaries other than those accurately
described in the Disclosure Package and the Final Offering Memorandum. The description of
the Company’s stock option, stock bonus and other stock plans or arrangements, and the
options or other rights granted thereunder, set forth or incorporated by reference in the
Disclosure Package and the Final Offering Memorandum, accurately and fairly describes such
plans, arrangements, options and rights in all material respects.

5

 

     (ix) Stock Exchange Listing. The Common Stock is registered pursuant to
Section 12(g) of the 1934 Act and is listed on the New York Stock Exchange (the “NYSE”), and
the Company has taken no action designed to, or likely to have the effect of, terminating
the registration of the Common Stock under the 1934 Act or delisting the Common Stock from
the NYSE, nor has the Company received any notification that the Commission or the NYSE is
contemplating terminating such registration or listing.

     (x) Corporate Power. The Company has full right, power and authority to
execute and deliver (1) this Agreement, (2) the Securities, (3) the Indenture, (4) the
Registration Rights Agreement, (5) the confirmation (the “Convertible Note Hedge
Confirmation”) between the Company and Merrill Lynch International relating to the OTC
convertible note hedge as described in the Final Offering Memorandum, and (6) the
confirmation (the “Warrant Transaction Confirmation”) between the Company and Merrill Lynch
International relating to the OTC warrant transaction described in the Final Offering
Memorandum (the documents described in the foregoing clauses (1) through (6), collectively,
the “Transaction Documents”) and to perform its obligations hereunder and thereunder; and
all action required to be taken for the due and proper authorization, execution and delivery
of each of the Transaction Documents and the consummation of the transactions contemplated
thereby has been duly and validly taken.

     (xi) Authorization of Agreement. This Agreement has been duly authorized,
executed and delivered by the Company.

     (xii) Authorization of the Indenture. The Indenture has been duly authorized
by the Company and, when executed and delivered by the Company and the Trustee, will
constitute a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or other similar laws relating to or affecting enforcement of
creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law).

     (xiii) Authorization of Certain Other Documents. The Convertible Note Hedge
Confirmation and the Warrant Transaction Confirmation have been duly authorized by, and will
each constitute a valid and binding agreement of, the Company, each enforceable in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or other similar laws relating to or affecting enforcement of
creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law).

     (xiv) Authorization of the Registration Rights Agreement. The Registration
Rights Agreement has been duly authorized by the Company and, at the Initial Closing Time,
will be duly executed and delivered by, and will constitute a valid and binding agreement
of, the Company, enforceable in accordance with its terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency (including, without

6

 

limitation, all laws relating to fraudulent transfers), reorganization, moratorium or
other similar laws relating to or affecting enforcement of creditors’ rights generally, by
general principles of equity (regardless of whether enforcement is considered in a
proceeding in equity or at law) and, as to rights of indemnification, and contribution, by
principles of public policy or applicable law.

     (xv) Authorization of the Securities. The Securities have been duly authorized
and, at the applicable Closing Time, will have been duly executed by the Company and, when
authenticated, issued and delivered in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor as provided in this Agreement, will
constitute valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to fraudulent transfers)
reorganization, moratorium or other similar laws affecting enforcement of creditors’ rights
generally and by general principles of equity (regardless of whether enforcement is
considered in a proceeding in equity or at law), and will be in the form contemplated by,
and entitled to the benefits of, the Indenture.

     (xvi) Description of Transaction Documents and Capital Stock. The description
of the Transaction Documents and the rights, preferences and privileges of the capital stock
of the Company, including the shares of Common Stock issuable upon conversion of the
Securities, contained in the Disclosure Package and the Final Offering Memorandum, are
accurate in all material respects.

     (xvii) Absence of Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is (A) in violation of its charter or by-laws or (B) in default in the
performance or observance of any obligation, agreement, covenant or condition contained in
any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or
other agreement or instrument to which the Company or any of its subsidiaries is a party or
by which it or any of them may be bound, or to which any of the property or assets of the
Company or any of its subsidiaries is subject (collectively, “Agreements and Instruments”)
except (in the case of this clause (B)) for such defaults that would not result in a
Material Adverse Effect; and the execution, delivery and performance of the Transaction
Documents and any other agreement or instrument entered into or issued or to be entered into
or issued by the Company in connection with the transactions contemplated hereby or thereby
or in the Disclosure Package and the Final Offering Memorandum and the consummation of the
transactions contemplated herein and in the Disclosure Package and the Final Offering
Memorandum (including the issuance and sale of the Securities and the use of the proceeds
from the sale of the Securities as described in the Disclosure Package and the Final
Offering Memorandum under the caption “Use of Proceeds”) and compliance by the Company with
its obligations hereunder have been duly authorized by all necessary corporate action and do
not and will not, whether with or without the giving of notice or passage of time or both,
conflict with or constitute a breach of, or default or Repayment Event (as defined below)
under, or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of its subsidiaries pursuant to, the Agreements and
Instruments except for such conflicts, breaches or defaults or Repayment Events or liens,
charges or

7

 

encumbrances that, singly or in the aggregate, would not result in a Material Adverse
Effect, nor will such action result in any violation of the provisions of the charter or
by-laws of the Company or any of its subsidiaries or any applicable law, statute, rule,
regulation, judgment, order, writ or decree of any government, government instrumentality or
court, domestic or foreign, having jurisdiction over the Company or any of its subsidiaries
or any of their assets, properties or operations. As used herein, a “Repayment Event” means
any event or condition which gives the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such indebtedness by the Company
or any of its subsidiaries.

     (xviii) Absence of Labor Dispute. No labor dispute with the employees of the
Company or any of its subsidiaries exists or, to the knowledge of the Company, is imminent,
and the Company is not aware of any existing or imminent labor disturbance by the employees
of any of its or any of its subsidiaries’ principal suppliers, manufacturers, customers or
contractors, which, in either case, would result in a Material Adverse Effect.

     (xix) Absence of Proceedings. Except as described in the Preliminary Offering
Memorandum, there is no action, suit, proceeding, inquiry or investigation before or brought
by any court or governmental agency or body, domestic or foreign, now pending, or, to the
knowledge of the Company, threatened, against or affecting the Company or any of its
subsidiaries which would reasonably be expected to result in a Material Adverse Effect, or
which would reasonably be expected to materially and adversely affect the properties or
assets of the Company or any of its subsidiaries or the consummation of the transactions
contemplated by this Agreement or the performance by the Company of its obligations
hereunder. The aggregate of all pending legal or governmental proceedings to which the
Company or any of its subsidiaries is a party or of which any of their respective property
or assets is the subject which are not described in the Disclosure Package and the Final
Offering Memorandum, including ordinary routine litigation incidental to the business, would
not reasonably be expected to result in a Material Adverse Effect.

     (xx) Absence of Manipulation. Neither the Company nor any affiliate, as such
term is defined in Rule 501(b) under the 1933 Act (“Affiliate”), of the Company has taken,
nor will the Company or any Affiliate of the Company take, directly or indirectly, any
action which is designed to or which has constituted or which would be expected to cause or
result in stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

     (xxi) Possession of Intellectual Property. The Company and its subsidiaries
own or possess, or can acquire on reasonable terms, adequate patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks, trade names or other intellectual property (collectively,
“Intellectual Property”) necessary to carry on the business now operated by them, and
neither the Company nor any of its subsidiaries has received any notice or is

8

 

otherwise aware of any infringement of or conflict with asserted rights of others with
respect to any Intellectual Property or of any facts or circumstances which would render any
Intellectual Property invalid or inadequate to protect the interest of the Company or any of
its subsidiaries therein, and which infringement or conflict (if the subject of any
unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the
aggregate, would result in a Material Adverse Effect.

