Document:

sypris8k4408ex101.htm

     

     

    Exhibit 10.1

    STANDARD
TERMS OF EXECUTIVE AWARDS GRANTED UNDER

    THE
2008 STOCK OPTION EXCHANGE PROGRAM

    OF
THE 2004 SYPRIS EQUITY PLAN

    

    1. Purpose of
the Program.  The Company’s
2008 Stock Option Exchange Program (the “Program”) under the 2004 Sypris Equity
Plan (“Plan”) shall be effective for all Awards to executive officers and
directors incorporating these Terms.  The purpose of the Program is to
advance the Company’s growth and prosperity by providing meaningful long-term
financial incentives to its executives and certain other key employees, and to
further the Company’s philosophy of equity ownership and
incentives.

     

    2. Eligible
Grant. “Eligible Grant” means any previous grant of stock options
under any of the Company’s stock option or equity plans, if: a) 100% of the
stock options awarded in such grant were fully vested on March 31, 2008, and b)
the exercise price of such options is above $4.31 per share.

     

    3. Eligible
Options.  “Eligible
Options” means all stock options awarded in any Eligible
Grant.

     

    4. New
Shares.   Each
“New Share” is one fully vested Share of the Common Stock.

     

    5. New
Options. Each “New Option” is
the right to purchase one Option Share at the Option Price, from the Grant
Date until its Expiration Date or forfeiture (subject to adjustments per the
Plan).  Options must be exercised with 48 hours advance written notice,
unless waived by the Company.

     

    
      	
              5.1.  

            	
              Option
      Price.  “Option Price” means $4.31 per Share (the last
      closing price per Option Share prior to the opening of business on March
      31, 2008 (“the Grant Date”)).  The Option Price is payable to
      the Company in cash or any other method of payment authorized by the
      Committee in its discretion, which may include Stock (valued as the
      closing price per Share on the exercise date) or vested options (valued as
      the closing price per Share on the exercise date, less the Option Price),
      in each case in accordance with applicable Rules.  Similarly,
      the Participant must arrange for tax withholding in accordance with
      applicable Rules, to the satisfaction of the
  Committee.

            

    

     

    
      	
              5.2.  

            	
              Option
      Shares.  Initially, each “Option Share” is one Share of
      the Common Stock (subject to adjustments per the Plan).  Option
      Shares may be certificated upon request, with any legends required by
      applicable Rules.

            

    

     

    
      	
              5.3.  

            	
              Option
      Vesting.  All New Options are 100% vested on the Grant
      Date.

            

    

     

    
      	
              5.4.  

            	
              Expiration
      Date.  Each New Option's "Expiration Date" will be March
      30, 2012.

            

    

     

    6. Award of
Exchange
Rights.  With respect to each Eligible Grant, in exchange for
all Eligible Options in such grant, the Company hereby awards (“Awards”) to the
Participant named on Exhibit A, either:

     

     

    
      	
              6.1.  

            	
              New
      Options:  the number of New Options specified on Exhibit
      A in connection with any Eligible Grant, for which the Participant has
      elected Exchange #2 – “New Options”, on the last duly executed form of
      Exhibit A received by the Company on or before May 1, 2008 at 5:00 p.m.
      EST; or

            

    

     

     

    
      	
              6.2.  

            	
              New
      Shares:  the number of New Shares specified on Exhibit A
      in connection with any Eligible Grant, for which the Participant has
      elected Exchange #3 – “New Stock”, on the last duly executed form of
      Exhibit A received by the Company on or before May 1, 2008 at 5:00 p.m.
      EST.

            

    

     

     

    
      	
              6.3.  

            	
              No
      Change.  In the alternative, the Participant shall retain
      all Eligible Options specified on Exhibit A in connection with all such
      Eligible Grants if Participant has validly withdrawn from the Program, or
      all those Eligible Options included in any Eligible Grants for which the
      Participant has elected Exchange #1 – “No Change”, on the last duly
      executed form of Exhibit A received by the Company on or before May 1,
      2008 at 5:00 p.m. EST which has not been
  withdrawn.

            

    

     

    7. Retirement,
Death or
Disability.  In
the event of any retirement after age 65 or qualification to receive long-term
disability benefits under the Company’s then current policies, such retirement
or disability period shall be treated as a period of employment for purposes of
any exercise rights. In the event of death, the Participant’s
representative or estate shall have one (1) year in which to exercise any New
Options prior to their Expiration Date.

     

    8. Leaves of
Absence.  The Committee may
in its discretion treat all or any portion of any period during which a
Participant is on military or other approved leave of absence as a period of
employment for purposes of the accrual of rights hereunder.

     

    9. Other
Terminations.  If employment is
terminated other than for retirement, death or disability, the Participant will
have up to thirty (30) days in which to exercise any New Options prior to
their Expiration Date.

     

    10. Administration.  The Committee
shall have complete authority to administer or interpret the Program or any
Award, to prescribe, amend and rescind rules and regulations relating thereto,
and to make all other determinations necessary or advisable for the
administration of the Program or any Award Agreements (including to establish or
amend any rules regarding the Program that are necessary or advisable to comply
with, or qualify under, any applicable law, listing requirement, regulation or
policy of any entity, agency, organization, governmental entity, or the Company,
in the Committee’s sole discretion (“Rule”)).  In addition, with
respect to any future grants or the unvested portion of any Awards, the
Committee may amend or terminate these Terms or any Awards, in its sole
discretion without the consent of any employee or beneficiary, subject to
applicable Rules, at any time and from time-to-time.  With respect to
any amendment, action or approval hereunder, the Committee may require the
approval of any other persons or entities, pursuant to applicable
Rules.  The decisions of the Committee in interpreting and applying
the Program will be final.

     

    11. Miscellaneous.  Unless otherwise
specified, all capitalized terms herein shall have the meanings assigned to them
in the Plan or in this Award Agreement.

     

    
      	
              11.1.  

            	
              No Other
      Rights.  The Awards include no other rights beyond those
      expressly provided in the Plan, the Program or this Award Agreement.
      Awards are non-assignable and non-transferable except by will or the laws
      of descent and distribution, unless otherwise approved by the
      Committee.

            

    

     

    
      	
              11.2.  

            	
              Taxes.  The
      Participant must pay in cash, surrender Shares or Options of
      then-equivalent value, or otherwise arrange (to the Committee’s
      satisfaction) for all tax withholding
  obligations.

            

    

     

    
      	
              11.3.  

            	
              Delegation.  The
      Committee may delegate any portion of their responsibilities and powers to
      one or more persons selected by them, subject to applicable Rules and
      revocation at any time.

            

    

     

    

    

    

    SYPRIS SOLUTIONS, INC.

    

    

    

    By:/s/ Jeffrey T.
Gill                                                           

    Jeffrey T. Gill

    President
& Chief Executive Officer

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

       

      
        
           

           

          
            
              Note: The past performance of the Company's stock is no guarantee of its
likely future performance.  Please read the "Offer to Exchange" carefully
before making your election.  This offer expires May 1, 2008.

               

               

              
              

               

              
                	Exhibit A- Election
      Form	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Alternative Stock
      Price Scenarios	 
	 	 	 	 	 	 	 	 	SYPR's closing stock
      price on 3-28-08:	 	 	 	 	 	$	4.31	 	 	$	4.31	 	 	 	 	 	$	4.31	 	 	$	4.31	 	 	 	 	 	$	4.31	 	 	$	4.31	 
	Participant
      Summary	 	 	 	 	If SYPR's stock
      price is:	 	 	$	7.00	 	 	$	7.00	 	 	$	7.00	 	 	$	12.00	 	 	$	12.00	 	 	$	12.00	 	 	$	18.00	 	 	$	18.00	 	 	$	18.00	 
	 	 	 	 	 	 	 	 	
                        After tax (assumed
      tax rate of 40%):

                      	 	 	 	60	%	 	 	60	%	 	 	60	%	 	 	60	%	 	 	60	%	 	 	60	%	 	 	60	%	 	 	60	%	 	 	60	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	2	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	*	 	
                         

                         Grant 

                      	
                         

                        Expiration

                      	 	
                        
                        

                        Shares

                      	 	 	
                        Grant

                        Price

                      	 	 	
                        
                        

                        Granted

                      	 	 	
                        (Vested)

                        No Change

                      	 	 	
                        New

                        Options

                      	 	 	
                        New

                        Stock

                      	 	 	
                        1 -
      No

                        Change

                      	 	 	
                        2 -
      New

                        Options

                      	 	 	
                        3-New

                        Stock

                      	 	 	
                        1 -
      No

                        Change

                      	 	 	
                        2 -
      New

                        Options

                      	 	 	
                        3-New

                        Stock

                      	 	 	
                        1 -
      No

                        Change

                      	 	 	
                        2 -
      New

                        Options

                      	 	 	
                        3-New

                         Stock

                      	 
	Example	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 2/25/03	 2/24/11	 	 	2,400	 	 	$	8.25	 	 	 	2,400	 	 	 	1,920	 	 	 	-	 	 	 	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	5,400	 	 	$	-	 	 	$	-	 	 	$	14,040	 	 	$	-	 	 	$	-	 
	 	 	 	 2/25/03	 2/24/11	 	 	10,000	 	 	$	8.25	 	 	 	10,000	 	 	 	8,000	 	 	 	-	 	 	 	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	22,500	 	 	$	-	 	 	$	-	 	 	$	58,500	 	 	$	-	 	 	$	-	 
	 	 	 	 2/26/03	 2/25/11	 	 	39,000	 	 	$	8.27	 	 	 	39,000	 	 	 	31,200	 	 	 	-	 	 	 	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	87,282	 	 	$	-	 	 	$	-	 	 	$	227,682	 	 	$	-	 	 	$	-	 
	 	 	 	 3/2/06	 3/1/12	 	 	12,500	 	 	$	10.36	 	 	 	12,500	 	 	 	         
      -	 	 	 	-	 	 	 	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	12,300	 	 	$	-	 	 	$	-	 	 	$	57,300	 	 	$	-	 	 	$	-	 
	 	 	 	 	Not
    eligible:	 	 	 	63,900	 	 	 	41,120	 	 	 	 	 	 	 	 	 	 	$	-	 	 	 	 	 	 	 	 	 	 	$	127,482	 	 	 	 	 	 	 	 	 	 	$	357,522	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 2/27/01	 2/26/09	 	 	25,000	 	 	$	6.25	 	 	 	25,000	 	 	 	25,000	 	 	 	4,994	 	 	 	1,415	 	 	$	11,250	 	 	$	8,060	 	 	$	7,466	 	 	$	86,250	 	 	$	23,042	 	 	$	14,541	 	 	$	176,250	 	 	$	41,021	 	 	$	23,031	 
	 	 	 	 5/11/07	 5/14/11	 	 	27,055	 	 	$	7.90	 	 	 	27,055	 	 	 	27,055	 	 	 	12,220	 	 	 	3,463	 	 	$	         -	 	 	$	19,723	 	 	$	18,271	 	 	$	66,555	 	 	$	56,383	 	 	$	35,586	 	 	$	163,953	 	 	$	100,375	 	 	$	56,364	 
	 	 	 	 	
                        Eligible:

                      	 	 	 	52,055	 	 	 	52,055	 	 	 	17,214	 	 	 	4,878	 	 	 	11,250	 	 	 	27,783	 	 	 	25,736	 	 	 	152,805	 	 	 	79,425	 	 	 	50,126	 	 	 	340,203	 	 	 	141,396	 	 	 	79,394	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

              

               

               

               

               

              *-In each unshaded box please indicate your election of: (1) no change, (2)
new options, or (3) new stock.

               

               

              Participant
Signature:_____________________________EX-4.1

 

Exhibit 4.1

 

PHH CORPORATION

as Issuer

AND

THE BANK OF NEW YORK

as Trustee

 

Indenture

Dated as of April 2, 2008

 

4.00% Convertible Senior Notes due 2012

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 1
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	2	 
	Section 1.02.

	 	Compliance Certificates and Opinions
	 	 	22	 
	Section 1.03.

	 	Form of Documents Delivered to Trustee
	 	 	23	 
	Section 1.04.

	 	Acts of Holders; Record Dates
	 	 	24	 
	Section 1.05.

	 	Notices, Etc., to Trustee and Company
	 	 	26	 
	Section 1.06.

	 	Notice to Holders; Waiver
	 	 	26	 
	Section 1.07.

	 	Effect of Headings and Table of Contents
	 	 	27	 
	Section 1.08.

	 	Severability Clause
	 	 	27	 
	Section 1.09.

	 	Benefits of Indenture
	 	 	28	 
	Section 1.10.

	 	Governing Law
	 	 	28	 
	Section 1.11.

	 	No Recourse Against Others
	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE 2

	The Securities

	 
	 	 	 	 	 	 
	Section 2.01.

	 	Designation, Amount and Issuance of Securities
	 	 	28	 
	Section 2.02.

	 	Form of the Securities
	 	 	29	 
	Section 2.03.

	 	Date and Denomination of Securities; Payment at Maturity;
Payment of Interest
	 	 	31	 
	Section 2.04.

	 	Execution and Authentication
	 	 	32	 
	Section 2.05.

	 	Security Registrar, Paying Agent and Conversion Agent
	 	 	33	 
	Section 2.06.

	 	Paying Agent To Hold Money in Trust
	 	 	35	 
	Section 2.07.

	 	Securityholder Lists
	 	 	35	 
	Section 2.08.

	 	Exchange and Registration of Transfer of Securities
	 	 	36	 
	Section 2.09.

	 	Global Securities
	 	 	37	 
	Section 2.10.

	 	Transfer Restrictions
	 	 	40	 
	Section 2.11.

	 	Responsibilities and Obligations of the Trustee
	 	 	43	 
	Section 2.12.

	 	Replacement Securities
	 	 	44	 
	Section 2.13.

	 	Outstanding Securities
	 	 	45	 
	Section 2.14.

	 	Temporary Securities
	 	 	46	 
	Section 2.15.

	 	Cancellation
	 	 	47	 
	Section 2.16.

	 	CUSIP and ISIN Numbers
	 	 	47	 
	Section 2.17.

	 	Additional Securities
	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE 3

	Particular Covenants of the Company

	 
	 	 	 	 	 	 
	Section 3.01.

	 	Payment of Principal and Interest
	 	 	48	 
	Section 3.02.

	 	Maintenance of Office or Agency
	 	 	49	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 3.03.

	 	Provisions as to Paying Agent
	 	 	50	 
	Section 3.04.

	 	Rule 144A Information Requirement
	 	 	52	 
	Section 3.05.

	 	Resale of Certain Securities
	 	 	53	 
	Section 3.06.

	 	[RESERVED]
	 	 	53	 
	Section 3.07.

	 	Book-Entry System
	 	 	53	 
	Section 3.08.

	 	Compliance Certificate
	 	 	53	 
	Section 3.09.

	 	Payment of Default Additional Interest
	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE 4

	Repurchase of Notes

	 
	 	 	 	 	 	 
	Section 4.01.

	 	Right To Require Repurchase Upon a Fundamental Change
	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE 5

	Conversion

	 
	 	 	 	 	 	 
	Section 5.01.

	 	Conversion Privilege and Conversion Rate
	 	 	63	 
	Section 5.02.

	 	Conversion Rate Adjustment Upon Certain Make-whole
Fundamental Changes
	 	 	69	 
	Section 5.03.

	 	Exercise of Conversion Privilege
	 	 	71	 
	Section 5.04.

	 	Settlement of Conversion Obligation
	 	 	74	 
	Section 5.05.

	 	Fractions of Shares
	 	 	79	 
	Section 5.06.

	 	Adjustment of Conversion Rate
	 	 	79	 
	Section 5.07.

	 	Notice of Adjustments of Conversion Rate
	 	 	97	 
	Section 5.08.

	 	Company To Reserve Common Stock
	 	 	98	 
	Section 5.09.

	 	Taxes on Conversions
	 	 	98	 
	Section 5.10.

	 	Certain Covenants
	 	 	99	 
	Section 5.11.

	 	Cancellation of Converted Notes
	 	 	99	 
	Section 5.12.

	 	Provision in Case of Effect of Reclassification,
Consolidation, Merger or Sale
	 	 	99	 
	Section 5.13.

	 	Responsibility of Trustee for Conversion Provisions
	 	 	102	 
	Section 5.14.

	 	Notice to Holders Prior to Certain Actions
	 	 	103	 
	Section 5.15.

	 	Stockholder Rights Plan
	 	 	105	 
	Section 5.16.

	 	Company Determination Final
	 	 	105	 
	Section 5.17.

	 	Exchange in Lieu of Conversion
	 	 	106	 
	 
	 	 	 	 	 	 
	ARTICLE 6

	Events of Default; Remedies

	 
	 	 	 	 	 	 
	Section 6.01.

	 	Events of Default
	 	 	108	 
	Section 6.02.

	 	Acceleration of Maturity; Rescission and Annulment
	 	 	111	 
	Section 6.03.

	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	113	 
	Section 6.04.

	 	Trustee May File Proofs of Claim
	 	 	114	 
	Section 6.05.

	 	Application of Money Collected
	 	 	115	 
	Section 6.06.

	 	Limitation on Suits
	 	 	116	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 6.07.

	 	Unconditional Right of Holders To Receive Payment
	 	 	117	 
	Section 6.08.

	 	Restoration of Rights and Remedies
	 	 	118	 
	Section 6.09.

	 	Rights and Remedies Cumulative
	 	 	118	 
	Section 6.10.

	 	Delay or Omission Not Waiver
	 	 	118	 
	Section 6.11.

	 	Control by Holders
	 	 	119	 
	Section 6.12.

	 	Waiver of Past Defaults
	 	 	119	 
	Section 6.13.

	 	Undertaking for Costs
	 	 	120	 
	Section 6.14.

	 	Waiver of Stay or Extension Laws
	 	 	120	 
	Section 6.15.

	 	Violations of Certain Covenants
	 	 	121	 
	Section 6.16.

	 	Notice of Default
	 	 	121	 
	 
	 	 	 	 	 	 
	ARTICLE 7

	Consolidation, Merger, Conveyance, Transfer or Lease

	 
	 	 	 	 	 	 
	Section 7.01.

	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	121	 
	 
	 	 	 	 	 	 
	ARTICLE 8

	The Trustee

	 
	 	 	 	 	 	 
	Section 8.01.

	 	Duties and Responsibilities of Trustee
	 	 	125	 
	Section 8.02.

	 	Notice of Defaults
	 	 	128	 
	Section 8.03.

	 	Reliance on Documents, Opinions, Etc
	 	 	128	 
	Section 8.04.

	 	No Responsibility for Recitals, Etc
	 	 	131	 
	Section 8.05.

	 	Trustee, Paying Agents, Conversion Agents or Security Registrar
May Own Securities
	 	 	131	 
	Section 8.06.

	 	Monies To Be Held in Trust
	 	 	131	 
	Section 8.07.

	 	Compensation and Expenses of Trustee
	 	 	132	 
	Section 8.08.

	 	Officers’ Certificate as Evidence
	 	 	133	 
	Section 8.09.

	 	Conflicting Interests of Trustee
	 	 	133	 
	Section 8.10.

	 	Eligibility of Trustee
	 	 	134	 
	Section 8.11.

	 	Resignation or Removal of Trustee
	 	 	134	 
	Section 8.12.

	 	Acceptance by Successor Trustee
	 	 	137	 
	Section 8.13.

	 	Succession by Merger, Etc
	 	 	138	 
	Section 8.14.

	 	Preferential Collection of Claims
	 	 	139	 
	Section 8.15.

	 	Trustee’s Application for Instructions from the Company
	 	 	139	 
	 
	 	 	 	 	 	 
	ARTICLE 9

	Holders’ Lists and Reports by Trustee

	 
	 	 	 	 	 	 
	Section 9.01.

	 	Company To Furnish Trustee Names and Addresses of Holders
	 	 	140	 
	Section 9.02.

	 	Preservation of Information; Communications to Holders
	 	 	141	 
	Section 9.03.

	 	Reports by Trustee.
	 	 	141	 
	Section 9.04.

	 	Reports by Company.
	 	 	142	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 10

	Satisfaction and Discharge

	 
	 	 	 	 	 	 
	Section 10.01.

	 	Discharge of Indenture
	 	 	143	 
	Section 10.02.

	 	Deposited Monies To Be Held in Trust by Trustee
	 	 	144	 
	Section 10.03.

	 	Paying Agent To Repay Monies Held
	 	 	145	 
	Section 10.04.

	 	Return of Unclaimed Monies
	 	 	145	 
	Section 10.05.

	 	Reinstatement
	 	 	145	 
	 
	 	 	 	 	 	 
	ARTICLE 11

	Supplemental Indentures

	 
	 	 	 	 	 	 
	Section 11.01.

	 	Supplemental Indentures Without Consent of Holders
	 	 	146	 
	Section 11.02.

	 	Supplemental Indentures with Consent of Holders
	 	 	147	 
	Section 11.03.

	 	Execution of Supplemental Indentures
	 	 	149	 
	Section 11.04.

	 	Effect of Supplemental Indentures
	 	 	150	 
	Section 11.05.

	 	[RESERVED]
	 	 	150	 
	Section 11.06.

	 	Reference in Securities to Supplemental Indentures
	 	 	150	 
	Section 11.07.

	 	Notice to Holders of Supplemental Indentures
	 	 	150	 
	 
	 	 	 	 	 	 
	ARTICLE 12

	Miscellaneous

	 
	 	 	 	 	 	 
	Section 12.01.

	 	When Securities Are Disregarded
	 	 	151	 
	Section 12.02.

	 	Rules by Trustee, Paying Agent and Security Registrar
	 	 	151	 
	Section 12.03.

	 	Successors
	 	 	151	 
	Section 12.04.

	 	Multiple Originals
	 	 	152	 
	Section 12.05.

	 	Calculations
	 	 	152	 
	Section 12.06.

	 	Waiver of Jury Trial
	 	 	152	 
	Section 12.07.

