Document:

exv10w2

 

Exhibit 10.2

SEPARATION AGREEMENT AND RELEASE 

     This Separation Agreement and Release (the “Agreement”) is entered into between ZipRealty,
Inc. (the “Company”), on the one hand and Gary M. Beasley (the “Executive”) on the other hand with
reference to the following facts:

WHEREAS:

     Executive was employed by the Company.

     On or about May 2, 2006 Executive and Company entered into an Employment Agreement.

     On or about May 5, 2006 Executive and Company entered into an Executive Proprietary
Information Agreement (the “Confidentiality Agreement”).

     Company and Executive have entered into stock option agreements dated December 14, 2001, March
6, 2002, March 29, 2004, December 16, 2004, January 3, 2006 and May 2, 2006 (collectively, the
“Stock Option Agreements”), granting Executive the option to purchase shares of the Company’s
common stock (collectively, the “Options”) subject to the terms and conditions of the Company’s
1999 Stock Plan (the “1999 Plan”) and 2004 Equity Incentive Plan (the “2004 Plan” and together with
the 1999 Plan, the “Plans”), as applicable, and the Stock Option Agreements.

     Executive resigned from his position with the Company on or about January 5, 2007 (the
“Termination Date”).

COVENANTS

     It therefore is agreed by and between the undersigned as follows:

     1. Each of the undersigned executes and enters into this Agreement in consideration of each
and all of the agreements made and undertaken by each of the undersigned as follows:

     (a) The Parties agree that for purposes of determining the number of shares of the Company’s
common stock which Executive is entitled to purchase from the Company, pursuant to the exercise of
outstanding options, the Executive will be considered to have vested only up to the Termination
Date. Executive acknowledges that as of the Termination Date, he will have vested in options for
267,249 shares, as set forth in Exhibit A.

     (b) Subject to any earlier termination of the Options that may be required by

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 1
of 7

 

 

Section 12(c) of the 1999 Plan or Section 13(c) of the 2004 Plan, as applicable, Executive
shall be permitted an extension of time to exercise all vested Options through December 31, 2007.

     (c) Beyond the amendments to the Options as provided for in subsection (b), the Options will
remain subject to the terms and conditions of the Plans under which they were granted and the Stock
Option Agreements.

     (d) Company agrees to pay Executive $10,000 per calendar month for a period of twelve months
beginning January 2007. Such payment shall be made via direct deposit or other manner agreed by
the parties and shall be paid by the last day of each month such that all payments have been paid
by December 31, 2007. The payment for January 2007 shall be paid within three business days of the
Effective Date of this Agreement. In exchange for this payment, Executive agrees to provide
continued consultation to the Company for a period of twenty-four months beginning February 1,
2007, relating to the Company’s involvement in the following litigation matters: The United States
Department of Justice v. National Association of Realtors Civil Action No. 05C5140 and ZipRealty
Inc. v. Squire, Sanders & Dempsey, LLP, et. al. Case No. CGC 06 450765 (the “Litigation”).
Specifically, Executive agrees to provide full cooperation to the Company relating to the
Litigation by making himself reasonably available to Company and its counsel to respond to
questions from Company employees and counsel, review information on behalf of Company or its
counsel, provide information to assist the Company and its counsel in responding to discovery
requests and preparing for depositions and trial, and to provide statements and/or testimony as
necessary (the “Litigation Consulting Services”). Executive shall be reimbursed for any reasonable
expenses, such as travel or parking, incurred in the course of providing such consultation for the
Litigation. Executive acknowledges that this payment is not intended to compensate him for
testimony, which at all times must be truthful and accurate, but for time spent consulting.
Executive and Company agree that the Litigation Consulting Services will not conflict with
Executive’s other employment, consulting or professional obligations. Executive understands and
agrees that he is not acting as a Company employee or service provider in providing the Litigation
Consulting Services.

     (e) Upon the final date of Executive’s employment with Company, he was paid all accrued,
unused vacation and, shortly thereafter, his 2006 Bonus. Executive acknowledges and agrees that by
these payments, he received from Company each and all of the employment benefits, compensation,
wages, vacation pay, and other monies due and owing to him from Company, except as provided herein.

     (f) Executive’s health insurance benefits ceased on the Termination Date, subject to
Executive’s right to continue his health insurance under COBRA. Executive’s participation in all
other benefits and incidents of employment ceased on the Termination Date. Executive ceased
accruing Executive benefits, including but not limited to, vacation time and paid time off, as of
the Termination Date.

     (g) Executive shall continue to maintain the confidentiality of all confidential and
proprietary information of the Company and shall continue to comply with the terms

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 2
of 7

 

 

and conditions of the Confidentiality Agreement between Executive and the Company. Executive
has returned all of the Company’s property and confidential and proprietary information in his
possession to the Company. By signing this Agreement, Executive represents and declares under
penalty of perjury under the laws of the state of California that he has returned all Company
property.

     2. Executive and Company agree that the foregoing consideration represents settlement in full
of all outstanding obligations owed to Executive by the Company and its owners, related entities,
officers, directors, employees, agents, representatives and shareholders (collectively the “Company
Releasees”) and owed to the Company Releasees by the Executive. Executive, on his own behalf, and
on behalf of his respective heirs, family members, executors, agents, assigns (collectively the
“Executive Releasees”), does hereby fully and forever release and discharge the Company Releasees
and Company Releasees do hereby fully and forever release and discharge the Executive Releasees of
and from, and agree not to sue concerning any claim, duty, obligation or cause of action relating
to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that
either Executive Releasees or Company Releasees may possess arising from any omissions, acts or
facts that have occurred up until and including the Effective Date of this Agreement, including
without limitation:

	 	a)	 	any and all claims relating to or arising from
Executive’s employment relationship;
	 
	 	b)	 	any and all claims relating to, or arising from,
Executive’s right to purchase, or actual purchase of shares of stock of the
Company, including, without limitation, any claims for fraud
misrepresentation, breach of fiduciary duty, breach of duty under
applicable state corporate law, and securities fraud under any state or
federal law;
	 
	 	c)	 	any and all claims under the law of any jurisdiction
including, but not limited to, breach of fiduciary duty, wrongful discharge
of employment, constructive discharge from employment, termination in
violation of public policy, discrimination, harassment, retaliation, breach
of contract, both express and implied, breach of the covenant of good faith
and fair dealing, both express and implied; promissory estoppel, negligent
and intentional infliction of emotional distress, negligent and intentional
misrepresentation, negligent and intentional interference with prospective
economic advantage, unfair business practices, defamation, libel, slander,
negligence, personal injury, fraud, misrepresentation, assault, battery
invasion of privacy, false imprisonment and conversion;
	 
	 	d)	 	any and all claims for violation of any federal, state
or municipal statute, including, but not limited to, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act of 1967, the Americans with Disabilities Act of 1990, the
Fair Labor Standards Act, the Executive Retirement

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 3
of 7

 

 

	 	 	 	Income Security Act of 1974, the Worker Adjustment Retraining and
Notification Act, the Older Workers Benefit Protection Act; the California
Fair Employment and Housing Act, the California Labor Code;
	 
	 	e)	 	any and all claims for violation of the federal or any
state constitution;
	 
	 	f)	 	any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination;
	 
	 	g)	 	any claim for any loss, cost, damage, or expense
arising out of any dispute over the non-withholding or other tax treatment
of the proceeds received by Executive as a result of this Agreement; and
	 
	 	h)	 	any and all claims for attorneys’ fees and costs.

The Company and Executive agree that the release set forth in this section shall be and remain in
effect in all respects as a complete general release as to the matters released. This release does
not extend to any rights of defense against and/or indemnification from claims by third parties
arising from Executive’s performance of his duties while employed by the Company; any rights
arising with respect to his vested shares or options; or any obligations incurred under this
Agreement. Further, this release does not waive any rights or claims that may arise after the
Effective Date of the Agreement and does not restrict Executive’s right to challenge the validity
of this Agreement. Nor does this Agreement waive rights or claims that cannot be waived by
agreement under state or federal law.

     3. Executive and Company represent that each party is not aware of any claim by him or it
other than the claims that are released by this Agreement. Executive and Company acknowledge that
he/it has been advised by legal counsel and is familiar with the provisions of California Civil
Code Section 1542, which provides as follows

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS/HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT
WITH THE DEBTOR.

     Executive and Company, being aware of said code section, agree to expressly waive any
rights he/it may have under the above principal or any statute or common law principals of similar
effect.

     4. Executive acknowledges that he is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing
and voluntary. Executive and the Company agree that this waiver and release does not apply to any
rights or claims that may arise under the ADEA after the Effective Date of this Agreement.
Executive acknowledges that the consideration given for this waiver and release Agreement is in
addition to anything of

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 4
of 7

 

 

value to which Executive was already entitled. Executive further acknowledges that he has
been advised in writing that:

	 	a)	 	he should consult with an attorney prior to executing
this Agreement;
	 
	 	b)	 	he has up to twenty-one (21) days within which to
consider this Agreement;
	 
	 	c)	 	he has seven (7) days following his execution of this
Agreement to revoke the Agreement;
	 
	 	d)	 	this Agreement shall not be effective until the
revocation period has expired; and
	 
	 	e)	 	nothing in this Agreement prevents or precludes
Executive from challenging or seeking a determination in good faith of the
validity of this waiver under the ADEA, nor does it impose any condition
precedent, penalties or costs from doing so, unless specifically authorized
by federal law.

     Each of the undersigned agrees that none of the releases set forth herein releases any claims
arising out of obligations set forth in this Agreement.

     5. This Agreement is effective after it has been signed by both parties and after (8) days
have passed since Executive signed the Agreement (the “Effective Date”).

     6. The Parties agree that any and all disputes arising out of the terms of this Agreement,
their interpretation, and any of the matters herein released, shall be subject to binding
arbitration in Alameda County, California before the American Arbitration Association under its
National Rules for the Resolution of Employment Disputes of California Code of Civil Procedure. In
the event of any legal action relating to or arising out of this Agreement, the prevailing party
shall be entitled to recover from the losing party its attorneys’ fees and costs incurred in that
action to the extent permissible by law. The parties agree that the prevailing party in any
arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to
enforce the arbitration award. The Parties hereby agree to waive their right to have any dispute
between them resolved in a court of law by a judge or jury. This paragraph will not prevent either
party from seeking injunctive relief (or any other provisional remedy) from any court having
jurisdiction over the Parties and the subject matter of their dispute relating to Executive’s
obligations under this Agreement.

     7. If any provision of this Agreement or the application thereof is held invalid, the
invalidity shall not affect other provisions or application of the Agreement which can be given
effect without the invalid provisions or application and to this end the provisions of this
Agreement are declared to be severable.

     8. The Company makes no representations or warranties with respect to the

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 5
of 7

 

 

tax consequences of the payment of any sums to Executive under the terms of Section 1 of this
Agreement. Executive agrees and understands that he is responsible for payment, if any, of local,
state and/or federal taxes on the sums paid hereunder by the Company and any penalties or
assessments thereon. Executive further agrees to indemnify and hold the Company harmless from any
claims, demands, deficiencies, penalties, assessments, executions, judgments, or recoveries by any
government agency against the Company for any amounts claimed due on account of Executive’s failure
to pay federal or state taxes or damages sustained by the Company by reason of any such claims,
including reasonable attorneys’ fees.

     9. This Agreement contains the entire agreement of the undersigned with respect to the matters
covered by this Agreement and no promise made by any party or by an officer, attorney, or agent of
any party that is not expressly contained in this Agreement shall be binding or valid. This
Agreement supersedes any prior agreement between the parties with the exception of the
Confidentiality Agreement, the Plans and the Stock Option Agreements. Additionally, any
modification of any provision of this Agreement, to be effective, must be in writing and signed by
both parties.

     10. This Agreement shall be governed by and construed under the laws of the State of
California.

     11. This Agreement may be executed by facsimile and in counterparts, and the counterparts,
taken together, shall constitute the original.

     12. Each of the undersigned executing this Agreement on behalf of a party represents and
warrants that he or she is a duly appointed agent or duly elected officer of the party and is fully
authorized to execute this Agreement on that party’s behalf.

     13. Each party to this Agreement has consulted with, or had the opportunity to consult with,
legal and tax counsel concerning all paragraphs of this Agreement. Each party has read the
Agreement and has been fully advised by legal counsel with respect to the rights and obligations
under the Agreement, or has had the opportunity to obtain such advice. Each party is fully aware
of the intent and legal effect of the Agreement, and has not been influenced to any extent
whatsoever by any representation or consideration other than as stated herein. After consultation
with and advice from, or the opportunity for consultation with and advice from, legal counsel, each
party voluntarily enters into this Agreement.

	 	 	 	 	 	 	 
	DATED: February 1, 2007	 	/s/ Gary M. Beasley	 	 
	 	 	 	 	 
	 	 	Gary M. Beasley	 	 
	 
	 	 	 	 	 	 
	DATED: February 2, 2007	 	ZipRealty, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard F. Sommer	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Richard F. Sommer	 	 
	 

	 	 	 	Chief Executive Officer	 	 

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 6
of 7

 

 

EXHIBIT A

Beasley
– ZipRealty, Inc.

Separation Agreement and Release

Page 7
of 7exv4w1

 

Exhibit 4.1

 

BORLAND SOFTWARE CORPORATION

as Issuer

AND

U.S. Bank National Association

as Trustee

 

Indenture

Dated as of February 6, 2007

 

2.75% Convertible Senior Notes due 2012

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 
	ARTICLE 1
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Compliance Certificates and Opinions
	 	 	14	 
	Section 1.03. Form of Documents Delivered to Trustee
	 	 	14	 
	Section 1.04. Acts of Holders; Record Dates
	 	 	15	 
	Section 1.05. Notices, Etc., to Trustee and Company
	 	 	16	 
	Section 1.06. Notice to Holders; Waiver
	 	 	16	 
	Section 1.07. Conflict with Trust Indenture Act
	 	 	17	 
	Section 1.08. Effect of Headings and Table of Contents
	 	 	17	 
	Section 1.09. Successors and Assigns
	 	 	17	 
	Section 1.10. Severability Clause
	 	 	17	 
	Section 1.11. Benefits of Indenture
	 	 	17	 
	Section 1.12. Governing Law
	 	 	18	 
	Section 1.13. No Recourse Against Others
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	Security Forms
	 	 	 	 
	 
	 	 	 	 
	Section 2.01. Forms Generally
	 	 	18	 
	Section 2.02. Form of Face of Security
	 	 	18	 
	Section 2.03. Form of Reverse of Security
	 	 	22	 
	Section 2.04. Form of Trustee’s Certificate of Authentication
	 	 	31	 
	Section 2.05. Legend on Restricted Securities
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	The Securities
	 	 	 	 
	 
	 	 	 	 
	Section 3.01. Title and Terms; Payments
	 	 	31	 
	Section 3.02. Ranking
	 	 	32	 
	Section 3.03. Denominations
	 	 	32	 
	Section 3.04. Execution, Authentication, Delivery and Dating
	 	 	32	 
	Section 3.05. Temporary Securities
	 	 	33	 
	Section 3.06. Registration; Registration of Transfer and Exchange;
Restrictions on Transfer
	 	 	33	 
	Section 3.07. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	35	 
	Section 3.08. Persons Deemed Owners
	 	 	36	 
	Section 3.09. Book-Entry Provisions for Global Securities
	 	 	36	 
	Section 3.10. Cancellation and Transfer Provisions
	 	 	38	 
	Section 3.11. CUSIP Numbers
	 	 	40	 

i

 

