Document:

exv4w1

Exhibit 4.1

 

 

ILLUMINA, INC.

ISSUER

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

TRUSTEE

 

INDENTURE

Dated as of March 18, 2011

 

0.25% CONVERTIBLE SENIOR NOTES DUE 2016

 

 

 

 

ILLUMINA, INC.

Certain Sections of this Indenture relating to Sections 310 through 318

of the Trust Indenture Act of 1939:

	 	 	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	§ 310(a)(1)

	 	 	6.09	 
	(a)(2)

	 	 	6.09	 
	(a)(3)

	 	Not Applicable

	(a)(4)

	 	Not Applicable

	(b)

	 	 	6.08	 
	 

	 	 	6.10	 
	§ 311(a)

	 	 	6.13	 
	(b)

	 	 	6.13	 
	§ 312(a)

	 	 	9.01	 
	 

	 	 	9.02	(a)
	(b)

	 	 	9.02	(b)
	(c)

	 	 	9.02	(c)
	§ 313(a)

	 	 	9.03	(a)
	(a)(4)

	 	 	1.01	 
	 

	 	 	10.04	 
	(b)

	 	 	9.03	(a)
	(c)

	 	 	9.03	(a)
	(d)

	 	 	9.03	(a)
	§ 314(a)

	 	 	9.04	 
	(b)

	 	Not Applicable

	(c)(1)

	 	 	1.05	 
	(c)(2)

	 	 	1.05	 
	(c)(3)

	 	Not Applicable

	(d)

	 	Not Applicable

	(e)

	 	 	1.05	 
	§ 315(a)

	 	 	6.01	 
	(b)

	 	 	6.02	 
	(c)

	 	 	6.01	 
	(d)

	 	 	6.01	 
	(e)

	 	 	5.15	 
	§ 316(a)

	 	 	1.01	 
	(a)(1)(A)

	 	 	5.02	 
	 

	 	 	5.06	 
	(a)(1)(B)

	 	 	5.04	 
	(a)(2)

	 	Not Applicable

	(b)

	 	 	5.03	 
	(c)

	 	 	1.02	 
	§ 317(a)(1)

	 	 	5.07	 
	(a)(2)

	 	 	5.08	 
	(b)

	 	 	10.05	 
	§ 318(a)

	 	 	1.08	 

 

 

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	ARTICLE 1 Definitions and Other Provisions of General Application
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 1.01

	 	Definitions
	 	 	1	 
	SECTION 1.02

	 	Acts of Holders of Notes
	 	 	15	 
	SECTION 1.03

	 	Notices, Etc. To The Trustee And Company
	 	 	16	 
	SECTION 1.04

	 	Effect of Headings and Table of Contents
	 	 	17	 
	SECTION 1.05

	 	Compliance Certificates and Opinions
	 	 	17	 
	SECTION 1.06

	 	Form of Documents Delivered to Trustee
	 	 	17	 
	SECTION 1.07

	 	Notice to Holders; Waiver
	 	 	18	 
	SECTION 1.08

	 	Conflict With Trust Indenture Act
	 	 	19	 
	SECTION 1.09

	 	Successors and Assigns
	 	 	19	 
	SECTION 1.10

	 	Separability Clause
	 	 	19	 
	SECTION 1.11

	 	Benefits of Indenture
	 	 	19	 
	SECTION 1.12

	 	Governing Law
	 	 	19	 
	SECTION 1.13

	 	Legal Holidays
	 	 	19	 
	SECTION 1.14

	 	Force Majeure
	 	 	20	 
	SECTION 1.15

	 	Waiver of Jury Trial
	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE 2 Note Forms
	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 2.01

	 	Form Generally
	 	 	20	 
	SECTION 2.02

	 	Form of Note
	 	 	21	 
	SECTION 2.03

	 	Form of Notice of Conversion
	 	 	31	 
	SECTION 2.04

	 	Form of Assignment
	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE 3 The Notes
	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 3.01

	 	Title And Terms
	 	 	33	 
	SECTION 3.02

	 	Denominations
	 	 	33	 
	SECTION 3.03

	 	Execution, Authentication, Delivery and Dating
	 	 	33	 
	SECTION 3.04

	 	Global Notes; Non-Global Notes; Book-entry Provisions
	 	 	34	 
	SECTION 3.05

	 	Persons Deemed Owners
	 	 	36	 
	SECTION 3.06

	 	Mutilated, Destroyed, Lost and Stolen Notes
	 	 	36	 
	SECTION 3.07

	 	Payment of Interest; Interest Rights Preserved
	 	 	37	 
	SECTION 3.08

	 	Cancellation
	 	 	39	 
	SECTION 3.09

	 	Computation of Interest
	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE 4 Discharge
	 	 	39	 
	 
	 	 	 	 	 	 
	SECTION 4.01

	 	Discharge of Liability on Notes
	 	 	39	 
	SECTION 4.02

	 	Reinstatement
	 	 	40	 
	SECTION 4.03

	 	Officers’ Certificate; Opinion of Counsel
	 	 	41	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	ARTICLE 5 Remedies
	 	 	41	 
	 
	 	 	 	 	 	 
	SECTION 5.01

	 	Events of Default
	 	 	41	 
	SECTION 5.02

	 	Acceleration of Maturity; Rescission and Annulment
	 	 	42	 
	SECTION 5.03

	 	Unconditional Right of Holders to Receive Principal and Interest and
to Convert
	 	 	44	 
	SECTION 5.04

	 	Waiver of Past Defaults
	 	 	45	 
	SECTION 5.05

	 	Waiver of Stay, Usury or Extension Laws
	 	 	45	 
	SECTION 5.06

	 	Control by Holders
	 	 	45	 
	SECTION 5.07

	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	46	 
	SECTION 5.08

	 	Trustee May File Proofs of Claim
	 	 	46	 
	SECTION 5.09

	 	Trustee May Enforce Claims Without Possession of Notes
	 	 	47	 
	SECTION 5.10

	 	Application of Money Collected
	 	 	47	 
	SECTION 5.11

	 	Limitation on Suits
	 	 	47	 
	SECTION 5.12

	 	Restoration of Rights and Remedies
	 	 	48	 
	SECTION 5.13

	 	Rights and Remedies Cumulative
	 	 	48	 
	SECTION 5.14

	 	Delay or Omission Not Waiver
	 	 	49	 
	SECTION 5.15

	 	Undertaking for Costs
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE 6 The Trustee
	 	 	49	 
	 
	 	 	 	 	 	 
	SECTION 6.01

	 	Certain Duties and Responsibilities
	 	 	49	 
	SECTION 6.02

	 	Notice of Defaults
	 	 	50	 
	SECTION 6.03

	 	Certain Rights of Trustee
	 	 	51	 
	SECTION 6.04

	 	Not Responsible for Recitals or Issuance of Notes
	 	 	52	 
	SECTION 6.05

	 	May Hold Notes
	 	 	53	 
	SECTION 6.06

	 	Money Held In Trust
	 	 	53	 
	SECTION 6.07

	 	Compensation and Reimbursement
	 	 	53	 
	SECTION 6.08

	 	Conflicting Interests
	 	 	54	 
	SECTION 6.09

	 	Corporate Trustee Required; Eligibility
	 	 	54	 
	SECTION 6.10

	 	Resignation and Removal; Appointment Of Successor
	 	 	54	 
	SECTION 6.11

	 	Acceptance of Appointment by Successor
	 	 	56	 
	SECTION 6.12

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	56	 
	SECTION 6.13

	 	Preferential Collection of Claims Against Company
	 	 	57	 
	SECTION 6.14

	 	Appointment of Authenticating Agent
	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE 7 Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	59	 
	 
	 	 	 	 	 	 
	SECTION 7.01

	 	Company May Consolidate, Etc., Only on Certain Terms
	 	 	59	 
	SECTION 7.02

	 	Successor Substituted
	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE 8 Supplemental Indentures
	 	 	60	 
	 
	 	 	 	 	 	 
	SECTION 8.01

	 	Supplemental Indentures Without Consent of Holders of Notes
	 	 	60	 
	SECTION 8.02

	 	Supplemental Indentures With Consent of Holders of Notes
	 	 	61	 
	SECTION 8.03

	 	Notice of Supplemental Indentures
	 	 	62	 
	SECTION 8.04

	 	Effect of Supplemental Indentures
	 	 	62	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	SECTION 8.05

	 	Conformity with Trust Indenture Act
	 	 	63	 
	 
	 	 	 	 	 	 
	ARTICLE 9 Holders Lists and by Trustee and Company
	 	 	63	 
	 
	 	 	 	 	 	 
	SECTION 9.01

	 	Company to Furnish Trustee Names and Addresses of Holders
	 	 	63	 
	SECTION 9.02

	 	Preservation of Information
	 	 	63	 
	SECTION 9.03

	 	Communication to Holders
	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE 10 Covenants
	 	 	64	 
	 
	 	 	 	 	 	 
	SECTION 10.01

	 	Payment of Principal and Interest
	 	 	64	 
	SECTION 10.02

	 	Maintenance of Offices or Agencies
	 	 	64	 
	SECTION 10.03

	 	Existence
	 	 	65	 
	SECTION 10.04

	 	Statement by Officers as to Default
	 	 	65	 
	SECTION 10.05

	 	Money for Note Payments to Be Held in Trust
	 	 	65	 
	SECTION 10.06

	 	Reports by Company
	 	 	67	 
	SECTION 10.07

	 	Delivery of Certain Information
	 	 	67	 
	SECTION 10.08

	 	Additional Interest Notice
	 	 	67	 
	SECTION 10.09

	 	Additional Interest Payable Upon Failure to Report or Delegend
	 	 	68	 
	 
	 	 	 	 	 	 
	ARTICLE 11 Repurchase of Notes
	 	 	69	 
	 
	 	 	 	 	 	 
	SECTION 11.01

	 	Right to Require Repurchase Upon a Designated Event
	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE 12 Conversion of Notes
	 	 	73	 
	 
	 	 	 	 	 	 
	SECTION 12.01

	 	Conversion Privilege and Conversion Rate
	 	 	73	 
	SECTION 12.02

	 	Exercise of Conversion Privilege
	 	 	77	 
	SECTION 12.03

	 	Adjustment of Conversion Rate
	 	 	83	 
	SECTION 12.04

	 	Notice of Adjustments of Conversion Rate
	 	 	95	 
	SECTION 12.05

	 	Company to Reserve Common Stock
	 	 	95	 
	SECTION 12.06

	 	Taxes on Conversions
	 	 	95	 
	SECTION 12.07

	 	Certain Covenants
	 	 	96	 
	SECTION 12.08

	 	Cancellation of Converted Notes
	 	 	96	 
	SECTION 12.09

	 	Provision in Case of Effect of Reclassification, Consolidation, Merger or Sale
	 	 	96	 
	SECTION 12.10

	 	Exchange in Lieu of Conversion
	 	 	98	 
	SECTION 12.11

	 	Responsibility of Trustee for Conversion Provisions
	 	 	99	 

iii

 

     INDENTURE, dated as of March 18, 2011 (the “Indenture”), between ILLUMINA, INC., a
corporation duly organized and existing under the laws of the State of Delaware, having its
principal office at 9885 Towne Centre Drive, San Diego, California 92121-1975 (herein called
the “Company”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking
association, as Trustee hereunder (herein called the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the creation of an issue of its 0.25% Convertible Senior
Notes due 2016 (herein called the “Notes”) of substantially the tenor and amount hereinafter
set forth, and to provide therefor the Company has duly authorized the execution and delivery
of this Indenture.

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

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE 1

Definitions and Other Provisions of General Application

     SECTION 1.01 Definitions.

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

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

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

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

1

 

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

     (d) all other terms used in this Indenture, which are defined in the Trust Indenture Act
or which are by reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires), shall have the meanings assigned to
such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the
execution of this Indenture. The words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

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

     “Additional Interest” means any additional interest payable pursuant to Section 10.09 or
any Extension Fee payable pursuant to Section 5.02.

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

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

     “Adjustment Determination Date” has the meaning specified in Section 12.03.

     “Adjustment Event” has the meaning specified in Section 12.03.

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

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

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

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

2

 

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

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

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

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in the applicable Place of Payment (i) are not required to be open
or (ii) are authorized or obligated by law or executive order to close.

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

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

     “Cash Settlement Averaging Period” with respect to any Note surrendered for
conversion means:

	 	i.	 	if the relevant Conversion Date occurs prior to the 27th Scheduled
Trading Day prior to the Maturity Date, the 20 consecutive Trading-Day period
beginning on, and including, the third Trading Day immediately following the
related Conversion Date; and
	 
	 	ii.	 	if the relevant Conversion Date occurs during the period beginning
on, and including, the 27th Scheduled Trading Day prior to the Maturity Date, and
ending at 5:00 p.m., New York City time, on the second Business Day immediately
prior to the Maturity Date, the 20 consecutive Trading Days beginning on, and
including, the 27th scheduled Trading Day prior to the Maturity Date.

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

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

     “Combination Settlement” has the meaning specified in Section 12.02(a).

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

3

 

at any time after the execution of this instrument such Commission is not existing and performing
the duties now assigned to it under the Trust Indenture Act, then the body performing such duties
at such time.

     “Common Stock” means the Common Stock, par value $0.01 per share, of the Company authorized
at the date of this instrument as originally executed or as such stock may be constituted from
time to time. Subject to the provisions of Section 12.09, shares issuable upon conversion of
Notes shall include only shares of Common Stock or shares of any class or classes of common stock
resulting from any reclassification or reclassifications thereof; provided, however, that if at
any time there shall be more than one such resulting class, the shares so issuable on conversion
of Notes shall include shares of all such classes, and the shares of each such class then so
issuable shall be substantially in the proportion which the total number of shares of such class
resulting from all such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

     “common stock” includes any stock of any class of capital stock which has no preference in
respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the issuer thereof and which is not subject to
redemption by the issuer thereof.

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

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

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

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

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

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

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

4

 

     “Corporate Trust Office” means the designated office of the Trustee at which at any
particular time the trust created by this Indenture shall be principally administered, (which at
the date of this Indenture is located at 700 South Flower Street, Suite 500, Los Angeles, CA
90017, Attention: Corporate Trust Administration, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Company, or the principal corporate
trust office of any successor Trustee (or such other address as such successor Trustee may
designate from time to time by notice to the Holders and the Company).

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

     “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the
applicable Cash Settlement Averaging Period, one-twentieth (1/20th) of the product of (a) the
applicable Conversion Rate and (b) the Daily VWAP of the Common Stock on such Trading Day. Any
such determination by the Company shall be conclusive absent manifest error.

     “Daily Measurement Value” means the Specified Dollar Amount, divided by 20.

     “Daily Settlement Amount” means, for each of the 20 Trading Days during the Cash
Settlement Averaging Period, the following amount as determined by the Company:

     (i) cash equal to the lesser of (x) the Daily Measurement Value and (y) the Daily
Conversion Value; and

     (ii) if the Daily Conversion Value exceeds the Daily Measurement Value,
the Daily Share Amount.

     “Daily Share Amount” means a number of shares of Common Stock equal to (x) the
difference between the Daily Conversion Value and the Daily Measurement Value, divided by (y)
the Daily VWAP for such Trading Day.

     “Daily VWAP” means, for each of the 20 consecutive Trading Days during the applicable
Cash Settlement Averaging Period, the per share volume-weighted average price as displayed under
the heading “Bloomberg VWAP” on Bloomberg page “ILMN.Q <equity> AQR” (or its equivalent
successor if such page is not available) in respect of the period from scheduled open of trading
until the scheduled close of trading of the primary trading session on such Trading Day (or if
such volume-weighted average price is unavailable, the market value of one share of the Common
Stock on such Trading Day determined, using a volume-weighted average method, by a nationally
recognized independent investment banking firm retained for this purpose by the Company). The
“Daily VWAP”

5

 

shall be determined without regard to after-hours trading or any other trading outside of
the regular trading session trading hours.

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

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

     “Depositary” means, with respect to Notes issuable in whole or in part in the form of one
or more Global Notes, a clearing agency registered under the Exchange Act that is designated to
act as Depositary for such Notes as contemplated by Section 3.04.

     “Designated Event” means the occurrence of either a Fundamental Change or a
Termination of Trading.

     “Designated Event Expiration Time” has the meaning specified in Section 11.01.

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

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

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

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

     “Designated Institution” has the meaning specified in Section 12.10.

     “Distributed Property” has the meaning specified in Section 12.03.

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

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

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

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

6

 

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

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

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

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

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

     (1) any Person has filed a Schedule 13D or Schedule TO (or any successor schedule,
form or report) pursuant to the Exchange Act, disclosing that such person has become the
owner, directly or indirectly, through a purchase, merger or other acquisition transaction
or series of transactions, of shares of the Company’s Capital Stock entitling the Person
to exercise 50% or more of the total voting power of all shares of the Company’s Capital
Stock entitled to vote generally in elections of directors, other than an acquisition by
the Company, any of the Company’s Subsidiaries or any of the Company’s employee benefit
plans; or

     (2) the Company (i) merges or consolidates with or into any other Person (other than
a Subsidiary), another Person merges with or into the Company, or the Company conveys,
sells, transfers or leases all or substantially all of the Company’s assets to another
Person or (ii) engages in any recapitalization, reclassification or other transaction in
which all or substantially all of the Common Stock is exchanged for or converted into
cash, securities or other property (provided that this clause (2) shall be a Fundamental
Change for purposes of determining adjustment to shares delivered upon conversion pursuant
to Article 12 only, but not for purposes of triggering a repurchase right pursuant to
Article 11), in each case other than a merger or consolidation:

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

     (b) pursuant to which the consideration received by holders of the Company’s
Common Stock immediately prior to the

7

 

transaction entitles such holders to exercise, directly or indirectly, 50% or
more of the voting power of all shares of Capital Stock entitled to vote
generally in the election of directors of the continuing or surviving corporation
immediately after such transaction; or

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

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

(for purposes of these clauses (1), (2), or (3), whether a Person is a “beneficial owner” shall be
determined in accordance with Rule 13d-3 under the Exchange Act, and “Person” shall include any
syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange
Act)

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

     “Holder” means the Person in whose name the Note is registered in the register maintained
by the Registrar.