	 	Force Majeure
	 	 	152	 
	 
	 	 	 	 	 	 
	Schedule A

	 	Make-Whole Table	 	 	 	 
	Exhibit A—

	 	Form of Security	 	 	 	 
	Exhibit B—

	 	Form of Restrictive Legend for Common Stock Issued Upon Conversion	 	 	 	 

iv

 

     INDENTURE, dated as of April 2, 2008, between PHH Corporation, a corporation duly organized
and existing under the laws of the State of Maryland, as Issuer (the “Company”), having its
principal office at 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054 and The Bank of New York, a
New York banking corporation, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the creation of an issue of 4.00% Convertible Senior
Notes due 2012 (each a “Security” or “Note” and collectively, the “Securities” or “Notes”) of the
tenor and amount hereinafter set forth, and to provide therefor the Company has duly authorized the
execution and delivery of this Indenture; and

     WHEREAS, all things necessary to make the Securities, when executed by the Company and
authenticated and delivered hereunder and duly issued by the Company, the valid and legally binding
obligations of the Company, and to make this Indenture a valid and legally binding agreement of the
Company, in accordance with the terms of the Securities and the Indenture, have been done;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH, for and in consideration of the premises and the
purchases of the Securities by the Holders thereof, it is mutually agreed, for the benefit of the
Company and the equal and proportionate benefit of all Holders of the Securities, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.01.Definitions.For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

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

     (ii) all other terms used herein that are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

     (iii) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP; and

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

     “Act,” when used with respect to any Holder, has the meaning specified in Section 1.04(a).

     “Additional Interest” means Default Additional Interest and any Extension Fee.

 

 

     “Additional Securities” has the meaning specified in Section 2.17.

     “Additional Shares” has the meaning specified in Section 5.02(a).

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

     “Agent Members” has the meaning specified in Section 2.09(f).

     “Bankruptcy Law” means Title 14 of the U.S. Code or any similar Federal or State law for
relief of debtors.

     “Bid Solicitation Agent” means initially the Company or any agent the Company may appoint in
the future, including the Trustee, to solicit a Trading Price for the Securities as may be required
pursuant to this Indenture.

     “Board of Directors” means, with respect to any Person, either the board of directors of such
Person or any duly authorized committee of that board.

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

     “Business Day” means any day, other than a Saturday or a Sunday, that is neither a legal
holiday in the City of New York nor a day on which banking institutions are authorized or required
by law, regulation or executive order to close in the City of New York.

     “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock and limited liability company interests and,
with respect to partnerships, partnership interests (whether general or limited) and any other
interest or participation that confers on a Person the right to receive a share of the profits and
losses of, or distributions of assets of, such partnership.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commission” means the United States Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act.

2

 

     “Common Stock” means the shares of common stock, par value $0.01 per share, of the Company as
they exist on the date of this Indenture or any other shares of Capital Stock of the Company into which the Common Stock shall be reclassified or changed,
subject to Section 5.12 hereof.

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

     “Continuing Directors” means (i) individuals who on the date of original issuance of the Notes
were members of the Board of Directors of the Company and (ii) any new directors whose election to
the Board of Directors of the Company or whose nomination for election by the Company’s
stockholders was approved by at least a majority of the Company’s directors then still in office
(or a duly constituted committee thereof), either who were directors on the date of original
issuance of the Notes or whose election or nomination for election was previously so approved.

     “Conversion Agent” has the meaning specified in Section 2.05.

     “Conversion Date” has the meaning specified in Section 5.03(a).

     “Conversion Notice” shall have the meaning specified in Section 5.03(a).

     “Conversion Price” means, in respect of each Security, as of any date $1,000 divided by the
Conversion Rate as of such date.

     “Conversion Rate” means, initially 48.7805 shares of Common Stock per $1,000 principal amount
of Securities, subject to adjustment as set forth herein.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date as of which this Indenture is dated, located at The Bank of New York, 101 Barclay Street,
Floor 8 West, New York, New York 10286, Attn: Corporate Trust Administration or such other address
as the Trustee may designate from time to time by notice to the Holders and the Company, or the
principal corporate trust office of any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Holders and the Company).

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

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

3

 

     “Daily Conversion Value” means, for each of the 60 consecutive VWAP Trading Days during the
Observation Period, one-sixtieth (1/60) of the product of (a) the applicable Conversion Rate on
such VWAP Trading Day and (b) the Daily VWAP of the Common Stock (or the Reference Property
pursuant to Section 5.12) on such VWAP Trading Day. Any such determination by the Company shall be conclusive absent
manifest error.

     “Daily Principal Return” has the meaning specified in Section 5.04(a).

     “Daily Settlement Amount” has the meaning specified in Section 5.04(a).

     “Daily Share Amount” has the meaning specified in Section 5.04(a).

     “Daily VWAP” means for each of the 60 consecutive VWAP Trading Days during the Observation
Period, the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP”
on Bloomberg page PHH. N<equity> AQR (or any equivalent successor page) in respect of the
period from the scheduled open of trading on the principal trading market for the Common Stock to
the scheduled close of trading on such market on such VWAP Trading Day, or if such volume-weighted
average price is unavailable, the market value of one share of Common Stock on such VWAP Trading
Day using a volume-weighted method as determined by a nationally recognized independent investment
banking firm retained by the Company for such purpose. Daily VWAP will be determined without
regard to after-hours trading or any other trading outside of the regular trading session trading
hours.

     “Default” means any event that is or with the passage of time or the giving of notice or both
would become an Event of Default.

     “Default Additional Interest” has the meaning specified in Section 3.09.

     “Depositary” means The Depository Trust Company until a successor Depositary shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall
mean such successor Depositary.

     “Effective Date” has the meaning specified in Section 5.02(b).

     “Event of Default” has the meaning specified in Section 6.01.

     “Ex-Date” shall mean, with respect to any dividend or distribution, the first date on which
the shares of the Common Stock trade on the principal exchange trading market on which such Common
Stock trades, regular way, without the right to receive such issuance or distribution.

     “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

4

 

     “Extension Fee” has the meaning specified in Section 6.02.

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

     (1) any Person acquires beneficial ownership, directly or indirectly, through a purchase,
merger or other acquisition transaction or series of transactions, of shares of the Company’s
Capital Stock entitling the Person to exercise 50% or more of the total voting power of all shares
of the Company’s Capital Stock entitled to vote generally in elections of directors, other than an
acquisition by the Company or any of the Company’s Subsidiaries provided that a Fundamental Change
shall not occur as a result of this clause (1) if, in such purchase, merger, acquisition or other
transaction, all or substantially all of the Common Stock is exchanged for or converted into cash,
securities or other property, in which case clause (2) below shall apply (in addition to, if
applicable, clauses (3), (4) or (5) below); or

     (2) the Company (i) merges or consolidates with or into any other Person, another Person
merges with or into the Company, or the Company conveys, sells, transfers or leases all or
substantially all of the Company’s assets to another Person (excluding a pledge of securities
issued by any of the Company’s Subsidiaries, but not excluding any transfer or other disposition
resulting from the foreclosure or other exercise of creditors’ remedies pursuant to such pledge) or
(ii) engages in any recapitalization, reclassification or other acquisition transaction or series
of transactions in which all or substantially all of the Common Stock is exchanged for or converted
into cash, securities or other property, in each case other than a merger or consolidation:

     (a) pursuant to which the holders of Common Stock immediately prior to the transaction have
the entitlement to exercise, directly or indirectly, 50% or more of the voting power of all shares
of Capital Stock entitled to vote generally in the election of directors of either (x) the
continuing or surviving corporation immediately after the transaction or (y) the corporation that
directly or indirectly owns 100% of the Capital Stock of such continuing or surviving corporation;
or

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

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

     (3) at any time the Company’s Continuing Directors do not constitute a majority of the Board
of Directors of the Company (or, if applicable, a successor Person to the Company); or

5

 

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

     (5) if shares of Common Stock, or shares of any other Capital Stock which constitute the
Reference Property as set forth in Section 5.12 hereof, are not listed for trading on any United
States national securities exchange.

     “Fundamental Change Expiration Time” has the meaning specified in Section 4.01(a).

     “Fundamental Change Repurchase Date” has the meaning specified in Section 4.01(a).

     “Fundamental Change Repurchase Notice” has the meaning specified in Section 4.01(a).

     “Fundamental Change Repurchase Price” has the meaning specified in Section 4.01(a).

     “Fundamental Change Repurchase Right Notice” has the meaning specified in Section 4.01(b).

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, in each case, as in effect in the United States from time to time.

     “Global Security” means a Security in global form registered in the Security Register in the
name of a Depositary or a nominee thereof.

     “Holder” or “Securityholder” means a Person in whose name a Security is registered in the
Security Register.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof.

     “Initial Purchasers” means, Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and
Wachovia Capital Markets, LLC.

     “interest” means, when used with reference to the Securities, any interest payable under the
terms of the Securities, including Additional Interest, if any.

     “Interest Payment Date” means each April 15 and October 15 of each year.

6

 

     “Issue Date” means the date the Securities are originally issued as set forth on the face of
the Security under this Indenture.

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

     “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change as described in clauses (1), (2) or (5) of the definition thereof (determined without
regard, in the case of clause (2) of such definition, to the proviso in subclause (a) of such
clause (2)).

     “Market Disruption Event” means the occurrence or existence on any Scheduled Trading Day for
the Common Stock of any suspension or limitation imposed on trading (by reason of movements in
price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any
options contracts or futures contracts relating to the Common Stock, and such suspension or
limitation occurs or exists at any time within the 30 minutes prior to the closing time of the
relevant exchange on such day.

     “Maturity,” when used with respect to any Security, means the date on which the principal or
Fundamental Change Repurchase Price of such Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity Date or Fundamental Change Repurchase Date, by declaration
of acceleration or otherwise.

     “Measurement Period” has the meaning specified in Section 5.01(a)(i).

     “Note” or “Notes” has the meaning specified in the first paragraph of the Recitals of the
Company.

7

 

     “Notice of Default” has the meaning specified in Section 6.01(e).

     “Observation Period” means:

     (i) with respect to any Conversion Date occurring on or after the 65th Scheduled Trading Day
prior to the Stated Maturity Date, the 60 consecutive VWAP Trading Day period beginning on and
including the 62nd Scheduled Trading Day prior to the Stated Maturity Date (whether or not the
Stated Maturity Date is a Scheduled Trading Day); and

     (ii) in all other instances, the 60 consecutive VWAP Trading Day period beginning on and
including the third VWAP Trading Day after the related Conversion Date in respect of such Notes.

     “Officers’ Certificate” means a certificate signed by the Chief Executive Officer, the
President or the Chief Financial Officer, and by the Treasurer or the Secretary, of the Company,
and delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant
to Section 3.08 shall be the principal executive, financial or accounting officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be external or in-house
counsel for the Company.

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

     (i) Securities theretofore cancelled by the Trustee or accepted by the Trustee for
cancellation;

     (ii) Securities, or portions thereof, for whose payment or purchase money in the
necessary amount has been theretofore deposited with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the Company (if
the Company shall act as its own Paying Agent) for the Holders of such Securities;
provided that if such Securities are to be purchased prior to the maturity thereof, notice
of such purchase shall have been given to the Holders as herein provided, or provision
satisfactory to a Responsible Officer of the Trustee shall have been made for giving such
notice;

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

     (iv) Securities converted pursuant to Article 5;

8

 

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, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to be so owned shall 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” means any Person (including the Company) authorized by the Company to pay the
principal amount of, interest on or Fundamental Change Repurchase Price of, any Securities on
behalf of the Company. The Trustee shall be the initial Paying Agent.

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

     “Physical Securities” means permanent certificated Securities in registered form issued in
denominations of $1,000 principal amount and multiples thereof.

     “protected purchaser” has the meaning specified in Section 2.12.

     “Publicly Traded Securities” has the meaning set forth in Section 5.02(a).

     “Purchase Agreement” means the Purchase Agreement, dated March 27, 2008, entered into by the
Company and the Initial Purchasers in connection with the sale of the Securities.

     “record date” has the meaning specified in Section 5.06(e).

     “Record Date” means, with respect to the payment of interest the April 1 (whether or not a
Business Day) immediately preceding an Interest Payment Date on April 15 and October 1 (whether or
not a Business Day) immediately preceding an Interest Payment Date on October 15.

     “Reference Property” has the meaning specified in Section 5.12(b).

     “Responsible Officer” means any officer of the Trustee within the corporate trust department
of the Trustee including any vice president, assistant vice president, assistant secretary,
assistant treasurer, trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at

9

 

the time shall be such officers,
respectively, with direct responsibility for the administration of this Indenture and also, with
respect to a particular matter, any other officer of the Trustee to whom such matter is referred
because of such officer’s knowledge and familiarity with the particular subject.

     “Restricted Security” or “Restricted Securities” has the meaning specified in Section 2.10.

     “Restricted Security Legend” has the meaning specified in Section 2.10.

     “Rule 144” means Rule 144 under the Securities Act (including any successor rule thereto), as
the same may be amended from time to time.

     “Rule 144A” means Rule 144A under the Securities Act (including any successor rule thereto),
as the same may be amended from time to time.

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

     “Securities Act” means the U.S. Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder.

     “Securitization Indebtedness” means any indebtedness of any of the Company’s structured
bankruptcy-remote subsidiaries which does not permit or provide for recourse to the Company or any
of its Subsidiaries (other than the structured bankruptcy-remote subsidiary) or any property or
assets of the Company or any of its Subsidiaries (other than property or assets of such structured
bankruptcy-remote subsidiary); provided that if at any time, whether by operation of law, the terms
of such indebtedness, pursuant to a legal judgment, decree or order, or otherwise, any such
indebtedness is, or becomes, recourse to the Company or any of its Subsidiaries (other than the
structured bankruptcy-remote subsidiary) then such indebtedness shall not be Securitization
Indebtedness.

     “Security” or “Securities” has the meaning specified in the first paragraph of the Recitals of
the Company.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
2.05.

     “Spin-Off” has the meaning specified in Section 5.06(c).

     “Stated Maturity Date” when used with respect to any Security and the payment of the principal
amount thereof, means April 15, 2012.

10

 

     “Stock Price” means the price paid per share of Common Stock in connection with a Make-Whole
Fundamental Change pursuant to which Additional Shares shall be added to the Conversion Rate as set
forth in Section 5.02, which shall be equal to (i) if holders of Common Stock receive only cash in
such Make-Whole Fundamental Change, the cash amount paid per share of Common Stock and (ii) in all
other cases, the average of the Last Reported Sale Prices of the Common Stock over the ten
consecutive Trading Day period ending on the Trading Day preceding the Effective Date of the
Make-Whole Fundamental Change.

     “Stock Price Condition” has the meaning specified in Section 5.01(a)(ii).

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

     “Successor Company” has the meaning specified in Section 7.01(a).

     “Trading Day” means a day during which (i) trading in the Common Stock generally occurs and
(ii) there is no Market Disruption Event.

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

     “Trading Price Condition” has the meaning specified in Section 5.01(a)(i).

     “Trigger Event” has the meaning specified in Section 5.06(c).

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in effect on the date as of
which this Indenture was executed; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, “Trust Indenture Act”

11

 

means, to
the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

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

     “U.S.” or “United States” means the United States of America.

     “Valuation Period” has the meaning specified in Section 5.06(c).

     “VWAP Market Disruption Event” means (i) a failure by the principal United States national or
regional securities exchange or market on which the Common Stock is listed or admitted to trading
to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m. (local time on such
exchange or market), on any Scheduled Trading Day for the Common Stock for an aggregate one
half-hour period of any suspension or limitation imposed on trading (by reason of movements in
price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any
options contracts or futures contracts relating to the Common Stock.

     “VWAP Trading Day” means a day during which (i) trading in the Common Stock generally occurs
on the principal United States national or regional securities exchange or market on which the
Common Stock is listed or admitted for trading and (ii) there is no VWAP Market Disruption Event.
For purposes of determining payment upon conversion of the Notes in accordance with Section 5.04,
if the Common Stock is not so listed or traded, then “VWAP Trading Day” shall mean “Business Day.”

     “Wholly Owned Subsidiary” of any Person means a Subsidiary of such Person, all the Capital
Stock of which (other than directors’ qualifying shares) is owned by such Person or another Wholly
Owned Subsidiary of such Person.

     Section 1.02.
Compliance Certificates and Opinions.Upon any application or request by the
Company to the Trustee to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be
required hereunder. Each such
certificate or opinion shall be given in the form of an Officers’ Certificate, if to be given by an
officer of the Company, or an Opinion of Counsel, if to be given by counsel, and shall comply with
any other requirement set forth in this Indenture.

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

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

12

 

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

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

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

     Section 1.03.
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.

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

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

     Section 1.04.
Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing and, except as herein otherwise expressly provided, such action shall
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 an “Act” of the Holders signing
such instrument or instruments. Proof of execution of

13

 

any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 8.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section 1.04.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution 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 execution
thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee reasonably deems sufficient.

     (c) The Company may fix any day as the record date for the purpose of determining the Holders
entitled to give or take any request, demand, authorization, direction, notice, consent, waiver or
other action, or to vote on any action, authorized or permitted to be given or taken by Holders.
If not set by the Company prior to the first solicitation of a Holder made by any Person in respect
of any such action, or, in the case of any such vote, prior to such vote, the record date for any
such action or vote shall be the 30th day (or, if later, the date of the most recent list of
Holders required to be provided pursuant to Section 9.01) prior to such first solicitation or vote,
as the case may be. With regard to any record date, only the Holders on such date (or their duly
designated proxies) shall be entitled to give or take, or vote on, the relevant action.

     (d) The ownership of Securities shall be proved by the Security Register.

     (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor 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.

     Section 1.05.
Notices,
Etc., to Trustee and Company. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with:

     (i) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its
applicable Corporate Trust Office; or

     (ii) the Company by the Trustee or by any Holder shall be sufficient for every
purpose hereunder (unless otherwise herein expressly

14

 

provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of its
principal office specified in the first paragraph of this instrument or at any other
address previously furnished in writing to the Trustee by the Company, Attention: General
Counsel.

     Section 1.06.
Notice to Holders; Waiver. Where this Indenture provides for notice to Holders
of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at
such Holder’s 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 shall affect the sufficiency of such
notice with respect to other Holders. Notices will be deemed to have been given on the date of
mailing. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

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

     Whenever under this Indenture the Trustee is required to provide any notice by mail, in all
cases the Trustee may alternatively provide notice by overnight courier or by telefacsimile, with
confirmation of transmission.

     Section 1.07.
Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction
hereof, and all Article and Section references are to Articles and Sections, respectively, of this
Indenture unless otherwise expressly stated.

     Section 1.08.
Severability Clause.In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     Section 1.09.
Benefits of Indenture.Nothing in this Indenture or in the Securities, express
or implied, shall give to any Person, other than the parties hereto and their respective successors
hereunder and the Holders of Securities, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

15

 

     Section 1.10.
Governing Law.This Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York.

     Section 1.11.
No Recourse Against Others.No director, officer, employee, stockholder or
Affiliate of the Company from time to time shall have any liability for any obligations of the
Company under the Securities or this Indenture. Each Holder by accepting a Security waives and
releases such liability.

ARTICLE 2

The Securities

     Section 2.01.
Designation, Amount and Issuance of Securities. The Securities shall be
designated as “4.00% Convertible Senior Notes due 2012.“ The Securities will be limited to an
aggregate principal amount of $250,000,000, subject to
Section 2.17 hereof. Upon the execution of
this Indenture, or from time to time thereafter, Securities may be executed by the Company and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver Securities upon a written
order of the Company, such order signed by an Officer of the Company, without any further action by
the Company hereunder.

     Section 2.02.Form of the Securities.The Securities and the Trustee’s certificate of
authentication to be borne by such Securities shall be substantially in the form set forth in
Exhibit A hereto.The terms and provisions contained in the form of Securities attached as Exhibit
A hereto shall constitute, and are hereby expressly made, a part of this Indenture and, to the
extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

     Any of the Securities may have such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required by the custodian for the Global Securities, the
Depositary or by The Financial Industry Regulatory Authority in order for the Securities to be
tradable on The PORTAL Market or as may be required for the Securities to be tradable on any other
market developed for trading of securities pursuant to Rule 144A or as may be required to comply
with any applicable law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any securities exchange or automated quotation system on which the Securities may be
listed, or to conform to usage, or to indicate any special limitations or restrictions to which any
particular Securities are subject.

     So long as the Securities are eligible for book-entry settlement with the Depositary, or
unless otherwise required by law, subject to Section 2.09, all of the Securities will be
represented by one or more Securities in global form registered in

16

 

the name of the Depositary or
the nominee of the Depositary (“Global Securities”). The transfer and exchange of beneficial
interests in any such Global Securities shall be effected through the Depositary in accordance with
this Indenture and the applicable procedures of the Depositary. Except as provided in Section
2.09, beneficial owners of a Global Security shall not be entitled to have certificates registered
in their names, will not receive or be entitled to receive physical delivery of certificates in
definitive form and will not be considered Holders of such Global Security.

     Any Global Security shall represent such of the outstanding Securities as shall be specified
therein and shall provide that it shall represent the aggregate amount of outstanding Securities
from time to time endorsed thereon and that the aggregate amount of outstanding Securities
represented thereby may from time to time be increased or reduced to reflect issuances,
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global
Security to reflect the amount of any increase or decrease in the amount of outstanding Securities
represented thereby shall be made by the Trustee or the custodian for the Global Security, at the direction of the Trustee, in such manner and upon instructions given by the
Holder of such Securities in accordance with this Indenture. Payment of principal of, and interest
on, any Global Securities shall be made to the Depositary in immediately available funds.

     Section 2.03.Date and Denomination of Securities; Payment at Maturity; Payment of Interest.
The Securities shall be issuable in registered form without coupons in denominations of $1,000
principal amount and integral multiples thereof. Each Security shall be dated the date of its
authentication and shall bear interest from the date specified on the face of the form of
Securities attached as Exhibit A hereto. Interest on the Securities shall be computed on the basis
of a 360-day year comprised of twelve 30-day months.