	 	 	 	 	 
	 	 	Page
	 
	 	 
	ARTICLE 4
	 	 	 	 
	Particular Covenants of the Company
	 	 	 	 
	 
	 	 	 	 
	Section 4.01. Payment of Principal and Interest
	 	 	40	 
	Section 4.02. Maintenance of Office or Agency
	 	 	40	 
	Section 4.03. Appointments to Fill Vacancies in Trustee’s Office
	 	 	41	 
	Section 4.04. Provisions as to Paying Agent
	 	 	41	 
	Section 4.05. Existence
	 	 	42	 
	Section 4.06. Maintenance of Properties
	 	 	42	 
	Section 4.07. Payment of Taxes and Other Claims
	 	 	43	 
	Section 4.08. Rule 144A Information Requirement
	 	 	43	 
	Section 4.09. Resale of Certain Securities
	 	 	43	 
	Section 4.10. Commission Filings and Reports
	 	 	44	 
	Section 4.11. Book-Entry System
	 	 	44	 
	Section 4.12. Additional Interest under the Registration Rights Agreement
	 	 	44	 
	Section 4.13. Stay; Extension and Usury Laws
	 	 	44	 
	Section 4.14. Compliance Certificate
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	Fundamental Changes and Repurchases Thereupon
	 	 	 	 
	 
	 	 	 	 
	Section 5.01. Repurchase at Option of Holders Upon a Fundamental Change
	 	 	45	 
	Section 5.02. Effect of Fundamental Change Repurchase Notice
	 	 	48	 
	Section 5.03. Withdrawal of Fundamental Change Repurchase Notice
	 	 	48	 
	Section 5.04. Deposit of Fundamental Change Repurchase Price
	 	 	49	 
	Section 5.05. Securities Repurchased in Whole or in Part
	 	 	49	 
	Section 5.06. Covenant to Comply With Securities Laws Upon Repurchase of Securities
	 	 	50	 
	Section 5.07. Repayment to the Company
	 	 	50	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	Conversion
	 	 	 	 
	 
	 	 	 	 
	Section 6.01. Right to Convert
	 	 	50	 
	Section 6.02. Conversion Procedure
	 	 	53	 
	Section 6.03. Settlement Upon Conversion
	 	 	54	 
	Section 6.04. Adjustment of Conversion Rate
	 	 	56	 
	Section 6.05. Effect of Reclassification, Consolidation, Merger or Sale
	 	 	64	 
	Section 6.06. Adjustments of Average Prices
	 	 	65	 
	Section 6.07. Adjustments Upon Certain Fundamental Changes
	 	 	65	 
	Section 6.08. Taxes on Shares Issued
	 	 	66	 
	Section 6.09. Reservation of Shares; Shares to be Fully Paid; Compliance With
Governmental Requirements; Listing of Common Stock
	 	 	67	 
	Section 6.10. Responsibility of Trustee
	 	 	67	 

ii

 

	 	 	 	 	 
	 	 	Page
	 
	Section 6.11. Notice to Holders Prior to Certain Actions
	 	 	68	 
	Section 6.12. Stockholder Rights Plan
	 	 	69	 
	Section 6.13. Company Determination Final
	 	 	69	 
	Section 6.14. Exchange in Lieu of Conversion
	 	 	69	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	Events of Default; Remedies
	 	 	 	 
	 
	 	 	 	 
	Section 7.01. Events of Default
	 	 	70	 
	Section 7.02. Acceleration of Maturity; Rescission and Annulment
	 	 	72	 
	Section 7.03. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	73	 
	Section 7.04. Trustee May File Proofs of Claim
	 	 	74	 
	Section 7.05. Application of Money Collected
	 	 	74	 
	Section 7.06. Limitation on Suits
	 	 	74	 
	Section 7.07. Unconditional Right of Holders to Receive Payment
	 	 	75	 
	Section 7.08. Restoration of Rights and Remedies
	 	 	75	 
	Section 7.09. Rights and Remedies Cumulative
	 	 	76	 
	Section 7.10. Delay or Omission Not Waiver
	 	 	76	 
	Section 7.11. Control by Holders
	 	 	76	 
	Section 7.12. Waiver of Past Defaults
	 	 	76	 
	Section 7.13. Undertaking for Costs
	 	 	77	 
	Section 7.14. Waiver of Stay or Extension Laws
	 	 	77	 
	Section 7.15. Violations of Certain Covenants
	 	 	77	 
	Section 7.16. Notice of Default
	 	 	77	 
	Section 7.17. Default Interest
	 	 	78	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	 	 
	 
	 	 	 	 
	Section 8.01. Company May Consolidate, etc., Only on Certain Terms
	 	 	78	 
	Section 8.02. Successor Substituted
	 	 	79	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	The Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 9.01. Duties and Responsibilities of Trustee
	 	 	79	 
	Section 9.02. Notice of Defaults
	 	 	81	 
	Section 9.03. Reliance on Documents, Opinions, Etc.
	 	 	81	 
	Section 9.04. No Responsibility for Recitals, Etc.
	 	 	82	 
	Section 9.05. Trustee, Paying Agents, Conversion Agents or Registrar May Own
Securities
	 	 	82	 
	Section 9.06. Monies to be Held in Trust
	 	 	83	 
	Section 9.07. Compensation and Expenses of Trustee
	 	 	83	 
	Section 9.08. Officers’ Certificate as Evidence
	 	 	83	 

iii

 

	 	 	 	 	 
	 	 	Page
	 
	 	 
	Section 9.09. Conflicting Interests of Trustee
	 	 	84	 
	Section 9.10. Eligibility of Trustee
	 	 	84	 
	Section 9.11. Resignation or Removal of Trustee
	 	 	84	 
	Section 9.12. Acceptance by Successor Trustee
	 	 	86	 
	Section 9.13. Succession by Merger, Etc.
	 	 	86	 
	Section 9.14. Preferential Collection of Claims
	 	 	87	 
	Section 9.15. Trustee’s Application for Instructions from the Company
	 	 	87	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 
	Holders’ Lists and Reports by Trustee
	 	 	 	 
	 
	 	 	 	 
	Section 10.01. Company to Furnish Trustee Names and Addresses of Holders
	 	 	87	 
	Section 10.02. Preservation of Information; Communications to Holders
	 	 	88	 
	Section 10.03. Reports By Trustee
	 	 	88	 
	Section 10.04. Reports by Company
	 	 	89	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	Satisfaction And Discharge
	 	 	 	 
	 
	 	 	 	 
	Section 11.01. Discharge of Indenture
	 	 	89	 
	Section 11.02. Deposited Monies to be Held in Trust by Trustee
	 	 	90	 
	Section 11.03. Paying Agent to Repay Monies Held
	 	 	90	 
	Section 11.04. Return of Unclaimed Monies
	 	 	90	 
	Section 11.05. Reinstatement
	 	 	91	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	Section 12.01. Supplemental Indentures Without Consent of Holders
	 	 	91	 
	Section 12.02. Supplemental Indentures With Consent of Holders
	 	 	92	 
	Section 12.03. Execution of Supplemental Indentures
	 	 	93	 
	Section 12.04. Effect of Supplemental Indentures
	 	 	93	 
	Section 12.05. Conformity with Trust Indenture Act
	 	 	93	 
	Section 12.06. Reference in Securities to Supplemental Indentures
	 	 	94	 
	Section 12.07. Notice to Holders of Supplemental Indentures
	 	 	94	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	Section 13.01. Trust Indenture Act Controls
	 	 	94	 
	Section 13.02. Notices
	 	 	94	 
	Section 13.03. Communication by Holders with other Holders
	 	 	95	 
	Section 13.04. Certificate and Opinion as to Conditions Precedent
	 	 	95	 
	Section 13.05. Statements Required in Certificate or Opinion
	 	 	95	 

iv

 

	 	 	 	 	 
	 	 	Page
	 
	Section 13.06. When Securities Are Disregarded
	 	 	96	 
	Section 13.07. Rules by Trustee, Paying Agent and Registrar
	 	 	96	 
	Section 13.08. Legal Holidays
	 	 	96	 
	Section 13.09. Governing Law
	 	 	97	 
	Section 13.10. No Recourse Against Others
	 	 	97	 
	Section 13.11. Successors
	 	 	97	 
	Section 13.12. Multiple Originals
	 	 	97	 
	Section 13.13. Qualification of Indenture
	 	 	97	 
	Section 13.14. Table of Contents; Headings
	 	 	97	 
	Section 13.15. Severability Clause
	 	 	97	 
	Section 13.16. Calculations
	 	 	97	 
	Section 13.17. Waiver of Jury Trial
	 	 	98	 
	Section 13.18. Force Majeure
	 	 	98	 

v

 

     INDENTURE, dated as of February 6, 2007, between Borland Software Corporation, a corporation
duly organized and existing under the laws of the State of Delaware, as Issuer (the “Company”),
having its principal office at 20450 Stevens Creek Boulevard, Suite 800, Cupertino, California
95014 and U.S. Bank National Association, a national banking association, as Trustee (the
“Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the creation of an issue of 2.75% Convertible Senior
Notes due 2012 (each a “Security” and collectively, the “Securities”) 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.

     “Additional Interest” shall mean Additional Interest as defined in the Registration Rights
Agreement.

     “Additional Shares” has the meaning specified in Section 6.07(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 3.09.

     “Bid Solicitation Agent” means an independent nationally recognized securities dealer selected
by the Company to solicit market bid quotations for the Securities, which shall in no event be an
Affiliate of the Company.

     “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, a Sunday or a day on which the Federal
Reserve Bank in The City of New York is authorized or obligated by law, executive order or
governmental decree to be closed.

     “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock 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 Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act, or, if at any time after the execution of this instrument such
Commission is not existing and performing

2

 

the duties now assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

     “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 or, in the event of a merger, consolidation
or other similar transaction involving the Company that is otherwise permitted hereunder in which
the Company is not the surviving corporation, the common stock, common equity interests, ordinary
shares or depositary shares or other certificates representing common equity interests of such
surviving corporation or its direct or indirect parent corporation.

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

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chief Executive Officer, its President or its Chief Financial Officer, and by
its Treasurer or its Secretary, and delivered to the Trustee.

     “Continuing Director” means, at any date, a member of the Company’s Board of Directors (i) who
was a member of such board on February 1, 2007, or (ii) became a director of the Company subsequent
to February 1, 2007, and whose election, appointment or nomination for election by the holders of
the Company’s Capital Stock was duly approved by a majority of the Continuing Directors on the
Board of Directors of the Company at the time of such approval, either by a specific vote or by
approval of the proxy statement issued by the Company on behalf of the entire Board of Directors of
the Company in which such individual was named as nominee for director.

     “Conversion Agent” means the Trustee or such other office or agency designated by the Company
where Securities may be presented for conversion.

     “Conversion Date” has the meaning specified in Section 6.02(b).

     “Conversion Notice” shall have the meaning specified in Section 6.02(b).

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

     “Conversion Rate” has the meaning specified in Section 2.03.

3

 

     “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 633 West 5th Street,
24th Floor, Los Angeles, California 90071, Attention: Corporate Trust Services (Borland
Software Corporation, 2.75% Convertible Senior Notes due 2012).

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

     “Custodian” means [U.S. Bank National Association], as custodian with respect to the
Securities in global form, or any successor entity.

     “Daily Conversion Value” means, for each of the 40 consecutive Trading Days during the
Observation Period, 2.5% of the product of (i) the applicable Conversion Rate and (ii) the Daily
VWAP of Common Stock for such Trading Day.

     “Daily Settlement Amount” has the meaning specified in Section 6.03(b)

     “Daily VWAP” means, for each of the 40 consecutive Trading Days during the Observation Period,
the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on
Bloomberg page “BORL.UQ <equity> AQR” (or its equivalent successor if such page is not
available) in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such
Trading Day (or if such volume-weighted average price is unavailable, the market value of one share
of Common Stock on such Trading Day determined, using a volume-weighted average method, by a
nationally recognized independent investment banking firm retained for such purpose by the
Company).

     “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.

     “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 6.07(b).

     “Event of Default” has the meaning specified in Section 7.01.

     “Ex Date” means, with respect to any issuance, dividend or distribution on the Common Stock or
any other equity security, the first date on which shares of the Common Stock or such other equity
security trade on the applicable

4

 

exchange or in the applicable market, regular way, without the right to receive the issuance,
dividend or distribution in question.

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

     “Exchange Rate Contract” means, with respect to any Person, any currency swap agreement,
forward exchange rate agreement, foreign currency future or option, exchange rate collar agreement,
exchange rate insurance or other agreement or arrangement, or combination thereof, the principal
purpose of which is to provide protection against fluctuations in currency exchange rates. An
Exchange Rate Contract may also include an Interest Rate Agreement.

     “Fair Market Value” means the amount which a willing buyer would pay a willing seller in an
arm’s length transaction.

     “Fundamental Change” means the occurrence of any of the following events at any time after the
Securities are originally issued:

     (1) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act other than
the Company, its Subsidiaries or its or their employee benefit plans becomes the direct or indirect
“beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of the Company’s common equity
representing more than 50% of the voting power of the Company’s common equity;

     (2) consummation of any share exchange, consolidation or merger of the Company pursuant to
which the Company’s common stock will be converted into cash, securities or other property or any
sale, lease or other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of the Company and its Subsidiaries, taken as a whole,
to any person other than one of the Company’s wholly-owned Subsidiaries; provided, however, that a
transaction where the holders of more than 50% of all classes of the Company’s common equity
immediately prior to such transaction own, directly or indirectly, more than 50% of all classes of
common equity of the continuing or surviving corporation or transferee immediately after such event
shall not be a Fundamental Change;

     (3) Continuing Directors cease to constitute at least a majority of the Company’s board of
directors;

     (4) the Company’s stockholders approve any plan or proposal for the liquidation or dissolution
of the Company; or

     (5) the Common Stock, or other common stock or American Depository Receipts into which the
Securities are then convertible, ceases to be

5

 

listed for trading on a United States national securities exchange or quoted on an established
automated over-the-counter trading market in the U.S.

     Notwithstanding the foregoing, a Fundamental Change as a result of clause (2) above will not
be deemed to have occurred if (i) 90% of the consideration received or to be received by the
holders of Common Stock, excluding cash payments for fractional shares and cash payments in respect
of dissenters’ or appraisal rights, in the transaction or transactions otherwise constituting the
Fundamental Change consists of Publicly Traded Securities and, as a result of such transaction or
transactions, the Securities become convertible into such Publicly Traded Securities, excluding
cash payments for fractional shares and cash payments in respect of dissenters’ or appraisal rights
or (ii) with respect to the disposition of all or substantially all of the Company’s IDE Business,
if for each of the two full fiscal quarters immediately preceding the closing of such disposition,
the revenues of the IDE Business represented not more than 30% of the Company’s total revenues.

     “Fundamental Change Company Notice” has the meaning specified in Section 5.01(b).

     “Fundamental Change Repurchase Date” has the meaning specified in Section 5.01(a).

     “Fundamental Change Repurchase Notice” has the meaning specified in Section 5.01(a).

     “Fundamental Change Repurchase Price” has the meaning specified in Section 5.01(a).

     “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 on the date hereof.

     “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.

     “IDE Business” means the Company’s integrated development environment business and the assets,
products, solutions and services directly

6

 

related thereto, whether operated as the Company’s CodeGear division or otherwise.