     (xxii) Absence of Further Requirements. Subject to compliance by the Initial
Purchasers with the representations and warranties of the Initial Purchasers and the
procedures set forth in Section 6 hereof, no filing with, or authorization, approval,
consent, license, order, registration, qualification or decree of, any court or governmental
authority or agency is necessary or required for the performance by the Company of its
obligations hereunder, in connection with the offering, issuance or sale of the Securities
hereunder or the consummation of the transactions contemplated by the Transaction Documents
or for the due execution, delivery or performance of the Transaction Documents by the
Company, except (A) such as have been already obtained or will be made on or prior to the
Initial Closing Time and (B) as may be required under the securities or blue sky laws of the
various states in which the Securities will be offered or sold and the 1933 Act with respect
to the registration of the resale of the Securities under the 1933 Act pursuant to the
Registration Rights Agreement.

     (xxiii) Possession of Licenses and Permits. The Company and its subsidiaries
possess such permits, licenses, approvals, consents and other authorizations (collectively,
“Governmental Licenses”) issued by the appropriate federal, state, local or foreign
regulatory agencies or bodies necessary to conduct the business now operated by them, except
where the failure so to possess would not, singly or in the aggregate, result in a Material
Adverse Effect; the Company and its subsidiaries are in compliance with the terms and
conditions of all such Governmental Licenses, except where the failure so to comply would
not, singly or in the aggregate, result in a Material Adverse Effect; all of the
Governmental Licenses are valid and in full force and effect, except where the invalidity of
such Governmental Licenses or the failure of such Governmental Licenses to be in full force
and effect would not, singly or in the aggregate, result in a Material Adverse Effect; and
neither the Company nor any of its subsidiaries has received any notice of proceedings
relating to the revocation or modification of any such Governmental Licenses which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would
result in a Material Adverse Effect.

     (xxiv) Title to Property. The Company and its subsidiaries have good and
marketable title to all real property owned by the Company and its subsidiaries and good
title to all other properties owned by them, in each case, free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or encumbrances of any kind except
such as (a) are described in the Disclosure Package and the Final Offering Memorandum or (b)
do not, singly or in the aggregate, materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the Company or any
of its subsidiaries; and all of the leases and subleases material to the business of the
Company and its subsidiaries, considered as one enterprise, and under which the Company or
any of its subsidiaries holds properties described in the Disclosure

9

 

Package and the Final Offering Memorandum, are in full force and effect, and neither
the Company nor any of its subsidiaries has any notice of any material claim of any sort
that has been asserted by anyone adverse to the rights of the Company or any of its
subsidiaries under any of the leases or subleases mentioned above, or affecting or
questioning the rights of the Company or any subsidiary thereof to the continued possession
of the leased or subleased premises under any such lease or sublease.

     (xxv) Environmental Laws. Except as described in the Disclosure Package and
the Final Offering Memorandum and except such matters as would not, singly or in the
aggregate, result in a Material Adverse Effect, (A) neither the Company nor any of its
subsidiaries is in violation of any federal, state, local or foreign statute, law, rule,
regulation, ordinance, code, policy or rule of common law or any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent, decree or
judgment, relating to pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata) or wildlife, including, without limitation, laws and regulations relating to the
release or threatened release of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum or petroleum products, asbestos-containing
materials or mold (collectively, “Hazardous Materials”) or to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials (collectively, “Environmental Laws”), (B) the Company and its subsidiaries have
all permits, authorizations and approvals required under any applicable Environmental Laws
and are each in compliance with their requirements, (C) there are no pending or threatened
administrative, regulatory or judicial actions, suits, demands, demand letters, claims,
liens, notices of noncompliance or violation, investigation or proceedings relating to any
Environmental Law against the Company or any of its subsidiaries and (D) there are no events
or circumstances that would reasonably be expected to form the basis of an order for
clean-up or remediation, or an action, suit or proceeding by any private party or
governmental body or agency, against or affecting the Company or any of its subsidiaries
relating to Hazardous Materials or Environmental Laws.

     (xxvi) Accounting Controls and Disclosure Controls. The Company and its
subsidiaries considered as one enterprise maintain a system of internal accounting controls
sufficient to provide reasonable assurances that (A) transactions are executed in accordance
with management’s general or specific authorization; (B) transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP and to
maintain accountability for assets; (C) access to assets is permitted only in accordance
with management’s general or specific authorization; and (D) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. Except as described in the Disclosure Package or
Final Offering Memorandum, since the end of the Company’s most recent audited fiscal year,
there has been (1) no material weakness in the Company’s internal control over financial
reporting (whether or not remediated) and (2) no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting. The Company and its
subsidiaries employ disclosure

10

 

controls and procedures (as defined in Rules 13a-15 and 15d-15 under the 1934 Act
Regulations) that are designed to ensure that information required to be disclosed by the
Company in the reports that it files or submits under the 1934 Act is recorded, processed,
summarized and reported, within the time periods specified in the Commission’s rules and
forms, and is accumulated and communicated to the Company’s management, including its
principal executive officer or officers and principal financial officer or officers, as
appropriate, to allow timely decisions regarding disclosure.

     (xxvii) Compliance with the Sarbanes-Oxley Act. There is and has been no
failure on the part of the Company or (except to the extent that such failure would not
reasonably be expected to cause a Material Adverse Effect) any of the Company’s directors or
officers, in their capacities as such, to comply in all material respects with any provision
of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection
therewith, including Section 402 related to loans and Sections 302 and 906 related to
certifications.

     (xxviii) Payment of Taxes. All United States federal income tax returns of the
Company and its subsidiaries required by law to be filed have been filed and all taxes shown
by such returns or otherwise assessed, which are due and payable, have been paid, except
assessments against which appeals have been or will be promptly taken and as to which
adequate reserves have been provided. The United States federal income tax returns of the
Company through the fiscal year ended May 28, 2005, have been settled and no assessment in
connection therewith has been made against the Company. The Company and its subsidiaries
have filed all other tax returns that are required to have been filed by them pursuant to
applicable foreign, state, local or other law except insofar as the failure to file such
returns would not result in a Material Adverse Effect, and has paid all taxes due pursuant
to such returns or pursuant to any assessment received by the Company and its subsidiaries,
except for such taxes, if any, as are being contested in good faith and as to which adequate
reserves have been provided. The charges, accruals and reserves on the books of the Company
in respect of any income and corporation tax liability for any years not finally determined
are adequate to meet any assessments or re-assessments for additional income tax for any
years not finally determined, except to the extent of any inadequacy that would not result
in a Material Adverse Effect.

     (xxix) Insurance. The Company and its subsidiaries carry or are entitled to
the benefits of insurance, with financially sound and reputable insurers, in such amounts
and covering such risks as is generally maintained by companies of established repute
engaged in the same or similar business, and all such insurance is in full force and effect.
The Company has no reason to believe that it or any subsidiary will not be able (A) to
renew its existing insurance coverage as and when such policies expire or (B) to obtain
comparable coverage from similar institutions as may be necessary or appropriate to conduct
its business as now conducted and at a cost that would not result in a Material Adverse
Change. Neither of the Company nor any subsidiary has in the immediately preceding three
years been denied any insurance coverage which it has sought or for which it has applied.

11

 

     (xxx) Statistical and Market-Related Data. Any statistical and market-related
data included in the Disclosure Package and the Final Offering Memorandum are based on or
derived from information that the Company believes to be reliable and accurate.

     (xxxi) Investment Company Act. The Company is not required, and upon the
issuance and sale of the offered Securities as herein contemplated and the application of
the net proceeds therefrom as described in the Disclosure Package and the Final Offering
Memorandum, will not be required, to register as an “investment company” under the
Investment Company Act of 1940, as amended (the “1940 Act”).

     (xxxii) Registration Rights. There are no persons with registration rights or
other similar rights to have any securities registered by the Company under the 1933 Act,
other than with respect to the registration of the resale of the Securities under the 1933
Act pursuant to the Registration Rights Agreement.

     (xxxiii) Similar Offerings. Neither the Company nor any of its Affiliates has,
directly or indirectly, solicited any offer to buy, sold or offered to sell or otherwise
negotiated in respect of, or will solicit any offer to buy, sell or offer to sell or
otherwise negotiate in respect of, in the United States or to any United States citizen or
resident, any security which is or would be integrated with the sale of the Securities in a
manner that would require the offered Securities to be registered under the 1933 Act.

