Document:

exv4w7

 

Exhibit 4.7

 

 

Quicksilver Resources Inc.

and

JPMorgan Chase Bank, National Association

as Trustee

 

Indenture

Dated as of December 22, 2005

 

DEBT SECURITIES

 

 

 

 

Quicksilver Resources Inc.

Debt Securities

Cross Reference Sheet*

This Cross Reference Sheet shows the location in the

Indenture of the provisions inserted pursuant to Sections 310
– 318(a),

inclusive, of the Trust Indenture Act of 1939, as amended.

	 	 	 	 	 	 
	Trust Indenture Act	 	Sections of Indenture
	§ 310
	(a)(1)	 	 	9.08	 
	 	(a)(2)	 	 	9.08	 
	 	(a)(3)	 	 	Inapplicable
	 	(a)(4)	 	 	Inapplicable
	 	(a)(5)	 	 	9.08	 
	 	(b)	 	 	9.07 and 9.09
	 	(c)	 	 	Inapplicable
	§ 311
	(a)	 	 	9.12	 
	 	(b)	 	 	9.12	 
	 	(c)	 	 	Inapplicable
	§ 312
	(a)	 	 	7.01 and 7.02
	 	(b)	 	 	7.02	 
	 	(c)	 	 	7.02	 
	§ 313
	(a)	 		7.03
	 	(b)	 	 	7.03	 
	 	(c)	 	 	7.03	 
	 	(d)	 	 	7.03	 
	§ 314
	(a)	 		7.04
	 	(a)(4)	 	 	1.01 and 6.05
	 	(b)	 	 	Inapplicable
	 	(c)(1)	 	 	13.05	 
	 	(c)(2)	 	 	13.05	 
	 	(c)(3)	 	 	13.05	 
	 	(d)	 	 	Inapplicable
	 	(e)	 	 	13.05	 
	 	(f)	 	 	Inapplicable
	§ 315
	(a)	 		9.01
	 	(b)	 	 	8.08	 
	 	(c)	 	 	9.01	 
	 	(d)	 	 	9.01	 
	 	(e)	 	 	8.07	 
	§ 316 
	(a)(1)(A)	 	 	8.01 and 8.06
	 	(a)(1)(B)	 	 	8.01	 
	 	(a)(2)	 	 	Inapplicable
	 	(b)	 	 	8.09	 
	 	(c)	 	 	13.11	 
	§ 317
	(a)(1)	 		8.02
	 	(a)(2)	 	 	8.02	 
	 	(b)	 	 	6.03	 
	§ 318
	(a)	 		13.08

 

			
	*	 	The Cross Reference Sheet is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	RECITALS
	 	 	1	 
	 
	 	 		 
	[Form of Face of Security]
	 	 	1	 
	[Form of Reverse of Security]
	 	 	3	 
	[Form of Trustee’s Certificate Of Authentication for Securities]
	 	 	7	 
	[Form of Legend for Global Securities]
	 	 	7	 
	 
	 	 	 	 
	ARTICLE I. DEFINITIONS
	 	 	8	 
	 
	 	 	 	 
	Section 1.01. Certain Terms Defined
	 	 	8	 
	 
	 	 	 	 
	Act
	 	 	8	 
	Affiliate
	 	 	8	 
	Authenticating Agent
	 	 	8	 
	Board of Directors
	 	 	8	 
	Board Resolution
	 	 	8	 
	Business Day
	 	 	9	 
	Capital Lease
	 	 	9	 
	Capital Lease Obligation
	 	 	9	 
	Commission
	 	 	9	 
	Common Stock
	 	 	9	 
	Company
	 	 	9	 
	Company Request or Company Order
	 	 	9	 
	Corporate Trust Office
	 	 	10	 
	Covenant Defeasance
	 	 	10	 
	Default
	 	 	10	 
	Defaulted Interest
	 	 	10	 
	Defeasance
	 	 	10	 
	Defeasible Series
	 	 	10	 
	Depositary
	 	 	10	 
	Event of Default
	 	 	10	 
	Exchange Act
	 	 	10	 
	GAAP
	 	 	10	 
	Global Security
	 	 	11	 
	Holder
	 	 	11	 
	Indebtedness
	 	 	11	 
	Indenture
	 	 	12	 
	Interest
	 	 	12	 
	Interest Payment Date
	 	 	12	 
	Material Adverse Effect
	 	 	12	 
	Maturity
	 	 	12	 
	Notice of Default
	 	 	12	 
	Officer’s Certificate
	 	 	13	 
	Opinion of Counsel
	 	 	13	 

-i-

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	Original Issue Discount Security
	 	 	13	 
	Outstanding
	 	 	13	 
	Paying Agent
	 	 	14	 
	Person
	 	 	14	 
	Place of Payment
	 	 	14	 
	Predecessor Security
	 	 	14	 
	Redemption Date
	 	 	14	 
	Redemption Price
	 	 	14	 
	Regular Record Date
	 	 	14	 
	Responsible Officer
	 	 	15	 
	Securities
	 	 	15	 
	Security Register and Security Registrar
	 	 	15	 
	Significant Subsidiary
	 	 	15	 
	Special Record Date
	 	 	15	 
	Stated Maturity
	 	 	15	 
	Subsidiary
	 	 	15	 
	Trust Indenture Act
	 	 	16	 
	Trustee
	 	 	16	 
	U.S. Government Obligation
	 	 	16	 
	Vice President
	 	 	16	 
	 
	Section 1.02. Rules of Construction
	 	 	16	 
	 
	 	 	 	 
	ARTICLE II. THE SECURITIES
	 	 	17	 
	 
	 	 	 	 
	Section 2.01. Designation and Amount of Securities
	 	 	17	 
	Section 2.02. Form of Securities and Trustee’s Certificate of Authentication
	 	 	18	 
	Section 2.03. Date and Denominations
	 	 	19	 
	Section 2.04. Execution, Authentication and Delivery of Securities
	 	 	19	 
	Section 2.05. Registration of Transfer and Exchange
	 	 	20	 
	Section 2.06. Temporary Securities
	 	 	21	 
	Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities
	 	 	22	 
	Section 2.08. Cancellation of Surrendered Securities
	 	 	23	 
	Section 2.09. Payment of Interest; Interest Rights Preserved
	 	 	23	 
	Section 2.10. Persons Deemed Owners
	 	 	24	 
	Section 2.11. Computation of Interest
	 	 	24	 
	Section 2.12. CUSIP Numbers
	 	 	25	 
	 
	 	 	 	 
	ARTICLE III. REDEMPTION OF SECURITIES
	 	 	25	 
	 
	 	 	 	 
	Section 3.01. Applicability of Article
	 	 	25	 
	Section 3.02. Election to Redeem; Notice to Trustee
	 	 	25	 
	Section 3.03. Deposit of Redemption Price
	 	 	26	 
	Section 3.04. Securities Payable on Redemption Date
	 	 	26	 

-ii-

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	Section 3.05. Securities Redeemed in Part
	 	 	26	 
	 
	 	 	 	 
	ARTICLE IV. SINKING FUNDS
	 	 	27	 
	 
	 	 	 	 
	Section 4.01. Applicability of Article
	 	 	27	 
	Section 4.02. Satisfaction of Sinking Fund Payments With Securities
	 	 	27	 
	Section 4.03. Redemption of Securities for Sinking Fund
	 	 	27	 
	 
	 	 	 	 
	ARTICLE V. DEFEASANCE AND COVENANT DEFEASANCE
	 	 	28	 
	 
	 	 	 	 
	Section 5.01. Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	28	 
	Section 5.02. Defeasance and Discharge
	 	 	28	 
	Section 5.03. Covenant Defeasance
	 	 	28	 
	Section 5.04. Conditions to Defeasance or Covenant Defeasance
	 	 	29	 
	Section 5.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions
	 	 	30	 
	Section 5.06. Reinstatement
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VI. PARTICULAR COVENANTS OF THE COMPANY
	 	 	31	 
	 
	 	 	 	 
	Section 6.01. Payment of Principal, Premium and Interest on Securities
	 	 	31	 
	Section 6.02. Maintenance of Office or Agency
	 	 	31	 
	Section 6.03. Money for Securities Payments to be Held in Trust
	 	 	32	 
	Section 6.04. Existence
	 	 	33	 
	Section 6.05. Statement by Officers as to Default
	 	 	33	 
	Section 6.06. Waiver of Certain Covenants
	 	 	33	 
	 
	 	 	 	 
	ARTICLE VII. SECURITIES HOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 	 	34	 
	 
	 	 	 	 
	Section 7.01. Company to Furnish Trustee Names and Addresses of Holders
	 	 	34	 
	Section 7.02. Preservation of Information; Communication to Holders
	 	 	34	 
	Section 7.03. Reports by Trustee
	 	 	34	 
	Section 7.04. Reports by Company
	 	 	35	 
	 
	 	 	 	 
	ARTICLE
VIII. DEFAULT
	 	 	35	 
	 
	 	 	 	 
	Section 8.01. Event of Default
	 	 	35	 
	Section 8.02.
Covenant of Company to Pay to Trustee Whole Amount Due on Securities
on Default in Payment of Interest or Principal; Suits for Enforcement by Trustee
	 	 	37	 
	Section 8.03. Application of Money Collected by Trustee
	 	 	39	 
	Section 8.04. Limitation on Suits by Holders of Securities
	 	 	39	 

-iii-

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	Section 8.05. Rights and Remedies Cumulative; Delay or Omission in Exercise of Rights not a Waiver of Event of Default
	 	 	40	 
	Section 8.06. Rights of Holders of Majority in Principal Amount of Outstanding Securities to Direct Trustee
	 	 	40	 
	Section 8.07. Requirement of an Undertaking to Pay Costs in Certain Suits Under the Indenture or Against the Trustee
	 	 	40	 
	Section 8.08. Notice of Defaults
	 	 	40	 
	Section 8.09. Unconditional Right of Holders to Receive Principal, Premium, and Interest
	 	 	41	 
	Section 8.10. Restoration of Rights and Remedies
	 	 	41	 
	Section 8.11. Trustee May File Proofs of Claims
	 	 	41	 
	 
	 	 	 	 
	ARTICLE IX. CONCERNING THE TRUSTEE
	 	 	42	 
	 
	 	 	 	 
	Section 9.01. Certain Duties and Responsibilities
	 	 	42	 
	Section 9.02. Certain Rights of Trustee
	 	 	42	 
	Section 9.03. Not Responsible for Recitals or Issuance of Securities
	 	 	43	 
	Section 9.04. May Hold Securities
	 	 	43	 
	Section 9.05. Money Held in Trust
	 	 	43	 
	Section 9.06. Compensation and Reimbursement
	 	 	43	 
	Section 9.07. Disqualification; Conflicting Interests
	 	 	44	 
	Section 9.08. Corporate Trustee Required Eligibility
	 	 	44	 
	Section 9.09. Resignation and Removal; Appointment of Successor
	 	 	44	 
	Section 9.10. Acceptance of Appointment by Successor
	 	 	45	 
	Section 9.11. Merger, Conversion, Consolidation, or Succession to Business
	 	 	46	 
	Section 9.12. Preferential Collection of Claims Against Company
	 	 	46	 
	Section 9.13. Appointment of Authenticating Agent
	 	 	47	 
	Section 9.14. Trustee’s Application for Instruction from the Company
	 	 	48	 
	 
	 	 	 	 
	ARTICLE X. SUPPLEMENTAL INDENTURES AND CERTAIN ACTIONS
	 	 	48	 
	 
	 	 	 	 
	Section 10.01.  Purposes for Which Supplemental Indentures May Be Entered Into Without Consent of Holders
	 	 	48	 
	Section 10.02.  Modification of Indenture with Consent of Holders of at Least a Majority in Principal Amount of Outstanding Securities
	 	 	49	 
	Section 10.03. Execution of Supplemental Indentures
	 	 	50	 
	Section 10.04. Effect of Supplemental Indentures
	 	 	51	 
	Section 10.05. Conformity with Trust Indenture Act
	 	 	51	 
	Section 10.06. Reference in Securities to Supplemental Indentures
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XI. CONSOLIDATION, MERGER, SALE, OR TRANSFER
	 	 	51	 
	 
	 	 	 	 
	Section 11.01. Consolidations and Mergers of Company and Sales Permitted Only on Certain Terms 
	 	 	51	 

-iv-

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE XII. SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	52	 
	 
	 	 	 	 
	Section 12.01. Satisfaction and Discharge of Indenture
	 	 	52	 
	Section 12.02. Application of Trust Money
	 	 	52	 
	 
	 	 	 	 
	ARTICLE XIII. MISCELLANEOUS PROVISIONS
	 	 	53	 
	 
	 	 	 	 
	Section 13.01. Successors and Assigns of Company Bound by Indenture
	 	 	53	 
	Section 13.02. Service of Required Notice to Trustee and Company
	 	 	53	 
	Section 13.03. Service of Required Notice to Holders; Waiver
	 	 	53	 
	Section 13.04. Indenture and Securities to be Construed in Accordance with the Laws of the State of New York
	 	 	53	 
	Section 13.05. Compliance Certificates and Opinions
	 	 	54	 
	Section 13.06. Form of Documents Delivered to Trustee
	 	 	54	 
	Section 13.07. Payments Due on Non-Business Days
	 	 	54	 
	Section 13.08. Provisions Required by Trust Indenture Act to Control
	 	 	54	 
	Section 13.09. Invalidity of Particular Provisions
	 	 	54	 
	Section 13.10. Indenture May be Executed In Counterparts
	 	 	55	 
	Section 13.11. Acts of Holders; Record Dates
	 	 	55	 
	Section 13.12. Effect of Headings and Table of Contents
	 	 	57	 
	Section 13.13. Benefits of Indenture
	 	 	57	 

-v-

 

          Indenture, dated as of December 22, 2005, between Quicksilver Resources Inc., a corporation
duly organized and existing under the laws of the State of Delaware (the “Company”), and JPMorgan
Chase Bank, National Association, a national banking association duly organized and existing under
the laws of the United States of America (herein called the “Trustee”).

Recitals of the Company

          A. The Company has duly authorized the execution and delivery of this Indenture to provide
for the issuance from time to time of its unsecured debentures, notes, and other evidences of
indebtedness (the “Securities”), to be issued in one or more series up to such principal amount or
amounts as may be from time to time authorized in accordance with the terms of this Indenture
provided.

          B. The Securities of each series will be in substantially the form set forth below, or in
such other form as may be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case 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 or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by
their execution of the Securities.

[Form of Face of Security]

[Insert any legend required by the Internal

Revenue Code and the regulations thereunder.]

Quicksilver Resources Inc.

 

CUSIP
No.                      

			
	No.                     
	 	$                    

          Quicksilver Resources Inc., a corporation duly organized and existing under the laws of the
State of Delaware (hereinafter called the “Company,” which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby
promises to pay to                                          , or
registered assigns, the principal sum of
$                     on                                          [if the Security is to bear interest prior to
Maturity, insert: “, and to pay interest thereon from                      or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, on                      and                                         
in each year, commencing on
                                        
, at the rate of
          % per annum, until the
principal hereof is paid or made available for payment [if applicable, insert: “, and at
the rate of                      % per annum on any overdue principal and premium and on any overdue installment of
interest”]. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose

 

 

name this Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, which will be the                                          or                     
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will 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
Security (or one or more Predecessor Securities) 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, notice
whereof will be given to Holders of Securities of this series not less than 10 calendar days prior
to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as more fully provided in
said Indenture”].

          [If the Security is not to bear interest prior to Maturity, insert: “The principal of
this Security will not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption, or at Stated Maturity, and in such case the overdue principal of
this Security will bear interest at the rate of 
          % per annum which will accrue from the
date of such default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal will be payable on demand. Any such interest on
any overdue principal that is not so paid on demand will bear interest at the rate of            %
per annum which will accrue from the date of such demand for payment to the date payment of such
interest has been made or duly provided for, and such interest will also be payable on demand.”]

          Payment of the principal of (and premium, if any) and [if applicable, insert: “any
such”] interest on this Security will be made at the office or agency of the Company maintained for
the purpose
in           , in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts [if applicable, insert: “;
provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such address appears in the
Security Register”].

          REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS SET FORTH ON THE REVERSE HEREOF. SUCH
PROVISIONS WILL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH IN THIS PLACE.

          This Security will not be valid or become obligatory for any purpose until the certificate of
authentication herein has been signed manually by the Trustee under the Indenture referred to on
the reverse side hereof.

2

 

          In Witness Whereof, this instrument has been duly executed in accordance with the Indenture.

	 	 	 	 	 	 	 
	 	 	Quicksilver Resources Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Attest:

By:                    

[Form of Reverse of Security]

Quicksilver Resources Inc.

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”) issued and to be issued in one or more series under an Indenture, dated as of
                    , 2005 (herein called the “Indenture”), between the Company and                                          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 Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof [if applicable, insert: “, limited in
aggregate principal amount to
$                    ”].

          [If applicable, insert: “The Securities of this series are subject to redemption upon
not less than 30 calendar days’ notice by mail,[if applicable, insert: “(a) on                     
in each year commencing with the year                      and ending with the year                     
through operation of the sinking fund for this series at a Redemption Price equal to
100% of the principal amount, and (b)”] at any time [if applicable, insert: “on or after
                                        ,
                     ”], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount): If redeemed [If
applicable, insert: “on or before
                                        ,
                    %,
and if redeemed”]
during the 12-month period beginning                                          of the years indicated,

	 	 	 	 	 	 	 	 	 
	 	 	Redemption	 	 	 	 	 	Redemption
	Year	 	Price	 	 	Year	 	 	Price

3

 

and
thereafter at a Redemption Price equal to
        % of the principal amount, together in the
case of any such redemption [if applicable, insert: “whether through operation of the
sinking fund or otherwise)”] with accrued interest to the Redemption Date, but interest
installments the Stated Maturity of which is on or prior to such Redemption Date will be payable to
the Holders of such Securities, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.”]

          [If applicable, insert: “The Securities of this series are subject to redemption upon
not less than 30 calendar days’ notice by mail, [if applicable, insert: “(a) on                     
in each year commencing with the year
                     and ending with the year                     
through operation of the sinking fund for this series at the following Redemption
Prices (expressed as percentages of the principal amount) applicable to redemption through
operation of the sinking fund and (b)”] at any time [if applicable, insert: “on or after
                                        ,
                    ”], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount) applicable to
redemption otherwise than through operation of the sinking fund: If redeemed [If applicable,
insert: “on or before
                                        
,
                    %,
and if redeemed”] during the
12-month period beginning  of the years indicated,

	 	 	 	 	 	 
	 	 	Redemption Price For	 	 	Redemption Price For
	 	 	Redemption Through	 	 	Redemption Otherwise
	 	 	Operation of the	 	 	Than Through Operation
	Year	 	Sinking Fund	 	 	of the Sinking Fund

and thereafter at a Redemption Price equal to                     % of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.”]

          [If applicable, insert: “Notwithstanding the foregoing, the Company may not, prior to
                    , redeem any Securities of this series as contemplated by [if applicable, insert: “Clause
(b) of”] the preceding paragraph as a part of, or in anticipation of, any refunding operation by
the application, directly or indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less than                     % per annum.”]

          [If
applicable, insert: “The sinking fund for this series
provides for the redemption on                     
in each year beginning with the year                     
and ending with the  year                      of [if
applicable, insert: “not less than $                      (“mandatory sinking fund”) and not
more than”] $                      aggregate principal amount of Securities of this series.
Securities of this series acquired or redeemed by the Company otherwise than through [if 

4

 

applicable,
insert: “mandatory”] sinking fund payments may be credited against
subsequent [if applicable, insert: “mandatory”] sinking fund payments otherwise required
to be made [if applicable, insert: “in the inverse
order in which they become due”].”]

          [If the Security is subject to redemption of any kind, insert: “In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like
tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.”]

          [If applicable, insert: “The Indenture contains provisions for defeasance at any time
of (a) the entire indebtedness evidenced by this Security or (b) certain restrictive covenants and
Events of Default with respect to this Security, in each case upon compliance with certain
conditions set forth in the Indenture.”]

          [If the Security is not an Original Issue Discount Security, insert: “If an Event of
Default with respect to Securities of this series shall occur and be continuing, the principal of
the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.”]

          [If the Security is an Original Issue Discount Security, insert: “If an Event of
Default with respect to Securities of this series shall occur and be continuing, an amount of
principal of the Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture. Such amount will be equal to [insert formula for
determining the amount]. Upon payment (a) of the amount of principal so declared due and
payable and (b) of interest on any overdue principal and overdue interest, all of the Company’s
obligations in respect of the payment of the principal of and interest, if any, on the Securities
of this series will terminate.”]

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security will be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
will not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the

5

 

Securities of this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee and furnished the
Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request and shall have failed to institute such proceeding for 60 calendar
days after receipt of such notice, request, and indemnity. The foregoing will apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of principal hereof or
any premium or interest hereon on or after the respective due dates expressed herein.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
will alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and any premium and interest on this Security at the times, place, and rate, and in
the coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and integral multiples thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee, and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security shall be
overdue, and neither the Company, the Trustee, nor any such agent will be affected by notice to the
contrary.

          All terms used in this Security that are defined in the Indenture will have the respective
meanings assigned to them in the Indenture.

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          C. The Trustee’s certificate of authentication will be in substantially the following form:

          [Form of Trustee’s Certificate Of Authentication for Securities]

Trustee’s Certificate of Authentication

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	JPMorgan Chase Bank, National Association,	 	 
	 	 	 	 	 	 	  as Trustee	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory	 	 

          D. Every Global Security authenticated and delivered hereunder will bear a legend in
substantially the following form:

[Form of Legend for Global Securities]

          This Security is a Global Security within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depositary or a nominee thereof. This Security may not be
transferred to, or registered or exchanged for Securities registered in the name of, any Person
other than the Depositary or a nominee thereof, and no such transfer may be registered, except in
the limited circumstances described in the Indenture. Every Security authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, this Security will be a Global
Security subject to the foregoing, except in such limited circumstances.

          E. All acts and things necessary to make the Securities, when the Securities have been
executed by the Company and authenticated by the Trustee and delivered as provided in this
Indenture, the valid, binding, and legal obligations of the Company and to constitute these
presents a valid indenture and agreement according to its terms, have been done and performed, and
the execution and delivery by the Company of this Indenture and the issue hereunder of the
Securities have in all respects been duly authorized; and the Company, in the exercise of legal
right and power in it vested, is executing and delivering this Indenture and proposes to make,
execute, issue, and deliver the Securities.

          Now, Therefore, this Indenture Witnesseth:

          In order to declare the terms and conditions upon which the Securities are authenticated,
issued, and delivered, and in consideration of the premises and of the purchase and acceptance of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for the

7

 

equal and proportionate benefit of the respective Holders from time to time of the Securities
or of a series thereof, as follows:

ARTICLE I.  Definitions.

Section 1.01. Certain Terms Defined.

          (a) The terms defined in this Section 1.01 (except as herein otherwise expressly provided or
unless the context of this Indenture otherwise requires) for all purposes of this Indenture and of
any indenture supplemental hereto have the respective meanings specified in this Section 1.01. All
other terms used in this Indenture that are defined in the Trust Indenture Act, either directly or
by reference therein (except as herein otherwise expressly provided or unless the context of this
Indenture otherwise requires), have the respective meanings assigned to such terms in the Trust
Indenture Act as in force at the date of this Indenture as originally executed.

Act:

          The term “Act,” when used with respect to any Holder, has the meaning set forth in Section
13.11.

Affiliate:

          The term “Affiliate” means, with respect to a particular Person, any Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with, such Person. For
purposes of this definition, control of a 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 of the foregoing.

Authenticating Agent:

          The term “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section
9.13 to act on behalf of the Trustee to authenticate Securities of one or more series.

Board of Directors:

          The term “Board of Directors” means the Board of Directors of the Company or a duly authorized
committee of such Board of Directors.

     Board Resolution:

          The term “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.

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Business Day:

          The term “Business Day”, when used with respect to any Place of Payment, means each Monday,
Tuesday, Wednesday, Thursday, and Friday which is not a day on which banking institutions in that
Place of Payment are authorized or required by law or executive order to close and the Federal
Reserve Bank’s Fedwire Service is operating.

Capital Lease:

          The term “Capital Lease” means, with respect to any Person, any lease of property (whether
real, personal, or mixed) by such Person or its Subsidiaries as lessee that would be capitalized on
a balance sheet of such Person or its Subsidiaries prepared in conformity with GAAP, other than, in
the case of such Person or its Subsidiaries, any such lease under which such Person or any of its
Subsidiaries is the lessor.

Capital Lease Obligation:

          The term “Capital Lease Obligations” means, with respect to any Person, the capitalized amount
of all obligations of such Person and its Subsidiaries under Capital Leases, as determined on a
consolidated basis in conformity with GAAP.

Commission:

          The term “Commission” means the U.S. Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act or, if 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:

          The term “Common Stock” means the common stock of the Company.

Company:

          The term “Company” means Quicksilver Resources Inc., a Delaware corporation, until a successor
Person shall have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” will mean such successor Person.

Company Request or Company Order:

          The term “Company Request” or “Company Order” means a written request or order, respectively,
signed in the name of the Company by any one of the Chief Executive Officer, the President, the
Chief Financial Officer, the Vice President-General Counsel, the Vice President-Controller, or the
Treasurer of the Company, and delivered to the Trustee.

9

 

Corporate Trust Office:

          “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be administered, which office at the date of initial execution of
this Indenture is 600 Travis Street, Suite 1150, Houston, Texas 77002, Attention: Corporate Trust
Department.

Covenant Defeasance:

          The term “Covenant Defeasance” has the meaning set forth in Section 5.03.

Default:

          The term “Default” means any event which, with notice or passage of time or both, would
constitute an Event of Default.

Defaulted Interest:

          The term “Defaulted Interest” has the meaning set forth in Section 2.09.

Defeasance:

          The term “Defeasance” has the meaning set forth in Section 5.02.

Defeasible Series:

          The term “Defeasible Series” has the meaning set forth in Section 5.01.

Depositary:

          The term “Depositary” means, with respect to Securities of any series issuable in whole or in
part in the form of one or more Global Securities, a clearing agency registered under the Exchange
Act that is designated to act as Depositary for such Securities as contemplated by Section 2.01.

Event of Default:

          The term “Event of Default” has the meaning set forth in Section 8.01(a).

Exchange Act:

          The term “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, as the same may be in
effect from time to time.

GAAP:

          The term “GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time set forth in the opinions and

10

 

pronouncements of the Accounting Principles Board and The American Institute of Certified
Public Accountants and the statements and pronouncements of the Financial Accounting Standards
Board, or in such other statements by any other entity or successor entity as may be in general use
by significant segments of the accounting profession, which are applicable to the circumstances as
of the date of determination.

Global Security:

          The term “Global Security” means a Security that evidences all or part of the Securities of
any series and is authenticated and delivered to, and registered in the name of, the Depositary for
such Securities or a nominee thereof.

Holder:

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

Indebtedness:

          The term “Indebtedness” means, as applied to any Person, without duplication: (a) all
obligations of such Person for borrowed money; (b) all obligations of such Person for the deferred
purchase price of property or services (other than property and services purchased, and expense
accruals and deferred compensation items arising, in the ordinary course of business); (c) all
obligations of such Person evidenced by notes, bonds, debentures, mandatorily redeemable preferred
stock, or other similar instruments (other than performance, surety, and appeals bonds arising in
the ordinary course of business); (d) all payment obligations created or arising under any
conditional sale, deferred price, or other title retention agreement with respect to property
acquired by such Person (unless the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such property); (e) any
Capital Lease Obligation of such Person, other than obligations under oil and gas leases entered
into in the ordinary course of business; (f) all reimbursement, payment, or similar obligations,
contingent or otherwise, of such Person under acceptance, letter of credit, or similar facilities
(other than letters of credit in support of trade obligations or incurred in connection with public
liability insurance, workers’ compensation, unemployment insurance, old-age pensions, and other
social security benefits other than in respect of employee benefit plans subject to ERISA); (g) all
obligations of such Person, contingent or otherwise, under any guarantee by such Person of the
obligations of another Person of the type referred to in clauses (a) through (f) above; and (h) all
obligations referred to in clauses (a) through (f) above secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage or
security interest in property (including without limitation accounts, contract rights, and general
intangibles) owned by such Person and as to which such Person has not assumed or become liable for
the payment of such obligations other than to the extent of the property subject to such mortgage
or security interest; provided, however, that Indebtedness of the type referred to
in clauses (g) and (h) above shall be included within the definition of “Indebtedness” only to the
extent of the least of: (i) the amount of the underlying Indebtedness referred to in the applicable
clause (a) through (f) above; (ii) in the case of clause (g), the limit on recoveries, if any, from
such Person under obligations of the type referred to in

11

 

clause (g) above; and (iii) in the case of clause (h), the aggregate value (as determined in
good faith by the board of directors or similar governing body of such Person) of the property of
such Person subject to such mortgage or security interest.

Indenture:

          The term “Indenture” means this Indenture, as this Indenture may be amended, supplemented, or
otherwise modified from time to time, including, for all purposes of this Indenture and any
indenture supplemental hereto, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this Indenture and any such supplemental indenture, respectively. The term
“Indenture” also includes the terms of particular series of Securities established in accordance
with Section 2.01.