     “Indebtedness” means, with respect to any Person, without duplication, (i) any indebtedness or
obligation, whether contingent or not, (1) evidenced by a credit or loan agreement, note, bond,
debenture or similar written obligation or instrument (whether or not the recourse of the lender is
to the whole of the assets of such Person or to only a portion thereof) or (2) for money borrowed,
(ii) all obligations (1) as lessee under leases required to be capitalized on such Person’s balance
sheet under GAAP or (2) as lessee under other leases for facilities, capital equipment or related
assets, whether or not capitalized, entered into or leased for financing purposes, (iii) all net
obligations under Interest Rate Agreements, Exchange Rate Contracts, treasury management agreements
or similar agreements or arrangements, (iv) all obligations and liabilities (contingent or
otherwise) of such Person with respect to letters of credit, bankers’ acceptances and similar
facilities (including reimbursement obligations with respect to the foregoing), (v) all obligations
and liabilities (contingent or otherwise) of such Person issued or assumed as the deferred purchase
price of any property or services (but excluding trade accounts payable and accrued liabilities
arising in the ordinary course of business), (vi) obligations of the type described in clauses (i)
through (v) above of any third party and all dividends of any third party payment of which, in
either case, such Person has assumed or guaranteed, or for which the Person first referenced above
is responsible or liable, directly or indirectly, jointly or severally, as obligor, guarantor or
otherwise, or that are secured by a lien on such Person’s property and (vii) any and all renewals,
extensions, modifications, replacements, restatements and refundings of, or any indebtedness or
obligation issued in exchange for, any indebtedness, obligation or liability of the kinds described
in clauses (i) through (vi). The amount of any Indebtedness outstanding as of any date shall be
the accreted value thereof, in the case of any Indebtedness issued with original issue discount.
The amount of any Indebtedness outstanding as of any date with respect to any Exchange Rate
Contract or Interest Rate Agreement shall be the termination value thereof. Indebtedness shall not
include liabilities for taxes of any kind.

     “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, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively.

     “Initial Purchaser” means J.P. Morgan Securities Inc.

     “Interest Payment Date” means each February 15 and August 15 of each year.

7

 

     “Interest Rate Agreement” means, with respect to any Person, any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar agreement the
principal purpose of which is to protect the party indicated therein against fluctuations in
interest rates.

     “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, on any date, the closing sale price per share of the Common
Stock (or, if no closing sale price is reported, the average of the bid and ask prices or, if more
than one in either case, the average of the average bid and the average ask prices) on such date as
reported in composite transactions for the principal U.S. national or regional securities exchange
on which the Common Stock is listed for trading. The “Last Reported Sale Price” shall be
determined without reference to after-hours or extended market trading. If the Common Stock is not
listed for trading on a U.S. national or regional securities exchange, “Last Reported Sale Price”
shall mean the last quoted bid price for the Common Stock in the over-the-counter market on such
date as reported by the National Quotation Bureau Incorporated or any successor organization
thereto. If the Common Stock is not so quoted, “Last Reported Sale Price” shall mean the average
of the mid-point of the last bid and ask prices for the Common Stock on such date from each of at
least three nationally recognized independent investment banking firms selected by the Company for
such purpose.

     “Legal Holiday” has the meaning specified in Section 13.08.

     “Majority Owner” means, with respect to an entity, another entity that has “beneficial
ownership” (as defined in Rule 13(d)(3) under the Exchange Act) of more than 50% of the total
voting power of all shares of the first entity’s Capital Stock that are entitled to vote generally
in the election of directors.

     “Market Disruption Event” means, if the Common Stock is listed on a U.S. national or regional
securities exchange, the occurrence or existence during the one half hour period ending on the
scheduled close of trading on any Trading Day for the Common Stock of any material suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by such
exchange or otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock.

     “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 or Fundamental Change Repurchase Date, by declaration of
acceleration or otherwise.

8

 

     “Measurement Period” has the meaning specified in Section 6.01(a).

     “Net Share Settlement Approval” means the approval by stockholders holding a majority of the
shares of the Common Stock entitled to vote on such matter, in accordance with each of the
Company’s Certificate of Incorporation and By-Laws, applicable law and the rules of The Nasdaq
Stock Market (or, if The Nasdaq Stock Market is not the primary U.S. national or regional
securities exchange on which the Common Stock is then listed for trading, the primary U.S. national
or regional securities exchange on which the Common Stock is then listed for trading) and at a
meeting duly called and held in accordance with such organizational documents, applicable law and
rules, of a proposal by the Company to settle conversions of the Securities on a “net share” basis
in accordance with Section 6.03(b) hereof.

     “Notice of Default” has the meaning specified in Section 7.01.

     “Observation Period” with respect to any Security means the 40 consecutive Trading Day period
beginning on and including the second Trading Day after the related Conversion Date, except that
with respect to any conversion occurring during the period beginning on November 15, 2011, and
ending at 5:00 p.m., New York City time, on the second Scheduled Trading Day prior to the Stated
Maturity of the Securities, Observation Period means the first 40 Trading Days beginning on and
including the 42nd Scheduled Trading Day prior to the Stated Maturity of the Securities.

     “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 4.14 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 repurchase 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

9

 

as its own Paying Agent) for the Holders of such Securities; provided that if such
Securities are to be repurchased prior to the maturity thereof, notice of such repurchase
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 into Common Stock pursuant to Article 6;

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, including Additional Interest, or the Fundamental Change
Repurchase Price of, any Securities on behalf of the Company. U.S. Bank National Association shall
initially be the 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 integral multiples thereof.

     “Principal Amount” of a Security means the Principal Amount as set forth on the face of the
Security.

10

 

     “Publicly Traded Securities” means shares of Capital Stock or American Depository Receipts
that are traded on a U.S. national securities exchange or quoted on an established automated
over-the-counter trading market in the U.S. or, with respect to a transaction described in any of
clauses (i) through (v) of the definition of “Fundamental Change”, which will be so traded or
quoted when issued or exchanged in connection with such event.

     “Purchase Agreement” means the Purchase Agreement, dated February 1, 2007, entered into by the
Company and the Initial Purchaser in connection with the sale of the Securities.

     “Qualified Institutional Buyer” or “QIB” shall have the meaning specified in Rule 144A.

     “Record Date” means, with respect to the payment of interest on the Securities, including
Additional Interest, if any, the February 1 (whether or not a Business Day) next preceding an
Interest Payment Date on February 15 and August 1 (whether or not a Business Day) next preceding an
Interest Payment Date on August 15.

     “Reference Property” has the meaning specified in Section 6.05.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated as of February
6, 2007, between the Company and the Initial Purchaser, for the benefit of itself and the Holders,
as the same may be amended or modified from time to time in accordance with the terms thereof.

     “Resale Registration Statement” means a registration statement under the Securities Act
registering the Securities for resale pursuant to the terms of the Registration Rights Agreement.

     “Responsible Officer” means any officer of the Trustee within the Corporate Trust Office of
the Trustee 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 Global Security” means a Global Security representing Restricted Securities.

     “Restricted Security” or “Restricted Securities” has the meaning specified in Section 2.05.

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

11

 

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

     “Rule 144A Information” has the meaning specified in the Securities.

     “Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the principal
U.S. national or regional securities exchange or market on which the Common Stock is listed or
admitted for trading.

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

     “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
3.06.

     “Settlement Amount” has the meaning specified in Section 6.03(a)

     “Significant Subsidiary” shall have the meaning given to such term in Rule 1-02(w) of
Regulation S-X under the Securities Act.

     “Spin-Off” has the meaning specified in Section 6.04(c).

     “Stated Maturity,” when used with respect to any Security, means the date specified in such
Security as the fixed date on which an amount equal to the Principal Amount of such Security
together with accrued and unpaid interest, if any, is due and payable.

     “Stock Price” has the meaning specified in Section 6.07(b).

     “Stock Transfer Agent” means Mellon Investor Services, L.L.C., or such other Person as may be
designated by the Company as the transfer agent for the Common Stock.

     “Stockholder Rights Agreement” means the Stockholder Rights Agreement, dated as of October 26,
2001, between the Company and Mellon Investor Services, L.L.C.

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at all

12

 

times or only so long as no senior class of stock has such voting power by reason of any
contingency.

     “Successor Company” has the meaning specified in Section 8.01.

     “Trading Day” means, except as provided in Section 6.01(b) hereof, a day during which (i)
trading in the Company’s Common Stock generally occurs on the principal U.S. national or regional
securities exchange or market on which the Company’s Common Stock is listed or admitted to trading
and (ii) there is no Market Disruption Event.

     “Trading Price” of the Securities on any date of determination means the average of the
secondary market bid quotations obtained by the Bid Solicitation Agent for $5,000,000 Principal
Amount of the Securities at approximately 3:30 p.m., New York City time, on such determination date
from three independent nationally recognized securities dealers 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 the Bid
Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 Principal Amount of the
Securities from a nationally recognized securities dealer, then the Trading Price per $1,000
Principal Amount of Securities will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Company’s Common Stock and the applicable Conversion Rate. In addition,
if the Company shall fail to instruct the Bid Solicitation Agent to obtain secondary market bid
quotations for the Securities as required by this Indenture, then the Trading Price per $1,000
Principal Amount of Securities will be deemed to be less than 98% of the product of the Last
Reported Sale Price of the Company’s Common Stock and the applicable Conversion Rate on each day on
which the Company so fails to instruct the Bid Solicitation Agent.

     “Transfer Restricted Security” means a Security required to bear the restricted legend set
forth in the form of Security in Section 2.02.

     “Trigger Event” has the meaning specified in Section 6.04(b).

     “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” 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

13

 

the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such
successor Trustee.

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

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

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

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

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

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

     (c) a statement that, in the opinion of each such individual, 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.

14

 

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

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

     Section 1.04. 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 any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to
Section 9.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in
this Section.

     (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.

15

 

     (c) The Company may, in the circumstances permitted by the Trust Indenture Act, 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 10.01) 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 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

16

 

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

     Section 1.08. 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 1.09. Successors and Assigns. All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.

     Section 1.10. 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 1.11. Benefits of Indenture. Nothing in this Indenture or in the Securities, express
or implied, shall give to any Person, other than the parties

17

 

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.

     Section 1.12. 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 1.13. 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

Security Forms

     Section 2.01. Forms Generally. The Securities and the Trustee’s certificates of
authentication shall be in substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange
or Depositary therefor, the Code and regulations thereunder, or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution thereof.

     The Securities shall initially be issued in the form of permanent Global Securities in
registered form in substantially the form set forth in this Article. The aggregate Principal
Amount of the Global Securities may from time to time be increased or decreased by adjustments made
on the records of the Trustee, as custodian for the Depositary, as hereinafter provided.

     Section 2.02. Form of Face of Security. [INCLUDE IF SECURITY IS A RESTRICTED SECURITY — THE
SALE OF THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, THIS SECURITY MAY NOT BE OFFERED OR SOLD EXCEPT AS
SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL
NOT WITHIN THE LATER OF (X) TWO YEARS AFTER THE LATEST ISSUE DATE OF THIS SECURITY AND (Y) THREE
MONTHS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT)
OF THE ISSUER, OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY OR THE
COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY,

18

 

EXCEPT (A) TO THE ISSUER; (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF
AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN THE LATER OF
(X) TWO YEARS AFTER THE LATEST ISSUE DATE OF THIS SECURITY AND (Y) THREE MONTHS AFTER IT CEASES TO
BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE ISSUER,
FURNISH TO THE TRUSTEE AND THE ISSUER SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS
MAY BE REQUIRED PURSUANT TO THE INDENTURE 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.]

     [INCLUDE IF SECURITY IS A GLOBAL SECURITY — THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE 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.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, 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 IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

19

 

2.75% Convertible Senior Notes due 2012

					
	 	 	 	 	 
	No. 1
	 	CUSIP NO. 099849AA9
	 	U.S. $175,000,000

     Borland Software Corporation, a corporation duly organized and validly existing under the laws
of the State of Delaware (herein called the “Company”), which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value received hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of One Hundred and Seventy
Five Million United States Dollars ($175,000,000) (which amount may from time to time be increased
or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary, in
accordance with the rules and procedures of the Depositary) on February 15, 2012. Payment of the
principal of this Security shall be made by check mailed to the address of the Holder of this
Security specified in the register of Securities, or, at the option of the Company, by wire
transfer in immediately available funds, in such lawful money of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts.

     The issue date of this Security is February 6, 2007.

     Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Holder the right to convert this Security into
Common Stock of the Company and to require the Company to repurchase this Security upon certain
events, in each case, 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. Capitalized terms used but not defined
herein shall have such meanings as are ascribed to such terms in the Indenture.

     This Security shall be deemed to be a contract made under the laws of the State of New York,
and for all purposes shall be construed in accordance with and governed by the laws of said State.

     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.

20

 

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

	 	 	 	 	 
	 	BORLAND SOFTWARE CORPORATION

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

21

 

     Section 2.03. Form of Reverse of Security.

BORLAND SOFTWARE CORPORATION

2.75% Convertible Senior Notes due 2012

     This Security is one of a duly authorized issue of Securities of the Company, designated as
its 2.75% Convertible Senior Notes due 2012 (the “Securities”), all issued or to be issued under
and pursuant to an Indenture dated as of February 6, 2007 (the “Indenture”), between the Company
and U.S. Bank National Association (the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights, limitations of
rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders
of the Securities.

     Interest. The Securities will bear interest at a rate of 2.75% per year. Interest on
the Securities will accrue from February 6, 2007. Interest will be payable semiannually in arrears
on February 15 and August 15, beginning August 15, 2007, and at maturity.

     Interest will be paid to the person in whose name a Security is registered at the close of
business on the February 1 or August 1, as the case may be, immediately preceding the relevant
Interest Payment Date. Interest on the Securities will be computed on the basis of a 360-day year
composed of twelve 30-day months.

     Ranking. The Securities rank equally in right of payment with all the Company’s
existing and future unsecured senior debt and are senior in right of payment to all of the
Company’s future subordinated debt, if any. The Securities are effectively subordinated to all of
debt and other liabilities, including trade payables and lease obligations, if any, of the
Company’s subsidiaries.

     Redemption at the Option of the Company. The Company may not redeem any of the
Securities at its option prior to maturity.

     Repurchase by the Company at the Option of the Holder Upon a Fundamental Change.
Subject to the terms and conditions of the Indenture, the Company shall become obligated, at the
option of the Holder, to repurchase the Securities if a Fundamental Change occurs at any time prior
to the Stated Maturity at 100% of the Principal Amount plus accrued and unpaid interest, including
Additional Interest, if any, to, but excluding, the Fundamental Change Repurchase Date, which
amount will be paid in cash.

22

 

     Withdrawal of Fundamental Change Repurchase Notice. Holders have the right to
withdraw, in whole or in part, any Fundamental Change Repurchase Notice, as the case may be, by
delivering to the Paying Agent a written notice of withdrawal in accordance with the provisions of
the Indenture.

     Payment of Fundamental Change Repurchase Price. If cash sufficient to pay the
Fundamental Change Repurchase Price of all Securities or portions thereof to be repurchased on a
Fundamental Change Repurchase Date is deposited with the Paying Agent on the Fundamental Change
Repurchase Date, such Securities will cease to be outstanding and interest will cease to accrue on
such Securities (or portions thereof) immediately after such Fundamental Change Repurchase Date,
and the Holder thereof shall have no other rights as such (other than the right to receive the
Fundamental Change Repurchase Price upon surrender of such Security).