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

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

     “Initial Notes” means the first $800,000,000 aggregate principal amount of the Notes issued
under this Indenture on the date hereof. The Initial Notes and the Additional Notes shall be
treated as a single class for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any Additional Notes.

     “Initial Purchasers” means Morgan Stanley & Co. Incorporated, Goldman, Sachs & Co. and
Merrill Lynch, Pierce, Fenner & Smith Incorporated.

8

 

     “Interest Payment Date” means March 15 and September 15 of each year beginning September
15, 2011.

     “Issue Date” means March 18, 2011.

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

     “Market Disruption Event” means (i) for purposes of determining amounts due upon conversion
pursuant to Section 12.02, (x) a failure by the primary United States national or regional
securities exchange or market on which the Common Stock is listed or admitted to trading to open
for trading during its regular trading session or (y) the occurrence or existence prior to 1:00
p.m., New York City time, on any Scheduled Trading Day for the Common Stock for more than a one
half-hour period in the aggregate during regular trading hours of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted by the relevant
stock exchange or otherwise) in the Common Stock or in any options, contracts or futures contracts
relating to the Common Stock; and (ii) for all other purposes, the occurrence or existence on any
Scheduled Trading Day for the Common Stock of any suspension or limitation imposed on trading (by
reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the
Common Stock or in any options contracts or futures contracts relating to the Common Stock, and
such suspension or limitation occurs or exists at any time within the 30 minutes prior to the
closing time of the relevant exchange on such day.

9

 

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

     “Maturity Date” means, with respect to the Notes, March 15, 2016.

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

     “Merger Event” has the meaning specified in Section 12.09.

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

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

     “Offering Memorandum” means the final offering memorandum dated March 15, 2011 used in
connection with the offering of the Notes.

     “Officers’ Certificate” means a certificate signed by (i) the Chairman or Vice Chairman of
the Board of Directors or the Chief Executive Officer, the President or any Vice President and by
(ii) the Chief Financial Officer, any other Vice President or the Controller, Treasurer,
Assistant Treasurer, Corporate Secretary or Assistant Corporate Secretary and delivered to the
Trustee. One of the officers signing an Officers’ Certificate given pursuant to Section 10.04
shall be the principal executive, financial or accounting officer of the Company.

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

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

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

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

     (ii) Notes for the payment of which money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in
trust or set aside and segregated in trust by the Company (if the Company shall act as
its own Paying Agent) for the Holders of such Notes in accordance with the terms of such
Indenture;

10

 

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

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

     (v) Notes repurchased pursuant to Article 11;

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

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

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

     “Physical Settlement” has the meaning specified in Section 12.02(a).

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

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

     “Predecessor Note” of any particular Note means every previous Note evidencing all
or a portion of the same debt as that evidenced by such particular

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Note; and, for the purposes of this definition, any Note authenticated and delivered under
Section 3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Note shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Note.

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

     “Purchase Agreement” means the Purchase Agreement, dated as of March 14, 2011 between
the Company and the Initial Purchasers, as such agreement may be amended from time to time.

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

     “Record Date Period” means the period from the close of business of any Regular Record Date
next preceding any Interest Payment Date to 9:00 a.m., New York City time, on such Interest
Payment Date.

     “Reference Property” has the meaning specified in Section 12.09.

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

     “Regular Record Date” for interest payable in respect of any Note on any Interest Payment Date
means the February 28 (or February 29 in the case of a leap year) or August 31 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.

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

     “Restricted Legend” means the legend specified in Section 2.02.

     “Restricted Security” means any Note or share of Common Stock issuable upon
conversion thereof except any such Note or share of Common Stock that (i) has been sold pursuant
to an effective registration statement under the Securities Act, (ii) has been transferred in
compliance with Rule 144 under the Securities Act (or any successor provision thereto) or is
transferable pursuant to

12

 

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

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

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

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

     “Settlement Amount” has the meaning specified in Section 12.02.

     “Settlement Method” means, with respect to any conversion of Notes, Physical Settlement,
Cash Settlement or Combination Settlement, as elected (or deemed to have been elected) by the
Company.

     “Settlement Notice” has the meaning specified in Section 12.02.

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

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

     “Specified Dollar Amount” means, in respect of any Combination Settlement, the amount of
cash per $1,000 principal amount of converted Note specified in the Settlement Notice related
to such converted Note.

     “Stock Price” means the price paid per share of Common Stock in connection with a Fundamental
Change pursuant to which Additional Shares shall be added to the Conversion Rate as set forth in
Section 12.01(e), which shall be equal to (i) if holders of Common Stock receive only cash in such
Fundamental Change, the cash amount paid per share of Common Stock and (ii) in all other cases, the
average of the Last Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on the Trading Day preceding the Effective Date of the Fundamental Change.

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     “Spin-Off” has the meaning specified in Section 12.03.

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock or other similar interests in the corporation which ordinarily has or have voting power
for the election of directors, or persons performing similar functions, whether at all times or
only so long as no senior class of stock or other interests has or have such voting power by reason
of any contingency.

     “Termination of Trading” means the occurrence whereby the Common Stock, or any other Capital
Stock or American Depositary Receipts in respect of shares of Capital Stock into which the Notes
are convertible pursuant to the terms of this Indenture, are not listed for trading on a U.S.
national securities exchange or quoted on an established automated over-the-counter trading
market in the United States for a period of 30 consecutive Scheduled Trading Days.

     “Trading Day” means a day during which (i) trading in the Common Stock generally occurs and
(ii) there is no Market Disruption Event; and provided that for purposes of determining amounts
due upon conversion pursuant to Section 12.02 only, “Trading Day” means a day on which (x) there
is no Market Disruption Event (as defined in clause (i) of the definition thereof) and (y)
trading in the Common Stock generally occurs on the Nasdaq Global Select Market or, if the Common
Stock is not then listed on Nasdaq Global Select Market, on the principal other United States
national or regional securities exchange on which the Common Stock is then listed or, if the
Common Stock is not then listed on a United States national or regional securities exchange, on
the principal other market on which the Common Stock is then traded (and if the Common Stock (or
other security for which a Daily VWAP must be determined) is not so listed or traded, “Trading
Day” means a Business Day).

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

14

 

Rate in effect on such date of determination. Any such determination by the Company shall
be conclusive absent manifest error.

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

     “Trigger Event” has the meaning specified in Section 12.03.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed; provided, however, that in the event the Trust Indenture Act
of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any
such amendment, the Trust Indenture Act of 1939 as so amended.

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

     SECTION 1.02 Acts of Holders of Notes.

     (a) Subject to Article 5 of this Indenture, upon actual receipt by the Trustee from any Holder
of (i) any notice of Default or breach referred to in Section 5.01(e), if such Default or breach
has occurred and is continuing and the Trustee shall not have given such a notice to the
Company,(ii) any declaration of acceleration referred to in Section 5.02, if an Event of Default
has occurred and is continuing and the Trustee shall not have given such a declaration to the
Company, or (iii) any direction referred to in Section 5.04 or Section 5.06, if the Trustee shall
not have taken the action specified in such direction, then, with respect to clauses (ii) and
(iii), a record date shall automatically and without any action by the Company or the Trustee be
set for determining the Holders entitled to join in such declaration or direction, which record
date shall be the close of business on the 10th calendar day (or, if such day is not a Business
Day, the first Business Day thereafter) following the calendar day on which the Trustee receives
such declaration or direction, and, with respect to clause (i), the Trustee may set any calendar
day as a record date for the purpose of determining the Holders entitled to join in such notice of
Default. Promptly after such receipt by the Trustee of any such declaration or direction referred
to in clause (ii) or (iii), and promptly after setting any record date with respect to clause (i),
and as soon as practicable thereafter, the Trustee shall notify the Company and the Holders of any
such record date so fixed. The Holders as of 5:00 p.m. New York City time, on such record date (or
their duly appointed agents or proxies), and only such Persons, shall be entitled to join in such
notice, declaration or direction, whether or not such Holders remain Holders after such time;
provided that, unless such notice, declaration or direction shall have become effective by virtue
of Holders of the requisite principal amount of Notes as of 5:00 p.m. New York City time, on

15

 

such record date (or their duly appointed agents or proxies) having joined therein (an “Act”) on
or prior to the 90th calendar day after such record date, such notice, declaration or direction
shall automatically and without any action by any Person be canceled and of no further effect.
Nothing in this paragraph shall be construed to prevent a Holder (or a duly appointed agent or
proxy thereof) from giving, before or after the expiration of such 90-calendar day period, a
notice, declaration or direction contrary to or different from, or, after the expiration of such
period, identical to, the notice, declaration or direction to which such record date relates, in
which event a new record date in respect thereof shall be set pursuant to this paragraph. For the
avoidance of doubt, nothing in this paragraph shall be construed to render ineffective any notice,
declaration or direction of the type referred to in this paragraph given at any time to the
Trustee or the Company by Holders (or their duly appointed agents or proxies) of the requisite
principal amount of Notes on the date such notice, declaration or direction is so given.

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

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

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

     (b) the Company by the Trustee or by any Holder of Notes shall be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing, mailed,
first-class postage prepaid, or telecopied and confirmed by mail, first-class postage prepaid,
or delivered by hand or overnight courier, addressed to the Company at 9885 Towne Centre Drive,
San Diego, California 91212-1975, Attention: Chief Financial Officer, or at any other address
previously furnished in writing to the Trustee by the Company.

     The Trustee agrees to accept and act upon instructions or directions pursuant to this
Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic
methods. If the party elects to give the Trustee e-mail or facsimile instructions (or instructions
by a similar electronic method) and the Trustee in its discretion elects to act upon such
instructions, the Trustee’s understanding of such instructions shall be deemed controlling. The
Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from
the Trustee’s reliance upon and compliance with such instructions notwithstanding such
instructions conflict or are inconsistent with a subsequent written instruction. The party
providing electronic instructions agrees to assume all risks arising out of the use of such
electronic methods to submit instructions

16

 

and directions to the Trustee, including without limitation the risk of the Trustee acting on
unauthorized instructions, and the risk or interception and misuse by third parties.

     Notwithstanding anything to the contrary contained herein, as long as the Notes are in the
form of a Global Note, notice to the Holders may be made electronically in accordance with
procedures of the Depositary.

     SECTION 1.04 Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

     SECTION 1.05 Compliance Certificates and Opinions.

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

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

     (a) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

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

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

     SECTION 1.06 Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that

17

 

they be so certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons as to other
matters, and any such Person may certify or give an opinion as to such matters in one or
several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates
to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer
or officers of the Company stating that the information with respect to such factual matters is
in the possession of the Company, unless such counsel knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representations with respect to such
matters are erroneous.

     Where any Person is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument.

     SECTION 1.07 Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Register, not later than the latest date (if any), and not earlier than the earliest date (if
any), prescribed herein or in the Notes for the giving of such notice. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other
Holders. Where this Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after the event, and such
waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause
it shall be impracticable to give such notice by mail, then such notification as shall be made
with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder.

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     SECTION 1.08 Conflict With Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust
Indenture Act that is required under such Act to be a part of and govern this Indenture, the
latter provision shall control. If any provision of this Indenture modifies or excludes any
provision of the Trust Indenture Act that may be so modified or excluded, the latter provision
shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be.

     SECTION 1.09 Successors and Assigns.

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

     SECTION 1.10 Separability Clause.

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

     SECTION 1.11 Benefits of Indenture.

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

     SECTION 1.12 Governing Law.

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

     SECTION 1.13 Legal Holidays.

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

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of business on the second Scheduled Trading Day immediately preceding the Maturity Date

     SECTION 1.14 Force Majeure

     In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents,
acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts
of God, and interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; provided that the Trustee shall use reasonable efforts which
are consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

     SECTION 1.15 Waiver of Jury Trial.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

ARTICLE 2

Note Forms

     SECTION 2.01 Form Generally.

     The Notes shall be in substantially the form set forth in this Article 2, with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the rules of any
securities exchange, the Code, and regulations thereunder, or as may, consistent herewith, be
determined by the officers executing such Notes, as evidenced by their execution thereof. The
Company shall furnish any such legends and endorsements to the Trustee in writing. All Notes shall
be in fully registered form.

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

     The Notes shall be printed, lithographed, typewritten or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by the rules of
any automated quotation system or securities

20

 

exchange (including on steel engraved borders if so required by any securities exchange
upon which the Notes may be listed) on which the Notes may be listed for trading, as the case
may be, all as determined by the officers executing such Notes, as evidenced by their execution
thereof.

     SECTION 2.02 Form of Note.

[FORM OF FACE OF NOTE]

     The following legend (the “Restricted Legend”) shall appear on the face of each Restricted
Security:

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

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

21

 

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

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

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

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

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

22

 

ILLUMINA, INC.

0.25% Convertible Senior Notes due 2016

No. ______________

CUSIP No. 452327AC3

     ILLUMINA, INC., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor Person under the Indenture
referred to on the reverse hereof), for value received, hereby promises to pay to
_________________, or registered assigns, the principal sum of ________ United States Dollars (U.S.
$______) [if this Note is a Global Note, then insert — (which principal amount may from time to
time be decreased to such other principal amounts by adjustments made on the records of the
Registrar hereinafter referred to in accordance with the Indenture)] on March 15, 2016, and to pay
interest thereon, from March 18, 2011, or from the most recent Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, semi-annually in arrears on March 15
and September 15 in each year (each, an “Interest Payment Date”), commencing September 15, 2011, at
the rate of 0.25% per annum, until the principal hereof is due, and at the same rate on any overdue
principal and, to the extent permitted by law, on any overdue interest. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or more Predecessor Notes) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the February 28 (or February 29 in the case of a leap year) or August 31 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Except as otherwise provided
in the Indenture, any such interest not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Note (or one or more Predecessor Notes) is registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee
pursuant to Section 3.07 of the Indenture, notice whereof shall be given to Holders of Notes not
less than 10 calendar days prior to the Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any automated quotation system or
securities exchange on which the Notes may then be listed for trading, and upon such notice as may
be required by such exchange, all as more fully provided in the Indenture. Payments of principal
shall be made upon the surrender of this Note by the Holder thereof at the Corporate Trust Office
of the Trustee, or at such other office or agency of the Company as may be designated by it for
such purpose in such lawful monies of the United States of America as at the time of payment shall
be legal tender for the payment of public and private debts, or at such other offices or agencies
as the Company may designate. All amounts due in

23

 

cash with respect to the Notes shall be paid (A) in the case this Note is in global form, by
wire transfer of immediately available funds to the account designated by the Depositary or its
nominee; (B) in the case this Note is held, other than global form, by a Holder in an aggregate
principal amount of $5.0 million or less, by check mailed to such Holders; and (C) in the case this
Note is held, other than global form, by a Holder in an aggregate principal amount of more than
$5.0 million, either by check mailed to such holder or, upon application by such holder to the
Registrar not later than the relevant record date (in the case of an installment of interest due on
an Interest Payment Date) or 15 calendar days prior to such other date on which such amounts are
due, by wire transfer in immediately available funds to such Holder’s account within the United
States, which application shall remain in effect until the holder notifies, in writing, the
Registrar to the contrary.

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

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof or an Authenticating Agent by the manual signature of one of their
respective authorized signatories, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

[Remainder of page intentionally left blank]

24

 

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

	 	 	 	 	 
	 	ILLUMINA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Attest:

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Dated: __________________________

	 	 	 	 	 
	THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A.,

as Trustee

 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 
	 

25

 

[FORM OF REVERSE OF NOTE]

ILLUMINA, INC.

0.25% Convertible Senior Notes due 2016

     This Note is one of a duly authorized issue of Notes of the Company designated as its “0.25%
Convertible Senior Notes due 2016” (herein called the “Notes”) issued and to be issued under the
Indenture (the “Indenture”), dated as of March 18, 2011, between the Company and The Bank of New
York Mellon Trust Company, N.A., a national banking association, as Trustee (herein called the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and
the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered. As provided in the Indenture and subject to certain limitations therein set forth,
the Notes are exchangeable for a like aggregate principal amount of Notes of any authorized
denominations as requested by the Holder surrendering the same upon surrender of the Note or Notes
to be exchanged, at the Corporate Trust Office of the Trustee. The Trustee upon such surrender by
the Holder hereof and the satisfaction of any requirements therefor set forth in the Indenture
shall issue the new Notes in the requested denominations. Additional Notes may be issued in an
unlimited aggregate principal amount, subject to certain conditions specified in the Indenture.