Interest:

          The term “interest,” (a) when used with respect to an Original Issue Discount Security which
by its terms bears interest only after Maturity, means interest which accrues from and after and is
payable after Maturity and (b) when used with respect to any Security, means the amount of all
interest accruing on such Security, including any default interest and any interest that would have
accrued after any Event of Default but for the occurrence of such Event of Default, whether or not
a claim for such interest would be otherwise allowable under applicable law.

Interest Payment Date:

          The term “Interest Payment Date,” when used with respect to any Security, means the Stated
Maturity of an installment of interest on such Security.

Material Adverse Effect:

          The term “Material Adverse Effect” means a material adverse effect on the business, assets,
financial condition or results of operations of the Company (taken together with its Subsidiaries
as a whole).

Maturity:

          The term “Maturity,” when used with respect to any Security, means the date on which the
principal of that Security or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, call for
redemption, or otherwise.

Notice of Default:

          The term “Notice of Default” means a written notice of the kind set forth in Section
8.01(a)(iv).

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Officer’s Certificate:

          The term “Officer’s Certificate” means a certificate executed on behalf of the Company by a
Responsible Officer, and delivered to the Trustee.

Opinion of Counsel:

          The term “Opinion of Counsel” means an opinion in writing signed by legal counsel, who,
subject to any express provisions hereof, may be an employee of or counsel for the Company or any
Subsidiary, reasonably acceptable to the Trustee.

Original Issue Discount Security:

          The term “Original Issue Discount Security” means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 8.01(b).

Outstanding:

          The term “Outstanding” means, when used with reference to Securities as of a particular time,
all Securities theretofore issued by the Company and authenticated and delivered by the Trustee
under this Indenture, except: (a) Securities theretofore cancelled by the Trustee or delivered to
the Trustee for cancellation, (b) Securities for the payment or redemption 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 is acting
as its own Paying Agent) for the Holders of such Securities; provided that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made, and (c) Securities in
exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to
this Indenture, other than any such Securities in respect of which there shall have been presented
to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in
whose hands such Securities are valid obligations of the Company; provided,
however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent,
or waiver hereunder, (i) the principal amount of an Original Issue Discount Security that will be
deemed to be Outstanding will be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof to such date
pursuant to Section 8.01(b), (ii) the principal amount of a Security denominated in one or more
foreign currencies or currency units will be the U.S. dollar equivalent, determined in the manner
contemplated by Section 2.01 on the date of original issuance of such Security, of the principal
amount (or, in the case of an Original Issue Discount Security, the U.S. dollar equivalent on the
date of original issuance of such Security of the amount determined as provided in clause (i)
above) of such Security, and (iii) Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor will be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee will be protected in relying
upon any such request, demand, authorization, direction, notice, consent, or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to

13

 

be so owned will be so disregarded. Securities so owned which have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company
or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

Paying Agent:

          The term “Paying Agent” means any Person authorized by the Company to pay the principal of or
any premium or interest on any Securities on behalf of the Company.

Person:

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

Place of Payment:

          The term “Place of Payment,” when used with respect to the Securities of any series, means the
place or places specified for the payment of the principal of and any premium and interest on the
Securities of that series as contemplated by Section 2.01.

Predecessor Security:

          The term “Predecessor Security,” when used with respect to any particular Security, means
every previous Security evidencing all or a portion of the same debt as that evidenced by such
Security; and, for the purposes of this definition, any Security authenticated and delivered under
Section 2.07 in exchange for or in lieu of a mutilated, destroyed, lost, or stolen Security will be
deemed to evidence the same debt as the mutilated, destroyed, lost, or stolen Security.

Redemption Date:

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

Redemption Price:

          The term “Redemption Price,” when used with respect to any Security to be redeemed, means the
price (including premium, if any) at which it is to be redeemed pursuant to this Indenture.

Regular Record Date:

          The term “Regular Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means the date specified for that purpose as contemplated by Section 2.01.

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Responsible Officer:

          The term “Responsible Officer,” when used (a) with respect to the Company, means any one of
the Chief Executive Officer, the President, the Chief Financial Officer, the Vice President-General
Counsel, the Vice President-Controller, or the Treasurer of the Company and (b) with respect to the
Trustee, means any officer of the Trustee assigned by the Trustee to administer corporate trust
matters and also means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his or her knowledge of and familiarity with the particular
subject.

Securities:

          The term “Securities” has the meaning set forth in the first recital of this Indenture and
more particularly means any Securities authenticated and delivered under this Indenture.

Security Register and Security Registrar:

          The terms “Security Register” and “Security Registrar” have the respective meanings set forth
in Section 2.05.

Significant Subsidiary:

          The term “Significant Subsidiary” means any Subsidiary that accounts for (a) 10% or more of
the total consolidated assets of the Company and its Subsidiaries as of any date of determination,
or (b) 10% or more of the total consolidated revenues of the Company and its Subsidiaries for the
Company’s most recently concluded fiscal quarter.

Special Record Date:

          The term “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 2.09.

Stated Maturity:

          The term “Stated Maturity,” when used with respect to any Security, means the date specified
in such Security as the fixed date on which the principal of such Security or any installment of
interest thereon is due and payable.

Subsidiary:

          The term “Subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership (limited or general), association or other
entity the accounts of which would be consolidated with those of the parent in the parent’s
consolidated financial statements if such financial statements were prepared in accordance with
GAAP as of such date.

15

 

Trust Indenture Act:

          The term “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, 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:

          The term “Trustee” means the Person named as the “Trustee” in the first paragraph of this
Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter “Trustee” will mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series will mean each Trustee with respect to Securities of that series.

U.S. Government Obligation:

          The term “U.S. Government Obligation” means (a) any security that is (i) a direct obligation
of the United States of America for the payment of which the full faith and credit of the United
States of America is pledged or (ii) an obligation of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America,
which, in either case (i) or (ii), is not callable or redeemable at the option of the issuer
thereof and (b) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act of 1933, as amended) as custodian with respect to any U.S. Government Obligation
specified in clause (a), which U.S. Government Obligation is held by such custodian for the account
of the holder of such depositary receipt, or with respect to any specific payment of principal of
or interest on any such U.S. Government Obligation, provided that (except as required by
law) such custodian is not authorized to make any deduction from the amount payable to the holder
of such depositary receipt from any amount received by the custodian in respect of the U.S.
Government Obligation or the specific payment of principal or interest evidenced by such depositary
receipt.

Vice President:

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

Section 1.02. Rules of Construction.

          (a) The words “Article” and “Section” refer to an Article and Section, respectively, of this
Indenture as originally executed. 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. Terms in the singular include the plural and terms in the plural include the
singular.

16

 

          (b) All accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with GAAP.

ARTICLE II.  The Securities.

Section 2.01. Designation and Amount of Securities.

          (a) The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

          (b) The Securities may be issued in one or more series. There will be established in or
pursuant to a Board Resolution and, subject to Section 2.04, set forth or determined in the manner
provided in an Officer’s Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series: (i) the title of the Securities of the series
(which will distinguish the Securities of the series from Securities of any other series); (ii) any
limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in the exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.05, 2.06, 2.07, 3.05, or 10.06 and except for any Securities which,
pursuant to Section 2.04, are deemed never to have been authenticated and delivered hereunder);
(iii) the Person to whom any interest on a Security of the series will be payable, if other than
the Person in whose name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest; (iv) the date or dates on which the
principal of the Securities of the series is payable; (v) the rate or rates at which the Securities
of the series will bear interest, if any, the date or dates from which such interest will accrue,
the Interest Payment Dates on which any such interest will be payable, and the Regular Record Date
for any interest payable on any Interest Payment Date; (vi) the place or places where the principal
of and any premium and interest on Securities of the series will be payable; (vii) the period or
periods within which, the price or prices at which, and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of the Company; (viii)
the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to
any sinking fund or analogous provisions or at the option of a Holder thereof and the period or
periods within which, the price or prices at which, and the terms and conditions upon which
Securities of the series will be redeemed or purchased, in whole or in part, pursuant to such
obligation; (ix) if other than denominations of $1,000 and integral multiples thereof, the
denominations in which Securities of the series will be issuable; (x) the currency, currencies, or
currency units in which payment of the principal of and any premium and interest on any Securities
of the series will be payable if other than the currency of the United States of America and the
manner of determining the equivalent thereof in the currency of the United States of America for
purposes of the definition of “Outstanding” in Section 1.01; (xi) if the amount of payments of
principal of or any premium or interest on any Securities of the series may be determined with
reference to an index, based upon a formula, or in some other manner, the manner in which such
amounts will be determined; (xii) if the principal of or any premium or interest on any Securities
of the series is to be payable, at the election of the Company or a Holder thereof, in one or more
currencies or currency units other than that or those in which the Securities are stated to be
payable, the currency, currencies, or currency units in which payment of the principal of and any
premium and interest on Securities

17

 

of such series as to which such election is made will be payable, and the periods within which
and the terms and conditions upon which such election is to be made; (xiii) if other than the
principal amount thereof, the portion of the principal amount of Securities of the series which
will be payable upon declaration of acceleration of the Maturity thereof pursuant to Section
8.01(b); (xiv) if applicable, that the Securities of the series will be subject to either or both
of Defeasance or Covenant Defeasance as provided in Article V, provided that no series of
Securities that is convertible into Common Stock pursuant to Section 2.01(b)(xvi) or convertible
into or exchangeable for any other securities pursuant to Section 2.01(b)(xvii) will be subject to
Defeasance pursuant to Section 5.02; (xv) if and as applicable, that the Securities of the series
will be issuable in whole or in part in the form of one or more Global Securities and, in such
case, the Depositary or Depositaries for such Global Security or Global Securities and any
circumstances other than those set forth in Section 2.05 in which any such Global Security may be
transferred to, and registered and exchanged for Securities registered in the name of, a Person
other than the Depositary for such Global Security or a nominee thereof and in which any such
transfer may be registered; (xvi) the terms and conditions, if any, pursuant to which the
Securities are convertible into Common Stock; (xvii) the terms and conditions, if any, pursuant to
which the Securities are convertible into or exchangeable for any other securities, including
(without limitation) securities of Persons other than the Company; (xviii) if and as applicable,
that the Securities of the series will be subordinated and subject in right of payment to the prior
payment of other Indebtedness; and (xix) any other terms of, or provisions, covenants, rights or
other matters applicable to, the series (which terms, provisions, covenants, rights or other
matters will not be inconsistent with the provisions of this Indenture, except as permitted by
Section 10.01(e)).

          (c) All Securities of any one series will be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to below
and (subject to Section 2.04) set forth or determined in the manner provided in the Officer’s
Certificate referred to above or in any such indenture supplemental hereto.

          (d) If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action will be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee concurrently with or prior to the
delivery of the Officer’s Certificate setting forth the terms of the series.

Section 2.02. Form of Securities and Trustee’s Certificate of Authentication.

          (a) The Securities of each series will be in substantially the form set forth in or otherwise
contemplated by the recitals to this Indenture, with appropriate variations to reflect the specific
terms of such series. If the form of Securities of any series is established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action will be certified by
the Secretary or an Assistant Secretary of the Company and delivered to the Trustee concurrently
with or prior to the delivery of the Company Order contemplated by Section 2.04 for the
authentication and delivery of such Securities.

          (b) The definitive Securities will be printed, lithographed, or engraved on steel engraved
borders or may be produced in any other manner permitted by the rules of any

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securities exchange on which the Securities may be listed, all as determined by the officers
executing such Securities, as evidenced by their execution of such Securities.

          (c) The Trustee’s certificate of authentication will be in substantially the form set forth in
the recitals to this Indenture.

          (d) Every Global Security authenticated and delivered hereunder will bear a legend in
substantially the form set forth in the recitals to this Indenture.

Section 2.03. Date and Denominations.

          Each Security will be dated the date of its authentication. The Securities of each series
will be issuable only in registered form without coupons in such denominations as may be specified
as contemplated by Section 2.01. In the absence of any such specified denomination with respect to
the Securities of any series, the Securities of such series will be issuable in denominations of
$1,000 and integral multiples thereof.

Section 2.04. Execution, Authentication and Delivery of Securities.

          (a) The Securities will be executed on behalf of the Company by any one of the Chief Executive
Officer, the President, the Chief Financial Officer, the Vice President-General Counsel, or the
Vice President-Controller of the Company and attested by the Treasurer, the Secretary, any
Assistant Treasurer, or any Assistant Secretary of the Company under its corporate seal. The
signature of any of these officers on the Securities may be manual or facsimile. The seal of the
Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted, or
otherwise reproduced on the Securities.

          (b) Only such Securities bearing the Trustee’s certificate of authentication, signed manually
by the Trustee, will be entitled to the benefits of this Indenture or be valid or obligatory for
any purpose. Such execution of the certificate of authentication by the Trustee upon any
Securities executed by the Company will be conclusive evidence that the Securities so authenticated
have been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in
Section 2.08, for all purposes of this Indenture such Security will be deemed never to have been
authenticated and delivered hereunder and will never be entitled to the benefits of this Indenture.

          (c) Securities bearing the manual or facsimile signatures of individuals who were at any time
the proper officers of the Company will 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
Securities or did not hold such offices at the date of such Securities.

          (d) At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee will authenticate and deliver such Securities in

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accordance with such Company Order. If the terms or form of the Securities of the series have
been established in or pursuant to one or more Board Resolutions as permitted by Sections 2.01 and
2.02, in authenticating such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee will be entitled to receive, and (subject to
Section 9.01) will be fully protected in relying upon, an Opinion of Counsel stating (i) if the
terms of such Securities have been established by or pursuant to a Board Resolution as permitted by
Section 2.01, that such terms have been established in conformity with the provisions of this
Indenture, (ii) if the form of such Securities has been established by or pursuant to a Board
Resolution as permitted by Section 2.02, that such form has been established in conformity with the
provisions of this Indenture, and (iii) that such Securities, when authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and binding obligations of the Company enforceable in
accordance with their terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, or other laws relating to or affecting creditors’ rights
and by general principles of equity.

          (e) Notwithstanding the provisions of Sections 2.01 and 2.04(d), if all Securities of a series
are not to be originally issued at one time, it will not be necessary to deliver the Officer’s
Certificate otherwise required pursuant to Section 2.01 or the Company Order and Opinion of Counsel
otherwise required pursuant to Section 2.04(d) at or prior to the time of authentication of each
Security of such series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

Section 2.05. Registration of Transfer and Exchange.

          (a) The Company will cause to be kept at the Corporate Trust Office a register (the register
maintained in such office and in any other office or agency of the Company in a Place of Payment
being herein sometimes collectively referred to as the “Security Register”) in which, subject to
such reasonable regulations as it may prescribe, the Company will provide for the registration of
Securities and of transfers of Securities. The Trustee is hereby appointed “Security Registrar”
for the purpose of registering Securities and transfers of Securities as herein provided.

          (b) Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company will execute, and the Trustee will
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.

          (c) At the option of the Holder, Securities of any series may be exchanged for other
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor, upon surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company will execute, and the Trustee
will authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

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          (d) Every Security presented or surrendered for registration of transfer or exchange will (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument or instruments of transfer, in form reasonably satisfactory to the Company and the
Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge will be made for any registration of transfer or exchange of Securities, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 2.06, 3.05, or 10.06 not involving any transfer. The Company
will not be required (i) to issue, register the transfer of, or exchange Securities of any series
during a period beginning at the opening of business 15 calendar days before the mailing of a
notice of redemption of Securities of that series selected for redemption under Section 3.02(c) and
ending at the close of business on the day of such mailing or (ii) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except, in the case of any
Securities to be redeemed in part, the portion thereof not being redeemed.

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

          (f) Notwithstanding any other provision in this Indenture, no Global Security may be
transferred to, or registered or exchanged for Securities registered in the name of, any Person
other than the Depositary for such Global Security or any nominee thereof, and no such transfer may
be registered, unless (i) such Depositary (A) notifies the Company that it is unwilling or unable
to continue as Depositary for such Global Security or (B) ceases to be a clearing agency registered
under the Exchange Act, (ii) the Company executes and delivers to the Trustee a Company Order that
such Global Security shall be so transferable, registrable, and exchangeable, and such transfers
shall be registrable, (iii) there shall have occurred and be continuing an Event of Default with
respect to the Securities evidenced by such Global Security, or (iv) there shall exist such other
circumstances, if any, as have been specified for this purpose as contemplated by Section 2.01.
Notwithstanding any other provision in this Indenture, a Global Security to which the restriction
set forth in the preceding sentence shall have ceased to apply may be transferred only to, and may
be registered and exchanged for Securities registered only in the name or names of, such Person or
Persons as the Depositary for such Global Security shall have directed and no transfer thereof
other than such a transfer may be registered. Every Security authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global Security to which the
restriction set forth in the first sentence of this Section 2.05(f) shall apply, whether pursuant
to this Section 2.05, Section 2.06, 2.07, 3.05, or 10.06 or otherwise, will be authenticated and
delivered in the form of, and will be, a Global Security.

Section 2.06. Temporary Securities.

          Pending the preparation of definitive Securities of any series, the Company may execute and
register, and upon Company Order the Trustee will authenticate and deliver, temporary Securities
(printed, lithographed, or typewritten) of any authorized denomination, and substantially in the
form of the definitive Securities but with such omissions, insertions, and

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variations as may be appropriate for temporary Securities, all as may be determined by the
officers of the Company executing such Securities as evidenced by their execution of such
Securities; provided, however, that the Company will use reasonable efforts to have
definitive Securities of that series available at the times of any issuance of Securities under
this Indenture. Every temporary Security will be executed and registered by the Company and be
authenticated by the Trustee upon the same conditions and in substantially the same manner, and
with like effect, as the definitive Securities. The Company will execute and register and furnish
definitive Securities of such series as soon as practicable and thereupon any or all temporary
Securities of such series may be surrendered in exchange therefor at the office or agency of the
Company in the Place of Payment for that series, and the Trustee will authenticate and deliver in
exchange for such temporary Securities of such series one or more definitive Securities of the same
series, of any authorized denominations, and of a like aggregate principal amount and tenor. Such
exchange will be made by the Company at its own expense and without any charge to the Holder
therefor. Until so exchanged, the temporary Securities of any series authenticated and delivered
hereunder will be entitled to the same benefits under this Indenture as definitive Securities of
the same series authenticated and delivered hereunder.

Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities.

          (a) If any mutilated Security is surrendered to the Trustee, the Company will execute and the
Trustee will authenticate and deliver in exchange therefor a new Security of the same series and of
like tenor and principal amount and bearing a number not contemporaneously outstanding.

          (b) If there shall be delivered to the Company and the Trustee (i) evidence to their
satisfaction of the destruction, loss, or theft of any Security 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 Trustee that such Security has been acquired by a bona
fide purchaser, the Company will execute and the Trustee will authenticate and deliver, in lieu of
any such destroyed, lost, or stolen Security, a new Security of the same series and of like tenor
and principal amount and bearing a number not contemporaneously outstanding.

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

          (d) Upon the issuance of any new Security under this Section 2.07, 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.

          (e) Every new Security of any series issued pursuant to this Section 2.07 in exchange for any
mutilated Security or in lieu of any destroyed, lost, or stolen Security will constitute an
original additional contractual obligation of the Company, whether or not the mutilated, destroyed,
lost, or stolen Security shall be at any time enforceable by anyone, and will

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be entitled to all the benefits of this Indenture equally and proportionately with any and all
other Securities of that series duly issued hereunder.

          (f) The provisions of this Section 2.07 are exclusive and will preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost, or stolen Securities.

Section 2.08. Cancellation of Surrendered Securities.

          All Securities surrendered for payment, redemption, registration of transfer or exchange, or
for credit against any sinking fund payment will, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and will be promptly cancelled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered will be promptly cancelled by the Trustee. No Securities will be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section 2.08, except as
expressly permitted by this Indenture. The Trustee shall destroy all cancelled Securities held by
the Trustee and shall send a certificate of such destruction to the Company.

Section 2.09. Payment of Interest; Interest Rights Preserved.

          (a) Except as otherwise provided as contemplated by Section 2.01 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date will be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest.

          (b) Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) will 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 together with interest thereon (to
the extent permitted by law) at the rate of interest applicable to such Security, at its election
in each case, as provided in clause (i) or (ii) below:

               (i) The Company may elect to make payment of any Defaulted Interest (and interest
thereon, if any) to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which will be fixed in the following
manner. The Company will notify the Trustee in writing of the amount of Defaulted Interest
(and interest thereon, if any) proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Company will deposit with the Trustee
an amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest (and interest thereon, if any) or will make arrangements 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

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entitled to such Defaulted Interest (and interest thereon, if any) as in this clause
(i) provided. Thereupon the Trustee will fix a Special Record Date for the payment of such
Defaulted Interest (and interest thereon, if any) which will be not more than 15 calendar
days and not less than 10 calendar days prior to the date of the proposed payment and not
less than 10 calendar days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee will promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, will 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 of Securities of such series at his address as it appears in
the Security Register, not less than 10 calendar days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest (and interest thereon, if any) and
the Special Record Date therefor having been so mailed, such Defaulted Interest will be paid
to the Persons in whose names the Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date and will no
longer be payable pursuant to the following clause (ii).

               (ii) The Company may make payment of any Defaulted Interest (and interest thereon, if
any) on the Securities of any series in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities 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 (ii), such manner of payment
shall be deemed practicable by the Trustee.

          (c) Subject to the foregoing provisions of this Section 2.09, each Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
will carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

Section 2.10. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 2.09) any interest on such Security and for all other purposes
whatsoever, whether or not such Security shall be overdue, and neither the Company, the Trustee nor
any agent of the Company or the Trustee will be affected by notice to the contrary.

Section 2.11. Computation of Interest.

          Except as otherwise specified as contemplated by Section 2.01 for Securities of any series,
interest on the Securities of each series will be computed on the basis of a 360-day year
consisting of twelve 30-day months.

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Section 2.12. CUSIP Numbers.

          The Company in issuing any series of the Securities may use CUSIP numbers, if then generally
in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice
of redemption or exchange with respect to such series provided that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee of any change in the CUSIP numbers.

ARTICLE III.  Redemption of Securities.

Section 3.01. Applicability of Article.

          Securities of any series which are redeemable before their Stated Maturity will be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01
for Securities of any series) in accordance with this Article III.

Section 3.02. Election to Redeem; Notice to Trustee.

          (a) The election of the Company to redeem any Securities will be evidenced by a Board
Resolution. In case of any redemption at the election of the Company of less than all the
Securities of any series, the Company will, at least 60 calendar days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities of such series to be
redeemed. In the case of any redemption of Securities prior to the expiration of any restriction
on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the
Company will furnish the Trustee with an Officer’s Certificate evidencing compliance with such
restriction.

          (b) Notice of redemption of Securities to be redeemed at the election of the Company will be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company and will be irrevocable. Notice of redemption will be given by mail, first-class
postage prepaid, not less than 30 nor more than 60 calendar days prior to the Redemption Date, to
each Holder of Securities to be redeemed, at his address appearing in the Security Register. All
notices of redemption will state (i) the Redemption Date, (ii) the Redemption Price, (iii) if less
than all the Outstanding Securities of any series are to be redeemed, the identification (and, in
the case of partial redemption of any Securities, the principal amounts) of the particular
Securities to be redeemed, (iv) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security to be redeemed and, if applicable, that interest thereon will
cease to accrue on and after said date, (v) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, (vi) that the redemption is for a sinking fund, if
such is the case, and (vii) the specific provision of this Indenture pursuant to which such
Securities are to be redeemed.

          (c) If less than all the Securities of any series are to be redeemed, the particular
Securities to be redeemed will be selected not more than 60 calendar days prior to the

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Redemption Date by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, by such method as the Trustee may deem fair and appropriate and which may
provide for the selection for redemption of portions (equal to the minimum authorized denomination
for Securities of that series or any integral multiple thereof) of the principal amount of
Securities of such series of a denomination larger than the minimum authorized denomination for
Securities of that series. The Trustee will promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.

          (d) For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities will relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

Section 3.03. Deposit of Redemption Price.

          Prior to 10:00 a.m. New York City time on any Redemption Date specified in the notice of
redemption given as provided in Section 3.02, the Company will deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 6.03) an amount of money sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) any accrued interest on, all of the
Securities that are to be redeemed on that date.

Section 3.04. Securities Payable on Redemption Date.

          (a) Notice of redemption having been given as aforesaid, the Securities so to be redeemed
will, on the Redemption Date, become due and payable at the Redemption Price therein specified, and
from and after such date (unless the Company defaults in the payment of the Redemption Price and
accrued interest) such Securities will cease to accrue interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security will be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided,
however, that, unless otherwise specified as contemplated by Section 2.01, installments of
interest whose Stated Maturity is on or prior to the Redemption Date will be payable to the Holders
of such Securities, or one or more Predecessor Securities, registered as such at the close of
business on the relevant Record Dates in accordance with their terms and the provisions of Section
2.09.

          (b) If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium will, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

Section 3.05. Securities Redeemed in Part.

          Any Security that is to be redeemed only in part will be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company will execute, and the
Trustee will authenticate and deliver to the Holder of such Security without service

26

 

charge, a new Security or Securities of the same series and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.

ARTICLE IV.  Sinking Funds.

Section 4.01. Applicability of Article.

          The provisions of this Article IV will be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 2.01 for Securities
of such series. The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any
payment in excess of such minimum amount provided for by the terms of Securities of any series is
herein referred to as an “optional sinking fund payment.” If provided for by the terms of
Securities of any series, the amount of any sinking fund payment may be subject to reduction as
provided in Section 4.02. Each sinking fund payment with respect to Securities of a particular
series will be applied to the redemption of Securities of such series as provided for by the terms
of Securities of such series.

Section 4.02. Satisfaction of Sinking Fund Payments With Securities.

          The Company (a) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (b) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series, provided that such Securities have not been
previously so credited. Such Securities will be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through operation of
the sinking fund and the amount of such sinking fund payment will be reduced accordingly.

Section 4.03. Redemption of Securities for Sinking Fund.

          Not less than 60 calendar days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount
of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, that is to be satisfied by payment of cash and the portion thereof, if
any, that is to be satisfied by delivering and crediting Securities of that series pursuant to
Section 4.02 and will also deliver to the Trustee any Securities to be so delivered. Not less than
30 calendar days before each such sinking fund payment date, the Trustee will select the Securities
to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02(c) and
cause notice of the redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 3.02(b). Such notice having been duly given, the redemption of
such Securities will be made upon the terms and in the manner stated in Sections 3.04 and 3.05.

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ARTICLE V.  Defeasance And Covenant Defeasance.

Section 5.01. Company’s Option to Effect Defeasance or Covenant Defeasance.

          The Company may elect, at its option by Board Resolution at any time, to have either Section
5.02 or Section 5.03 applied to the Outstanding Securities of any series designated pursuant to
Section 2.01 as being defeasible pursuant to this Article V (hereinafter called “Defeasible
Series”), upon compliance with the conditions set forth below in this Article V, provided
that Section 5.02 will not apply to any series of Securities that is convertible into Common Stock
pursuant to Section 2.01(b)(xvi) or convertible into or exchangeable for any other securities
pursuant to Section 2.01(b)(xvii).

Section 5.02. Defeasance and Discharge.

          Upon the Company’s exercise of the option provided in Section 5.01 to have this Section 5.02
applied to the Outstanding Securities of any Defeasible Series and subject to the proviso to
Section 5.01, the Company will be deemed to have been discharged from its obligations with respect
to the Outstanding Securities of such series as provided in this Section 5.02 on and after the date
the conditions set forth in Section 5.04 are satisfied (hereinafter called “Defeasance”). For this
purpose, such Defeasance means that the Company will be deemed to have paid and discharged the
entire indebtedness represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under the Securities of such series and this Indenture insofar as the
Securities of such series are concerned (and the Trustee, at the expense of the Company, will
execute proper instruments acknowledging the same), subject to the following which will survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders of Securities of
such series to receive, solely from the trust fund described in Section 5.04 and as more fully set
forth in Section 5.04, payments in respect of the principal of and any premium and interest on such
Securities of such series when payments are due, (b) the Company’s obligations with respect to the
Securities of such series under Sections 2.05, 2.06, 2.07, 6.02, 6.03, and 10.06, (c) the rights,
powers, trusts, duties, and immunities of the Trustee hereunder, and (d) this Article V. Subject
to compliance with this Article V, the Company may exercise its option provided in Section 5.01 to
have this Section 5.02 applied to the Outstanding Securities of any Defeasible Series
notwithstanding the prior exercise of its option provided in Section 5.01 to have Section 5.03
applied to the Outstanding Securities of such series.

Section 5.03. Covenant Defeasance.