     Conversion. Subject to and in compliance with the provisions of the Indenture
(including without limitation the conditions of conversion of this Security set forth in Article 6
thereof), the Holder hereof has the right, at its option, to convert the Principal Amount hereof or
any portion of such principal which is $1,000 or an integral multiple thereof, into shares of
Common Stock, or, if the Company has obtained Net Share Settlement Approval in accordance with the
Indenture, cash and shares of Common Stock, if any, in each case at the Conversion Rate. The
initial Conversion Rate is 156.8627 shares of Common Stock per $1,000 Principal Amount of
Securities (equivalent to a conversion price of $6.375), subject to adjustment in certain events
described in the Indenture. Upon conversion, the Company will pay shares of Common Stock or, if
the Company has obtained Net Share Settlement Approval in accordance with the Indenture, cash and
shares of Common Stock if any, based on a Settlement Amount calculated on a proportionate basis for
each day of the Observation Period, as set forth in the Indenture. No fractional shares will be
issued upon any conversion, but an adjustment and payment in cash will be made, as provided in the
Indenture, in respect of any fraction of a share which would otherwise be issuable upon the
surrender of any Securities for conversion. Securities in respect of which a Holder is exercising
its right to require repurchase on a Fundamental Change Repurchase Date may be converted only if
such Holder withdraws its election to exercise such right in accordance with the terms of the
Indenture.

     In the event of a deposit or withdrawal of an interest in this Security, including an
exchange, transfer, repurchase or conversion of this Security in part only, the Trustee, as
custodian of the Depositary, shall make an adjustment on its records to reflect such deposit or
withdrawal in accordance with the rules and procedures of the Depositary.

     Subject to certain limitations in the Indenture, at any time when the Company is not subject
to Section 13 or 15(d) of the United States Securities

23

 

Exchange Act of 1934, as amended, upon the request of a Holder of a Restricted Security, the
Company will promptly furnish or cause to be furnished Rule 144A Information (as defined below) to
such Holder of Restricted Securities, or to a prospective purchaser of any such security designated
by any such Holder, to the extent required to permit compliance by any such Holder with Rule 144A
under the Securities Act. “Rule 144A Information” shall be such information as is specified
pursuant to Rule 144A(d)(4) under the Securities Act (or any successor provision thereto).

     If an Event of Default shall occur and be continuing, the Principal Amount plus interest,
including Additional Interest, if any, through such date on all the Securities may be declared due
and payable in the manner and with the effect provided in the Indenture.

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

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities, the Holders of not less than 25% in aggregate Principal Amount of the Outstanding
Securities shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default as Trustee and offered the Trustee reasonable indemnity satisfactory to it,
the Trustee shall not have received from the Holders of a majority in Principal Amount of
Outstanding Securities a direction inconsistent with such request, and the Trustee shall have
failed to institute any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this
Security for the enforcement of any payment of the Principal Amount or

24

 

Fundamental Change Repurchase Price hereof on or after the respective due dates expressed
herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the Principal Amount or Fundamental Change Repurchase Price of, and interest, including Additional
Interest, if any, on, this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in The City of New York, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Securities, of authorized denominations and for the same
aggregate Principal Amount, will be issued to the designated transferee or transferees.

     The Securities are issuable only in registered form in denominations of $1,000 and any
integral multiple of $1,000 above that amount, as provided in the Indenture and subject to certain
limitations therein set forth. Securities are exchangeable for a like aggregate Principal Amount
of Securities of a different authorized denomination, as requested by the Holder surrendering the
same.

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

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

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

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

25

 

ASSIGNMENT FORM

     If you want to assign this Security, fill in the form below and have your signature
guaranteed:

     I or we assign and transfer this Security to:

	 	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	(Print or type name, address and zip code and social security or tax ID number of assignee)

     and irrevocably appoint  
                 
                  
                  
       agent to transfer this Security
on the books of the Company. The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 

	 	 

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

	 	 	 	 	 	 	 
	 

	 	Signature Guarantee:	 	 	 	 
	 

	 	 	 	 

	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security 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 Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

26

 

     In connection with any transfer of this Security occurring prior to the date which is the
earlier of (i) the date of the declaration by the Commission of the effectiveness of a registration
statement under the Securities Act, as amended (the “Securities Act”), covering resales of this
Security (which effectiveness shall not have been suspended or terminated at the date of the
transfer) and (ii) the second anniversary of the Issue Date set forth on the face of this Security,
the undersigned confirms that it has not utilized any general solicitation or general advertising
in connection with the transfer and that this Security is being transferred:

[Check One]

	 	 	 	 	 
	(1)

	 	o
	 	to the Company or a subsidiary thereof; or
	 
	 	 	 	 
	(2)

	 	o
	 	to a “Qualified Institutional Buyer” pursuant to and in
compliance with Rule 144A under the Securities Act; or
	 
	 	 	 	 
	(3)

	 	o
	 	pursuant to the exemption from registration provided by
Rule 144 under the Securities Act.

     Unless one of the above boxes is checked, the Trustee will refuse to register any of the Securities
evidenced by this certificate in the name of any Person other than the registered Holder thereof,
provided that if box (3) is checked, the Company may require (and shall deliver to the Trustee and
the Security Registrar), prior to registering any such transfer of the Securities, in its sole
discretion, such legal opinions, certifications and other information as the Company may reasonably
request 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.

     If none of the foregoing boxes is checked, the Trustee or Security Registrar shall not be
obligated to register this Security in the name of any Person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein and in Section 3.10
of the Indenture shall have been satisfied.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	Signed:	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 

	 	 

27

 

	 	 	 
	 

	 	(Sign exactly as your name appears
	 

	 	on the other side of this Security)

	 	 	 	 	 
	Signature Guarantee:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security 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 Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

28

 

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

     The undersigned represents and warrants that it is purchasing this Security for its own
account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 
	 	 
	 	Signed:
	 	 
	 	 
	 

	 	 	 	 
	 	 	 	 	 	 

     NOTICE: To be executed by an executive officer.

29

 

CONVERSION NOTICE

     If you want to convert this Security into Common Stock of the Company (or, if applicable, cash
and Common Stock of the Company, if any), check the box: o

     To convert only part of this Security, state the Principal Amount to be converted (which must
be $1,000 or an integral multiple of $1,000):

          $                                                                                

     If you want the stock certificate, if any, made out in another person’s name, fill in the form
below:

 

 

(Insert other person’s social security or tax ID no.)

 

 

 

 

 

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 
	 	 
	 	Signed:
	 	 
	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 

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

	 	 	 	 	 
	Signature Guarantee:

	 	 	 	 
	 

	 	 	 	 

Note: Signatures must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Security 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 Security Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.

30

 

     Section 2.04 . Form of Trustee’s Certificate of Authentication. This is one of the
Securities referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	Dated:                     	 	U.S. Bank National Association, as Trustee
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

     Section 2.05 . Legend on Restricted Securities. During the period beginning on the Issue
Date and ending on the date two years from such date, any Security, including any Security issued
in exchange therefor or in lieu thereof, shall be deemed a “Restricted Security” and shall be
subject to the restrictions on transfer provided in the legends set forth on the face of the form
of Security in Section 2.02; provided, however, that the term “Restricted Security” shall not
include any Securities as to which restrictions have been terminated in accordance with Section
3.06. All Securities shall bear the applicable legends set forth on the face of the form of
Security in Section 2.02. Except as provided in Section 3.06 and Section 3.10, the Trustee shall
not issue any unlegended Security until it has received an Officers’ Certificate from the Company
directing it to do so.

ARTICLE 3

The Securities

     Section 3.01 . Title and Terms; Payments. The aggregate Principal Amount of Securities that
may be authenticated and delivered under this Indenture is initially limited to $175,000,000 (or up
to $200,000,000 to the extent the Initial Purchaser exercises its over-allotment option granted
pursuant to the Purchase Agreement), except for Securities authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of, other Securities pursuant to
Sections 2.05, 3.05, 3.06, 3.07, 5.05 or 12.07.

     The Securities shall be known and designated as the “2.75% Convertible Senior Notes due 2012”
of the Company. The Principal Amount shall be payable at the Stated Maturity.

     The Principal Amount of and interest on Global Securities registered in the name of The
Depository Trust Company or its nominee shall be paid by wire
transfer in immediately available funds to The Depository Trust Company or its nominee, as
applicable.

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     The Principal Amount of Physical Securities shall be payable at the Corporate Trust Office and
at any other office or agency maintained by the Company for such purpose. Interest on Physical
Securities will be payable (i) to Holders having an aggregate Principal Amount of $5,000,000 or
less of Securities, by check mailed to such Holders at the address set forth in the Security
Register and (ii) to Holders having an aggregate Principal Amount of more than $5,000,000 of
Securities, either by check mailed to such Holders or, upon application by a Holder to the Security
Registrar not later than two days prior to the relevant Record Date for such interest payment, by
wire transfer in immediately available funds to such Holder’s account within the United States,
which application shall remain in effect until the Holder notifies the Security Registrar to the
contrary in writing.

     Section 3.02 . Ranking. The Securities constitute a senior unsecured general obligation of
the Company, ranking equally in right of payment all of the existing and future senior unsecured
and unsubordinated Indebtedness of the Company and ranking senior in right of payment any future
Indebtedness of the Company that is expressly made subordinate to the Securities by the terms of
such Indebtedness.

     Section 3.03 . Denominations. The Securities shall be issuable only in registered form
without coupons and in denominations of $1,000 and any integral multiple of $1,000 above that
amount.

     Section 3.04 . Execution, Authentication, Delivery and Dating. The Securities shall be
executed on behalf of the Company by its Chief Executive Officer, its President, its Chief
Financial Officer or its Treasurer.

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

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities. The Company Order
shall specify the amount of Securities to be authenticated, and shall further specify the amount of
such Securities to be issued as a Global Security or as Physical Securities. The Trustee in
accordance with such Company Order shall authenticate and deliver such Securities as in this
Indenture provided and not otherwise.

     Each Security shall be dated the date of its authentication.

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

     Section 3.05 . Temporary Securities. Pending the preparation of definitive Securities, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such
Securities; provided, that any such temporary Securities shall bear legends on the face of such
Securities as set forth in Section 2.02.

     If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section 4.02, without
charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
Principal Amount of Physical Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits under this Indenture as
Physical Securities.

     Section 3.06 . Registration; Registration of Transfer and Exchange; Restrictions on Transfer.

     (a) The Company shall cause to be kept at the applicable Corporate Trust Office of the Trustee
a register (the register maintained in such office and in any other office or agency designated
pursuant to Section 4.02 being herein sometimes collectively referred to as 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 Trustee is hereby
appointed “Security Registrar” (the “Security Registrar”) for the purpose of registering Securities
and transfers of Securities as herein provided.

     Upon surrender for registration of transfer of any Security at an office or agency of the
Company designated pursuant to Section 4.02 for such purpose, 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

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any authorized denominations
and of a like aggregate Principal Amount and tenor, each such Security bearing such restrictive
legends as may be required by this Indenture (including Sections 2.02, 2.05 and 3.10).

     At the option of the Holder and subject to the other provisions of this Section 3.06 and to
Section 3.10, Securities may be exchanged for other Securities of any authorized denominations and
of a like aggregate Principal Amount and tenor, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

     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.

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing. As a condition to the
registration of transfer of any Restricted Securities, the Company or the Trustee may require
evidence satisfactory to them as to the compliance with the restrictions set forth in the legend on
such securities.

     Except as provided in the following sentence and in Section 3.10, all Securities originally
issued hereunder and all Securities issued upon registration of transfer or exchange or replacement
thereof shall be Restricted Securities and shall bear the legends required by Sections 2.02 and
2.05, unless the Company shall have delivered to the Trustee (and the Security Registrar, if other
than the Trustee) a Company Order stating that the Security is not a Restricted Security and may be
issued without such legend thereon. Securities that are issued upon registration of transfer of,
or in exchange for, Securities that are not Restricted Securities shall not be Restricted
Securities and shall not bear such legend.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company and the Security Registrar may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.05 not involving any transfer.

     Neither the Company nor the Security Registrar shall be required to exchange or register a
transfer of any Security (i) that has been surrendered for

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conversion or (ii) as to which a
Fundamental Change Repurchase Notice has been delivered and not withdrawn, except that where such
Fundamental Change Repurchase Notice provides that such Security is to be purchased only in part,
the Company and the Security Registrar shall be required to exchange or register a transfer of the
portion thereof not to be purchased.

     (b) Beneficial ownership of every Restricted Security shall be subject to the restrictions on
transfer provided in the legends required to be set forth on the face of each Restricted Security
pursuant to Sections 2.02 and 2.05, unless such restrictions on transfer shall be terminated in
accordance with this Section 3.06(b) or Section 3.10. The Holder of each Restricted Security, by
such Holder’s acceptance thereof, agrees to be bound by such restrictions on transfer.

     The restrictions imposed by this Section 3.06 and by Sections 2.02, 2.05 and 3.10 upon the
transferability of any particular Restricted Security shall cease and terminate upon delivery by
the Company to the Trustee of an Officers’ Certificate stating that such Restricted Security has
been sold pursuant to an effective Resale Registration Statement under the Securities Act or
transferred in compliance with Rule 144 under the Securities Act (or any successor provision
thereto). Any Restricted Security as to which the Company has delivered to the Trustee an
Officers’ Certificate stating that such restrictions on transfer shall have expired in accordance
with their terms or shall have terminated may, upon surrender of such Restricted Security for
exchange to the Security Registrar in accordance with the provisions of this Section 3.06, be
exchanged for a new Security, of like tenor and aggregate Principal Amount, which shall not bear
the restrictive legends required by Sections 2.02 and 2.05. The Company shall inform the Trustee
in writing of the effective date of any Resale Registration Statement registering the Securities
under the Securities Act. The Trustee shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the aforementioned resale registration statement.

     As used in the preceding two paragraphs of this Section 3.06, the term “transfer” encompasses
any sale, pledge, transfer or other disposition of any Restricted Security.

     (c) Neither the Trustee, the Security Registrar nor any of their respective agents shall (i)
have any duty to monitor compliance with or with respect to any federal or state or other
securities or tax laws or (ii) have any duty to obtain documentation relating to any transfers or
exchanges other than as specifically required hereunder.

     Section 3.07 . Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security
is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security of

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like tenor
and Principal Amount and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of like tenor and Principal Amount and
bearing a number not contemporaneously outstanding.

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

     Upon the issuance of any new Security under this Section 3.07, the Company may require payment
by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

     Every new Security issued pursuant to this Section 3.07 in lieu of any destroyed, lost or
stolen Security shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and proportionately with any
and all other Securities duly issued hereunder.

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

     Section 3.08 . Persons Deemed Owners. Prior to due presentment of a Security for
registration of transfer, the Company, the Trustee, the Security Registrar and any agent of the
Company, the Trustee or the Security Registrar may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of the principal of
such Security and for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee, the Security Registrar nor any agent of the Company, the Trustee
or the Security Registrar shall be affected by notice to the contrary.

     Section 3.09 . Book-Entry Provisions for Global Securities.

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     (a) The Global Securities initially shall (i) be registered in the name of the Depositary or
the nominee of such Depositary, (ii) be delivered to the Trustee as custodian for the Depositary
and (iii) bear legends as set forth on the face of the form of Security in Section 2.02.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of any Holder.