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

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

     The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the Holders of the Notes, and in other circumstances, with
the consent of the Holders of not less than a

26

 

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

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

     Subject to the provisions of the Indenture, upon the occurrence of a Designated Event, the
Holder has the right, at such Holder’s option, to require the Company to repurchase all of such
Holder’s Notes or any portion thereof (in principal amounts of $1,000 or integral multiples
thereof) on the Designated Event Repurchase Date at a price equal to 100% of the principal amount
of the Notes such Holder elects to require the Company to repurchase, together with accrued and
unpaid interest to but excluding the Designated Event Repurchase Date, unless such Designated Event
Repurchase Date falls after a Regular Record Date and on or prior to the corresponding Interest
Payment Date, in which case the Company shall pay the full amount of accrued and unpaid interest
payable on such Interest Payment Date to the Holder of record at the close of business on the
corresponding Regular Record Date. After the occurrence of a Designated Event, but on or before the
20th calendar day after the Effective Date of such Designated Event, the Company shall provide to
all Holders of record of the Notes and the Trustee and Paying Agent a Designated Event Repurchase
Right Notice and issue a Press Release on the occurrence of such Designated Event and of the
repurchase right, if any, at the option of the Holders arising as a result thereof.

     Subject to the provisions of the Indenture, the Holder hereof has the right, at its option,
on and after December 15, 2015, or earlier upon the occurrence of

27

 

certain conditions specified in the Indenture, and prior to the close of business on the
second Scheduled Trading Day immediately preceding the Maturity Date, to convert any Notes or
portion thereof which is $1,000 or an integral multiple thereof, into cash, shares of Common Stock,
or a combination of cash and shares of Common Stock at the Company’s election, in each case at the
Conversion Rate specified in the Indenture, as adjusted from time to time as provided in the
Indenture, upon satisfaction of certain requirements set forth in the Indenture, including the
surrender of this Note, together with a Notice of Conversion, a form of which is contained under
Section 2.03 of the Indenture, as provided in the Indenture and this Note, to the Company at the
office or agency of the Company maintained for that purpose, or at the option of such Holder, the
Corporate Trust Office, and, unless the shares of Common Stock or Reference Property, as the case
may be, issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or
accompanied by instruments of transfer in form satisfactory to the Company duly executed by, the
Holder or by his duly authorized attorney. The initial Conversion Rate shall be 11.9687 shares of
Common Stock for each $1,000 principal amount of Notes. No fractional shares of Common Stock or
Reference Property, as the case may be, shall be issued upon any conversion, but an adjustment in
cash or an additional share shall be paid to the Holder, as provided in the Indenture, in respect
of any fraction of such share which would otherwise be issuable upon the surrender of any Note or
Notes for conversion. No adjustment shall be made for dividends or any such shares issued upon
conversion of such Notes except as provided in the Indenture.

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

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

28

 

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

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

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

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

29

 

FORM OF DESIGNATED EVENT REPURCHASE NOTICE

To: Illumina, Inc.

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

Dated:

 

 

Signature(s)

Signature(s) must be guaranteed by an Eligible

Guarantor Institution with membership in an
 approved
signature guarantee program pursuant to Rule 
17Ad-15
under the Securities Exchange Act of 1934.

 
Signature Guaranteed

Principal amount to be repurchased (at least U.S.

$1,000 or an integral multiple of $1,000 in excess

thereof): ___________________

Remaining principal amount following such repurchase

(not less than U.S. $1,000):

______________

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

30

 

     SECTION 2.03 Form of Notice of Conversion.

NOTICE OF CONVERSION

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

	 	 	 	 	 	 	 	 

	Dated:

	 	 	 	Signature(s)	 	 
	 

	 	 
	 	 	 	 

If shares or Notes are to be registered in the

name of a Person other than the Holder,

please print such Person’s name and address:

 
(Name)

 

 
(Address)

 
Social Security or other Identification

Number, if any

 

[Signature Guaranteed]

31

 

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

	1.	 	Principal amount to be converted: U.S. $ ___________

	2.	 	Principal amount and denomination of Notes
representing unconverted principal amount to be issued: ____________

	 	 	Amount: U.S. $___________ Denominations: U.S. $____________

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

     SECTION 2.04 Form of Assignment.

ASSIGNMENT

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

	 	 	 	 	 	 	 	 

	Dated:

	 	 	 	Signature(s)	 	 
	 

	 	 
	 	 	 	 

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

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature Guaranteed 	 
	 	 	 
	 

32

 

ARTICLE 3

The Notes

     SECTION 3.01 Title And Terms.

     The Notes shall be known and designated as the “0.25% Convertible Senior Notes due 2016” of
the Company. Their Maturity Date shall be March 15, 2016, and they shall bear interest on their
principal amount from March 18, 2011, payable semi-annually in arrears on March 15 and September
15 in each year, commencing September 15, 2011, at the rate of 0.25% per annum until the principal
thereof is due; provided, however, that payments shall only be made on a Business Day as provided
in Section 1.13 of this Indenture.

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

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

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

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

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

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

     SECTION 3.02 Denominations.

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

     SECTION 3.03 Execution, Authentication, Delivery and Dating.

     The Notes shall be executed on behalf of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its President or one of its Vice

33

 

Presidents, attested by its Secretary or one of its Assistant Secretaries. The
signature of any of these officers on the Notes may be manual or facsimile.

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

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

	 	 	Each Note shall be dated the date of its authentication.

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

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

     (a) Global Notes

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

     (ii) Except for exchanges of Global Notes for definitive, Non-Global Notes at the
sole discretion of the Company, no Global Note may be exchanged in whole or in part for
Notes registered, and no transfer of a Global Note in whole or in part may be registered,
in the name of any Person other than the Depositary for such Global Note or a nominee
thereof unless (A) such Depositary (i) has notified the Company that it is unwilling or
unable to continue as Depositary for such Global Note or (ii) has ceased to be a clearing
agency registered as such under the Exchange

34

 

Act or announces an intention permanently to cease business or does in fact do so
or (B) there shall have occurred and be continuing an Event of Default with respect to
such Global Note. In such event, if a successor Depositary for such Global Note is not
appointed by the Company within 90 calendar days after the Company receives such notice
or becomes aware of such ineligibility, the Company shall execute, and the Trustee, upon
receipt of an Officers’ Certificate directing the authentication and delivery of Notes,
shall authenticate and deliver, Notes, in any authorized denominations in an aggregate
principal amount equal to the principal amount of such Global Note in exchange for such
Global Note.

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

35

 

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

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

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

     SECTION 3.05 Persons Deemed Owners.

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

     SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Notes.

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

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

36

 

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

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

     Upon the issuance of any new Note under this Section 3.06, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Note issued pursuant to this Section 3.06 in lieu of any destroyed, lost or stolen
Note shall constitute an original additional contractual obligation of the Company, whether or not
the destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with any and all other
Notes duly issued hereunder.

     The provisions of this Section 3.06 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.

	 	 	SECTION 3.07 Payment of Interest; Interest Rights Preserved.

     Interest on any Note which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Note (or one or more
Predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest.

     Any interest on any Note which is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (a) or (b) below:

     (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered at the close of business on
a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Note and the date of the proposed payment,

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and at the same time the Company shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements reasonably satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest which shall be not more than 15
days and not less than 10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each Holder at his address as it appears in
the Register, not less than 10 days prior to such Special Record Date. Notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor having been so mailed,
such Defaulted Interest shall be paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such Special Record Date and shall
no longer be payable pursuant to the following Clause (b).

     (b) The Company may make payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be listed,
and upon such notice as may be required by such exchange, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section 3.07, each Note delivered under this
Indenture upon registration of transfer of or in exchange for or in lieu of any other Note
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by
such other Note, as provided for in this Indenture and the Notes.

     Upon conversion, a Holder shall not receive any separate cash payment for accrued and unpaid
interest except as set forth below. The Company’s settlement of the Conversion Obligation as
described above shall be deemed to satisfy its obligation to pay the principal amount of the Note
and accrued and unpaid interest to, but not including, the Conversion Date. As a result, accrued
and unpaid interest to, but not including, the Conversion Date shall be deemed to be paid in full
rather than cancelled, extinguished or forfeited. Notwithstanding the preceding sentence, if Notes
are converted after 5:00 p.m., New York City time, on a Regular Record Date, Holders of such Notes
as of 5:00 p.m., New York City time, on such Regular Record Date shall receive the interest payable
on such Notes on the corresponding Interest Payment Date notwithstanding the conversion.

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Notes surrendered for conversion during the period from 5:00 p.m., New York City time, on any
Regular Record Date to 9:00 a.m., New York City time, on the corresponding Interest Payment Date
must be accompanied by payment of an amount in cash equal to the interest payable, on such Interest
Payment Date, on the Notes so converted; provided, however, that no such payment need be made (i)
if the Company has specified a Designated Event Repurchase Date that is after a Regular Record Date
and on or prior to the corresponding Interest Payment Date; (ii) to the extent of any overdue
interest existing at the time of conversion with respect to such Note; or (iii) with respect to any
Conversion Date that occurs during the period from the close of business on the Regular Record Date
immediately preceding the Maturity Date to the Maturity Date. Except as described above, no payment
or adjustment shall be made for accrued interest on converted Notes.

     SECTION 3.08 Cancellation.

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

     SECTION 3.09 Computation of Interest.

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

ARTICLE 4

Discharge

     SECTION 4.01 Discharge of Liability on Notes.

     When (1) the Company shall deliver to the Registrar for cancellation all Notes then
Outstanding not theretofore delivered to the Registrar for cancellation or (2) all the Notes then
Outstanding not theretofore delivered to the Registrar for cancellation shall have (a) been
deposited for conversion (after all related Cash Settlement Averaging Periods have elapsed) and
the Company shall deliver to the Holders cash, shares of Common Stock, or a combination of cash
and shares of Common Stock sufficient to pay all amounts owing in respect of all such Notes or
(b) become due and payable on the Maturity Date, Designated Event Repurchase

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Date or otherwise, and the Company shall deposit with the Trustee cash, shares of Common
Stock, or a combination of cash and shares of Common Stock sufficient to pay all amounts owing in
respect of all such Notes, including the principal amount and interest accrued and unpaid to the
Maturity Date, Designated Event Repurchase Date or other such date, and if in either case (1) or
(2) the Company shall also pay or cause to be paid all other sums payable hereunder by the Company,
then this Indenture with respect to the Notes shall cease to be of further effect (except as to (i)
remaining rights of registration of transfer, substitution and exchange and conversion of Notes,
(ii) rights hereunder of Holders to receive from the Trustee payments of the amounts then due,
including interest with respect to the Notes and the other rights, duties and obligations of
Holders, as beneficiaries hereof solely with respect to the amounts, if any, so deposited with the
Trustee, and (iii) the rights, obligations and immunities of the Trustee, Authenticating Agent,
Paying Agent, Conversion Agent and Registrar under this Indenture with respect to the Notes), and
the Trustee, on demand of the Company accompanied by an Officers’ Certificate and an Opinion of
Counsel as required by Section 4.03 and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this Indenture with respect to the
Notes; provided, however, the Company hereby agrees to reimburse the Trustee, Authenticating Agent,
Paying Agent, Conversion Agent and Registrar for any costs or expenses thereafter reasonably and
properly incurred by the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and
Registrar and to compensate the Trustee, Authenticating Agent, Paying Agent, Conversion Agent and
Registrar for any services thereafter reasonably and properly rendered by the Trustee,
Authenticating Agent, Paying Agent, Conversion Agent and Registrar in connection with this
Indenture with respect to the Notes.

     SECTION 4.02 Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money to the Holders entitled
thereto by reason of any order or judgment of any court of governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this
Indenture with respect to the Notes shall be revived and reinstated as though no deposit had
occurred pursuant to Section 4.01 until such time as the Trustee or the Paying Agent is permitted
to apply all such money in accordance with this Indenture and the Notes to the Holders entitled
thereto; provided, however, that if the Company makes any payment of principal amount of or
interest on any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

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     SECTION 4.03 Officers’ Certificate; Opinion of Counsel.

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

ARTICLE 5

Remedies

     SECTION 5.01 Events of Default.

     “Event of Default,” wherever used herein, means any one of the following events with respect
to the Notes (whatever the reason for such Event of Default or whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental body):

     (a) default in any payment of interest on any Note when due and payable and the
default continues for a period of 30 calendar days; or

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

     (c) failure by the Company to satisfy its Conversion Obligation upon exercise of a
Holder’s conversion right; or

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

     (e) failure by the Company to comply in any material respect with its notice requirements
under Section 11.01(b) or Section 12.01(b)-(d) when due; or

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

     (g) default by the Company or any Subsidiary of the Company with respect to any
mortgage, agreement or other instrument under which there may be outstanding, or by which there
may be secured or evidenced, any debt for money borrowed in excess of $25.0 million in the
aggregate of the Company and/or any

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such Subsidiary, whether such debt now exists or shall hereafter be created, which default
results (i) in such debt becoming or being declared due and payable or
(ii) from a failure to pay the principal of any such debt when due and payable at its stated
maturity, upon required repurchase, upon declaration or otherwise; or

     (h) failure by the Company or any of its Subsidiaries, within 60 calendar days, to
pay, bond or otherwise discharge any judgments or orders for the payment of money the total
uninsured amount of which for the Company or any of its Subsidiaries exceeds in the aggregate
$25.0 million, which are not stayed on appeal; or

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

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

     SECTION 5.02 Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 5.01(i) or
Section 5.01(j) with respect to the Company) occurs and is continuing, then in every such case
(except as provided in the immediately following paragraph) the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Notes may declare the principal of and
accrued and unpaid interest on all such Notes to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders), and upon any such
declaration such principal and all accrued interest thereon shall become immediately due and
payable. If an Event of Default specified in Section 5.01(i) or Section 5.01(j) with respect to
the Company occurs, the principal of, and accrued interest on, all of the Notes shall become
immediately due and payable

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without any declaration or other Act of the Holders or any act on the part of the Trustee.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event
of Default specified in Section 5.01(f) relating to the failure by the Company to comply with its
obligations under Section 10.06 and for any failure by the Company to comply with the requirements
of Section 314(a)(1) of the Trust Indenture Act, shall for the first 180 calendar days after the
occurrence of such an Event of Default consist exclusively of the right (the “Extension Right”) to
receive an extension fee on the Notes in an amount equal to 0.25% of the principal amount of the
Notes (the “Extension Fee”). In no event shall Additional Interest accrue at an annual rate in
excess of 0.50%, in the aggregate, pursuant to this Section 5.02 and Section 10.09. If the Company
elects to pay the Extension Fee as the sole remedy for an Event of Default specified in
Section 5.01(f) relating to the failure by the Company to comply with its obligations under Section
10.06 and for any failure by the Company to comply with the requirements of Section 314(a)(1) of
the Trust Indenture Act, the Company (i) shall notify, in the manner provided for in Section 1.07,
the Holders (provided that notification to the Holders may be made through a notice to DTC) and the
Trustee of such election and shall issue a Press Release at any time before the open of business on
first Business Day following the date on which such Event of Default first occurs and (ii) pay the
Extension Fee, on or before the close of business on the date on which such Event of Default first
occurs, on all Notes then Outstanding. Upon the Company’s failure to give such notice or to pay the
Extension Fee when due, the Notes shall be subject to acceleration as provided in the first
paragraph of this Section 5.02. On and after the 181st calendar day after such Event of Default
occurs, if such Event of Default is not cured or waived prior to such 181st calendar day, the Notes
shall be subject to acceleration as provided in the first paragraph of this Section 5.02. If an
Extension Fee is payable under this Section 5.02, the Company shall deliver to the Trustee a
certificate to that effect stating (i) the amount of such Extension Fee that is payable and (ii)
the date on which such Extension Fee is payable. Unless and until a Responsible Officer of the
Trustee receives at the Corporate Trust Office such a certificate, the Trustee may assume without
inquiry that the Extension Fee is not payable. If the Extension Fee has been paid by the Company
directly to the persons entitled to it, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment.

     Notwithstanding the foregoing paragraph, if an event of default occurs under any series of the
Company’s debt securities (other than the Notes) issued subsequent to the Issue Date resulting from
the Company’s failure to comply with obligations similar to those contained in Section 10.06 or the
requirements of Section 314(a)(1) of the Trust Indenture Act, and such event of default is not
subject to extension on terms similar to those set forth in the foregoing paragraph,

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then the Extension Right shall no longer apply and the Notes shall be subject to
acceleration as provided in the first paragraph of this Section 5.02.

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

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

     Notwithstanding any other provision in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal of and (subject to
Section 3.07) interest on such Note on the Maturity Date, and to convert such Note in accordance
with Article 12, and to institute suit for the enforcement of any such payment and right to
convert, and such rights shall not be impaired without the consent of such Holder.

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     SECTION 5.04 Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Notes may on
behalf of the Holders of all of the Notes waive any past Default hereunder and its consequences,
except a Default (A) in the payment of the principal of or interest on any Note, (B) due to a
failure by the Company to satisfy its Conversion Obligation, or (C) in respect of a covenant or
provision hereof which under Article 8 cannot be modified or amended without the consent of the
Holder of each Outstanding Note affected.

     Upon any such waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

     SECTION 5.05 Waiver of Stay, Usury or Extension Laws.

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

     SECTION 5.06 Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Notes shall have the
right to direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the Trustee, provided
that

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

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

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

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

     The Company covenants that if:

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

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

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Notes, the whole amount then due and payable on such Notes for principal and interest, and, to the
extent that payment of such interest shall be legally enforceable, interest on any overdue
principal and on any overdue interest, at the rate borne by the Notes, and, in addition thereto,
such further amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel.

     If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.

     SECTION 5.08 Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other obligor upon the
Notes), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.07.

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     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize
the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     SECTION 5.09 Trustee May Enforce Claims Without Possession of
Notes.

     All rights of action and claims under this Indenture or the Notes may be prosecuted and
enforced by the Trustee without the possession of any of the Notes or the production thereof in
any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Notes in
respect of which such judgment has been recovered.