          Upon the Company’s exercise of the option provided in Section 5.01 to have this Section 5.03
applied to the Outstanding Securities of any Defeasible Series, (a) the Company will be released
from its obligations under Section 6.04, Section 11.01, and the provisions of any indenture
supplemental hereto specified in such supplemental indenture, and (b) the occurrence of any event
specified in Sections 8.01(a)(iii), 8.01(a)(iv) (with respect to Section 6.04, Section 11.01, and
the provisions of any indenture supplemental hereto specified in such supplemental indenture),
8.01(a)(v) and 8.01(a)(viii) will be deemed not to be or result in an Event of Default, in each
case with respect to the Outstanding Securities of such series as provided in this Section on and
after the date the conditions set forth in Section 5.04 are satisfied (hereinafter called

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“Covenant Defeasance”). For this purpose, such Covenant Defeasance means that the Company may
omit to comply with and will have no liability in respect of any term, condition, or limitation set
forth in any such specified Section (to the extent specified above in the case of Section
8.01(a)(iv) or in any such specified provision of such supplemental indenture), whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or provision or by
reason of any reference in any such Section or provision to any other provision herein or in any
other document, but the remainder of this Indenture and the Securities of such series will be
unaffected thereby.

Section 5.04. Conditions to Defeasance or Covenant Defeasance.

          The following will be the conditions to application of either Section 5.02 or Section 5.03 to
the Outstanding Securities of any Defeasible Series:

     (a) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee that satisfies the requirements contemplated by Section 9.08 and
agrees to comply with the provisions of this Article V applicable to it) as trust funds in
trust for the benefit of the Holders of Outstanding Securities of such series (i) money in
an amount, or (ii) U.S. Government Obligations that through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will provide,
without reinvestment, not later than one day before the due date of any payment, money in an
amount, or (iii) a combination thereof, in each case sufficient to pay and discharge, and
which will be applied by the Trustee (or any such other qualifying trustee) to pay and
discharge, the principal of and any premium and interest on the Securities of such series on
the respective Stated Maturities or on any earlier date or dates on which the Securities of
such series shall be subject to redemption and the Company shall have given the Trustee
irrevocable instructions satisfactory to the Trustee to give notice to the Holders of the
redemption of the Securities of such series, all in accordance with the terms of this
Indenture and the Securities of such series.

     (b) In the case of an election under Section 5.02, the Company shall have delivered to
the Trustee an Opinion of Counsel (from a counsel who shall not be an employee of the
Company) to the effect that (i) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling, or (ii) since the date of this Indenture there
has been a change in the applicable federal income tax law, in either case to the effect
that, and based thereon, such opinion shall confirm that, the Holders of the Outstanding
Securities of such series will not recognize gain or loss for federal income tax purposes as
a result of the deposit, Defeasance, and discharge to be effected with respect to the
Securities of such series and will be subject to federal income tax on the same amount, in
the same manner, and at the same times as would be the case if such deposit, Defeasance, and
discharge were not to occur.

     (c) In the case of an election under Section 5.03, the Company shall have delivered to
the Trustee an Opinion of Counsel (from a counsel who shall not be an employee of the
Company) to the effect that the Holders of the Outstanding Securities of such series will
not recognize gain or loss for federal income tax purposes as a result of the deposit and
Covenant Defeasance to be effected with respect to the Securities of such

29

 

series and will be subject to federal income tax on the same amount, in the same
manner, and at the same times as would be the case if such deposit and Covenant Defeasance
were not to occur.

     (d) The Company shall have delivered to the Trustee an Officer’s Certificate to the
effect that the Securities of such series, if then listed on any securities exchange, will
not be delisted solely as a result of such deposit.

     (e) No Event of Default or event that (after notice or lapse of time or both) would
become an Event of Default shall have occurred and be continuing at the time of such deposit
or, with regard to any Event of Default or any such event specified in Sections 8.01(a)(vi)
and (vii), at any time on or prior to the 90th calendar day after the date of such deposit
(it being understood that this condition will not be deemed satisfied until after such 90th
calendar day).

     (f) Such Defeasance or Covenant Defeasance will not cause the Trustee to have a
conflicting interest within the meaning of the Trust Indenture Act (assuming all Securities
are in default within the meaning of such Act).

     (g) Such Defeasance or Covenant Defeasance will not result in a breach or violation of,
or constitute a default under, any other agreement or instrument to which the Company is a
party or by which it is bound.

     (h) The Company shall have delivered to the Trustee a certificate from a nationally
recognized firm of independent accountants or other Person acceptable to the Trustee
expressing their opinion that the payments of principal and interest when due and without
reinvestment on the deposited U.S. Government Obligations plus any deposited money without
investment will provide the cash at such times and in such amounts as will be sufficient to
pay the principal of and any premium and interest when due on the Securities of such series
on the respective Stated Maturities or on any earlier date or dates on which the Securities
of such series shall be subject to redemption.

     (i) The Company shall have delivered to the Trustee an Officer’s Certificate and an
Opinion of Counsel, each stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.

     (j) Such Defeasance or Covenant Defeasance will not result in the trust arising from
such deposit constituting an investment company within the meaning of the Investment Company
Act of 1940, as amended, unless such trust will be qualified under such Act or will be
exempt from regulation thereunder.

Section 5.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other Miscellaneous Provisions.

           (a) Subject to the provisions of Section 6.03(e), all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee or other qualifying trustee (solely for
purposes of this Section 5.05 and Section 5.06, the Trustee and any such other trustee are referred
to collectively as the “Trustee”) pursuant to Section 5.04 in respect

30

 

of the Securities of any Defeasible Series will be held in trust and applied by the Trustee,
in accordance with the provisions of the Securities of such series and this Indenture, to the
payment, either directly or through any such Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Holders of Securities of such series, of all
sums due and to become due thereon in respect of principal and any premium and interest, but money
so held in trust need not be segregated from other funds except to the extent required by law.

          (b) The Company will pay and indemnify the Trustee against any tax, fee, or other charge
imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 5.04
or the principal and interest received in respect thereof other than any such tax, fee, or other
charge that by law is for the account of the Holders of Outstanding Securities.

          (c) Notwithstanding anything in this Article V to the contrary, the Trustee will deliver or
pay to the Company from time to time upon a Company Request any money or U.S. Government
Obligations held by it as provided in Section 5.04 with respect to Securities of any Defeasible
Series that are in excess of the amount thereof that would then be required to be deposited to
effect an equivalent Defeasance or Covenant Defeasance with respect to the Securities of such
series.

Section 5.06. Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article V with respect to the Securities of any series by reason of any order or judgment of any
court or governmental authority enjoining, restraining, or otherwise prohibiting such application,
then the Company’s obligations under this Indenture and the Securities of such series will be
revived and reinstated as though no deposit had occurred pursuant to this Article V with respect to
Securities of such series until such time as the Trustee or Paying Agent is permitted to apply all
money held in trust pursuant to Section 5.05 with respect to Securities of such series in
accordance with this Article V; provided, however, that if the Company makes any
payment of principal of or any premium or interest on any Security of such series following the
reinstatement of its obligations, the Company will be subrogated to the rights of the Holders of
Securities of such series to receive such payment from the money so held in trust.

ARTICLE VI.  Particular Covenants of the Company.

Section 6.01. Payment of Principal, Premium and Interest on Securities.

          The Company, for the benefit of each series of Securities, will duly and punctually pay the
principal of and any premium and interest on the Securities of that series in accordance with the
terms of such Securities and this Indenture.

Section 6.02. Maintenance of Office or Agency.

          (a) The Company will maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or

31

 

exchange, and where notices and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time
the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices, and demands may be made
or served at the Corporate Trust Office, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices, and demands.

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

Section 6.03. Money for Securities Payments to be Held in Trust.

          (a) If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of or any premium or interest on
any of the Securities of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the principal and any premium and 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.

          (b) Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on any Securities of
that series, 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.

          (c) The Company will cause each Paying Agent for any series of Securities other than the
Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent will agree
with the Trustee, subject to the provisions of this Section 6.03, 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 Securities of
that series) in the making of any payment in respect of the Securities of that series, and upon the
written request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities of that series.

          (d) 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

32

 

Paying Agent to the Trustee, such Paying Agent will be released from all further liability
with respect to such money.

          (e) 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 any premium or interest on any Security of any series
and remaining unclaimed for two years after such principal, premium, or interest has become due and
payable will be paid to the Company upon a Company Request (or, if then held by the Company, will
be discharged from such trust); and the Holder of such Security will 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, will 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 newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City of New York, notice
that such money remains unclaimed and that, after a date specified therein, which will not be less
than 30 calendar days from the date of such publication, any unclaimed balance of such money then
remaining will be repaid to the Company.

Section 6.04. Existence.

          Subject to Article XI, the Company will, and will cause each of its Subsidiaries to, 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 no
Subsidiary of the Company will be required to preserve its existence, and neither the Company nor
any Subsidiary of the Company will be required to preserve any such right or franchise, if the
Board of Directors determines that the preservation thereof is no longer desirable in the conduct
of the business of the Company and that the loss thereof will not result in a Material Adverse
Effect.

Section 6.05. Statement by Officers as to Default.

          The Company will deliver to the Trustee, within 120 calendar days after the end of each fiscal
year of the Company ending after the date hereof, an Officer’s Certificate signed by the principal
executive officer, principal financial officer, or principal accounting officer of the Company
stating whether or not to the knowledge of such person after due inquiry the Company is in default
in the performance and observance of any of the terms, provisions, and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided hereunder) and, if the
Company is in default, specifying all such defaults and the nature and status thereof of which such
person may have such knowledge.

Section 6.06. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any term, provision, or
condition set forth in Section 6.04 and the provisions of any supplemental indenture specified in
such supplemental indenture, with respect to the Securities of any series if the Holders of a
majority in principal amount of the Outstanding Securities of such series shall, by Act of such
Holders, either waive such compliance in such instance or generally waive

33

 

compliance with such term, provision, or condition, but no such waiver will extend to or
affect such term, provision, or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision, or condition will remain in full force and effect.

ARTICLE VII.  Securities Holders’ Lists and Reports by

the Company and the Trustee.

Section 7.01. 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 calendar days after the applicable Regular Record Date, a list for each series of
Securities, in such form as the Trustee may reasonably require, of the names and addresses of the
Holders of Securities of such series as of such Regular Record Date and (b) at such other times as
the Trustee may request in writing, within 30 calendar 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 calendar days prior
to the time such list is furnished; excluding from any such list names and addresses
received by the Trustee in its capacity as Security Registrar.

Section 7.02. Preservation of Information; Communication to Holders.

          (a) The Trustee will 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 7.01 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01
upon receipt of a new list so furnished.

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

          (c) Every Holder of Securities, 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 will be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

Section 7.03. Reports by Trustee.

          The Trustee will 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. A copy of each such report will, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities
are listed, with the Commission, and with the Company. The Company will promptly notify the
Trustee when any Securities are listed on any stock exchange or of any delisting thereof.

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Section 7.04. Reports by Company.

          The Company will file with the Trustee and the Commission, and transmit to Holders, such
information, documents, and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant thereto;
provided that any such information, documents, or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act will be filed with the Trustee
within 15 calendar days after the same is so required to be filed with the Commission.

          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, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to conclusively rely exclusively on Officers’
Certificates).

ARTICLE VIII.  Default.

Section 8.01. Event of Default.

          (a) “Event of Default,” wherever used herein with respect to Securities of any series, means
any one of the following events (whatever the reason for such Event of Default and whether it may
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):

               (i) default in the payment of any interest on any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 calendar days;

               (ii) default in the payment of the principal of (or premium, if any, on) any Security
of that series when it becomes due and payable;

               (iii) default in (A) the making of any sinking fund payment when and as due by the
terms of a Security of that series or (B) the redemption of any Security of that series as
required pursuant to the terms and conditions thereof;

               (iv) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than a covenant or warranty, a default in the performance or breach
of which is elsewhere in this Section 8.01 specifically dealt with or which has expressly
been included in this Indenture solely for the benefit of one or more series of Securities
other than that series), and continuance of such default or breach for a period of 60
calendar days after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal
amount of the Outstanding Securities of that series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a “Notice of
Default” hereunder;

35

 

               (v) any nonpayment at maturity or other default is made under any agreement or
instrument relating to any other Indebtedness of the Company or a Significant Subsidiary
(the unpaid principal amount of which is not less than $15 million), and, in any such case,
such default (A) continues beyond any period of grace provided with respect thereto and (B)
results in such Indebtedness becoming due prior to its stated maturity or occurs at the
final maturity of such Indebtedness; provided, however, that, subject to the
provisions of Section 9.01 and 8.08, the Trustee will not be deemed to have knowledge of
such nonpayment or other default unless either (1) a Responsible Officer of the Trustee has
actual knowledge of nonpayment or other default or (2) the Trustee has received written
notice thereof from the Company, from any Holder, from the holder of any such Indebtedness
or from the trustee under the agreement or instrument relating to such Indebtedness;

               (vi) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company or a Significant Subsidiary in an involuntary case or
proceeding under any applicable federal or state bankruptcy, insolvency, reorganization, or
other similar law or (B) a decree or order adjudging the Company or a Significant Subsidiary
a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment, or composition of or in respect of the Company or a Significant
Subsidiary under any applicable federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator, or other similar official of the Company (or a
Significant Subsidiary) or of any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any such decree or order for relief
or any such other decree or order unstayed and in effect for a period of 60 consecutive
calendar days;

               (vii) the commencement by the Company or a Significant Subsidiary of a voluntary case
or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization,
or other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree or order for relief in respect of
the Company or a Significant Subsidiary in an involuntary case or proceeding under any
applicable federal or state bankruptcy, insolvency, reorganization, or other similar law or
to the commencement of any bankruptcy or insolvency case or proceeding against it, or the
filing by it of a petition or answer or consent seeking reorganization or relief with
respect to the Company or a Significant Subsidiary under any applicable federal or state
bankruptcy, insolvency, reorganization, or other similar law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator, or other similar official of the
Company (or a Significant Subsidiary) or of any substantial part of its property pursuant to
any such law, or the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally as they become due,
or the taking of corporate action by the Company or a Significant Subsidiary in furtherance
of any such action; or

               (viii) any other Event of Default provided with respect to Securities of that series.

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          (b) If an Event of Default (other than an Event of Default arising under Section 8.01(a)(vi)
or (vii)) with respect to Securities of any series at the time Outstanding occurs and is
continuing, then in every case the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Securities of that series may declare the principal amount (or, if any of the
Securities of that series are Original Issue Discount Securities, such portion of the principal
amount of such Securities as may be specified in the terms thereof) of all of the Securities of
that series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount) will become immediately due and payable. If an Event of Default under Section 8.01(a)(vi)
or (vii) occurs, then the principal of, premium, if any, and accrued interest on the Securities
shall become immediately due and payable without any declaration or other act on the part of the
Trustee or any Holder.

          (c) At any time after such a declaration of acceleration with respect to Securities of any
series has been made and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter in this Article VIII provided, the Holders of a majority in principal
amount of the Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if (i) the Company has paid or
deposited with the Trustee a sum sufficient to pay (A) all overdue interest on all Securities of
that series, (B) the principal of (and premium, if any, on) any Securities of that series which
have become due otherwise than by such declaration of acceleration and any interest thereon at the
rate or rates prescribed therefor in such Securities, (C) to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such
Securities, and (D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements, and advances of the Trustee and its agents and counsel and
(ii) all Events of Default with respect to Securities of that series, other than the non-payment of
the principal of Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 8.01(d). No such rescission will
affect any subsequent default or impair any right consequent thereon.

          (d) The Holders of a majority in principal amount of the Outstanding Securities of any series
may on behalf of the Holders of all the Securities of such series waive any past default hereunder
with respect to such series and its consequences, except a default (i) in the payment of the
principal of or any premium or interest on any Security of such series or (ii) in respect of a
covenant or provision hereof which under Article X cannot be modified or amended without the
consent of the Holder of each Outstanding Security of such series affected. Upon any such waiver,
such default will cease to exist, and any Event of Default arising therefrom will be deemed to have
been cured, for every purpose of this Indenture, but no such waiver will extend to any subsequent
or other default or impair any right consequent thereon.

Section 8.02. Covenant of Company to Pay to Trustee Whole Amount Due on Securities on Default in Payment of Interest or Principal; Suits for Enforcement by Trustee.

          (a) The Company covenants that if (i) default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default

37

 

continues for a period of 30 calendar days or (ii) default is made in the payment of the
principal of (or premium, if any, on) any Security when it becomes due and payable, the Company
will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the
whole amount then due and payable on such Securities for principal and any premium and interest
and, to the extent that payment of such interest shall be legally enforceable, interest on any
overdue principal and premium and on any overdue interest, at the rate or rates prescribed therefor
in such Securities, and, in addition thereto, such further amount as will be sufficient to cover
the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel. If the Company shall fail
forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an
express trust, shall be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any such action or
proceeding to judgment or final decree, and may enforce any such judgment or final decree against
the Company and collect in the manner provided by law out of the property of the Company, wherever
situated, the moneys adjudged or decreed to be payable.

          (b) If an Event of Default with respect to Securities of any series occurs and is continuing,
the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series 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.

          (c) In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee will 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 will be authorized to collect and receive any money 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 consents 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 and its agents and counsel, and any other amounts due the Trustee under
Section 9.06.

          (d) No provision of this Indenture will be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment, or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.

          (e) All rights of action and claims under this Indenture or the Securities may be prosecuted
and enforced by the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted by

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the Trustee will be brought in its own name as trustee of an express trust, and any recovery
of judgment will, after provision for the payment of the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel, be for the ratable benefit
of the Holders of the Securities in respect of which such judgment has been recovered.

Section 8.03. Application of Money Collected by Trustee.

          Any money collected by the Trustee pursuant to this Article VIII will 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 any premium or interest, upon presentation of the Securities 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 9.06;
	 
	 	 	 	 
	 

	 	SECOND:
	 	To the payment of the amounts then due and unpaid for principal of and any
premium and interest on the Securities in respect of which or for the benefit
of which such money has been collected, ratably, without preference or priority
of any kind, except to the extent that the Securities of a series are by their
express terms subordinated and subject in right of payment to the prior payment
of other indebtedness, according to the amounts due and payable on such
Securities for principal and any premium and interest, respectively; and
	 
	 	 	 	 
	 

	 	THIRD:
	 	To the Company, its successors or assigns, or to such other Person that may
be lawfully entitled to receive the same.

Section 8.04. Limitation on Suits by Holders of Securities.

          No Holder of any Security of any series will 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 (a) such Holder has previously given written
notice to the Trustee of a continuing Event of Default with respect to the Securities of that
series, (b) the Holders of not less than 25% in principal amount of the Outstanding Securities of
that series have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder, (c) such Holder or Holders have furnished to
the Trustee reasonable indemnity against the costs, expenses, and liabilities to be incurred in
compliance with such request, (d) the Trustee for 60 calendar days after its receipt of such
notice, request, and indemnity has failed to institute any such proceeding, and (e) no direction
inconsistent with such written request has been given to the Trustee during such 60-day period by
the Holders of a majority in principal amount of the Outstanding Securities of that series, it
being understood and intended that no one or more of such Holders will 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 of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under

39

 

this Indenture, except in the manner herein provided and for the equal and ratable benefit of
all of such Holders.

Section 8.05. Rights and Remedies Cumulative; Delay or Omission in Exercise of Rights not a Waiver of Event of Default.

          (a) Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost, or stolen Securities in the last paragraph of Section 2.07, 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 will, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

          (b) No delay or omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default will 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 VIII 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 8.06. Rights of Holders of Majority in Principal Amount of Outstanding Securities to Direct Trustee.

          The Holders of a majority in principal amount of the Outstanding Securities of any series will
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, with respect
to the Securities of such series, provided that (a) such direction will not be in conflict
with any rule of law or with this Indenture and (b) the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.

Section 8.07. Requirement of an Undertaking to Pay Costs in Certain Suits Under the Indenture or Against the Trustee.

          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 costs against any such party litigant, in the manner and to the extent provided in the
Trust Indenture Act; provided that neither this Section 8.07 nor the Trust Indenture Act
will 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 by the Trustee.

Section 8.08. Notice of Defaults.

          If a Default occurs hereunder with respect to Securities of any series, the Trustee will give
the Holders of Securities of such series notice of such Default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any Default of

40

 

the character specified in Section 8.01(a)(iv) with respect to Securities of such series no
such notice to Holders will be given until at least 30 calendar days after the occurrence thereof.
The Company will give the Trustee notice of any uncured Event of Default within 10 days after any
Responsible Officer of the Company becomes aware of or receives actual notice of such Event of
Default.

Section 8.09. Unconditional Right of Holders to Receive Principal, Premium, and Interest.

          Notwithstanding any other provision in this Indenture, the Holder of any Security will have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 2.09) interest on such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption, on the Redemption Date) and to institute
suit for the enforcement of any such payment, and such rights may not be impaired without the
consent of such Holder.

Section 8.10. 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 will be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders will continue as though no such proceeding had been
instituted.

Section 8.11. Trustee May File Proofs of Claims.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements, and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceeding relative to the Company or the Subsidiaries (or any
other obligor upon the Securities), their creditors or their property and shall be entitled and
empowered to collect and receive any monies or other property payable or deliverable on any such
claim and to distribute the same, and any custodian in any such judicial proceedings is hereby
authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements, and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee hereunder. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting
the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceeding.

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ARTICLE IX.  Concerning the Trustee.

Section 9.01. Certain Duties and Responsibilities.

          The duties and responsibilities of the Trustee will be as provided by the Trust Indenture Act.
Notwithstanding the foregoing, no provision of this Indenture will 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. 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 will be subject to the provisions of this
Section 9.01.

Section 9.02. Certain Rights of Trustee.

          Subject to the provisions of Section 9.01: (a) the Trustee may conclusively rely and will be
protected in acting or refraining from acting upon, whether in its original or facsimile form, 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 will be sufficiently evidenced by a
Company Request or Company Order and any resolution of the Board of Directors will 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 Officer’s Certificate; (d)
the Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion
of Counsel will 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 will 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 furnished to the Trustee reasonable security or indemnity against the costs, expenses, and
liabilities which might be incurred by it in compliance with such request or direction; (f) the
Trustee will 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 will be entitled to examine the books, records, and premises of the Company,
personally or by agent or attorney, at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation; (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 will not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it hereunder; and (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.

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Section 9.03. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities, 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 Securities. The
Trustee or any Authenticating Agent will not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

Section 9.04. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar, or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 9.07 and 9.12, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar, or such other agent.

Section 9.05. Money Held in Trust.

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

Section 9.06. Compensation and Reimbursement.

          The Company will (a) pay to the Trustee from time to time such compensation for all services
rendered by it hereunder as the parties shall agree from time to time (which compensation will not
be limited to any provision of law in regard to the compensation of a trustee of an express trust);
(b) except as otherwise expressly provided herein, reimburse the Trustee upon its request for all
reasonable expenses, disbursements, and advances incurred or made by the Trustee in accordance with
provision of this Indenture (including the reasonable compensation and the expenses and
disbursements of agents and counsel), except any such expense, disbursement, or advance as may be
attributable to its negligence or bad faith; and (c) indemnify each of the Trustee and any
predecessor Trustee for, and hold the Trustee harmless against, any and all loss, liability, claim,
or expense 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 or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

          When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 8.01(a)(vi) or Section 8.01(a)(vii), the expenses (including the reasonable
charges and expenses of its counsel) and the compensation for such services are intended to
constitute expenses of administration under any applicable federal or state bankruptcy, insolvency
or other similar law.

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Section 9.07. Disqualification; Conflicting Interests.

          If the Trustee has or acquires a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee will 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 9.08. Corporate Trustee Required Eligibility.

          There will at all times be one or more Trustees hereunder with respect to the Securities of
each series, at least one of which will 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 million. If
such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of a supervising or examining state or federal authority, then for the purposes of
this Section 9.08, 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 9.08, it will resign immediately in the manner and with the effect hereinafter specified in
this Article IX.

Section 9.09. Resignation and Removal; Appointment of Successor.

          (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article IX will become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 9.10.

          (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 9.10 shall not have been delivered to the Trustee within 30 calendar
days after the giving of such notice of resignation, the resigning Trustee may at the expense of
the Company petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

          (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company.

          (d) If, at any time, (i) the Trustee fails to comply with Section 9.07 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least
six months, (ii) the Trustee ceases to be eligible under Section 9.08 and fails to resign after
written request therefor by the Company or by any such Holder, or (iii) the Trustee becomes
incapable of acting or is adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
property is appointed or any public officer takes 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 with respect to all
Securities or (B) subject to Section 8.07, any Holder who has been a bona fide Holder of a Security
for at least six months may, on behalf of himself and all others similarly situated,

44

 

petition any court of competent jurisdiction for the removal of the Trustee with respect to
all Securities and the appointment of a successor Trustee or Trustees.

          (e) If the Trustee resigns, is removed, or becomes incapable of acting, or if a vacancy occurs
in the office of Trustee for any cause, with respect to the Securities of one or more series, the
Company by a Board Resolution will promptly appoint a successor Trustee or Trustees with respect to
the Securities of that or those series (it being understood that any such successor Trustee may be
appointed with respect to the Securities of one or more or all of such series and that at any time
there will be only one Trustee with respect to the Securities of any particular series) and will
comply with the applicable requirements of Section 9.10. If, within one year after such
resignation, removal, or incapability or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series is appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the Company and the
retiring Trustee, the successor Trustee so appointed will, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 9.10, become the successor
Trustee with respect to the Securities of such series and to that extent supersede the successor
Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 9.10, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others similarly situated, at the
expense of the Company, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

          (f) The Company will give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series to all Holders of Securities of such series in the manner provided in
Section 13.03. Each notice will include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

Section 9.10. Acceptance of Appointment by Successor.

          (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed will 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 will become effective and such successor Trustee,
without any further act, deed, or conveyance, will 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 will, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers, and duties of the retiring Trustee
and will duly assign, transfer, and deliver to such Trustee all property and money held by such
retiring Trustee hereunder.

          (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee, and each successor Trustee
with respect to the Securities of one or more series will execute and deliver an indenture
supplemental hereto wherein such successor Trustee will accept such

45

 

appointment and which (i) will contain such provisions as may be necessary or desirable to
transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts, and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (ii) will contain such provisions as may be deemed
necessary or desirable to confirm that all the rights, powers, trusts, and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the retiring Trustee is
not retiring will continue to be vested in the retiring Trustee, and (iii) will add to or change
any of the provisions of this Indenture as may be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture will constitute such Trustees co-trustees of the same
trust and that each such Trustee will be trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Trustees and upon the execution
and delivery of such supplemental indenture the resignation or removal of the retiring Trustee will
become effective to the extent provided therein and each such successor Trustee, without any
further act, deed, or conveyance, will become vested with all the rights, powers, trusts, and
duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates; but on request of the Company or any successor
Trustee, such retiring Trustee will duly assign, transfer, and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.

          (c) Upon request of any such successor Trustee, the Company will execute any and all
instruments reasonably required to more fully and certainly vest in and confirm to such successor
Trustee all applicable rights, powers, and trusts referred to in the preceding paragraphs of this
Section 9.10.

          (d) No successor Trustee will accept its appointment unless at the time of such acceptance
such successor Trustee is qualified and eligible under this Article IX.

Section 9.11. 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 may be a party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee, will be the successor of the Trustee hereunder, provided
such corporation is otherwise qualified and eligible under this Article IX, without the execution
or filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities 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 Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

Section 9.12. Preferential Collection of Claims Against Company.

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

46

 

Section 9.13. Appointment of Authenticating Agent.

          (a) The Trustee may appoint an Authenticating Agent or Agents with respect to one or more
series of Securities which will be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon original issue and upon exchange, registration of transfer,
or partial redemption thereof or pursuant to Section 2.07, and Securities so authenticated will be
entitled to the benefits of this Indenture and will 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 Securities by the Trustee or the Trustee’s certificate of
authentication, such reference will 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
9.13, the combined capital and surplus of such Authenticating Agent will 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 9.13, such Authenticating Agent will resign immediately in the manner and with the
effect specified in this Section 9.13.

          (b) 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 may be a party, or any corporation succeeding to
the corporate agency or corporate trust business of an Authenticating Agent, will continue to be an
Authenticating Agent, provided such corporation is otherwise eligible under this Section
9.13, without the execution or filing of any paper or any further act on the part of the Trustee or
the Authenticating Agent.

          (c) 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 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 this Section
9.13, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the
Company and will mail written notice of such appointment by first-class mail, postage prepaid, to
all Holders of Securities of the series with respect to which such Authenticating Agent will serve,
as their names and addresses appear in the Security Register. Any successor Authenticating Agent
upon acceptance of its appointment hereunder will 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 will be appointed unless eligible under the provisions of
this Section 9.13.

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          (d) The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 9.13.

          (e) If an appointment with respect to one or more series of Securities is made pursuant to
this Section 9.13, the Securities of such series may have endorsed thereon, in addition to the
Trustee’s certificate of authentication, an alternative form of certificate of authentication in
the following form:

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 
	 

	 	                    , as Trustee

	 	 	 	 	 	 	 
	Dated:

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	As Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

Section 9.14. Trustee’s Application for Instruction from the Company.

          Any application by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under
this Indenture and the date on and/or after which such action is proposed to be taken or such
omission is proposed to be effective. In the case of any proposed action or omission expressly
authorized by this Indenture, the Trustee shall not be liable for any action taken by, or omission
of, the Trustee in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business Days after the date
any officer of the Company actually receives such application by telecopy, e-mail, or otherwise
(provided that such receipt shall have been confirmed by the Trustee), unless any such officer
shall have consented in writing to any earlier date) unless prior to taking any such action (or the
effective date in the case of an omission), the Trustee shall have received written instructions in
response to such application specifying the action to be taken or omitted.