     (b) Transfers of the Global Securities shall be limited to transfers in whole, but not in
part, to the Depositary, its successors or their respective nominees. Interests of beneficial
owners in a Global Security may be transferred or exchanged, in whole or in part, for Physical
Securities in accordance with the rules and procedures of the Depositary and the provisions of
Section 3.10. In addition, Physical Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in the Global Securities if (i) such Depositary has
notified the Company that the Depositary (A) is unwilling or unable to continue as Depositary for
such Global Security or (B) has ceased to be a clearing agency registered under the Exchange Act
when the Depositary is required to be so registered to act as such Depositary and, in either such
case, no successor Depositary shall have been appointed within 90 days of such notification, (ii)
there shall have occurred and be continuing an Event of Default with respect to such Global
Security and the Outstanding Securities shall have become due and payable pursuant to Section 7.02
and the Trustee requests that Physical Securities be issued or (iii) the Company, at its option,
notifies the Trustee that it elects to cause the issuance of Physical Securities, subject to
applicable procedures of the Depositary; provided that Holders of Physical Securities offered and
sold in reliance on Rule 144A shall have the right, subject to applicable law, to request that such
Securities be exchanged for interests in the applicable Global Security.

     (c) In connection with any transfer or exchange of a portion of the beneficial interest in the
Global Security to beneficial owners pursuant to paragraph (b) above, the Security Registrar shall
(if one or more Physical Securities are to be issued) reflect on its books and records the date and
a decrease in the Principal Amount of the Global Security in an amount equal to the Principal
Amount of the beneficial interest in the Global Security to be transferred, and the

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Company shall execute, and the Trustee shall authenticate and deliver, one or more Physical
Securities of like tenor and amount.

     (d) In connection with the transfer of the entire Global Security to beneficial owners
pursuant to paragraph (b) above, the Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in the Global Security, an equal aggregate Principal Amount of Physical Securities of
authorized denominations and the same tenor.

     (e) Any Physical Security constituting a Restricted Security delivered in exchange for an
interest in the Global Security pursuant to paragraph (c) or (d) above shall, except as otherwise
provided by paragraph (c) of Section 3.10, bear the legend regarding transfer restrictions
applicable to the Physical Securities set forth on the face of the form of Security in Section
2.02.

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

     Section 3.10 . Cancellation and Transfer Provisions. The Company at any time may deliver to
the Trustee for cancellation any Securities previously authenticated and delivered hereunder that
the Company may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the Company has not issued and
sold. The Trustee shall cancel and dispose of all Securities surrendered for registration of
transfer, exchange, payment, purchase, repurchase, conversion (pursuant to Article 6 hereof) or
cancellation in accordance with its customary practices. If the Company shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction of the indebtedness
represented by such Securities unless and until the same are delivered to the Trustee for
cancellation. The Company may not issue new Securities to replace Securities it has paid in full
or delivered to the Trustee for cancellation.

     (a) Transfers to QIBs. The following provisions shall apply with respect to the registration
of any proposed transfer of a Security constituting a Restricted Security to a QIB:

     (i) the Security Registrar shall register the transfer if such transfer is being made
by a proposed transferor who has checked the box provided for on the form of Security
stating, or has otherwise advised the Company and the Security Registrar in writing, that
the sale has been made in compliance with the provisions of Rule 144A to a transferee who

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has signed the certification provided for on the form of Security stating, or has
otherwise advised the Company and the Security Registrar in writing, that it is purchasing
the Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a QIB within the meaning of Rule
144A, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as it has
requested pursuant to Rule 144A or has determined not to request such information and that
it is aware that the transferor is relying upon its foregoing representations in order to
claim the exemption from registration provided by Rule 144A; and

     (ii) if the proposed transferee is an Agent Member, and the Securities to be
transferred consist of Physical Securities which after transfer are to be evidenced by an
interest in the Global Security, upon receipt by the Security Registrar of instructions
given in accordance with the Depositary’s and the Security Registrar’s procedures, the
Security Registrar shall reflect on its books and records the date and an increase in the
Principal Amount of the Global Security in an amount equal to the Principal Amount of the
Physical Securities to be transferred, and the Trustee shall cancel the Physical
Securities so transferred.

     (b) Private Placement Legend. Upon the registration of transfer, exchange or replacement of
Securities not bearing the legends required by Sections 2.02 and 2.05, the Security Registrar shall
deliver Securities that do not bear such legends. Except in the case of a registration of
transfer, exchange or replacement contemplated by the Registration Rights Agreement, upon the
registration of transfer, exchange or replacement of Securities bearing the legends required by
Sections 2.02 and 2.05, the Security Registrar shall deliver only Securities that bear such legends
unless there is delivered to the Security Registrar an Opinion of Counsel reasonably satisfactory
to the Company and the Trustee to the effect that neither such legend nor the related restrictions
on transfer are required in order to maintain compliance with the provisions of the Securities Act.

     (c) General. By its acceptance of any Security bearing the legends required by Sections 2.02
and 2.05, each Holder of such a Security acknowledges the restrictions on transfer of such Security
set forth in this Indenture and in such legends and agrees that it will transfer such Security only
as provided in this Indenture.

     The Security Registrar shall retain, in accordance with its customary procedures, copies of
all letters, notices and other written communications received pursuant to this Section 3.10. The
Company shall have the right to inspect and make copies of all such letters, notices or other
written

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communications at any reasonable time upon the giving of reasonable written notice to the
Security Registrar.

     Section 3.11 . CUSIP Numbers. In issuing the Securities, the Company may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall not be affected by
any defect in or omission of such numbers. The Company will promptly notify the Trustee of any
change in the “CUSIP” numbers.

ARTICLE 4

Particular Covenants of the Company

     Section 4.01 . 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 4.02 . 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.

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     The Company hereby initially designates the Trustee as paying agent, Security Registrar,
Custodian and conversion agent and 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 9.11(a) and the third paragraph of Section 9.12. 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 4.03 . Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 9.12, a Trustee, so that there shall at all times be a Trustee
hereunder.

     Section 4.04 . 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 4.04:

     (i) that it will hold all sums held by it as such agent for the payment of the
principal of or interest, including Additional Interest, if any, on the Securities
(whether such sums 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,
including Additional Interest, if any, 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, including
Additional Interest, if any, 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 10:00 a.m. New York City time, on
such date.

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     (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,
including Additional Interest, if any, 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, including Additional Interest, if
any, on the Securities when the same shall become due and payable.

     (c) Anything in this Section 4.04 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 4.04, 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 4.04 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 4.04 is subject to Section
11.03 and Section 11.04.

     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 any funds held by such
other paying agents.

     Section 4.05
. Existence. Subject to Article 8, the Company will do
or cause to be done all things necessary to preserve and keep in full force and effect its
existence and rights (charter and statutory); provided, however, that the Company shall not be
required to preserve any such right if the Company shall determine that the preservation thereof is
no longer desirable in the conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the holders of the Securities.

     Section 4.06 . Maintenance of Properties. The Company will cause all properties used or
useful in the conduct of its business or the business of any Significant Subsidiary to be
maintained and kept in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so that the business
carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this Section shall
prevent the Company from discontinuing the operation or maintenance of any of such properties if
such discontinuance is, in the judgment

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of the Company, desirable in the conduct of its business or
the business of any subsidiary.

     Section 4.07 . Payment of Taxes and Other Claims. The Company will pay or discharge, or
cause to be paid or discharged, before the same may become delinquent, (i) all taxes, assessments
and governmental charges levied or imposed upon the Company or any Significant Subsidiary or upon
the income, profits or property of the Company or any Significant Subsidiary, (ii) all claims for
labor, materials and supplies which, if unpaid, might by law become a lien or charge upon the
property of the Company or any Significant Subsidiary and (iii) all stamps and other duties, if
any, which may be imposed by the United States or any political subdivision thereof or therein in
connection with the issuance, transfer, exchange or conversion of any Securities or with respect to
this Indenture; provided, however, that, in the case of clauses (i) and (ii), the Company shall not
be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge
or claim (A) if the failure to do so will not, in the aggregate, have a material adverse impact on
the Company, or (B) if the amount, applicability or validity is being contested in good faith by
appropriate proceedings.

     Section 4.08 . Rule 144A Information Requirement. Within the period prior to the expiration
of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or
any successor provision), the Company covenants and agrees that it shall, during 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 and it will take such further
action as any holder or beneficial holder of such Securities or such Common Stock may reasonably
request, 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.
Upon the request of any holder or any beneficial holder of the Securities or such Common Stock, the
Company will deliver to such holder a written statement as to whether it has complied with such
requirements.

     Section 4.09 . Resale of Certain Securities. During the period beginning on the date of
issuance of the Securities and ending on the date that is two years
thereafter, the Company shall not, and shall not permit any of its “affiliates” (as defined
under Rule 144 under the Securities Act or any successor provision thereto) to, resell any
Securities which constitute “restricted securities” under

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Rule 144 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 4.10 . Commission Filings and Reports. The Company covenants to comply with Section
314(a) of the Trust Indenture Act as it relates to reports, information and documents that the
Company may be required to file with the Trustee pursuant to such Section 314(a) and with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act or otherwise by the Exchange Act,
the Trust Indenture Act or other rules and regulations of the Commission and to file such reports,
information and documents with the Trustee within 15 calendar days after the same is filed with the
Commission; provided that in each case the delivery of materials to the Trustee by electronic means
or filing of documents pursuant to the Commission’s “EDGAR” system (or any successor electronic
filing system) shall be deemed to constitute “filing” with the Trustee for purposes of this Section
4.10. 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
rely exclusively on Officers’ Certificates).

     Section 4.11 . 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 4.12 . Additional Interest under the Registration Rights Agreement. If at any time
Additional Interest become payable by the Company pursuant to the Registration Rights Agreement,
the Company shall promptly deliver to the Trustee a certificate to that effect and stating (i) the
amount of such Additional Interest that is payable and (ii) the date on which such Additional
Interest is payable pursuant to the terms of the Registration Rights Agreement. Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Additional Interest is payable. If the Company has paid Additional Interest
directly to the Persons entitled to such Additional Interest, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.

     Section 4.13 . Stay; Extension and Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any
stay, extension or usury law or other law which would prohibit or forgive the Company from
paying all or any portion of the principal of or interest, including Additional Interest, if any,
on the Securities as contemplated herein, wherever

44

 

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 it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.

     Section 4.14 . Compliance Certificate. The Company shall deliver to the Trustee, within one
hundred twenty (120) days after the end of each fiscal year of the Company, an Officer’s
Certificate, stating whether or not to the knowledge of the signer thereof the Company is in
default in the performance and observance of any of the terms, provisions and conditions of this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and,
if the Company shall be in default, specifying all such defaults and the nature and the status
thereof of which the signer may have knowledge.

     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 4.14 shall be delivered to a Responsible
Officer of the Trustee at its Corporate Trust Office.

ARTICLE 5

Fundamental Changes and Repurchases Thereupon

     Section 5.01 . Repurchase at Option of Holders Upon a Fundamental Change.

     (a) Generally. If a Fundamental Change occurs at any time prior to the Maturity of the
Securities, then each Securityholder shall have the right, at such Holder’s option, to require the
Company to repurchase all of such Holder’s Securities or any portion thereof that is a multiple of
$1,000 Principal Amount, on a Business Day specified by the Company that is not less than 20 nor
more than 35 calendar days after the date of the Fundamental Change Company Notice (as defined
below), subject to extension to comply with applicable law (the “Fundamental Change Repurchase
Date”), at a repurchase price equal to 100%
of the Principal Amount thereof, together with accrued and unpaid interest thereon, including
Additional Interest, if any, to, but excluding, the Fundamental Change Repurchase Date (the
“Fundamental Change Repurchase Price”);

45

 

provided, however, that if Securities are repurchased
pursuant to this Section 5.01 on any Interest Payment Date, the interest, including Additional
Interest, if any, payable in respect of such Interest Payment Date shall be payable to the Holders
of record as of the corresponding Record Date.

     Repurchases of Securities under this Section 5.01 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, prior to the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, subject to extension to comply with applicable law, of
a duly completed notice (the “Fundamental Change Repurchase Notice”) in the form set forth
on the reverse of the Securities or otherwise specifying:

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

     (B) the portion of the Principal Amount of Securities to be repurchased,
which must be $1,000 or an integral multiple thereof; and

     (C) that the Securities are to be repurchased by the Company pursuant to
the applicable provisions of the Securities and the Indenture; and

     (ii) delivery or book-entry transfer of the Securities 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 applicable
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 5.01 only if the Securities 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.

     Any purchase by the Company contemplated pursuant to the provisions of this Section 5.01 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 Securities.

46

 

     Notwithstanding anything herein to the contrary, any Holder delivering to the Trustee (or
other Paying Agent appointed by the Company) the Fundamental Change Repurchase Notice contemplated
by this Section 5.01 shall have the right to withdraw such Fundamental Change Repurchase Notice at
any time prior to the close of business on the Fundamental Change Repurchase Date by delivery of a
written notice of withdrawal to the Trustee (or other Paying Agent appointed by the Company) in
accordance with Section 5.03 below.

     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.

     (b) Fundamental Change Company Notice. On or before the 20th day after the
occurrence of a Fundamental Change, the Company shall provide to all Holders of record of the
Securities and the Trustee and Paying Agent a notice (the “Fundamental Change Company Notice”) of
the occurrence of such Fundamental Change and of the repurchase right 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 Company Notice, the Company shall publish a notice containing the
information included therein once in a newspaper of general circulation in The City of New York or
publish such information on the Company’s website or through such other public medium as the
Company may use at such time.

     Each Fundamental Change Company Notice shall specify:

     (i) the events causing the Fundamental Change;

     (ii) the date of the Fundamental Change;

     (iii) the last date on which a Holder may exercise the repurchase right;

     (iv) the Fundamental Change Repurchase Price;

     (v) the Fundamental Change Repurchase Date;

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

     (vii) if applicable, the applicable Conversion Rate and any adjustments to the
applicable Conversion Rate;

     (viii) if applicable, that the Securities with respect to which a Fundamental Change
Repurchase Notice has been delivered by a Holder

47

 

may be converted only if the Holder
withdraws the Fundamental Change Repurchase Notice in accordance with Section 5.03; and

     (ix) the procedures that Holders must follow to require the Company to repurchase
their Securities.

     No failure of the Company to give the foregoing notices and no defect therein shall limit any
Holder’s repurchase rights or affect the validity of the proceedings for the repurchase of the
Securities pursuant to this Section 5.01.

     (c) No Payment During Events of Default. There shall be no repurchase of any Securities
pursuant to this Section 5.01 if there has occurred (prior to, on or after, as the case may be, the
giving, by the Holders of such Securities, of the required Fundamental Change Repurchase Notice)
and is continuing an Event of Default (other than a default that is cured by the payment of the
Fundamental Change Repurchase Price with respect to such Securities). The Paying Agent will
promptly return to the respective Holders thereof any Securities (i) with respect to which a
Fundamental Change Repurchase Notice has been withdrawn in compliance with this Indenture, or (ii)
held by it during the continuance of an Event of Default (other than a default that is cured by the
payment of the Fundamental Change Repurchase Price with respect to such Securities) in which case,
upon such return, the Fundamental Change Repurchase Notice with respect thereto shall be deemed to
have been withdrawn.

     (d) Payment of Fundamental Change Repurchase Price. The Securities to be repurchased pursuant
to this Section 5.01 shall be paid for in cash.