     SECTION 5.10 Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal (or premium, if any) or interest, upon presentation of the Notes and the
notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 6.07; and

     SECOND: To the payment of the amounts then due and unpaid for principal of and
interest on the Notes in respect of which or for the benefit of which such money has
been collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Notes for principal and interest, respectively.

     SECTION 5.11 Limitation on Suits.

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

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

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     (2) the Holders of not less than 25% in principal amount of the Outstanding Notes shall
have made written request to the Trustee to institute proceedings in respect of such Event
of Default in its own name as Trustee hereunder;

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

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

     (5) no direction that, in the opinion of the Trustee, is inconsistent with such
written request has been given to the Trustee during such 60-day period by the Holders of
a majority in principal amount of the Outstanding Notes;

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

     SECTION 5.12 Restoration of Rights and Remedies.

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or
has been determined adversely to the Trustee or to such Holder, then and in every such case,
subject to any determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and thereafter all
rights and remedies of the Trustee and the Holders shall continue as though no such proceeding
had been instituted.

     SECTION 5.13 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 3.06, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy

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hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

     SECTION 5.14 Delay or Omission Not Waiver.

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

     SECTION 5.15 Undertaking for Costs.

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

ARTICLE 6

The Trustee

     SECTION 6.01 Certain Duties and Responsibilities.

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

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

     (2) in the absence of bad faith or willful misconduct on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this

49

 

Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

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

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

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

     (2) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Notes relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture with respect to the Notes; and

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

     (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder, or
in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing
that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

     (e) Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Section 6.01.

     SECTION 6.02 Notice of Defaults.

     Within 90 days after the occurrence thereof, and if known to the Trustee, the Trustee shall
mail notice to each Holder of each Default or Event of Default with respect to the Notes known
to the Trustee, by transmitting such notice to Holders contained in the most recent list
furnished to the Trustee as provided in Section 9.01 and the names and addresses of Holders
received by the Trustee in

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its capacity as Registrar. Except in the case of a Default in the payment of principal
of or interest on any Note or conversion default, the Trustee may withhold notice if and so
long as a committee of trust officers of the Trustee in good faith determines that
withholding notice is in the interests of the Holders.

     SECTION 6.03 Certain Rights of Trustee.

     Subject to the provisions of Section 6.01:

     (a) the Trustee may conclusively rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     (b) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order, and any resolution of the Board of Directors
mentioned in this Indenture shall be sufficiently evidenced by a Board Resolution;

     (c) whenever in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, rely upon an Officers’ Certificate;

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

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

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and

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premises of the Company, personally or by agent or attorney at the sole cost of the Company
and shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation, except for the Trustee’s own negligent action, its own negligent failure to act, or
its own willful misconduct;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder;

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

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

     (j) the Trustee shall not be deemed to have notice of any Default or Event of Default unless
a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture;

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

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

     SECTION 6.04 Not Responsible for Recitals or Issuance of Notes.

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

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Authenticating Agent shall be accountable for the use or application by the Company
of Notes or the proceeds thereof.

     SECTION 6.05 May Hold Notes.

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

     SECTION 6.06 Money Held In Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

     SECTION 6.07 Compensation and Reimbursement.

     The Company agrees

     (a) to pay to the Trustee from time to time such compensation as the Company and the
Trustee shall from time to time agree in writing for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

     (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any provision of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense, disbursement or
advance as may be attributable to its negligence or bad faith; and

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

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

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

     The provisions of this Section shall survive the termination of this Indenture.

     SECTION 6.08 Conflicting Interests.

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

     SECTION 6.09 Corporate Trustee Required; Eligibility.

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

     SECTION 6.10 Resignation and Removal; Appointment Of Successor.

     No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.11.

     The Trustee may resign at any time by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by

54

 

Section 6.11 shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition, at the Company’s expense, any
court of competent jurisdiction for the appointment of a successor Trustee.

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

     If at any time:

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

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

     (c) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation,

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee or (B) any
Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall promptly
appoint a successor Trustee or Trustees. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of
the Holders of a majority in principal amount of the Outstanding Notes delivered to the Company
and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section 6.11, become the
successor Trustee and supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 6.11, the Trustee being removed, at the expense of the Company, may, or
any Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of
himself and all others similarly situated,

55

 

petition any court of competent jurisdiction for the appointment of a successor Trustee.

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

     SECTION 6.11 Acceptance of Appointment by Successor.

     Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

     Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee
all such rights, powers and trusts.

     No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

     SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this Article, without
the execution or filing of any paper or any further act on the part of any of the parties hereto.
In case any Notes shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Notes so authenticated with the same effect as if such
successor Trustee had itself authenticated such Notes.

56

 

     SECTION 6.13 Preferential Collection of Claims Against Company.

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

     SECTION 6.14 Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act on
behalf of the Trustee to authenticate Notes issued upon original issue and upon exchange,
registration of transfer or partial repurchase thereof or pursuant to Section 3.07, and Notes so
authenticated shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Notes by the Trustee or the Trustee’s
certificate of authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus
of not less than $50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of
this Section 6.14, the combined capital and surplus of such Authenticating Agent shall be deemed
to be its combined capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section 6.14, such Authenticating Agent shall resign immediately in the
manner and with the effect specified in this Section 6.14.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this
Section 6.14, without the execution or filing of any paper or any further act on the part of the
Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Company. The Trustee may at any time terminate

57

 

the agency of an Authenticating Agent by giving written notice thereof to such Authenticating
Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the
provisions of this
Section 6.14, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to
the Company and shall give notice of such appointment in the manner provided in Section 1.07 to all
Holders. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall
become vested with all the rights, powers and duties of its predecessor hereunder, with like effect
as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section 6.14.

     The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.14, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 6.07.

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

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

	 	 	 	 

	 

	 	

 
	, 
	 

	 	As Trustee
	 
	 	 
	 

	 	By  

 
	, 
	 

	 	As Authenticating Agent
	 
	 	 
	 

	 	By

 

	 

	 	Authorized Officer

58

 

ARTICLE 7

Consolidation, Merger, Conveyance, Transfer or Lease

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

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

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

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

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

     SECTION 7.02 Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person
or any conveyance, transfer or lease of all or substantially all of the properties and assets of
the Company in accordance with Section 7.01, the successor Person formed by such consolidation or
into which the Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Person shall be relieved
of all obligations and covenants under this Indenture and the Notes.

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ARTICLE 8

Supplemental Indentures

     SECTION 8.01 Supplemental Indentures Without Consent of Holders of
Notes.

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

     (a) to cure any ambiguity, omission, defect or inconsistency, provided that the rights of the
Holders are not adversely affected in any material respect; or

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

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

     (d) to secure the Notes; or

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

     (f) to provide for the conversion of Notes pursuant to Section 12.09;
or

     (g) to make any changes or modifications to this Indenture, provided that such action
pursuant to this clause (g) shall not adversely affect the rights of any Holder of Notes in any
material respect; provided further that any such action to conform the terms of this Indenture or
the Notes to the description of Notes contained in the Offering Memorandum shall not be deemed to
be adverse to any Holder of Notes; or

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

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

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     (j) to provide for the issuance of Additional Notes in accordance with the terms and
conditions of this Indenture; or

     (k) to make any other provisions with respect to matters or questions arising under this
Indenture as the Company may deem necessary or desirable, provided that such action pursuant to
this clause (k) shall not adversely affect the interests of the Holders of Notes in any material
respect.

     Upon Company Request, accompanied by a Board Resolution authorizing the execution of any such
supplemental indenture, and subject to and upon receipt by the Trustee of the documents described
in Section 8.04, the Trustee shall join with the Company in the execution of any supplemental
indenture authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations that may be therein contained.

     SECTION 8.02 Supplemental Indentures With Consent of Holders of
Notes.

     With the written consent of the Holders of at least a majority in principal amount of the
Outstanding Notes (including without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, Notes) by the Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Notes under this Indenture; provided,
however, that no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

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

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

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

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

     (e) reduce the Designated Event Repurchase Price of any Note or amend or modify in any
manner adverse to the Holders of the Notes the

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Company’s obligations to make such payments, whether through an amendment or waiver of
provisions in the covenants, definitions or otherwise; or

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

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

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

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

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

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

     SECTION 8.03 Notice of Supplemental Indentures.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 8.02, the Company shall give notice in the manner provided
in Section 1.07 (which may be made through notice to DTC) to all Holders of Notes and issue a
Press Release, briefly setting forth in general terms the substance of such supplemental
indenture. Any failure of the Company to give such notice or to issue such Press Release, or any
defect therein, shall not in any way impair or affect the validity of any such supplemental
indenture.

     SECTION 8.04 Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article 8, this Indenture shall
be modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby.

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     SECTION 8.05 Conformity with Trust Indenture Act.

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

ARTICLE 9

Holders Lists and by Trustee and Company

     SECTION 9.01 Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee

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

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

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

     SECTION 9.02 Preservation of Information.

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

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

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

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     SECTION 9.03 Communication to Holders.

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

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

ARTICLE 10

Covenants

     SECTION 10.01 Payment of Principal and Interest.

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

     SECTION 10.02 Maintenance of Offices or Agencies.

     The Company shall maintain in an office or agency where the Notes may be surrendered for
registration of transfer or exchange or for presentation for payment or for conversion or
repurchase and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company shall give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency not designated or appointed
by the Trustee. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office.

     The Company may at any time and from time to time vary or terminate the appointment
of any such agent or appoint any additional agents for any or all of

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

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

     SECTION 10.03 Existence.

     Subject to Section 7.01, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence, rights (charter and statutory) and
franchises; provided, however, that the Company shall not be required to preserve any such right
or franchise if the Company shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and that the loss thereof is not disadvantageous in
any material respect to the Holders.

     SECTION 10.04 Statement by Officers as to Default.

     The Company shall deliver to the Trustee, within 120 calendar days after the end of each
fiscal year, an Officers’ Certificate indicating whether the signing officers know of any Default
that occurred during the previous fiscal year. The Company shall also deliver to the Trustee,
within 30 calendar days of becoming aware of any Default or any Event of Default under this
Indenture, an Officers’ Certificate specifying with particularity such Default or Event of
Default and further stating what action the Company has taken, is taking or proposes to take with
respect thereto.

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

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

     If the Company shall at any time act as its own Paying Agent, it will, on or before
each due date of the principal of or interest on any of the Notes, segregate

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and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay
the principal or interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee of its action or
failure so to act.

     Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of
the principal of or interest on any Notes, deposit with a Paying Agent a sum sufficient to pay such
amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

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

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

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or interest on any Note and remaining unclaimed for two
years after such principal or interest has become due and payable shall be paid to the Company on
Company Request, or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a Press Release,
notice that such money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Company.

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     SECTION 10.06 Reports by Company

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

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

     SECTION 10.07 Delivery of Certain Information

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

     SECTION 10.08 Additional Interest Notice

     If Additional Interest is payable by the Company pursuant to
Section 10.09, the Company shall deliver to the Trustee an Officers’ Certificate to that effect
stating (a) the amount of such Additional Interest that is payable and (b) the date on which such
interest is payable. Unless and until a Responsible Officer of the Trustee receives at the
Corporate Trust Office such a certificate, the Trustee may assume without inquiry that no such
Additional Interest is payable. If the Company has paid Additional Interest directly to the Persons
entitled to them, the

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Company shall deliver to the Trustee an Officers’ Certificate setting forth the particulars
of such payment.

     SECTION 10.09 Additional Interest Payable Upon Failure to Report or Delegend

     (a) If at any time during the period beginning six months and ending one year after the last
original issuance date of the Notes, the Company fails to timely file any document or report that
it is required (giving effect to any grace period provided by Rule 12b-25 of the Exchange Act) to
file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act (other than any
Current Report on Form 8-K) or the Notes are not otherwise freely tradable by the Holders, other
than Holders who are Affiliates of the Company, during that period, the Company shall pay
Additional Interest on the Notes. Additional Interest will accrue on the Notes at the rate of
0.25% per annum for each day during the period for which the Company’s failure to file, or
failure of the Notes to be freely tradable by the Holders, other than Holders who are Affiliates
of the Company, has occurred and is continuing; provided that, the Company shall have
14 calendar days, in the aggregate, to cure all such missed filings. The Additional Interest
payable pursuant to this Section 10.09(a) shall be payable on the Interest Payment Date following
the late filing (after giving effect to the aggregate cure period described in the immediately
preceding sentence).

     (b) Unless:

     (1) the Restricted Legend on the Notes and any shares of Common Stock issued
upon conversion of the Notes required by Section 2.02 has been removed, and

     (2) the Notes and such shares of Common Stock are freely tradable pursuant to
Rule 144 under the Securities Act without volume restrictions by holders other than
Affiliates of the Company,

as of the 365th day after the last date of original issuance of the Notes, the Company shall pay
Additional Interest on the Notes at an annual rate equal to 0.25% of the aggregate principal amount
of the Notes. So long (but only so long) as a condition described in either (1) or (2) of this (b)
has not been satisfied, the Company shall pay such Additional Interest in cash on the Interest
Payment Date of each year to the Person who is the holder of record of the Notes on the immediately
preceding Regular Record Date. When such registration default ceases to continue (or both
conditions described in (1) and (2) of this (b) have been satisfied), accrued and unpaid Additional
Interest through the date of cessation (or satisfaction) shall be paid in cash on the subsequent
Interest Payment Date to the record holder and Additional Interest shall cease to accrue on the
date of cessation (or satisfaction). In no event shall Additional Interest accrue at an

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annual rate in excess of 0.50%, in the aggregate, pursuant to this Section 10.09 and Section
5.02. In the event that the Company becomes obligated to pay Additional Interest under this (a)
or (b), such interest shall be the sole remedy of holders and no Event of Default shall result
(other than from any failure to pay such interest when due and payable).

ARTICLE 11

Repurchase of Notes

     SECTION 11.01 Right to Require Repurchase Upon a Designated Event.

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

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

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

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     (i) delivery to the Trustee (or other Paying Agent appointed by the Company) by a
Holder of a duly completed notice (the “Designated Event Repurchase Notice”) in the form
set forth on the reverse of the Note prior to the close of business on the Business Day
immediately preceding the Designated Event Repurchase Date; and

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

     The Designated Event Repurchase Notice shall state:

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

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

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

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

     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the
Company of the receipt by it of any Designated Event Repurchase Notice or written notice of
withdrawal thereof in accordance with the provisions of subsection (c) of this Section 11.01.

     Any Note that is to be repurchased only in part shall be surrendered to the Trustee (with,
if the Company or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company and the Trustee duly executed by the Holder thereof
or his attorney duly authorized in

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writing), and the Company shall execute, and the Trustee shall authenticate and make available
for delivery to the Holder of such Note without service charge, a new Note or Notes, containing
identical terms and conditions, each in an authorized denomination in aggregate principal amount
equal to and in exchange for the unrepurchased portion of the principal of the Note so
surrendered.

     (b) After the occurrence of a Designated Event, but on or before the 20th calendar day after
the Effective Date of such Designated Event, the Company shall provide to all Holders of record of
the Notes and the Trustee and Paying Agent a notice (the “Designated Event Repurchase Right Notice”) (which notification to Holders may be made through a notice to DTC) and issue a Press Release
on the occurrence of such Designated Event and of the repurchase right, if any, at the option of
the Holders arising as a result thereof.

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

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

     (ii) the date of the Designated Event;

     (iii) the Designated Event Repurchase Date and the last date on which a Holder may
exercise the repurchase right;

     (iv) the Designated Event Repurchase Price;

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

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

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

     (viii) that the Holder must exercise the repurchase right on or prior to the close
of business on the Business Day immediately preceding the Designated Event Repurchase
Date (the “Designated Event Expiration Time”);

     (ix) that the Holder shall have the right to withdraw any Notes surrendered for
repurchase prior to the Designated Event Expiration Time; and

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

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

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

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

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

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

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

     (d) On or prior to 11:00 a.m., New York City time, on the Business Day on the Designated
Event Repurchase Date, the Company shall deposit with the Trustee (or other Paying Agent appointed
by the Company or if the Company is acting as its own Paying Agent, set aside, segregate and hold
in trust as provided in Section 10.03) an amount of money sufficient to repurchase on the
Designated Event Repurchase Date all of the Notes to be repurchased on such date at the Designated
Event Repurchase Price. Subject to receipt of funds and/or Notes by the Trustee (or other Paying
Agent appointed by the Company), payment for Notes surrendered for repurchase (and not withdrawn)
prior to the Designated Event Expiration Time shall be made promptly after the later of (x) the
Designated Event Repurchase Date with respect to such Note (provided the Holder has satisfied the
conditions to the payment of the Designated Event Repurchase Price in this Section 11.01), and (y)
the time of book-entry transfer or the delivery of such Note to the Trustee (or other Paying Agent
appointed by the Company) by the Holder thereof in the manner required by this Section 11.01. The
Trustee shall, promptly after such payment and upon written demand by the Company, return to the
Company any funds in excess of the Designated Event Repurchase Price.

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

ARTICLE 12

Conversion of Notes

     SECTION 12.01 Conversion Privilege and Conversion Rate.