ARTICLE X.  Supplemental Indentures And Certain Actions.

Section 10.01. Purposes for Which Supplemental Indentures May Be Entered Into Without Consent of Holders.

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

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     (a) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the Securities, all to the
extent otherwise permitted hereunder;

     (b) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are expressly being included solely for
the benefit of such series) or to surrender any right or power herein conferred upon the
Company;

     (c) to add any additional Events of Default;

     (d) to add to or change any of the provisions of this Indenture to such extent as may
be necessary to permit or facilitate the issuance of Securities in bearer form, registrable
or not registrable as to principal, and with or without interest coupons, or to permit or
facilitate the issuance of Securities in uncertificated form;

     (e) to add to, change, or eliminate any of the provisions of this Indenture in respect
of one or more series of Securities, provided that any such addition, change, or
elimination (i) will neither (A) apply to any Security of any series created prior to the
execution of such supplemental indenture and entitled to the benefit of such provision nor
(B) modify the rights of the Holder of any such Security with respect to such provision or
(ii) will become effective only when there is no such Security Outstanding;

     (f) to establish the terms or form of Securities of any series as permitted by Sections
2.01 and 2.02;

     (g) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as may be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 9.10; or

     (h) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture, provided that
such action pursuant to this clause (h) will not adversely affect the interests of the
Holders of Securities of any series in any material respect.

Section 10.02. Modification of Indenture with Consent of Holders of at Least a Majority in Principal Amount of Outstanding Securities.

          (a) With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture, by 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 Securities

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of such series under this Indenture; provided, however, that no such
supplemental indenture will, without the consent of the Holder of each Outstanding Security
affected thereby:

               (i) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 8.01(b), or change
any Place of Payment where, or the coin or currency in which, any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the enforcement of
any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on
or after the Redemption Date);

               (ii) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of the Holders of which is required for any such supplemental indenture,
or the consent of the Holders of which is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their consequences)
provided for in this Indenture; or

               (iii) modify any of the provisions of this Section 10.02, Section 8.01(d) or Section
6.06, except to increase the percentage in principal amount of Holders required under any
such Section or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Outstanding Security affected
thereby, provided, however, that this clause (iii) will not be deemed to
require the consent of any Holder with respect to changes in the references to “the Trustee”
and concomitant changes in this Section 10.02 and Section 6.06, or the deletion of this
proviso, in accordance with the requirements of Sections 9.10 and 10.01(g).

          (b) A supplemental indenture which changes or eliminates any covenant or other provision of
this Indenture which has expressly been included solely for the benefit of one or more particular
series of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, will be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

          (c) It will not be necessary for any Act of Holders under this Section 10.02 to approve the
particular form of any proposed supplemental indenture, but it will be sufficient if such Act
approves the substance thereof.

Section 10.03. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article X or the modifications thereby of the trusts created by this Indenture,
the Trustee will be entitled to receive, and (subject to Section 9.01) will be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The

50

 

Trustee may, but will not be obligated to, enter into any such supplemental indenture which
affects the Trustee’s own rights, duties, or immunities under this Indenture or otherwise.

Section 10.04. Effect of Supplemental Indentures.

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

Section 10.05. Conformity with Trust Indenture Act.

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

Section 10.06. Reference in Securities to Supplemental Indentures.

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

ARTICLE XI.  Consolidation, Merger, Sale, or Transfer.

Section 11.01. Consolidations and Mergers of Company and Sales Permitted Only on Certain Terms.

          (a) The Company shall not consolidate with or merge with or into any other Person, or transfer
(by lease, assignment, sale, or otherwise) all or substantially all of its properties and assets to
another Person unless (i) either (A) the Company shall be the continuing or surviving Person in
such a consolidation or merger or (B) the Person (if other than the Company) formed by such
consolidation or into which the Company is merged or to which all or substantially all of the
properties and assets of the Company are transferred (the Company or such other Person being
referred to as the “Surviving Person”) shall be a corporation, partnership, limited liability
company, business trust, trust or other legal entity organized and validly existing under the laws
of the United States, any State thereof, or the District of Columbia, and shall expressly assume,
by an indenture supplemental hereto, all of the obligations of the Company under the Securities and
the Indenture, (ii) immediately after the transaction and the incurrence or anticipated incurrence
of any Indebtedness to be incurred in connection therewith, no Default will exist, and (iii) an
Officer’s Certificate has been delivered to the Trustee to the effect that the conditions set forth
in the preceding clauses (i) and (ii) have been satisfied and an Opinion of Counsel (from a counsel
who shall not be an employee of the Company) has been delivered to the Trustee to the effect that
the conditions set forth in the preceding clause (i) have been satisfied.

51

 

          (b) The Surviving Person will succeed to and be substituted for the Company with the same
effect as if it had been named herein as a party hereto, and thereafter the predecessor corporation
will be relieved of all obligations and covenants under this Indenture and the Securities.

ARTICLE XII.  Satisfaction and Discharge of Indenture.

Section 12.01. Satisfaction and Discharge of Indenture.

          This Indenture will upon a Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for), and the Trustee, at the expense the Company, will execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when: (a) either (i) all Securities theretofore
authenticated and delivered (other than (A) Securities which have been destroyed, lost, or stolen
and which have been replaced or paid as provided in Section 2.07 and (B) Securities for the payment
of which money has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as provided in Section
6.03) have been delivered to the Trustee for cancellation or (ii) all such Securities not
theretofore delivered to the Trustee for cancellation (A) have become due and payable, (B) will
become due and payable at their Stated Maturity within one year, or (C) are to be called for
redemption within one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption by the Trustee in the name, and at the expense, of the Company, and the Company, in
the case of clause (A), (B), or (C) above, has deposited or caused to be deposited with the Trustee
as trust funds in trust for such purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for
principal and any premium and interest to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; (b)
the Company has paid or caused to be paid all other sums payable hereunder by the Company; and (c)
the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each
stating that all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been satisfied. Notwithstanding the satisfaction and discharge of
this Indenture, the obligations of the Company to the Trustee under Section 9.06, the obligations
of the Trustee to any Authenticating Agent under Section 9.13, and, if money shall have been
deposited with the Trustee pursuant to subclause (ii) of clause (a) of this Section 12.01, the
obligations of the Trustee under Sections 6.03(e) and 12.02, will survive.

Section 12.02. Application of Trust Money.

          Subject to the provisions of Section 6.03(e), all money deposited with the Trustee pursuant to
Section 12.01 will be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for the payment of which such money
has been deposited with the Trustee; and such money shall be segregated from other funds to the
extent required by law.

52

 

ARTICLE XIII.  Miscellaneous Provisions.

Section 13.01. Successors and Assigns of Company Bound by Indenture.

          All the covenants, stipulations, promises, and agreements in this Indenture contained by or on
behalf of the Company will bind its successors and assigns, whether so expressed or not.

Section 13.02. Service of Required Notice to Trustee and Company.

          Any request, demand, authorization, direction, notice, consent, waiver, Act of Holders, 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 or by the Company will be sufficient for every purpose
hereunder if made, given, furnished, or filed in writing to or with the Trustee at its Corporate
Trust Office, or (b) the Company by the Trustee or by any Holder will be sufficient for every
purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at 777 West Rosedale Street, Suite 300,
Fort Worth, Texas 76104 (marked for the attention of both the Chief Financial Officer and the
General Counsel) or at any other address previously furnished in writing to the Trustee by the
Company.

Section 13.03. Service of Required Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice will 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 Security Register, not later than the latest date (if any), and not earlier than the earliest
date (if any), prescribed 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 will 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 will be
the equivalent of such notice. Waivers of notice by Holders will be filed with the Trustee, but
such filing will 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 may be made
with the approval of the Trustee will constitute a sufficient notification for every purpose
hereunder.

Section 13.04. Indenture and Securities to be Construed in Accordance with the Laws of the State of New York.

          This Indenture and the Securities will be deemed to be a contract made under the laws of the
State of New York, and for all purposes will be construed in accordance with the laws of said State
without giving effect to principles of conflict of laws of such State.

53

 

Section 13.05. Compliance Certificates and Opinions.

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

Section 13.06. 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 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. 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 13.07. Payments Due on Non-Business Days.

          In any case where any Interest Payment Date, Redemption Date, or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states that such provision will apply in lieu of this Section 13.07))
payment of interest or principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of Payment, without
additional interest, with the same force and effect as if made on the applicable Interest Payment
Date or Redemption Date or at the applicable Stated Maturity, as the case may be.

Section 13.08. Provisions Required by Trust Indenture Act to Control.

          If any provision of this Indenture limits, qualifies, or conflicts with the duties imposed on
any Person by Sections 310 through 317, inclusive, of the Trust Indenture Act (including provisions
automatically deemed included in this Indenture pursuant to the Trust Indenture Act unless this
Indenture provides that such provisions are excluded), which are deemed to be a part of and govern
this Indenture, whether or not contained herein, then such imposed duties will control.

Section 13.09. Invalidity of Particular Provisions.

          Whenever possible, each provision or portion of any provision of this Indenture shall be
interpreted in such manner as to be effective and valid under applicable law,

54

 

but if any provision or portion of any provision of this Indenture 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 or portion of any provision in such jurisdiction, and this
Indenture shall be reformed, construed and enforced in such jurisdiction in such manner as will
effect as nearly as lawfully possible the purposes and intent of such invalid, illegal or
unenforceable provision.

Section 13.10. Indenture May be Executed In Counterparts.

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

Section 13.11. Acts of Holders; Record Dates.

          (a) Any request, demand, authorization, direction, notice, consent, waiver, or other action
provided or permitted by this Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments (including instruments in electronic, digital or other
machine-readable form) of substantially similar tenor signed (including signatures in electronic,
digital or other machine-readable form) by such Holders in person or by agent duly appointed in
writing (including writings in electronic, digital or other machine-readable form); and, except as
herein otherwise expressly provided, such action will become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of signature of any such instrument or of a writing appointing any such agent
will be sufficient for any purpose of this Indenture and (subject to Section 9.01) conclusive in
favor of the Trustee and the Company, if made in the manner provided in this Section 13.11.

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

          (c) The ownership of Securities will be proved by the Security Register.

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

55

 

          (e) The Company may, in the circumstances permitted by the Trust Indenture Act, set any day as
the record date for the purpose of determining the Holders of Outstanding Securities of any series
entitled to give or take any request, demand, authorization, direction, notice, consent, waiver, or
other action provided or permitted by this Indenture to be given or taken by Holders of Securities
of such series. With regard to any record date set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date (or their duly appointed agents),
and only such Persons, will be entitled to give or take the relevant action, whether or not such
Holders remain Holders after such record date. With regard to any action that may be given or
taken hereunder only by Holders of a requisite principal amount of Outstanding Securities of any
series (or their duly appointed agents) and for which a record date is set pursuant to this
paragraph, the Company may, at its option, set an expiration date after which no such action
purported to be given or taken by any Holder will be effective hereunder unless given or taken on
or prior to such expiration date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date (or their duly appointed agents). On or prior to any
expiration date set pursuant to this paragraph, the Company may, on one or more occasions at its
option, extend such date to any later date. Nothing in this paragraph will prevent any Holder (or
any duly appointed agent thereof) from giving or taking, after any such expiration date, any action
identical to, or, at any time, contrary to or different from, the action or purported action to
which such expiration date relates, in which event the Company may set a record date in respect
thereof pursuant to this paragraph. Nothing in this Section 13.11(e) will be construed to render
ineffective any action taken at any time by the Holders (or their duly appointed agents) of the
requisite principal amount of Outstanding Securities of the relevant series on the date such action
is so taken. Notwithstanding the foregoing or the Trust Indenture Act, the Company will not set a
record date for, and the provisions of this Section 13.11(e) will not apply with respect to, any
notice, declaration, or direction referred to in the next paragraph.

          (f) Upon receipt by the Trustee from any Holder of Securities of a particular series of (a)
any notice of default or breach referred to in Section 8.01(a)(iv) or 8.01(a)(v) with respect to
Securities of such series, if such default or breach has occurred and is continuing and the Trustee
shall not have given such notice to the Company, (b) any declaration of acceleration referred to in
Section 8.01(b), if an Event of Default with respect to Securities of such series has occurred and
is continuing and the Trustee shall not have given such a declaration to the Company, or (c) any
direction referred to in Section 8.06 with respect to Securities of such series, if the Trustee
shall not have taken the action specified in such direction, then a record date will automatically
and without any action by the Company or the Trustee be set for determining the Holders of
Outstanding Securities of such series entitled to join in such notice, declaration, or direction,
which record date will be the close of business on the tenth calendar day following the day on
which the Trustee receives such notice, declaration, or direction. Promptly after such receipt by
the Trustee, and in any case not later than the fifth calendar day thereafter, the Trustee will
notify the Company and the Holders of Outstanding Securities of such series of any such record date
so fixed. The Holders of Outstanding Securities of such series on such record date (or their duly
appointed agents), and only such Persons, will be entitled to join in such notice, declaration, or
direction, whether or not such Holders remain Holders after such record date; provided
that, unless such notice, declaration, or direction shall have become effective by virtue of
Holders of the requisite principal amount of Outstanding Securities of such series on such record
date (or their duly appointed agents) having joined therein on or prior to the 90th calendar

56

 

day after such record date, such notice, declaration, or direction will automatically and
without any action by any Person be cancelled and of no further effect. Nothing in this Section
13.11(f) will be construed to prevent a Holder (or a duly appointed agent thereof) from giving,
before or after the expiration of such 90-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 will be set pursuant to this Section 13.11(f). Nothing in this Section 13.11(f)
will be construed to render ineffective any notice, declaration, or direction of the type referred
to in this Section 13.11(f) given at any time to the Trustee and the Company by Holders (or their
duly appointed agents) of the requisite principal amount of Outstanding Securities of the relevant
series on the date such notice, declaration, or direction is so given.

          (g) Without limiting the foregoing, a Holder entitled hereunder to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of the
principal amount of such Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any different part of such principal amount.

Section 13.12. Effect of Headings and Table of Contents.

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

Section 13.13. Benefits of Indenture.

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

 

57

 

          In Witness Whereof, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of the day and year
first above written.

[Seal]

	 	 	 	 	 	 	 
	 	 	Quicksilver Resources Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip Cook	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Philip W. Cook	 	 
	 

	 	Title:
	 	Senior Vice President -	 	 
	 

	 	 	 	Chief Financial Officer	 	 

Attest:

	 	 	 	 	 
	/s/ Elizabeth K. Giddens

	 	 
	 	 
	 

Name: Elizabeth K. Giddens

	 	 	 	 
	Title: Assistant Secretary
	 	 	 	 

[Seal]

	 	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, National Association,	 	 
	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Carol Logan	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Carol Logan	 	 
	 

	 	Title:
	 	Vice President and Trust Officer	 	 

Attest:

	 	 	 	 	 
	/s/ Rebecca A. Newman

	 	 
	 	 
	 

Name: Rebecca A. Newman

	 	 	 	 
	Title: Vice President & Trust Officer
	 	 	 	 

58

 

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF TEXAS

	 	 	)	 	 	 	 	 
	 	 
	 

	 	 	)	 	 	ss.:	 	 	 	 
	COUNTY OF TARRANT

	 	 	)	 	 	 	 	 	 	 

          On this 20th day of December, 2005, before me personally came Philip W. Cook, to me
known, who, being by me duly sworn, did depose and say that he is Senior Vice President — Chief
Financial Officer of Quicksilver Resources Inc., one of the entities described in and which
executed the above instrument; that he knows the seal of said entity; that the seal or a facsimile
thereof affixed to said instrument is such seal; that it was so affixed by authority of the Board
of Directors of said entity; and that he signed his name thereto by like authority.

          In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 

	 	/s/ Deborah K. Shores
	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 
	 
	 	 	 	 
	 

	 	[Seal]	 	 

59

 

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF TEXAS

	 	 	)	 	 	 	 	 
	 	 
	 

	 	 	)	 	 	ss.:	 	 	 	 
	COUNTY OF HARRIS

	 	 	)	 	 	 	 	 	 	 

          On this 20th day of December, 2005, before me personally came Carol Logan, to me
known, who, being by me duly sworn, did depose and say that she is a Vice President and Trust
Officer of JPMorgan Chase Bank, National Association, one of the entities described in and which
executed the above instrument; that she knows the seal of said entity; that the seal or a facsimile
thereof affixed to said instrument is such seal; that it was so affixed by authority of the Board
of Directors of said entity; and that she signed her name thereto by like authority.

          In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.

	 	 	 	 	 
	 

	 	/s/ Suzanne Morra
	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 
	 
	 	 	 	 
	 

	 	[Seal]	 	 

60exv10w2

 

EXECUTION COPY

Exhibit 10.2

NOTE: THIS DOCUMENT IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST PURSUANT TO RULE 24B-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934. PORTIONS OF THIS DOCUMENT FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED HAVE BEEN REDACTED AND ARE MARKED HEREIN BY “***”. SUCH REDACTED
INFORMATION HAS BEEN FILED SEPARATELY WITH THE COMMISSION PURSUANT TO THE CONFIDENTIAL TREATMENT
REQUEST.

DEVELOPMENT AND LICENSE AGREEMENT

BY AND BETWEEN

BIOCRYST PHARMACEUTICALS, INC.

AND

F.HOFFMANN-LA ROCHE LTD

AND

HOFFMANN-LA ROCHE INC.

 

 

EXECUTION COPY

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Actively Developing
	 	 	1	 
	1.2 Adjusted Gross Sales
	 	 	1	 
	1.3 Affiliate
	 	 	1	 
	1.4 Autoimmune Indications
	 	 	2	 
	1.5 Backup Compounds
	 	 	2	 
	1.6 BioCryst Know-How
	 	 	2	 
	1.7 BioCryst Patents
	 	 	2	 
	1.8 Calendar Quarter
	 	 	2	 
	1.9 Closing Date
	 	 	2	 
	1.10 Compound
	 	 	2	 
	1.11 Commercially Reasonable Efforts
	 	 	2	 
	1.12 Commercialization
	 	 	2	 
	1.13 Confidential Information
	 	 	3	 
	1.14 Control
	 	 	3	 
	1.15 Dermatology
	 	 	3	 
	1.16 Detail
	 	 	3	 
	1.17 Develop
	 	 	3	 
	1.18 Development Costs
	 	 	4	 
	1.19 Development Plan
	 	 	4	 
	1.20 Effective Date
	 	 	4	 
	1.21 Field
	 	 	4	 
	1.22 First Commercial Sale
	 	 	4	 
	1.23 Fodosine
	 	 	4	 
	1.24 Generic Licensed Product
	 	 	4	 
	1.25 IND
	 	 	4	 
	1.26 Insolvency Event
	 	 	4	 
	1.27 Invoice Price
	 	 	5	 
	1.28 Joint Development Committee
	 	 	5	 
	1.29 Joint Steering Committee
	 	 	5	 
	1.30 Law
	 	 	5	 
	1.31 Licensed Product
	 	 	5	 
	1.32 Major Market Countries
	 	 	5	 
	1.33 NDA Approval
	 	 	5	 
	1.34 Net Sales
	 	 	5	 
	1.35 Neurology
	 	 	5	 
	1.36 Party
	 	 	5	 
	1.37 Phase II
	 	 	6	 
	1.38 Phase IIa
	 	 	6	 
	1.39 Phase IIb
	 	 	6	 
	1.40 Phase III
	 	 	6	 
	1.41 Pre-Existing Third Party License
	 	 	6	 
	1.42 Promotional Material
	 	 	6	 
	1.43 Regulatory Authority
	 	 	6	 
	1.44 Roche Compound
	 	 	6	 
	1.45 Roche Group
	 	 	6	 
	1.46 Roche Know-How
	 	 	6	 
	1.47 Roche Patents
	 	 	6	 
	1.48 Roche Products
	 	 	6	 
	1.49 ROW Country
	 	 	7	 
	1.50 Royalty Bearing Products
	 	 	7	 
	1.51 Sale, Sold or Sell
	 	 	7	 

 

 

EXECUTION COPY

	 	 	 	 	 
	1.52 Special Indication Product
	 	 	7	 
	1.53 Special Indications
	 	 	7	 
	1.54 Start of Phase IIa
	 	 	7	 
	1.55 Start of Phase IIb
	 	 	7	 
	1.56 Start of Phase III or Pivotal Trial
	 	 	7	 
	1.57 Stem-Cell Transplantation
	 	 	7	 
	1.58 Sublicensee
	 	 	7	 
	1.59 Term of the Agreement
	 	 	7	 
	1.60 Third Party
	 	 	7	 
	1.61 Transplantation Indications
	 	 	7	 
	1.62 Valid Claim
	 	 	7	 
	1.63 Western Europe
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 2 GRANT OF RIGHTS
	 	 	8	 
	 
	 	 	 	 
	2.1 License Grants
	 	 	8	 
	2.2 Backup Compounds
	 	 	9	 
	2.3 First Right of Negotiation of Backup Compounds
	 	 	9	 
	2.4 Roche Compounds
	 	 	10	 
	2.5 Fodosine
	 	 	10	 
	2.6 Pre-Existing Third Party License
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 3 BIOCRYST RIGHT TO PROMOTE
	 	 	10	 
	 
	 	 	 	 
	3.1 Co-Promotion
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 4 GOVERNANCE
	 	 	10	 
	 
	 	 	 	 
	4.1 Steering Committee
	 	 	10	 
	4.2 Development Committee
	 	 	11	 
	4.3 Committee Membership
	 	 	12	 
	4.4 Committee Chairs
	 	 	12	 
	4.5 Committee Meetings
	 	 	12	 
	4.6 Decision Making
	 	 	12	 
	4.7 Interactions Between Committees
	 	 	13	 
	4.8 Performance of Representatives
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 5 DILIGENCE AND SPECIAL INDICATIONS
	 	 	13	 
	 
	 	 	 	 
	5.1 Diligence
	 	 	13	 
	5.2 Special Indications
	 	 	13	 
	5.3 Development Plan
	 	 	14	 
	5.4 Reports
	 	 	14	 
	5.5 End of Phase IIb
	 	 	14	 
	5.6 Registration
	 	 	14	 
	5.7 Sequencing of Licensed Products
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 6
CLINICAL TRIALS, REGULATORY MATTERS AND MANUFACTURING
	 	15
	 
	 	 	 	 
	6.1 Clinical Trials and Regulatory Matters
	 	 	15	 
	6.2 Adverse Event Reporting
	 	 	16	 
	6.3 Manufacturing and Technical Assistance
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 7 CONSIDERATION
	 	 	17	 

 

 

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	7.1 Lump Sum Payments
	 	 	17	 
	7.2 Development Event Payments
	 	 	17	 
	7.3 Commercial Event Payments
	 	 	19	 
	7.4 Royalties
	 	 	19	 
	7.5 Patent Coverage Adjustment
	 	 	19	 
	7.6 Combination Licensed Products
	 	 	20	 
	7.7 Payments to Third Parties
	 	 	20	 
	7.8 Generic Sales Adjustment
	 	 	20	 
	7.9 Royalties Due Once
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 8 PAYMENTS; RECORDS; AUDIT
	 	 	20	 
	 
	 	 	 	 
	8.1 Payment of Royalties
	 	 	20	 
	8.2 Currency
	 	 	21	 
	8.3 Payments Nonrefundable
	 	 	21	 
	8.4 Roche Records and Audit
	 	 	21	 
	8.5 BioCryst Records and Audit
	 	 	21	 
	8.6 Withholding Taxes
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 9 INTELLECTUAL PROPERTY
	 	 	22	 
	 
	 	 	 	 
	9.1 Prosecution of BioCryst Patent Rights
	 	 	22	 
	9.2 Infringement
	 	 	23	 
	9.3 Hatch-Waxman
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 10 CONFIDENTIAL INFORMATION
	 	 	24	 
	 
	 	 	 	 
	10.1 Non-Use and Non-Disclosure
	 	 	24	 
	10.2 Authorized Disclosure
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 11 TERMINATION
	 	 	25	 
	 
	 	 	 	 
	11.1 Commencement and Term
	 	 	25	 
	11.2 Termination for Breach
	 	 	25	 
	11.3 Termination by Roche Without Cause
	 	 	25	 
	11.4 Consequences of Termination
	 	 	25	 
	11.5 Royalty and Payment Obligations
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 12 INDEMNIFICATION
	 	 	27	 
	 
	 	 	 	 
	12.1 Indemnification by BioCryst
	 	 	27	 
	12.2 Indemnification by Roche
	 	 	27	 
	12.3 Procedure
	 	 	27	 
	12.4 Limitation on Damages
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 13 REPRESENTATIONS AND WARRANTIES
	 	 	28	 
	 
	 	 	 	 
	13.1 Mutual Representations and Warranties
	 	 	28	 
	13.2 BioCryst Representations and Warranties
	 	 	28	 
	13.3 Roche Representations and Warranties
	 	 	29	 
	13.4 HSR Act and Other Applicable Governmental Filings
	 	 	29	 
	13.5 No Debarment
	 	 	30	 
	13.6 No PNP Inhibitors
	 	 	30	 
	13.7 No Other Representations
	 	 	30	 

 

 

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	ARTICLE 14 CONDITIONS TO CLOSING
	 	 	30	 
	 
	 	 	 	 
	14.1 Conditions Subsequent
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 15 DISPUTE RESOLUTIONS AND GOVERNING LAW
	 	 	30	 
	 
	 	 	 	 
	15.1 Disputes
	 	 	30	 
	15.2 Arbitration
	 	 	31	 
	15.3 Arbitration Procedure
	 	 	31	 
	15.4 Governing Law
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 16 PUBLICITY
	 	 	32	 
	 
	 	 	 	 
	16.1 Initial Press Release
	 	 	32	 
	16.2 Subsequent Press Releases
	 	 	32	 
	16.3 Disclosures Required by Law
	 	 	32	 
	16.4 Publications
	 	 	32	 
	16.5 Use of Name
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 17 MISCELLANEOUS
	 	 	33	 
	 
	 	 	 	 
	17.1 Pre-Existing Third Party License
	 	 	33	 
	17.2 Extended Benefits
	 	 	33	 
	17.3 Survival
	 	 	33	 
	17.4 Agency
	 	 	33	 
	17.5 Entire Agreement
	 	 	33	 
	17.6 Counterparts
	 	 	33	 
	17.7 Amendment
	 	 	33	 
	17.8 Assignment
	 	 	33	 
	17.9 Requirement to Divest
	 	 	34	 
	17.10 Notices
	 	 	34	 
	17.11 Force Majeure
	 	 	35	 
	17.12 Affiliates
	 	 	35	 
	17.13 Bankruptcy
	 	 	35	 
	17.14 Severability
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This Development and License Agreement (this “Agreement") dated as of November 29, 2005 (“Effective
Date") is made by and between BioCryst Pharmaceuticals, Inc., a corporation organized and existing
under the laws of the State of Delaware having an office and place of business at 2190 Parkway Lake
Drive, Birmingham, Alabama 35244 (“BioCryst"), on one hand, and on the other hand F.Hoffmann-La
Roche Ltd, a corporation of Switzerland having its principle office at Grenzacherstrasse 124,
CH-4070, Basel, Switzerland (“Roche-Basel") and Hoffmann-La Roche Inc., a New Jersey corporation
having its principle place of business at 340 Kingsland Street, Nutley, New Jersey 07110
(“Roche-Nutley") (Roche-Nutley and Roche-Basel are collectively referred to as “Roche").

RECITAL

WHEREAS, BioCryst owns or controls patents and know-how related to a series of proprietary
compounds which act as purine nucleoside phosphorylase inhibitors (“PNP Inhibitors"), including the
compound known as BCX-4208.

WHEREAS, Roche has expertise in the discovery, development, manufacture and sale of pharmaceutical
products.

WHEREAS, Roche wishes to obtain, and BioCryst wishes to grant, rights and licenses under certain
patents and know-how owned or controlled by BioCryst.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement,
the parties agree as follows:

ARTICLE 1 DEFINITIONS

1.1 “Actively Developing” means, with respect to a particular indication as of a given time, that
(i) Roche is then undertaking active human clinical trials for a Licensed Product in such
indication, or (b) the then-current Development Plan indicates that, within two years of such time,
active human clinical trials for a Licensed Product in such indication shall be commenced. For the
purposes of clarity, Roche shall not be deemed to be Actively Developing a Licensed Product for a
particular indication which is then not part of the Development Plan even if the Licensed Product
has been previously tested in human clinical trials in such indication.

1.2 “Adjusted Gross Sales” means (a) the Invoice Price of Licensed Products multiplied by the
quantity of Licensed Products Sold in the Territory, less (b) without duplication of any of those
sales related deductions which are accounted for in the calculation of Net Sales, (i) returns and
return reserves (including allowances actually given for spoiled, damaged, out-dated, rejected,
returned Licensed Products sold, withdrawals and recalls), (ii) rebates (for example, price
reductions, rebates to social and welfare systems, charge backs or reserves for charge backs, cash
sales incentives), (iii) government mandated rebates and similar types of rebates (e.g., P.P.R.S,
Medicaid), (iv) volume (quantity) discounts, (v) cash discounts and (vi) value added or sales
taxes, government mandated exceptional taxes and other taxes directly linked to the gross sales
amount (it being understood that income, withholding and capital gains taxes are not the type of
taxes contemplated as a deduction in this definition of Adjusted Gross Sales), each of clauses (i)
through (vi) as consistently applied by Roche to its products.