     On the Stated Maturity Date, each Holder shall be entitled to receive on such date the
principal amount of the Securities held and accrued and unpaid interest to, but not including, the
Stated Maturity Date. With respect to Global Securities, principal and interest will be paid to the
Depositary in immediately available funds. With respect to any Physical Securities, principal and
interest will be payable at the Company’s office or agency maintained for that purpose, which
initially will be the Trustee’s office at 101 Barclay Street, Floor 8 West, New York, New York
10286.

     The Person in whose name any Security is registered on the Register at 5:00 p.m., New York
City time, on any Record Date with respect to any Interest Payment Date shall be entitled to
receive the interest payable on such Interest Payment Date, except that the interest payable upon
Maturity will be payable to the Person to whom principal is payable upon Maturity.

     Except as provided above, the Company shall pay interest (i) on any Global Securities by wire
transfer of immediately available funds to the account of the Depositary or its nominee, (ii) on
any Securities in certificated form having a

17

 

principal amount of less than $5,000,000, by check
mailed to the address of the Person entitled thereto as it appears in the Security Register,
provided that at Maturity, interest will be payable at the office of the Company maintained by the
Company for such purposes, which shall initially be an office or agency of the Trustee located at
101 Barclay Street, Floor 8 West, New York, New York 10286 and (iii) on any Securities in
certificated form having a principal amount of $5,000,000 or more, by wire transfer in immediately
available funds at the election of the Holder of such Securities who has duly delivered notice of
such election and applicable wire instructions to the Trustee at least five Business Days prior to
the relevant Interest Payment Date; provided that at Maturity, interest will be payable at the
office of the Company maintained by the Company for such purposes, which shall initially be an
office or agency of the Trustee located at 101 Barclay Street, Floor 8 West, New York, New York
10286. If a payment date is not a Business Day, payment shall be made on the next succeeding
Business Day, and no additional interest shall accrue thereon.

     Section 2.04.Execution and Authentication.One or more Officers shall sign the Securities
for the Company by manual or facsimile signature.

     If an Officer whose signature is on a Security no longer holds that office at the time the
Trustee authenticates the Security, the Security shall be valid nevertheless.

     A Security shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.

     The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Securities. Any such appointment shall be evidenced by an instrument signed by a
Responsible Officer, a copy of which shall be furnished to the
Company. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities whenever the Trustee
may do so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as any Security
Registrar, Paying Agent or agent for service of notices and demands.

     Section 2.05.Security Registrar, Paying Agent and Conversion Agent.The Company shall
maintain an office or agency where Securities may be presented for registration of transfer or for
exchange (the “Security Registrar”), an office or agency where Securities may be presented for
payment (the “Paying Agent”) and an office or agency where Securities may be presented for
conversion (the “Conversion Agent”). The Corporate Trust Office shall be considered as one such
office or agency of the Company for each of the aforesaid purposes. The Security Registrar shall
keep a register of the Securities (the “Security Register”) and of their transfer and exchange.
The Company may have one or more co-registrars and one or more
additional paying agents. The term
“Paying Agent” includes any additional paying agent, and the term “Security Registrar” includes any
co-registrars. The Company

18

 

initially appoints the Trustee as (i) Security Registrar and Paying
Agent in connection with the Securities, (ii) the custodian with respect to the Global Securities
and (iii) Conversion Agent.

     The Company shall enter into an appropriate agency agreement with any Security Registrar,
Paying Agent or Conversion Agent not a party to this Indenture. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of
the name and address of any such agent. If the Company fails to maintain a Security Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 8.07. The Company or any of its domestically
organized Wholly Owned Subsidiaries may act as Paying Agent, Conversion Agent or Security
Registrar.

     The Company may remove any Security Registrar, Paying Agent or Conversion Agent upon written
notice to such Security Registrar, Paying Agent or Conversion Agent and to the Trustee; provided that no such removal shall become effective
until (1) acceptance of an appointment by a successor as evidenced by an appropriate agreement
entered into by the Company and such successor Security Registrar, Paying Agent or Conversion
Agent, as the case may be, and delivered to the Trustee or (2) notification to the Trustee that the
Trustee shall serve as Security Registrar, Paying Agent or Conversion Agent until the appointment
of a successor in accordance with clause (1) above. The Security Registrar, Paying Agent or
Conversion Agent may resign at any time upon written notice; provided that the Trustee may resign
as Paying Agent, Conversion Agent or Security Registrar only if the Trustee also resigns as Trustee
in accordance with Section 8.11.

     Section 2.06.Paying Agent To Hold Money in Trust.On or prior to each due date of the
principal and interest on any Security, the Company shall deposit with the Paying Agent (or if the
Company or a Wholly Owned Subsidiary of the Company is acting as Paying Agent, segregate and hold
in trust for the benefit of the Persons entitled thereto) a sum sufficient to pay such principal
and interest when so becoming due. The Company shall require each Paying Agent (other than the
Trustee) to agree in writing that the Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money held by the Paying Agent for the payment of principal of
or interest on the Securities and shall notify the Trustee of any default by the Company in making
any such payment. If the Company or a Wholly Owned Subsidiary of the Company acts as Paying Agent,
it shall segregate the money held by it as Paying Agent and hold it
as a separate trust fund. The
Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed by the Paying Agent. Upon complying with this Section 2.06, the
Paying Agent shall have no further liability for the money delivered to the Trustee.

     Section 2.07.
Securityholder Lists.The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of
Securityholders. If the Trustee is not the Security Registrar, the Company shall furnish, or cause
the Security Registrar to furnish, to the Trustee, in

19

 

writing at least five Business Days before
each Interest Payment Date and at such other times as the Trustee may request in writing, a list in
such form and as of such date as the Trustee may reasonably require of the names and addresses of
Securityholders.

     Section 2.08.Exchange and Registration of Transfer of Securities.The Company shall cause
to be kept at the Corporate Trust Office the Security Register in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Security Register shall be in written form or in any form capable
of being converted into written form within a reasonably prompt period of time.

     Upon surrender for registration of transfer of any Securities to the Security Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section 2.08
and in Section 2.10, the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Securities of any authorized denominations and of a like
aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture.

     Securities may be exchanged for other Securities of any authorized denominations and of a like
aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture, upon surrender of the Securities to be exchanged at any such office or agency maintained
by the Company pursuant to Section 3.02. Whenever any Securities are so surrendered for exchange,
the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the
Holder making the exchange is entitled to receive bearing registration numbers not
contemporaneously outstanding.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
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.

     All Securities presented or surrendered for registration of transfer or for exchange,
repurchase or conversion shall (if so required by the Company or the Security Registrar) be duly
endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory
to the Company, duly executed by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made to any Holder for any registration of, transfer or exchange of
Securities, but the Company may require payment by the Holder of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with any registration of

     Neither the Company nor the Trustee nor any Security Registrar shall be required to exchange,
issue or register a transfer of (a) any Securities or portions

20

 

thereof surrendered for conversion
pursuant to Article 5 or (b) any Securities or portions thereof tendered for repurchase (and not
withdrawn) pursuant to Section 4.01.

     Section 2.09.Global Securities.The following provisions shall apply to Global Securities:

     (a) Each Global Security authenticated under this Indenture shall be registered in the name of
the Depositary or a nominee thereof and delivered to the Depositary or a nominee thereof or
custodian for the Global Securities therefor, and each such Global Security shall constitute a
single Security for all purposes of this Indenture.

     (b) Notwithstanding any other provision in this Indenture, no Global Security may be exchanged
in whole or in part for Securities registered, and no transfer of a Global Security in whole or in
part may be registered, in the name of any Person other than the Depositary or a nominee thereof unless (A) the Depositary (x) has
notified the Company that it is unwilling or unable to continue as Depositary for such Global
Security or (y) has ceased to be a clearing agency registered under the Exchange Act, and a
successor depositary has not been appointed by the Company within 90 calendar days, or (B) the
Company, in its sole discretion, notifies the Trustee in writing that it no longer wishes to have
all the Securities represented by Global Securities. Any Global Securities exchanged pursuant to
this Section 2.09(b) shall be so exchanged in whole and not in part.

     (c) In addition, Physical Securities will be issued in exchange for beneficial interests in a
Global Security upon request by or on behalf of the Depositary in accordance with customary
procedures following the request of a beneficial owner seeking to enforce its rights under the
Securities or this Indenture upon the occurrence and during the continuance of an Event of Default.

     (d) Securities issued in exchange for a Global Security or any portion thereof pursuant to
Section 2.09(b) or Section 2.09(c) shall be issued in definitive, fully registered form, without
interest coupons, shall have an aggregate principal amount equal to that of such Global Securities
or portion thereof to be so exchanged, shall be registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear any
legends required hereunder. Any
Global Securities to be exchanged shall be surrendered by the Depositary to the Trustee, as
Security Registrar, provided that pending completion of the exchange of a Global Security, the
Trustee acting as custodian for the Global Securities for the Depositary or its nominee with
respect to such Global Securities, shall reduce the principal amount thereof, by an amount equal to
the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records
of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make
available for delivery the Securities issuable on such exchange to or upon the written order of the
Depositary or an authorized representative thereof.

21

 

     (e) In the event of the occurrence of any of the events specified in Section 2.09(b) above or
upon any request described in Section 2.09(c), the Company will promptly make available to the
Trustee a sufficient supply of Physical Securities in definitive, fully registered form, without
interest coupons.

     (f) Neither any members of, or participants in, the Depositary (“Agent Members”) nor any other
Persons on whose behalf Agent Members may act shall have any rights under this Indenture with
respect to any Global Securities registered in the name of the Depositary or any nominee thereof,
and the Depositary or such nominee, as the case may be, may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner and Holder of such Global
Securities for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or such
nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other
Person on whose behalf an Agent Member may act, the operation of customary practices of such Persons governing the
exercise of the rights of a Holder of any Securities.

     (g) At such time as all interests in a Global Security have been repurchased, converted,
cancelled or exchanged for Securities in certificated form, such Global Security shall, upon
receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions
existing between the Depositary and the custodian for the Global
Security. At any time prior to
such cancellation, if any interest in a Global Security is redeemed, repurchased, converted,
cancelled or exchanged for Securities in certificated form, the principal amount of such Global
Security shall, in accordance with the standing procedures and instructions existing between the
Depositary and the custodian for the Global Security, be appropriately reduced, and an endorsement
shall be made on such Global Security, by the Trustee or the custodian for the Global Security, at
the direction of the Trustee, to reflect such reduction.

     Section 2.10.
Transfer Restrictions.Until the first anniversary of the Issue Date of any
Security Outstanding, (1) any certificate evidencing a Security shall bear a legend in
substantially the form identified as the “Restricted Security Legend” (the “Restricted Security
Legend”) in the form of Security set forth in Exhibit A and (2) any certificate representing Common
Stock issued upon conversion of the Securities shall bear a legend in substantially the form of
Exhibit B, unless such Security (or such Common Stock) has been sold pursuant to a registration
statement that has been declared effective under the Securities Act (and which continues to be
effective at the time of such transfer) or sold pursuant to Rule 144 or any similar provision then
in force, or unless otherwise agreed by the Company in writing, with written notice thereof to the
Trustee.

     Every Security (and all securities issued in exchange therefor or in substitution thereof)
that bears or is required under this Section 2.10 to bear the legend required by this Section 2.10
(together with any Common Stock issued upon

22

 

conversion of the Securities and required to bear the
legend set forth in Exhibit B, collectively, the “Restricted Securities”) shall be subject to the
restrictions on transfer set forth in this Section 2.10 and such legends, unless such restrictions
on transfer shall be waived by written consent of the Company following receipt of legal advice
supporting the permissibility of the waiver of such transfer restrictions, and the Holder of any
Restricted Securities, by such Holder’s acceptance thereof, agrees to be bound by all such
restrictions on transfer. As used in this Section 2.10, the term “transfer” means any sale,
pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest
therein.

     In connection with any transfer of the Securities that are Restricted Securities prior to the
date one year after the last date of original issuance of the Securities (other than a transfer
pursuant to a registration statement which has been declared effective under the Securities Act),
the Holder must complete and deliver the form of assignment set forth on the certificate
representing the Securities with the appropriate box checked to the Trustee (or any successor
Trustee, as applicable). If the proposed transfer is pursuant to clause (2)(D) of the Restricted Security Legend, the Holder must,
prior to such transfer, furnish to the Trustee (or any successor Trustee, as applicable), such
certifications, legal opinions or other information as the Company may reasonably require to
confirm that such transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act. The Restricted Security Legend
will be removed upon the earlier of (1) the first anniversary of the Issue Date of any Security
Outstanding, (2) the transfer of the Security evidenced thereby pursuant to clause (2)(B) of the
Restricted Security Legend or (3) on any transfer of the Security under Rule 144.

     Any Securities that are Restricted Securities and as to which such restrictions on transfer
shall have expired in accordance with their terms or as to which conditions for removal of the
Restricted Security Legend set forth therein have been satisfied may, upon surrender of such
Securities for exchange to the Security Registrar in accordance with the provisions of this Section
2.10, be exchanged for a new Security or Securities, of like tenor and aggregate principal amount,
which shall not bear the Restricted Security Legend required by this
Section 2.10. If such
Restricted Security surrendered for exchange is represented by a Global Security bearing the
Restricted Security Legend, the principal amount of the legended Global Securities shall be reduced
by the appropriate principal amount and the principal amount of a Global Security without the
Restricted Security Legend shall be increased by an equal principal
amount. If a Global Security
without the Restricted Security Legend is not then outstanding, the Company shall execute and the
Trustee shall authenticate and deliver an unlegended Global Security to the Depositary.

     Section 2.11.Responsibilities
and Obligations of the Trustee. The Trustee shall have no
responsibility or obligation to any Agent Members or any other Person with respect to the accuracy
of the books or records, or the acts or omissions, of the Depositary or its nominee or of any
participant or member thereof, with respect to any ownership interest in the Securities or with
respect to the delivery to any Agent Member or other Person (other than the Depositary) of any
notice or the payment of

23

 

any
amount, under or with respect to such Securities. All notices and
communications to be given to the Holders of Securities and all payments to be made to Holders of
Securities under the Securities shall be given or made only to or upon the order of the registered
Holders of Securities (which shall be the Depositary or its nominee in the case of a Global
Security). The rights of beneficial owners in any Global Securities shall be exercised only
through the Depositary subject to the customary procedures of the
Depositary. The Trustee may rely
and shall be fully protected in relying upon information furnished by the Depositary with respect
to its Agent Members.

     The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance
with any restrictions on transfer imposed under this Indenture or under applicable law with respect
to any transfer of any interest in any Securities (including any transfers between or among Agent
Members) other than to require delivery of such certificates and other documentation or evidence as
are expressly required by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

     Section 2.12.Replacement Securities.If a mutilated Security is surrendered to the Security
Registrar or if the Securityholder of a Security claims that the Security has been lost, destroyed
or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial Code are met, such that the
Securityholder (i) notifies the Company or the Trustee within a reasonable time after he has notice
of such loss, destruction or wrongful taking and the Security Registrar does not register a
transfer prior to receiving such notification, (ii) makes such request to the Company or the
Trustee prior to the Security being acquired by a protected purchaser as defined in Section 8-303
of the Uniform Commercial Code (a “protected purchaser”) and (iii) satisfies any other reasonable
requirements of the Trustee and the Company. If required by the Trustee or the Company, such
Securityholder shall furnish an indemnity bond sufficient in the judgment of the Trustee to protect
the Company, the Trustee, the Paying Agent, the Conversion Agent and the Security Registrar from
any loss that any of them may suffer if a Security is replaced. The Company and the Trustee may
charge the Securityholder for their expenses in replacing a Security. In case any Security which
has matured or is about to mature or has been properly tendered for repurchase on a Fundamental
Change Repurchase Date (and not withdrawn) or is to be converted into Common Stock, shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute
Security, pay or authorize the payment of or convert or authorize the conversion of the same
(without surrender thereof except in the case of a mutilated Securities), as the case may be, if
the applicant for such payment or conversion shall furnish to the Company, to the Trustee and, if
applicable, to such authenticating agent such security or indemnity as may be required by them to
save each of them harmless for any loss, liability, cost or expense caused by or in connection with
such substitution, and, in every case of destruction, loss or theft, the applicant shall also
furnish to the

24

 

Company, the Trustee and, if applicable, any Paying Agent or Conversion Agent
evidence to their satisfaction of the destruction, loss or theft of such Securities and of the
ownership thereof.

     The provisions of this Section 2.12 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, lost,
destroyed or wrongfully taken Securities.

     Section 2.13.
Outstanding Securities.Securities outstanding at any time are all Securities
authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section 2.13 as not
outstanding. A Security does not
cease to be outstanding because the Company or an Affiliate of the Company holds the Security.

     If a Security is replaced pursuant to Section 2.12, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a
protected purchaser.

     If the Paying Agent segregates and holds in trust, in accordance with this Indenture, on a
Fundamental Change Repurchase Date or Stated Maturity Date money sufficient to pay all principal
and interest payable on that date with respect to the Securities (or portions thereof) to be
repurchased or maturing, as the case may be, and the Paying Agent is not prohibited from paying
such money to the Securityholders on that date pursuant to the terms of this Indenture, then on and
after that date such Securities (or portions thereof) cease to be outstanding and interest on them
ceases to accrue.

     Section 2.14.Temporary Securities.Pending the preparation of Securities in certificated
form, the Company may execute and the Trustee or an authenticating agent appointed by the Trustee
shall, upon the written request of the Company, authenticate and deliver temporary Securities
(printed or lithographed). Temporary Securities shall be issuable in any authorized denomination,
and substantially in the form of the Securities in certificated form, but with such omissions,
insertions and variations as may be appropriate for temporary Security, all as may be determined by
the Company. Every such temporary Securities shall be executed by the Company and authenticated by
the Trustee or such authenticating agent upon the same conditions and in substantially the same
manner, and with the same effect, as the Securities in certificated form. Without unreasonable
delay, the Company will execute and deliver to the Trustee or such authenticating agent Securities
in certificated form and thereupon any or all temporary Securities may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section 3.02 and the
Trustee or such authenticating agent shall authenticate and make available for delivery in exchange
for such temporary Securities an equal aggregate principal amount of Securities in certificated
form. Such exchange shall be made by the Company at its own expense and without any charge
therefor. Until so exchanged, the temporary Securities shall in all respects be entitled to the
same

25

 

benefits and subject to the same limitations under this Indenture as Securities in
certificated form authenticated and delivered hereunder.

     Section 2.15.
Cancellation. The Company at any time may deliver Securities to the Trustee
for cancellation. The Security Registrar and the Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange
or payment. The Trustee and
no one else shall cancel all Securities surrendered for registration of transfer, exchange, payment
or cancellation and deliver canceled Securities to the Company pursuant to written direction by an
Officer. The Company may not issue new Securities to replace Securities it has redeemed, paid or
delivered to the Trustee for cancellation. The Trustee shall not authenticate Securities in place
of canceled Securities other than pursuant to the terms of this Indenture.

     Section 2.16.CUSIP
and ISIN Numbers. The Company in issuing the Securities may use “CUSIP”
and “ISIN” numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” and “ISIN”
numbers in notices of redemption as a convenience to Securityholders; 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.

     Section 2.17.
Additional Securities. The Company may, from time to time without the consent
of the Holders of outstanding Securities, increase the aggregate principal amount of the Securities
by issuing additional Securities in the future pursuant to this Indenture (“Additional Securities”)
having terms and conditions identical to those of the other outstanding Securities, except that
Additional Securities may have a different initial date from which interest begins to accrue
thereon so that the Additional Securities are fungible with outstanding Securities; provided that
no differences pursuant to this Section 2.17 shall cause such Additional Securities to constitute a
different class of securities than the Securities issued pursuant to the Purchase Agreement for
U.S. federal income tax purposes; and provided further, that the Additional Securities shall have
the same CUSIP number as the Securities issued pursuant to the
Purchase Agreement. The Securities
originally issued pursuant to the Purchase Agreement and any Additional Securities shall be treated
as a single class for all purposes under this Indenture, including waivers, amendments, offers to
purchase and United States federal tax purposes. No Additional Securities may be issued if on the
Issue Date therefor any Event of Default has occurred and is continuing.

26

 

ARTICLE 3

Particular Covenants of the Company

     Section 3.01. Payment of Principal and Interest. The Company covenants and agrees that it
shall duly and punctually pay or cause to be paid the principal of, and interest on, each of the
Securities at the places, at the respective times and in the manner provided herein and in the
Securities.

     Section 3.02. Maintenance of Office or Agency. The Company shall maintain an office or
agency in the Borough of Manhattan, The City of New York, where the Securities may be surrendered
for registration of transfer or exchange or for presentation for payment or for conversion and
where notices and demands to or upon the Company in respect of the Securities and this Indenture
may be served. The Company shall give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency not designated or appointed by the Trustee.
If at any time the Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and demands.

     The Company may also from time to time designate co-registrars and one or more offices or
agencies where the Securities may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations.

     The Company will give prompt written notice of any such designation or rescission and of any
change in the location of any such other office or agency.

     The Company hereby initially designates the Trustee as Paying Agent, Security Registrar,
Custodian and Conversion Agent at the Corporate Trust Office.

     So long as the Trustee is the Security Registrar, the Trustee agrees to mail, or cause to be
mailed, the notices set forth in Section 8.11(a) and the third paragraph of Section 8.12. If
co-registrars have been appointed in accordance with this Section, the Trustee shall mail such
notices only to the Company and the Holders of Securities it can identify from its records.

     Section 3.03. Provisions as to Paying Agent.

     (a) If the Company shall appoint a Paying Agent other than the Trustee, or if the Trustee
shall appoint such a Paying Agent, the Company will cause such Paying Agent to execute and deliver
to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section 3.03:

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of or interest, on the Securities (whether such sums

27

 

have been paid to it by the
Company or by any other obligor on the Securities) in trust for the benefit of the Holders
of the Securities;

     (ii) that it will give the Trustee notice of any failure by the Company (or by any
other obligor on the Securities) to make any payment of the principal of or interest on
the Securities when the same shall be due and payable; and

     (iii) that at any time during the continuance of an Event of Default, upon request of
the Trustee, it will forthwith pay to the Trustee all sums so held in trust.