     Section 5.02 . Effect of Fundamental Change Repurchase Notice. Upon receipt by the Paying
Agent of the Fundamental Change Repurchase Notice specified in Section 5.01(a), the Holder of the
Security in respect of which such Fundamental Change Repurchase Notice was given shall (unless such
Fundamental Change Repurchase Notice is withdrawn as specified in the following two paragraphs)
thereafter be entitled to receive solely the Fundamental Change Repurchase Price with respect to
such Security. Such Fundamental Change Repurchase Price shall be paid to such Holder, subject to
receipt of funds by the Paying Agent, promptly following the later of (x) the Fundamental Change
Repurchase Date with respect to such Security (provided the conditions in Section 5.01(a) have been
satisfied) and (y) the time of delivery of such Security to the Paying Agent by the Holder thereof
in the manner required by Section 5.01(b).

     Section 5.03 . Withdrawal of Fundamental Change Repurchase Notice.

     (a) 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 Company Notice
at any time prior to

48

 

the close of business on the Business Day immediately preceding the
Fundamental Change Repurchase Date, specifying:

     (i) the Principal Amount of the Securities with respect to which such notice of
withdrawal is being submitted;

     (ii) if Physical Securities have been issued, the certificate numbers of the
withdrawn Securities; and

     (iii) the Principal Amount of such Securities 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 Securities are not in certificated form, the notice must comply with
appropriate procedures of the Depositary.

     Section 5.04 . Deposit of Fundamental Change Repurchase Price. Prior to 10:00 a.m. (local
time in The City of New York) on the Fundamental Change Repurchase Date, the Company shall deposit
with the Trustee or with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of
either of them is acting as the Paying Agent, shall segregate and hold in trust as provided herein)
an amount of money (in immediately available funds if deposited on such Business Day) sufficient to
pay the Fundamental Change Repurchase Price, of all the Securities or portions thereof that are to
be repurchased as of the Fundamental Change Repurchase Date. The Company shall promptly notify the
Trustee in writing of the amount of any deposits of cash made pursuant to this Section 5.04. If
the Paying Agent holds cash sufficient to pay the Fundamental Change Repurchase Price of any
Security for which a Fundamental Change Repurchase Notice has been tendered and not withdrawn in
accordance with this Indenture as of the close of business on the Fundamental Change Repurchase
Date, then immediately following the Fundamental Change Repurchase Date, (a) such Security will
cease to be outstanding and interest will cease to accrue thereon and (b) all other rights of the
Holder in respect thereof will terminate (other than the right to receive the Fundamental Change
Repurchase Price and previously accrued and unpaid interest, including Additional Interest, if any,
upon delivery or transfer of such Security).

     Section 5.05 . Securities Repurchased in Whole or in Part. Any Security that is to be
repurchased, whether in whole or in part, shall be surrendered at the
office of the Paying Agent (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 such Holder’s attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such
Security, without

49

 

service charge, a new Security or Securities, of any authorized denomination as
requested by such Holder in aggregate Principal Amount equal to, and in exchange for, the portion
of the Principal Amount of the Security so surrendered which is not repurchased.

     Section 5.06 . Covenant to Comply With Securities Laws Upon Repurchase of Securities. In
connection with any offer to repurchase Securities under Section 5.01 (provided that such offer or
repurchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the time of such offer
or repurchase), the Company shall (i) comply with Rule 13e-4 and Rule 14e-1 under the Exchange Act,
(ii) file the related Schedule TO (or any successor schedule, form or report) under the Exchange
Act, and (iii) otherwise comply with all Federal and state securities laws so as to permit the
rights and obligations under Section 5.01 to be exercised in the time and in the manner specified
in Section 5.01.

     Section 5.07 . Repayment to the Company. The Trustee and the Paying Agent shall return to
the Company any cash that remains unclaimed, together with interest, including Additional Interest,
if any, or dividends, if any, thereon, held by them for the payment of the Fundamental Change
Repurchase Price; provided that to the extent that the aggregate amount of cash deposited by the
Company pursuant to Section 5.04 exceeds the aggregate Fundamental Change Repurchase Price of the
Securities or portions thereof which the Company is obligated to repurchase as of the Fundamental
Change Repurchase Date, then as soon as practicable following the Fundamental Change Repurchase
Date, the Trustee or the Paying Agent, as the case may be, shall return any such excess to the
Company.

ARTICLE 6

Conversion

     Section 6.01 . Right to Convert.

     (a) Subject to and upon compliance with the provisions of this Indenture, each Holder shall
have the right, at such Holder’s option, at any time following the Issue Date of the Securities
hereunder through the close of business on the second Scheduled Trading Day immediately prior to
the Stated Maturity to convert the Principal Amount of any such Securities, or any portion of such
Principal Amount which is $1,000 or an integral multiple thereof at the Conversion Rate then
in effect, (x) on or after November 15, 2011, without regard to the conditions described in clauses
(i) through (iv) below and (y) prior to November 15, 2011, only upon the satisfaction of any of the
following conditions:

50

 

     (i) A Holder may surrender all or a portion of its Securities for conversion during
any fiscal quarter (and only during such fiscal quarter) commencing after March 31, 2007
if the Last Reported Sale Price for the Common Stock for at least 20 Trading Days during
the period of 30 consecutive Trading Days ending on the last Trading Day of the
immediately preceding fiscal quarter is greater than or equal to 130% of the Conversion
Price in effect on such last Trading Day.

     (ii) A Holder may surrender its Securities for conversion during the five Business
Day period after any 10 consecutive Trading Day period (the “Measurement Period”) in which
the Trading Price per $1,000 principal amount of Securities, as determined following a
request by a Holder in accordance with the procedures set forth in this Section
6.01(a)(i), for each day of such period was less than 98% of the product of the Last
Reported Sale Price of the Common Stock and the applicable Conversion Rate. In connection
with any conversion in accordance with this Section 6.01(a)(i), the Bid Solicitation Agent
shall have no obligation to determine the Trading Price of the Securities unless requested
by the Company; and the Company shall have no obligation to make such request unless a
Holder provides the Company with reasonable evidence that the Trading Price per $1,000
principal amount of Securities would be less than 98% of the product of the Last Reported
Sale Price of the Common Stock and the applicable Conversion Rate. Promptly after
receiving such evidence, the Company shall instruct the Bid Solicitation Agent to
determine the Trading Price of the Securities beginning on the next Trading Day and on
each successive Trading Day until the Trading Price per $1,000 principal amount of
Securities is greater than or equal to 98% of the product of the Last Reported Sale Price
of the Common Stock and the applicable Conversion Rate.

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

     (A) issue to all or substantially all holders of Common Stock rights
entitling them to purchase, for a period expiring within 60 days after the date
of the distribution, shares of Common Stock at less than the average of the Last
Reported Sale Prices of a share of Common Stock for the 10 consecutive Trading
Day period ending on the Trading Day preceding the announcement of such
issuance; or

     (B) distribute to all or substantially all holders of Common Stock assets,
debt securities or rights to purchase securities of the Company, which
distribution has a per share Fair Market Value, as reasonably determined by the
Company’s Board of Directors in good faith, exceeding 10% of the Last Reported

51

 

Sale Price of the Common Stock on the Trading Day preceding the declaration date
for such distribution,

then,
in each case, the Company shall notify the Holders, in the manner
provided in Section 13.02, at least 20 Scheduled Trading Days prior to the Ex Date for
such distribution. Once the Company has given such notice, Holders may surrender
Securities for conversion at any time until the earlier of 5:00 p.m., New York City time,
on the Business Day immediately prior to such Ex Date or the Company’s announcement that
such distribution will not take place, even if the Securities are not otherwise
convertible at such time.

     (iv) (A) If the Company is party to a transaction described in clause (2) of the
definition of Fundamental Change (without, for the avoidance of doubt, giving effect to
the proviso set forth in the definition thereof relating to Publicly Traded Securities),
the Company shall notify Holders, in the manner provided in Section
13.02, at least 20 Scheduled Trading Days prior to the anticipated effective date for
such transaction. Once the Company has given such notice, Holders may surrender Securities
for conversion at any time until 20 calendar days after the actual effective date of such
transaction.

If a Fundamental Change of the type described in clause (1) or (5) in the definition
thereof occurs, Holders may surrender Securities for conversion at any time beginning on
the actual effective date of such Fundamental Change until and including the date that is
20 calendar days after the actual effective date of such transaction or, if later, until
the related Fundamental Change Repurchase Date.

     (b) For purposes of this Section 6.01, and notwithstanding the definitions contained in
Section 1.01, the term “Trading Day” shall mean a day during which (A) trading in the Common Stock
generally occurs on the principal U.S. national or regional securities exchange or market on which
the Common Stock is listed or admitted for trading, (B) there is no Market Disruption Event and (C)
a Last Reported Sale Price is available on the principal U.S. national or regional securities
exchange or market on which the Common Stock is listed or admitted for trading. If the Common
Stock (or other security for which a Last Reported Sale Price must be determined for purposes of
this Section 6.01) is not listed or admitted for trading on a U.S. national or regional securities
exchange or
market, then, for purposes of this Section 6.01, “Trading Day” shall mean a Business Day.

     (c) Notwithstanding the foregoing, a Security in respect of which a Holder has delivered a
Fundamental Change Repurchase Notice exercising such Holder’s option to require the Company to
repurchase such Security may be

52

 

converted only if such notice of exercise is withdrawn in
accordance with Article 5 hereof prior to the close of business on the Fundamental Change
Repurchase Date.

     Section 6.02 . Conversion Procedure.

     (a) Each Security shall be convertible at the office of the Conversion Agent.

     (b) In order to exercise the conversion right with respect to any interest in Global
Securities, the Holder must complete the appropriate instruction form for conversion pursuant to
the Depositary’s book-entry conversion program, furnish appropriate endorsements and transfer
documents if required by the Company or the Trustee or Conversion Agent, and pay the funds, if any,
required by this Section 6.02 and any transfer taxes if required pursuant to Section 6.08. In
order to exercise the conversion right with respect to any Securities in certificated form, the
Holder of any such Securities to be converted, in whole or in part, shall:

     (i) complete and manually sign the conversion notice provided on the back of the
Security (the “Conversion Notice”) or facsimile of the conversion notice and deliver such
notice to a Conversion Agent;

     (ii) surrender the Security to a Conversion Agent;

     (iii) if required, furnish appropriate endorsements and transfer documents,

     (iv) make any payment required under Section 6.03(d); and

     (v) if required, pay any transfer or similar tax.

     The date on which the Holder satisfies all of the applicable requirements set forth above is
the “Conversion Date.”

     (c) Each Conversion Notice shall state the name or names (with address or addresses) in which
any certificate or certificates for shares of Common Stock which shall be issuable on such
conversion shall be issued. All such Securities surrendered for conversion shall, unless the
shares issuable on conversion are to be issued in the same name as the registration of such
Securities, be duly endorsed
by, or be accompanied by instruments of transfer in form satisfactory to the Company duly
executed by, the Holder or his duly authorized attorney.

     (d) On the third Business Day immediately following the Conversion Date, in the case of any
conversion settled pursuant to Section 6.03(a), or the last day of the Observation Period, in the
case of any conversion settled pursuant to Section 6.03(b), as applicable, subject to compliance
with any restrictions on

53

 

transfer if shares issuable on conversion are to be issued in a name other
than that of the Holder (as if such transfer were a transfer of the Securities (or portion thereof)
so converted), the Company shall issue and shall deliver to such Holder at the office of the
Conversion Agent, a certificate or certificates for the number of full shares of Common Stock
issuable and a check or cash for any cash amounts payable in respect of such conversion in
accordance with the provisions of this Article 6. In case any Securities of a denomination greater
than $1,000 shall be surrendered for partial conversion, the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of the Securities so surrendered, without charge to
him, new Securities in authorized denominations in an aggregate Principal Amount equal to the
unconverted portion of the surrendered Securities.

     Each conversion shall be deemed to have been effected as to any such Securities (or portion
thereof) on the date on which the requirements set forth above in this Section 6.02 have been
satisfied as to such Securities (or portion thereof), and the person in whose name any certificate
or certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed
to have become on said date the Holder of record of the shares represented thereby; provided,
however, that in case of any such surrender on any date when the stock transfer books of the
Company shall be closed, the person or persons in whose name the certificate or certificates for
such shares are to be issued shall be deemed to have become the record Holder thereof for all
purposes on the next day on which such stock transfer books are open, but such conversion shall be
at the Conversion Rate in effect on the date upon which such Securities shall be surrendered.

     (e) Upon the conversion of an interest in Global Securities, the Trustee (or other Conversion
Agent appointed by the Company) shall make a notation on such Global Securities as to the reduction
in the Principal Amount represented thereby. The Company shall notify the Trustee in writing of any
conversions of Securities effected through any Conversion Agent other than the Trustee.

     (f) Each stock certificate representing Common Stock issued upon conversion of the Securities
that are Restricted Securities shall bear the legend in substantially the form of Exhibit B
hereto.

     Section 6.03 . Settlement Upon Conversion.

     (a) With respect to any conversion of Securities for which the Conversion Date falls on or
prior to the date of Net Share Settlement Approval, if any, the Company shall, subject to the
provisions of this Article 6, deliver to converting Holders, in respect of each $1,000 Principal
Amount of Securities being converted, a number of shares of Common Stock equal to the applicable
Conversion Rate.

54

 

     (b) With respect to any conversion of Securities for which the Conversion Date falls after the
date of Net Share Settlement Approval, the Company shall deliver to converting Holders, in respect
of each $1,000 Principal Amount of Securities being converted, a “Settlement Amount” equal to the
sum of the Daily Settlement Amounts for each of the 40 Trading Days during the Observation Period
for such Security. The “Daily Settlement Amount” for each of the 40 Trading Days during the
Observation Period shall consist of:

     (i) cash equal to the lesser of (x) $25 and (y) the Daily Conversion Value, and

     (ii) to the extent the Daily Conversion Value exceeds $25, a number of shares of
Common Stock equal to (x) the difference between the Daily Conversion Value and $25,
divided by (y) the Daily VWAP.

     (c) Upon conversion, Holders shall not receive any separate cash payment for accrued and
unpaid interest, including Additional Interest, if any, unless such conversion occurs between a
Record Date and the Interest Payment Date to which it relates.

     (d) If Securities are converted after 5:00 p.m., New York City time, on a Record Date for the
payment of interest, Holders of such Securities at 5:00 p.m., New York City time, on such Record
Date will receive the interest and Additional Interest, if any, payable on such Securities on the
corresponding Interest Payment Date notwithstanding the conversion. Securities 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 immediately following Interest Payment Date, must be accompanied by
funds equal to the amount of interest and Additional Interest, if any, payable on the Securities so
converted; provided that no such payment need be made (i) if the Company has specified a
Fundamental Change Repurchase date that is after a Record Date and on or prior to the corresponding
Interest Payment Date; (ii) in respect of any conversion which occurs after the Record Date for the
interest payment due on February 15, 2012 or (iii) to the extent of any overdue interest, if any
overdue interest exists at the time of conversion with respect to such Security.

     (e) The Company shall not issue fractional shares of Common Stock upon conversion of
Securities. If multiple Securities shall be surrendered for
conversion at one time by the same Holder, the number of full shares which shall be issuable
upon conversion shall be computed on the basis of the aggregate Principal Amount of the Securities
(or specified portions thereof to the extent permitted hereby) so surrendered. If any fractional
share of stock would be issuable upon the conversion of any Securities, the Company shall make
payment therefor to the Holder of such Securities in cash equal to the fraction of a share of
Common Stock otherwise issuable multiplied by the Daily VWAP for the

55

 

Conversion Date, in the case
of any conversion settled pursuant to Section 6.03(a), or for the last day of the Observation
Period, in the case of any conversion settled pursuant to Section 6.03(b).