1.3 “Affiliate” means (a) an entity that owns directly or indirectly, a controlling interest in a
Party, by stock ownership or otherwise, (b) any entity in which a Party owns a controlling
interest, by stock ownership or otherwise, or (c) any entity under common control with a Party,
directly or indirectly. For purposes of this paragraph, “controlling interest” and “control” mean
ownership of fifty percent (50%) or more of the voting stock permitted to vote for the election of
the board of directors or any other arrangement resulting in control of or the right to control the
management and the affairs of the entity or Party in question. For purposes of this Agreement,
Genentech, Inc., 1 DNA Way, South San Francisco, California shall not be deemed an Affiliate of
Roche, unless approved by BioCryst in its sole discretion. For purposes of this Agreement, Chugai
Pharmaceutical Co. Ltd., 1-9 Kyobashi 2-chome, Chuo-ku,

 

 

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Tokyo, 104-8301, Japan (“Chugai"), shall not be deemed an Affiliate of Roche unless Roche provides
written notice to BioCryst of its desire to include Chugai as an Affiliate of Roche.

1.4 “Autoimmune Indications” means all indications that involve pathogenic consequences, including
tissue injury, produced by autoantibodies or autoreactive T lymphocytes interacting with self
epitopes, i.e., autoantigens. Autoimmune Indications shall include, without limitation, asthma,
psoriasis, rheumatoid arthritis, systemic lupus erythematosus, scleroderma, juvenile rheumatoid
arthritis, polymyositis, ankylosing spondylitis, Type I diabetes, sarcoidosis, Sjogrens syndrome,
chronic active non-pathogenic hepatitis, non-infectious uveitis (Behcet’s), aplastic anemia,
hemolytic anemia, idiopathic thrombocytopenia purpura, vasculitis, Hashimoto’s thyroiditis, atopic
dermatitis, regional non-pathogenic enteritis (including ulcerative colitis, Crohn’s Disease and
inflammatory bowel disease), Kawasaki’s disease, post-infectious encephalitis, myasthenia gravis,
multiple sclerosis, alopecia, and tropic spastic paraparesis.

1.5 “Backup Compounds” shall mean any PNP Inhibitor which (i) as of the Effective Date is owned or
Controlled by BioCryst, and (ii) has completed Phase IIb related to an indication in the Field
during the time period between the Effective Date and the five year anniversary of the Closing
Date. Backup Compounds shall exclude (a) the Compound, and (b) Fodosine. For the purposes of this
Agreement, in no event shall Fodosine be deemed to be a Backup Compound.

1.6 “BioCryst Know-How” means all knowledge and proprietary information, including trade secrets,
owned or Controlled by BioCryst during the Term of this Agreement, directly related to the
manufacture, formulation, sale or use of the Compound. BioCryst Know-How includes without
limitation materials, samples, chemical manufacturing data, toxicological data, pharmacological
data, clinical data, formulations, specifications, quality control testing data, and submissions
and correspondence to and from governmental agencies, with regard to Licensed Product.

1.7 “BioCryst Patents” means those patents and patent applications or portions thereof that are
necessary for the manufacture, use or sale of the Compound or Licensed Product(s) and which are
owned or Controlled by BioCryst during the Term of the Agreement, To the extent a BioCryst Patent
is necessary for the making, using or selling of the Compound, BioCryst Patents shall include all
patents and patent applications based upon or claiming priority to any of the foregoing, and any
extensions, supplementary protection certificates, continuations, continuations-in-part, divisions,
reissues, re-examinations, additions, substitutions, confirmations, registrations, or
re-validations of or to any of the foregoing. Notwithstanding the definition above, BioCryst
Patents shall not include any patent rights relating to Fodosine. Exhibit 1.7 lists all BioCryst
Patents as of the Effective Date.

1.8 “Calendar Quarter” means each three month period beginning on each of January 1, April 1, July
1 and October 1 during the Term of this Agreement.

1.9 “Closing Date” means the date of approval of the transaction by the Federal Trade Commission or
the appropriate US anti-trust authorities or the expiration or termination of all applicable
waiting periods and requests for information (and any extensions thereof) under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the
“HSR Act”).

1.10 “Compound” means the PNP Inhibitor known as BCX-4208 ***.

1.11 “Commercially Reasonable Efforts” means a level of resources and efforts to Develop and
Commercialize a Licensed Product applied by Roche consistent with Roche’s practices in pursuing the
Development and commercialization of its other pharmaceutical products at a similar stage of
product life, safety, efficacy and commercial potential. It is understood that such efforts may
change from time to time based upon changing safety, efficacy, scientific, business and commercial
considerations.

1.12 “Commercialization” means, with respect to a particular Licensed Product, any and all
processes and activities necessary to be conducted to establish and maintain sales for such
Licensed

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Product, including negotiating and obtaining pricing approvals, offering for sale, Detailing
(including launch), promoting, manufacturing, storing, transporting, supporting, distributing, and
importing such Licensed Product, and all studies and tests of such Licensed Product, but in all
cases excluding Development. “Commercialize” and “Commercializing” shall have their correlative
meanings.

1.13 “Confidential Information” means any and all information, data or know-how of a confidential
nature (including BioCryst Know-How and Roche Know-How), whether technical or non-technical (such
as financial, business and legal information), oral or written, related to Compound or Licensed
Product or a Party’s business that is disclosed by one Party or
its Affiliates (“Disclosing Party”)
to the other Party or its Affiliates (“Receiving Party”). For the purposes of this Agreement, all
information related to BioCryst’s licensors and the Pre-Existing Third Party License shall be
deemed to be BioCryst Confidential Information.

Confidential Information shall not include any information, data or know-how which:

     (i) either before or after disclosure to the Receiving Party, was or becomes published or
generally known to the public through no fault or omission on the part of the Receiving Party or
its Affiliates; or

     (ii) was known or used by the Receiving Party or its Affiliates prior to its disclosure by the
Disclosing Party to the Receiving Party; or

     (iii) either before or after disclosure to the Receiving Party, is provided to the Receiving
Party by a Third Party having the legal right to do so;

     (iv) is independently developed by the Receiving Party or its Affiliates without access to our
use of the Disclosing Party’s Confidential Information; or

     (v) is required to be disclosed by the Receiving Party or its Affiliates to comply with
applicable Laws, to defend or prosecute litigation or to comply with governmental regulations,
provided that, the Receiving Party provides prior written notice of such disclosure to the
Disclosing Party and, to the extent practicable, takes reasonable and lawful actions to minimize
the degree of such disclosure.

1.14 “Control” means, with respect to any intellectual property right, that the Party has a license
to such intellectual property right and has the ability to grant to the other Party a sublicense to
such intellectual property right as provided herein without violating the terms of any agreement or
other arrangements with any Third Party existing at the time such Party would be first required
hereunder to grant the other Party such sublicense. “Controlled” shall have a correlative meaning.

1.15 “Dermatology” means the treatment of disorders of the skin in which the skin is the primary
site of the disorder (e.g., psoriasis).

1.16 “Detail” means, with respect to a particular Licensed Product, a face-to-face presentation
(or other means of contact) by a Party’s sales representative, to one or several medical
professional(s) having prescribing authority in the United States in the Field, as well as to other
individuals or entities that have significant impact or influence on prescribing decisions in the
United States in the Field, in which the principal objective of such presentation is to emphasize
the features and function of such Licensed Product in accordance with Law. For clarity, Detail
shall exclude discussions at conventions, tradeshows and similar forums, meetings where only a
sample drop or a reminder occurs or other incidental contact. When used as a verb, the terms
“Detail” or “Detailing” means to perform a Detail.

1.17 “Develop” means with respect to a particular Licensed Product or Special Indication Product
(as the case may be), any and all processes and activities which are necessary to be conducted to
obtain NDA Approval for such product, including NDA Approval applications, clinical trial
application enabling studies and all other activities conducted thereafter, which may involve
preclinical testing, toxicology,

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clinical trials, quality of life assessments, pharmacoeconomics, post-marketing studies required to
maintain approval of the label, label expansion studies, and further activities related to
development of such product to a stage ready for commercialization
thereof. “Develop”,
“Development” and “Developing” shall have their correlative meanings.

1.18 “Development Costs” means all out of pocket and internally allocated costs, expenses and
liabilities incurred by BioCryst in connection with the Development of a Special Indication
Product, including but not limited to (i) fees paid under the Pre-Existing Third Party License (ii)
the costs of base salaries and benefits of personnel for the time devoted to, or in furtherance of,
the Development of the Special Indication Product, (iii) costs of and in obtaining supplies to be
used in conducting the Development of Special Indication Product, and (iv) costs of retaining third
party consultants or other independent contractors to assist with the Development of a Special
Indication Product.

1.19 “Development Plan” means a plan for the Development of Licensed Products in the Field approved
from time to time by the JSC pursuant to Section 4.1(a). The initial Development Plan, reflecting
the mutual objectives of the Parties with respect to the sequence of events for the Development of
the Compound is attached hereto as Exhibit 1.19.

1.20 “Effective Date” means the date set forth in the first paragraph of the Agreement.

1.21 “Field” means the prevention or treatment of Autoimmune Indications and Transplantation
Indications.

1.22 “First Commercial Sale” means, for a given country, the first Sale of Licensed Product after
NDA Approval in the given country for the Licensed Product (including authorizations for
reimbursement).

1.23 “Fodosine” means the compound known as “BCX-1777”
(7-((2S,3S,4R,5R)-3,4-dihydroxy-5-hydroxymethyl)pyrrolidin-2-yl)-3H-pyrrolo[3,2-d]pyrimidin-4(5H)-on
e hydrochloride)

1.24 “Generic Licensed Product” means a product that contains Compound which is offered for sale in
a country by a Third Party.

1.25 “IND” means Investigational new Drug Applications or corresponding filings in any country in
the world.

1.26 “Insolvency Event” means, in relation to the Party in question, any of the following: (i) that
Party proposes or makes any arrangement or composition with or any assignment for the benefit of
its creditors generally; (ii) a petition is filed that is not dismissed within sixty (60) days or a
court order is made or a resolution is passed for the bankruptcy, liquidation or winding up of that
Party (save for the purposes of a solvent reconstruction the terms of which have been approved in
writing by the other Party) or for the appointment of a provisional liquidator or a judicial factor
or similar officer in relation to that Party; (iii) an encumbrancer takes possession of or a
trustee, receiver, liquidator, provisional liquidator, administrator, manager ad interim,
administrative receiver, judicial factor or similar officer is appointed in respect of all or a
material part of that Party’s intellectual property rights which are the subject of this Agreement
and such appointment prejudices the other Party’s rights under this Agreement; (iv) that Party is
unable to pay its debts as they become due in the ordinary course of business; (v) that Party gives
written notice to its creditors that it has ceased to pay its debts in the ordinary course of
business; or (vi) that Party does, or

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suffers to be done in relation to it, any analogous action or proceeding in any jurisdiction
anywhere in the world (including without limitation any actions or proceedings relating to
bankruptcy Law of any nature in the United States of America).

1.27 “Invoice Price” means, with respect to a Licensed Product, the unit price, without deduction,
actually invoiced by the Roche Group for the Sale of such Licensed Product. If any Sales of
Licensed Products are made in transactions that are not at arm’s length, then the Gross Price for
such Licensed Products shall be the amount that would have been invoiced had the transaction been
conducted at arm’s length. Such amount that would have been invoiced shall be determined, wherever
possible, by reference to the average selling price of the Licensed Product in contemporaneous
similar transactions which are at arm’s length. If, in addition to or in lieu of cash
consideration, other consideration is paid in an arm’s length transaction to the Roche Group in
connection with the Licensed Product or the customer’s rights or relationship with the Roche Group
in relation thereto, then the amount or fair market value of such other consideration shall be
included in the calculation of Invoice Price in the period in which the Sales of Licensed Products
occur.

1.28 “Joint Development Committee” or “JDC” means that committee comprised of an equal number of
representatives of BioCryst and Roche, but not less than three (3) representatives from each
company, which shall have the responsibilities set forth in Section 4.2.

1.29 “Joint Steering Committee” or “JSC” means that committee comprised of equal number of
representatives of BioCryst and Roche, but not less than three (3) representatives from each
company, which shall have the responsibilities set forth in Section 4.1.

1.30
“Law” means, individually and collectively, any and all laws, ordinances, rules, directives
and regulations of any kind whatsoever of any governmental or regulatory authority within the
applicable jurisdiction, including any present and future supra-national, national, state and local
laws (including rules and regulations having the force of law); requirements under permits; orders,
decrees, judgments and directives; requirements of the FDA and other regulatory authorities,
including without limitation cGMPs, other requirements imposed under the Federal Food, Drug and
Cosmetic Act and the Public Health Service Act, each as amended from time to time, requirements in
21 C.F.R. Part 312, applicable requirements in 21 C.F.R. Parts 600-680 and similar requirements of
Regulatory Authorities in countries outside the United States.

1.31 “Licensed Product” means any and all pharmaceutical products containing Compound.

1.32 “Major Market Countries” means the United States of America, Western Europe, and with respect
to Autoimmune Indications only, also Japan.

1.33 “NDA Approval” means all approvals (including pricing and reimbursement approvals), licenses,
registrations or authorizations of any national or international or local regulatory authority,
department, bureau or other governmental entity, necessary for the Development and
Commercialization of Licensed Product in a regulatory jurisdiction.

1.34 “Net Sales” means, for the US, the amount calculated by subtracting from the amount of
Adjusted Gross Sales a lump sum deduction of ***. Notwithstanding the foregoing, amounts received
by Roche, its Affiliates and sublicensees for the sale of Licensed Product among Roche, its
Affiliates or sublicensees for resale shall not be included in the computation of Adjusted Gross
Sales and Net Sales.

1.35 “Neurology” means the treatment of central nervous system autoimmune disorders or diseases
wherein the disorder or disease is specific to the central nervous system (e.g., multiple
sclerosis).

1.36 “Party” means Roche and/or BioCryst, and “Parties” means both Roche and BioCryst.

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1.37 “Phase II” means a human clinical trial in the Field performed to evaluate the efficacy of a
Licensed Product for a particular indication or indications in patients with the disease or
condition under study and/or to determine the common short-term side effects and risks associated
with the drug, as described in 21 C.F.R. Part 312, as it may be amended.

1.38 “Phase IIa” means a human clinical trial performed to estimate the biologic or clinical effect
of a pharmaceutical product in a target population.

1.39 “Phase IIb” means a placebo or active drug controlled, randomized human clinical trial
performed to gain evidence of the efficacy of a pharmaceutical product in a target population,
and/or to establish the optimal dosing regimen for such product.

1.40 “Phase III” means a human clinical trial required by the FDA or other equivalent regulatory
authority to gain evidence of efficacy in the target population and obtain expanded evidence of
safety for Licensed Product, as described in 21 C.F.R. Part 312, as it may be amended.

1.41 “Pre-Existing Third Party License” means the agreement dated June 27, 2000 by and between on
the one hand Albert Einstein College of Medicine of Yeshiva University, a division of Yeshiva
University and Industrial Research Ltd., and on the other hand BioCryst, as amended from time to
time.

1.42 “Promotional Material” means all materials for training commercial personnel and all written,
printed, graphic, electronic, audio or video matter, including journal advertisements, sales visual
aids, leave behind items, formulary binders, reprints, direct mail, direct-to consumer advertising,
Internet postings, broadcast advertisements and sales reminder aids (for example, scratch pads,
pens and other like items), in each case created by a Party or on its behalf and used or intended
for use in connection with any promotion of a Licensed Product, but excluding Licensed Product
labeling.

1.43 “Regulatory Authority” means the United States Food and Drug Administration (“FDA”), or in the
case of a country other than the United States, such other appropriate regulatory authority with
similar responsibilities, including, without limitation, the EMA.

1.44 “Roche Compound” means any PNP Inhibitor other than the Compound which (i) is owned or
Controlled by the Roche Group, and (ii) has completed Phase IIb for an indication in the Field
during the time period between the Effective Date and the five year anniversary of the Closing
Date.

1.45 “Roche Group” means, individually and collectively, Roche and its Affiliates.

1.46 “Roche Know-How” means all knowledge and proprietary information, including trade secrets,
owned or Controlled by the Roche Group during the Term of this Agreement, which is an improvement
on the BioCryst Know-How or which directly relates to the manufacture, formulation or use of the
Compound, Licensed Products, Roche Compound or Roche Products. Roche Know-How includes without
limitation materials, samples, chemical manufacturing data, toxicological data, pharmacological
data, clinical data, formulations, specifications, quality control testing data, and submissions
and correspondence to and from governmental agencies.

1.47 “Roche Patents” means all patent applications and patents which claim improvements upon or
modification to the inventions and discoveries claimed in any of the BioCryst Patents or which
claim inventions directly related to the manufacture, use or sale of Compound, Backup Compound,
Roche Compound, Roche Products, or Licensed Products, which patent applications and patents are
owned or Controlled by the Roche Group during the Term of this Agreement, and any extensions,
supplementary protection certificates, continuations, continuations-in-part, divisions, reissues,
re-examinations, additions, substitutions, confirmations, registrations, or re-validations of or to
any of the foregoing.

1.48 “Roche Products” means any and all pharmaceutical products containing a Roche Compound.

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1.49 “ROW Country” shall mean a country which is not included in the Major Market Countries. “ROW”
means all of the non-Major Market Countries.

1.50 “Royalty Bearing Products” means Licensed Products and Roche Products.

1.51 “Sale”, “Sold” or “Sell” means the sale, transfer or disposition of a Licensed Product (or
Roche Product) for commercial purposes (excluding compassionate use where no consideration is
received by the Roche Group) for value to a Third Party (whether an end user, wholesaler or
otherwise) by a member of the Roche Group (or, with respect to a Roche Product, sublicensees). For
the avoidance of doubt, sales, transfers or dispositions of a Licensed Product among the Roche
Group shall not be subject to a royalty, but shall become subject to a royalty when Sold to a Third
Party.

1.52 “Special Indication Product” means a Licensed Product for Commercialization in a Special
Indication.

1.53 “Special Indication” means an Autoimmune Indication with respect to which, at the time
BioCryst desires to commence development work pursuant to Section 5.2, Roche is not Actively
Developing a Licensed Product for such Autoimmune Indication.

1.54 “Start of Phase IIa” means the date that a patient is first dosed with Royalty-Bearing Product
in a Phase IIa clinical trial conducted by or on behalf of the Roche Group.

1.55 “Start of Phase IIb” means the date that a patient is first dosed with Royalty-Bearing Product
in a Phase IIb clinical trial conducted by or on behalf of the Roche Group

1.56 “Start of Phase III or Pivotal Trial” means the date that a patient is first dosed with
Royalty-Bearing Product in a Phase III trial conducted by or on behalf of the Roche Group.

1.57 “Stem-Cell Transplantation” means a procedure in which healthy stem cells are infused to help
restore normal bone marrow function.

1.58 “Sublicensee” means any Third Party to whom a sublicense has been granted pursuant to Section
2.1(d).

1.59 “Term of the Agreement” means the period commencing upon the Effective Date and, unless this
Agreement is terminated sooner as provided herein, expiring on the date when no royalty or other
payment obligations under this Agreement are or will become due.

1.60 “Third Party” means an entity other than a Party to this Agreement or its Affiliates.

1.61 “Transplantation Indications” means all indications that involve the suppression of rejection
of transplanted organs, bone marrow or other tissue, including, without limitation, solid organ
transplantation (including tolerance induction and xenotransplantation), bone marrow
transplantation, graft versus host disease and cell transplantation. In any event, if a given
indication satisfies the criteria for both an Autoimmune Indication and a Transplantation
Indication, such indication shall be deemed a Transplant Indication and not an Autoimmune
Indication, provided that an Autoimmune Indication shall not be deemed a Transplant Indication
merely because it may cause the need for a transplant (e.g., Type I diabetes, even if it causes the
need for an organ transplant). For the avoidance of doubt, Transplantation Indications does not
include the treatment or prevention of cancer but does include bone marrow transplantation.

1.62 “Valid Claim” means a claim in any unexpired and issued BioCryst Patent that has not been
revoked or held invalid by a final unappealable decision of a court or governmental agency of
competent jurisdiction.

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1.63 “Western Europe” means the United Kingdom, Italy, France, Germany, and Spain.

In these definitions, the singular shall include the plural and vice versa.

ARTICLE 2 GRANT OF RIGHTS

2.1 License Grants.

     (a) By BioCryst. BioCryst hereby grants to the Roche Group a sole and exclusive (even as to
BioCryst), royalty-bearing, worldwide right and license under the BioCryst Patents and BioCryst
Know-How to make, have made, use, offer for sale, sell and import Licensed Products in the Field.
The foregoing license to the BioCryst Patents and BioCryst Know-How is limited to the exercise of
the rights granted under the previous sentence and is sublicensable solely as set forth in Section
2.1(d).

     (b) Retained Rights. All rights not specifically granted are reserved to BioCryst. BioCryst
further retains (i) all rights under the BioCryst Patents and BioCryst Know-How outside the Field;
and (ii) under the BioCryst Patents and BioCryst Know-How to develop, conduct preclinical and
clinical activities, make, have made, use, and otherwise exercise all rights in accordance with the
terms hereof with respect to Special Indications and Special Indication Products. The license
grant under Section 2.1(a) is also subject to (aa) the rights retained by BioCryst’s licensors
under the Pre-existing Third Party License Agreement, (bb) the rights retained by the United States
government as set forth in 35 U.S.C. § 200, et seq. (as more fully set forth in Sections 2.01 and
2.02 of the Pre-Existing Third Party License Agreement), (cc) the right to permit Industrial
Research, Ltd. to perform research sponsored in part by the New Zealand Foundation for Research,
Science and Technology and related to the “Field” as defined in the Pre-Existing Third Party
License Agreement (as more fully set forth in Section 2.03 of the Pre-Existing Third Party License
Agreement), (dd) the right to permit Albert Einstein College of Medicine of Yeshiva University, a
division of Yeshiva University through the “Investigators” as defined in the Pre-Existing Third
Party License Agreement to conduct research in collaboration with the National Cancer Institute and
with contractors hired by the National Cancer Institute (as more fully set forth in Section 2.04 of
the Pre-Existing Third Party License Agreement), (ee) the rights retained by BioCryst’s licensors
to make, use and practice those BioCryst Patents that are “Agreement Patents” as defined in the
Pre-Existing Third Party License Agreement in their own laboratories solely for non-commercial
scientific purposes and for continued non-commercial research (as more fully set forth in Section
4.02 of Pre-Existing Third Party License Agreement), (ff) the rights retained by BioCryst’s
licensors to make available to not-for-profit scientific institutions and non-commercial
researchers small quantities of biological materials covered under those BioCryst Patents that are
“Agreement Patents” in the Pre-Existing Third Party License Agreement solely for non-commercial
scientific and research purposes, provided this is done pursuant to the material transfer
agreement, set forth in Appendix B of the Pre-Existing Third Party License Agreement (as more fully
set forth in Section 4.02 of the Pre-Existing Third Party License Agreement), and (gg) the rights
retained by BioCryst’s licensors to grant licenses to third parties under “Agreement Patents” for
all uses outside of the “Field” as such terms are defined in the Pre-Existing Third Party License
Agreement (as more fully set forth in Section 4.03 of the Pre-Existing Third Party License
Agreement). Other than as set forth above, BioCryst warrants that it is not aware of any retained
rights related to making, using or selling the Compound or Licensed Product. If it becomes known
to BioCryst that there have been inventions by the licensors under the Pre-Existing Third Party
License Agreement relating to the retained rights that are necessary to allow Roche’s exercise of
its rights under this Agreement, BioCryst shall use commercially reasonable efforts to obtain a
license on behalf of Roche to use such improvements in accordance with the terms and conditions of
this Agreement.

     (c) By Roche Group. Roche Group hereby grants to BioCryst a co-exclusive (with the Roche
Group only), royalty-free, fully paid up worldwide right and license, without the right to
sublicense (other than to service providers on BioCryst’s behalf), under the Roche Patents and
Roche Know-How to make, have made, and use Backup Compounds and Special Indication Product in the
Field. BioCryst shall not commercially launch or otherwise sell, distribute or supply, or enable
any Affiliate of BioCryst, any licensor of the Pre-Existing Third Party License, or any or Third
Party, to commercially launch or

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otherwise sell, distribute or supply (other than to BioCryst), Licensed Products or Compound
in the Field under the BioCryst Patents, Roche Patents, Roche Know-How or BioCryst Know-How.

     (d) Sublicensing. The following license grant is subject to all retained rights set forth in
Section 2.1(b).

     (i) Roche shall have the right to grant sublicenses under the license granted to it in Section
2.1(a) of this Agreement to an Affiliate or to engage any contract manufacturer, distributor,
subcontractor or outsourced service provider for the benefit of Roche. Notwithstanding the rights
granted above, Roche shall not be entitled to sublicense the entirety of its rights or obligations
hereunder in any country (except for in Japan to Chugai) without BioCryst’s prior written approval,
which shall not be unreasonably withheld. In Japan, Roche shall have the right to sublicense the
entirety of its rights only to Chugai, and such sublicense shall not require the prior written
consent of BioCryst. All obligations set forth in this Agreement which apply to Roche shall be
deemed to apply to any permitted Sublicensee, but Roche shall continue to remain liable for all
obligations hereunder.

     (ii) Roche shall ensure that each permitted Sublicensee hereunder shall consent to be bound by
the terms of this Agreement as a Sublicensee and to the same extent as Roche. At BioCryst’s
request, Roche shall inform BioCryst, in confidence, of any sublicense granted, and any
modification or termination thereof. At BioCryst’s request, Roche shall also provide BioCryst with
an executed copy of the written agreement between Roche and such Sublicensee.

2.2 Backup Compounds. While no rights to any Backup Compounds are licensed hereunder, upon
completion of a Phase IIb clinical trial of a Backup Compound (if any), BioCryst shall give prompt
written notice thereof to Roche. Roche shall have *** (***) days after receipt of such notice from
BioCryst to request in writing that BioCryst provide Roche with a data package for that Backup
Compound. Commencing on the date that Roche receives the data package, Roche shall have the right
to conduct due diligence related to the Backup Compound for a period of up to *** (***) days (the
“Backup Compound Diligence Period”). BioCryst shall cooperate with Roche during the Backup
Compound Diligence Period. Roche’s due diligence may include, but is not limited to, the
following: (i) a full clinical and manufacturing audit of BioCryst with respect to the Backup
Compound, at Roche’s expense, (ii) the right to request all data, including raw data, obtained to
date relating to the Backup Compound, (iii) the right to inspect BioCryst’s facilities and, to the
extent within the reasonable control of BioCryst, the facilities of its clinicians and
manufacturers, each with respect to the Backup Compound (and BioCryst agrees to use good faith and
commercially reasonable efforts so that Roche may inspect the facilities of such third parties),
and (iv) a complete detailed report of the Development Costs actually incurred with respect to the
Backup Compound. The data package, all information learned by Roche during any audit pursuant to
this Section 2.2 and any and all other information provided by BioCryst to Roche relating to the
Backup Compound shall be treated by Roche as the Confidential Information of BioCryst in accordance
with the provisions of ARTICLE 10 of this Agreement. Roche agrees that BioCryst shall have no
obligations hereunder to develop any Backup Compounds.

2.3 First Right of Negotiation of Backup Compounds. Roche shall have the right to negotiate with
BioCryst to have any Backup Compound licensed to Roche for use in the Field. Such license shall be
upon mutually agreeable financial and other terms. BioCryst and Roche shall exclusively negotiate
such offer in good faith for *** (***) days from the expiration of the Backup Compound Diligence
Period. If the parties reach agreement on the material terms of such a license during the ***
(***) day period, then the parties shall promptly execute a license which shall include all
additional terms and conditions. If, at the end of the *** (***) day period, the Parties have been
unable to reach agreement on the material terms of such a license, then BioCryst shall be free to
offer such rights to any Third Party. If BioCryst does sell a product having the same mechanism of
action as the Licensed Product in the Field in the United States, then the parties shall meet and
confer in good faith as to the appropriate modifications, if any, related to joint actions of the
Parties related to Licensed Products (e.g., modifications to the JDC, JSC and co-promotion);
provided, however, in no event shall BioCryst be required to waive its right to participate in the
activities of any Committees as set forth in this Agreement.

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2.4 Roche Compounds. Roche shall promptly notify BioCryst in writing in the event of the
identification of a Roche Compound, and such Roche Compound and related Roche Product shall be a
Royalty-Bearing Product subject to the terms and conditions of this Agreement. In the event any
Development Event Payments (as described in Section 7.2) or Commercial Event Payments (as described
in Section 6.3) are triggered by Roche Products achieving the associated development or commercial
event, such payments shall be made to BioCryst as if such payments were due for a Licensed Product.
Additionally, Royalties (as set forth in Section 7.3) shall be payable to BioCryst on Roche
Products.

2.5 Fodosine. *** for the purposes of clarity, it is understood and agreed that no rights related
to Fodosine are granted to Roche in this Agreement.