     (xxxiv) Rule 144A Eligibility. The Securities are eligible for resale pursuant
to Rule 144A and will not be, at each Closing Time, of the same class as securities listed
on a national securities exchange registered under Section 6 of the 1934 Act, or quoted in a
U.S. automated interdealer quotation system.

     (xxxv) No General Solicitation. None of the Company, its Affiliates or any
person acting on its or any of their behalf (other than the Initial Purchasers, as to whom
the Company makes no representation) has engaged or will engage, in connection with the
offering of the offered Securities, in any form of general solicitation or general
advertising within the meaning of Rule 502(c) under the 1933 Act.

     (xxxvi) No Registration Required. Subject to compliance by the Initial
Purchasers with the representations and warranties of the Initial Purchasers and the
procedures set forth in Section 6 hereof, it is not necessary in connection with the offer,
sale and delivery of the offered Securities to the Initial Purchasers and to each Subsequent
Purchaser in the manner contemplated by this Agreement, the Offering Memorandum to register
the Securities under the 1933 Act or to qualify the Indenture under the Trust Indenture Act
of 1939, as amended (the “1939 Act”).

     (xxxvii) Foreign Corrupt Practices Act. Neither the Company nor, to the
knowledge of the Company, any director, officer, agent, employee, Affiliate or other person
acting on behalf of the Company or any of its subsidiaries has taken any action, directly or
indirectly, that would result in a violation by the Company or by such director, officer,
agent (in its capacity as an agent of the Company), employee, Affiliate or other

12

 

person of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder (the “FCPA”), including, without limitation, making use of the mails
or any means or instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property,
gift, promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the
Company and, to the knowledge of the Company, its Affiliates have conducted their businesses
in compliance with the FCPA and have instituted and maintain policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure, continued
compliance therewith.

     (xxxviii) Money Laundering Laws. The operations of the Company are and have
been conducted at all times in compliance with applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no
action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company with respect to the Money Laundering Laws is pending
or, to the best knowledge of the Company, threatened.

     (xxxix) OFAC. Neither the Company nor, to the knowledge of the Company, any
director, officer, agent, employee, Affiliate or person acting on behalf of the Company is
currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly
use the proceeds of the offering, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose
of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

     (xl) Solvency. The Company is, and immediately after each Closing Time and
immediately upon consummation of the transactions contemplated herein and in the Offering
Memorandum will be, Solvent. As used herein, the term “Solvent” means, with respect to an
entity, on a particular date, that on such date (a) the fair market value of the assets of
such entity is greater than the total amount of liabilities (including the probable amount
of contingent liabilities) of such entity, (b) the present fair salable value of the assets
of the entity is greater than the amount that will be required to pay the probable
liabilities of such entity on its debt as they become absolute and mature, (c) the entity is
able to realize upon its assets and pay its debts and other liabilities (including the
probable amount of contingent liabilities) as they mature, and (d) the entity does not have
unreasonably small capital.

     (xli) ERISA Compliance. The Company and its subsidiaries and any “employee
benefit plan” (as defined under the Employee Retirement Income Security Act of 1974, as
amended, and the regulations and published interpretations thereunder

13

 

(collectively, “ERISA”)) established or maintained by the Company, its subsidiaries or
their “ERISA Affiliates” (as defined below) are in compliance in all material respects with
ERISA. “ERISA Affiliate” means, with respect to the Company or any of its subsidiaries, any
member of any group of organizations described in Sections 414(b), (c), (m) or (o) of the
Internal Revenue Code of 1986, as amended, and the regulations and published interpretations
thereunder (the “Code”) of which the Company or any of its subsidiaries is a member. No
“reportable event” (as defined under Section 403 of ERISA) for which reporting has not been
waived under applicable regulations has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the Company, any of its
subsidiaries or any of their ERISA Affiliates. No “employee benefit plan” subject to Title
IV of ERISA established or maintained by the Company, any of its subsidiaries or any of
their ERISA Affiliates, if such “employee benefit plan” were terminated, would have any
“amount of unfunded benefit liabilities” (as defined under ERISA). Neither the Company, its
subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to incur
any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal
from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of the Code.
Each “employee benefit plan” established or maintained by the Company, any of its
subsidiaries or any of their ERISA Affiliates that is intended to be qualified under Section
401 of the Code is so qualified and nothing has occurred, whether by action or failure to
act, which would cause the loss of such qualification.

     (b) Officer’s Certificates. Any certificate signed by any officer of the Company or any of
its subsidiaries delivered pursuant to Section 5(c) of this Agreement to the Initial Purchasers or
to counsel for the Initial Purchasers shall be deemed a representation and warranty by the Company
to the Initial Purchasers as to the matters covered thereby.

     Section 2. Sale and Delivery to Initial Purchasers; Closing.

     (a) Initial Securities. On the basis of the representations, warranties and agreements herein
contained and subject to the terms and conditions herein set forth, the Company agrees to sell to
the Initial Purchasers, and the Initial Purchasers, agree to purchase from the Company, at a
purchase price of 97.5% of the principal amount thereof, $300,000,000 aggregate principal amount of
Initial Securities.

     (b) Option Securities. In addition, on the basis of the representations, warranties and
agreements herein contained and subject to the terms and conditions herein set forth, the Company
hereby grants an option to the Initial Purchasers to purchase up to an additional $45,000,000
aggregate principal amount of Option Securities at a purchase price of 97.5% of the principal
amount thereof, plus accrued and unpaid interest from the Initial Closing Time to, but excluding,
the Option Closing Time. The option hereby granted will expire 13 days after the date hereof and
may be exercised at any time (but not more than once) upon notice by the Representative to the
Company setting forth the number of Option Securities as to which the Initial Purchasers are then
exercising the option and the time and date of payment and delivery for such Option Securities.
Any such time and date of delivery (the “Option Closing Time”)
shall be determined by the Representative but shall not be later than seven (7) full business
days

14

 

after the exercise of said option, nor in any event prior to the Initial Closing Time, as
hereinafter defined.

     (c) Payment. Payment of the purchase price for, and delivery of a global certificate for, the
Initial Securities shall be made at the office of Shearman & Sterling LLP, 599 Lexington Avenue,
New York, New York 10022, or at such other place as shall be agreed upon by the Representative and
the Company, at 9:00 A.M. (Eastern time) on the fourth business day after the date hereof, or such
other time not later than ten business days after such date as shall be agreed upon by the
Representative and the Company (such time and date of payment and delivery being herein called the
“Initial Closing Time” and the Initial Closing Time and the Option Closing Time, each being the
applicable “Closing Time”).

     In addition, in the event that the Initial Purchasers have exercised the option to purchase
all or any of the Option Securities, payment of the purchase price for, and delivery of one or more
global certificates for, such Option Securities shall be made at the above-mentioned offices, or at
such other place as shall be agreed upon by Representative and the Company, on the Option Closing
Time as specified in the notice from the Representative to the Company.

     Payment shall be made to the Company by wire transfer of immediately available funds to a bank
account designated by the Company, against delivery to the Initial Purchasers of a global
certificate for the Securities to be purchased by them.

     (d) Denominations; Registration. Global certificates for the Initial Securities and the
Option Securities, if any, shall be registered in the name of Cede & Co., as nominee of DTC, and
shall be in such denominations ($1,000 or integral multiples of $1,000 in excess thereof) as the
Representative may request in writing at least one full business day before the Initial Closing
Time or the Option Closing Time, as the case may be. The global certificates representing the
Initial Securities and the Option Securities, if any, shall be made available for examination and
packaging by the Representative in The City of New York not later than 10:00 A.M. on the last
business day prior to the Initial Closing Time or the Option Closing Time, as the case may be.