     Section 6.04 . Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from
time to time by the Company if any of the following events occurs, except that the Company will not
make any adjustment if holders of Securities may participate, as a result of holding the
Securities, in the transactions described without having to convert their Securities.

     (a) If the Company, at any time or from time to time while any of the Securities are
outstanding, issues shares of its Common Stock as a dividend or distribution on shares of Common
Stock, or if the Company subdivides or combines its Common Stock, then the Conversion Rate will be
adjusted based on the following formula:

     where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Ex Date of such
dividend or distribution, or the effective date of such subdivision or combination,
as applicable;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after such event;
	 
	 	 	 	 	 	 
	 

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

	 	OS’
	 	=
	 	the number of shares of Common Stock outstanding immediately after such
Ex Date or effective date.

Such adjustment shall become effective immediately after the opening of business on the day
following the record date for such dividend or distribution, or the date fixed for determination
for such share split or share combination. If any dividend or distribution of the type described
in this Section 6.04(a) is declared but not so paid or made, the Conversion Rate shall again be
adjusted to the Conversion Rate
which would then be in effect if such dividend or distribution had not been declared.

     (b) If the Company, at any time or from time to time while any of the Securities are
outstanding, issues to all or substantially all holders of its outstanding shares of Common Stock
any rights or warrants entitling them for a

56

 

period of not more than 60 calendar days to subscribe
for or purchase shares of Common Stock (or securities convertible into or exchangeable or
exercisable for Common Stock) at a price per share (or having a conversion, exchange or exercise
price per share) less than the average of the Last Reported Sale Prices of Common Stock for the 10
consecutive Trading Day period ending on the Business Day immediately preceding the date of
announcement of such issuance, the Conversion Rate shall be adjusted based on the following
formula:

     where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Ex Date for such
issuance;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Ex Date for such
issuance;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately after the Ex
Date for such issuance;
	 
	 	 	 	 	 	 
	 

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

	 	Y
	 	=
	 	the number of shares of Common Stock equal to the aggregate price payable
to exercise such rights divided by the average of the Last Reported Sale Prices of
Common Stock for the 10 consecutive Trading Day period ending on the Business Day
immediately preceding the date of announcement of the issuance of such rights.

     To the extent that shares of Common Stock (or securities convertible into or exchangeable or
exercisable for shares of Common Stock) are not delivered pursuant to such rights or warrants, upon
the expiration or termination of such rights or warrants, the Conversion Rate shall be readjusted
to the Conversion Rate which would then be in effect had the adjustments made upon the issuance of
such rights or warrants been made on the basis of the delivery of only the number of shares of
Common Stock (or securities convertible into or exchangeable or exercisable for shares of Common
Stock) actually delivered. In the event that
such rights or warrants are not so issued, the Conversion Rate shall again be adjusted to be
the Conversion Rate which would then be in effect if the date fixed for the determination of
stockholders entitled to receive such rights or warrants 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 the

57

 

average of the Last Reported Sale Prices of Common Stock for the 10
consecutive Trading Day period ending on the Business Day immediately preceding the date of
announcement of such issuance, and in determining the aggregate offering price of such shares of
Common Stock, there shall be taken into account any consideration received for such rights or
warrants and the value of such consideration, if other than cash, to be determined in good faith by
the Board of Directors of the Company.

For the purposes of this Section 6.04(b), rights or warrants distributed by the Company to all
holders of its Common Stock entitling them to subscribe for or purchase shares of the Company’s
capital stock (either initially or under certain circumstances), which rights or warrants, until
the occurrence of a specified event or events (a “Trigger Event”): (1) are deemed to be transferred
with such shares of Common Stock; (2) are not exercisable; and (3) are also issued in respect of
future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this
Section 6.04(b), (and no adjustment to the Conversion Rate under this Section 6.04(b) will 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 Section 6.04(b). If any such right or warrant, including
any such existing rights or warrants distributed prior to the date of this Indenture, 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 6.04(b) was made, (1) in the case of any such rights or warrants which shall all have
been redeemed or repurchased without exercise by any Holders thereof, the Conversion Rate shall be
readjusted upon such final 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 of Common Stock with respect to such rights or warrants (assuming such
holder had retained such rights or warrants), made to all applicable holders of Common Stock as of
the date of such
redemption or repurchase, and (2) in the case of such rights or warrants which 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.

58

 

     (c) If the Company, at any time or from time to time while the Securities are outstanding,
distributes shares of any class of Capital Stock of the Company, evidences of its Indebtedness or
other assets or property of the Company to all or substantially all holders of its Common Stock,
excluding:

     (i) dividends or distributions referred to in Section 6.04(a);

     (ii) rights or warrants referred to in Section 6.04(b); and

     (iii) dividends or distributions referred to in Section 6.04(d);

     then the conversion rate will be adjusted based on the following formula:

     where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Ex Date for such
distribution;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Ex Date for such
distribution;
	 
	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the average of the Last Reported Sale Prices of the 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
Company) of the shares of Capital Stock, evidences of Indebtedness, assets or
property distributed with respect to each outstanding share of the Common Stock on
the Ex Date for such distribution.

     Such adjustment shall become effective immediately prior to the opening of business on the day
following the record date for such distribution. If the Board of Directors of the Company
determines the Fair Market Value of any distribution for purposes of this Section 6.04(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 average of the Last
Reported Sale Prices of the Common Stock.

     With respect to an adjustment pursuant to this Section 6.04(c) where there has been a payment
of a dividend or other distribution on the Common Stock or

59

 

shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate in effect immediately before 5:00 p.m., New York City time, on the
effective date of such Spin-Off shall be increased based on the following formula:

     where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the effective date of
the adjustment;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the effective date of the
adjustment;
	 
	 	 	 	 	 	 
	 

	 	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 ten consecutive Trading Day period after the
effective date of the Spin-Off; and
	 
	 	 	 	 	 	 
	 

	 	MP0
	 	=
	 	the average of the Last Reported Sale Prices of Common Stock over the
first ten consecutive Trading Day period after the effective date of the Spin-Off.

     The adjustment to the Conversion Rate under the preceding paragraph will occur on the tenth
Trading Day from, and including, the effective date of the Spin-Off.

     (d) If any cash dividend or other distribution is made to all or substantially all holders of
Common Stock, the Conversion Rate shall be adjusted based on the following formula:

     where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the Ex Date for such
distribution;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the Ex Date for such
distribution;

60

 

	 	 	 	 	 	 	 
	 

	 	SP0
	 	=
	 	the Last Reported Sale Price of a share 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.

     (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for 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 per share of
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, the Conversion Rate shall be increased based on the
following formula:

     where

	 	 	 	 	 	 	 
	 

	 	CR0
	 	=
	 	the Conversion Rate in effect immediately prior to the effective date of
the adjustment;
	 
	 	 	 	 	 	 
	 

	 	CR’
	 	=
	 	the Conversion Rate in effect immediately after the effective date of the
adjustment;
	 
	 	 	 	 	 	 
	 

	 	AC
	 	=
	 	the Fair Market Value (as determined by the Board of Directors) of the
aggregate consideration paid or payable for shares purchased in such tender or
exchange offer;
	 
	 	 	 	 	 	 
	 

	 	OS0
	 	=
	 	the number of shares of Common Stock outstanding immediately prior to the
date such tender or exchange offer expires;
	 
	 	 	 	 	 	 
	 

	 	OS’
	 	=
	 	the number of shares of Common Stock outstanding immediately after the
date such tender or exchange offer expires; and
	 
	 	 	 	 	 	 
	 

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

61

 

The adjustment to the Conversion Rate under this Section 6.04(e) shall occur on the tenth Trading
Day from, and including the Trading Day next succeeding the date such tender or exchange offer
expires.

     If the Company is obligated to repurchase shares pursuant to any such tender or exchange
offer, but the Company is permanently prevented by applicable law from effecting any such purchases
or all 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 had not been made.

     (f) For purposes of this Section 6.04, “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 stockholders entitled to receive such cash, securities or other
property (whether such date is fixed by the Board of Directors or by statute, contract or
otherwise).

     (g) If application of the formulas provided in Sections 6.04(a), 6.04(b), 6.04(c), 6.04(d) or
6.04(e) would result in a decrease in the Conversion Rate, no adjustment to the Conversion Rate
shall be made except in the case of a subdivision or split of the Company’s Common Stock.

     (h) To the extent permitted by applicable law and subject to subsection (i) below, the Company
from time to time may increase the Conversion Rate by any amount for any period of time if the
period is at least 20 days, the increase is irrevocable during the period and the Board of
Directors shall have made a determination that such increase would be in the best interests of the
Company, which determination shall be conclusive. Whenever the Conversion Rate is increased
pursuant to this Section 6.04(g), the Company shall mail to Holders of record of the Securities a
notice of the increase at least 15 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.

     (i) The Company may make such increases in the Conversion Rate, in addition to any adjustments
required by Section 6.04(a), 6.04(b), 6.04(c), 6.04(d), 6.04(e) or 6.04(f), as the Board of
Directors considers to be advisable to avoid or diminish any income tax to holders of Common Stock
or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights
to acquire stock) or from any event treated as such for income tax purposes.

     (j) All calculations under this Article 6 shall be made by the Company and shall be made to
the nearest cent or to the nearest one-ten-thousandth of a share, as the case may be. No
adjustment shall be made for the Company’s

62

 

issuance of Common Stock or convertible or exchangeable
securities or rights to purchase Common Stock or convertible or exchangeable securities, other than
as provided in this Section 6.03.

     (k) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent an Officers’ Certificate setting forth the
Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring
such adjustment. Unless and until a Responsible Officer of the Trustee shall have received such
Officers’ Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the
Conversion Rate and may assume without inquiry that the last Conversion Rate of which it has
knowledge is still in effect. Promptly after delivery of such certificate, the Company shall
prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which each adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Rate to each Securityholder at such Holder’s last address appearing on
the list of Securityholders provided for in Section 3.06, within 20 days after execution thereof.
Failure to deliver such notice shall not affect the legality or validity of any such adjustment.

     (l) In any case in which this Section 6.04 provides that an adjustment shall become effective
immediately after a record date for an event, the Company may defer until the occurrence of such
event (i) issuing to the Holder of any Securities converted after such record date and before the
occurrence of such event the additional shares of Common Stock issuable upon such conversion by
reason of the adjustment required by such event over and above the Common Stock issuable upon such
conversion before giving effect to such adjustment and (ii) paying to such Holder any amount in
cash in lieu of any fraction pursuant to Section 6.03.

     (m) For purposes of this Section 6.04, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company so long as the Company
does not pay any dividend or make any distribution on shares of Common Stock held in the treasury
of the Company, but shall include shares issuable in respect of scrip certificates issued in lieu
of fractions of shares of Common Stock.

     (n) No adjustment to the Conversion Rate shall be made pursuant to this Section 6.04 if the
Holders of the Securities may participate in the transaction that would otherwise give rise to an
adjustment pursuant to this Section 6.04.

     (o) In no event will the total number of shares of Common Stock issuable upon conversion
exceed 196.0784 shares of Common Stock per $1,000 Principal Amount of Securities, whether as a
result of an increase in the Conversion Rate in connection with a Fundamental Change or otherwise,
subject

63

 

in each case to adjustments in the same manner as the Conversion Rate as set forth in this
Section 6.04.

     Section 6.05 . Effect of Reclassification, Consolidation, Merger or Sale. If any of the
following events occur:

     (i) any reclassification or change of shares of Common Stock issuable upon conversion
of the Securities (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 subdivision or combination, or any
other change for which an adjustment is provided in Section 6.04(c));

     (ii) any consolidation, merger or combination to which the Company is a party other
than a merger in which the Company is the continuing corporation and which does not result
in any reclassification of, or change (other than in par value, or from par value to no
par value, or from no par value to par value, or as a result of a subdivision or
combination) in outstanding shares of Common Stock; or

     (iii) any sale, lease or other transfer of all or substantially all of the properties
and assets of the Company and its Subsidiaries to any other Person as a result of which
holders of Common Stock shall be entitled to receive stock, securities or other property
or assets (including cash or any combination of the foregoing) with respect to or in
exchange for such Common Stock,

then the Company or the successor or purchasing person, as the case may be, shall execute with the
Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at
the date of execution of such supplemental indenture) providing that the Securities shall be
convertible into the kind and amount of shares of stock, securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation, merger, combination,
sale or conveyance by a holder of a number of shares of Common Stock issuable upon conversion of
such Securities (assuming, for such purposes, a sufficient number of authorized shares of Common
Stock available to convert all such Securities) immediately prior to such reclassification, change,
consolidation, merger, combination, sale or conveyance (the “Reference Property”). However, if, at
the effective time of such transaction, the Company has received Net Share Settlement Approval, any
amount otherwise payable in cash upon settlement of conversion of Securities shall continue to be
payable in cash, and each Securityholder shall be entitled thereafter to convert its Securities
into cash (up to the aggregate Principal Amount thereof) and Reference Property in the same
proportions provided under Section 6.03(b) with respect to settlement of conversions in cash and
shares of Common Stock. If the transaction causes Common Stock to be converted into the right to
receive more than a single type of

64

 

consideration (determined based in part upon any from of
stockholder election), the Reference Property into which the Securities will be convertible shall
be deemed to be the weighted average of the types and amounts of consideration
received by the holders of Common Stock that affirmatively make such election. 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 6. If, in the case of any such reclassification,
change, consolidation, merger, combination, sale or conveyance, the stock, the Reference Property
receivable thereupon by a holder of Common Stock includes shares of stock, securities or other
property or assets (including cash) of a corporation other than the successor or purchasing
corporation, as the case may be, in such reclassification, change, consolidation, merger,
combination, sale or conveyance, then such supplemental indenture shall also be executed by such
other corporation and shall contain such additional provisions to protect the interests of the
Holders of the Securities as the Board of Directors shall reasonably consider necessary by reason
of the foregoing.

     The Company shall cause notice of the execution of such supplemental indenture to be mailed to
each Holder, at the address of such Holder as it appears on the register of the Securities
maintained by the Registrar, within 20 days after execution thereof. Failure to deliver such
notice shall not affect the legality or validity of such supplemental indenture. The above
provisions of this Section shall similarly apply to successive reclassifications, changes,
consolidations, mergers, combinations, sales and conveyances. If this Section 6.05 applies to any
event or occurrence, Section 6.04 shall not apply.

     Section 6.06 . Adjustments of Average Prices. Whenever a provision of the Indenture requires
the calculation of an average of Last Reported Sale Prices or Daily VWAP over a span of multiple
days, the Company will make appropriate adjustments to account for any adjustment to the Conversion
Rate that becomes effective, or any event requiring an 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 the average is to be calculated.

     Section 6.07 . Adjustments Upon Certain Fundamental Changes.

     (a) If a Holder elects to convert Securities in connection with a Fundamental Change other
than a Fundamental Change resulting from Continuing Directors ceasing to constitute at least a
majority of the Company’s board of directors, the Conversion Rate for such Securities shall be
increased by an additional number of shares of Common Stock (the “Additional Shares”) as described
below. Any conversion occurring at a time when the Securities would be convertible in light of the
expected or actual occurrence of a Fundamental

65

 

Change shall be deemed to have occurred in
connection with such Fundamental Change notwithstanding the fact that a Security may then also be
convertible because another condition to conversion under Section 6.01 has been satisfied.