2.6 Pre-Existing Third Party License. BioCryst shall use its good faith and commercially
reasonable efforts to maintain the Pre-Existing Third Party License. If BioCryst receives a notice
of breach under Section 10.03 from a licensor of the Pre-Existing Third Party License, then
BioCryst shall promptly inform Roche of the notice and of the plan to cure the breach. If BioCryst
does not plan to, or can not, cure the breach within the time period allowed, then Roche shall have
the right to cure the breach on BioCryst’s behalf. If the Pre-Existing Third Party License
terminates under Section 10.03 of the Pre-Existing Third Party License as a result of Roche’s
failure to cure such breach, this Agreement shall terminate and such termination shall be treated
as any other termination under Section 11.4(b) and the provisions of Sections 11.4(b)-11.4(e), and
11.4(g) shall apply.

ARTICLE 3 BIOCRYST RIGHT TO PROMOTE.

3.1 Co-Promotion. No later than *** (***) years prior to the anticipated Regulatory Approval in
the U.S. of a Licensed Product for an indication in the area of Neurology or Stem Cell
Transplantation or no later than *** (***) years prior to the anticipated Regulatory Approval in
the U.S. of a Licensed Product for an indication in the area of Dermatology, Roche shall notify
BioCryst of the anticipated Regulatory Approval date
(“Anticipated Launch”). After such notice and
prior to the date which is *** (***) months prior to the Anticipated Launch in the U.S. of a
Licensed Product for an indication in the area of Neurology or Stem Cell Transplantation or prior
to the date which is *** (***) years prior to the Anticipated Launch in the U.S. of a Licensed
Product for a Dermatology indication, BioCryst shall have the right to provide written notice to
Roche that it shall Detail Licensed Product in the U.S. as set forth below. BioCryst shall have the
right to use BioCryst employees (i.e., not a Third Party) to provide (i) all Details in the U.S.
with respect to all Licensed Products for the area of Stem-Cell Transplantation, and (ii) all
Details for all Licensed Products in the U.S. in the areas of Neurology and/or Dermatology in those
indications for which Roche does not have a full time employed sales force to cover all Details for
all Licensed Products in such indications. If Roche is Detailing Licensed Products in the areas of
Neurology and/or Dermatology, BioCryst shall have the right to provide up to *** percent (***%) of
all Details with respect to all sales of Licensed Products for indications in such areas where
Roche is providing Details. Notwithstanding the foregoing, for the *** (***) month period
immediately following the actual commercial launch of each Licensed Product for a particular
indication, BioCryst shall have the right to discharge its obligations to Detail through a Third
Party (i.e., contract sales force), provided that BioCryst will transition a significant portion of
such contract sales force to become BioCryst employees.

     (a) The Details described in Section 3.1 shall be performed as directed by, and in a manner
determined by, the JSC and/or a joint marketing committee constituted by the JSC, and shall be
performed in accordance with the terms of this Agreement.

     (b) Roche shall compensate BioCryst on a Detail-by-Detail basis at current market rates for
contract sales force FTEs for Details in those indications for which Roche does not have a full
time employed sales force to cover all Details for all Licensed Products in such indications.

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ARTICLE 4 GOVERNANCE

4.1 Steering Committee.

     (a) The Parties shall establish a Joint Steering Committee (“JSC”) to oversee and review the
research and development activities of the Parties with respect to Licensed Product. The JSC in
turn may establish additional committees to achieve this result (“JSC Subcommittees"). Upon notice
by BioCryst to co-promote pursuant to ARTICLE 3, the JSC shall establish a Co-Promotion Committee
to oversee and address issues related to the parties’ activities under ARTICLE 3. All committees
established under this Agreement, including the JDC and all JSC Subcommittees, shall be subordinate
to the JSC.

     (b) The JSC shall consist of an equal number of representatives of each Party, which shall be
at least three (3), who are experts in their field and who shall not serve on the JDC or any other
group or committee, including a Subcommittee established pursuant to this Agreement. The size of
the JSC may be changed by agreement of the Parties but shall always have an equal number of
representatives from each Party. Each Party may select representatives to replace the initial JSC
members selected by such Party as necessary. The JSC shall meet at least four (4) times per
calendar year, and more often as mutually agreed by the Parties as appropriate for the continued
Development of Licensed Products.

     (c) The JSC shall be responsible for overseeing, managing and providing strategic direction to
the Parties in Development of Licensed Products and otherwise carrying out their obligations under
this Agreement, including: (i) discussing all matters of strategic relevance or other importance to
the Parties under this Agreement, (ii) quarterly reviewing and approving all Development Plans
(including setting key efficacy endpoints of clinical studies, clinical and regulatory plans) and
changes in Development Plans recommended by the JDC; (iii) reviewing and monitoring the activities
and verbally communicating the progress of the JDC and Subcommittees, if any; (iv) considering
disputes, disagreements and deadlocks that are not resolved by the other committees established
under this Agreement pursuant to Section 4.1(a) or Section 4.2(a); (v) overseeing the integration
and coordination of the Development of the Licensed Products in accordance with the terms and
conditions of this Agreement; (vi) undertaking and/or approving such other matters as are
specifically provided for the JSC under this Agreement, (vii) reviewing and approving a global
clinical trial program prior to the conduct of any clinical trials for Licensed Products (including
Special Indication Products) and the plans for any individual clinical trial of Licensed Product in
advance of the anticipated commencement thereof, (viii) updating BioCryst on Roche’s sublicensing
activities, and (ix) updating Roche on the activities of BioCryst or the licensors of the
Pre-Existing Third Party License, the U.S. government, the National Cancer Institute or the New
Zealand Foundation for Research, Science and Technology in connection with the Compound or Backup
Compounds in the Field to the extent BioCryst is aware of such activities. At Roche’s request,
BioCryst shall use its commercially reasonable efforts to obtain from its licensors under the
Pre-Existing Third Party License and provide to Roche requested information related to the
activities of the licensors of the Pre-Existing Third Party License, the U.S. government, the
National Cancer Institute or the New Zealand Foundation for Research, Science and Technology in
connection with the Compound or Backup Compounds in the Field.

     (d) The Parties shall report to the JSC on all significant clinical and regulatory issues
related to Licensed Product, and the JSC shall make recommendations and provide strategic guidance
with respect to such issues.

     (e) Neither Party shall commence any clinical trial of Licensed Product until the JSC has
approved plans therefor.

     (f) Each Party shall keep the JSC informed of the progress and results of activities for which
it is responsible under this Agreement through its members on the JSC and as otherwise provided
herein. BioCryst shall keep the JSC informed regarding its plans for developing any Special
Indication Product, including sufficient information to determine potential safety issues and
target population. Once per calendar year, Roche shall advise the JSC of its Commercialization
plans and activities. Once per calendar year, Roche shall provide BioCryst with a written
Commercialization plan, to the extent one exists.

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4.2 Development Committee.

     (a) The Parties shall establish a Joint Development Committee (“JDC”; the JDC, JSC, JDC
Subcommittees and JSC Subcommittees, each a “Committee”) to coordinate the conduct and progress of
the Development of Licensed Products. The JDC may establish committees to achieve its results
(“JDC Subcommittees”). The JDC and JDC Subcommittees shall be subordinate to the JSC.

     (b) The JDC shall consist of an equal number of representatives of each Party, which shall be
at least three (3), who are experts in their field and who are not members of the JSC or any
Subcommittee or other team established pursuant to this Agreement. The JDC is responsible for,
among other things: (i) devising the strategy and plans for the Development of Licensed Products
including regulatory strategies; (ii) annually reviewing and updating the Development Plans, as
needed, but at a minimum once per year and recommending changes for consideration by the JSC,
including, without limitation, changes in the strategy for Developing the Licensed Products,
seeking approval of particular indications, or expanding the markets being targeted; (iii)
reviewing and approving clinical study endpoints, clinical methodology and monitoring requirements
for the clinical studies described in the Development Plans; (iv) reviewing, coordinating and
ensuring compliance with the Development Plans; and (v) undertaking and/or approving such other
matters as are specifically provided for the JDC under this Agreement.

     (c) The JDC shall meet at least four (4) times per calendar year, and more often as mutually
agreed by the Parties as appropriate for the continued Development of Licensed Products.

4.3 Committee Membership. In the event a Committee member from either Party is unable to attend or
participate in a meeting of its Committee, the Party who designated such representative may
designate a substitute representative for the meeting in its sole discretion.

4.4 Committee Chairs. For each Committee, a Party shall appoint one (1) of its members to such
Committee to chair the meetings for such Committee (a
“Chair”). The JSC Chair shall serve for a
one (1) year period. Roche shall have the right to designate the first Chair of the JSC, whose
term shall run until December 31, 2006, and the right to designate the Chair of the JSC shall
thereafter alternate between the Parties on a calendar year basis. Notwithstanding the above,
Roche shall have the right to designate all Chairs for the JDC, JDC Subcommittees, and Co-Promotion
Committee. The Chair for each Committee shall (i) coordinate and issue the agenda of such
Committee’s meetings, (ii) attend each meeting of such Committee, and (iii) issue written minutes
of each meeting within thirty (30) days thereafter accurately reflecting the discussions and
decisions of such Committee. Minutes from each Committee’s meeting shall not be finalized until
the other Party has reviewed and confirmed the accuracy of such minutes in writing. The agendas
for the JSC and JDC shall be prepared jointly with input from both Parties, provided that if either
Party requests an addition to an agenda, it will be added. In the event the Chair is unable to
attend or participate in its Committee’s meeting, the Party who designated such Chair may designate
a substitute Chair for the meeting.

4.5 Committee Meetings. Committees may meet in person or by video conference or telephonically as
agreed by the Parties; provided that the JSC and the JDC shall meet at least once annually in
person. Each Party shall be responsible for its own expenses relating to such meetings. As
appropriate, other employee representatives of the Parties may attend Committee meetings as
nonvoting observers, subject to the reasonable approval of the other Party. Each Party may also
call for special meetings of a Committee to resolve particular matters requested by such Party and
within the areas of responsibility of such Committee. Each Committee’s Chair shall ensure that its
Committee members receive adequate notice of such meetings.

4.6 Decision Making. Decisions of each Committee shall be made by consensus of the members present
in person or by other means (e.g., teleconference) at any meeting, with each Party having one vote.
In order to make any decision, any Committee established under this Agreement must have present
(in person or telephonically) at least one representative of each Party. In the event that a JDC
Subcommittee does not reach consensus with respect to a particular matter endeavoring in good faith
for *** (***) days to do so, then the Parties shall refer such issue to the JDC for resolution. In
the event that any JSC Subcommittee or the JDC does not reach consensus with respect to a
particular matter after

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endeavoring in good faith for *** (***) days to do so, then the Parties shall refer the issue to
the JSC for resolution. In the event that the JSC does not reach consensus with respect to a
particular matter after endeavoring in good faith for *** (***) days to do so, then the matter
shall be submitted to the respective executive officers of the Parties designated below or their
successors. The designated executive officers of the Parties are as follows:

	 	 	 	 	 
	 

	 	For Roche:
	 	Head of Global Development/Pharma Division
	 
	 

	 	For BioCryst:
	 	Chairman and CEO

If the positions of the designated executive officers listed above are vacant or no longer exist,
then the person having the most nearly equivalent position (or such individual’s designee) shall be
deemed to be the designated executive officer of the relevant Party. In the event that such
executives do not reach consensus with respect to such matter after endeavoring in good faith for
*** (***) days to do so, then Roche shall have the right to cast a deciding vote on such matter.
Notwithstanding anything herein to the contrary, no Committee shall have any authority to amend,
modify or waive compliance with this Agreement.

4.7 Interactions Between Committees. The Parties recognize that while they will establish various
Committees for the purposes hereof, each Party maintains internal structures (including its own
committees, teams and review boards) that will be involved in administering such Party’s activities
under this Agreement. The Parties shall establish procedures to facilitate communications between
the various Committees hereunder and the relevant internal committee, team or board within the
Party in order to maximize the efficiency of the Parties’ activities pursuant to this Agreement.
In addition, each Committee shall coordinate with each other as appropriate.

4.8 Performance of Representatives. BioCryst and Roche shall cause each of their representatives
on a Committee established under this Agreement to vote, and shall otherwise perform their
respective activities under this Agreement, in a good faith manner.

ARTICLE 5 DILIGENCE AND SPECIAL INDICATIONS

5.1 Diligence. During the Term of the Agreement, Roche, directly or through its Affiliates, shall
use Commercially Reasonable Efforts in the Major Market Countries in order to Develop, manufacture
and Commercialize Licensed Product in the Field. ***. Roche shall fulfill its obligations
hereunder in compliance with all Laws.

     (a) ***.

     (b) ***.

     (c) ***.

     (d) ***.

     (e) ***.

     (f) ***.

     (g) ***.

     (h) ***.

5.2 Special Indications. BioCryst shall have the right, at its sole cost and expense, to develop
the Compound for use in any Special Indication.

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5.3 Development Plan. BioCryst shall, to the extent it exists, deliver to Roche its Development
plan for any Special Indication with respect to which it desires to conduct development. BioCryst
shall update this plan by delivering a written supplement to Roche from time to time during the
term of this Agreement. BioCryst shall also present the development plans to the JSC.

5.4 Reports. BioCryst will provide the JSC within *** (***) days of each June 30 and December 31
during the Term of this Agreement, a written report summarizing for the preceding semi-annual
period all BioCryst development activities, including publications, related to any relevant Special
Indication Product.

5.5 End of Phase IIb.

     (a) BioCryst shall notify in writing Roche in the event that BioCryst determines that any
clinical trial results in a Special Indication would justify commencing a pivotal trial directed to
obtaining Regulatory Approval in the U.S. for such indication
(“End of Phase IIb Notice”). The
Notice shall be accompanied by (i) data and information that BioCryst reasonably believes is
sufficient to justify commencing such trial, including without limitation the clinical trial
results, (ii) the proposed end points with respect to which BioCryst proposes such pivotal trial,
and (iii) accrued BioCryst Development Costs through the most recent Calendar Quarter for which
BioCryst financial information is available prior to the date of the Notice. Roche shall have the
right to request, and BioCryst shall endeavor to timely supply any existing additional data and
information from BioCryst that Roche believes to be reasonably required or useful to make its
decision to file or not to file hereunder.

     (b) Within *** (***) days after receipt by Roche of the End of Phase IIb Notice and the
accompanying information requested by Roche or set forth in Section 5.5(a)(i) — (iii), Roche shall
notify BioCryst in writing of whether Roche (i) elects to commence such pivotal trial, or (ii) will
not commence such a trial (in which case BioCryst shall be entitled to commence the trial and
continue to develop the Special Indication Product). If Roche notifies BioCryst pursuant to (i) of
the foregoing sentence, then Roche shall, simultaneous with Roche’s notice, (i) reimburse BioCryst
*** percent (***%) of BioCryst’s Development Costs, excluding material supplied by Roche, for such
Special Indication Product, (ii) bear the costs of making the pivotal trial, and thereafter
exercise Commercially Reasonable Efforts in accordance with the terms and conditions of this
Agreement to Develop and Commercialize such Special Indication Product (which, for all purposes
hereunder, shall be deemed to be a Licensed Product).

5.6 Registration.

     (a) BioCryst shall notify in writing Roche in the event that BioCryst determines that any
clinical trial results in a Special Indication would justify filing in the U.S. for Regulatory
Approval for such indication (“Filing Notice”). The Filing Notice shall be accompanied by (i) data
and information that BioCryst reasonably believes is sufficient to justify such filing, including
without limitation the clinical trial results, (ii) the proposed labeling with respect to which
BioCryst proposes such filing, and (iii) accrued BioCryst Development Costs through the most recent
Calendar Quarter for which BioCryst financial information is available prior to the date of the
Filing Notice. Roche shall have the right to request, and BioCryst shall endeavor to timely
supply, any existing additional data and information from BioCryst that Roche believes to be
reasonably required or useful to make its decision to file or not to file hereunder.

     (b) Within *** (***) days after receipt by Roche of the Filing Notice and accompanying
information requested by Roche or set forth in Section 5.6(a)(i) — (iii), Roche shall notify
BioCryst in writing of whether Roche (i) elects to make such a filing, or (ii) will not make such a
filing. If Roche notifies BioCryst pursuant to (i) of the foregoing sentence, then Roche shall,
simultaneous with Roche’s notice, (i) reimburse BioCryst *** percent (***%) of BioCryst’s
Development Costs, excluding material supplied by Roche, of such Special Indication Product and
(ii) bear the costs of making any filing. In addition, royalties otherwise due hereunder from
Roche to BioCryst with respect to such Special Indication Product shall be increased by *** (***%)
percent with respect to sales of such Special Indication Product. BioCryst shall not be entitled
to make a filing for registration of a Special Indication Product with any Regulatory Authority and
shall not be entitled to commercialize any Special Indication Product.

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5.7 Sequencing of Licensed Products. The Parties acknowledge that, even within the Major Market
Countries, Roche and its Affiliates do not seek to obtain regulatory approval for every potential
indication or every compound that has potential for an indication. The parties agree that the JSC
shall be responsible for determining the sequencing of Licensed Products on an indication by
indication basis.

ARTICLE 6 CLINICAL TRIALS, REGULATORY

MATTERS AND MANUFACTURING

6.1 Clinical Trials and Regulatory Matters. Roche shall be responsible for all prospective costs
by or on behalf of the Roche Group that are associated with the Development and Commercialization
of Licensed Product in the Field, including clinical trials and regulatory submissions.

     (a) The IND for Licensed Product shall be transferred to Roche as soon as practicable after
the Effective Date. Roche shall be responsible for all regulatory affairs in all countries related
to Licensed Product, provided that with respect to any activities conducted by BioCryst in the
United States that Roche will, to the extent permitted by Law, provide all drug master files or
other regulatory dossiers containing information necessary or useful to BioCryst in connection with
such activities. In addition, Roche shall promptly provide BioCryst with copies of all clinical
data (upon request by BioCryst) and with all material correspondence with Regulatory Authorities
and all annual reports and summaries provided to any Regulatory Authority relating to Licensed
Products or Compound, to the extent permitted by Law.

     (b) Roche shall be responsible for reporting to the appropriate regulatory authorities all
adverse events related to the use of Licensed Product worldwide, except that prior to the transfer
of the IND to Roche as provided herein, BioCryst shall be responsible.

     (c) BioCryst shall have the right to file in BioCryst’s name INDs for any Special Indication.
Roche shall, at no cost to BioCryst, provide permission to allow BioCryst to cross-reference Roche
filings to allow BioCryst to carry out without delay any related clinical trial. BioCryst shall
advise and consult with Roche with respect to any significant issues or questions raised by any
regulatory authorities with respect to any such IND or related clinical trial. BioCryst shall
provide copies to Roche of any such IND and any other records of interactions with regulatory
authorities (e.g., correspondence, minutes or notes of telephone conferences or meetings, etc.)
with respect to any such IND or related clinical trials in a Major Market Country.

     (d) To the extent Roche is required under applicable Law, rule or regulation, Roche shall make
all filings necessary to permit the use of the clinical materials supplied by Roche pursuant to
Section 6.3(a). BioCryst and Roche shall each supply the other copies of all regulatory filings
and/or the appropriate data related to the use of the clinical materials for such development
promptly after the time of such filings.

     (e) To the extent permitted by applicable Law, Roche agrees to seek approval from the
Regulatory Authorities in the Major Market Countries to prominently include on all packaging,
labeling, inserts, Web sites, Promotional Material and other written materials used with Licensed
Products for Sale and all samples thereof (collectively,
“Product Materials”) that BioCryst is
licensor of the Licensed Product. BioCryst shall provide the text and style to Roche of the
BioCryst trademark (the “BioCryst Trademark”) prior to submission to the applicable Regulatory
Authority in a Major Market Country. To the extent such approval is received (and in any event in
situations where approval is not necessary) Roche agrees to include the BioCryst Trademark on all
of the foregoing materials. BioCryst shall also use its reasonable efforts to assist Roche in any
submission to the applicable Regulatory Authority in a Major Market Country pursuant to this
Section 6.1(e).

     (f) During the Term hereof, BioCryst grants to Roche and its Affiliates a nonexclusive,
nontransferable, limited right to use the BioCryst trademark designated by BioCryst on such
Product Materials to identify BioCryst as the licensor of the Licensed Product. Roche acknowledges
that (i) BioCryst is the sole and exclusive owner of the BioCryst Trademark and all combinations,
forms and derivatives thereof which may hereafter be approved by BioCryst for use by Roche or its
Affiliates

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hereunder, (ii) Roche’s right to use the BioCryst Trademark shall be governed exclusively by
this Agreement, and (iii) all good will from use of the BioCryst Trademark by Roche or its
Affiliates shall inure solely to the benefit of BioCryst. Roche further acknowledges the great
value of the goodwill associated with the BioCryst Trademark and acknowledges that the BioCryst
Trademark and all the rights therein, and goodwill attached thereto, belong exclusively to
BioCryst. Roche shall cooperate fully and in good faith with BioCryst for the purpose of securing,
preserving and protecting BioCryst’s rights in and to the BioCryst Trademark and any secondary
trademarks that may be used by Roche or its Affiliates with the approval of BioCryst. Roche shall
not use the BioCryst Trademark except on the Product Materials in accordance with Section 6.1(e),
and shall use the BioCryst Trademark strictly in compliance with all applicable Laws. Roche shall
duly display all other notices with respect to the BioCryst Trademark on the Product Materials, as
are or may be required by the trademark Laws and regulations applicable in each applicable
jurisdiction. BioCryst shall have the right to approve all use of the BioCryst Trademark on the
Product Materials.

6.2 Adverse Event Reporting. Each Party shall notify the other of all information coming into its
possession (including information of the BioCryst licensors to the Pre-Existing Third Party License
Agreement) concerning any and all side effects, injury, toxicity, pregnancy or sensitivity reaction
associated with commercial or clinical uses, studies, investigations or tests with Compound, Backup
Compounds, or Licensed Product, throughout the world, whether or not determined to be attributable
to Compound, Backup Compounds or Licensed Product (“Adverse
Event Reports”). The Parties shall
enter into a pharmacovigilance agreement prior to commencing development of a Special Indication
Product.

6.3 Manufacturing and Technical Assistance.

     (a) Provided that Roche uses good faith efforts in order to assist BioCryst in fulfilling its
obligations hereunder, BioCryst shall: (1) during the first twenty-four (24) months after the
Effective Date supply (in accordance with the guidelines set forth on Exhibit 6.3(a)(1)) at its own
cost all Compound required to be used for Development of Licensed Product in the Field; provided,
however, that notwithstanding anything to the contrary contained in Exhibit 6.3(a)(1), BioCryst
shall not be obligated to provide Roche more than *** of Compound, and (2) within sixty (60) days
of the Effective Date, commence a Know-How transfer (in accordance with the guidelines set forth on
Exhibit 6.3(a)(2)), to Roche that will enable Roche to manufacture Licensed Product. The clinical
supply of Compound shall meet current good manufacturing practices of the FDA (as set forth in 21
C.F.R. Parts 210 and 211) and the ICH guidelines of the European Union and all other applicable
rules, regulations, guides and guidances. Promptly after the Closing Date, BioCryst shall deliver
to Roche: (i) *** of all intermediates pure enough to calibrate analytical instruments, (ii)
analytical methods, (iii) batch records of the whole chemical synthesis, to the extent they exist,
(iv) safety investigation reports for all chemical steps, and (v) a list of key suppliers including
agreements (if any) and all respective lead times. After transition of manufacturing to Roche as
contemplated in this paragraph, Roche shall be responsible to supply, at its own cost, all clinical
supply of Compound required for Development of Licensed Product in the Field, as approved by the
JSC. In consideration for BioCryst’s agreement to supply Roche with Compound as set forth herein,
Roche agrees to prepay BioCryst’s costs and expenses incurred in manufacturing such Compound in the
amount of five million dollars ($5,000,000) (the “Contract Manufacturing and Manufacturing Transfer
Fee”), which shall be due within *** (***) days of (i) the Closing Date of this Agreement and (ii)
receipt by Roche of an invoice (in BioCryst’s standard invoice format) for such sum.

     (b) The Contract Manufacturing and Manufacturing Transfer Fee shall be nonrefundable and
noncreditable.

     (c) Roche shall be solely and exclusively responsible at its own expense for the technical
development, manufacture and supply of Licensed Product during Development and for sale in the
Field.

     (d) BioCryst shall be allowed to manufacture Compound for its use in connection with the
development of Special Indication Products or, after ***, request supply of Compound and/or
Licensed Product from Roche for use by BioCryst in connection with the development of Special
Indication

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Products. Provided there is no impact on Roche’s Development and Commercialization of
Licensed Product or other products, Roche shall supply BioCryst with Compound and/or Licensed
Product for use by BioCryst in connection with the development of Special Indication Products at
Roche’s ***.

     (e) If Roche requests that BioCryst provide Roche with technical assistance in transferring
technology required for the manufacture of Compound at a Roche Group manufacturing facility,
BioCryst shall provide one visit of up to five days in duration of one full time employee’s time to
provide such services. Thereafter, Roche shall pay BioCryst on a time and materials basis at
commercially competitive hourly consulting rates for technical personnel time. In connection with
all of the foregoing, Roche shall also reimburse BioCryst for BioCryst’s reasonable out-of-pocket
expenses, including travel and lodging expenses.

ARTICLE 7 CONSIDERATION

7.1 Lump Sum Payments. In consideration for the licenses granted herein, Roche shall pay BioCryst
a non-refundable, non-creditable payment in the amount of twenty five million dollars ($25,000,000)
within *** (***) days after (i) the Closing Date of this Agreement and (ii) receipt by Roche of an
invoice (in BioCryst’s standard invoice format) for such sum.

7.2 Development Event Payments. Roche shall promptly notify BioCryst after an event in this
Section 7.2 has occurred. If any Royalty-Bearing Product reaches a following event for an
Autoimmune Indication, then Roche shall pay BioCryst the corresponding payment within *** (***)
days of achievement of such event and receipt by Roche of an invoice from BioCryst (in BioCryst’s
standard invoice format):

	 	 	 	 	 
	Start Phase IIb:
	 	$	*	**
	Start Phase III or Pivotal:
	 	$	*	**
	 
	 	 	 	 
	First NDA filing or Foreign Equivalent:
	 	 	 	 
	USA
	 	$	*	**
	Western Europe
	 	$	*	**
	Japan
	 	$	*	**
	 
	 	 	 	 
	NDA Approval or Foreign Equivalent:
	 	 	 	 
	USA
	 	$	*	**
	Western Europe
	 	$	*	**
	Japan
	 	$	*	**

If any Royalty-Bearing Product reaches a following event for up to two (2) additional Autoimmune
Indications, then Roche shall pay BioCryst the corresponding payment within *** (***) days of
achievement of such event and receipt by Roche of an invoice from BioCryst (in BioCryst’s standard
invoice format):

	 	 	 	 	 	 	 	 	 
	 	 	1st OTHER	 	2NDOTHER
	 	 	INDICATION	 	INDICATION
	 
	Start Phase IIa:
	 	$	*	**	 	$	*	**
	Start Phase IIb:
	 	$	*	**	 	$	*	**
	Start Phase III or Pivotal:
	 	$	*	**	 	$	*	**
	 
	 	 	 	 	 	 	 	 
	First NDA filing or
Foreign Equivalent:
	 	 	 	 	 	 	 	 
	USA
	 	$	*	**	 	$	*	**

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	 	 	1st OTHER	 	2NDOTHER
	 	 	INDICATION	 	INDICATION
	 
	Western Europe
	 	$	*	**	 	$	*	**
	Japan
	 	$	*	**	 	$	*	**
	NDA Approval or Foreign
Equivalent:
	 	 	 	 	 	 	 	 
	USA
	 	$	*	**	 	$	*	**
	Western Europe
	 	$	*	**	 	$	*	**
	Japan
	 	$	*	**	 	$	*	**

The above payments for Autoimmune Indications are payable for each achievement by any
Royalty-Bearing Product of the above-mentioned event; provided, however, no more than one payment
can ever be payable for a given Autoimmune Indication, regardless of the number of times of
achievement of the event for the given Indication.

By way of example and not limitation, if a first Royalty-Bearing Product in an Autoimmune
Indication (the “First Royalty-Bearing Product”) reaches the Start of Phase IIb, then the event
payment would be *** dollars ($***). If after the First Royalty-Bearing Product reaches the Start
of Phase IIb, any Royalty-Bearing Product in an Autoimmune Indication different than the Autoimmune
Indication of the First Royalty-Bearing Product reaches the Start of Phase IIa (the “Second
Royalty-Bearing Product”), then the event payment would be *** dollars ($***). If the Second
Royalty-Bearing Product reaches the Start of Phase III prior to the time that the First Royalty
Bearing Product reaches the Start of Phase III, then the event payment would be *** dollars ($***)
because the Second Royalty-Bearing Product is the first Autoimmune Indication to reach the Start of
Phase III. If after the Second Royalty-Bearing Product reaches the Start of Phase III, the First
Royalty-Bearing Product reaches the Start of Phase III, then the event payment would be *** dollars
($***), because the First Royalty-Bearing Product is the second Autoimmune Indication to reach the
Start of Phase III.