     Section 3. Covenants of the Company. The Company covenants with the Initial
Purchasers as follows:

     (a) Offering Memorandum. The Company, as promptly as possible, will furnish to the Initial
Purchasers, without charge, such number of copies of the Offering Memorandum and any amendments and
supplements thereto and documents incorporated by reference therein as the Initial Purchasers may
reasonably request.

     (b) Notice and Effect of Material Events. The Company will immediately notify the Initial
Purchasers, and confirm such notice in writing, of (x) any filing made by the Company of
information relating to the offering of the Securities with any securities exchange or any other
regulatory body in the United States or any other jurisdiction, and (y) prior to the completion of
the placement of the Securities by the Initial Purchasers as evidenced by a notice in writing from
the Initial Purchasers to the Company, any material changes in or affecting the condition,
financial or otherwise, or the earnings, business affairs or business prospects of the Company and
its subsidiaries considered as one enterprise which (i) make any statement in the Disclosure

15

 

Package, any Offering Memorandum or any Supplemental Offering Materials false or misleading or (ii)
are not disclosed in the Disclosure Package or the Offering Memorandum. In such event or if during
such time any event shall occur as a result of which it is necessary, in the reasonable opinion of
any of the Company, its counsel, the Initial Purchasers or counsel for the Initial Purchasers, to
amend or supplement the Offering Memorandum in order that the Offering Memorandum not include any
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances then existing, the Company will
forthwith amend or supplement the Offering Memorandum by preparing and furnishing to the Initial
Purchasers an amendment or amendments of, or a supplement or supplements to, the Offering
Memorandum (in form and substance satisfactory in the reasonable opinion of counsel for the Initial
Purchasers) so that, as so amended or supplemented, the Offering Memorandum will not include an
untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances existing at the time it is delivered to a
Subsequent Purchaser, not misleading.

     (c) Amendment and Supplements to the Offering Memorandum; Preparation of Pricing Supplement;
Supplemental Offering Materials. The Company will advise the Initial Purchasers promptly of any
proposal to amend or supplement the Offering Memorandum and will not effect such amendment or
supplement without the consent of the Representative. Neither the consent of the Representative,
nor the Initial Purchasers’ delivery of any such amendment or supplement, shall constitute a waiver
of any of the conditions set forth in Section 5 hereof. The Company will prepare the Pricing
Supplement, in form and substance satisfactory to the Initial Purchasers, and shall furnish prior
to the Applicable Time to the Initial Purchasers, without charge, as many copies of the Pricing
Supplement as the Initial Purchasers may reasonably request. The Company represents and agrees
that, unless it obtained or obtains the prior consent of the Representative, it has not made and
will not make any offer relating to the Securities by means of any Supplemental Offering Materials;
and each of the Initial Purchasers represents and agrees that, except if it obtained or obtains the
prior consent of the Company, it has not made and will not make any offer relating to the
Securities by means of any Supplemental Offering Materials; in each case other than by means of the
Pricing Supplement.

     (d) Qualification of Securities for Offer and Sale. The Company will use its best efforts, in
cooperation with the Initial Purchasers to qualify the Securities and the shares of Common Stock
issuable upon conversion thereof for offering and sale under the applicable securities laws of such
states and other jurisdictions as the Representative may designate and to maintain such
qualifications in effect as long as required for the sale of the Securities; provided that in
connection therewith the Company shall not be required to qualify as a foreign corporation in any
jurisdiction in which it is not so qualified or to file any general consent to service of process
in any jurisdiction.

     (e) DTC. The Company will cooperate with the Initial Purchasers and use its best efforts to
permit the Securities to be eligible for clearance and settlement through the facilities of DTC.

     (f) Use of Proceeds. The Company will use the net proceeds received by it from the sale of
the Securities in the manner specified in the Offering Memorandum under “Use of Proceeds.”

16

 

     (g) Restriction on Sale of Securities. During a period of 90 days from the date of the Final
Offering Memorandum (the “Lock Up Period”), the Company will not, without the prior written consent
of Merrill Lynch, directly or indirectly, (i) offer, pledge, sell, or contract to sell any Common
Stock or securities convertible into or exchangeable or exercisable for or repayable with Common
Stock, whether owned at the date of the Final Offering Memorandum or thereafter acquired by the
Company or with respect to which the Company has or acquires the power of disposition
(collectively, “Relevant Securities”); (ii) sell any option or contract to purchase any Relevant
Securities; (iii) purchase any option or contract to sell any Relevant Securities; (iv) grant any
option, right or warrant for the sale of any Relevant Securities; (v) lend or otherwise dispose of
any Relevant Securities; (vi) transfer any Relevant Securities or securities convertible into or
exchangeable or exercisable for or repayable with Relevant Securities; (vii) file or request or
demand that we file a registration statement under the Securities Act relating to any sales of any
shares of Relevant Securities; or (viii) enter into any swap or other agreement or any transaction
that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership
of Relevant Securities whether any such swap or transaction is to be settled by delivery of our
shares of common stock or other securities, in cash or otherwise; provided, however, that the
foregoing restrictions shall not apply to (A) the purchase of call options and the sale of warrants
described in this Final Offering Memorandum, and any transactions in the Company’s securities
contemplated thereby; (B) the acquisition of Common Stock by directors and employees of the Company
upon the conversion of outstanding stock units and the exercise of stock options; (C) sales of
shares of Common Stock pursuant to any 10b5-1 plans in effect on the date of the Final Offering
Memorandum; (D) issuances of Common Stock (in an amount not to exceed 5% of the Common Stock then
issued and outstanding) in connection with a merger, acquisition or other business combination, or
(E) the issuance to the Company’s directors and employees of stock options, stock units and stock
pursuant to the Company’s existing stock plans, employee benefit plans and director compensation
plans; and provided, further, that, notwithstanding the foregoing, the Company may file a
registration statement with the SEC on Form S-8 for securities to be issued under the Company’s
stock plans and may also register on Form S-4 shares that the Company may issue in connection with
the acquisition of another business.

     (h) PORTAL Designation. The Company will use its best efforts to permit the Securities to be
designated PORTAL securities in accordance with the rules and regulations adopted by the National
Association of Securities Dealers, Inc. (“NASD”) relating to trading in the PORTAL Market.

     (i) Listing on Securities Exchange. The Company will use its best efforts to cause all shares
of Common Stock issuable upon conversion of the Securities to be listed on the New York Stock
Exchange.

     (j) Reporting Requirements. Until the offering of the Securities is complete, the Company
will file all documents required to be filed with the Commission pursuant to the 1934 Act within
the time periods required by the 1934 Act and the 1934 Act Regulations.

17

 

     Section 4. Payment of Expenses.

     (a) Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including (i) the preparation, printing, and delivery to the
Initial Purchasers and any filing of the Disclosure Package or any Offering Memorandum (including
financial statements and any schedules or exhibits and any document incorporated therein by
reference) and of each amendment or supplement thereto or of any Supplemental Offering Material,
(ii) the preparation, printing and delivery to the Initial Purchasers of this Agreement, the
Registration Rights Agreement, the Indenture and such other documents as may be required in
connection with the offering, purchase, sale, issuance or delivery of the Securities, (iii) the
preparation, issuance and delivery of the global certificates for the Securities to the Initial
Purchasers and the certificates for the Common Stock issuable upon conversion thereof, including
any transfer taxes, any stamp or other duties payable upon the sale, issuance and delivery of the
Securities to the Initial Purchasers, the issuance and delivery of the Common Stock issuable upon
conversion thereof and any charges of DTC in connection therewith, (iv) the fees and disbursements
of the Company’s counsel, accountants and other advisors, (v) the qualification of the Securities
and the shares of Common Stock issuable upon conversion thereof under securities laws in accordance
with the provisions of Section 3(d) hereof, including filing fees and the reasonable fees and
disbursements of counsel (not to exceed $5,000) for the Initial Purchasers in connection therewith
and in connection with the preparation of the Blue Sky Survey, any supplement thereto, (vi) the
fees and expenses of the Trustee, including the fees and disbursements of counsel for the Trustee
in connection with the Indenture and the Securities, (vii) the costs and expenses of the Company
relating to investor presentations on any “road show” undertaken in connection with the marketing
of the Securities including, without limitation, expenses associated with the production of road
show slides and graphics, fees and expenses of any consultants engaged in connection with the road
show presentations, travel and lodging expenses of the representatives and officers of the Company
and any such consultants, and the cost of aircraft and other transportation chartered in connection
with the road show, (viii) any fees payable in connection with the rating of the Securities, (ix)
any fees and expenses payable in connection with the initial and continued designation of the
Securities as PORTAL securities under the PORTAL Market Rules pursuant to NASD Rule 5322, (x) any
fees of the NASD in connection with the Securities, and (xi) the fees and expenses of any transfer
agent or registrar for the Common Stock.