     (a) Subject to the conditions described in clause (i), (ii), and (iii) below, and upon
compliance with the provisions of this Article 12, a Holder shall have the right, at such Holder’s
option, to convert all or any portion (if the portion to be converted is $1,000 principal amount
or an integral multiple thereof) of any Notes at any time prior to the close of business on the
Scheduled Trading Day immediately preceding December 15, 2015, at a rate (the “Conversion Rate”)
of 11.9687 shares of Common Stock (subject to adjustment by the Company as provided in Section
12.03) per $1,000 principal amount of the Notes under the circumstances and during the periods set
forth below. On and after December 15, 2015 regardless of the conditions described in clause (i),
(ii) and (ii) below, and upon compliance with the provisions of this Article 12, a Holder shall
have the right, at such Holder’s option, to convert all or any portion (if the portion to be
converted is $1,000 principal amount or an integral multiple thereof) of any Notes at the
applicable Conversion Rate at any time prior to the close of business on the second Scheduled
Trading Day immediately preceding the Maturity Date.

     (i) The Notes shall be convertible prior to December 15, 2015, during the five
Business Day period immediately after any ten consecutive Trading Day period (the
“Measurement Period”) in which the Trading Price per $1,000 principal amount of the Notes
for each Trading Day of such Measurement Period was less than 98% of the product of the
Last Reported Sale Price of the Common Stock on such Trading Day and the Conversion Rate
in effect on such Trading Day (the “Trading Price Condition”) determined as set forth
below. If a Holder provides the Company with reasonable evidence that the Trading Price
per $1,000 principal amount of the Notes would be less than 98% of the product of (a) the
then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price at such
time, then the Company shall determine the

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Trading Price of the Notes beginning on the next Trading Day and on each successive
Trading Day until the date on which the Trading Price per Note is greater than or equal to
98% of the product of (a) the then-applicable Conversion Rate of the Notes and (b) the
Last Reported Sale Price. If the Trading Price Condition has been met in accordance with
the foregoing, the Company shall so notify the Holders of the Notes (which may be through
a notice to DTC) and the Trustee and issue a related Press Release. If, at any time after
the Trading Price Condition has been met in accordance with the foregoing, the Trading
Price per $1,000 principal amount of the Notes is greater than 98% of the product of (a)
the then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price on
such date, the Company shall so notify the Holders of the Notes (which may be through a
notice to DTC) and the Trustee and issue a related Press Release. Furthermore, if the
Company does not, when obligated to do so pursuant to this clause (i), determine the
Trading Price of the Notes, then the Trading Price per $1,000 principal amount of the
Notes shall be deemed to be less than 98% of the product of (a) the then-applicable
Conversion Rate of the Notes and (b) the Last Reported Sale Price on such date.

     (ii) The Notes shall be convertible prior to December 15, 2015, during any calendar
quarter (and only during such calendar quarter) after the calendar quarter ending March
31, 2011, if the Last Reported Sale Price of the Common Stock for twenty (20) or more
Trading Days in the period of thirty (30) consecutive Trading Days ending on the last
Trading Day of the immediately preceding calendar quarter exceeds 130% of the applicable
Conversion Price in effect on the last Trading Day of the immediately preceding calendar
quarter.

     (iii) The Notes shall be convertible prior to December 15, 2015, as provided in
subsections (b), (c) and (d) of this Section 12.01.

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

     (i) distribute to all or substantially all holders of Common Stock any rights or
warrants entitling them, for a period of not more than 60 calendar days after the
record date for such distribution, to subscribe for or purchase Common Stock at a
price per share less than the Last Reported Sale Price of the Common Stock for the
Trading Day immediately preceding the declaration date of such distribution; or

     (ii) distribute to all or substantially all holders of Common Stock, assets
(including cash) or debt securities of the Company or rights to purchase the Company’s
securities, which distribution has a per share value (as determined by the Board of
Directors) exceeding 10% of the

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Last Reported Sale Price of the Common Stock on the Trading Day
immediately preceding the date of declaration of such distribution,

then, in either case, Holders may surrender the Notes for conversion at any time on and after
the date that the Company provides the notice to such Holders referred to in the next sentence
until the earlier of 5:00 p.m., New York City time, on the Business Day immediately preceding the
Ex-Date for such distribution or the date the Company announces that such distribution will not
take place. The Company shall notify Holders (which notification may be made through a notice to
DTC) and the Trustee and issue a Press Release with respect to any distribution referred to in
either clause (i) or clause (ii) above and of the resulting conversion right no later than the
25th Scheduled Trading Day prior to the Ex- Date for such distribution. A Holder may not exercise
this right if such Holder is permitted to participate (as a result of holding the Notes, and at
the same time as holders of the Common Stock participate) in any distribution referred to in
clause (i) or clause (ii) above as if such Holder held a number of shares of Common Stock equal to
the then-applicable Conversion Rate, multiplied by the principal amount (expressed in thousands)
of Notes held by such Holder, without having to convert its Notes.

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

     (d) If the Company is a party to any transaction or event described in clause (1) or (2) of
the definition of Fundamental Change, a Holder may surrender Notes for conversion at any time,
after the Company gives the notice referred to in the last sentence of this Section 12.01(d), from
and after the 25th Scheduled Trading Day prior to the anticipated effective date of such
transaction or event until (i) the related Designated Event Repurchase Date or (ii) if there is no
such Designated Event Repurchase Date, 25 Trading Days following the effective date of such
transaction or event. If an event described in clause (3) of the definition of Fundamental Change
or a Termination of Trading occurs, a Holder may

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

     (e) If a Holder elects to convert Notes in connection with a Fundamental Change that occurs
prior to the Maturity Date, the Conversion Rate applicable to each $1,000 principal amount of Notes
so converted shall be increased by an additional number of shares of Common Stock (the “Additional
Shares”) as described below; provided, however that no increase shall be made in the case of a
Fundamental Change if at least 90% of the consideration for the Company’s Common Stock (excluding
cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal
rights) in such Fundamental Change consists of shares of Capital Stock or American Depositary
Receipts in respect of shares of Capital Stock traded on the New York Stock Exchange, Nasdaq, the
American Stock Exchange or another United States national securities exchange (or that will be so
traded or quoted immediately following the transaction) and as a result of such transaction or
transactions the Notes become convertible into cash and, if applicable, such shares of such Capital
Stock or such American Depositary Receipts. Settlement of Notes tendered for conversion to which
Additional Shares shall be added to the Conversion Rate as provided in this subsection shall be
settled pursuant to Section 12.02(h). For purposes of this subsection (e), a conversion shall be
deemed to be “in connection with” a Fundamental Change to the extent that a Holder surrenders Notes
for conversion on or after the 25th Scheduled Trading Day prior to the date announced by the
Company as the anticipated effective date of such Fundamental Change until the related Designated
Event Repurchase Date for such Fundamental Change (or, if there is no such Designated Event
Repurchase Date, until the 25th Trading Day following such effective date).

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

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Effective Date is between two Effective Dates in the table, the number of Additional
Shares shall be determined by a straight-line interpolation between the number of
Additional Shares set forth for the next higher and next lower Stock Price amounts and
the two nearest Effective Dates, as applicable, based on a 365-day year; provided
further that if (1) the Stock Price is greater than $250.00 per share of Common Stock
(subject to adjustment in accordance with clause (ii) below), no Additional Shares shall
be added to the Conversion Rate, and (2) the Stock Price is less than $64.27 per share
(subject to adjustment in accordance with clause (ii) below), no Additional Shares shall
be added to the Conversion Rate. Notwithstanding the foregoing, in no event shall the
Conversion Rate exceed 15.5594 per $1,000 principal amount of Notes (subject to
adjustment in the same manner as set forth in Section 12.03).

     (ii) The Stock Prices set forth in the first row of the tables in Schedule A hereto shall be adjusted by the Company as of any date on which the
Conversion Rate of the Notes is adjusted (except pursuant to this Section 12.01(e)). The
adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to such
adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate in
effect immediately prior to the adjustment giving rise to the Stock Price adjustment and
the denominator of which is the Conversion Rate as so adjusted. The number of Additional
Shares within the table shall be adjusted in the same manner as the Conversion Rate as
set forth in Section 12.03 (other than by operation of an adjustment to the Conversion
Rate by adding Additional Shares).

     SECTION 12.02 Exercise of Conversion Privilege.

     (a) Subject to subsection (b) of this Section 12.02, the Company shall satisfy the Conversion
Obligation with respect to each $1,000 principal amount of Notes tendered for conversion in either
cash (“Cash Settlement”), shares of Common Stock (“Physical Settlement”) or a combination of cash
and shares of Common Stock (“Combination Settlement”), at its election, as set forth in this
Section 12.02.

     (i) All conversions occurring on or after the 27th Scheduled Trading Day prior to
the Maturity Date shall be settled using the same Settlement Method.

     (ii) Prior to the 27th Scheduled Trading Day prior to the Maturity Date, except as
described in clause (i) above, the Company shall use the same Settlement Method for all
conversions occurring on any given Conversion Date (as defined in subsection (g) of this
Section 12.02). Except for any conversion with a Conversion Date that occurs on or after

77

 

the 27th Scheduled Trading Day prior to the Maturity Date, the Company shall not
have any obligation to use the same Settlement Method with respect to conversions that
occur on different Conversion Dates.

     (iii) If, in respect of any Conversion Date (or, in the case of any conversions
occurring on or after the 27th Scheduled Trading Day prior to the Maturity Date, no later
than the 28th Scheduled Trading Day prior to the Maturity Date), the Company elects to
deliver a notice (the “Settlement Notice”) of the relevant Settlement Method in respect of
such Conversion Date (or such period, as the case may be), the Company shall deliver such
Settlement Notice to converting Holders no later than the second Trading Day immediately
following the relevant Conversion Date (or such period, as the case may be). Such
Settlement Notice shall specify whether the Company shall satisfy its Conversion
Obligation by Cash Settlement, Physical Settlement or Combination Settlement, and in the
case of an election of Combination Settlement, the relevant Settlement Notice shall
indicate the Specified Dollar Amount. If the Company does not timely deliver a Settlement
Notice, the Company will be deemed to have elected Combination Settlement in respect of
the relevant Conversion Obligation, and the Specified Dollar Amount shall be deemed to be
equal to $1,000. If the Company delivers a Settlement Notice electing Combination
Settlement in respect of its Conversion Obligation but does not indicate a Specified
Dollar Amount in such Settlement Notice, the Specified Dollar Amount shall be deemed to be
equal to $1,000.

     (iv) The cash, shares of Common Stock or combination of cash and shares of Common
Stock to be paid and/or delivered to converting Holders in respect of any conversion of
Notes (the “Settlement Amount”) shall be computed as follows:

     (A) if the Company elects to satisfy its Conversion Obligation in respect
of such conversion by Physical Settlement, the Company shall deliver to the
converting Holder a number of shares of Common Stock equal to the product of
(1) the aggregate principal amount of Notes to be converted, divided by $1,000,
and
(2) the applicable Conversion Rate;

     (B) if the Company elects to satisfy its Conversion Obligation in respect
of such conversion by Cash Settlement, the Company shall pay to the converting
Holder in respect of each $1,000 principal amount of Notes being converted
cash in an amount equal to the sum of the Daily Conversion Values for each of
the 20 consecutive Trading Days during the relevant Cash Settlement Averaging
Period; and

78

 

     (C) if the Company elects (or is deemed to have elected) to satisfy its
Conversion Obligation in respect of such conversion by Combination Settlement,
the Company shall pay or deliver, as the case may be, in respect of each $1,000
principal amount of Notes being converted, an amount of cash and shares of Common
Stock equal to the sum of the Daily Settlement Amounts for each of the 20
consecutive Trading Days during the relevant Cash Settlement Averaging Period.

     (v) The Company shall deliver the consideration due in respect of its Conversion
Obligation no later than the third Business Day immediately following the relevant
Conversion Date (if the Company elects to satisfy its Conversion Obligation in respect
of such conversion by Physical Settlement) or no later than the third Business Day
immediately following the last Trading Day of the Cash Settlement Averaging Period (if
the Company elects or is deemed to elect to satisfy its Conversion Obligation in respect
of such conversion by any other Settlement Method).

     (b) Notwithstanding subsection (a) of this Section 12.02, the Company shall satisfy the
Conversion Obligation with respect to each $1,000 principal amount of Notes tendered for
conversion to which Additional Shares shall be added to the Conversion Rate as set forth in
Section 12.01(e) pursuant to this clause (b).

     (i) If the last Scheduled Trading Day of the applicable Cash Settlement Averaging
Period related to Notes surrendered for conversion is prior to the third Scheduled
Trading Day preceding the Effective Date of the Fundamental Change, the Company shall
satisfy the related Conversion Obligation with respect to each $1,000 principal amount
of Notes tendered for conversion as described in this subsection (b) by delivering the
amount of cash, shares of Common Stock or a combination thereof (based on the Conversion
Rate, but without regard to the number of Additional Shares to be added to the
Conversion Rate pursuant to Section 12.01(e)) on the third Scheduled Trading Day
immediately following the last Scheduled Trading Day of the applicable Cash Settlement
Averaging Period. In addition, as soon as practicable following the Effective Date of
the Fundamental Change, the Company shall deliver the increase in such amount of Common
Stock or of Reference Property in lieu of shares of Common Stock, if any, as if the
Conversion Rate had been increased by such number of Additional Shares during the
related Cash Settlement Averaging Period (and based upon the related Daily VWAP during
such Cash Settlement Averaging Period). If such increased amount results in an increase
to the amount of cash to be paid to Holders, the Company shall pay such increase in
cash, and if such increased

79

 

amount results in an increase to the number of shares of Common Stock, the Company
shall deliver such increase by delivering Common Stock or Reference Property based on
such increased number of shares.

     (ii) If the last Scheduled Trading Day of the applicable Cash Settlement Averaging
Period related to Notes surrendered for conversion is on or following the third Scheduled
Trading Day preceding the Effective Date of such Fundamental Change, the Company shall
satisfy the Conversion Obligation with respect to each $1,000 principal amount of Notes
tendered for conversion as described in Section 12.01(b) (based on the Conversion Rate as
increased by the Additional Shares pursuant to Section 12.01(e)) on the later to occur of
(1) the Effective Date of the Fundamental Change and (2) the third Scheduled Trading Day
immediately following the last Scheduled Trading Day of the applicable Cash Settlement
Averaging Period.

     (c) The Daily Settlement Amounts (if applicable) and the Daily Conversion Values (if
applicable) shall be determined by the Company promptly following the last day of the Cash
Settlement Averaging Period. Promptly after such determination of the Daily Settlement Amounts or
the Daily Conversion Values, as the case may be, and the amount of cash or additional share of
Common Stock deliverable in lieu of any fractional share, as applicable, the Company shall notify
the Trustee and the Conversion Agent (if other than the Trustee) of the Daily Settlement Amounts
or the Daily Conversion Values, as the case may be, and the amount of cash or additional share of
Common Stock deliverable in lieu of fractional shares of Common Stock, as applicable. The Trustee
and the Conversion Agent (if other than the Trustee) shall have no responsibility for any such
determination.

     (d) Subject to Section 12.02(e), upon conversion, Holders shall not receive any separate
cash payment for accrued and unpaid interest, if any.

     (e) Upon the conversion of any Notes, a Holder of such Notes shall not receive any separate
cash payment for accrued and unpaid interest except as set forth below. The Company’s delivery to
the Holder of cash, shares of Common Stock, or a combination of cash and shares of Common Stock,
together with any cash payment or additional share for any fractional share of Common Stock, if
applicable, into which a Note is convertible shall be deemed to satisfy in full the Company’s
obligation to pay the principal amount of the Notes so converted and accrued and unpaid interest
(and Additional Interest, if any) to, but not including, the Conversion Date. As a result,
accrued and unpaid interest (including Additional Interest, if any) to, but not including, the
Conversion Date shall be deemed to be paid in full rather than cancelled, extinguished or
forfeited. Notwithstanding the preceding sentence, if Notes are converted after 5:00 p.m., New
York City time, on a Regular Record Date, Holders of such Notes as of

80

 

5:00 p.m., New York City time, on such Regular Record Date shall receive the interest
payable on such Notes on the corresponding Interest Payment Date notwithstanding the
conversion. Notes surrendered for conversion during the period from 5:00 p.m., New York City
time, on any Regular Record Date to
9:00 a.m., New York City time, on the corresponding Interest Payment Date must be accompanied
by payment of an amount in cash equal to the interest payable, on such Interest Payment Date, on
the Notes so converted; provided, however, that no such payment need be made (i) if the Company has
specified a Designated Event Repurchase Date that is after a Regular Record Date and on or prior to
the corresponding Interest Payment Date; (ii) to the extent of any overdue interest existing at the
time of conversion with respect to such Note; or (iii) with respect to any Conversion Date that
occurs during the period from the close of business on the Regular Record Date immediately
preceding the Maturity Date to the Maturity Date. Except as described above, no payment or
adjustment shall be made for accrued interest on converted Notes.

     (f) The Company shall not issue any fractional share of Common Stock upon conversion of the
Notes and shall instead elect, in its sole discretion, to (1) pay cash in lieu of any fractional
share of Common Stock issuable upon conversion based on the Daily VWAP of the Common Stock on the
relevant Conversion Date (in the case of Physical Settlement) or based on the Daily VWAP on the
last Trading Day of the relevant Cash Settlement Averaging Period (in the case of Combination
Settlement) or (2) round up the number of shares of Common Stock issuable upon conversion of Notes
to the nearest whole number of shares. For each Note surrendered for conversion, if the Company
has elected (or been deemed to elect) Combination Settlement, the full number of shares that shall
be issued upon conversion thereof shall be computed on the basis of the aggregate Daily Settlement
Amounts for the applicable Cash Settlement Averaging Period and any fractional share remaining
after such computation may, in the Company’s sole discretion, be paid in cash or rounded up to the
nearest whole share. In addition, if more than one Note shall be surrendered for conversion at one
time by the same Holder, the number of full shares that shall be issued upon conversion thereof
shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof) so surrendered.