If any Royalty-Bearing Product reaches a following event for a Transplantation Indication, then
Roche shall pay BioCryst the corresponding payment within *** (***) days of achievement of such
event and receipt by Roche of an invoice from BioCryst (in BioCryst’s standard invoice format):

	 	 	 	 	 
	START PHASE
IIa
	 	$	*	**
	Start Phase IIb
	 	$	*	**
	Start Phase III Pivotal:
	 	$	*	**
	 
	 	 	 	 
	First NDA filing or Foreign Equivalent:
	 	 	 	 
	USA
	 	$	*	**
	Western Europe
	 	$	*	**
	ROW
	 	$	*	**
	 
	 	 	 	 
	NDA Approval or Foreign Equivalent:
	 	 	 	 
	USA
	 	$	*	**
	Western Europe
	 	$	*	**
	ROW
	 	$	*	**

The above payments for Transplantation Indications are payable only one time for the given event
(e.g. the first time the event is achieved only).

Notwithstanding anything to the contrary above, in examples or otherwise, for any indication for
any Royalty-Bearing Product for which a Phase IIa event payment is payable, if a Phase IIa event
payment would otherwise be due and Roche decides not to conduct a Phase IIa trial, then the Start
of Phase IIa event payment that would otherwise be due shall be paid at the same time as the Phase
IIb event payment. If a Phase IIb event payment would otherwise be due and Roche decides not to
conduct a

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Phase IIb trial, then the Start of Phase IIb event payment that would otherwise be due shall be
paid at the same time as the Phase III event payment.

7.3 Commercial Event Payments. If aggregate Net Sales for all Royalty-Bearing Products exceed ***
dollars ($***) in any given calendar year, then Roche shall pay BioCryst a one-time payment of ***
dollars ($***) within *** (***) days after achievement of such event. If aggregate Net Sales for
all Royalty-Bearing Products exceed *** dollars ($***) in any given calendar year, then Roche shall
pay BioCryst a one-time payment of *** dollars ($***) within *** (***) days of achievement of such
event. If aggregate Net Sales for all Royalty-Bearing Products exceed *** dollars ($***) in any
given calendar year, then Roche shall pay BioCryst a one-time payment of *** dollars ($***) within
*** (***) days after achievement of such event. For the purposes of clarity, each of the above
payments is payable only the first time the associated commercial event is triggered.

7.4 Royalties. Roche shall pay BioCryst, on a country-by-country basis, and on a Royalty-Bearing
Product by Royalty-Bearing Product basis a royalty payment on incremental Net Sales according to
the following rates for the following ranges of Net Sales:

	 	 	 
	CUMULATIVE NET SALES ($ MILLION)	 	INCREMENTAL ROYALTY RATE (%)
	***
	 	***
	***
	 	***
	***
	 	***

Notwithstanding the preceding, if no Royalty-Bearing Product has received NDA Approval in a Major
Market Country for an Autoimmune Indication, then Roche shall pay BioCryst, on a country-by-country
basis, a royalty payment on Net Sales of Royalty-Bearing Products according to the following rates:

	 	 	 
	NET SALES ($ MILLION)	 	INCREMENTAL ROYALTY RATE (%)
	***
	 	***
	***
	 	***
	***
	 	***

By way of example, if, in the year 2013, total Net Sales equals $*** and Licensed Product has
received NDA Approval in a major Market Country for at least one Autoimmune Indication, then the
royalty payable to BioCryst hereunder shall equal $***, calculated in the following manner:

	 	 	 	 	 	 	 	 	 
	AMOUNT OF NET SALES	 	ROYALTY RATE	 	 	ROYALTY PAYMENT	 
	First $***
	 	 	***	%	 	$	***	 
	Next $***
	 	 	***	%	 	$	***	 
	 
	 	 	 	 	 	 	 
	Total Royalty
	 	 	 	 	 	$	***	 

7.5 Patent Coverage Adjustment. For a given country, if there is no Valid Claim in any BioCryst
Patent in such country that, but for this Agreement would be infringed by the manufacture, use or
sale of Licensed Product in such country, then the royalty obligations from Roche to BioCryst for
such country shall be reduced by *** percent (***%) until the end of *** (***) years after First
Commercial Sale of Licensed Product in such country, and thereafter by *** percent (***%), for so
long as the Roche Group sells Licensed Product in such country. If the royalty obligations in this
Section 7.5 are prohibited by applicable Law in any country, then the royalty obligations shall
continue on a country-by-country basis until such time as the obligation is prohibited by
applicable Law. If after *** (***) years after First Commercial Sale of Licensed Product in a
given country in any given year: (i) there is no Valid Claim in any BioCryst Patent in such country
that, but for this Agreement would be infringed by the manufacture, use or sale of Licensed Product
in such country, and (ii) the global Net Sales of Licensed Product are less than *** dollars
($***), then the royalty obligations from Roche to BioCryst for such country shall be reduced by
*** percent (***%).

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7.6 Combination Licensed Products. For a Licensed Product containing (i) one or more
pharmaceutically active ingredients which are a Compound and (ii) one or more pharmaceutically
active ingredients which are not a Compound, then the Parties shall, on a country-by-country basis,
agree to an appropriate adjustment to Net Sales to reflect a good faith determination of the
relative value of each pharmaceutically active ingredient, based on the estimated fair market value
of each such therapeutically active ingredient, as follows:

     (a) In the case of a combination product for which a Licensed Product and each of the other
therapeutically active ingredients contained in the combination product are sold separately in such
country by the Roche Group, the Adjusted Gross Sales shall be determined by multiplying actual
Adjusted Gross Sales of the combination product by a fraction, the numerator of which shall be the
Gross Price of the Licensed Product as sold separately, and the denominator of which shall be the
sum of the Gross Price of the Licensed Product as sold separately and the gross amount invoiced for
all other active ingredients contained in the combination product, if sold separately.

     (b) In the case of a combination product for which the Licensed Product is sold separately in
such country but the non-Licensed Product therapeutically active ingredients contained in the
combination product are not sold separately by the Roche Group in such country, Adjusted Gross
Sales of the Licensed Product forming a part of the combination product shall be calculated by
multiplying actual Adjusted Gross Sales of such combination product by the fraction of A/C where A
is the Gross Price for the Licensed Product used in the combination if sold separately by the Roche
Group and C is the gross amount invoiced for the combination product.

     (c) If in a country neither the Licensed Product nor the therapeutically active ingredients
contained in the combination product are sold separately in said country by the Roche Group,
Adjusted Gross Sales of the Licensed Product forming part of the combination product shall be
reasonably determined by allocating value between the Licensed Product and the other
therapeutically active ingredients based on their relative value as determined by the Parties in
good faith. In the case where the parties are unable to agree on the relative value, the Parties
shall agree upon an internationally recognized independent certified public accountant who shall
make such determination and whose determination shall be final and binding on the Parties.

7.7 Payments to Third Parties. BioCryst shall maintain the Pre-Existing Third Party License at its
own cost. If BioCryst’s licensor claims a payment is due under the Pre-Existing Third Party
License and BioCryst does not agree to make such payment, then BioCryst shall promptly advise Roche
in writing of such fact. Other than with respect to the Pre-Existing Third Party License, the
Roche Group shall obtain all licenses from any Third Party necessary to make, have made, use, offer
for sale, sell or import Royalty-Bearing Products, at its own cost.

7.8 Generic Sales Adjustment. If there is no Valid Claim, then Roche may reduce the royalties
otherwise due for Licensed Product in a given country by *** percent (***%) if, in the country,
sales of units of Generic Licensed Product in aggregate total at least *** percent (***%) of the
aggregate sales of units of (i) Licensed Product sold by the Roche Group and (ii) Generic
Licensed Products.

7.9 Royalties Due Once. The obligation to pay royalties to BioCryst under this Agreement is
imposed only once with respect to the same unit of Licensed Product.

ARTICLE 8 PAYMENTS; RECORDS; AUDIT

8.1 Payment of Royalties. Following the First Commercial Sale in a country, within *** (***) days
after the end of each Calendar Quarter during the Term of this Agreement, Roche shall (i) provide
BioCryst with a report detailing, on a Royalty-Bearing Product and country-by-country basis, the
Adjusted Gross Sales and Net Sales for the Calendar Quarter and (ii) pay royalties to BioCryst
under this Agreement for the Calendar Quarter. Within *** (***) days after the end of each
calendar year, Roche shall provide BioCryst with ***. Roche shall provide reports to BioCryst at
the address listed below:

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BioCryst Pharmaceuticals, Inc.

2190 Parkway Lake Drive

Birmingham, Alabama 35244

Attention: Chief Financial Officer

     (a) Roche shall pay royalties to BioCryst under this Agreement by wire transfer to the bank
account listed below:

     ***

8.2 Currency. All Royalties shall be paid by Roche in U.S. Dollars. Roche shall convert the amount
of all Sales in currencies other than U.S. Dollars into U.S. Dollars using Roche’s then current
standard practices actually used on a consistent basis.

8.3 Payments Nonrefundable. Except as provided for in this Agreement, all payments made hereunder
shall be nonrefundable and non-creditable.

8.4 Roche Records and Audit. Roche and its Affiliates shall keep full, true and accurate books of
account containing all particulars that may be necessary for the purpose of calculating all
royalties and other payments payable under this Agreement.

     (a) Such books of accounts shall be kept at the maintaining Party’s principal place of
business. At the expense of BioCryst, BioCryst has the right to engage *** to perform, on behalf of
BioCryst an audit of such books and records of Roche and its Affiliates to report on Net Sales of
Licensed Product for the period or periods requested by BioCryst and the correctness of any report
or payments made under this Agreement.

     (b) Upon not less than *** (***) days’ prior written notice from BioCryst, such audit shall be
conducted in the countries specifically requested by BioCryst, during regular business hours in
such a manner as to not unnecessarily interfere with Roche’s normal business activities, and shall
be limited to results in the two (2) calendar years prior to audit notification. Such audit shall
not be performed more frequently than once per calendar year.

     (c) All information, data documents and abstracts herein referred to shall be used only for
the purpose of verifying royalty statements or compliance with this Agreement, shall be treated as
Roche Confidential Information subject to the obligations of this Agreement, and (provided that
there is at that time no request or an audit or an ongoing audit), need neither be retained more
than one (1) year after completion of an audit hereof, if an audit has been requested; nor more
than two (2) years from the end of the calendar year to which each shall pertain; nor more than two
(2) years after the date of termination of this Agreement, unless a longer period is required by
Law.

     (d) Audit results and findings shall be shared by Roche and BioCryst. If the audit reveals an
overpayment, BioCryst shall reimburse Roche for the amount of the overpayment within *** (***)
days. If the audit reveals an underpayment, Roche shall make up such underpayment within *** (***)
days, ***. If the audit reveals an underpayment in the amount of *** percent (***%) or more, then
Roche shall reimburse BioCryst for the costs of the audit. The failure of BioCryst to request
verification of any royalty calculation within the period during which corresponding records must
be maintained will be deemed to be acceptance of the royalty reporting.

8.5 BioCryst Records and Audit. BioCryst and its Affiliates shall keep full, true and accurate
books of account containing all particulars that may be necessary for the purpose of calculating
all sums invoiced under this Agreement.

     (a) Such books of accounts shall be kept at the maintaining Party’s principal place of
business. At the expense of Roche, Roche has the right to engage *** to perform, on behalf of Roche
an

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audit of such books and records of BioCryst to verify the correctness of any Development Costs
invoiced under this Agreement.

     (b) Upon not less than *** (***) days’ prior written notice from Roche, such audit shall be
conducted in the countries specifically requested by Roche, during regular business hours in such a
manner as to not unnecessarily interfere with BioCryst’s normal business activities, and shall be
limited to results in the two (2) calendar years prior to audit notification. Such audit shall not
be performed more frequently than once per calendar year.

     (c) All information, data documents and abstracts herein referred to shall be used only for
the purpose of verifying invoices under this Agreement, shall be treated as BioCryst Confidential
Information subject to the obligations of this Agreement, and (provided that there is at that time
no request for an audit or an ongoing audit), need neither be retained more than one (1) year after
completion of an audit hereof, if an audit has been requested; nor more than two (2) years from the
end of the calendar year to which each shall pertain; nor more than two (2) years after the date of
termination of this Agreement, unless a longer period is required as a matter of Law.

     (d) Audit results and findings shall be shared by Roche and BioCryst. If the audit reveals an
overpayment of Development Costs by Roche, BioCryst shall reimburse Roche for the amount of the
overpayment within *** (***) days, ***. If the audit reveals an overpayment of Development Costs in
the amount of *** percent (***%) or more, then BioCryst shall reimburse Roche for the costs of the
audit. If the audit reveals an underpayment, then Roche shall promptly pay all amounts due.

8.6 Withholding Taxes. BioCryst shall pay all sales, turnover, income, revenue, value added, and
other taxes levied on account of event payments, royalties and any other payments accruing or made
to BioCryst under this Agreement. If provision is made in Law of any country for withholding of
taxes of any type, levies or other charges with respect to any royalty or other amounts payable
under this Agreement to BioCryst; then (i) Roche shall promptly notify BioCryst of such Law in
advance of the payment requiring the withholding; and (ii) Roche shall promptly pay such tax, levy
or charge for and on behalf of BioCryst to the proper governmental authority, and shall promptly
furnish BioCryst with receipt of payment. Roche shall be entitled to deduct any such tax, levy or
charge actually paid from royalty or other payment due BioCryst or be promptly reimbursed by
BioCryst if no further payments are due BioCryst. Each Party agrees to assist the other Party in
claiming exemption from such deductions or withholdings under double taxation or similar agreement
or treaty from time to time in force and in minimizing the amount required to be so withheld or
deducted (including by maintaining or changing, as reasonably necessary and in accordance with
applicable Law, the payor of amounts under this Agreement) or obtaining any available refund of
amounts so withheld or deducted.

	 
	ARTICLE 9 INTELLECTUAL PROPERTY

9.1 Prosecution of BioCryst Patent Rights.

     (a) BioCryst Patents. BioCryst shall prepare, file, prosecute and maintain (hereinafter
“Patent Activities”) the BioCryst Patents, at its expense. BioCryst shall consult with Roche as to
the Patent Activities, and furnish to Roche copies of all substantive documents relevant to the
Patent Activities. BioCryst shall furnish such documents and consult with Roche in sufficient time
(at least one week) before any action by BioCryst is due, to allow Roche to provide comments
thereon, which comments BioCryst will consider in good faith. BioCryst will not reduce the scope
of any claim related to the Compound in a given patent application without the prior written
approval of Roche, which approval shall not be unreasonably withheld or delayed. At BioCryst’s
expense and reasonable request, Roche shall cooperate in all reasonable ways in connection with the
Patent Activities. Should BioCryst decide that it does not desire to continue the Patent
Activities in relation to a BioCryst Patent in any given country, or in relation to any pending
claim, it shall promptly advise Roche thereof. At the written request of Roche, BioCryst shall
continue at Roche’s expense and direction to prosecute and/or maintain such

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BioCryst Patent or pending claim in such country. At Roche’s expense and reasonable request,
BioCryst shall cooperate in all reasonable ways in connection with the Patent Activities of such
BioCryst Patent or pending claim.

     (b) Roche Patents. Roche shall be responsible for the Patent Activities relating to the Roche
Patents. Roche shall consult with BioCryst as to the Patent Activities, and furnish to BioCryst
copies of all substantive documents relevant to the Patent Activities. Roche shall furnish such
documents and consult with BioCryst in sufficient time (at least one week) before any action by
Roche is due to allow BioCryst to provide comments thereon, which comments Roche must consider. At
Roche’s expense and reasonable request, BioCryst shall cooperate, in all reasonable ways in
connection with the Patent Activities. Should Roche decide that it does not desire to continue the
Patent Activities related to a Roche Patent(s) in a country, it shall promptly advise BioCryst
thereof. At the written request of BioCryst, Roche shall then, at no cost to BioCryst, assign to
BioCryst such Roche Patent in such country or countries, and BioCryst may thereafter handle the
Patent Activities at BioCryst’s own cost, to the extent that BioCryst desires to do so. At
BioCryst’s expense and reasonable request, Roche shall cooperate, in all reasonable ways in
connection with the Patent Activities of such Roche Patents.

9.2 Infringement. Each Party shall promptly provide written notice to the other Party during the
Term of this Agreement of any (i) known infringement or suspected infringement by a Third Party of
any BioCryst Patent or Roche Patent in the Field, (ii) known or suspected unauthorized use or
misappropriation by a Third Party of any BioCryst Know-How or Roche Know-How in the Field, or (iii)
receipt by the Party of a paragraph iv certification for a Licensed Products pursuant to the Drug
Price Competition and Patent Term Restoration Act of 1984 (Public Law 98-417), as amended, or its
equivalent in a country other than the United States of America and shall discuss with the other
Party all evidence in its possession supporting such infringement or unauthorized use or
misappropriation.

     (a) Within a period of *** (***) days after Roche provides or receives such written notice
(“Decision Period”), Roche, in its sole discretion, shall decide whether or not to initiate a suit
or take other appropriate action in the Field and shall notify BioCryst in writing of its decision
(“Suit Notice”).

     (b) Upon BioCryst’s receipt of Suit Notice, BioCryst and Roche shall meet and confer within
*** (***) days regarding the suit or action proposed by Roche. At this meeting, BioCryst shall
present any objections or concerns regarding Roche’s proposed suit or action, especially as the
proposed suit or action relates to BioCryst Patents that have applicability outside the Field, and
Roche shall consider BioCryst’s objections or concerns in good faith. Notwithstanding the
foregoing, Roche need not obtain BioCryst’s consent to proceed with a suit or other action in the
Field.

     (c) In the event that Roche (i) does not in writing advise BioCryst within the Decision Period
that Roche will commence suit or take action in the Field, or (ii) fails to commence suit or take
action in the Field within a reasonable time after providing Suit Notice, then BioCryst shall
thereafter have the right to commence suit or take action and shall provide written notice to Roche
prior to commencement of any such suit or action taken by BioCryst.

     (d) Upon
written request, the Party bringing suit or taking action
(“Initiating Party”) shall
keep the other Party informed of the status of any such suit or action and shall provide the other
Party with copies of all substantive documents and communications filed in such suit or action that
are not protected by the attorney-client privilege or work product protection. The Initiating
Party shall have the sole and exclusive right to select counsel for any such suit or action.

     (e) The Initiating Party shall, except as provided below, pay all expenses of the suit or
action, including, without limitation, the Initiating Party’s attorneys’ fees and court costs. Any
damages, settlement fees or other consideration received as a result of a suit or action initiated
by Roche shall be treated as Net Sales pursuant to this Agreement after the Initiating Party
deducts from the damages, settlement fees or other consideration received its actual counsel fees
and out-of-pocket expenses. Any damages, settlement fees or other consideration received as a
result of a suit or action initiated by BioCryst shall be given *** percent (***%) to *** after
BioCryst deducts from the damages, settlement fees

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or other consideration received, its actual counsel fees and out-of-pocket expenses and the
actual counsel fees and out-of-pocket expenses of Roche.

     (f) If the Initiating Party believes it reasonably necessary, upon written request the other
Party shall join as a Party to the suit or action but shall be under no obligation to participate
except to the extent that such participation is required as the result of its being a named Party
to the suit or action. At the Initiating Party’s written request, the other Party shall offer
reasonable assistance to the Initiating Party in connection therewith at no charge to the
Initiating Party except for reimbursement of reasonable out-of-pocket expenses incurred by the
other Party in rendering such assistance. The other Party shall have the right to participate and
be represented in any such suit or action by its own counsel at its own expense.

     (g) When Roche is the Initiating Party, Roche shall not settle, consent to judgment or
otherwise voluntarily dispose of the suit or action without discussing such action with BioCryst
and considering any objection by BioCryst in good faith. Notwithstanding the foregoing, Roche need
not obtain BioCryst’s consent to settle, consent to judgment or otherwise voluntarily dispose of
the suit or action in the Field with the exception of any settlement, consent judgment, or other
voluntary disposal of the suit or action that would have the effect of rendering any of the patent
claims invalid, unenforceable, or disclaimed, in which instance Roche must first obtain BioCryst’s
consent, and said consent shall not be unreasonably withheld or delayed.

9.3 Hatch-Waxman. Notwithstanding anything herein to the contrary, should a Party receive a
certification for a Product pursuant to the Drug Price Competition and Patent Term Restoration Act
of 1984 (Public Law 98-417), as amended, or its equivalent in a country other than the United
States of America, then such Party shall immediately provide the other Party with a copy of such
certification. Roche shall have thirty (30) days from date on which it receives or provides a copy
of such certification to provide written notice to BioCryst
(“H-W Suit Notice”) whether Roche will
bring suit, at its expense, within a forty-five (45) day period from the date of such
certification. Should such thirty (30) day period expire without Roche bringing suit or providing
such H-W Suit Notice, then BioCryst shall be free to immediately bring suit in its name.

ARTICLE 10 CONFIDENTIAL INFORMATION

10.1 Non-Use and Non-Disclosure. During the Term of this Agreement and for *** (***) years
thereafter (or, with respect to trade secrets, indefinitely), a Receiving Party shall (i) treat
Confidential Information provided by Disclosing Party as it would treat its own information of a
similar nature, (ii) take all reasonable precautions not to disclose such Confidential Information
to Third Parties, except to Affiliates, without the Disclosing Party’s prior written consent, and
(iii) not use such Confidential Information other than for fulfilling its obligations under this
Agreement. In the event this Agreement is terminated, all Confidential Information assigned by
Roche to BioCryst shall be deemed to be BioCryst Confidential Information. The Confidential
Information disclosed pursuant to the Non-Disclosure Agreement between Roche-Nutley and BioCryst
dated April 5, 2005 shall be considered Confidential Information hereunder.

10.2 Authorized Disclosure. Nothing in this Agreement shall prevent either Party from conducting
the Patent Activities relating to a patent application or its resulting patents related to a
Licensed Product. Nothing in this Agreement shall prevent the Roche Group from disclosing
Confidential Information to (i) governmental agencies of any country to the extent required or
desirable to secure government approval for the Development, manufacture or sale of Licensed
Product, (ii) Third Parties acting on behalf of the Roche Group, to the extent reasonably necessary
for the Development, manufacture or sale of Licensed Product (and provided that Roche has a written
confidentiality agreement with such Third Party which is as protective of such Confidential
Information as the terms of this Agreement), or (iii) Third Parties to the extent reasonably
necessary to market Licensed Product (and provided that Roche has a written confidentiality
agreement with such Third Party which is as protective of such Confidential Information as the
terms of this Agreement). To the extent provided for in this Agreement, BioCryst may disclose
Confidential Information to its licensors pursuant to the Pre-Existing Third Party License,
provided that

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such information shall be treated as Licensee Confidential Information under the Pre-Existing Third
Party License.

ARTICLE 11 TERMINATION

11.1 Commencement and Term. The Term of this Agreement shall commence upon the Effective Date and,
unless this Agreement is terminated sooner as provided in this Article, expire on the date when no
royalty or other payment obligations under this Agreement are or will become due, at which time all
the rights and licenses granted to Roche by BioCryst under this Agreement shall automatically
become irrevocable and fully-paid.

11.2 Termination for Breach.

     (a) A Party (“Non-Breaching Party”) shall have the right to terminate this Agreement in
accordance with this Section 11.2(a), as follows: (i) ***; and/or (ii) ***; and/or (iii) ***;
and/or (iv) ***, in the event the other Party (“Breaching Party”) is in breach of any of its
material obligations under this Agreement. The Non-Breaching Party shall provide written notice to
the Breaching Party, which notice shall identify the breach and the countries in which the
Non-Breaching Party intends to have this Agreement terminate. The Breaching Party shall have a
period of *** (***) days after such written notice is provided to cure such breach. If such breach
is not cured within the *** (***) day period, this Agreement shall effectively terminate in such
countries.

     (b) Either Party shall have the right to terminate this Agreement in its entirety by giving
written notice to the other Party, in the event of an Insolvency Event of the other Party, such
termination to become effective upon delivery of a notice of termination to such Party. Termination
pursuant to this Section 11.2(b) shall be considered termination for “cause” for the purposes of
this Agreement.

     (c) The waiver by either Party of any breach of any term or condition of this Agreement shall
not be deemed a waiver as to any subsequent or similar breach.

11.3 Termination by Roche Without Cause.

     (a) Prior to the Commercial Launch of the First Licensed Product. Prior to the commercial
launch of the first Licensed Product, Roche shall have the right to terminate this Agreement (i)
***, and/or (ii) ***, and/or (iii) ***, and/or (iv) ***. The effective date of termination shall be
*** (***) days after the date Roche provides such written notice.

     (b) After FDA or EMEA Approval For A Licensed Product. After FDA or EMEA approval for a
Licensed Product, Roche shall have the right to terminate this Agreement on *** (i) ***, and/or
(ii) ***, and/or (iii) ***, and/or (iv) ***. The effective date of termination shall be *** (***)
days after the date Roche provides such written notice.

     (c) ***.

11.4 Consequences of Termination.

     (a) Partial Termination. Upon any partial termination of this Agreement by a Party for breach
or by Roche without cause, all rights granted to Roche by BioCryst under this Agreement with
respect to such terminated countries shall terminate. Roche shall, to the extent Roche has the
right to do so, and hereby does, assign, and shall ensure that its Affiliates assign, and transfer
to BioCryst, at no expense to BioCryst, all trademarks and applications used or to be used in
connection with Licensed Products in such countries, along with all regulatory filings and
approvals and all data, including clinical data, materials (including raw materials and
manufactured Licensed Product) and information, along with all INDs, and NDAs submitted by Roche
for the Licensed Product in such countries, and to the extent possible, all contract and other
rights in Roche’s possession or control related to Licensed Products in

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such countries, along with tangible embodiments of all of the foregoing. Roche may keep one
copy of the foregoing information for archival purposes and to comply with this Agreement. Roche
shall deliver to BioCryst all of the foregoing information promptly after the effective date of
termination. Upon such transfer and assignment, BioCryst shall have the right to use, disclose and
dispose of such materials, rights and licenses in its sole discretion. Roche shall assign or, to
the extent such an assignment is prohibited by Law or third party rights, grant an exclusive, fully
paid up, sublicensable and transferable license for the Licensed Product in the Field) to BioCryst
under Roche Patent Rights and Roche Know-How (with each of the foregoing to include Roche’s
interest in any joint inventions created by the Parties) in such terminated countries. The parties
agree that in the event of a partial termination, BioCryst shall be free to (on its own or with one
or more Third Parties) develop and commercialize Licensed Products in any country with respect to
which rights under this Agreement have been terminated. To the extent any Roche Patent Rights or
Roche Know-How do not solely relate to the Licensed Product, then Roche may grant BioCryst an
exclusive license under such rights as set forth above, rather than assign such rights to BioCryst.

     (b) Termination of the Agreement in its Entirety. Upon any termination of this Agreement by a
Party for the other Party’s uncured material breach or by Roche without cause, (i) all licenses
granted to BioCryst by Roche under this Agreement shall become irrevocable, perpetual and
fully-paid, (ii) all licenses granted to Roche by BioCryst shall terminate; (iii) Roche shall
return to BioCryst all BioCryst Confidential Information and tangible examples and copies thereof;
and (iv) Roche shall and hereby does assign or, to the extent such an assignment is prohibited by
Law or third party rights, grant an exclusive, fully paid up, sublicensable and transferable
license for the Licensed Product in the Field), and shall ensure that its Affiliates assign or
exclusively license, to BioCryst all right, title and interest in and to all Roche Know-How and
Roche Patents (with each of the foregoing to include Roche’s interest in any joint inventions
created by the Parties). Roche shall, to the extent Roche has the right to do so, assign and
transfer to BioCryst, at no expense to BioCryst, all trademarks and applications used or to be used
in connection with Licensed Products in such countries, along with all regulatory filings and
approvals and all data, including clinical data, materials (including raw materials and
manufactured Licensed Product) and information, along with all INDs, and NDAs submitted by Roche
for a Licensed Product and all contract and other rights in Roche’s possession or control related
to Licensed Products, along with tangible embodiments of all of the foregoing. Roche may keep one
copy of the foregoing information for archival purposes and to comply with this Agreement. Roche
shall use its commercially reasonable efforts to deliver to BioCryst all of the foregoing in all
forms as soon as practicable but no later than *** (***) days of the effective date of termination.
Upon such transfer and assignment, BioCryst shall have the right to use, disclose and dispose of
such materials, rights and licenses in its sole discretion. To the extent any Roche Patent Rights
or Roche Know-How do not solely relate to the Licensed Product, then Roche may grant BioCryst an
exclusive license under such rights as set forth above, rather than assign such rights to BioCryst.

     (c) Further Assurances. Roche and its Affiliates shall execute and deliver any additional
documents or instruments that BioCryst reasonably requests to give effect to the foregoing
assignments and licenses under (a) and (b) above.

     (d) Contract Rights. Promptly after notice of any termination under (a) or (b) above, Roche
shall provide BioCryst with copies of all relevant sublicenses, agreements with clinical research
organizations and other Third Party agreements relating to Licensed Products hereunder, and allow
BioCryst *** (***) days from the date of such delivery to choose whether to assume any or all of
such contracts to the extent allowed by the applicable contract or Law. Roche shall, subject to its
ability to do so, assign to BioCryst those Third Party agreements BioCryst chooses to assume.