     (b) Termination of Agreement. If this Agreement is terminated by the Initial Purchasers in
accordance with the provisions of Section 5 or Section 10(a)(i) hereof, the Company shall reimburse
the Initial Purchasers for all of their out-of-pocket expenses, including the reasonable fees and
disbursements of counsel for the Initial Purchasers.

     Section 5. Conditions of Initial Purchasers’ Obligations. The obligations of the
Initial Purchasers hereunder are subject to the accuracy of the representations and warranties of
the Company contained in Section 1 hereof or in certificates of any officer of the Company or any
of its subsidiaries delivered pursuant to the provisions hereof, to the performance by the Company
of its covenants and other obligations hereunder, and to the following further conditions:

18

 

     (a) Opinion of Counsel for Company. At each Closing Time, the Initial Purchasers shall have
received the opinion, dated as of such Closing Time, of Stoel Rives LLP, counsel for the
Company, in form and substance satisfactory to counsel for the Initial Purchasers, to the
effect set forth in Exhibit A hereto.

     (b) Opinion of Counsel for Initial Purchasers. At each Closing Time, the Initial Purchasers
shall have received the favorable opinion, dated as of Closing Time, of Shearman & Sterling LLP,
counsel for the Initial Purchasers. In giving such opinion such counsel may rely, as to all
matters governed by the laws of jurisdictions other than the law of the State of New York, the
federal law of the United States and General Corporation Law of the State of Delaware, upon the
opinions of counsel satisfactory to the Initial Purchasers. Such counsel may also state that,
insofar as such opinion involves factual matters, they have relied, to the extent they deem proper,
upon certificates of officers of the Company and its subsidiaries and certificates of public
officials.

     (c) Officers’ Certificate. At each Closing Time, there shall not have been, since the date
hereof or since the date as of which information is given in the Final Offering Memorandum
(exclusive of any amendments or supplements thereto subsequent to the date of this Agreement), any
Material Adverse Effect, and the Initial Purchasers shall have received a certificate of the
President or a Vice President of the Company and of the chief financial officer, chief accounting
officer or treasurer of the Company, dated as of such Closing Time, to the effect that (i) there
has been no Material Adverse Effect, (ii) the representations and warranties in Section 1 hereof
are true and correct with the same force and effect as though expressly made at and as of such
Closing Time, and (iii) the Company has complied with all agreements and satisfied all conditions
on its part to be performed or satisfied at or prior to such Closing Time.

     (d) Accountants’ Comfort Letter. At the time of the execution of this Agreement, the Initial
Purchasers shall have received from Deloitte & Touche LLP a letter dated such date, in form and
substance satisfactory to the Initial Purchasers, containing statements and information of the type
ordinarily included in accountants’ “comfort letters” to Initial Purchasers with respect to the
financial statements and certain financial information contained in the Preliminary Offering
Memorandum.

     (e) Bring-down Comfort Letter. At each Closing Time, the Initial Purchasers shall have
received from Deloitte & Touche LLP a letter, dated as of such Closing Time, to the effect that
they reaffirm the statements made in the letter furnished pursuant to subsection (d) of this
Section, except that the specified date referred to shall be a date not more than three business
days prior to such Closing Time and that the Offering Memorandum referred to shall be the Final
Offering Memorandum.

     (f) PORTAL. At the Initial Closing Time, the Securities shall have been designated for
trading on PORTAL.

     (g) Lock-up Agreements. On the date of this Agreement, the Initial Purchasers shall have
received “lock-up letters,” in the form attached hereto as Exhibit B, from the named executive
officers and directors of the Company, and such letters shall be in full force and effect at each
Closing Time.

19

 

     (h) Indenture and Registration Rights Agreement. At or prior to the Initial Closing Time, the
Company and the Trustee shall have executed and delivered the Indenture, and the Company shall have
executed and delivered the Registration Rights Agreement, each in a form satisfactory to the
Initial Purchasers.

     (i) Approval of Listing. At the Initial Closing Time, the shares of Common Stock issuable
upon conversion of the Securities shall have been approved for listing on the New York Stock
Exchange, subject only to official notice of issuance.

     (j) Execution and Delivery of Certain Transaction Documents. At or prior to the Initial
Closing Time, the Company shall have executed and delivered the Convertible Note Hedge Confirmation
and the Warrant Transaction Confirmation.

     (k) Additional Documents. At each Closing Time, counsel for the Initial Purchasers shall have
been furnished with such documents and opinions as they may require for the purpose of enabling
them to pass upon the issuance and sale of the Securities as herein contemplated, or in order to
evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the
conditions, herein contained; and all proceedings taken by the Company in connection with the
issuance and sale of the Securities as herein contemplated shall be satisfactory in form and
substance to the Initial Purchasers and counsel for the Initial Purchasers.

     (l) Termination of Agreement. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement may be terminated by the Initial
Purchasers by notice to the Company at any time at or prior to each Closing Time, and such
termination shall be without liability of any party to any other party except as provided in
Section 4 and except that Sections 1, 7, 8 and 9 shall survive any such termination and remain in
full force and effect.

     Section 6. Subsequent Offers and Resales of the Securities.

     (a) Offer and Sale Procedures. The Initial Purchasers and the Company hereby establish and
agree to observe the following procedures in connection with the offer and sale of the Securities:

     (i) Offers and Sales. Offers and sales of the Securities shall only be made to
persons whom the offeror or seller reasonably believes to be qualified institutional buyers,
as defined in Rule 144A under the 1933 Act (“Qualified Institutional Buyers”).

     (ii) No General Solicitation. No general solicitation or general advertising
(within the meaning of Rule 502(c) under the 1933 Act) will be used in the United States in
connection with the offering or sale of the Securities.

     (iii) Purchases by Non-Bank Fiduciaries. In the case of a non-bank Subsequent
Purchaser of a Security acting as a fiduciary for one or more third parties, each third
party shall, in the judgment of the Initial Purchasers, be a Qualified Institutional Buyer.

20

 

     (iv) Subsequent Purchaser Notification. The Initial Purchasers will take
reasonable steps to inform, and cause each of its U.S. Affiliates to take reasonable steps
to inform, persons acquiring Securities from the Initial Purchasers or affiliate, as the
case may be, in the United States that the Securities (A) have not been and will not be
registered under the 1933 Act, (B) are being sold to them without registration under the
1933 Act in reliance on Rule 144A or in accordance with another exemption from registration
under the 1933 Act, as the case may be, and (C) may not be offered, sold or otherwise
transferred except (1) to the Company, (2) outside the United States in accordance with
Regulation S under the 1933 Act, or (3) inside the United States in accordance with (x) Rule
144A to a person whom the seller reasonably believes is a Qualified Institutional Buyer that
is purchasing such Securities for its own account or for the account of a Qualified
Institutional Buyer to whom notice is given that the offer, sale or transfer is being made
in reliance on Rule 144A or (y) pursuant to another available exemption from registration
under the 1933 Act.

     (v) Minimum Principal Amount. No sale of the Securities to any one Subsequent
Purchaser will be for less than U.S. $1,000 principal amount and no Security will be issued
in a smaller principal amount. If the Subsequent Purchaser is a non-bank fiduciary acting
on behalf of others, each person for whom it is acting must purchase at least U.S. $1,000
principal amount of the Securities.