     (g) Before any Holder of a Note shall be entitled to convert the same as set forth above,
such holder shall (1) in the case of a Global Note, comply with the procedures of the Depositary
in effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such Holder is not entitled as set forth in subsection (e) of this Section
12.02 and, if required, pay all taxes or duties, if any, and (2) in the case of a Note issued in
certificated form, (A) complete and manually sign and deliver an irrevocable written notice to the
Conversion Agent in the form set forth under Section 2.03 (or a facsimile thereof) (a “Notice of
Conversion”) at the office of the Conversion Agent and

81

 

shall state in writing therein the principal amount of Notes to be converted and the name or
names (with addresses) in which such Holder wishes the certificate or certificates for any shares
of Common Stock, if any, to be delivered upon settlement of the Conversion Obligation to be
registered, (B) surrender such Notes, duly endorsed to the Company or in blank (and accompanied by
appropriate endorsement and transfer documents), at the office of the Conversion Agent,
(C) if required, pay funds equal to interest payable on the next Interest Payment Date to which
such Holder is not entitled as set forth in subsection (e) of this Section 12.02, and (D) if
required, pay all taxes or duties, if any. As used herein, “Conversion Date” shall mean the date
that the Holder has complied with the requirements set forth in this subsection (g).

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

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

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

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

     (j) If a Holder submits a Note for conversion, the Company shall pay all documentary, stamp
or similar issue or transfer tax due, if any, which may be imposed by the United States or any
political subdivision thereof or taxing

82

 

authority thereof or therein with respect to the issuance of shares of Common Stock, if any,
upon the conversion. However, the Holder shall pay any such tax which is due because the Holder
requests any shares of Common Stock to be issued in a name other than the Holder’s name. The
Company may refuse to deliver the certificates representing the shares of Common Stock being issued
in a name other than the Holder’s name until the Company receives a sum sufficient to pay any tax
which will be due because the shares are to be issued in a name other than the Holder’s name.
Nothing herein shall preclude any tax withholding required by law or regulations.

     (k) Except as provided in Section 12.03(a), no adjustment shall be made for dividends
on any shares issued upon the conversion of any Note as provided in this Article 12.

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

     SECTION 12.03 Adjustment of Conversion Rate.

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

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

	 	 	 	 	 	 	 

	CR’

	 	=
	 	CR0 ×
	 	OS’
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	OS0

where,

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

83

 

CR’ = the Conversion Rate in effect immediately after the open of
business on such Ex-Date or effective date;

OS0 = the number of shares of Common Stock outstanding immediately
prior to the open of business on such Ex-Date or effective date; and

OS’ = the number of shares of Common Stock outstanding immediately after, and
solely as a result of, giving effect to such dividend, distribution, share split or
share combination.

     Such adjustment shall become effective immediately after the open of business on the
Ex-Date fixed for such dividend or distribution, or immediately after the open of business on
the effective date for such share split or share combination. If any dividend or distribution of
the type described in this Section 12.03(a) is declared but not so paid or made, or the
outstanding shares of Common Stock are not split or combined, as the case may be, the Conversion
Rate shall be immediately readjusted, effective as of the date the Board of
Directors determines not to pay such dividend or distribution, or split or combine the
outstanding shares of Common Stock, as the case may be, to the Conversion Rate that would then be
in effect if such dividend, distribution, share split or share combination had not been declared.

     (b) In case the Company shall distribute to all or substantially all holders of its
outstanding shares of Common Stock rights or warrants entitling them (for a period expiring not
more than 60 calendar days after the record date for such distribution) to subscribe for or
purchase shares of Common Stock at a price per share less than the average of the Last Reported
Sale Prices of the Common Stock over the 10 consecutive Trading Days ending on, and including, the
Trading Day immediately preceding the date of announcement of such rights or warrants, the
Conversion Rate shall be adjusted based on the following formula:

	 	 	 	 	 	 	 

	CR’

	 	=
	 	CR0 ×
	 	OS0 + X
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	OS0 + Y

where,

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

CR’ = the Conversion Rate in effect immediately after the open of business on
the Ex-Date for such distribution;

OS0 = the number of shares of Common Stock outstanding immediately
prior to the open of business on the Ex-Date for such distribution;

84

 

X = the total number of shares of Common Stock issuable pursuant to such
rights or warrants; and

Y = the number of shares of Common Stock equal to the aggregate price payable to
exercise such rights or warrants divided by the average of the Last Reported Sale
Prices of Common Stock over the 10 consecutive Trading Day period ending on, and
including, the Trading Day immediately preceding the date of announcement of such
rights or warrants.

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

     In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such average of the Last Reported Sale Prices of Common Stock
over the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately
preceding the date of announcement of such rights or warrants, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to be determined by the
Board of Directors.

     (c) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of its Common Stock shares of any class of Capital Stock of the Company, evidences of
its Indebtedness or other assets or property of the Company (including securities, but excluding
dividends and distributions covered by subsection (a), (b) or (d) of this Section 12.03 and
distributions described below in this subsection (c) with respect to Spin-Offs) (any of such
shares of Capital Stock, evidence of Indebtedness, or other asset or property hereinafter in this
subsection (c) called the “Distributed Property”), then, in each such case the Conversion Rate
shall be adjusted based on the following formula:

	 	 	 	 	 	 	 
	CR’

	 	=
	 	CR0 ×
	 	SP0
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	SP0 - FMV

85

 

where,

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

CR’ = the Conversion Rate in effect immediately after the open of business on
the Ex-Date for such distribution;

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

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

     Such adjustment shall become effective immediately after the open of business on the Ex-Date
for such distribution. If such distribution is not so paid or made, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared.

     Notwithstanding the foregoing, if “FMV” as set forth above is equal to or greater than
“SP0” as set forth above, in lieu of the foregoing adjustment, adequate provision shall
be made so that each Holder of Notes has the right to receive, for each $1,000 principal amount of
Notes, the amount of Distributed Property such holder would have received had such holder owned a
number of shares of Common Stock equal to the Conversion Rate on the Ex-Date for such
distribution, without being required to convert the Notes. If the Board of Directors determines
“FMV” for purposes of this Section 12.03(c) by reference to the actual or when issued trading
market for any securities, it must in doing so consider the prices in such market over the same
period used in computing the Last Reported Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the
Ex-Date for such distribution.

     With respect to an adjustment pursuant to this subsection (c) where there has been a
payment of a dividend or other distribution on the Common Stock or shares of Capital Stock of
any class or series, or similar equity interest, of or relating to a Subsidiary or other
business unit (a “Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New
York City time, on the 10th Trading Day immediately following, and including, the Ex-Date of the
Spin-Off shall be increased based on the following formula:

	 	 	 	 	 	 	 

	CR’

	 	=
	 	CR0 ×
	 	FMV0 + MP0
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	MP0

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Where,

CR0 = the Conversion Rate in effect immediately prior to the close of
business on the 10th Trading Day immediately following, and including, the Ex-Date for
the Spin-Off;

CR’ = the Conversion Rate in effect immediately after the close of business on the 10th
Trading Day immediately following, and including, the Ex-Date for the Spin-Off;

FMV0 = the average of the Last Reported Sale Prices of the capital stock or
similar equity interest distributed to holders of Common Stock applicable to one share of
Common Stock over the first 10 consecutive Trading Day period immediately following, and
including, the Ex-Date of the Spin-Off; and

MP0 = the average of the Last Reported Sale Prices of our common stock over
the first 10 consecutive Trading Day period immediately following, and including, the
Ex-Date for the Spin-Off.

     Such adjustment under the preceding paragraph will become effective at the close of business
on the 10th Trading Day from, and including, the Ex-Date of the Spin-Off; provided that in respect
of any conversion within the 10 Trading Days immediately following, and including, the Ex-Date of
any Spin-Off, references with respect to the Spin-Off to 10 Trading Days shall be deemed replaced
with such lesser number of Trading Days as have elapsed between the Ex-Date of such Spin-Off and
the Conversion Date in determining the applicable Conversion Rate. If the Ex-Date for the Spin-Off
is less than 10 Trading Days prior to, and including, the end of the Cash Settlement Averaging
Period in respect of any conversion, references with respect to 10 Trading Days shall be deemed
replaced, for purposes of calculating the affected daily Conversion Rates in respect of that
conversion with such lesser number of Trading Days as have elapsed from, and including, the Ex-Date
for such Spin-Off to, and including, the last Trading Day of such Cash Settlement Averaging Period.

     Rights or warrants distributed by the Company to all holders of Common Stock, entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital Stock, including
Common Stock (either initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with
such shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in respect of
future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this
Section 12.03 (and no adjustment to the Conversion Rate under this Section 12.03 shall be required)
until the occurrence

87

 

of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been
distributed and an appropriate adjustment (if any is required) to the Conversion Rate shall be made
under this subsection (c). If any such rights or warrants are subject to events, upon the
occurrence of which such rights or warrants become exercisable to purchase different securities,
evidences of Indebtedness or other assets, then the date of the occurrence of any and each such
event shall be deemed to be the date of distribution and record date with respect to new rights or
warrants with such rights (and a termination or expiration of the existing rights or warrants
without exercise by any of the holders thereof). In addition, in the event of any distribution (or
deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type
described in the preceding sentence) with respect thereto that was counted for purposes of
calculating a distribution amount for which an adjustment to the Conversion Rate under this Section
12.03 was made, (1) in the case of any such rights or warrants that shall all have been redeemed or
repurchased without exercise by any holders thereof, the Conversion Rate shall be readjusted upon
such final redemption or repurchase to give effect to such distribution or Trigger Event, as the
case may be, as though it were a cash distribution, equal to the per share redemption or repurchase
price received by a holder or holders of Common Stock with respect to such rights or warrants
(assuming such holder had retained such rights or warrants), made to all holders of Common Stock as
of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that
shall have expired or been terminated without exercise by any holders thereof, the Conversion Rate
shall be readjusted as if such rights and warrants had not been issued.

     For purposes of this subsection (c) and subsections (a) and (b) of this Section 12.03, any
dividend or distribution to which this subsection (c) is applicable that also includes shares of
Common Stock to which subsection (a) of this Section 12.03 applies or rights or warrants to
subscribe for or purchase shares of Common Stock to which subsection (a) or (b) of this Section
12.03 applies (or both), shall be deemed instead to be (1) a dividend or distribution of the
evidences of Indebtedness, assets or shares of capital stock other than such shares of Common Stock
or rights or warrants, to which this subsection (c) applies (and any Conversion Rate adjustment
required by this subsection (c) with respect to such dividend or distribution shall then be made)
immediately followed by (2) a dividend or distribution of such shares of Common Stock or such
rights or warrants (and any further Conversion Rate adjustment required by subsections (a) and (b)
of this Section 12.03 with respect to such dividend or distribution shall then be made), except (A)
the Ex-Date of such dividend or distribution shall under this subsection (c) be substituted as
“the Ex-Date” within the meaning of subsection (a) and subsection (b) and (B) any shares of Common
Stock included in such dividend or distribution shall not be deemed “outstanding immediately prior
to the Ex-Date for such dividend or distribution or immediately prior to the

88

 

effective date of such share split or combination, as the case may be” within the meaning
of subsection (a) or “outstanding immediately prior to the Ex-Date for such distribution” within
the meaning of subsection (b).

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

	 	 	 	 	 	 	 

	CR’

	 	=
	 	CR0 ×
	 	SP0
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	SP0 - C

where,

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

CR’ = the Conversion Rate in effect immediately after the open of business on
the Ex-Date for such distribution;

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

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

     Such adjustment shall become effective immediately after the opening of business on the
Ex-Date for such dividend or distribution. If such dividend or distribution is not so paid or made,
the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect
if such dividend or distribution had not been declared.

     Notwithstanding the foregoing, if “C” as set forth above is equal to or greater than
SP0 as set forth above, in lieu of the foregoing adjustment, adequate provision shall
be made so that each Holder of Notes shall receive on the date on which such cash dividend is
distributed to holders of Common Stock, for each $1,000 principal amount of Notes, the amount of
cash such holder would have received had such holder owned a number of shares equal to the
Conversion Rate immediately prior to the open of business on the Ex-Date for such distribution,
without being required to convert the Notes.

     For the avoidance of doubt, for purposes of this subsection (d), in the event of any
reclassification of the Common Stock, as a result of which the Notes become convertible into more
than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to
this subsection (d), references in this Section 12.03 to one share of Common Stock or Last Reported
Sale Price of

89

 

one share of Common Stock shall be deemed to refer to a unit or to the price of a unit
consisting of the number of shares of each class of Common Stock into which the Notes are then
convertible equal to the numbers of shares of such class issued in respect of one share of Common
Stock in such reclassification. The above provisions of this paragraph shall similarly apply to
successive reclassifications.

     (e) In case the Company or any of its Subsidiaries make a payment in respect of a tender
offer or exchange offer for all or any portion of the Common Stock, to the extent that the cash
and value of any other consideration included in the payment per share of Common Stock exceeds the
average of the Last Reported Sale Prices of the Common Stock over the 10 consecutive Trading Days
ending on, and including, the Trading Day next succeeding the last date on which tenders or
exchanges may be made pursuant to such tender or exchange offer (as it may be amended), the
Conversion Rate shall be increased based on the following formula:

	 	 	 	 	 	 	 

	CR’

	 	=
	 	CR0 ×
	 	AC + (SP’ × OS’)
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	OS0 × SP’

where,

CR0 = the Conversion Rate in effect immediately prior to the close of business
on the last Trading Day of the 10 consecutive Trading Day period commencing on, and
including, the Trading Day next succeeding the date such tender or exchange offer expires;

CR’ = the Conversion Rate in effect immediately after the close of business on the last
Trading Day of the 10 consecutive Trading Day period commencing on, and including, the
Trading Day next succeeding the date such tender or exchange offer expires;

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

OS0 = the number of shares of Common Stock outstanding immediately prior to
the date such tender or exchange offer expires (prior to giving effect to the purchase
of all shares of Common Stock accepted for purchase or exchange in such tender or
exchange offer);

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

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SP’ = the average of the Last Reported Sale Prices of the Common Stock over the
10 consecutive Trading Days ending on, and including, the Trading Day next succeeding
the date such tender or exchange offer expires.

     The increase to the Conversion Rate under the preceding paragraph will become effective at
the close of business on the 10th Trading Day immediately following, but excluding, the date such
tender or exchange offer expires; provided that, for purposes of determining the Conversion Rate,
in respect of any conversion during the 10 Trading Days immediately following, but excluding, the
date that any such tender or exchange offer expires, references within this clause
(e) to 10 consecutive Trading Days shall be deemed replaced with such lesser number of
consecutive Trading Days as have elapsed between the date such tender or exchange offer expires
and the relevant Conversion Date. If the Trading Day immediately following the date the tender or
exchange offer expires is less than 10 Trading Days prior to, and including, the end of the Cash
Settlement Averaging Period in respect of any conversion, references to 10 Trading Days shall be
deemed replaced, for purposes of calculating the affected daily Conversion Rates in respect of
that conversion, with such lesser number of Trading Days as have elapsed from, and including, the
Trading Day immediately following the date such tender or exchange offer expires to, and
including, the last Trading Day of such Cash Settlement Averaging Period. Such adjustment shall
become effective immediately after close of business on the 10th Trading Day immediately
following, but excluding, the date such tender or exchange offer expires. If the Company or its
Subsidiary is obligated to purchase shares of Common Stock pursuant to any such tender or
exchange offer, but the Company or its Subsidiary is permanently prevented by applicable law from
effecting all or any such purchases or all or any portion of such purchases are rescinded, the
Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if
such tender or exchange offer had not been made or had only been made in respect of the purchases
that had been effected.

     No adjustment to the Conversion Rate shall be made if the application of any of the foregoing
formulas (other than in connection with a share combination) would result in a decrease in the
Conversion Rate. Notwithstanding the foregoing, if a Conversion Rate adjustment becomes effective
on any Ex-Date, and a Holder that has converted its Notes on or after such Ex-Date and on or prior
to the related record date (as defined below) would be treated as the record holder of the Common
Stock as of the related Conversion Date based on an adjusted Conversion Rate for such Ex-Date,
then, notwithstanding the Conversion Rate adjustment provisions in this Section 12.03, the
Conversion Rate adjustment relating to such Ex-Date shall not be made for such converting Holder.
Instead, such Holder shall be treated as if such Holder were the record owner of the shares

91

 

of Common Stock on an unadjusted basis and participate in the related dividend,
distribution or other event giving rise to such adjustment.

     For purposes of this Section 12.03 the term “record date” shall mean, with respect to any
dividend, distribution or other transaction or event in which the holders of Common Stock have
the right to receive any cash, securities or other property or in which the Common Stock (or
other applicable security) is exchanged for or converted into any combination of cash, securities
or other property, the date fixed for determination of shareholders entitled to receive such
cash, securities or other property (whether such date is fixed by the Board of Directors or by
statute, contract or otherwise).

     (f) In addition to those required by subsections (a), (b), (c), (d) and (e) of this Section
12.03, and to the extent permitted by applicable law and the rules of the Nasdaq Global Select
Market and any other securities exchange on which the Common Stock is then listed, the Company from
time to time may increase the Conversion Rate by any amount for a period of at least 20 calendar
days if the Board of Directors determines that such increase would be in the Company’s best
interest. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company
shall notify the Holder of each Note (which notification may be made through a notice to DTC) and
issue a Press Release on the increase at least 15 calendar days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect. In addition, the Company may also (but is not required
to) increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or
rights to purchase Common Stock in connection with any dividend or distribution of shares (or
rights to acquire shares) or similar event. The Company shall not increase the Conversion Rate
pursuant to this (f) if such an increase would require stockholder approval under NASDAQ rules and
regulations in effect at the time of increase, unless the Company’s stockholders shall have duly
approved such increase.