     The Company shall, on or before each due date of the principal of or interest on the
Securities, deposit with the paying agent a sum (in funds which are immediately available on the
due date for such payment) sufficient to pay such principal or interest, and (unless such paying
agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such
action; provided, however, that if such deposit is made on the due date, such deposit shall be
received by the paying agent by 11:00 a.m. New York City time, on such date.

     (b) If the Company shall act as its own Paying Agent, it will, on or before each due date of
the principal of or interest on the Securities, set aside, segregate and hold in trust for the
benefit of the Holders of the Securities a sum sufficient to pay such principal or interest so
becoming due and will promptly notify the Trustee of any failure to take such action and of any
failure by the Company (or any other obligor under the Securities) to make any payment of the
principal of or interest on the Securities when the same shall become due and payable.

     (c) Anything in this Section 3.03 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any paying
agent hereunder as required by this Section 3.03, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company or any paying agent to the Trustee,
the Company or such paying agent shall be released from all further liability with respect to such
sums.

     (d) Anything in this Section 3.03 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 3.03 is subject to Section 10.03 and Section 10.04.

     The Trustee shall not be responsible for the actions of any other paying agents (including the
Company if acting as its own paying agent) and shall have no control of or liability for any funds
held by such other paying agents.

     Section 3.04 . Rule 144A Information Requirement. Until the first anniversary of the Issue
Date, the Company covenants and agrees that it shall, during

28

 

any period in which it is not subject
to Section 13 or 15(d) under the Exchange Act, make available to any Holder or beneficial holder of
Securities or any Common Stock issued upon conversion thereof which continue to be Restricted
Securities in connection with any sale thereof and any prospective purchaser of Securities or such
Common Stock designated by such Holder or beneficial holder, the information required pursuant to
Rule 144A(d)(4) under the Securities Act upon the request of any Holder or beneficial holder of the
Securities or such Common Stock, all to the extent required from time to time to enable such Holder
or beneficial holder to sell its Securities or Common Stock without registration under the
Securities Act within the
limitation of the exemption provided by Rule 144A, as such rule may be amended from time to
time.

     Section 3.05. Resale of Certain Securities. The Company shall not, and shall not permit any
of its “affiliates” (as defined under Rule 144 or any successor provision thereto) to, resell any
Securities that have been reacquired by any of them. The Trustee shall have no responsibility in
respect of the Company’s performance of its agreement in the preceding sentence.

     Section 3.06. [RESERVED]

     Section 3.07. Book-Entry System. If the Securities cease to trade in the Depositary’s
book-entry settlement system, the Company covenants and agrees that it shall use reasonable efforts
to make such other book entry arrangements that it determines are reasonable for the Securities.

     Section 3.08. Compliance Certificate. The Company shall deliver to the Trustee, within 120
days after the end of each fiscal year of the Company, commencing with the fiscal year ending
December 31, 2008, an Officers’ Certificate, stating whether to the knowledge of the signer
thereof any event had occurred and is continuing, which is or after notice of lapse of time or both
would become an Event of Default, and if such an event has occurred and is continuing, specifying
each such event known to such Officers and the status thereof.

     The Company shall deliver to the Trustee, as soon as possible and in any event within 30 days
after the Company becomes aware of the occurrence of any Event of Default or an event which, with
notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate
setting forth the details of such Event of Default or Default, its status and the action which the
Company proposes to take with respect thereto.

     Any notice required to be given under this Section 3.08 shall be delivered to a Responsible
Officer of the Trustee at its Corporate Trust Office.

     Section 3.09. Payment of Default Additional Interest. The Company will make a one time
payment to each Holder of Notes of 0.50% of such Holder’s aggregate principal amount of Notes
(“Default Additional Interest”) if at any time during the six months to one year period following
the Issue Date of any Notes then

29

 

outstanding, it fails to timely file any document or report that
it is required (giving effect to any grace period provided by Rule 12b-25) to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (other than reports
on Form 8-K); provided that the Company will have 14 days, in the aggregate, to cure all such
missed filings. The Default Additional Interest will be payable on the Interest Payment Date
following the late filing.

ARTICLE 4

Repurchase of Notes

     Section 4.01. Right To Require Repurchase Upon a Fundamental Change.

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

     Notwithstanding the foregoing, no Holder shall have the right to require the Company to
repurchase any of its Notes under clause (2) of the definition of Fundamental Change (and the
Company shall not be required to deliver the Fundamental Change Repurchase Notice incidental
thereto) if at least 90% of the consideration paid for the Common Stock (excluding cash payments
for fractional shares and cash payments made pursuant to dissenters’ appraisal rights and cash
dividends) in a merger or consolidation or such other transaction otherwise constituting a
Fundamental Change under clause (2) of the definition thereof consists of shares of common stock
traded on The New York Stock Exchange, the NASDAQ Global Market, the NASDAQ Global Select Market or
the American Stock Exchange (or any of their respective successors) (or will be so traded
immediately following the Fundamental Change) and, as a result of the completion of the merger or
consolidation or such other transaction, the Daily Conversion Values become based on such shares of
common stock pursuant to Section 5.12.

30

 

     Repurchases of Notes under this Section 4.01 shall be made, at the option of the Holder
thereof, upon:

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

     (ii) delivery or book-entry transfer of the Notes to the Trustee (or other Paying
Agent appointed by the Company) at any time after delivery of the Fundamental Change
Repurchase Notice (together with all necessary endorsements) at the Corporate Trust Office
of the Trustee (or other Paying Agent appointed by the Company), such delivery being a
condition to receipt by the Holder of the Fundamental Change Repurchase Price therefor;
provided that such Fundamental Change Repurchase Price shall be so paid pursuant to this
Section 4.01 only if the Note so delivered to the Trustee (or other Paying Agent appointed
by the Company) shall conform in all respects to the description thereof in the related
Fundamental Change Repurchase Notice.

The Fundamental Change Repurchase Notice shall state:

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

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

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

     Any purchase by the Company contemplated pursuant to the provisions of this Section 4.01 shall
be consummated by the delivery of the consideration to be received by the Holder promptly following
the later of the Fundamental Change Repurchase Date and the time of the book-entry transfer or
delivery of the Note.

     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal
thereof in accordance with the provisions of subsection (c) of this Section 4.01.

31

 

     Any Note that is to be repurchased only in part shall be surrendered to the Trustee (with, if
the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and make available for delivery to the Holder of such Note without service charge, a
new Note or Notes, containing identical terms and conditions, each in an authorized denomination in
aggregate principal amount equal to and in exchange for the unrepurchased portion of the principal
of the Note so surrendered.

     (b) On or before the 10th calendar day following the occurrence of a Fundamental
Change, the Company shall provide to all Holders of the Notes and the Trustee and Paying Agent a
notice (the “Fundamental Change Repurchase Right Notice”) of the occurrence of such Fundamental
Change and of the repurchase right, if any, at the option of the Holders arising as a result
thereof. Such mailing shall be by first class mail. Simultaneously with providing such Fundamental
Change Repurchase Right Notice, the Company shall publish a notice containing the information
included therein in a newspaper of general circulation in The City of New York or on the Company’s
website or through such other public medium as the Company may use at such time.

     Each Fundamental Change Repurchase Right Notice shall specify (if applicable):

     (i) the events causing a Fundamental Change;

     (ii) the date of the Fundamental Change;

     (iii) the Fundamental Change Repurchase Date and the last date on which a Holder may
exercise the repurchase right, if applicable;

     (iv) the Fundamental Change Repurchase Price, if applicable;

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

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

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

     (viii) that the Holder must exercise the repurchase right on or prior to the
Fundamental Change Expiration Time;

32

 

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

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

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 4.01.

     (c) A Fundamental Change Repurchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the Paying Agent in accordance with the Fundamental Change Repurchase Right
Notice at any time prior to the Fundamental Change Expiration Time, specifying:

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

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

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

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

     (d) On or prior to 11:00 a.m., New York City time, on the Fundamental Change Repurchase Date,
the Company shall deposit with the Trustee (or other Paying Agent appointed by the Company or if
the Company is acting as its own Paying Agent, set aside, segregate and hold in trust) an amount of
money sufficient to repurchase on the Fundamental Change Repurchase Date all of the Notes to be
repurchased on such date at the Fundamental Change Repurchase Price. Subject to receipt of funds
and/or Notes by the Trustee (or other Paying Agent appointed by the Company), payment for Notes
surrendered for repurchase (and not withdrawn) prior to the Fundamental Change Expiration Time
shall be made promptly after the later of (x) the Fundamental Change Repurchase Date with respect to
such Note (provided the Holder has satisfied the conditions to the payment of the Fundamental
Change Repurchase Price in this Section 4.01), and (y) the time of book-entry transfer or the
delivery of such Note to the Trustee (or other Paying Agent appointed by the Company) by the Holder
thereof in the manner required by this Section 4.01 by mailing checks for the amount payable to

33

 

the
Holders of such Notes entitled thereto as they shall appear in the Register, provided, however,
that payments to the Depositary shall be made by wire transfer of immediately available funds to
the account of the Depositary or its nominee. The Trustee shall, promptly after such payment and
upon written demand by the Company, return to the Company any funds in excess of the Fundamental
Change Repurchase Price.

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

     (f) In connection with any repurchase of Notes pursuant to this Article 4, the Company hereby
agrees to:

     (i) comply with the provisions of Rule 13e-1, Rule 13e-4, Rule 14e-1 and any other
tender offer rules under the Exchange Act that may then be applicable; and

     (ii) otherwise comply with all applicable federal and state securities laws.

     No Notes may be repurchased at the option of Holders upon a Fundamental Change if the
principal amount of the Notes has been accelerated, and such acceleration has not been rescinded,
on or prior to such date.

ARTICLE 5

Conversion

     Section 5.01. Conversion Privilege and Conversion Rate. (a) Subject to the conditions
described in clause (i), (ii), and (iii) below, and upon compliance with the provisions of this
Article 5, a Holder shall have the right, at such Holder’s option, to convert all or any portion
(if the portion to be converted is $1,000 principal amount or an integral multiple thereof) of such
Note at any time prior to the close of business on the Scheduled Trading Day immediately preceding
October 15, 2011, at a rate (the “Conversion Rate”) of 48.7805 shares of Common Stock (subject to
adjustment as provided in this Indenture) per $1,000 principal amount of the Note (the “Conversion
Obligation”) under the

34

 

circumstances and during the periods set forth below. On and after October
15, 2008, regardless of the conditions described in clause (i), (ii) and (iii) below, and upon
compliance with the provisions of this Article 5, a Holder shall have the right, at such Holder’s
option, to convert all or any portion (if the portion to be converted is $1,000 principal amount or
an integral multiple thereof) of Notes at the applicable Conversion Rate at any time prior to the
close of business on the third Scheduled Trading Day immediately preceding the Stated Maturity
Date.

     (i) The Notes shall be convertible prior to October 15, 2011, during the five
Business Day period immediately after any five consecutive Trading Day period (the
“Measurement Period”) in which the Trading Price per $1,000 principal amount of the Notes
determined as set forth below for each Trading Day of such Measurement Period was less
than 98% of the product of (x) the Last Reported Sale Price of the Common Stock on each
such date and (y) the Conversion Rate on such Trading Day (the “Trading Price Condition”).
If a Holder provides the Company with reasonable evidence that the Trading Price of the
Notes would be less than 98% of the product of (a) the then-applicable Conversion Rate of
the Notes and (b) the Last Reported Sale Price at such time, then the Company shall
instruct the Bid Solicitation Agent to determine the Trading Price of the Notes beginning
on the next Trading Day and on each successive Trading Day until the date on which the
Trading Price per Note is greater than or equal to 98% of the product of (a) the
then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price (as
provided to the Bid Solicitation Agent by the Company on each such date). If the Trading
Price Condition has been met, the Company shall so notify the Holders of the Notes. If, at
any time after the Trading Price Condition has been met, the Trading Price per $1,000
principal amount of the Notes is greater than or equal to 98% of the product of (a) the
then-applicable Conversion Rate of the Notes and (b) the Last Reported Sale Price on such
date, the Company shall so notify the Holders of the Notes, and the Bid Solicitation Agent
shall have no further obligation to determine the Trading Price of the Notes unless
requested by the Company to do so again in writing pursuant to this Section 5.01(a)(i). If
the Company does not, when obligated to do so pursuant to this clause (i), instruct the
Bid Solicitation Agent to determine the Trading Price of the Notes, or if the Company so
instructs the Bid Solicitation Agent, but the Bid Solicitation Agent does not make such
determination, then the Trading Price per $1,000 principal amount of the Notes shall be
deemed to be less than 98% of the product of (a) the then-applicable Conversion Rate of
the Notes and (b) the Last Reported Sale Price on such date, until such time the Bid
Solicitation Agent makes such determination.

     (ii) The Notes shall be convertible prior to October 15, 2011 during any calendar
quarter after the calendar quarter ending June 30,

35

 

2008 (and only during such calendar
quarter), if the Last Reported Sale Price of the Common Stock for twenty (20) or more
Trading Days in a period of thirty (30) consecutive Trading Days ending on the last
Trading Day of the immediately preceding calendar quarter exceeds 130% of the applicable
Conversion Price in effect on each such Trading Day, all as determined by the Company and
communicated to the Trustee (the “Stock Price Condition”). If the Stock Price Condition
has been satisfied, the Company shall promptly notify Holders of Notes.

     (iii) The Notes shall be convertible prior to October 15, 2011, as provided in
subsections (b), (c) and (d) of this Section 5.01.

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

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

     (ii) distribute to all or substantially all holders of Common Stock, assets
(including cash) or debt securities of the Company or rights to purchase the Company’s
securities, which distribution has a per share value (as determined by the Board of
Directors) exceeding 5% of the Last Reported Sale Price of the Common Stock on the Trading
Day immediately preceding the date of declaration of such distribution,

then, in either case, Holders may surrender the Notes for conversion at any time on and after the
date that the Company provides the notice to such Holders referred to in the next sentence until
the earlier of 5:00 p.m., New York City time, on the Business Day immediately preceding the Ex-Date
for such distribution or the date the Company announces that such distribution will not take place
even if the Notes are not otherwise convertible at such time. The Company shall notify Holders of
any distribution referred to in either clause (i) or clause (ii) of this Section 5.01(b) and of the
resulting conversion right no later than the 65th Scheduled Trading Day prior to the Ex-Date for
such distribution. A Holder may not exercise this right if such Holder is permitted to participate
(as a result of holding the Notes, and at the same time as holders of the Common Stock participate)
in any distribution referred to in clause (i) or clause (ii) of this Section 5.01(b) as if such
Holder held a number of shares of Common Stock equal to the then-applicable Conversion Rate,
multiplied by the principal amount (expressed in thousands) of Notes held by such Holder, without
having to convert its Notes.

36

 

     (c) If the Company is a party to any transaction or event that constitutes a Fundamental
Change, a Holder may surrender Notes for conversion at any time after the effective date of such
transaction or event until (i) the related Fundamental Change Repurchase Date or (ii) if there is
no such Fundamental Change Repurchase Date, 30 Scheduled Trading Days following the effective date
of such Fundamental Change and, upon such surrender the Holder may be entitled to an increase in
the Conversion Rate by Additional Shares of Common Stock, if any, as specified in Section 5.02.
Upon becoming aware of such a transaction, the Company shall notify, in the manner provided for in
Section 1.06, each of the Holders and the Trustee of the occurrence of a Fundamental Change on the
anticipated effective date of such Fundamental Change.

     (d) If the Company is a party to a combination, merger, recapitalization, reclassification,
binding share exchange or other similar transaction or sale or conveyance of substantially all of
its properties and assets (excluding a pledge of securities issued by any of the Company’s
subsidiaries but, for the avoidance of doubt, not excluding any foreclosure thereon) in each case
pursuant to which the
Common Stock would be converted into cash, securities and/or other property that does not
constitute a Fundamental Change, then the Holders shall have the right to convert Notes at any time
beginning on the earlier of (i) the date on which the Company gives notice or makes a public
announcement of such transaction and (ii) the effective date of such transaction, and ending 20
Scheduled Trading Days after the date that is the effective date of such transaction. Upon becoming
aware of such a transaction, the Company shall notify Holders as soon as practicable of the
anticipated effective date of a transaction to which the provisions of this Section 5.01(d) shall
apply.

     Section 5.02. Conversion Rate Adjustment Upon Certain Make-whole Fundamental Changes.

     (a) If a Holder elects to convert Notes in connection with a Make-Whole Fundamental Change
that occurs prior to the Stated Maturity Date, the Conversion Rate applicable to each $1,000
principal amount of Notes so converted shall be increased by an additional number of shares of
Common Stock (the “Additional Shares”) as described below; provided, however that no increase shall
be made pursuant to this Section 5.02 in the case of a Make-Whole Fundamental Change described in
clause (2) of the definition thereof if at least 90% of the consideration paid for the Common Stock
(excluding cash payments for fractional shares and cash payments made pursuant to dissenters’
appraisal rights) in such Make-Whole Fundamental Change transaction consists of shares of common
stock (“Publicly Traded Securities”) that are traded on the New York Stock Exchange, the NASDAQ
Global Market, the NASDAQ Global Select Market or the American Stock Exchange (or their respective
successors) (or that will be so traded immediately following the transaction) and as a result of
such transaction or transactions the Daily Conversion Values are based on such

37

 

Publicly Traded
Securities pursuant to Section 5.12. Settlement of Notes tendered for conversion to which
Additional Shares shall be added to the Conversion Rate as provided in this subsection shall be
made pursuant to Section 5.04(d). For purposes of this Section 5.02, a conversion shall be deemed
to be “in connection with” a Make-Whole Fundamental Change to the extent that the related
Conversion Date occurs on or after the Effective Date of such Make-Whole Fundamental Change and
prior to the related Fundamental Change Repurchase Date, or if there is no such Fundamental Change
Repurchase Date, 30th Scheduled Trading Day following such Effective Date (regardless of whether
the Notes are otherwise convertible because of the conditions set forth in Section 5.01).

     (b) The number of Additional Shares shall be determined by the Company by reference to the
table attached as Schedule A hereto, based on the date on which the Make-Whole Fundamental Change
becomes effective (the “Effective Date”) and the Stock Price; provided that if the actual Stock
Price is between two Stock Price amounts in the table or the Effective Date is between two
Effective Dates in the table, the number of Additional Shares shall be determined by a
straight-line interpolation between the number of Additional Shares set forth for the next higher
and next lower Stock Price amounts and the two nearest Effective Dates, as applicable, based on a
365-day year; provided further that if (i) the Stock Price is greater than $63.50 per share of
Common Stock (subject to adjustment in the same manner as set forth in clause (c) below), no
Additional Shares shall be added to the Conversion Rate, and (ii) the Stock
Price is less than $17.00 per share (subject to adjustment in the same manner as set forth in
clause (c) below), no Additional Shares shall be added to the Conversion Rate. Notwithstanding the
foregoing, in no event shall the Conversion Rate exceed 58.8235 per $1,000 principal amount of
Notes (subject to adjustment in the same manner as set forth in Section 5.06).

     (c) The Stock Prices set forth in the first column of the tables in Schedule A hereto shall be
adjusted by the Company as of any date on which the Conversion Rate of the Notes is otherwise
adjusted. The adjusted Stock Prices shall equal the Stock Prices applicable immediately prior to
such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate in effect
immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator
of which is the Conversion Rate as so adjusted. The number of Additional Shares within the table
shall be adjusted in the same manner as the Conversion Rate as set forth in Section 5.06 (other
than by operation of an adjustment to the Conversion Rate by adding Additional Shares).

     Section 5.03. Exercise of Conversion Privilege.

     (a) Before any Holder of a Note shall be entitled to convert the same as set forth above, such
holder shall (i) in the case of a Global Note, comply with the

38

 

procedures of the Depositary in
effect at that time and, if required, pay funds equal to interest payable on the next Interest
Payment Date to which such Holder is not entitled as set forth in Section 5.04(e) and, if required,
pay all taxes or duties, if any, and (ii) in the case of a Note issued in certificated form, (A)
complete and manually sign and deliver an irrevocable written notice to the Conversion Agent in the
form set forth under Exhibit A hereto (or a facsimile thereof) (a “Conversion Notice”) at the
office of the Conversion Agent and shall state in writing therein the principal amount of Notes to
be converted and the name or names (with addresses) in which such Holder wishes the certificate or
certificates for any shares of Common Stock, if any, to be delivered upon settlement of the
Conversion Obligation to be registered, (B) surrender such Notes, duly endorsed to the Company or
in blank (and accompanied by appropriate endorsement and transfer documents), at the office of the
Conversion Agent, (C) if required, pay funds equal to interest payable on the next Interest Payment
Date to which such Holder is not entitled as set forth in Section 5.04(e), and (D) if required, pay
all taxes or duties, if any. A Note shall be deemed to have been converted immediately prior to the
close of business on the date (the “Conversion Date”) that the Holder has complied with the
requirements set forth in this Section 5.03(a).

     No Conversion Notice with respect to any Notes may be tendered by a Holder thereof if such
Holder has also tendered a Fundamental Change Repurchase Notice and not validly withdrawn such
Fundamental Change Repurchase Notice in accordance with the applicable provisions of Article 4.

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

     No Conversion Notice with respect to any Notes may be tendered by a Holder thereof if such
Holder has also tendered a Fundamental Change Repurchase Notice and not validly withdrawn such
Fundamental Change Repurchase Notice in accordance with the applicable provisions of Article 4.

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

     (b) In case any Note shall be surrendered for partial conversion, the Company shall execute
and the Trustee shall, as provided in a Company Order, authenticate and deliver to or upon the
written order of the Holder of the Note so

39

 

surrendered, without charge to such Holder, a new Note
or Notes in authorized denominations in an aggregate principal amount equal to the unconverted
portion of the surrendered Notes.