     (b) Covenants of the Company. The Company covenants with the Initial Purchasers as follows:

     (i) Integration. The Company agrees that it will not and will cause its
Affiliates not to, directly or indirectly, solicit any offer to buy, sell or make any offer
or sale of, or otherwise negotiate in respect of, securities of the Company of any class if,
as a result of the doctrine of “integration” referred to in Rule 502 under the 1933 Act,
such offer or sale would render invalid (for the purpose of (i) the sale of the Securities
by the Company to the Initial Purchasers, (ii) the resale of the Securities by the Initial
Purchasers to Subsequent Purchasers or (iii) the resale of the Securities by such Subsequent
Purchasers to others) the exemption from the registration requirements of the 1933 Act
provided by Section 4(2) thereof or by Rule 144A thereunder or otherwise.

     (ii) Rule 144A Information. The Company agrees that, in order to render the
offered Securities eligible for resale pursuant to Rule 144A under the 1933 Act, while any
of the offered Securities remain outstanding, it will make available, upon request, to any
holder of offered Securities or prospective purchasers of Securities the information
specified in Rule 144A(d)(4), unless the Company furnishes information to the Commission
pursuant to Section 13 or 15(d) of the 1934 Act.

     (iii) Restriction on Repurchases. Until the expiration of two years after the
original issuance of the offered Securities, the Company will not, and will cause its
Affiliates not to, resell any offered Securities which are “restricted securities” (as such
term is defined under Rule 144(a)(3) under the 1933 Act), whether as beneficial owner or
otherwise (except as agent acting as a securities broker on behalf of and for the account of
customers in the ordinary course of business in unsolicited broker’s transactions).

21

 

     (c) Qualified Institutional Buyer. Each of the Initial Purchasers represents and warrants to,
and agrees with, the Company that it is a Qualified Institutional Buyer and an “accredited
investor” within the meaning of Rule 501(a) under the 1933 Act (an “Accredited Investor”).

     Section 7. Indemnification.

     (a) Indemnification of Initial Purchasers. The Company agrees to indemnify and hold harmless
the Initial Purchasers, their affiliates, as such term is defined in Rule 501(b) under the 1933 Act
(each, an “Affiliate”), their selling agents and each person, if any, who controls any Initial
Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act as
follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Preliminary Offering Memorandum, the Disclosure Package, the Final Offering
Memorandum (or any amendment or supplement thereto) or any Supplemental Offering Materials,
or the omission or alleged omission therefrom of a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 7(d) below) any such
settlement is effected with the written consent of the Company; and

     (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by the Initial Purchasers), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under (i) or (ii)
above;

provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by the Initial Purchasers expressly for use in the Preliminary
Offering Memorandum, the Disclosure Package, the Final Offering Memorandum (or any amendment or
supplement thereto) or in any Supplemental Offering Materials.

     (b) Indemnification of Company. The Initial Purchasers severally agree to indemnify and hold
harmless the Company and each person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in subsection (a) of

22

 

this Section, as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in any preliminary offering memorandum, the Disclosure
Package, the Final Offering Memorandum or any Supplemental Offering Materials in reliance upon and
in conformity with written information furnished to the Company by the Initial Purchasers expressly
for use therein.

     (c) Actions against Parties; Notification. Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability under this Section 7 to the extent it
is not materially prejudiced as a result thereof and in any event shall not relieve it from any
liability which it may have otherwise than on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 7(a) above, counsel to the indemnified parties shall be
selected by the Representative, and, in the case of parties indemnified pursuant to Section 7(b)
above, counsel to the indemnified parties shall be selected by the Company. An indemnifying party
may participate at its own expense in the defense of any such action; provided,
however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying
parties be liable for fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any judgment with respect
to any litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section or Section 8 hereof (whether or not the indemnified parties are actual or
potential parties thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.

     (d) Settlement without Consent if Failure to Reimburse. If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section 7(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.

     Section 8. Contribution. If the indemnification provided for in Section 7 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein,
then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, (i) in such proportion as is appropriate to reflect

23

 

the relative
benefits received by the Company on the one hand and the Initial Purchasers on the other hand from
the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by
clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative fault of the
Company on the one hand and of the Initial Purchasers on the other hand in connection with the
statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as
well as any other relevant equitable considerations.

     The relative benefits received by the Company on the one hand and the Initial Purchasers on
the other hand in connection with the offering of the Securities pursuant to this Agreement shall
be deemed to be in the same respective proportions as the total net proceeds from the offering of
the Securities pursuant to this Agreement (before deducting expenses) received by the Company and
the total underwriting discount received by the Initial Purchasers, bear to the aggregate initial
offering price of the Securities.

     The relative fault of the Company on the one hand and the Initial Purchasers on the other hand
shall be determined by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by the Company or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

     The Company and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section were determined by pro rata allocation or by any other method
of allocation which does not take account of the equitable considerations referred to above in this
Section. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an
indemnified party and referred to above in this Section shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.

     Notwithstanding the provisions of this Section, the Initial Purchasers shall not be required
to contribute any amount in excess of the amount by which the total price at which the Securities
purchased and sold by it hereunder exceeds the amount of any damages which the Initial Purchasers
have otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section, each person, if any, who controls any Initial Purchaser within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and the Initial
Purchasers’ Affiliates and selling agents shall have the same rights to contribution as the
Initial Purchasers, and each person, if any, who controls the Company within the meaning of Section
15

24

 

of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution as the
Company.

     Section 9. Representations, Warranties and Agreements to Survive. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company or any of its subsidiaries submitted pursuant hereto shall remain operative
and in full force and effect, regardless of (i) any investigation made by or on behalf of the
Initial Purchasers or their Affiliates or selling agents, any person controlling the Initial
Purchasers, their officers or directors or any person controlling the Company and (ii) delivery of
and payment for the Securities.

     Section 10. Defaulting Initial Purchasers. If, at any Closing Time, any Initial Purchaser
shall fail or refuse to purchase the principal amount of Securities agreed to be purchased by such
Initial Purchaser hereunder, the non-defaulting Initial Purchasers shall be obligated to purchase
the principal amount of Securities that the defaulting Initial Purchaser agreed but failed to
purchase on such Closing Time in the respective proportions which the principal amount of
Securities set forth opposite the name of each non-defaulting Initial Purchaser in Schedule A
hereto bears to the aggregate principal amount of Securities set forth opposite the names of all
non-defaulting Initial Purchasers; provided, however, that the non-defaulting Initial Purchasers
shall not be obligated to purchase any of the Securities at such Closing Time if the aggregate
principal amount of Securities that the defaulting Initial Purchaser or Initial Purchasers agreed
but failed to purchase on such date exceeds 10% of the aggregate principal amount of Securities to
be purchased at such Closing Time. If the foregoing maximum is exceeded, the non-defaulting
Initial Purchasers, or those other initial purchasers satisfactory to the Company and the
Representative who so agree, shall have the right, but shall not be obligated, to purchase, in such
proportion as may be agreed upon among them, all the Securities to be purchased at such Closing
Time. If the non-defaulting Initial Purchasers do not elect to purchase the Securities that the
defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase on such Closing
Time, this Agreement shall terminate without liability on the part of any non-defaulting Initial
Purchaser or the Company, except that the Company will continue to be liable for the payment of
expenses (for any non-defaulting Initial Purchaser) to the extent set forth in, and subject to the
terms of, Section 4. As used in this Agreement, the term “Initial Purchaser” includes, for all
purposes of this Agreement unless the context requires otherwise, any party not listed in Schedule
A hereto that, pursuant to this Section 10, purchases Securities that a defaulting Initial
Purchaser agreed but failed to purchase. Any action taken under this Section 10 shall not relieve
any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser
under this Agreement.

     Section 11. Termination of Agreement.