     (e) Transition. In all cases of termination, Roche shall ensure a swift and orderly
transition to BioCryst of all Licensed Products and work in progress, including ongoing clinical
trials, in connection with Licensed Products, with the continuing costs for such work assumed by
BioCryst as of the effective date of termination.

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     (f) Supply. In such event, Roche shall supply BioCryst with Compound or with Licensed
Product (at BioCryst’s option) at *** for a period of *** years, and during such period BioCryst
shall use its good faith and commercially reasonable efforts to obtain an alternate supply of
Compound or Licensed Product. If prior to the end of *** years BioCryst has obtained an alternate
supply of Compound or Licensed Product, then Roche shall be relieved of its supply obligations
hereunder.

     (g) Royalties on Roche Products. Royalties payable on Roche Products will survive termination
or expiration of this Agreement.

11.5 Royalty and Payment Obligations. Roche shall continue to make all payments accrued under this
Agreement in respect of Net Sales in the terminated countries (for a partial termination) and in
all countries (for a complete termination).

ARTICLE 12 INDEMNIFICATION

12.1 Indemnification by BioCryst. BioCryst shall indemnify, hold harmless and defend Roche and its
Affiliates and Roche’s and its Affiliates’ directors, officers, employees and agents from and
against any and all losses, expenses, cost of defense (including without limitation attorneys’
fees, witness fees, damages, judgments, fines and amounts paid in settlement) and any amounts Roche
becomes legally obligated to pay because of any claim or claims against it to the extent that such
claim or claims arise out of or relates to: (i) activities by or on behalf of BioCryst related to
Backup Compounds or Special Indication Products that were performed prior to any license to Roche
relating to any such Backup Compound or Special Indication Product (provided that all
indemnification obligations under this clause (i) with respect to any Backup Compound or Special
Indication Product shall terminate immediately upon Roche’s license to develop and/or commercialize
such Backup Compound or Special Indication Product), and/or (ii) breach of BioCryst’s
representations and warranties in ARTICLE 13, except to the extent such losses, expenses, costs and
amounts are due to the negligence or misconduct or failure to act of Roche.

12.2 Indemnification by Roche. Roche shall indemnify, hold harmless and defend BioCryst and its
Affiliates and BioCryst’s and its Affiliates’ licensors, directors, officers, employees and agents
from and against any and all losses, expenses, cost of defense (including without limitation
attorneys’ fees, witness fees, damages, judgments, fines and amounts paid in settlement) and any
amounts BioCryst becomes legally obligated to pay because of any claim or claims against it to the
extent that such claim or claims arise out of or relates to (i) the making, having made, using,
offering for sale, selling or importing Royalty-Bearing Products, Special Indication Products or
Backup Compounds (including, with respect to each of the foregoing, Development and/or
Commercialization), by or on behalf of Roche or its Affiliates (provided that all indemnification
obligations under this clause with respect to any Backup Compound or Special Indication Product
shall not include any actions by or on behalf of BioCryst prior to Roche’s license to develop
and/or commercialize such Backup Compound or Special Indication Product), (ii) any breach of
Roche’s representations and warranties set forth in ARTICLE 13, and/or (iii) any breach of the
Pre-Existing Third Party License Agreement (as read with the Consent and Waiver) arising out of any
action or inaction of the Roche Group, or by BioCryst as a result of any action or inaction by or
on behalf of the Roche Group or as a result of any direction or request by Roche, except to the
extent such losses, expenses and costs are due to the negligence or misconduct or failure to act of
BioCryst.

12.3 Procedure. In the event of a claim by a Third Party against a Party entitled to
indemnification under this Agreement (“Indemnified Party”), the Indemnified Party shall promptly
notify the other Party (“Indemnifying Party”) in writing of the claim and the Indemnifying Party
shall undertake and solely manage and control, at its sole expense, the defense of the claim and
its settlement. The Indemnified Party shall cooperate with the Indemnifying Party and may, at its
option and expense, be represented in any such action or proceeding by counsel of its choice. The
Indemnifying Party shall not be liable for any litigation costs or expenses incurred by the
Indemnified Party without the Indemnifying Party’s written consent. The Indemnifying Party shall
not settle any such claim unless such settlement fully and unconditionally releases the Indemnified
Party from all liability relating thereto, unless the Indemnified Party otherwise agrees in
writing.

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12.4 Limitation on Damages. In no event shall either Party be liable to the other Party for
special, indirect, incidental or consequential damages arising out of this Agreement other than in
connection with such Party’s indemnification obligations under this Agreement.

ARTICLE 13 REPRESENTATIONS AND WARRANTIES

13.1 Mutual Representations and Warranties. Each Party hereby represents and warrants:

     (a) Authority. Such Party has the full right and authority to enter into this Agreement, and
that it is not aware of any impediment that would inhibit its ability to perform its obligations
under this Agreement.

     (b) Material Facts. Such Party has made available to the other Party information in its
possession or control which it reasonably deems material to the other Party’s decision whether to
enter into this Agreement, and to such Party’s knowledge, information disclosed does not contain
any untrue statement of material fact or omit to state a material fact.

13.2 BioCryst Representations and Warranties. BioCryst warrants and represents that:

     (a) Safety Data. BioCryst has allowed Roche access to all material information containing,
and will continue to allow Roche access to information containing (i) the results of all
preclinical testing and human clinical testing of Licensed Product in its possession or control and
(ii) all material information in its possession or control concerning side effects, injury,
toxicity or sensitivity reaction and incidents or severity thereof with respect to Licensed
Product.

     (b) Patents. BioCryst has no knowledge of the existence of any patent or patent application
owned by or licensed to the licensors of the Pre-Existing Third Party License or any other Third
Party which would prevent the Roche Group from making, having made, using, offering for sale,
selling or importing Licensed Product. BioCryst has in the past and will continue in the future to
comply with its duty of candor to the United States Patent & Trademark Office in connection with
the Patent Activities of any BioCryst Patent. Exhibit 1.7 is a complete listing of all patents and
patent applications that are necessary for the manufacture, use or sale of the Compound or Licensed
Product(s) and that are owned or Controlled by BioCryst as of the Effective Date.

     (c) Grants. BioCryst has the right to grant Roche the rights and licenses described in this
Agreement.

     (d) Authorization. The execution, delivery and performance of this Agreement by BioCryst and
all instruments and documents to be delivered by BioCryst hereunder: (i) are within the corporate
power of BioCryst; (ii) have been duly authorized by all necessary or proper corporate action;
(iii) are not in contravention of any provision of the certificate of formation or limited
liability company agreement of BioCryst; (iv) to the knowledge of BioCryst, will not violate any
Law or regulation or any order or decree of any court of governmental instrumentality; (v) will not
violate the terms of any indenture, mortgage, deed of trust, lease, agreement, or other instrument
to which BioCryst is a Party or by which BioCryst or any of its property is bound, which violation
would have an adverse effect on the financial condition of BioCryst or on the ability of BioCryst
to perform its obligations hereunder; and (vi) do not require any filing or registration with, or
the consent or approval of, any governmental body, agency, authority or any other Person, which has
not been made or obtained previously (other than approvals required under the HSR Act, Regulatory
Approvals required for the Sale of Licensed Products and filings with regulatory authorities
required in connection with Licensed Products).

     (e) Due Execution. This Agreement has been duly executed and delivered by BioCryst and
constitutes a legal, valid and binding obligation of BioCryst, enforceable against BioCryst in
accordance with its terms, except as such enforceability may be limited by the availability of
equitable remedies.

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     (f) No Claims. There are no claims or investigations (other than with respect to the Parties’
HSR Filings), pending or threatened against BioCryst or any of its Affiliates, at Law or in equity,
or before or by any governmental authority relating to the matters contemplated under this
Agreement or that would materially adversely affect BioCryst’s ability to perform its obligations
hereunder.

     (g) No Conflict. Neither BioCryst nor any of its Affiliates is or will be under any
obligation to any person, contractual or otherwise, that is conflicting with the terms of this
Agreement or that would impede the fulfillment of BioCryst’s obligations hereunder.

13.3 Roche Representations and Warranties.

     (a) Authorization. The execution, delivery and performance of this Agreement by Roche and all
instruments and documents to be delivered by Roche hereunder: (i) are within the corporate power
of Roche; (ii) have been duly authorized by all necessary or proper corporate action; (iii) are not
in contravention of any provision of the certificate of formation or limited liability company
agreement of Roche; (iv) to the knowledge of Roche, will not violate any Law or regulation or any
order or decree of any court of governmental instrumentality; (v) will not violate the terms of any
indenture, mortgage, deed of trust, lease, agreement, or other instrument to which Roche is a Party
or by which Roche or any of its property is bound, which violation would have an adverse effect on
the financial condition of Roche or on the ability of Roche to perform its obligations hereunder;
and (vi) do not require any filing or registration with, or the consent or approval of, any
governmental body, agency, authority or any other Person, which has not been made or obtained
previously (other than approvals required under the HSR Act, Regulatory Approvals required for the
Sale of Licensed Products and filings with regulatory authorities required in connection with
Licensed Products).

     (b) Due Execution. This Agreement has been duly executed and delivered by Roche and
constitutes a legal, valid and binding obligation of Roche, enforceable against Roche in accordance
with its terms, except as such enforceability may be limited by the availability of equitable
remedies.

     (c) No Claims. There are no claims or investigations (other than with respect to the Parties’
HSR Filings), pending or threatened against Roche or any of its Affiliates, at Law or in equity, or
before or by any governmental authority relating to the matters contemplated under this Agreement
or that would materially adversely affect Roche’s ability to perform its obligations hereunder.

     (d) No Conflict. Neither Roche nor any of its Affiliates is or will be under any obligation
to any person, contractual or otherwise, that is conflicting with the terms of this Agreement or
that would impede the fulfillment of Roche’s obligations hereunder.

     (e) Insurance. Roche represents and warrants that during the Term of this Agreement and for a
period of ten years thereafter, it has and shall maintain adequate insurance and/or financial
resources to cover all liability for any failure of such Licensed Product including, without
limitation, failure in design, manufacture, production and/or operation. BioCryst acknowledges that
Roche may choose to be self-insured.

     (f) Investigation. Roche has received all information that Roche or any of its Affiliates has
requested from BioCryst with respect to the transactions contemplated hereby, and has had a
reasonable opportunity to ask questions of BioCryst and its representatives; and BioCryst has
answered all inquiries made by Roche, its Affiliates and their representatives. Roche has had the
opportunity to evaluate the merits and risks of the transactions as contemplated by this Agreement.
Furthermore, no representations or warranties have been made by BioCryst to Roche upon which Roche
is relying in connection with the transactions contemplated by this Agreement, other than as set
forth in this Agreement..

13.4 HSR Act and Other Applicable Governmental Filings. BioCryst and Roche each covenant to timely
make any required application pursuant to the HSR Act. Each Party shall cooperate fully and
promptly in the HSR notification process as well as any other applicable governmental or regulatory
filing.

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13.5 No Debarment. None of the Roche Group has been debarred or is the subject of debarment
proceedings by any Regulatory Authority. Roche shall not knowingly use in connection with its
performance of its obligations or duties or its exercise of its rights under this Agreement
(including, without limitation, the Development of any Licensed Products) any employee, consultant
or investigator that has been debarred or the subject or debarment proceedings by any Regulatory
Authority. BioCryst and its Affiliates have not been debarred and are not the subject of debarment
proceedings by any Regulatory Authority. BioCryst and its Affiliates shall not knowingly use in
connection with its performance of its obligations or duties or its exercise of its rights under
this Agreement (including, without limitation, the Development of any Licensed Products) any
employee, consultant or investigator that has been debarred or the subject or debarment proceedings
by any Regulatory Authority.

13.6 No PNP Inhibitors. As of the Effective Date, the Roche Group does not have clinical programs
relating to, and does not have any current plans to develop, any PNP Inhibitor other than Licensed
Product.

13.7 No Other Representations. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, THE FOREGOING
REPRESENTATIONS AND WARRANTIES ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF COMPOUND AND LICENSED PRODUCTS. SPECIFICALLY, BIOCRYST MAKES NO OTHER REPRESENTATIONS OR
WARRANTIES IN RELATION TO THE BIOCRYST PATENTS, THE BIOCRYST KNOW-HOW, THE COMPOUND (INCLUDING
COMPOUND SUPPLIED HEREUNDER), THE BACKUP COMPOUNDS OR THE LICENSED PRODUCTS. SPECIFICALLY ROCHE
MAKES NO OTHER REPRESENTATIONS OR WARRANTIES IN RELATION TO THE ROCHE PATENTS, THE ROCHE KNOW-HOW,
THE COMPOUND OR THE BACKUP COMPOUNDS OR THE LICENSED PRODUCTS. BIOCRYST SHALL HAVE NO LIABILITY
WHATSOEVER ARISING OUT OF OR RELATING TO COMPOUND SUPPLIED TO ROCHE HEREUNDER.

ARTICLE 14 CONDITIONS TO CLOSING

14.1 Conditions Subsequent.

     (a) The effectiveness of this Agreement and the transactions contemplated hereunder shall be
subject to and contingent upon the satisfaction under the following condition subsequent to the
execution of this Agreement. The condition subsequent shall be the earlier to occur of (i)
approval of the transaction by the Federal Trade Commission or any other applicable governmental
authority, or (ii) expiration or termination of all applicable waiting periods, and requests for
information (and any extensions thereof) under the HSR Act or other applicable Law. Subject to the
terms and conditions of this Agreement, each Party shall use all reasonable efforts to take, or
cause to be taken, all reasonable actions and to do, or cause to be done, all things necessary and
appropriate to satisfy the condition subsequent and to consummate the transactions contemplated by
this Agreement. Each Party shall cooperate with the other Party in the preparation, execution and
filing of all documents that are required or permitted to be filed on or before the Closing Date
for the purpose of consummating this transaction, including, filings pursuant to the HSR Act or
other governmental filing. Each Party shall bear its own costs (including counsel or other expert
fees) with respect to preparing, executing and filing such documents; provided that Roche shall be
obligated to pay all filing fees under the HSR Act.

     (b) Either Party may terminate this Agreement in its entirety, upon ten (10) days prior
written notice to the other Party if the condition subsequent under Section 14.1(a) has not been
fulfilled within six (6) months after the Signing Date, in which case, upon termination, there
shall be no liabilities for obligations on the part of either Party except if there has been a
breach of this Section 14.1.

ARTICLE 15 DISPUTE RESOLUTIONS AND GOVERNING LAW

15.1 Disputes. Unless otherwise set forth in this Agreement, in the event of a dispute arising
under or relating to this Agreement between the Parties and/or their Affiliates, such dispute
shall be referred to

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the respective executive officers of the Parties designated below, or their successors, for good
faith negotiations attempting to resolve the dispute. The designated executive officers are as
follows:

	 	 	 	 	 
	 

	 	For Roche:
	 	CEO of the Pharma Division
	 

	 	For BioCryst:
	 	Chairman and CEO

If the positions of the designated executive officers listed above are vacant or no longer exist,
then the person having the most nearly equivalent position (or such individual’s designee) shall be
deemed to be the designated executive officer of the relevant Party.

15.2 Arbitration. Following the Parties’ attempt to resolve a given dispute pursuant to the above
Section 15.1, either Party as its exclusive recourse subject to Sections 15.2(c) and 15.3(c) may
have the given dispute settled by binding Arbitration in the manner described below:

     (a) Arbitration Request. If a Party intends to begin arbitration to resolve a dispute arising
under this Agreement, such Party shall provide written notice (the “Arbitration Request”) to the
other Party of such intention and the issues to be resolved. From the date of the Arbitration
Request and until such time as any matter has been finally settled, the running of the time periods
as to which Party must cure a breach of this Agreement shall be suspended as to the subject matter
of the dispute.

     (b) Additional Issues. Within *** (***) business days after the receipt of the Arbitration
Request, the other Party may, by written notice, add additional issues to be resolved.

     (c) No Arbitration of Intellectual Property Issues. Notwithstanding anything to the contrary
in this Agreement, unless otherwise agreed by the Parties, disputes relating to intellectual
property shall not be subject to arbitration, and shall be submitted to a court of competent
jurisdiction.

15.3 Arbitration Procedure. The Arbitration (including with respect to discovery) shall be
conducted pursuant to the rules of the American Arbitration Association. If Roche is the Party
initiating Arbitration, the Arbitration shall be held in Birmingham, Alabama. If BioCryst is the
Party initiating Arbitration, the Arbitration shall be held in Newark, New Jersey. The Arbitration
shall be conducted in English by three arbitrators. Each Party shall select one arbitrator within
*** (***) days of the Arbitration Request. Should a Party not select an independent arbitrator
within *** (***) days of the Arbitration Request, the American Arbitration Association shall select
an arbitrator on behalf of the Party. The two (2) arbitrators selected by the Parties shall select
a third, neutral, arbitrator within *** (***) days after the Arbitration Request. Should the
arbitrators not select a third, neutral, arbitrator within such time period, the American
Arbitration Association shall select an arbitrator on their behalf. The third neutral arbitrator
shall not be associated with either Party.

     (a) The arbitrators may award any remedy allowed by Law, excluding punitive damages and
attorneys’ fees. Promptly after rendering a decision, the arbitrators shall issue to both parties
a written opinion of the findings of fact and conclusions of Law. The decision of the arbitrators
shall be binding upon the parties without the right of appeal, and judgment upon the decision
rendered by the arbitrator may be confirmed and enforced in any court of competent jurisdiction.

     (b) The parties shall share equally the reasonable documented cost of such Arbitration
procedure. Each Party shall bear its own cost in participating in such proceeding.

     (c) Nothing herein limits in any way either Party’s right to seek injunctive relief.

15.4 Governing Law. This Agreement is made in accordance with and shall be governed and construed
under the Laws of Delaware, without regard to its choice of law principles.

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ARTICLE 16 PUBLICITY

16.1 Initial Press Release. The Parties will issue the initial press release(s) attached hereto as
Exhibit 16.1 on the Effective Date.

16.2 Subsequent External Communications. Each Party shall only issue external media and investor
communications, including press releases related to the activities contemplated by this Agreement
that have either (i) been approved by the other Party or (ii) are required to be issued by such
Party as a matter of Law as determined by such Party’s legal counsel. In all circumstances, the
Party issuing the external media or investor communication shall provide the other Party with a
copy of the press release or external communication at least *** prior to its intended publication
or communication for the other Party’s review. During such period, the other Party shall (i)
approve the draft press release or communication and permit the party issuing the press release to
issue the press release, (ii) contact the Party issuing the press release or communication to
discuss modification to the draft press release or communication, or (iii) contact the Party
issuing the press release or communication and disapprove the press release or communication. If
the other Party asks for modification, then the Party issuing the press release or communication
shall either make such modification or work with the other Party to arrive at a press release or
communication that the other Party approves.

16.3 Disclosures Required by Law. Nothing in this Agreement shall impair either Party’s compliance
with any requirements of: (i) governmental agencies to the extent required or desirable to secure
government approval for the development, manufacture or sale of Licensed Product in the Territory
(ii) the Securities and Exchange Commission or the national securities exchange or other stock
market on which such Party’s securities are traded, (iii) or any other applicable Law. In
connection with any filing by either Party of a copy of this Agreement with the Securities and
Exchange Commission (or the national securities exchange or other stock market on which such
Party’s securities are traded), the filing Party shall endeavor to obtain confidential treatment of
economic and trade secret information. Reasonably in advance of any filing under this Section
(whether or not this Agreement is included in the filing), the filing Party shall provide to the
other Party a copy of the proposed filing and the Parties shall work cooperatively in good faith,
taking into consideration the other Party’s suggestions, regarding the information for which the
filing Party will seek to obtain confidential treatment. However, in the event of any
disagreements that cannot be amicably resolved, the Party which is making the filing shall,
together with input from their own legal counsel, have the ultimate authority to make the filing in
the fashion in which it feels the filing must be made.

16.4 Publications. During the Term of this Agreement, the following restrictions shall apply with
respect to disclosure by any Party of Confidential Information relating to the Product in any
publication or presentation:

     (a) Both Parties acknowledge that it is their policy for the studies and results thereof to be
registered and published in accordance with their internal guidelines. Roche, in accordance with
its internal policies and procedures, shall have the right to publish all studies, clinical trials
and results thereof on the clinical trial registries which are maintained by or on behalf of Roche.
BioCryst shall not publish any studies, clinical trials or results thereof on its clinical trial
registry, provided however, that Roche’s clinical trial registry can be accessed via a link from
BioCryst’s clinical trial registry.

     (b) A Party (“Publishing Party”) shall provide the other Party with a copy of any proposed
publication or presentation at least *** (***) days (or at least *** days in the case of oral
presentations) prior to submission for publication so as to provide such other party with an
opportunity to recommend any changes it reasonably believes are necessary to continue to maintain
the Confidential Information disclosed by the other party to the Publishing party in accordance
with the requirements of this Agreement. The incorporation of such recommended changes shall not be
unreasonably refused; and If such other party notifies (“Notice”) the Publishing Party in writing,
within *** (***) days after receipt of the copy of the proposed publication or presentation (or at
least *** (***) days in the case of oral presentations), that such publication or presentation in
its reasonable judgment (i) contains an invention, solely or jointly conceived and/or reduced to
practice by the other party, for which the other party

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reasonably desires to obtain patent protection or (ii) contains any Confidential Information
disclosed by the other party to the Publishing Party, the Publishing Party shall prevent such
publication or delay such publication for a mutually agreeable period of time. In the case of
inventions, a delay shall be for a period reasonably sufficient to permit the timely preparation
and filing of a patent application(s) on such invention, and in no event less than *** (***) days
from the date of the Notice.

16.5 Use of Name. Neither Party shall use the other Party’s or its Affiliates name or trademarks
for publicity or advertising purposes, except with the prior written consent of the other Party.
Subject to Section 16.3, Roche shall not use any of BioCryst’s licensors’ names or trademarks for
publicity or advertising purposes (or any other information relating to the Pre-Existing Third
Party License), except with the prior written consent of BioCryst.

ARTICLE 17 MISCELLANEOUS

17.1 Pre-Existing Third Party License. Roche acknowledges and agrees that the terms of this
Agreement are subject in all respects to the terms and conditions of the Pre-Existing Third Party
License, as amended, ***, which have been previously provided to Roche. Roche further agrees that
(i) the licensors under the Pre-Existing Third Party License retained certain rights as described
in Section 2.1(b) above, which are not granted to Roche hereunder; (ii) such licensors shall be
deemed to be third party beneficiaries of this Agreement; (iii) all Confidential Information
provided to BioCryst hereunder may be shared with such licensors under the terms and conditions of
***; and (iv) Roche shall fully cooperate with BioCryst to assist BioCryst in complying with its
obligations (including but not limited to recordkeeping and information sharing) under the
Pre-Existing Third Party License ***.

17.2 Extended Benefits. Roche may extend any benefit and assign any right under this Agreement to
its Affiliates and Roche guarantees the performance of all obligations imposed on such Affiliates
by such extension or assignment. Each of Roche Nutley and Roche Basel shall be jointly and
severally liable for the obligations of Roche hereunder.

17.3 Survival. Any provisions which by their nature are intended to survive termination of this
Agreement shall survive termination of this Agreement for any reason, including, without
limitation, Articles 1, 8, 10, 12 and 15 and Sections 7.3, 7.4, 7.5, 7.6, 7.8, 7.9, 11.4, 11.5,
17.3, 17.5, 17.10 and 17.12.

17.4 Agency. Neither Party is, nor will be deemed to be, an employee, agent or representative of
the other Party for any purpose. Each Party is an independent contractor, not an employee or
partner of the other Party. Neither Party shall have the authority to speak for, represent or
obligate the other Party in any way without prior written authority from the other Party.

17.5 Entire Agreement. This Agreement, including all Exhibits and Schedules, embodies the entire
understanding of the Parties with respect to the subject matter hereof and supersedes all previous
communications, representations or understandings, and agreements, whether oral or written, between
the Parties relating to the subject matter hereof.

17.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original and all of which, taken together, shall constitute one and the same
instrument. Original signatures hereto may be delivered by facsimile which shall be deemed
originals.

17.7 Amendment. No amendment or modification hereof shall be valid or binding upon the parties
unless made in writing and signed by both Parties.

17.8 Assignment. This Agreement shall not be assignable in part or in whole, by operation of Law
or otherwise, by any Party without the prior written consent of the other; provided, however, that
either Party, without notice and at any time for any reason, may assign this Agreement in whole or
in part to (i) any of its Affiliates who agree to be bound by the terms and conditions of this
Agreement or (ii) any successor of

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such Party by merger or sale of all or substantially all of its pharmaceutical business assets. In
the event of assignment to an Affiliate, the Party making the assignment will remain liable and
responsible for the performance and observance of all its duties and obligations hereunder.

17.9 Requirement to Divest. If Roche is required by a relevant Regulatory Authority in a Major
Market Country to divest rights to a Licensed Product with respect to which Roche has not commenced
the Start of Phase III trial prior to the order to divest, then Roche shall use its commercially
reasonable efforts to obtain authority to fulfill such requirements by returning rights to BioCryst
in and to such Licensed Product in accordance with the procedures specified in Section 11.4(b). If
Roche is required by a relevant Regulatory Authority in a Major Market Country to divest rights to
a Licensed Product with respect to which Roche has commenced the Start of Phase III trial prior to
the order to divest, then Roche shall afford BioCryst a reasonable opportunity to acquire such
rights on terms no less advantageous than those granted to other potential acquirers of such
rights, including in bidding or other acquisition processes.

17.10 Notices. Any notice or other communication to be given under this Agreement, unless
otherwise specified, shall be in writing and shall be deemed to have been provided when delivered
to the addressee at the address listed below (i) on the date of delivery if delivered in person or
(ii) one (1) day after mailing to the other Party by express mail or overnight delivery service,
which obtains a signed receipt, or (iii) three (3) days after mailing by registered or certified
mail, postage paid:

     In the case of BioCryst:

BioCryst Pharmaceuticals, Inc.

2190 Parkway Lake Drive

Birmingham, Alabama 35244

Attention: Chairman and CEO

Telephone: 205-444-4600

Fax: 205-444-4640

     With a copy to:

Proskauer Rose LLP

1585 Broadway

New York, New York 10036

Attention: Daryn Grossman, Esq.

Telephone: (212) 969-3000

Fax: (212) 969-2900

     In the case of Roche:

Hoffmann-La Roche Inc.

340 Kingsland Street

Nutley, New Jersey 07110

Attention: Corporate Secretary

     With a copy to:

F.Hoffmann-La Roche Ltd.

Grenzacherstrasse 124

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CH-4002 Basel, Switzerland

Attention: Law Department

Either Party may change its address for communications by a notice in writing to the other Party in
accordance with this Section.

17.11 Force Majeure. Any prevention, delay or interruption of performance (collectively “Delay”)
by any Party under this Agreement shall not be considered a breach of this Agreement if and to the
extent caused by occurrences beyond the reasonable control of the Party affected by the force
majeure, including but not limited to acts of God, embargoes, governmental restrictions, strikes or
other concerted acts of workers, fire, flood, earthquake, explosion, riots, wars, terrorism, civil
disorder, rebellion or sabotage. The affected Party shall immediately notify the other Party upon
the commencement and end of the Delay and any time for performance hereunder shall be extended by
the actual time of Delay. If the Delay resulting from the force majeure exceeds six (6) months, the
other Party, upon written notice to the affected Party, may elect to (i) treat such Delay as a
material breach, or (ii) extend the term of this Agreement for an amount of time equal to the
Delay.

17.12 Affiliates. Roche shall cause its Affiliates to comply with Roche’s obligations hereunder.

17.13 Bankruptcy. All licenses (and to the extent applicable rights) granted under or pursuant to
this Agreement by BioCryst to Roche are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of Title 11, US Code (the “Bankruptcy Code”) licenses of rights to “intellectual
property” as defined under Section 101(60) of the Bankruptcy Code. Unless Roche elects to
terminate this Agreement, the Parties agree that Roche, as a licensee or sublicensee of such rights
under this Agreement, shall retain and may fully exercise all of its rights and elections under the
Bankruptcy Code, subject to the continued performance of its obligations under this Agreement.

17.14 Severability. If any term or condition of this Agreement is held by a court of competent
jurisdiction to be unenforceable for any reason, it shall, if possible, be interpreted to achieve
the intent of the Parties to this Agreement rather than voided. If not capable of such
interpretation, the Parties shall in good faith seek to agree on an alternative provision
reflecting the intent of the Parties which is enforceable. In any event, all other terms,
conditions and provision of this Agreement shall be deemed valid and enforceable to the full
extent.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	BIOCRYST PHARMACEUTICALS, INC.	 	HOFFMANN-LA ROCHE INC.  
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Charles E. Bugg
	 	By:
	 	/s/ Frederick C. Kentz III	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Charles E. Bugg
	 	 	 	Name: Frederick C. Kentz III	 	 	 	 
	 

	 	Title: Chairman and CEO
	 	 	 	Title: Vice President	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	F. HOFFMANN-LA ROCHE LTD
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Peter Hug	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Dr. Peter Hug	 	 	 	 
	 

	 	 	 	 	 	Title: Executive Vice President

Pharma Partnering	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Melanie Frey Wick	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Dr. Melanie Frey Wick	 	 	 	 
	 

	 	 	 	 	 	Title: Authorized Signatory	 	 	 	 

36

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