     (c) If a Holder submits a Note for conversion, the Company shall pay all stamp and other
duties, if any, which may be imposed by the United States or any political subdivision thereof or
taxing authority thereof or therein with respect to the issuance of shares of Common Stock, if any,
upon the conversion. However, the Holder shall pay any such tax which is due because the Holder
requests any shares of Common Stock to be issued in a name other than the Holder’s name. The
Company may refuse to deliver the certificates representing the shares of Common Stock being issued
in a name other than the Holder’s name until the Company receives a sum sufficient to pay any tax
which will be due because the shares are to be issued in a name other than the Holder’s name.
Nothing herein shall preclude any tax withholding required by law or regulations.

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

     Section 5.04. Settlement of Conversion Obligation.

     (a) Subject to clause (c) below, the Company shall satisfy the Conversion Obligation with
respect to each $1,000 principal amount of Notes tendered for conversion by delivering, on the
third Business Day immediately following the last VWAP Trading Day of the related Observation
Period, an aggregate amount in cash and shares of fully paid Common Stock, if applicable,
determined for each VWAP Trading Day of such Observation Period as follows (the “Daily Settlement
Amount”):

     (i) an amount of cash equal to the lesser of: (A) one-sixtieth (1/60) of $1,000 (the
“Daily Principal Return”) and (y) the Daily Conversion Value on such VWAP Trading Day; and

     (ii) if such Daily Conversion Value exceeds the Daily Principal Return, a number of
shares of Common Stock (the “Daily Share Amount”) equal to (A) the difference between such
Daily Conversion
Value and the Daily Principal Return, divided by (B) the Daily VWAP of the Common
Stock for such VWAP Trading Day, subject to the Company’s right to pay cash in lieu of all
or a portion of the Daily Share Amount in accordance with Section 5.04(b).

40

 

The Daily Settlement Amounts shall be determined by the Company promptly following the last VWAP
Trading Day of the Observation Period.

     (b) The Company may elect, subject to the requirements set forth in this clause (b), to
deliver cash in lieu of all or a portion of the Daily Share Amount as set forth above. By the
close of business on the VWAP Trading Day prior to the first Scheduled Trading Day of the
applicable Observation Period, the Company may specify a percentage of each Daily Share Amount that
will be settled in cash (the “Cash Percentage”) and will notify the Holder of such Cash Percentage
through written notice to the Trustee (the “Cash Percentage Notice”). If the Company elects to
specify a Cash Percentage, (i) the amount of cash that the Company will deliver in lieu of all or
an applicable portion of the Daily Share Amount in respect of each VWAP Trading Day in the
applicable Observation Period will equal the product of: (A) the Cash Percentage, (B) the Daily
Share Amount for such Trading Day (assuming for this purpose the Company has not specified a Cash
Percentage), and (C) the Daily VWAP for such VWAP Trading Day and (ii) the number of shares of
Common Stock deliverable in respect of each VWAP Trading Day in the applicable Observation Period
(in lieu of the full Daily Share Amount for such Trading Day) will be based on a percentage of the
Daily Share Amount (assuming the Company has not specified a Cash Percentage) equal to 100% minus
the Cash Percentage. The Company may, at its option, revoke any Cash Percentage Notice through
written notice to the Trustee by the close of business on the VWAP Trading Day prior to the first
Scheduled Trading Day of the applicable Observation Period. If (i) the Company does not specify a
Cash Percentage or (ii) the Company has not obtained the approval of holders of its Common Stock to
issue the full number of shares of its Common Stock that would constitute the Daily Share Amount in
respect of all Notes then Outstanding in accordance with the applicable listing requirements of the
New York Stock Exchange, in each case, by the close of business on the VWAP Trading Day prior to
the first Scheduled Trading Day of the applicable Observation Period, the Company shall settle 100%
of the Daily Share Amount for each VWAP Trading Day in the applicable Observation Period in cash as
if the Company had specified a Cash Percentage of 100%. The Company shall notify Holders through
the Trustee upon obtaining any such stockholder approval.

     (c) Notwithstanding clauses (a) and (b) above, if, following a Make-Whole Fundamental Change,
Notes are surrendered for conversion following the related Effective Date and the Reference
Property consists solely of cash as set forth in Section 5.12, then the Company shall satisfy the
related Conversion Obligations by delivering, on the third Business Day following the Conversion
Date, cash in an amount equal to the Stock Price multiplied by the Conversion Rate then in effect.

     (d) Any cash amounts due upon conversion by a Holder of Notes surrendered for conversion shall
be paid by the Company to such Holder, or such

41

 

Holder’s nominee or nominees. In addition, the
Company shall issue, or shall cause to be issued, any shares of Common Stock due upon conversion to
such Holder, or such Holder’s nominee or nominees, certificates or a book-entry transfer through
the Depositary (together with any cash in lieu of fractional shares).

     (e) Upon conversion, a Holder shall not receive any separate cash payment for accrued and
unpaid interest except as set forth in this clause (e). The Company’s settlement of the Conversion
Obligation as described above shall be deemed to satisfy its obligation to pay the principal amount
of the Note and accrued and unpaid interest to, but not including, the Conversion Date. As a
result, accrued and unpaid interest to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited. Notwithstanding the preceding
sentence, if Notes are converted after 5:00 p.m., New York City time, on a Record Date for the
payment of interest, Holders of such Notes as of 5:00 p.m., New York City time, on the Record Date
shall receive the interest payable on such Notes on the corresponding Interest Payment Date
notwithstanding the conversion. Notes surrendered for conversion during the period from 5:00 p.m.,
New York City time, on any Record Date to 9:00 a.m., New York City time, on the corresponding
Interest Payment Date must be accompanied by payment of an amount equal to the interest payable on
the Notes so converted; provided, however, that no such payment need be made (i) if the Company has
specified a Fundamental Change Purchase Date that is after a Record Date and on or prior to the
corresponding Interest Payment Date; (ii) to the extent of any overdue interest existing at the
time of conversion with respect to such Note; or (iii) with respect to any Conversion Date that
occurs during the period from the close of business on the Record Date immediately preceding the
Stated Maturity Date to the Stated Maturity Date. Except as described above, no payment or
adjustment shall be made for accrued interest on converted Notes.

     Section 5.05. Fractions of Shares. No fractional shares of Common Stock shall be issued
upon conversion of any Note or Notes. If more than one Note shall be surrendered for conversion at
one time by the same Holder, the number of full shares which shall be issuable upon conversion
thereof shall be computed on the basis of the aggregate principal amount of the Notes (or specified
portions thereof) so surrendered. Instead of any fractional share of Common Stock that would
otherwise be issuable upon conversion of any Note or Notes (or specified portions thereof), the
Company shall calculate and pay a cash adjustment in respect of such fraction (calculated to the
nearest 1/100th of a share) in an amount equal to the same fraction of the Daily VWAP of the Common
Stock on the last VWAP Trading Day of the relevant Observation Period.

     Section 5.06. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from
time to time by the Company as follows; provided that the

42

 

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

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

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such dividend or distribution or the effective date of such
share split or combination, as the case may be;

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

     OS1 = the number of shares of Common Stock outstanding (including as a result of
such share split or combination, as the case may be) as of the close of business on the Business
Day prior to the Ex-Date for such dividend or distribution and immediately after giving effect to
such dividend or distribution or immediately after the effective date of such share split or
combination, as the case may be; and

     OS0 = the number of shares of Common Stock outstanding immediately prior to the
close of business on the Business Day prior to the Ex-Date for such dividend or distribution or the
effective date of such share split or combination, as the case may be.

     Such adjustment shall become effective immediately after 5:00 p.m., New York City time, on the
Business Day immediately preceding the Ex-Date fixed for such dividend or distribution, or the
effective date for such share split or share combination. If any dividend or distribution of the
type described in this Section 5.06(a) is declared but not so paid or made, or the outstanding
shares of Common Stock are not split or combined, as the case may be, the Conversion Rate shall be

43

 

immediately readjusted, effective as of the date the Company determines not to pay such dividend or
distribution, or split or combine the outstanding shares of Common Stock, as the case may be, to
the Conversion Rate that would then be in effect if such dividend, distribution, share split or
share combination had not been declared.

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

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such distribution;

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

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

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

     Y = the number of shares of Common Stock equal to the aggregate price payable to exercise such
rights or warrants divided by the average of the Last Reported Sale Prices of Common Stock over the
10 consecutive Trading Day period ending on the Trading Day immediately preceding the Ex-Date for
such distribution.

     Such adjustment shall be successively made whenever any such rights or warrants are
distributed and shall become effective immediately after the opening of business on the Ex-Date for
such distribution. The Company shall not issue any such rights or warrants in respect of shares of
the Common Stock held in treasury by the Company. To the extent that shares of the Common Stock are
not delivered after the expiration of such rights or warrants, the Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect had the adjustments

44

 

made upon the
issuance of such rights or warrants been made on the basis of delivery of only the number of shares
of Common Stock actually delivered. If such rights or warrants are not so issued, the Conversion
Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such Ex-
Date for such distribution had not been fixed.

     In determining whether any rights or warrants entitle the holders to subscribe for or purchase
shares of Common Stock at less than such Last Reported Sale Price, and in determining the aggregate
offering price of such shares of Common Stock, there shall be taken into account any consideration
received by the Company for such rights or warrants and any amount payable on exercise or
conversion thereof, the value of such consideration, if other than cash, to be determined by the
Board of Directors.

     (c) In case the Company shall, by dividend or otherwise, distribute to all or substantially
all holders of its Common Stock shares of any class of Capital Stock of the Company, evidences of
its indebtedness or other assets or property of the Company (including securities, but excluding
(i) dividends or distributions as to which an adjustment was effected pursuant to Section 5.06(a)
or Section 5.06(b), (ii) dividends or distributions paid exclusively in cash, and (iii)
distributions described below in this subsection (c) with respect to Spin-Offs) (any of such shares
of Capital Stock, indebtedness, or other asset or property hereinafter in this subsection (c)
called the “Distributed Property”), then, in each such case the Conversion Rate shall be adjusted
based on the following formula:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such distribution;

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

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

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

45

 

     Such adjustment shall become effective immediately after 5:00 p.m., New York City time, on the
Business Day immediately preceding the Ex-Date for such distribution; provided that if “FMV” as set
forth above is equal to or greater than “SP0” as set forth above, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Holder of Notes has the right
to receive, for each $1,000 principal amount of Notes, the amount of Distributed Property such
Holder would have received had such Holder owned a number of shares of Common Stock equal to the
Conversion Rate on the record date for such distribution, without being required to convert the
Notes. If such distribution is not so paid or made, the Conversion Rate shall again be adjusted to
be the Conversion Rate that would then be in effect if such dividend or distribution had not been
declared. If the Board of Directors determines “FMV” for purposes of this Section 5.06(c) by
reference to the actual or when issued trading market for any securities, it must in doing so
consider the prices in such market over the same period used in computing the Last Reported Sale
Prices of the Common Stock over the ten consecutive Trading Day period ending on the Trading Day
immediately preceding the Ex-Date for such distribution.

     With respect to an adjustment pursuant to this subsection (c) where there has been a payment
of a dividend or other distribution on the Common Stock or shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit of the
Company (a “Spin-Off”), the Conversion Rate shall be increased based on the following formula:

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
last day of the Valuation Period;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the last day of the Valuation Period;

     FMV0 = the average of the Last Reported Sale Prices of the Capital Stock or similar
equity interest distributed to holders of Common Stock applicable to one share of Common Stock over
the first 10 consecutive Trading Day period immediately following, and including, the effective
date of the Spin-Off (such period, the “Valuation Period”); and

     MP0 = the average of the Last Reported Sale Prices of the Common Stock over the
Valuation Period.

46

 

     Such adjustment to the Conversion Rate under the foregoing provisions of this subsection (c)
shall be made immediately after the close of business on the last day of the Valuation Period, with
retroactive effect to the open of business on the effective date for the applicable Spin-Off.

     To the extent that the final day of the related Observation Period occurs during the Valuation
Period the Company shall satisfy the Conversion Obligation on the third Business Day following the
last day of the Valuation Period.

     Rights or warrants distributed by the Company to all holders of Common Stock, entitling the
holders thereof to subscribe for or purchase shares of the Company’s Capital Stock, including
Common Stock (either initially or under certain circumstances), which rights or warrants, until the
occurrence of a specified event or events (“Trigger Event”): (iv) are deemed to be transferred with
such shares of Common Stock; (v) are not exercisable; and (vi) are also issued in respect of future
issuances of Common Stock, shall be deemed not to have been distributed for purposes of this
Section (and no adjustment to the Conversion Rate under this Section shall be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this subsection (c). If any such rights or warrants are subject to events, upon
the occurrence of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the occurrence of any and
each such event shall be deemed to be the date of distribution and record date with respect to new
rights or warrants with such rights (and a termination or expiration of the existing rights or
warrants without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event
(of the type described in the preceding sentence) with respect thereto that was counted for
purposes of calculating a distribution amount for which an adjustment to the Conversion Rate under
this Section was made, (1) in the case of any such rights or warrants that shall all have been
redeemed or repurchased without exercise by any holders thereof, the Conversion Rate shall be
readjusted upon such final redemption or repurchase to give effect to such distribution or Trigger
Event, as the case may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of Common Stock with respect to such rights or
warrants (assuming such holder had retained such rights or warrants), made to all holders of Common
Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or
warrants that shall
have expired or been terminated without exercise by any holders thereof, the Conversion Rate
shall be readjusted as if such rights and warrants had not been issued.

47

 

     For purposes of this subsection (c) and subsections (a) and (b) of this Section 5.06, any
dividend or distribution to which this subsection (c) is applicable that also includes shares of
Common Stock to which subsection (a) of this Section 5.06 applies or rights or warrants to
subscribe for or purchase shares of Common Stock to which subsection (a) or (b) of this Section
5.06 applies (or both), shall be deemed instead to be (1) a dividend or distribution of the
evidences of indebtedness, assets or shares of capital stock other than such shares of Common Stock
or rights or warrants, to which this subsection (c) applies (and any Conversion Rate adjustment
required by this subsection (c) with respect to such dividend or distribution shall then be made)
immediately followed by (2) a dividend or distribution of such shares of Common Stock or such
rights or warrants (and any further Conversion Rate adjustment required by subsections (a) and (b)
of this Section 5.06 with respect to such dividend or distribution shall then be made), except (A)
the Ex-Date of such dividend or distribution shall under this subsection (c) be substituted as “the
Ex-Date” within the meaning of subsection (a) and subsection (b) of this Section 5.06 and (B) any
shares of Common Stock included in such dividend or distribution shall not be deemed “outstanding
immediately prior to the close of business on the Business Day prior to the Ex-Date for such
dividend or distribution or the effective date of such share split or combination, as the case may
be” within the meaning of subsection (a) of this Section 5.06 or “outstanding immediately prior to
the close of business on the Business Day prior to the Ex-Date for such distribution” within the
meaning of subsection (b) of this Section 5.06.

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

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Business Day prior to the Ex-Date for such distribution;

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

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

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

48

 

     Such adjustment shall become effective immediately after 5:00 p.m., New York City time, on the
Business Day immediately preceding the Ex-Date for such dividend or distribution; provided that if
the portion of the cash so distributed
applicable to one share of the Common Stock is equal to or greater than SP0 as set
forth above, in lieu of the foregoing adjustment, adequate provision shall be made so that each
Holder of Notes shall receive on the date on which such cash dividend is distributed to holders of
Common Stock, for each $1,000 principal amount of Notes, the amount of cash such holder would have
received had such Holder owned a number of shares equal to the Conversion Rate on the Ex-Date for
such distribution, without being required to convert the Notes. If such dividend or distribution is
not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.

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

     

     where,

     CR1 = the Conversion Rate in effect immediately after the close of business on the
Trading Day next succeeding the date such tender or exchange offer expires;

     CR0 = the Conversion Rate in effect immediately prior to the close of business on
the Trading Day next succeeding the date such tender or exchange offer expires;

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

     SP1 = the Last Reported Sale Price of Common Stock on the Trading Day next
succeeding the date such tender or exchange offer expires;

     OS1 = the number of shares of Common Stock outstanding immediately after the close
of business on the Business Day prior to the date such tender or

49

 

exchange offer expires (after
giving effect to such tender offer or exchange offer); and

     OS0 = the number of shares of Common Stock outstanding immediately prior to the
close of business on the Business Day prior to the date such tender or exchange offer expires.

     Such adjustment shall become effective, with retroactive effect, immediately on the day such
tender or exchange offer expires. If the Company or its Subsidiary is obligated to purchase shares
of Common Stock pursuant to any such tender or exchange offer, but the Company or its Subsidiary is
permanently
prevented by applicable law from effecting all or any such purchases or all or any portion of
such purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate
that would then be in effect if such tender or exchange offer had not been made or had only been
made in respect of the purchases that had been effected.

     No adjustment to the Conversion Rate shall be made if the application of any of the foregoing
formulas (other than in connection with a share combination) would result in a decrease in the
Conversion Rate.

     For purposes of this Section 5.06 the term “record date” shall mean, with respect to any
dividend, distribution or other transaction or event in which the holders of Common Stock have the
right to receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of shareholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

     (f) For the avoidance of doubt, for purposes of subsections (a), (b), (c), (d) and (e) of this
Section in the event of any reclassification of the Common Stock, as a result of which the Notes
become convertible into more than one class of Common Stock, if an adjustment to the Conversion
Rate is required pursuant to any of subsections (a), (b), (c), (d) or (e) references in those
subsections to one share of Common Stock or Last Reported Sale Price of one share of Common Stock
shall be deemed to refer to a unit or to the price of a unit consisting of the number of shares of
each class of Common Stock into which the Notes are then convertible equal to the numbers of shares
of such class issued in respect of one share of Common Stock in such reclassification. The above
provisions of this paragraph shall similarly apply to successive reclassifications.

     (g) In addition to those required by subsections (a), (b), (c), (d) and (e) of this Section
5.06, and to the extent permitted by applicable law and the rules of The New York Stock Exchange or
any other securities exchange or market in

50

 

which the Common Stock is then listed, the Company from
time to time may increase the Conversion Rate by any amount for a period of at least 20 Business
Days if the Board of Directors determines that such increase would be in the Company’s best
interest. Whenever the Conversion Rate is increased pursuant to the preceding sentence, the Company
shall mail to the Holder of each Note at his last address appearing on the Register provided for in
Section 1.06 a notice of the increase at least 20 Business Days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect. In addition, the Company may also (but is not required
to) increase the Conversion Rate to avoid or diminish any income tax to holders of Common Stock or
rights to purchase Common Stock in connection with any dividend or distribution of shares (or
rights to acquire shares) or similar event.

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

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

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

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

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

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

     (i) All calculations and other determinations under this Article 5 shall be made by the
Company and shall be made to the nearest cent or to the nearest one-ten thousandth (1/10,000) of a
share, as the case may be.

     (j) For purposes of this Section 5.06, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the

51

 

Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.

     (k) With respect to a conversion of Notes pursuant to this Article 5, at and after the close
of business on the each VWAP Trading Day of the relevant Observation Period, the Person in whose
name any certificate representing any shares of Common Stock issuable upon such conversion is
registered shall be treated as a stockholder of record of the Company on each such VWAP Trading Day
in an amount of shares equal to the product of the Daily Share Amount for such VWAP Trading Day and
100% minus the Cash Percentage. A Holder of a Note is not entitled, as such, to any rights of a
holder of Common Stock until, if such Holder converts such Note and is entitled pursuant hereto to
receive shares of Common Stock in respect of such conversion, the close of business on each such
VWAP Trading Day with respect to such amount of shares of Common Stock.

     (l) Whenever any provision of this Article 5 requires a calculation of Last Reported Sale
Prices or Daily VWAP over a span of multiple days, the Company shall make appropriate adjustments
to the Daily Settlement Amount (determined in good faith by the Board of Directors) to account for
any adjustment to the Conversion Rate that becomes effective, or any event requiring an adjustment
to the Conversion Rate where the Ex-Date of the event occurs, at any time during the period from
which such calculation is to be calculated; provided that such adjustments shall only be made to
the Daily Conversion Amounts relating to days prior to the date that the adjustment to the
Conversion Ratio becomes effective.

     Section 5.07. Notice of Adjustments of Conversion Rate. Whenever the Conversion Rate is
adjusted as herein provided:

     (a) the Company shall compute the adjusted Conversion Rate in accordance with Section 5.06 and
shall prepare a certificate signed by the Chief Financial Officer of the Company setting forth the
adjusted Conversion Rate and showing in reasonable detail the facts upon which such adjustment is
based, and such certificate shall promptly be filed with the Trustee and with each Conversion Agent
(if other than the Trustee); and

     (b) upon each such adjustment, a notice stating that the Conversion Rate has been adjusted and
setting forth the adjusted Conversion Rate shall be required, such notice shall be provided by the
Company to all Holders in accordance with Section 1.06.

     Neither the Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate or the information and

52

 

calculations contained therein, except to
exhibit the same to any Holder of Notes desiring inspection thereof at its office during normal
business hours.

     Section 5.08. Company To Reserve Common Stock.

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

     Section 5.09. Taxes on Conversions.

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

     Section 5.10. Certain Covenants.

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

     Section 5.11. Cancellation of Converted Notes.

     All Notes delivered for conversion shall be delivered to the Trustee or its agent and canceled
by the Trustee as provided in Section 2.15.

     Section 5.12. Provision in Case of Effect of Reclassification, Consolidation, Merger or
Sale.

     If there shall be (i) any reclassification or change of the outstanding shares of Common Stock
(other than a change in par value, or from par value to no par value, or from no par value to par
value, or as a result of a split, subdivision or combination), (ii) a consolidation, binding share
exchange, recapitalization, reclassification, merger, combination or other similar event, or (iii)
any sale or conveyance to another Person of all or substantially all of the property and assets

53

 

of
the Company (excluding a pledge of securities issued by any of the Company’s subsidiaries but, for
the avoidance of doubt, not excluding any foreclosure thereon), in any case as a result of which
holders of Common Stock shall be entitled to receive cash, securities or other property or assets
with respect to or in exchange for such Common Stock (any such event described in clauses (i)
through (iii) a “Merger Event”), then:

     (a) the Company or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture permitted under Section 11.01 providing for the conversion and
settlement of the Notes as set forth in this Indenture. Such supplemental indenture shall provide
for adjustments which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Article 5 and the Trustee may conclusively rely on the determination by the
Company of the equivalency of such adjustments. If, in the case of any Merger Event, the Reference
Property includes shares of stock or other securities and assets of a company other than the
successor or purchasing company, as the case may be, in such reclassification, change of control,
consolidation, merger, combination, sale or conveyance, then such supplemental indenture shall also
be executed by such other company and shall contain such additional provisions to protect the
interests of the Holders of the Notes as the Board of Directors shall reasonably consider necessary
by reason of the foregoing, including to the extent required by the Board of Directors and
practicable the provisions providing for the repurchase rights set forth in Article 4.