     (a) Termination; General. The Initial Purchasers may terminate this Agreement, by notice to
the Company, at any time at or prior to each Closing Time (i) if there has been, since the time of
execution of this Agreement or since the date as of which information is given in the Preliminary
Offering Memorandum, the Disclosure Package or the Final Offering Memorandum (exclusive of any
amendments or supplements thereto subsequent to the date of this Agreement), any material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the Company and its subsidiaries considered as one enterprise,

25

 

whether or not arising
in the ordinary course of business, or (ii) if there has occurred any material adverse change in
the financial markets in the United States or the international financial markets, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any change or development
involving a prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it, in the judgment of the Initial
Purchasers, impracticable or inadvisable to market the Securities or to enforce contracts for the
sale of the Securities, or (iii) if trading in any securities of the Company has been suspended or
materially limited by the Commission or the New York Stock Exchange, or if trading generally on the
American Stock Exchange or the New York Stock Exchange or in the NASDAQ System has been suspended
or materially limited, or minimum or maximum prices for trading have been fixed, or maximum ranges
for prices have been required, by any of said exchanges or by such system or by order of the
Commission, the National Association of Securities Dealers, Inc. or any other governmental
authority, or (iv) a material disruption has occurred in commercial banking or securities
settlement or clearance services in the United States, or (v) if a banking moratorium has been
declared by either Federal or New York authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this Section, such termination
shall be without liability of any party to any other party except as provided in Section 4 hereof,
and provided further that Sections 1, 7, 8 and 9 shall survive such termination and remain in full
force and effect.

     Section 12. Tax Disclosure. Notwithstanding any other provision of this Agreement,
immediately upon commencement of discussions with respect to the transactions contemplated hereby,
the Company (and each employee, representative or other agent of the Company) may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the
transactions contemplated by this Agreement and all materials of any kind (including opinions or
other tax analyses) that are provided to the Company relating to such tax treatment and tax
structure. For purposes of the foregoing, the term “tax treatment” is the purported or claimed
federal income tax treatment of the transactions contemplated hereby, and the term “tax structure”
includes any fact that may be relevant to understanding the purported or claimed federal income tax
treatment of the transactions contemplated hereby.

     Section 13. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Initial Purchasers shall be directed to the Representative at
4 World Financial Center, New York, New York 10080, attention of Gopal Garuda, Director, and
notices to the Company shall be directed to it at 14200 S.W. Karl Braunn Drive, Beaverton, Oregon
97077, attention Secretary.

     Section 14. No Advisory or Fiduciary Relationship. The Company acknowledges and
agrees that (a) the purchase and sale of the Securities pursuant to this Agreement, including the
determination of the offering price of the Securities and any related discounts and commissions, is
an arm’s-length commercial transaction between the Company, on the one hand, and the Initial
Purchasers on the other hand, (b) in connection with the offering contemplated hereby and the
process leading to such transaction, each of the Initial Purchasers is and has been acting solely
as a principal and is not the agent or fiduciary of the Company, or its stockholders, creditors,

26

 

employees or any other party, (c) the Initial Purchasers have not assumed, or will not assume, an
advisory or fiduciary responsibility in favor of the Company with respect to the offering
contemplated hereby or the process leading thereto (irrespective of whether the Initial Purchasers
have advised or are currently advising the Company on other matters) and the Initial Purchasers
have no obligation to the Company with respect to the offering contemplated hereby except the
obligations expressly set forth in this Agreement, (d) the Initial Purchasers and their respective
affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of each of the Company, and (e) the Initial Purchasers have not provided any legal,
accounting, regulatory or tax advice with respect to the offering contemplated hereby and the
Company has consulted its own legal, accounting, regulatory and tax advisors to the extent it
deemed appropriate. The Company hereby waives any claims that the Company may have against the
Initial Purchasers with respect to any breach of fiduciary duty in connection with this Offering.

     Section 15. Integration. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company and the Initial Purchasers, or any of
them with respect to the subject matter hereof.

     Section 16. Parties. This Agreement shall inure to the benefit of and be binding upon
the Initial Purchasers and the Company and their respective successors. Nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any person, firm or
corporation, other than the Initial Purchasers and the Company and their respective successors and
the controlling persons and officers and directors referred to in Sections 7 and 8 and their heirs
and legal representatives, any legal or equitable right, remedy or claim under or in respect of
this Agreement or any provision herein contained. This Agreement and all conditions and provisions
hereof are intended to be for the sole and exclusive benefit of the Initial Purchasers and the
Company and their respective successors, and said controlling persons and officers and directors
and their heirs and legal representatives, and for the benefit of no other person, firm or
corporation. No purchaser of Securities from the Initial Purchasers shall be deemed to be a
successor by reason merely of such purchase.

     Section 17. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     Section 18. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     Section 19. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.

     Section 20. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.

27

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement between the Initial Purchasers and the Company in accordance with
its terms.

	 	 	 	 	 
	 	Very truly yours,

TEKTRONIX, INC.

 	 
	 	By:  	/s/ JAMES F. DALTON
 	 
	 	 	Name:  	James F. Dalton 	 
	 	 	Title:  	Senior Vice President, General

Counsel, and Secretary 	 
	 	

 	 
	 	SIGNATURE PAGE TO PURCHASE

AGREEMENT

 	 

28

 

	 	 	 	 	 

CONFIRMED AND ACCEPTED,

  as of the date first above written:

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH

          INCORPORATED

	 	 	 	 	 
	By:

	 	/s/ PATRICK R. FANNON	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

For itself and as Representative

of the several Initial Purchasers

named on Schedule A hereto

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Principal Amount of
	Initial Purchasers	 	Securities
	Merrill Lynch, Pierce, Fenner & Smith
Incorporated
	 	 	195,000,000	 
	Goldman, Sachs & Co.
	 	 	75,000,000	 
	Citigroup Global Markets Inc.
	 	 	30,000,000	 
	Total
	 	 	300,000,000	 
	 
	 	 	 	 

 

 

Schedule B

Tektronix, Inc.

(TEK/NYSE)

Offering Size: $300,000,000

Overallotment Option: $45,000,000

144A Senior Convertible Notes Due 2012 Terms:

Public Offering Price: $1,000.00 per note (100%)

Maturity: July 15, 2012

Interest Rate: 1.625% payable semiannually in arrears in cash

Last Sale (6/25/07): $34.57

Conversion Price: Approximately $39.76, subject to adjustment

Conversion Premium: 15.0%

Conversion Rate: 25.1538, subject to adjustment

Conversion Rate Cap: 28.9268, subject to adjustment

Conversion Trigger Price: $51.68

Interest Payment Dates: January 15 and July 15, beginning January 15, 2008

Redemption: None

Put Dates: None

Make Whole Premium upon a Fundamental Change: If a fundamental change occurs and a holder elects to
convert in connection with such transaction, the conversion rate will be increased by a number of
shares. The number of additional shares will be determined by reference to the following table and
is based on the date on which such fundamental change becomes effective and the price paid per
share of common stock on the effective date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Effective Date
	Stock Price	 	June 29, 2007	 	 	 	July 15, 2008	 	July 15, 2009	 	July 15, 2010	 	July 15, 2011	 	July 15, 2012
	$	34.57	 	 	 	3.7731	 	 	 	 	 	3.7731	 	 	 	3.7731	 	 	 	3.7731	 	 	 	3.7731	 	 	 	3.7731	 
	$	36.00	 	 	 	3.3391	 	 	 
	 	 	3.3632	 	 	 	3.3446	 	 	 	3.2550	 	 	 	3.0158	 	 	 	2.6240	 
	$	40.00	 	 	 	2.4148	 	 	 
	 	 	2.3557	 	 	 	2.2409	 	 	 	2.0295	 	 	 	1.6132	 	 	 	0.0000	 
	$	50.00	 	 	 	1.1909	 	 	 
	 	 	1.0731	 	 	 	0.9097	 	 	 	0.6764	 	 	 	0.3402	 	 	 	0.0000	 
	$	60.00	 	 	 	0.6730	 	 	 
	 	 	0.5700	 	 	 	0.4432	 	 	 	0.2878	 	 	 	0.1199	 	 	 	0.0000	 
	$	70.00	 	 	 	0.4201	 	 	 
	 	 	0.3442	 	 	 	0.2568	 	 	 	0.1649	 	 	 	0.0765	 	 	 	0.0000	 
	$	80.00	 	 	 	0.2886	 	 	 
	 	 	0.2351	 	 	 	0.1759	 	 	 	0.1144	 	 	 	0.0571	 	 	 	0.0000	 
	$	100.00	 	 	 	0.1572	 	 	 
	 	 	0.1270	 	 	 	0.0960	 	 	 	0.0640	 	 	 	0.0331	 	 	 	0.0000	 
	$	120.00	 	 	 	0.0894	 	 	 
	 	 	0.0717	 	 	 	0.0540	 	 	 	0.0355	 	 	 	0.0178	 	 	 	0.0000	 

If the stock price on the effective date exceeds $120.00 per share, subject to adjustment, no
adjustment to the applicable conversion rate will be made.