     (g) Without limiting the foregoing, no adjustment to the Conversion Rate need be made

     (i) upon the issuance of any shares of Common Stock pursuant to any present or
future plan providing for the reinvestment of dividends or interest payable on securities
of the Company and the investment of additional optional amounts in shares of Common
Stock under any plan;

     (ii) upon the issuance of any shares of Common Stock or options or rights to
purchase shares of Common Stock pursuant to any present or future employee, director or
consultant benefit plan or program or employee stock purchase plan of or assumed by the
Company or any of its Subsidiaries;

92

 

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

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

     (v) for accrued and unpaid Interest (including any Additional
Interest).

     (h) All calculations and other determinations under this Article 12 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000)
of a share, as the case may be. No adjustment shall be made for the Company’s issuance of
Common Stock or convertible or exchangeable securities or rights to purchase Common Stock or
convertible or exchangeable securities, other than as provided in this
Section 12.03. No adjustment shall be made to the Conversion Rate unless such adjustment
would require a change of at least 1% in the Conversion Rate then in effect at such time. The
Company shall carry forward any adjustments that are less than 1% of the Conversion Rate and make
such carried forward adjustments, regardless of whether the aggregate adjustment is less than 1%
(1) annually, on the anniversary of the date of this Indenture, (2) upon a Designated Event or
(3) on the Maturity Date (and on each Trading Day of the Cash Settlement Averaging Period
beginning on the 27th Scheduled Trading Day prior to the Maturity Date).

     (i) In any case in which this Section 12.03 provides that an adjustment shall become
effective immediately after (1) the Ex-Date for an event or (2) the last date on which tenders or
exchanges may be made pursuant to any tender or exchange offer pursuant to subsection (e) of this
Section 12.03 (each an “Adjustment Determination Date”), the Company may elect to defer until the
occurrence of the applicable Adjustment Event (as hereinafter defined) (x) issuing to the Holder
of any Note converted after such Adjustment Determination Date and before the occurrence of such
Adjustment Event, the additional cash and, if applicable, shares of Common Stock or other
securities issuable upon such conversion by reason of the adjustment required by such Adjustment
Event over and above the amounts deliverable upon such conversion before giving effect to such
adjustment and (y) paying to such Holder any amount in cash in lieu of any fraction pursuant to
Section 12.02(f). For purposes of this subsection (i), the term “Adjustment Event” shall mean:

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

93

 

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

     (j) For purposes of this Section 12.03, the number of shares of Common Stock at any
time outstanding shall not include shares held in the treasury of the Company but shall
include shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock.

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

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

     (m) Whenever any provision of this Article 12 requires a calculation of Last Reported Sale
Prices, Daily VWAP, the Daily Conversion Values or the Daily Settlement Amounts over a span of
multiple days (including any Cash Settlement Averaging Period), the Company shall make appropriate
adjustments to each such amounts (determined in good faith by the Board of Directors) to account
for any adjustment to the Conversion Rate that becomes effective, or any event requiring an
adjustment to the Conversion Rate where the Ex-Date of the event occurs, at any time during the
period from which such calculation is to be calculated; provided that such adjustments shall only
be made to the Daily Settlement Amounts relating to days prior to the date that the adjustment to
the Conversion Rate becomes effective.

94

 

     SECTION 12.04 Notice of Adjustments of Conversion Rate.

     Whenever the Conversion Rate is adjusted as herein provided:

     (a) the Company shall compute the adjusted Conversion Rate in accordance with Section 12.03
and shall prepare a certificate signed by the Chief Financial Officer of the Company setting forth
the adjusted Conversion Rate and showing in reasonable detail the facts upon which such adjustment
is based, and such certificate shall promptly be filed with the Trustee and with each Conversion
Agent (if other than the Trustee); and

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

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

     SECTION 12.05 Company to Reserve Common Stock.

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

     SECTION 12.06 Taxes on Conversions.

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

95

 

     SECTION 12.07 Certain Covenants.

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

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

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

	 	 	SECTION 12.08 Cancellation of Converted Notes.

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

     SECTION 12.09 Provision in Case of Effect of Reclassification, Consolidation,
Merger or Sale.

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

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

96

 

practicable to the adjustments provided for in this Article 12 and the Trustee may
conclusively rely on the determination by the Company of the equivalency of such adjustments. If,
in the case of any Merger Event, the Reference Property includes shares of stock or other
securities and assets of a company other than the successor or purchasing company, as the case may
be, in such reclassification, change of control, consolidation, merger, combination, sale or
conveyance, then such supplemental indenture shall also be executed by such other company and
shall contain such additional provisions to protect the interests of the Holders of the Notes as
the Board of Directors shall reasonably consider necessary by reason of the foregoing, including
to the extent required by the Board of Directors and practicable the provisions providing for the
repurchase rights set forth in
Article 11.

     In the event a supplemental indenture is executed pursuant to this Section 12.09, the
Company shall promptly file with the Trustee an Officers’ Certificate briefly stating the reasons
therefore, the kind or amount of cash, securities or property or assets that will constitute the
Reference Property after any such Merger Event, any adjustment to be made with respect thereto
and that all conditions precedent have been complied with, and shall promptly mail notice thereof
to all Holders.

     If any securities to be provided for the purpose of conversion of Notes hereunder require
registration with or approval of any governmental authority under any federal or state law before
such securities may be validly issued upon conversion, each supplemental indenture executed
pursuant to this Section 12.09 shall provide that the Company or the successor or the purchasing
Person, as the case may be, or if the Reference Property includes shares of stock or other
securities and assets of a company other than the successor or purchasing company, as the case may
be, then such company, shall use all commercially reasonable efforts, to the extent then permitted
by the rules and interpretations of the Commission (or any successor thereto), to secure such
registration or approval in connection with the conversion of Notes.

     (b) Notwithstanding the provisions of Section 12.02(a) and
Section 12.02(b), and subject to the provisions of Section 12.01, at the effective time of such
Merger Event, the right to convert each $1,000 principal amount of Notes shall be changed, subject
to the Company’s right to settle its Conversion Obligation with respect to such Notes in cash, to
a right to convert such Notes by reference to the kind and amount of cash, securities or other
property or assets that a holder of a number of shares of Common Stock equal to the Conversion
Rate immediately prior to such transaction would have owned or been entitled to receive (the
“Reference Property”) such that from and after the effective time of such transaction, a Holder
shall be entitled thereafter to convert its Notes into the same type (and in the same proportion)
of Reference Property, based on the Daily

97

 

Settlement Amounts of Reference Property in an amount equal to the applicable Conversion
Rate, as described under Section 12.02(a). For purposes of determining the constitution of
Reference Property, the type and amount of consideration that a holder of Common Stock would have
been entitled to in the case of reclassifications, consolidations, mergers, sales or conveyance of
assets or other transactions that cause the Common Stock to be converted into the right to receive
more than a single type of consideration (determined based in part upon any form of stockholder
election) shall be deemed to be the (i) weighted average of the types and amounts of consideration
received by the holders of Common Stock that affirmatively make such an election or (ii) if no
holders of Common Stock affirmatively make such election, the types and amounts of consideration
actually received by such holders. The Company shall not become a party to any such transaction
unless its terms are consistent with the preceding. None of the foregoing provisions shall affect
the right of a holder of Notes to convert its Notes in accordance with the provisions of this
Article 12 prior to the effective date.

     (c) The Company shall cause notice of the execution of such supplemental indenture to be
mailed to each Holder, at his address appearing on the Register provided for in this Indenture,
within 20 calendar days after execution thereof. Failure to deliver such notice shall not
affect the legality or validity of such supplemental indenture.

     (d) The above provisions of this Section 12.09 shall similarly apply to successive Merger
Events.

     SECTION 12.10 Exchange in Lieu of Conversion.

     (a) If a Holder surrenders Notes for conversion, then, notwithstanding anything herein to
the contrary, the Company may, on or prior to the second Business Day following the Conversion
Date applicable to such Notes, direct the Conversion Agent to surrender such Notes to a
designated financial institution (a “Designated Institution”) for exchange in lieu of conversion.

     If the Company directs the Conversion Agent to surrender such Notes to the Designated
Institution for exchange in lieu of conversion, by the close of business on the second Business Day
immediately following the Conversion Date, the Company will deliver written notice of such exchange
in lieu of conversion to the converting Holder and such Designated Institution will be required to
notify the Conversion Agent whether it will deliver, upon exchange, shares of Common Stock, cash or
a specified combination thereof.

     (b) If the Designated Institution accepts Notes surrendered for exchange in lieu of
conversion, it shall deliver cash, shares of Common Stock or a combination thereof, together with
any cash or additional share in lieu of fractional shares that the Company would otherwise be
obligated to deliver in

98

 

accordance with Section 12.02, to the Conversion Agent and the Conversion Agent shall
deliver such amounts to the Holder, on the date the Company would be required to make such
delivery pursuant to Section 12.02 but for this Section 12.10, which delivery shall be deemed to
satisfy the Company’s
conversion obligations under this Article 12 with respect to such conversion. Any Notes so
exchanged by such Designated Institution shall remain outstanding for all purposes under this
Indenture.

     (c) If the Designated Institution agrees to accept any Notes for exchange in lieu of
conversion but does not timely deliver the related consideration to the Conversion Agent, or if
the Designated Institution does not accept such Notes for exchange, the Company shall deliver
cash, shares of Common Stock or a combination thereof, and make such delivery on such date that
the Company would be required to pursuant to Section 12.02 but for this Section 12.10.

     (d) For the avoidance of doubt, in no event will the Company’s designation of a financial
institution pursuant to this Section 12.10 require such Designated Institution to accept any Notes
for exchange in lieu of conversion, and in no event will the Company be obligated to pay any
consideration to, or otherwise enter into any agreement with, the Designated Institution for or
with respect to such designation.

     SECTION 12.11 Responsibility of Trustee for Conversion Provisions.

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

      

99

 

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

100

 

SCHEDULE A

     The following table sets forth the “Stock Price,” “Effective Date” and
number of Additional Shares by which the Conversion Rate for the 0.25%
Convertible Senior Notes due 2016 shall be increased in the event of a
Fundamental Change, in accordance with the Indenture:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective Date	 	$64.27	 	$70.00	 	$75.00	 	$80.00	 	$90.00	 	$100.00	 	$110.00	 	$130.00	 	$150.00	 	$175.00	 	$200.00	 	$250.00
	March 18, 2011
	 	 	3.5907	 	 	 	2.8898	 	 	 	2.4039	 	 	 	2.0086	 	 	 	1.4188	 	 	 	1.0148	 	 	 	0.7331	 	 	 	0.3901	 	 	 	0.2099	 	 	 	0.0949	 	 	 	0.0400	 	 	 	0.0032	 
	March 15, 2012
	 	 	3.5907	 	 	 	3.0018	 	 	 	2.4723	 	 	 	2.0437	 	 	 	1.4103	 	 	 	0.9835	 	 	 	0.6917	 	 	 	0.3474	 	 	 	0.1753	 	 	 	0.0720	 	 	 	0.0265	 	 	 	0.0006	 
	March 15, 2013
	 	 	3.5907	 	 	 	3.0367	 	 	 	2.4630	 	 	 	2.0023	 	 	 	1.3318	 	 	 	0.8916	 	 	 	0.6001	 	 	 	0.2735	 	 	 	0.1235	 	 	 	0.0423	 	 	 	0.0115	 	 	 	—	 
	March 15, 2014
	 	 	3.5907	 	 	 	2.9537	 	 	 	2.3338	 	 	 	1.8426	 	 	 	1.1468	 	 	 	0.7119	 	 	 	0.4407	 	 	 	0.1661	 	 	 	0.0595	 	 	 	0.0130	 	 	 	0.0010	 	 	 	—	 
	March 15, 2015
	 	 	3.5907	 	 	 	2.6874	 	 	 	2.0076	 	 	 	1.4836	 	 	 	0.7867	 	 	 	0.4024	 	 	 	0.1992	 	 	 	0.0433	 	 	 	0.0068	 	 	 	—	 	 	 	—	 	 	 	—	 
	March 15, 2016
	 	 	3.5907	 	 	 	2.3170	 	 	 	1.3646	 	 	 	0.5313	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—exv10w1

Exhibit 10.1

PLATINUM AND PALLADIUM SALES AGREEMENT

     THIS PLATINUM AND PALLADIUM SALES AGREEMENT (this “Agreement”) is
made and entered into this ______day of January, 2011, to be effective as of January 1, 2011 (the
“Effective Date”), by and between STILLWATER MINING COMPANY, a Delaware corporation, whose address
is 1321 Discovery Drive, Billings, Montana 59102 (“SMC”), and FORD MOTOR COMPANY, a Delaware
corporation, whose address is 17101 Rotunda Drive, Dearborn, Michigan (“Ford”).

RECITAL

     A. SMC and Ford are parties to a Palladium and Platinum Sales Agreement dated as of August 13,
1998 (as amended by the First Amendment Agreement dated as of October 27, 2000; by the Second
Amendment Agreement dated as of March 27, 2001; by the Third Amendment Agreement dated as of March
13, 2002; by the Fourth Amendment Agreement dated as of February 20, 2003, and the Fifth Amendment
Agreement, dated as of May 4, 2004, and, as the same may be amended from time to time, the
“Existing Agreement”), whereby SMC supplies Ford certain agreed upon amounts of platinum and
palladium sponge, .9995% minimum purity;

     B. The Existing Agreement expired by its terms on December 31, 2010; and

     C. Ford and SMC are interested in entering into a new agreement for the purchase
and sale of platinum and palladium following the expiration of the Existing Agreement, to be
effective as of the Effective Date.

AGREEMENT

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, SMC hereby agrees to sell and deliver and Ford hereby agrees to purchase
platinum and palladium of the quantity and quality hereinafter set forth, upon the following terms
and conditions:

     Section 1. Definitions and Terminology. Unless the context indicates otherwise,
capitalized terms used in this Agreement have the meaning set forth in this Section 1.

     Business Day means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which United States banking institutions are authorized or obligated by law or executive order to
close.

     Delivery Date means the 20th day of each month during the term of this Agreement,
or, if such day is not a Business Day, the next Business Day.

	 	 	Delivery Point means Ford’s pool account at Johnson Matthey USA.

	 	 	Existing Agreement shall have the meaning set forth in Recital A.

 

 

     London AM Fix Monthly Average means the average of the London AM Fix for Palladium and
Platinum, as the context requires, for the Pricing Days within a given calendar month.

     London AM Fix means the London Platinum & Palladium Market (LPPM) Fixings published at 9:45 am
(London time) for Platinum and Palladium, as the context requires, as published in Plattes Metals
Week.

	 	 	Metal means the Platinum and/or Palladium to be sold under this Agreement.

	 	 	Ounce is a troy ounce equivalent to 31.1035 grams.

	 	 	Palladium means refined palladium in sponge form with .9995% minimum purity.

	 	 	Platinum means refined platinum in sponge form with .9995% minimum purity.

     Pricing Day means any day on which the London Platinum & Palladium Market publishes a 9:45 am
(London time) price for Palladium and Platinum.

     Pricing Month means the month prior to the month of delivery during which pricing is
determined pursuant to Section 4 of this Agreement.

     Section 2. Term. This Agreement shall have a term of one (1) year from January 1,
2011, through and including December 31, 2011. This Agreement is subject to earlier termination
pursuant to Section 9 of this Agreement and extension pursuant to Section 15. Unless this Agreement
is extended pursuant to Section 15 hereof, this Agreement will terminate on December 31, 2011
(except that the provisions of Sections 5, 8, 10, 11, 12, 13, 16, 17, 19, 20, 24, 25, 26, 27, 28,
29 and 30 of this Agreement will survive such termination).

     Section 3. Quantity and Delivery. Beginning on January 20, 2011, SMC will sell and
deliver Metal FOB Delivery Point, to be credited to Ford’s pool account, and Ford will purchase the
following quantities of Metal each month, which will be released to the Delivery Point on or before
the Delivery Date:

          (a)
Palladium. Ford will purchase  Ounces of Palladium on a monthly basis for each of
the 12 months during the term.

          (b)
Platinum. Ford will purchase (i)  of Platinum in January 2011, (ii) 450 Ounces of
Platinum in February 2011,
(iii)  Ounces of Platinum in March 2011, (iv)  Ounces of Platinum in April
2011, and
(v)   of Platinum per month for each of the remaining eight months during the term.

          (c) Notification. Not later than the last Business Day of the month preceding the
Pricing Month, Ford will notify SMC via email of the Quantity of Metal to be priced during the next
month, i.e., the Pricing Month, and delivered on the Delivery Date of the month following the
Pricing Month.

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     Section 4. Pricing. The price per Ounce to be paid to SMC by Ford for the quantities
of Palladium and Platinum delivered pursuant to Section 3 above shall be as follows:

          (a)
Palladium. The London AM Fix Monthly Average for Palladium for
the Pricing Month
 
per Ounce if the London AM Fix Monthly Average for Palladium is less than  per Ounce or (ii)   per
Ounce if the London AM Fix Monthly Average for Palladium is greater
than or equal to   per Ounce.

          (b)
Platinum. The London AM Fix Monthly Average for Platinum for the Pricing   per Ounce
if the London AM Fix Monthly Average for Platinum is less than
 
per Ounce or (ii) a discount of   per
Ounce if the London AM Fix Monthly Average for Platinum is greater
than or equal to   per Ounce.