     In the event a supplemental indenture is executed pursuant to this Section 5.12, the Company
shall promptly file with the Trustee an Officers’ Certificate briefly stating the reasons
therefore, the kind or amount of cash, securities or property or assets that will constitute the
Reference Property after any such Merger Event, any adjustment to be made with respect thereto and
that all conditions precedent have been complied with, and shall promptly mail notice thereof to
all Holders.

     (b) Notwithstanding the provisions of Section 5.04(a), and subject to the provisions of
Section 5.01, at the effective time of such Merger Event, the right to convert each $1,000
principal amount of Notes shall be changed to a right to convert such Notes by reference to the
kind and amount of cash, securities or other property or assets that a holder of a number of shares
of Common Stock equal to the Conversion Rate immediately prior to such transaction would have owned
or been entitled to receive (the “Reference Property”) such that from and after the effective time
of such transaction, a Holder shall be entitled thereafter to convert its Notes into cash and units
of Reference Property based on the Daily Conversion Amounts of such Reference Property, as
described under Section
5.04(a). For purposes of determining the constitution of Reference Property, the type and
amount of consideration that a holder of Common Stock would have

54

 

been entitled to in the case of
reclassifications, consolidations, mergers, sales or conveyance of assets or other transactions
that cause the Common Stock to be converted into the right to receive more than a single type of
consideration (determined based in part upon any form of stockholder election) shall be deemed to
be the (i) weighted average of the types and amounts of consideration received by the holders of
Common Stock that affirmatively make such an election or (ii) if no holders of Common Stock
affirmatively make such election, the types and amounts of consideration actually received by such
holders. The Company shall not become a party to any such transaction unless its terms are
consistent with the preceding. None of the foregoing provisions shall affect the right of a holder
of Notes to convert its Notes in accordance with the provisions of this Article 5 prior to the
effective date.

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

     (d) The above provisions of this Section 5.12 shall similarly apply to successive Merger
Events.

55

 

     Section 5.13. Responsibility of Trustee for Conversion Provisions.

     The Trustee, subject to the provisions of Article 8, and any Conversion Agent shall not at any
time be under any duty or responsibility to any Holder of Notes or to the Company to determine
whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to
the nature or extent of any such adjustment when made, or with respect to the method employed,
herein or in any supplemental indenture provided to be employed, in making the same, or whether a
supplemental indenture need be entered into. Neither the Trustee, subject to the provisions of
Article 8, nor any Conversion Agent shall be accountable with respect to the validity or value (or
the kind or amount) of any Common Stock, or of any other securities or property or cash, which may
at any time be issued or delivered upon the conversion of any Notes; and it or they do not make any
representation with respect thereto. Neither the Trustee, subject to the provisions of Article 8,
nor any Conversion Agent shall be responsible for any failure of the Company to make or calculate
any cash payment or to issue, transfer or deliver any shares of Common Stock or share certificates
or other securities or property or cash upon the surrender of any Note for the purpose of
conversion; and the Trustee, subject to the provisions of Article 8, and any Conversion Agent shall
not be responsible for any failure of the Company to comply with any of the covenants of the
Company contained in this Article 5.

     Section 5.14. Notice to Holders Prior to Certain Actions. Unless a notice has been provided
under Section 5.01(b) or Section 5.01(c), as applicable, in case:

     (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 5.06; or

     (b) the Company shall authorize the granting to the holders of all or substantially all of its
Common Stock of rights or warrants to subscribe for or purchase any share of any class or any other
rights or warrants that would require an adjustment in the Conversion Rate pursuant to Section
5.06; or

     (c) of any reclassification or reorganization of the Common Stock of the Company (other than a
subdivision or combination of its outstanding Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value), or of any consolidation or merger to
which the Company is a party and for which approval of any stockholders of the Company is required,
or of the sale, lease or transfer of all or substantially all of the assets of the Company; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company or
any of its Subsidiaries;

then, in each case, the Company shall cause to be filed with the Trustee and the Conversion Agent
and to be mailed to each Securityholder at such Holder’s address

56

 

 appearing on the list of
Securityholders provided for in Section 9.01 of this Indenture, as promptly as practicable but in
any event at least 20 days prior to the applicable date hereinafter specified, a notice stating (x)
the date on which a record is to be
taken for the purpose of such dividend, distribution or rights or warrants, or, if a record is not
to be taken, the date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (y) the date on which such
reclassification, consolidation, merger, sale, lease, transfer, dissolution, liquidation or winding
up is expected to become effective or occur, and the date as of which it is expected that holders
of Common Stock of record shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer,
dissolution, liquidation or winding up. Failure to give such notice, or any defect therein, shall
not affect the legality or validity of such dividend, distribution, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation or winding up.

     Section 5.15. Stockholder Rights Plan. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 5 shall be entitled to receive the appropriate number of
rights, if any, and the certificates representing the Common Stock issued upon such conversion
shall bear such legends, if any, in each case as may be provided by the terms of any stockholder
rights plan adopted by the Company, as the same may be amended from time to time. If prior to any
conversion, however, such rights have separated from the shares of Common Stock in accordance with
the provisions of the applicable stockholder rights agreement, the Conversion Rate shall be
adjusted at the time of separation as if the Company distributed to all holders of the Common
Stock, shares of the Company’s Capital Stock, evidences of indebtedness, assets, property, rights
or warrants as described in Section 5.06(c), subject to readjustment in the event of the
expiration, termination or redemption of such rights.

     Section 5.16. Company Determination Final. Any determination that the Company or the Board
of Directors must make pursuant to this Article 5 shall be conclusive if made in good faith, absent
manifest error.

     Section 5.17. Exchange in Lieu of Conversion. Notwithstanding anything herein to the
contrary, when a Holder surrenders Notes for conversion, the Company may direct the Conversion
Agent to surrender, prior to the commencement of the applicable Observation Period, such Notes to a
financial institution designated by the Company for exchange in lieu of conversion. In order to
accept any Notes surrendered for conversion, the designated institution must agree to deliver to
the Conversion Agent for delivery to such Holder, in exchange for such Notes to be delivered to
such designated institution by the Conversion Agent, all cash and shares of Common Stock, if any,
or a combination of cash and shares of Common Stock, equal to the consideration otherwise due upon
conversion, as provided under this Article 5 (assuming for this purpose and for the purpose of
determining the related Observation Period that the date such Holder surrenders such Notes for
conversion is the Conversion Date for such

57

 

Notes) at the sole option of the designated institution
and as is designated to the Conversion Agent by the Company. By the close of business on the
Trading Day immediately preceding the start of the Observation Period, the Company will notify the
Holder surrendering Notes for conversion that it has directed the designated financial institution
to make an exchange in lieu of conversion and such designated institution will be required to
notify the Conversion Agent, who will then notify the Holder, whether it will deliver, upon
exchange, all cash or a combination of cash and shares of Common Stock (by specifying a Cash
Percentage as provided under this Article 5).

     If the designated institution accepts any such Notes, it will deliver cash and, if applicable,
the appropriate number of shares of Common Stock to the Conversion Agent on the date such cash and
shares of Common Stock, if any, would otherwise be due as set forth in this Article 5 and the
Conversion Agent will promptly deliver the cash and those shares to Holders. Any Notes exchanged
by the designated institution will remain outstanding. If the designated institution agrees to
accept any Notes for exchange but does not timely deliver the cash consideration, or if such
designated financial institution does not accept the Notes for exchange, the Company shall, no
later than the third Business Day immediately following the last day of the related Observation
Period, convert the Notes into cash and shares of Common Stock, if any, in accordance with this
Article 5 (based on such assumed Conversion Date as described above and the specified Cash
Percentage as described above).

     The Company’s designation of an institution to which the Notes may be submitted for exchange
does not require the institution to accept any Notes. The Company will not pay any consideration
to, or otherwise enter into any agreement with, the designated institution for or with respect to
such designation.

ARTICLE 6

Events of Default; Remedies

     Section 6.01. Events of Default.

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

     (a) default in any payment of interest (including Default Additional Interest, if any, but
excluding the Extension Fee, if any) on any Note when due and payable and the default continues for
a period of 30 days; or

58

 

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

     (c) failure by the Company to comply with its obligation to convert the Notes into cash,
Common Stock or a combination of cash and Common Stock, as applicable, upon exercise of a Holder’s
conversion right and such failure continues for five (5) days; or

     (d) failure by the Company to comply with its obligations under Article 7; or

     (e) default in the performance, or breach of any covenant or agreement by the Company under
this Indenture (other than a covenant or agreement otherwise described as a separate “Event of
Default” hereunder) and continuance of such default or breach by the Company for 60 days after
written notice has been given, by registered or certified mail, to the Company from the Trustee or
to the Company and the Trustee from the Holders of at least 25% principal amount
of the Notes then outstanding which written notice shall specify such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” under this
Indenture; or

     (f) failure by the Company to issue a Fundamental Change Repurchase Right Notice in accordance
with Section 4.01 or comply with its notice requirements under Sections 5.01(b) through (d) when
due; or

     (g) default by the Company or any Subsidiary of the Company with respect to any mortgage,
agreement or other instrument under which there may be outstanding, or by which there may be
secured or evidenced, any debt for money borrowed in excess of $25 million in the aggregate of the
Company and/or any such Subsidiary (other than Securitization Indebtedness), whether such debt now
exists or shall hereafter be created, which default results in (i) such debt becoming or being
declared due and payable and such debt shall not have been rescinded or annulled within 30 days of
such declaration or (ii) from a failure to pay the principal of any such debt when due and payable
at its stated maturity or upon required repurchase and such defaulted payment shall not have been
made, waived or extended within 30 days of such due date or required date of repurchase; provided,
however, that clause (i) shall not apply to any indebtedness of any Subsidiary issued and
outstanding prior to the date such Subsidiary became a Subsidiary of the Company (other than
indebtedness issued in connection with, or in anticipation of, such Subsidiary becoming a
Subsidiary of the Company) if such default arises solely as a result of a change of control
provision applicable to such indebtedness which becomes operative as a result of the acquisition of
such Subsidiary by the Company or any of its existing Subsidiaries; or

59

 

     (h) failure by the Company or any of its Subsidiaries, within 60 days, to pay, bond, post a
letter of credit or otherwise discharge any judgments or orders for the payment of money the total
uninsured amount of which for the Company or any of its Subsidiaries exceeds $25 million, which are
not stayed while on appeal; or

     (i) the Company, pursuant to or within the meaning of any Bankruptcy Law shall (i) commence a
voluntary case, (ii) consent to the entry of an order for relief against it in an involuntary case,
(iii) consent to the appointment of any receiver, trustee, assignee, liquidator or similar official
under any Bankruptcy Law for it or all or substantially all of its property, or (iv) make a general
assignment for the benefit of its creditors; or

     (j) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(i) is for relief against the Company in an involuntary case, (ii) appoints any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law for the Company or for all or
substantially all of its property, or (iii) orders the liquidation of the Company and the order or
decree remains unstayed and in effect for 60 days.

     Section 6.02. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default (other than an Event of Default specified in Section 6.01(i) or Section
6.01(j)) occurs and is continuing, then in every such case (except as provided in the immediately
following paragraph) the Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Notes may
declare the principal of all such Notes to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders), and upon any such declaration
such principal shall become immediately due and payable. If an Event of Default specified in
Section 6.01(i) or Section 6.01(j) with respect to the Company occurs, the principal of, and
accrued interest on, all of the Notes shall become immediately due and payable without any
declaration or other Act of the Holders or any act on the part of the Trustee.

     At any time following an Event of Default and after such a declaration of acceleration has
been made, the Holders of a majority in aggregate principal amount of the Outstanding Securities,
by written notice to the Company and the Trustee, may rescind and annul such declaration and its
consequences (other than with respect to an Event of Default under Sections 6.01(a), 6.01(b),
6.01(c), 6.01(i) or 6.01(j)) if:

     (i) such rescission and annulment will not conflict with any judgment or decree of a
court of competent jurisdiction; and

60

 

     (ii) all Events of Default, other than the non-payment of the principal amount plus
accrued and unpaid interest on Securities that have become due solely by such declaration
of acceleration, have been cured or waived as provided in Section 6.12.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

     Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default specified in Section 6.01(e) relating to the failure by the Company to comply with its
obligations under Section 9.04, shall for the first 180 days after the occurrence of such an Event
of Default consist exclusively of the right to receive an extension fee (“Extension Fee”) on the
Notes at an annual rate equal to 0.50% of the principal amount of the Notes over such portion of
the 180 day period during which time such Event of Default continues. If the Company so elects,
such Extension Fee shall be payable on all Outstanding Notes from and including the date on which
an Event of Default relating to a failure to comply with the obligations under Section 3.09 first
occurs. If such Event of Default has not been cured or waived prior to such 180th calendar day,
then the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Notes
may, in accordance with this Section 6.02, declare the principal of and accrued and unpaid interest
on all such Notes to be due and payable. If the Company elects to pay an Extension Fee as the sole
remedy for an Event of Default specified in Section 6.01(e) relating to the failure by the Company
to comply with its obligations under Section 3.09, the Company shall notify, in the manner provided
for in Section 1.06, the Holders and the Trustee of such election at any time on or before the
close of business on the date on which such Event of Default first occurs. If an Extension Fee is
payable under this Section 6.02, the Company shall deliver to the Trustee a certificate to that
effect stating that an Extension Fee is payable and the date upon which such Extension Fee shall
begin to accrue. Unless and until a Responsible Officer of the Trustee receives at the Corporate
Trust Office such a certificate, the Trustee may assume without inquiry that an Extension Fee is
not payable. If an Extension Fee has been
paid by the Company directly to the persons entitled to it, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.

     Section 6.03. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if a Default is made in the payment of the principal amount and accrued and unpaid
interest at the Maturity thereof or in the payment of the Fundamental Change Repurchase Price in
respect of any Security, 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, and,
in addition thereto, such further amounts required pursuant to Section 6.07.

61

 

     If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy to collect the payment of the principal amount plus accrued but
unpaid interest on the Securities or to enforce the performance of any provision of the Securities
or this Indenture. The Trustee may maintain a proceeding even if the Trustee does not possess any
of the Securities or does not produce any of the Securities in the proceeding. A delay or omission
by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of
Default. No remedy is exclusive of any other remedy. All available remedies are cumulative.

     Section 6.04. Trustee May File Proofs of Claim. In case of any judicial proceeding relative
to the Company (or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take
any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee shall be authorized to
collect and receive any moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any
other amounts due the Trustee under Section 8.07.

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

     Section 6.05. Application of Money Collected. Any money collected by the Trustee pursuant to
this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money to Holders, 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 8.07;

     SECOND: To the payment of the amounts then due and unpaid on the Securities for the
principal amount, Fundamental Change Repurchase
Price or interest, as the case may be, in respect of which or for the benefit of
which such money has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities; and

62

 

     THIRD: To the payment of the remainder, if any, to the Company or any other Person
lawfully entitled thereto.

     Section 6.06. Limitation on Suits. No Holder of any Security shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder (other than in the case of
an Event of Default specified in Section 6.01(a), Section 6.01(b) or Section 6.01(d)), unless:

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

     (ii) the Holders of at least 25% in aggregate principal amount of the Outstanding
Securities shall have made written request to the Trustee to pursue such remedy in its own
name as Trustee hereunder;

     (iii) such Holder or Holders have provided to the Trustee security or indemnity
reasonably satisfactory to the Trustee against the expenses, losses and liabilities to be
incurred in compliance with such request;

     (iv) the Trustee for 60 days after its receipt of such notice, request and provision
of adequate security or indemnity has failed to institute any such proceeding; and

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

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

     Section 6.07. Unconditional Right of Holders To Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder to receive payment of the principal amount,
Fundamental Change Repurchase Price or accrued and unpaid interest in respect of the Securities
held by such Holder, on or after the respective due dates expressed in the Securities or any
Fundamental Change Repurchase Date, as applicable, and to convert the Securities in accordance with
Article 5, or to bring suit for the enforcement of any such payment on or after such respective
dates or the right to convert, shall not be impaired or affected adversely without the consent of
such Holder.

63

 

     Section 6.08. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

     Section 6.09. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 2.12, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     Section 6.10. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to
the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

     Section 6.11. Control by Holders. The Holders of a majority in principal amount of the
Outstanding Securities shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on
the Trustee, provided that:

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

     (ii) the Trustee may refuse to follow any such direction that the Trustee determines
is unduly prejudicial to the rights of any other Holder or that would involve the Trustee
in personal liability.

     Section 6.12. Waiver of Past Defaults. The Holders of not less than a majority in principal
amount of the Outstanding Securities may on behalf of the Holders of all the Securities waive any
past Default hereunder and its consequences, except a Default:

     (i) described in Section 6.01(a), Section 6.01(b), Section 6.01(c), Section 6.01(i),
or Section 6.01(j); or

64

 

     (ii) in respect of a covenant or provision hereof which under Article 11 cannot be
modified or amended without the consent of the Holder of each Outstanding Security
affected.

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

     Section 6.13. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, in either case in respect of the Securities, a court may require any party litigant in
such suit to file an undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees and expenses, against any party litigant in the suit
having due regard to the merits and good faith of the claims or defenses made by the party
litigant; but the provisions of this Section 6.13 shall not apply to any suit instituted by the
Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of the principal amount
on any Security on or after Maturity of such Security or the Fundamental Change Repurchase Price.

     Section 6.14. Waiver of Stay or Extension Laws. The Company covenants (to the extent that it
may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or
interest on the Securities as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenants that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such power as though no
such law had been enacted.

     Section 6.15. Violations of Certain Covenants. A violation of Section 3.06 or any other
covenant or agreement in this Indenture that expressly provides that a violation of such covenant
or agreement shall not constitute an Event of Default may only be enforced by the Trustee by
instituting a legal proceeding against the Company for enforcement of such covenant or agreement.

     Section 6.16. Notice of Default. The Trustee may withhold notice to the Holders of the
Securities of any Event of Default, except defaults in payment of principal amount or interest on
the Securities, if and so long as the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders of the Securities.

65

 

ARTICLE 7

Consolidation, Merger, Conveyance, Transfer or Lease

     Section 7.01. Company May Consolidate, Etc., Only on Certain Terms. The Company shall not
consolidate with or merge with or into any other Person or, transfer all or substantially all its
assets to another Person (excluding a pledge of securities issued by any of the Company’s
subsidiaries), unless:

     (a) the resulting, surviving or transferee person (the “Successor Company”) assumes by
supplemental indenture all of the Company’s obligations under the Notes and this Indenture;
provided, however, that in the event that the Successor Company in any merger, consolidation, or
transfer is not organized and existing under the laws of the United States of America, any state
thereof or the District of Columbia (any such merger, consolidation or transfer, a “Foreign
Jurisdiction Transaction”), (i) the Company shall have delivered to the Trustee
an Opinion of Counsel to the effect that the Holders will not recognize income, gain or loss
for U.S. Federal income tax purposes as a result of such transaction and will be subject to U.S.
Federal income tax on the same amounts and at the same times as would have been the case if such
transaction had not occurred; and (ii) the Company shall have delivered to the Trustee an Opinion
of Counsel in the jurisdiction of the Successor Company to the effect that (A) any payment of
interest, principal, or any other payment or amount delivered under the Notes under or with respect
to the Notes will, after giving effect to such transaction, be exempt from any withholding or
deduction for or on account of any present or future tax, duty, levy, impost, assessment or other
governmental charge of whatever nature imposed or levied by or on behalf of any jurisdiction from
or through which payment is made or in which the payor is organized, resident or engaged in
business for tax purposes and (B) no transfer taxes, stamp taxes, or taxes on income (including
capital gains) will be payable by a Holder of Notes under the laws of any jurisdiction where the
Successor Company is or becomes organized, resident or engaged in business for tax purposes in
respect of the acquisition, ownership or disposition of the Notes, including the receipt of
interest or principal thereon, provided that such Holder does not use or hold, and is not deemed to
use or hold the Notes in carrying on a business in the jurisdiction where the Successor Company is
or becomes organized, resident or engaged in business for tax purposes, provided that the Holder
will not be deemed to use or hold the Notes in carrying on a business in such jurisdiction solely
as a result of the Holder’s ownership of the notes. Thereafter all such obligations of the Company
or such other predecessor corporation shall be terminated. Upon any such consolidation, merger or
transfer, the resulting, surviving or transferee person shall succeed to, and may exercise, every
right and power of the Company under the Securities and under this Indenture;

     (b) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing;

66

 

     (c) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger or transfer and, if a supplemental indenture
is required in connection with such transaction, such supplemental indenture, comply with this
Article 7; and

     (d) other than in connection with a Foreign Jurisdiction Transaction (to which the
requirements of the proviso in clause (a) above shall apply), the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Holders or beneficial owners of the
Securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result
of such transaction and will be subject to U.S. federal income tax in the same amount, in
substantially the same manner and at the same times as would have been the case if the transaction
had not occurred.

     For purposes of the foregoing, the transfer (by assignment, sale or otherwise) of the
properties and assets of one or more Subsidiaries (other than to the Company or another
Subsidiary), which, if such assets were owned by the Company, would constitute all or substantially
all of the properties and assets of the Company and its Subsidiaries, taken as a whole, shall be
deemed to be the transfer of all or substantially all of the properties and assets of the Company.