If the stock price on the effective date is less than $34.57 per share, subject to adjustment, no
adjustment to the applicable conversion rate will be made.

Net Payment for Purchased Note Hedges Minus Sold Warrants: $26.6 million
Shares Underlying Convertible Note Hedge and Warrant: Approximately 7.5 million

 

 

Exercise Price of Sold Warrant: 42.5% higher than closing stock price

Use of Proceeds and Capitalization: At May 26, 2007, on an as adjusted basis to reflect the sale
of the notes (assuming the overallotment option is not exercised) and the issuer’s use of (1)
$110.0 million of the net proceeds to repurchase approximately 3.2 million shares of common stock
at the price of $34.57 per share and (2) $26.6 million of the net proceeds to fund the net cost of
the convertible note hedge and warrant transactions, the issuer would have had cash, cash
equivalents and short-term and long-term marketable investments of $513.3 million, total debt of
$300 million, and total shareholders’ equity of $875.6 million. The issuer intends to use any
remaining net proceeds to purchase additional common shares and for other general corporate
purposes.

Trade Date: 6/25/07

Settlement Date (T+4): 6/29/07

144A CUSIP: 879131AG5

Joint-Bookrunners: Merrill Lynch, Goldman, Sachs & Co.

Co-Manager: Citi

****

This communication is intended for the sole use of the person to whom it is provided by us. This
Offering is being conducted in the U.S. pursuant to Rule 144A of the Securities Act 1933, as
amended, and may therefore only be offered to QIBs.
A written offering circular may be obtained from your Merrill Lynch sales representative, from
Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, FL 05, New York, NY
10080, or from your Goldman, Sachs sales representative, or from Goldman, Sachs & Co., 85 Broad
Street, New York, NY 10004 Attention: Prospectus Department (212-902-1171).

This announcement and any offer if made subsequently is directed only at persons in member states
of the European Economic Area who are “qualified investors” within the meaning of Article 2(1)(e)
of the Prospectus Directive (Directive 2003/71/EC) (“Qualified Investors”). Any person in the EEA
who acquires the securities in any offer (an “investor”) or to whom any offer of the securities is
made will be deemed to have represented and agreed that it is a Qualified Investor. Any investor
will also be deemed to have represented and agreed that any securities acquired by it in the offer
have not been acquired on behalf of persons in the EEA other than Qualified Investors or persons in
the UK and other member states (where equivalent legislation exists) for whom the investor has
authority to make decisions on a wholly discretionary basis, nor have the securities been acquired
with a view to their offer or resale in the EEA to persons where this would result in a requirement
for publication by the company, Merrill Lynch International (“MLI”) or any other manager of a
prospectus pursuant to Article 3 of the

2

 

Prospectus Directive. The company, MLI and their affiliates, and others will rely upon the truth
and accuracy of the foregoing representations and agreements.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities in any jurisdiction to any person to whom it is unlawful to make such offer or
solicitation in such jurisdiction.

Any disclaimers or other notices that may appear below are not applicable to this communication and
should be disregarded. Such disclaimers or other notices were automatically generated as a result
of this communication being sent via Bloomberg or another email system.

3

 

Exhibit A-1

FORM OF OPINION OF STOEL RIVES LLP

TO BE DELIVERED PURSUANT TO

SECTION 5(a)

[Provided as Separate Document]

A - 1 

 

Exhibit B

FORM OF LOCK-UP AGREEMENT

     The undersigned, an executive officer or director of Tektronix, Inc., an Oregon corporation
(the “Company”), understands that the Merrill Lynch & Co. and Merrill Lynch, Pierce, Fenner & Smith
Incorporated (“Merrill Lynch”) propose to enter into a Purchase Agreement (the “Purchase
Agreement”) with the Company, providing for the offering (the “Offering”), pursuant to Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), of Convertible Senior Notes
due 2012 of the Company. Capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Purchase Agreement.

     In recognition of the benefit that the Offering will confer upon the undersigned as an officer
or director of the Company, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agrees that, during a period
of 90 days from the date of the Final Offering Memorandum (the “Lock-Up Period”), the undersigned
will not, for the benefit of Merrill Lynch, without the prior written consent of Merrill Lynch,
directly or indirectly, (i) offer, pledge, sell, or contract to sell any shares of the Company’s
Common Stock or any securities convertible into or exchangeable or exercisable for such Common
Stock, whether now owned or hereafter acquired by the undersigned or with respect to which the
undersigned has or hereafter acquires the power of disposition (collectively, “Lock-Up
Securities”); (ii) sell any option or contract to purchase any Lock-Up Securities; (iii) purchase
any option or contract to sell any Lock-Up Securities; (iv) grant any option, right or warrant for
the sale of any Lock-Up Securities; (v) lend or otherwise dispose of any Lock-Up Securities; (vi)
transfer any Lock-Up Securities or securities convertible into or exchangeable or exercisable for
or repayable with Lock-Up Securities; (vii) file or request or demand that the Company file a
registration statement under the Securities Act relating to any sales of any Lock-Up Securities; or
(viii) enter into any swap or other agreement or any transaction that transfers, in whole or in
part, directly or indirectly, the economic consequence of ownership of Lock-Up Securities whether
any such swap or transaction is to be settled by delivery of our shares of common stock or other
securities, in cash or otherwise

     The foregoing restrictions shall not apply to: (1) the acquisition of Common Stock by
directors and employees of the Company upon the conversion of stock units and the exercise of stock
options; (2) sales of shares of Common Stock pursuant to any 10b5-1 plans in effect on the date of
the Final Offering Memorandum, provided that such a 10b5-1 plan may be amended during the 90-day
period specified in this letter as long as the number of shares that may be sold pursuant to the
plan during the Lock-Up Period is not increased; (3) sales of up to (A) 15,000 additional shares of
Common Stock by the undersigned or by a permissible transferee of the undersigned, if the
undersigned is an executive officer, or (B) 5,000 additional shares of Common Stock by the
undersigned or by a permissible transferee of the undersigned, if the undersigned is a director;
(4) the transfer of Lock-Up Securities in connection with the exercise of stock options outstanding
on the date hereof; and (5) any other transfers in connection with which (A) Merrill Lynch receives
a signed lock-up agreement for the balance of the lock up period from each donee, trustee,
distributee, or transferee, as the case may be, (B) any such transfer shall not involve a
disposition for value, (C) such transfers are not required during the

B - 1 

 

Lock-Up Period to be reported in any public report or filing with the SEC, or otherwise, and
(D) the undersigned does not otherwise voluntarily effect any public filing or report during the
Lock-Up Period regarding such transfers, provided that any such transfer pursuant to clause (5) is:

(i) a bona fide gift or gifts; or

(ii) to any trust or limited liability company, the beneficiaries or members of which are
exclusively the undersigned or a member of the immediate family of the undersigned, including
grandchildren (to the extent consistent with the Securities Act and state securities laws).

     The undersigned also agrees and consents to the entry of stop transfer instructions with
the Company’s transfer agent and registrar against the transfer of the Lock-Up Securities except in
compliance with this letter agreement.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 

B - 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]