     Section 5. Payment Terms. Within five (5) Business Days after the end of each Pricing
Month (i.e., the fifth Business Day of a month of delivery), SMC will notify Ford in writing via
email as to the formula-based pricing computations set forth in Section 4 above for the Metal to be
delivered by SMC pursuant to this Agreement during the month. The first of such notices will be due
by January 7, 2011. Ford will forward such payment amount for 100% of the quantities received by
wire transfer to SMC (pursuant to written wire transfer instructions which will be provided by SMC)
within two (2) Business Days after delivery of the Metals by SMC to the Delivery Point. Since
January 2011 is the first month of delivery, the first payment will be due to SMC on or before
January 24, 2011. All payments will be made in U.S. Dollars. If Ford does not agree with SMC’s
formula-based pricing computations, Ford will nonetheless forward the payment specified in SMC’s
formula-based pricing computations and seek resolution of such dispute as to the calculation of the
payment amount pursuant to the dispute resolution procedures set forth in Section 16 below. Without
derogating SMC’s rights under this Agreement, any delay in payment by Ford to SMC shall bear
interest calculated at the Prime Rate of interest published in the “Money Rates” table of The Wall
Street Journal on the date such payment was due plus 3% (or, if less, the maximum rate permitted by
applicable law) from the date upon which payment was due until the date full payment is received.

     Section 6. Suspension of Delivery for Failure to Pay. Ten (10) days after receipt by
Ford of written notice from SMC to Ford of Ford’s failure to pay pursuant to the terms of Section 5
above, SMC may suspend delivery of Metal to Ford until such time as payment has been received by
SMC. This right shall not be deemed to be an exclusive right or remedy.

     Section 7. Risk of Loss: Title. Title and risk of loss for all Metal delivered
hereunder shall pass to Ford upon delivery to the Delivery Point.

     Section 8. Warranty. SMC warrants that the Metal supplied hereunder shall have a
minimum purity of .9995%, that SMC will convey good title thereto, and that the Metal will be
delivered free and clear of all liens and encumbrances created by SMC. In respect of Metal supplied
by release from SMC’s pool account to Ford’s pool account, the parties agree that such Metal shall
be deemed to have a minimum purity of .9995%. OTHER THAN THOSE
EXPRESSLY STATED IN THIS SECTION 8,
THERE ARE NO REPRESENTATIONS, GUARANTEES OR WARRANTIES, EXPRESSED OR IMPLIED, OF ANY KIND, WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING, SMC EXPRESSLY

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DISCLAIMS ANY WARRANTY OF MERCHANTABILITY, FITNESS, OR SUITABILITY FOR A PARTICULAR PURPOSE OR USE,
NOTWITHSTANDING ANY COURSE OF PERFORMANCE, USAGE OF TRADE OR LACK THEREOF INCONSISTENT WITH THIS
SECTION. SMC’S SOLE LIABILITY FOR BREACH OF WARRANTY SHALL BE LIMITED TO REPLACEMENT OF THE
NONCONFORMING METAL.

     Section 9. Default and Termination. Either party shall be entitled to terminate this
Agreement in the event of (i) the other party generally not paying its debts as such debts become
due, or admitting in writing its inability to pay its debts generally or making a general
assignment for the benefit of creditors, the appointment of a receiver for the other party or a
substantial part of its assets, the filing by the other party of a voluntary petition in bankruptcy
or any form of reorganization, or the filing of an involuntary petition in bankruptcy against the
other party which is not dismissed with prejudice within 60 days of such filing, or the making of
an assignment for the benefit of creditors of the other party; or (ii) a breach by the other party
of any of the material terms or conditions of this Agreement, which breach is not cured within ten
(10) days of notice of such breach by the non-breaching party. SMC shall be entitled to terminate
this Agreement in the event Ford does any of the following: (i) acquire, or agree, offer or propose
to acquire, directly or indirectly, from SMC or any other person, any business or assets of, or
securities issued by, SMC or any subsidiary of SMC, or any or any right, warrant or option to
acquire any of the foregoing; (ii) propose to enter into, directly or indirectly, any merger or
business combination involving SMC or any of its subsidiaries; (iii) make any proposal or request
to SMC or any of its officers or directors relating, directly or indirectly, to any action referred
to in clause (i) or (ii) of this paragraph or to any modification or waiver of any provision of
this Section 9; (iv) make or participate in, directly or indirectly, any “solicitation” of
“proxies” (as those terms are used in the proxy rules of the Securities and Exchange Commission) to
vote or seek to advise or influence any person with respect to the voting of any voting securities
of SMC or any of its subsidiaries; (v) form, join or in any way participate in a “group” (within
the meaning of Section 13(d)(3) under the Securities Exchange Act of 1934, as amended) with respect
to any voting securities of SMC or any of its subsidiaries; (vi) act alone or in concert with
others to seek to control or influence the management, Board of Directors or policies of SMC; (vii)
advise, assist or enter into any discussions, negotiations, arrangements or understandings with any
other person with respect to any of the foregoing; or (viii) make any public statement or
disclosure of any kind with respect to any matter addressed by this paragraph (unless required by
law) or take any other action which might reasonably be expected to result in any such public
disclosure.

     Section 10. Taxes and Assessments. Ford shall be responsible for, and shall upon
demand of SMC pay or reimburse SMC for, the payment of all taxes, duties, levies, and fees imposed
by any governmental authority in any jurisdiction in connection with the transactions contemplated
by this Agreement including, but not limited to, sales, use, gross receipts, compensating,
privilege, excise, transfer, value added, manufacturers, environmental, product and similar taxes
(any such tax, a “Transaction Tax”) but excluding any taxes imposed on SMC’s net income.
Notwithstanding the foregoing, any personal property taxes assessed with respect to the Metal by
any governmental authority shall be the responsibility of and shall be paid by the party having
title to the Metal at the time of assessment. In the event that Ford claims an exemption from any
Transaction Tax and any governmental authority conducts or threatens an

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audit, litigation or other proceeding with respect to such claimed exemption (a “Tax
Controversy”), Ford agrees to indemnify and hold SMC harmless against any losses, claims, damages,
liabilities or actions arising, directly or indirectly, from such Tax Controversy including, but
not limited to, any penalties, additions to tax, or interest imposed with respect to such
Transaction Tax and any legal or other professional fees incurred by SMC in connection with the
conduct or defense of such Tax Controversy.

     Section 11. Claims. Claims as to shortage in quantity and deficiency in quality shall
be made by written notice from Ford to SMC within five (5) Business Days after the delivery in
question, or else any such claims shall be deemed to have been waived. All other claims by Ford
shall be made by written notice from Ford to SMC within 60 days after the delivery of the Metal in
question, or else any such claims shall be deemed to have been waived. EXCEPT AS OTHERWISE
SPECIFICALLY PROVIDED IN THIS AGREEMENT, NO CLAIMS WHATSOEVER SHALL BE MADE HEREUNDER FOR SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES.

     Section 12. Limitation of Liability. SMC shall not be liable for any prospective or
speculative profits or special, indirect, consequential, punitive or exemplary damages, and SMC’s
liability with respect to this Agreement or any action in connection herewith whether in contract,
tort, or otherwise shall not exceed the price of that portion of the Metal on which liability is
asserted.

     Section 13. Indemnification. Ford agrees to indemnify and hold SMC harmless against
any losses, claim, damages, liabilities or actions arising, directly or indirectly, from or in
connection with this Agreement and will reimburse SMC on a monthly basis for any legal or other
expenses reasonably incurred by it in connection with investigating or defending against such loss,
claim, damage, liability or action.

     Section 14. Compliance with Laws. To the extent applicable, the parties agree to
comply in all material respects with all laws, ordinances, rules, codes, regulations and lawful
orders of any federal, state or local governmental authority applicable to performance of this
Agreement.

	 	 	Section 15. Force Majeure.

          (a) Effect of Occurrence. In the event that either party is rendered unable, wholly or
in part, by force majeure applying to it, to carry out its obligations under this Agreement, it is
agreed that such obligations of such party, so far as they are affected by such force majeure,
shall be suspended during the continuance of any inability so caused, but for no longer period;
provided that Ford shall not be excused by any event of force majeure from making timely payments
for Metal delivered prior to the effective date of the notice of force majeure. The parties agree
that the various periods and terms provided for herein shall be extended for a period equivalent to
such period of force majeure. The party claiming that an event of force majeure has occurred will
promptly notify the other party of the commencement and termination of any event of force majeure.
Prompt notice of force majeure shall be given by the party invoking it to the other party, setting
out the nature and full details thereof, the extent of the interruption and the anticipated
duration of the interruption.

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          (b) Definition. The term “force majeure” as employed herein, shall mean causes beyond
the reasonable control of a party, including, but not limited to, acts of God, explosions, fires,
floods, breakdowns or damage to mine(s) or related equipment or facilities, failure of plant or
equipment to operate according to plans or specifications, war or warlike hostilities, riots,
strikes, labor disputes, lockouts, unavoidable accidents, uncontrollable delays in transportation,
non-availability of any means of transportation, any state or federal laws, regulations or
requirements (expressly including inability to obtain necessary governmental approvals, licenses or
permits on reasonably acceptable terms), geological, technical, metallurgical, mining, construction
or processing problems, non-availability of supplies, court orders, acts of military authority,
acts or failures to act of federal, state or local agencies or regulatory bodies and inability to
obtain timely refining of appropriate quantity of materials necessary to produce the required
amounts of Metal; provided, however, that performance shall be resumed within a reasonable period
of time after such cause has been removed; and provided further that neither party shall be
required against its will to adjust any labor dispute or to question the validity of or to refrain
from judicially testing the validity of any federal, state or local order, regulation or statute or
to refrain from pursuing its legal or equitable remedies against any third party. Notwithstanding
the foregoing, the parties agree that this Section 15 is not intended to provide relief from
economic conditions such as, but not limited to, market situations that provide lower or higher
prices than in effect under this Agreement.

     Section 16. Dispute Resolution. Except as otherwise provided in this Agreement, the
parties hereby agree that any dispute, controversy or claim arising under this Agreement, or the
breach thereof (a “Dispute”), shall first be subject to the informal dispute resolution procedures
set forth in this Section 16. The party asserting the existence of a Dispute as to the
interpretation of any provision of this Agreement or the performance by the other party of any of
its obligations hereunder shall notify the other party in writing of the nature of the asserted
Dispute. Within ten (10) Business Days of receipt of such notice, representatives from each party
shall arrange and have a personal or telephone conference in which they attempt to resolve such
Dispute. If those individuals are unable to resolve the Dispute within such time frame, either
party may resort to mediation, arbitration, litigation, or some other dispute resolution procedure.

     Section 17. Representations and Warranties. Each of the parties represents and
warrants as follows:

          (a) Good Standing. It is a corporation duly incorporated and in good standing in its
state of incorporation and that it is qualified to do business and is in good standing in those
states where necessary in order to carry out the purposes of this Agreement;

          (b) Performance. It has the corporate capacity to enter into and perform this
Agreement and all transactions contemplated herein and that all corporate and other actions
required to authorize it to enter into and perform this Agreement have been properly taken;

          (c) No Breach. It will not breach any other agreement or arrangement by entering into
or performing this Agreement; and

          (d) Due Execution and Delivery. This Agreement has been duly executed and delivered by
it and is valid and binding upon it and enforceable against it in accordance with its

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terms; provided, however, that no representation or warranty is made as to the remedy of
specific performance or other equitable remedies for the enforcement of this Agreement or any other
agreement contemplated hereby, and provided further that this representation is limited by
applicable bankruptcy, insolvency, moratorium, and other similar laws affecting generally the
rights and remedies of creditors and secured parties.

     Section 18. Notices. Any notice, election, report or other correspondence
(collectively, “Notices”) required or permitted hereunder shall be in writing and (i) delivered
personally to an officer of the party to whom directed; (ii) sent by registered or certified United
States mail, postage prepaid, return receipt requested; (iii) sent by reputable overnight courier;
or (iv) sent by facsimile transmission with confirmation of receipt. All such Notices shall be
addressed to the party to whom directed as follows:

	 	 	 

	SMC:

	 	Stillwater Mining Company
	 

	 	1321 Discovery Drive

 Billings, Montana 59102
	 

	 	Attn: Vice President of Metals Marketing
	 

	 	Facsimile: (406) 373-8723 

With a copy to: General Counsel
	 

	 	Facsimile: (406) 373-8723
	 
	 	 
	Ford:

	 	Ford Motor Company
	 

	 	15700 Lundy Drive, Suite 203
	 

	 	Dearborn, Michigan 48126 

Attn:
	 

	 	Facsimile: 
With a copy to:
	 

	 	Facsimile:

Either party may, from time to time, change its address for future Notices hereunder by Notice in
accordance with this Section 18. All Notices shall be complete and deemed to have been given or
made (i) when delivered personally to an officer of the party to whom delivered, (ii) within three
(3) Business Days of when sent if sent via registered or certified United States mail; (iii) when
sent if sent by reputable overnight courier, or (iv) when receipt is confirmed if sent by facsimile
transmission.

     Section 19. Confidentiality. Each party will treat all information, documents and
other materials provided by the other party hereunder as confidential and proprietary information
of the disclosing party, and the receiving party agrees to maintain in confidence all such
information and will not divulge such information in whole or in part to any third party other than
its legal and financial advisors or except as required by law or regulation. In addition, each
party will treat the pricing discount provided in Section 4 as confidential and will not divulge
such information to any third party other than its legal and financial advisors or except as
required by law or regulation.

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     Section 20. Entire Agreement. This Agreement represents the complete agreement between
the parties hereto and supersedes all prior or contemporaneous oral or written agreements of the
parties to the extent they relate in any way to the subject matter hereof.

     Section 21. Relationship of the Parties. Nothing contained in this Agreement shall be
deemed to constitute either party the partner of the other, nor, except as otherwise herein
expressly provided, to constitute either party the agent or legal representative of the other, nor
to create any fiduciary relationship between them. It is not the intention of the parties to
create, nor shall this Agreement be construed to create, any mining, commercial or other
partnership. Neither party shall have any authority to act for or to assume any obligation or
responsibility on behalf of the other party, except as otherwise expressly provided herein. The
rights, duties, obligations and liabilities of the parties shall be several and not joint or
collective. Each party shall be responsible only for its obligations as herein set out. Each party
shall indemnify, defend and hold harmless the other party, its directors, officers, stockholders,
affiliates, employees, agents and attorneys from and against any and all losses, claims, damages
and liabilities arising out of any act or any assumption of liability by the indemnifying party, or
any of its directors, officers, employees, agents and attorneys done or undertaken, or apparently
done or undertaken, on behalf of the other party, except pursuant to the authority expressly
granted herein or as otherwise agreed in writing between the parties.

     Section 22. No Implied Covenants. There are no implied covenants contained in this
Agreement other than those of good faith and fair dealing.

     Section 23. Binding Effect; No Assignment. This Agreement shall bind and inure to the
benefit of, and be enforceable by, the parties hereto and may not be assigned by either party
without the consent of the other party, which consent shall not be unreasonably withheld,
except that the consent of the other party shall not be required for (i) any assignment by
SMC to provide security in connection with any financing, or (ii) any merger, consolidation or
other reorganization or transfer by operation of law, or by purchase of the business of or
substantially all of the assets of one of the parties.

     Section 24. Amendment and Waiver. Except as otherwise provided herein, no
modification, amendment or waiver of any provision of this Agreement shall be effective against
either party unless such modification, amendment or waiver is approved in writing by the parties
hereto. The failure by either party to demand strict performance and compliance with any part of
this Agreement during the term of this Agreement shall not be deemed to be a waiver of the rights
of such party under this Agreement or by operation of law. Any waiver by either party of a breach
of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent
breach thereof.

     Section 25. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect the validity, legality or enforceability of any other provision of this Agreement in
such jurisdiction or affect the validity, legality or enforceability of any provision in any other

-8-

 

jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as
if such invalid, illegal or unenforceable provision had never been contained herein.

     Section 26. Governing Law. The parties to this Agreement are domiciled in two
different states. In order to create greater certainty with respect to their legal rights and
obligations under this Agreement, the parties desire to adopt as the substantive law of this
Agreement the laws of the State of New York as though this Agreement were performed in full in the
State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of New York.

     Section 27. Construction. The parties agree that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not be applied in the
construction or interpretation of this Agreement. The parties acknowledge that each of them has had
the benefit of legal counsel of its own choice and has been afforded an opportunity to review this
Agreement with its legal counsel and that this Agreement shall be construed as if jointly drafted
by SMC and Ford.

     Section 28. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

     Section 29. Attorneys’ Fees. In the event of any controversy, claim, or dispute
between the parties hereto, arising out of or relating to this Agreement or the breach thereof, the
prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys’
fees, and costs.

     Section 30. Further Documents. At the request of either party, the parties shall
execute and deliver any further instruments, agreements, documents or other papers reasonably
requested by that party to effect the purposes of this Agreement and the transactions contemplated
hereby.

[SIGNATURES FOLLOW ON THE NEXT PAGE.]

-9-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective Date.

	 	 	 	 	 	 	 	 

	 
	STILLWATER MINING COMPANY	 	FORD MOTOR COMPANY
	 
	By: 	 /s/ John R. Stark	 	By: 	 /s/ Paul Herbach
	 	Name: 	 John R. Stark	 	 	Name: 	 Paul Herbach
	 	Title:	 Executive Vice President	 	 	Title:	 Raw Metals Purchasing

-10-

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