     The Successor Company formed by such consolidation or into which the Company is merged or the
Successor Company to which such conveyance, transfer, lease or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the Company herein; and
thereafter, except in the case of a conveyance, transfer or lease of all or substantially all the
Company’s assets (in which case the Company will not be discharged from the obligation to pay the
principal amount of the Securities and interest, including any Additional Amounts) and except for
obligations, if any, that the Company may have under a supplemental indenture, the Company shall be
discharged from all obligations and covenants under this Indenture and the Securities. Subject to
Section 11.03, the Company, the Trustee and the Successor Company shall enter into a supplemental
indenture to evidence the succession and substitution of such Successor Company and such discharge
and release of the Company.

ARTICLE 8

The Trustee

     Section 8.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence
of an Event of Default and after the curing of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against the
Trustee. In case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the

67

 

rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent person would exercise or use under
the circumstances in the conduct of his or her own affairs.

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

     (a) prior to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default which may have occurred:

     (i) the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Indenture, and the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this Indenture
and no implied covenants or obligations shall be read into this Indenture against the
Trustee; and

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

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

     (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the written direction of the Holders of not less than a
majority in principal amount of the Securities at the time outstanding determined as provided in
Section 1.04 relating to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this
Indenture;

     (d) whether or not therein provided, every provision of this Indenture relating to the conduct
or affecting the liability of, or affording protection to, the Trustee shall be subject to the
provisions of this Section 8.01;

     (e) the Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to

68

 

payment) or notice effected by the
Company or any other paying agent or any records maintained by any co-registrar with respect to the
Securities; and

     (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to
this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its
failure to receive such notice as reason to act as if no such event occurred.

     None of the provisions contained in this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if there is reasonable ground for
believing that the repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

     Section 8.02. Notice of Defaults. The Trustee shall give the Holders notice of any Default
hereunder within 90 days after the Trustee receives notice thereof; provided, that (except in the
case of any Default in the payment of principal amount or interest on any of the Securities or
Fundamental Change Repurchase Price), the Trustee shall be protected in withholding such notice if
and so long as a committee of Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders of Securities.

     Section 8.03. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
8.01:

     (a) the Trustee may conclusively rely and shall be protected in acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, bond,
debenture, note, coupon or other paper or document (whether in its original or facsimile form)
believed by it in good faith to be genuine and to have been signed or presented by the proper party
or parties;

     (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to
the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the Company;

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

     (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Securityholders pursuant to
the provisions of this Indenture, unless such Securityholders shall have provided to the Trustee
security or indemnity reasonably

69

 

satisfactory to the Trustee against the costs, expenses and
liabilities which may be incurred therein or thereby;

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

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

     (g) 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;

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

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

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

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

     Section 8.04. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Securities (except in the Trustee’s certificate of authentication) shall be taken as the statements
of the Company, and the Trustee or any Authenticating
Agent assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the

70

 

Securities. The
Trustee or any Authenticating Agent shall not be accountable for the use or application by the
Company of any Securities or the proceeds of any Securities authenticated and delivered by the
Trustee or any Authenticating Agent in conformity with the provisions of this Indenture.

     Section 8.05. Trustee, Paying Agents, Conversion Agents or Security Registrar May Own
Securities. The Trustee, any paying agent, any conversion agent or Security Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent, conversion agent or Security Registrar.

     Section 8.06. Monies To Be Held in Trust. Subject to the provisions of Section 10.04, all
monies and properties received by the Trustee shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law. The
Trustee shall have no liability for interest on any money received by it hereunder except as may be
agreed in writing from time to time by the Company and the Trustee.

     Section 8.07. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, such compensation for all
services rendered by it hereunder in any capacity (which shall not be limited by any provision of
law in regard to the compensation of a trustee of an express trust) as mutually agreed to from time
to time in writing between the Company and the Trustee, and the Company will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances reasonably
incurred or made by the Trustee in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or advance as may arise
from its gross negligence, willful misconduct or bad faith. The Company also covenants to
indemnify the Trustee or any predecessor Trustee (and all officers, directors and employees of the
Trustee or any predecessor Trustee), in any capacity under this Indenture and its agents and any
authenticating agent for, and to hold each of them harmless against, any and all loss, damage,
liability, claim or expense, including taxes (other than taxes based upon, measured by or
determined by the income of the Trustee) incurred without gross negligence, willful misconduct or
bad faith on the part of the Trustee or such officer(s), director(s), employee(s) and agent(s) or
authenticating agent, as the case may be, and arising out of or in connection with the acceptance
or administration of this trust or in any other capacity hereunder, including the costs and
expenses of defending themselves against any claim of liability in the premises. The obligations
of the Company under this Section 8.07 to compensate or indemnify the Trustee and to pay or
reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien prior to
that of the Securities upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the Holders of particular Securities. The

71

 

obligation of the
Company under this Section 8.07 shall survive the satisfaction and discharge of this Indenture.

     When the Trustee and its agents and any authenticating agent incur expenses or render services
after an Event of Default specified in Section 6.01(i) or (j) with respect to the Company occurs,
the expenses and the compensation for the services
are intended to constitute expenses of administration under any bankruptcy, insolvency or
similar laws.

     Section 8.08. Officers’ Certificate as Evidence. Except as otherwise provided in Section
8.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence or willful misconduct on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers’ Certificate delivered to the
Trustee.

     Section 8.09. Conflicting Interests of Trustee. If the Trustee has or shall acquire a
conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.

     Section 8.10. Eligibility of Trustee. There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank
holding company system, its bank holding company shall have a combined capital and surplus of at
least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of any supervising or examining authority, then for the purposes of this
Section 8.10 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 8.10,
it shall resign immediately in the manner and with the effect hereinafter specified in this
Article.

     Section 8.11. Resignation or Removal of Trustee.

     (a) The Trustee may at any time resign by giving written notice of such resignation to the
Company and to the Holders of Securities. Upon receiving such notice of resignation, the Company
shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order
of the Board of Directors, one copy of which instrument shall be delivered to the resigning Trustee
and one copy to the successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment 60 days after the mailing of such notice of resignation to the
Securityholders, the resigning Trustee may, upon ten business days’ notice to the

72

 

Company and the
Securityholders, appoint a successor identified in such notice or may petition, at the expense of
the Company, any court of competent jurisdiction for the appointment of a successor trustee, or,
any Securityholder who has been a bona fide Holder of a Security or Securities for at least 6
months may, subject to the provisions of Section 6.13, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

     (b) In case at any time any of the following shall occur:

     (i) the Trustee shall fail to comply with Section 8.09 after written request therefor
by the Company or by any Securityholder who has been a bona fide Holder of a Security or
Securities for at least 6 months; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.10 and shall fail to resign after written request therefor by the Company or by
any such Securityholder; or

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

then, in any such case, the Company may remove the Trustee and appoint a successor trustee by
written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or,
subject to the provisions of Section 6.13, any Securityholder who has been a bona fide Holder of a
Security or Securities for at least 6 months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee; provided, however, that if no successor Trustee shall have been
appointed and have accepted appointment 60 days after either the Company or the Securityholders has
removed the Trustee, the Trustee so removed may petition at the Company’s expense any court of
competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after
such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.

     (c) The Holders of a majority in aggregate principal amount of the Securities at the time
outstanding may at any time remove the Trustee and nominate a successor trustee which shall be
deemed appointed as successor trustee unless, within ten days after notice to the Company of such
nomination, the Company objects thereto, in which case the Trustee so removed or any
Securityholder, or if such Trustee so removed or any Securityholder fails to act, the Company, upon
the terms and conditions and otherwise as in Section 8.11(a) provided, may petition any court of
competent jurisdiction for an appointment of a successor trustee.

73

 

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 8.11 shall become effective upon acceptance of appointment
by the successor trustee as provided in Section 8.12.

     Section 8.12. Acceptance by Successor Trustee. Any successor trustee appointed as provided
in Section 8.11 shall execute, acknowledge and deliver to the Company and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the resignation or
removal of the predecessor trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Company or of the successor trustee, the
trustee ceasing to act shall, upon payment of any amount then due it pursuant to the provisions of
Section 8.07, execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act. Upon request of any such successor trustee,
the Company shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming to such
successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless,
retain a lien upon all property and funds held or collected by such trustee as such, except for
funds held in trust for the benefit of Holders of particular Securities, to secure any amounts then
due it pursuant to the provisions of Section 8.07.

     No successor trustee shall accept appointment as provided in this Section 8.12 unless, at the
time of such acceptance, such successor trustee shall be qualified under the provisions of Section
8.09 and be eligible under the provisions of Section 8.10.

     Upon acceptance of appointment by a successor trustee as provided in this Section 8.12, the
Company (or the former trustee, at the written direction of the Company) shall mail or cause to be
mailed notice of the succession of such trustee hereunder to the Holders of Securities at their
addresses as they shall appear on the Security Register. If the Company fails to mail such notice
within ten days after acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Company.

     Section 8.13. Succession by Merger, Etc. Any corporation into which the Trustee may be
merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the Trustee (including
any trust created by this Indenture), shall be the successor to the Trustee hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that in the case of any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, such corporation shall be qualified under the provisions
of Section 8.09 and eligible under the provisions of Section 8.10.

74

 

     In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Securities shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or
authenticating agent appointed by such predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have been authenticated,
any successor to the Trustee or any authenticating agent appointed by such successor trustee may
authenticate such Securities in the name of the successor trustee; and in all such cases such
certificates shall have the full force that is provided in the Securities or in this Indenture;
provided, however, that the right to adopt the certificate of authentication of any predecessor
Trustee or authenticate Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.

     Section 8.14. Preferential Collection of Claims. If and when the Trustee shall be or become
a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of the claims against the
Company (or any such other obligor).

     Section 8.15. Trustee’s Application for Instructions from the Company. Any application by
the Trustee for written instructions from the Company (other than with regard to any action
proposed to be taken or omitted to be taken by the Trustee that affects the rights of the Holders
of the Securities under this Indenture) 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 shall be taken or such
omission shall be effective. 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, 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 9

Holders’ Lists and Reports by Trustee

     Section 9.01. Company To Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:

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

75

 

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

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar; provided, however, that no such list need be furnished so long as the Trustee
is acting as Security Registrar.

     Section 9.02. Preservation of Information; Communications to Holders.

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

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

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

     Section 9.03. Reports by Trustee.

     (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto. Reports so required
to be transmitted at stated intervals of not more than 12 months shall be transmitted no later than
July 15 of each calendar year, commencing on July 15, 2008. Each such report shall be dated as of
a date not more than 60 days prior to the date of transmission.

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

     Section 9.04. Reports by Company.

     (a) Any information, documents or reports that the Company is required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act shall

76

 

be filed with the Trustee
within 15 days after the same are required (giving effect to any grace period provided by Rule
12b-25) to be filed with the Commission. To the extent any such information, documents and reports
are filed by the Company electronically on the Commission’s Electronic Data Gathering and Retrieval
System (or any successor system), and an automatic e-mail notification thereof to the Trustee is
generated, such information, documents and reports shall be deemed filed with the Trustee.

     (b) Delivery of such reports, information and documents to the Trustee is for informational
purposes only, and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
conclusively rely exclusively on an Officers’ Certificate). It is expressly understood that
materials transmitted electronically by the Company to the Trustee shall be deemed filed with the
Trustee for purposes of this Section 9.04.

ARTICLE 10

Satisfaction and Discharge

     Section 10.01. Discharge of Indenture. When (a) the Company shall deliver to the Trustee for
cancellation all Securities theretofore authenticated (other than any Securities that have been
destroyed, lost or stolen and in lieu of or in substitution for which other Securities shall have
been authenticated and delivered) and not theretofore canceled, or (b) all the Securities not
theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable
(whether at the Stated Maturity Date, or on any Fundamental Change Repurchase Date or upon
conversion or otherwise) and the Company shall deposit with the Trustee, in trust, cash funds and
shares of Common Stock, as applicable, sufficient to pay all amounts due (and shares of Common
Stock deliverable following conversion, if applicable) on all of such Securities (other than any
Securities that shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Securities shall have been authenticated and delivered) not
theretofore canceled or delivered to the Trustee for cancellation, including principal and interest
due, accompanied, except in the event the Securities are due and payable solely in cash upon a
Fundamental Change Repurchase Date, by a verification report as to the sufficiency of the deposited
amount from an independent certified accountant or other financial professional
satisfactory to the Trustee, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company, then this Indenture shall cease to be of further effect
(except as to (i) remaining rights of registration of transfer, substitution and exchange and
conversion of Securities, (ii) rights hereunder of Securityholders to receive payments of principal
of and interest on, the Securities and the other rights, duties and obligations of Securityholders,
as beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee and
(iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written

77

 

demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel as required
by Section 1.02 and at the cost and expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture; the Company, however, hereby agrees to
reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the
Trustee and to compensate the Trustee for any services thereafter reasonably and properly rendered
by the Trustee in connection with this Indenture or the Securities.

     Section 10.02. Deposited Monies To Be Held in Trust by Trustee. Subject to Section 10.04,
all monies deposited with the Trustee pursuant to Section 10.01 shall be held in trust for the sole
benefit of the Securityholders, and such monies shall be applied by the Trustee to the payment,
either directly or through any paying agent (including the Company if acting as its own paying
agent), to the Holders of the particular Securities for the payment of which such monies have been
deposited with the Trustee, of all sums due and to become due thereon for principal and interest.

     Section 10.03. Paying Agent To Repay Monies Held. Upon the satisfaction and discharge of
this Indenture, all monies then held by any paying agent of the Securities (other than the Trustee)
shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon
such paying agent shall be released from all further liability with respect to such monies.

     Section 10.04. Return of Unclaimed Monies. Subject to the requirements of applicable law,
any monies deposited with or paid to the Trustee for payment of the principal of or interest on
Securities and not applied but remaining unclaimed by the Holders of Securities for two years after
the date upon which the principal of or interest on such Securities, as the case may be, shall have
become due and payable, shall be repaid to the Company by the Trustee on demand and all liability
of the Trustee shall thereupon cease with respect to such monies; and the Holder of any of the
Securities shall thereafter look only to the Company for any payment that such Holder may be
entitled to collect unless an applicable abandoned property law designates another Person.

     Section 10.05. Reinstatement. If the Trustee or the paying agent is unable to apply any
money in accordance with Section 10.02 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 10.01 until such time as the Trustee or the
paying agent is permitted to apply all such money in accordance with Section 10.02; provided,
however, that if the Company makes any payment of interest on or principal of any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money held by the Trustee or paying
agent.

78

 

ARTICLE 11

Supplemental Indentures

     Section 11.01. Supplemental Indentures Without Consent of Holders. The Company and the
Trustee may modify or amend this Indenture or the Securities without the consent of any
Securityholder to:

     (i) (x) cure any ambiguity, manifest error or defect or (y) cure any omission or
inconsistency; provided that, in the case of clause (y), the rights of the Holders are not
adversely affected in any material respect;

     (ii) provide for the assumption by a Successor Company of the Company’s obligations
under this Indenture;

     (iii) add guarantees with respect to the Notes;

     (iv) secure the Notes;

     (v) add to the Company’s covenants for the benefit of the Holders or surrender any
right or power conferred upon the Company;

     (vi) provide for the conversion of the Notes in accordance with the terms of this
Indenture;

     (vii) provide for the conversion rights of Holders of Notes and the Company’s
repurchase obligation in connection with a Fundamental Change in accordance with the terms
of this Indenture in the event of any reclassification of the Common Stock, merger or
consolidation, or sale, conveyance, transfer or lease of the Company’s property and assets
substantially as an entirety; or

     (viii) make any change that does not adversely affect the rights of any Holder in any
material respect; provided that, any amendment to conform the terms of this Indenture or
the Notes to the section entitled “Description of Notes” as set forth in the final
offering memorandum related to the Securities dated March 28, 2008 will not be deemed to
be adverse to any Holder.

     Section 11.02. Supplemental Indentures with Consent of Holders. Except as provided below in
this Section 11.02 and in Section 11.01, this Indenture or the Notes may be amended with the
consent of the Holders of at least a majority principal amount of the Notes then outstanding,
including without limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Notes, and, subject to certain exceptions as set forth in this Indenture,
any past default or compliance with any provisions may be waived with the consent of the Holders of
a majority principal amount of the Notes then outstanding, including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for, Notes.

79

 

     Without the written consent or the affirmative vote of each Holder of Outstanding Securities
affected thereby, an amendment, supplement or waiver under this Section 11.02 may not:

     (i) reduce the amount of Notes whose holders must consent to an amendment;

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

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

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

     (v) reduce the Fundamental Change Repurchase Price of any Note or amend or modify in
any manner adverse to the Holders of Notes the Company’s obligation to make such payments,
whether through an amendment or waiver of provisions in the covenants, definitions or
otherwise;

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

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

     (viii) adversely affect the ranking of the Notes as the Company’s senior unsecured
indebtedness; or

     (ix) make any change in the amendment provisions which require each Holder’s consent
or in the waiver provisions.

     It shall not be necessary for any Act of Holders under this Section 11.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Section 11.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 11 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be provided with,
and (subject to Section 8.01) shall be fully protected and indemnified by the Company in relying
upon, in addition to the documents required by Section 1.02, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture. Subject to
the

80

 

preceding sentence, the Trustee shall sign such supplemental indenture if the same does not
adversely affect the Trustee’s own rights, duties or immunities under this Indenture or otherwise
or adversely affect the rights, duties or immunities of the Securityholders under this Indenture or
otherwise. The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture that adversely affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Section 11.04. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 11, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for
all purposes; and every Securityholder theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.

     Section 11.05. [RESERVED].

     Section 11.06. Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 11 shall
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 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.

     Section 11.07. Notice to Holders of Supplemental Indentures. The Company shall cause notice
of the execution of any supplemental indenture to be mailed to each Securityholder, at his address
appearing on the Security Register provided for in this Indenture, within 20 days after execution
thereof. Failure to deliver such notice, or any defect in such notes, shall not affect the legality
or validity of such supplemental indenture.

ARTICLE 12

Miscellaneous

     Section 12.01. When Securities Are Disregarded. In determining whether the Holders of the
required principal amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company or by any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company shall be disregarded and deemed not
to be outstanding, except that, for the purpose of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities which a Responsible
Officer of the Trustee actually knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any such determination.

81

 

     Section 12.02. Rules by Trustee, Paying Agent and Security Registrar. The Trustee may make
reasonable rules for action by, or a meeting of, Holders. The Security Registrar and the Paying
Agent may make reasonable rules for their functions.

     Section 12.03. Successors. All agreements of the Company in this Indenture and the
Securities shall bind their respective successors. All agreements of the Trustee in this Indenture
shall bind its successors.

     Section 12.04. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

     Section 12.05. Calculations. Except as otherwise provided herein, the Company will be
responsible for making all calculations called for under the Indenture and the Securities. The
Company will make all such calculations in good faith and, absent manifest error, its calculations
will be final and binding on Holders. The Company will provide a schedule of its calculations to
each of the Trustee and the Conversion Agent, and each of the Trustee and Conversion Agent is
entitled to rely conclusively upon the accuracy of the Company’s calculations without independent
verification. The Trustee will deliver a copy of such schedule to any Holder upon the request of
such Holder.

     Section 12.06. Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTION
CONTEMPLATED THEREBY.

     Section 12.07. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software or hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

[Remainder of the page intentionally left blank]

82

 

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

	 	 	 	 	 
	 	PHH CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	/s/ Geovanni Barris
 	 
	 	 	Name:  	Geovanni Barris 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

SCHEDULE A

Make-Whole Table

The following table sets forth the number of Additional Shares to be added to the Conversion Rate
per $1,000 principal amount of Securities pursuant to Section 5.02(a) of this Indenture:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Effective Date	 
	Stock Price	 	April 2, 2008	 	 	April 15, 2009	 	 	April 15, 2010	 	 	April 15, 2011	 	 	April 15, 2012	 
	$17.00
	 	 	10.0430	 	 	 	10.0430	 	 	 	10.0430	 	 	 	10.0430	 	 	 	10.0430	 
	$18.50
	 	 	8.6243	 	 	 	8.2734	 	 	 	7.7885	 	 	 	6.9685	 	 	 	5.2736	 
	$20.00
	 	 	7.5008	 	 	 	7.0306	 	 	 	6.3583	 	 	 	5.2038	 	 	 	1.2195	 
	$21.50
	 	 	6.5980	 	 	 	6.0518	 	 	 	5.2634	 	 	 	3.9198	 	 	 	0.0000	 
	$23.00
	 	 	5.8623	 	 	 	5.2704	 	 	 	4.4163	 	 	 	2.9848	 	 	 	0.0000	 
	$24.50
	 	 	5.2550	 	 	 	4.6390	 	 	 	3.7539	 	 	 	2.3030	 	 	 	0.0000	 
	$26.00
	 	 	4.7478	 	 	 	4.1227	 	 	 	3.2308	 	 	 	1.8044	 	 	 	0.0000	 
	$33.50
	 	 	3.1319	 	 	 	2.5652	 	 	 	1.7923	 	 	 	0.7037	 	 	 	0.0000	 
	$41.00
	 	 	2.2915	 	 	 	1.8239	 	 	 	1.2106	 	 	 	0.4206	 	 	 	0.0000	 
	$48.50
	 	 	1.7847	 	 	 	1.4039	 	 	 	0.9169	 	 	 	0.3159	 	 	 	0.0000	 
	$56.00
	 	 	1.4462	 	 	 	1.1338	 	 	 	0.7397	 	 	 	0.2589	 	 	 	0.0000	 
	$63.50
	 	 	1.2034	 	 	 	0.9441	 	 	 	0.6186	 	 	 	0.2197	 	 	 	0.0000	 

 

 

EXHIBIT A

[FORM OF FACE OF GLOBAL SECURITY]

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

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 NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

NEITHER THIS SECURITY NOR THE SHARES OF COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR THE SHARES OF COMMON
STOCK ISSUABLE ON CONVERSION OF THIS SECURITY, NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)) (A
“QUALIFIED INSTITUTIONAL BUYER”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY
OR ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY, PRIOR TO THE EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(d) UNDER THE SECURITIES ACT (OR
ANY SUCCESSOR PROVISION), ONLY (A) TO PHH CORPORATION (THE “ISSUER”), (B) UNDER A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
UNDER RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT

A-1

 

REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A OR (D) UNDER ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY
SUCH OFFER, SALE OR TRANSFER UNDER CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. THIS LEGEND WILL BE REMOVED ON THE EARLIER OF (1) THE FIRST ANNIVERSARY OF THE ISSUE
DATE, (2) THE TRANSFER OF THIS SECURITY UNDER CLAUSE 2(B) ABOVE OR (3) ON ANY TRANSFER OF THIS
SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).]

A-2

 

[FORM OF FACE OF CERTIFICATED SECURITY]

[NEITHER THIS SECURITY NOR ANY SHARES OF COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY SHARES OF COMMON
STOCK ISSUABLE ON CONVERSION OF THIS SECURITY, NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)) (A
“QUALIFIED INSTITUTIONAL BUYER”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY
OR ANY COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING
PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(d) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION), ONLY (A) TO PHH CORPORATION (THE “ISSUER”) OR A SUBSIDIARY THEREOF, (B) UNDER
A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH
CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE UNDER RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A OR (D) UNDER ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER UNDER CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
THIS LEGEND WILL BE REMOVED ON THE EARLIER OF (1) THE FIRST ANNIVERSARY OF THE ISSUE DATE, (2) THE
TRANSFER OF THIS SECURITY UNDER CLAUSE 2(B) ABOVE OR (3) ON ANY TRANSFER OF THIS SECURITY UNDER
RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION).]

A-3

 

PHH CORPORATION

	 	 	 	 	 
	No. ___

	 	$	250,000,000	 

4.00% Convertible Senior Note due 2012

CUSIP No.:

ISIN Number:

     PHH Corporation, a Maryland corporation, promises to pay to [Cede & Co., or its registered
assigns]1, the principal sum of Two Hundred and Fifty Million Dollars, [as revised by
the Schedule of Increases or Decreases in Global Security attached hereto,]2 on April
15, 2012.

     Interest Payment Dates: April 15 and October 15.

     Interest Record Dates: April 1 and October 1.

     Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Security the right to convert
this Security into cash and, if applicable, Common Stock, on the terms and subject to the
limitations referred to on the reverse hereof and as more fully specified in the Indenture. Such
further provisions shall for all purposes have the same effect as though fully set forth at this
place.

     This Security shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

 

			
	1	 	Use bracketed language for a Global Security.
	 
	2	 	Use bracketed language for a Global Security.

A-4

 

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

	 	 	 	 	 
	 	PHH CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

THE BANK OF NEW YORK, as Trustee, certifies

that this Security is one of the Securities described in

the within-named Indenture.

 	 
	Dated:	 	 
	 
	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

A-5

 

	 	 	 	 	 

[FORM OF REVERSE OF NOTE]

PHH CORPORATION

4.00% Convertible Senior Note due 2012

1. Interest

     PHH CORPORATION, a Maryland corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay
interest on the principal amount of this Security at the rate of 4.00% per annum. The Company will
pay interest semiannually on April 15 and October 15 of each year commencing on October 15, 2008.
Interest on the Security will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from April 2, 2008. Interest will be computed on the basis of a
360-day year of twelve 30-day months. If a payment date is not a Business Day, payment will be
made on the next succeeding Business Day, and no additional interest will accrue in respect of such
payment by virtue of the payment being made on such later date. The Company shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal
and premium, if any, from time to time on demand at the rate of interest then in effect; and it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace periods) from time to time
on demand at the same rate to the extent lawful.

2. Paying Agent, Registrar and Conversion Agent

     Initially, The Bank of New York, a New York banking corporation (the “Trustee”), will act as
Paying Agent, Registrar and Conversion Agent. The Company may appoint and change any Paying Agent,
Registrar or co-registrar or Conversion Agent without notice. The Company or any of its
domestically incorporated wholly owned Subsidiaries may act as Paying Agent, Registrar or
co-registrar, or Conversion Agent.

3. Indenture

     The Company issued the Securities under an Indenture dated as of April 2, 2008 (the
“Indenture”), between the Company and the Trustee. Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such
terms, and Securityholders are referred to the Indenture for a statement of those terms.

     This Security is one of the Securities referred to in the Indenture issued in an initial
aggregate principal amount of $250,000,000. Additional Securities may be issued in accordance with
the Indenture. The Indenture also imposes limitations on the ability of the Company to consolidate
or merge with or into any other Person or convey, transfer or lease all or substantially all of the
property of the Company.

4. Conversion

     Upon the occurrence of certain events specified in the Indenture and in compliance with the
provisions of the Indenture, on or prior to the close of business on the third Scheduled Trading
Day immediately preceding the Stated Maturity Date of this Security, the Holder hereof

A-6

 

has the right, at its option, to convert each $1,000 principal amount of this Security into a
combination of cash and Common Stock, determined as set forth in the Indenture, based on an initial
Conversion Rate of 48.7805 shares of Common Stock per $1,000 principal amount of Securities, as the
same may be adjusted pursuant to the terms of the Indenture.

5. Denominations, Transfer, Exchange

     The Securities are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Securityholder may transfer or exchange Securities in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a
Securityholder, among other things, to furnish appropriate endorsements or transfer documents and
to pay any taxes required by law or permitted by the Indenture.

6. Persons Deemed Owners

     The registered Holder of this Security may be treated as the owner of it for all purposes.

7. Defaults and Remedies

     If an Event of Default (other than an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization of the Company or relating to the failure to file certain
reports subject to the provisions of the Indenture) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the outstanding Securities may declare the principal
of and accrued but unpaid interest on all the Securities to be due and payable. If an Event of
Default relating to certain events of bankruptcy, insolvency or reorganization of the Company
occurs, the principal of and interest on all the Securities will become immediately due and payable
without any declaration or other act on the part of the Trustee or any Securityholder.
Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default relating to a failure to file certain reports with the Commission and the Trustee shall for
the first 180 calendar days after such Event of Default consist exclusively of the right to receive
an Extension Fee.

8. No Recourse Against Others

     A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Securities.

9. Authentication

     This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

10. Abbreviations

A-7

 

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

11. GOVERNING LAW

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

12. CUSIP and ISIN Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Securities Identification
Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Securities and has
directed the Trustee to use CUSIP and ISIN numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

     The Company will furnish to any Holder of Securities upon written request and without charge
to the Holder a copy of the Indenture which has in it the text of this Security.

A-8

 

SCHEDULE
OF INCREASES AND DECREASES IN GLOBAL SECURITY3

The following increases or decreases in this Global Security have been made:

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

 

			
	3	 	For Global Securities only.

A-9

 

[FORM OF CONVERSION NOTICE]

To: PHH Corporation

     The undersigned registered owner of this Security hereby irrevocably exercises the option to
convert this Security, or the portion thereof (which is $1,000 or a multiple thereof) below
designated, into, cash and shares of Common Stock of PHH Corporation, if any, in accordance with
the terms of the Indenture referred to in this Security, and directs that the check in payment for
cash and the shares, if any, issuable and deliverable upon such conversion, deliverable upon
conversion or for fractional shares and any Securities representing any unconverted principal
amount hereof, be issued and delivered to the registered Holder hereof unless a different name has
been indicated below. Capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Indenture. If shares or any portion of this Security not converted
are to be issued in the name of a person other than the undersigned, the undersigned will provide
the appropriate information below and pay all transfer taxes payable with respect thereto. Any
amount required to be paid by the undersigned on account of interest accompanies this Security.

Dated:                                          

	 	 	 	 	 
	 	  	
 	 
	 	 	 	 
	 	  	
 	 
	 	 	Signature(s)
	 
	 	 	 	 
	 	 	
Signature(s) must be guaranteed by an
“eligible guarantor institution”
meeting the requirements of the
Registrar, which requirements include
membership or participation in the
Security Transfer Agent Medallion
Program (“STAMP”) or such other
“signature guarantee program” as may
be determined by the Registrar in
addition to, or in substitution for,
STAMP, all in accordance with the
Securities Exchange Act of 1934, as
amended.
 	 
	 	 	 	 
	 	  	
 	 
	 	 	Signature Guarantee
	 

A-10

 

	 	 	 	 	 

     Fill in the registration of shares of Common Stock, if any, if to be issued, and Securities,
if any, to be delivered, and the person to whom cash, if any, and payment for fractional shares, if
any, is to be made, if, other than to and in the name of the registered Holder:

Please print name and address

                                                            

(Name)

                                                            

(Street Address)

                                                            

(City, State and Zip Code)

Principal amount to be converted

 (if less than all, must be $1,000 or whole multiples thereof):

$                                                           

Social Security or Other Taxpayer

 Identification Number:

                                                            

NOTICE: The signature on this Conversion Notice must correspond with the name as written upon the
face of the Securities in every particular without alteration or enlargement or any change
whatever.

A-11

 

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

To: PHH Corporation

The undersigned registered owner of this Security hereby acknowledges receipt of a notice from PHH
Corporation (the “Company”) as to the occurrence of a Fundamental Change with respect to the
Company and specifying the Fundamental Change Repurchase Date and requests and instructs the
Company to repay to the registered holder hereof in accordance with the applicable provisions of
the Indenture referred to in this Security (1) the entire principal amount of this Security, or the
portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated,
and (2) if such Fundamental Change Repurchase Date does not fall during the period after a Record
Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest
thereon to, but excluding, such Fundamental Change Repurchase Date.

In the case of Physical Securities, the certificate numbers of the Securities to be repurchased are
as set forth below:

Dated: 

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Signature(s) 	 
	 	 	 
	 	  	
 	 
	 	 	Social Security or Other Taxpayer Identification Number

principal amount to be repaid (if less than all):
$______,000

NOTICE:  The signature on the Fundamental Change
Repurchase Notice must correspond with the name as
written upon the face of the Security in every
particular without alteration or enlargement or any
change whatever. 	 

A-12

 

	 	 	 	 	 

[FORM OF ASSIGNMENT AND TRANSFER]

For value received      
                  
                  
hereby sell(s), assign(s) and transfer(s) unto          
                 
              
 
(Please insert social security or Taxpayer Identification Number of assignee) the
within Security, and hereby irrevocably constitutes and appoints      
                 
                  
                 
     attorney to
transfer the said Security on the books of the Company, with full power of substitution in the
premises.

Dated:                                          

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	 
	 	 	 
	 	  	Signature(s)
 	 
	 	 	 	 
	 	 	
Signature(s) must be guaranteed
by an institution which is a member of one of
the following recognized signature Guarantee
Programs:

(i) The Securities Transfer Agent Medallion
Program (STAMP); (ii) The New York Stock
Exchange Medallion Program (MNSP); (iii) The
Stock Exchange Medallion Program (SEMP) or
(iv) another guarantee program acceptable to
the Trustee.
 	 
	 	 	 
	 	  	
 	 
	 	 	 
	 	 	 
	 	  	Signature Guarantee
 	 

A-13

 

	 	 	 	 	 

EXHIBIT B

[FORM OF RESTRICTIVE LEGEND FOR COMMON STOCK ISSUED UPON CONVERSION]

[THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY, NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS
SECURITY, BY ITS ACCEPTANCE HEREOF, (1) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY,
PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE
144(d) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO PHH CORPORATION (THE
“ISSUER”), (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER) OR (C) UNDER ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER UNDER CLAUSE (C) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY
TO EACH OF THEM; AND (2) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED ON THE
EARLIER OF (1) THE FIRST ANNIVERSARY OF THE ISSUE DATE, (2) THE TRANSFER OF THIS SECURITY UNDER
CLAUSE 1(B) ABOVE OR (3) ON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT
(OR ANY SUCCESSOR PROVISION).]

B-1

 

Exhibit 4.2

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

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 NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

NEITHER THIS SECURITY NOR THE SHARES OF COMMON STOCK ISSUABLE ON CONVERSION OF THIS SECURITY HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR THE SHARES OF COMMON
STOCK ISSUABLE ON CONVERSION OF THIS SECURITY, NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH
REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)) (A
“QUALIFIED INSTITUTIONAL BUYER”); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY
OR ANY COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY, PRIOR TO THE EXPIRATION OF THE
HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(d) UNDER THE SECURITIES ACT (OR
ANY SUCCESSOR PROVISION), ONLY (A) TO PHH CORPORATION (THE “ISSUER”), (B) UNDER A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
UNDER RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A OR (D) UNDER ANOTHER AVAILABLE

 

 

EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER UNDER CLAUSE (D) TO REQUIRE THE DELIVERY
OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND
(3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED ON THE EARLIER OF (1) THE
FIRST ANNIVERSARY OF THE ISSUE DATE, (2) THE TRANSFER OF THIS SECURITY UNDER CLAUSE 2(B) ABOVE OR
(3) ON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION).

 

 

PHH CORPORATION

	 	 
	No. 1

	$250,000,000     

4.00% Convertible Senior Note due 2012

CUSIP No.: 693320 AG8

ISIN Number: US693320AG80

     PHH Corporation, a Maryland corporation, promises to pay to Cede & Co., or its registered
assigns, the principal sum of Two Hundred and Fifty Million Dollars, as revised by the Schedule of
Increases or Decreases in Global Security attached hereto, on April 15, 2012.

     Interest Payment Dates: April 15 and October 15.

     Interest Record Dates: April 1 and October 1.

     Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder of this Security the right to convert
this Security into cash and, if applicable, Common Stock, on the terms and subject to the
limitations referred to on the reverse hereof and as more fully specified in the Indenture. Such
further provisions shall for all purposes have the same effect as though fully set forth at this
place.

     This Security shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

 

 

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

	 	 	 	 	 
	 	PHH CORPORATION

 	 
	 	By:  	/s/ Mark E. Johnson
 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Vice President & Treasurer 	 
	 

	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
THE BANK OF NEW YORK, as Trustee, certifies
that this Security is one of the Securities described in
the within-named Indenture.

Dated: 4/2/2008

 	 	 
	By:  	/s/ Geovanni Barris
 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

PHH CORPORATION

4.00% Convertible Senior Note due 2012

	1.	 	Interest

     PHH CORPORATION, a Maryland corporation (such corporation, and its successors and assigns
under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay
interest on the principal amount of this Security at the rate of 4.00% per annum. The Company will
pay interest semiannually on April 15 and October 15 of each year commencing on October 15, 2008.
Interest on the Security will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from April 2, 2008. Interest will be computed on the basis of a
360-day year of twelve 30-day months. If a payment date is not a Business Day, payment will be
made on the next succeeding Business Day, and no additional interest will accrue in respect of such
payment by virtue of the payment being made on such later date. The Company shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal
and premium, if any, from time to time on demand at the rate of interest then in effect; and it
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace periods) from time to time
on demand at the same rate to the extent lawful.

	2.	 	Paying Agent, Registrar and Conversion Agent

     Initially, The Bank of New York, a New York banking corporation (the “Trustee”), will act as
Paying Agent, Registrar and Conversion Agent. The Company may appoint and change any Paying Agent,
Registrar or co-registrar or Conversion Agent without notice. The Company or any of its
domestically incorporated wholly owned Subsidiaries may act as Paying Agent, Registrar or
co-registrar, or Conversion Agent.

	3.	 	Indenture

     The Company issued the Securities under an Indenture dated as of April 2, 2008 (the
“Indenture”), between the Company and the Trustee. Terms defined in the Indenture and not defined
herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such
terms, and Securityholders are referred to the Indenture for a statement of those terms.

     This Security is one of the Securities referred to in the Indenture issued in an initial
aggregate principal amount of $250,000,000. Additional Securities may be issued in accordance with
the Indenture. The Indenture also imposes limitations on the ability of the Company to consolidate
or merge with or into any other Person or convey, transfer or lease all or substantially all of the
property of the Company.

	4.	 	Conversion

     Upon the occurrence of certain events specified in the Indenture and in compliance with the
provisions of the Indenture, on or prior to the close of business on the third Scheduled Trading
Day immediately preceding the Stated Maturity Date of this Security, the Holder hereof has the
right, at its option, to convert each $1,000 principal amount of this Security into a combination
of cash and Common Stock, determined as set forth in the Indenture, based on an

 

 

initial Conversion Rate of 48.7805 shares of Common Stock per $1,000 principal amount of
Securities, as the same may be adjusted pursuant to the terms of the Indenture.

	5.	 	Denominations, Transfer, Exchange

     The Securities are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. A Securityholder may transfer or exchange Securities in accordance with the
Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a
Securityholder, among other things, to furnish appropriate endorsements or transfer documents and
to pay any taxes required by law or permitted by the Indenture.

	6.	 	Persons Deemed Owners

     The registered Holder of this Security may be treated as the owner of it for all purposes.

	7.	 	Defaults and Remedies

     If an Event of Default (other than an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization of the Company or relating to the failure to file certain
reports subject to the provisions of the Indenture) occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the outstanding Securities may declare the principal
of and accrued but unpaid interest on all the Securities to be due and payable. If an Event of
Default relating to certain events of bankruptcy, insolvency or reorganization of the Company
occurs, the principal of and interest on all the Securities will become immediately due and payable
without any declaration or other act on the part of the Trustee or any Securityholder.
Notwithstanding the foregoing, at the election of the Company, the sole remedy for an Event of
Default relating to a failure to file certain reports with the Commission and the Trustee shall for
the first 180 calendar days after such Event of Default consist exclusively of the right to receive
an Extension Fee.

	8.	 	No Recourse Against Others

     A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Securityholder waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Securities.

	9.	 	Authentication

     This Security shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Security.

	10.	 	Abbreviations

     Customary abbreviations may be used in the name of a Securityholder or an assignee, such as
TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint

 

 

tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act).

	11.	 	GOVERNING LAW

     THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

	12.	 	CUSIP and ISIN Numbers

     Pursuant to a recommendation promulgated by the Committee on Uniform Securities Identification
Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Securities and has
directed the Trustee to use CUSIP and ISIN numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

     The Company will furnish to any Holder of Securities upon written request and without charge
to the Holder a copy of the Indenture which has in it the text of this Security.

 

 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

     The following increases or decreases in this Global Security have been made:

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

 

 

FORM OF CONVERSION NOTICE

To: PHH Corporation

     The undersigned registered owner of this Security hereby irrevocably exercises the option to
convert this Security, or the portion thereof (which is $1,000 or a multiple thereof) below
designated, into, cash and shares of Common Stock of PHH Corporation, if any, in accordance with
the terms of the Indenture referred to in this Security, and directs that the check in payment for
cash and the shares, if any, issuable and deliverable upon such conversion, deliverable upon
conversion or for fractional shares and any Securities representing any unconverted principal
amount hereof, be issued and delivered to the registered Holder hereof unless a different name has
been indicated below. Capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Indenture. If shares or any portion of this Security not converted
are to be issued in the name of a person other than the undersigned, the undersigned will provide
the appropriate information below and pay all transfer taxes payable with respect thereto. Any
amount required to be paid by the undersigned on account of interest accompanies this Security.

Dated: ______________________

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	 	 
	 
	 	

Signature(s)
 	 
	 

	 	
Signature(s) must be guaranteed by an
“eligible guarantor institution”
meeting the requirements of the
Registrar, which requirements include
membership or participation in the
Security Transfer Agent Medallion
Program (“STAMP”) or such other
“signature guarantee program” as may
be determined by the Registrar in
addition to, or in substitution for,
STAMP, all in accordance with the
Securities Exchange Act of 1934, as
amended.

 	 
	 

	 	

Signature Guarantee 	 
	 

 

 

     Fill in the registration of shares of Common Stock, if any, if to be issued, and Securities,
if any, to be delivered, and the person to whom cash, if any, and payment for fractional shares, if
any, is to be made, if, other than to and in the name of the registered Holder:

Please print name and address

_______________________________________

(Name)

_______________________________________

(Street Address)

_______________________________________

(City, State and Zip Code)

Principal amount to be converted
(if less than all, must be $1,000 or whole multiples thereof):

$______________________________________

Social Security or Other Taxpayer

     Identification Number:

_______________________________________

NOTICE: The signature on this Conversion Notice must correspond with the name as written upon the
face of the Securities in every particular without alteration or enlargement or any change
whatever.

 

 

FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE

To: PHH Corporation

The undersigned registered owner of this Security hereby acknowledges receipt of a notice from PHH
Corporation (the “Company”) as to the occurrence of a Fundamental Change with respect to the
Company and specifying the Fundamental Change Repurchase Date and requests and instructs the
Company to repay to the registered holder hereof in accordance with the applicable provisions of
the Indenture referred to in this Security (1) the entire principal amount of this Security, or the
portion thereof (that is $1,000 principal amount or an integral multiple thereof) below designated,
and (2) if such Fundamental Change Repurchase Date does not fall during the period after a Record
Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest
thereon to, but excluding, such Fundamental Change Repurchase Date.

In the case of Physical Securities, the certificate numbers of the Securities to be repurchased are
as set forth below:

	 
	Dated:                                                             

	 	 	 	 	 
	 	
Signature(s)
	 
	 
	 	
Social Security or Other Taxpayer Identification Number

 	 
	 	
principal amount to be repaid (if less than all): 

$_______,000

NOTICE: The signature on the Fundamental Change
Repurchase Notice must correspond with the name as
written upon the face of the Security in every
particular without alteration or enlargement or any
change whatever.

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

FORM OF ASSIGNMENT AND TRANSFER

For value received ___________________________ hereby sell(s), assign(s) and transfer(s) unto
_____________________ (Please insert social security or Taxpayer Identification Number of assignee) the
within Security, and hereby irrevocably constitutes and appoints __________ _______________ attorney to
transfer the said Security on the books of the Company, with full power of substitution in the
premises.

Dated: ________________________

	 	 	 	 	 
	 	

 	 
	 	
Signature(s)

 	 
	 	

Signature(s) must be guaranteed by an institution which is a member of one of
the following recognized signature Guarantee
Programs:

(i) The Securities Transfer Agent Medallion
Program (STAMP); (ii) The New York Stock
Exchange Medallion Program (MNSP); (iii) The
Stock Exchange Medallion Program (SEMP) or
(iv) another guarantee program acceptable to
the Trustee.

 	 
	 	

 	 
	 	
Signature Guarantee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]