     (b) The number of Additional Shares shall be determined by reference to the table attached as
Schedule A hereto, based on the date on which the Fundamental Change occurs or becomes
effective (the “Effective Date”) and the price (the “Stock Price”) paid per share of Common Stock
in the Fundamental Change. If the Fundamental Change is a transaction described in clause (2) of
the definition thereof, and holders of Common Stock receive only cash in such Fundamental Change,
the Stock Price shall be the cash amount paid per share. In all other cases, the Stock Price shall
be the average of the Last Reported Sale Prices of Common Stock over the five Trading Day period
ending on the Trading Day preceding the Effective Date of the Fundamental Change.

     (c) The Stock Prices set forth in the first row of the table in Schedule A hereto
shall be adjusted as of any date on which the Conversion Rate of the Securities 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
immediately prior to such adjustment and the denominator of which is the Conversion Rate as so
adjusted. The number of Additional Shares set forth in such table shall be adjusted in the same
manner as the Conversion Rate as set forth in Section 6.04.

     (d) In the event that the exact Stock Prices and Effective Dates relating to a Fundamental
Change are not set forth in the table in Schedule A, then:

     (i) If the 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 higher and lower Stock Price amounts and the two
dates, as applicable, based on a 365-day year.

     (ii) If the Stock Price is greater than $19.00 per share (subject to adjustment in
the same manner as the Conversion Rate as set forth in Section 6.04), no Additional Shares
will be issued upon conversion.

     (iii) If the Stock Price is less than $5.10 per share (subject to adjustment in the
same manner as the Conversion Rate as set forth in Section 6.04), no Additional Shares
will be issued upon conversion.

     Section 6.08 . Taxes on Shares Issued. Any issue of stock certificates on conversions of
Securities shall be made without charge to the converting Holder for any documentary, transfer,
stamp or any similar tax in respect of the issue thereof, and the Company shall pay any and all
documentary, stamp or similar

66

 

issue or transfer taxes that may be payable in respect of the issue
or delivery of shares of Common Stock on conversion of Securities pursuant hereto. The Company
shall not, however, be required to pay any such tax which may be
payable in respect of any transfer involved in the issue and delivery of stock in any name
other than that of the Holder of any Securities converted, and the Company shall not be required to
issue or deliver any such stock certificate unless and until the person or persons requesting the
issue thereof shall have paid to the Company the amount of such tax or shall have established to
the satisfaction of the Company that such tax has been paid.

     Section 6.09 . Reservation of Shares; Shares to be Fully Paid; Compliance With Governmental
Requirements; Listing of Common Stock. The Company shall provide, free from preemptive rights, out
of its authorized but unissued shares or shares held in treasury, sufficient shares of Common Stock
to provide for the conversion of the Securities from time to time as such Securities are presented
for conversion (assuming that, at the time of the computation of such number of shares or
securities, all such Securities would be held by a single Holder).

     Before taking any action that would cause an adjustment increasing the Conversion Rate to an
amount that would cause the Conversion Price to be reduced below the then par value, if any, of the
shares of Common Stock issuable upon conversion of the Securities, the Company will take all
corporate action which may, in the opinion of its counsel, be necessary in order that the Company
may validly and legally issue shares of such Common Stock at such adjusted Conversion Price.

     The Company covenants that all shares of Common Stock that may be issued upon conversion of
Securities shall be newly issued shares or treasury shares, shall be duly authorized, validly
issued, fully paid and non-assessable and shall be free from preemptive rights and free from any
lien or adverse claim.

     The Company shall use its reasonable efforts to list or cause to have quoted any shares of
Common Stock to be issued upon conversion of Securities on each national securities exchange or
over-the-counter or other domestic market on which the Common Stock is then listed or quoted.

     Section 6.10 . Responsibility of Trustee. The Trustee and any other Conversion Agent shall
not at any time be under any duty or responsibility to any Securityholder to determine the
Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate,
or with respect to the nature or extent or calculation of any such adjustment when made, or with
respect to the method employed, or herein or in any supplemental indenture provided to be employed,
in making the same. The Trustee and any other Conversion Agent shall not be accountable with
respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any
securities or property, which

67

 

may at any time be issued or delivered upon the conversion of any
Securities; and the Trustee and any other Conversion Agent make no representations with respect
thereto. Neither the Trustee nor any Conversion Agent shall be responsible for
any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock
certificates or other securities or property or cash upon the surrender of any Securities for the
purpose of conversion or to comply with any of the duties, responsibilities or covenants of the
Company contained in this Article 6. Without limiting the generality of the foregoing, neither the
Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of
any provisions contained in any supplemental indenture entered into pursuant to Section 6.05
relating either to the kind or amount of shares of stock or securities or property (including cash)
receivable by Holders upon the conversion of their Securities after any event referred to in such
Section 6.05 or to any adjustment to be made with respect thereto, but, subject to the provisions
of Section 9.01, may accept as conclusive evidence of the correctness of any
such provisions, and shall be protected in relying upon, the Officers’ Certificate (which the
Company shall be obligated to file with the Trustee prior to the execution of any such supplemental
indenture) with respect thereto.

     Section 6.11 . Notice to Holders Prior to Certain Actions. 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 6.04; 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; 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 any
of its Significant Subsidiaries; or

     (d) of the voluntary or involuntary dissolution, liquidation or winding up of the Company or
any of its Significant 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 appearing on the list of
Securityholders provided for in Section 3.06 of this Indenture, as promptly as practicable but in
any event at least 15 days prior to the applicable date hereinafter specified, a notice stating (x)
the date on which a

68

 

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 6.12 . Stockholder Rights Plan. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 6 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 the Stockholder
Rights Plan and any subsequent stockholder rights agreement adopted by the Company, as any such
agreement may be amended from time to time. If at the time of conversion, however, the rights have
separated from the shares of Common Stock in accordance with the provisions of the applicable
stockholder rights agreement so that the Holders of the Securities would not be entitled to receive
any rights in respect of Common Stock issuable upon conversion of the Securities, the Conversion
Rate will be adjusted at the time of separation as if the Company has distributed to all holders of
Common Stock, shares of Capital Stock of the Company, evidence of indebtedness or assets as
provided in Section 6.04(c), subject to readjustment in the event of the expiration, termination or
redemption of such rights.

     Section 6.13 . Company Determination Final. Any determination that the Company or its Board
of Directors must make pursuant to this Article 6 shall be conclusive if made in good faith and in
accordance with the provisions of this Article 6, absent manifest error, and set forth in a Board
Resolution.

     Section 6.14 . Exchange in Lieu of Conversion.

     (a) If at any time when a Holder surrenders Securities for conversion prior to the Stated
Maturity of the Securities the Company:

     (i) has entered into an agreement with a Financial Institution designated by the
Company (a “Designated Institution”) under which the Designated Institution may accept
such Securities in exchange for shares of Common Stock and cash, as applicable, equal to
the consideration due upon conversion as provided in Section 6.03; and

69

 

     (ii) notifies the Holder surrendering such Securities for conversion by the close of
business on the Business Day immediately following the Conversion Date that it has
directed the Designated Institution to make an exchange in lieu of conversion,

then, notwithstanding anything in this Indenture to the contrary, the Company may direct the
Conversion Agent to surrender such Securities to the Designated Institution for exchange in lieu of
conversion.

     (b) If the Designated Institution accepts Securities surrendered for exchange, it shall
deliver the number of shares of Common Stock and the amount of cash, as applicable, specified in
Section 6.03 to the Conversion Agent and the Conversion Agent shall deliver such shares of Common
Stock and cash, as applicable, to the Holder, within the time periods specified in Section 6.02(d),
which delivery shall be deemed to satisfy the Company’s conversion obligations under this Article 6
with respect to the surrendered Securities. Any Securities so exchanged by such Designated
Institution shall remain Outstanding for all purposes under this Indenture.

     (c) If the Designated Institution agrees to accept any Securities for exchange but does not
timely deliver the related consideration to the Conversion Agent, or if the Designated Institution
does not accept such Securities for exchange, the Company shall, as promptly as practicable
thereafter, convert such Securities into shares of Common Stock and cash, as applicable, in
accordance with the provisions of Section 6.02 and Section 6.03.

     (d) For the avoidance of doubt, in no event will the Company’s designation of a Financial
Institution pursuant to this Section 6.14 require such Financial Institution to accept any
Securities for exchange.

ARTICLE 7

Events of Default; Remedies

     Section 7.01 . Events of Default. “Event of Default,” wherever used herein, means any one of
the following events (whatever the reason for such Event of Default and 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 the payment of interest, including Additional Interest, on any Securities when
due and payable and such default continues for a period of 30 days;

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     (b) default in the payment of the Principal Amount or Fundamental Change Repurchase Price on
any Security at Maturity or when such amount otherwise becomes due and payable;

     (c) default in the Company’s obligation to convert the Securities into cash and shares of
Common Stock, if any, upon exercise of a Holder’s conversion rights in accordance with Article 6
hereof and such default continues for a period of five days;

     (d) failure by the Company to provide the Fundamental Change Company Notice or notice to
Holders required pursuant to Section 6.01(a)(iii) or Section 6.01(a)(iv), in each case when due;

     (e) failure by the Company to comply with its obligations under Article 8;

     (f) default in the observance or performance of any covenant of the Company in this Indenture,
and such default continues for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of
at least 25% in aggregate Principal Amount of the Outstanding Securities a written notice
specifying such default and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder; provided, however, that notwithstanding the foregoing, default in the
observance or performance of the covenants contained in Section 4.10 hereof shall not constitute an
Event of Default unless such default continues for a period of 180 days after the date on which the
Company receives such notice;

     (g) default by the Company or any Significant Subsidiary of the Company in the payment of the
principal or interest by the end of the applicable grace period, if any, on any mortgage, agreement
or other instrument under which there may be outstanding, or by which there may be secured or
evidenced any Indebtedness for money borrowed in excess of $25,000,000 in the aggregate of the
Company and/or any such Significant Subsidiary, whether such Indebtedness now exists or is
hereafter created, resulting in such Indebtedness in excess of $25,000,000 in the aggregate
becoming or being declared due and payable prior to the scheduled maturity thereof;

     (h) the rendering against the Company or any of its Subsidiaries of a final judgment for the
payment of $10,000,000 or more, excluding any amounts covered by insurance, which judgment remains
undischarged and unstayed within 60 days after (i) the date on which the right to appeal such
judgment has expired if no such appeal has commenced or (ii) the date of which all rights to appeal
such judgment have been extinguished;

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

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

     Section 7.02 . Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default (other than those specified in Section 7.01(i) and 7.01(j)) occurs
and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in
aggregate Principal Amount of the Outstanding Securities may declare the Principal Amount plus
accrued and unpaid interest, including Additional Interest, on all the Outstanding Securities to be
due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by
Holders), and upon any such declaration such Principal Amount plus accrued and unpaid interest,
including Additional Interest, shall become immediately due and payable.

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     Notwithstanding the foregoing, in the case of an Event of Default specified in Section
7.01(i)or Section 7.01(j)), the Principal Amount plus accrued and unpaid interest, including
Additional Interest, on all Outstanding Securities will ipso facto become due and payable without
any declaration or other act on the part of the Trustee or any Holder.

     (b) At any time after such a declaration of acceleration has been made and before a judgment
or decree for payment of the money due has been obtained by the Trustee as hereinafter in this
Article 7 provided, 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 if:

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

     (ii) all Events of Default, other than the non-payment of the Principal Amount plus
accrued and unpaid interest, including Additional interest, on Securities that have become
due solely by such declaration of acceleration, have been cured or waived as provided in
Section 7.12.

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

     Section 7.03 . 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 plus accrued and unpaid
interest, including Additional 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 amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If an Event of Default occurs and is continuing, the Trustee may, but shall not be obligated
to, pursue any available remedy to collect the payment of the Principal Amount plus accrued but
unpaid interest, including Additional 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.

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     Section 7.04 . 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 9.07.

     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 7.05 . 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 9.07;

     SECOND: To the payment of the amounts then due and unpaid on the Securities for the
Principal Amount, Fundamental Change Repurchase Price or interest, including Additional
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

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

     Section 7.06 . 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

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hereunder (other than in the case of an Event of Default specified in Section 7.01(a) or
Section 7.01(a)), unless:

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

     (ii) the Holders of not less than 25% in aggregate Principal Amount of the
Outstanding Securities shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee hereunder;

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

     (iv) the Trustee for 60 days after its receipt of such notice, request and offer of
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 7.07 . 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 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 6, 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.

     Section 7.08 . 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

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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 7.09 . 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 3.07, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy 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 7.10 . 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 7.11 . 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 take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

     Section 7.12 . 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 7.01(a) or Section 7.01(a); or

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     (ii) in respect of a covenant or provision hereof which under Article 12 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 7.13 . 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 7.13 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 7.14 . 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, or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the performance of this
Indenture; and the Company (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 7.15 . Violations of Certain Covenants. A violation of Section 4.10 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 7.16 . 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,
including Additional Interest, if any, on the Securities, if and so long as a committee of the
trust officers of the Trustee in

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good faith determines that the withholding of such notice is in the interest of the Holders of
the Securities.

     Section 7.17 . Default Interest. Payments of the Fundamental Change Repurchase Price,
principal or interest, including Additional Interest, if any, that are not made when due will
accrue interest at the annual rate of 1% per annum above the then-applicable interest rate from the
required payment date.

ARTICLE 8

Consolidation, Merger, Conveyance, Transfer or Lease

     Section 8.01 . Company May Consolidate, etc., Only on Certain Terms. The Company shall not
consolidate with or merge into any other Person or convey, transfer or lease all or substantially
all of its properties and assets to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease all or substantially all of
its properties and assets to the Company, unless:

     (a) the resulting, surviving or transferee Person (the “Successor Company”) is a corporation
organized and validly existing under the laws of the United States of America, any State thereof or
the District of Columbia or is a corporation, limited liability company, partnership or trust
organized and existing under the laws of a jurisdiction outside the United States; provided,
however, that, notwithstanding the foregoing, the Company may also consummate such a transaction
where the resulting, surviving or transferee Person is organized under the laws of a foreign
jurisdiction if (i) such Person has common stock or American Depository Receipts representing such
common stock traded on the New York Stock Exchange or another national or regional securities
exchange in the United States; (ii) such Person has a worldwide total market capitalization of its
equity securities (before giving effect to such consolidation, merger or disposition) of at least
$1 billion; (iii) such Person has consented to service of process in the United States; (iv) the
Company has made the provision for the satisfaction of its obligations to repurchase the Securities
following a Fundamental Change, if any; and (v) the Company has obtained opinions of tax counsel
experienced in such matters to the effect that (A) under the then-existing U.S. federal tax laws,
there would be no adverse tax consequences to Holders resulting from such transaction and (B) under
the then-existing laws of any relevant foreign jurisdictions, there would be no adverse tax
consequences to Holders resulting from such transaction (including from holding or disposing of the
Securities or the Common Stock after such transaction); provided, further, that the Company may, at
its option and in lieu of obtaining the opinions of tax counsel referred to in clause (v)(B) of
this Section 8.01(a), indemnify and hold harmless the Holders of the Securities from all adverse
tax consequences to such Holders under the then-existing laws of any relevant foreign jurisdictions

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resulting from such transaction (including from holding or disposing of the Securities or the
Common Stock after such transaction);

     (b) the Successor Company (if not the Company itself) expressly assumes, by a supplemental
indenture, executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee,
all of the obligations of the Company under the Securities, and this Indenture; and

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

     Section 8.02 . Successor Substituted. Upon any consolidation of the Company with, or merger
of the Company into, any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section 8.01, the successor
Person formed by such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter.

ARTICLE 9

The Trustee

     Section 9.01 . 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. In case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent person would exercise or use under
the circumstances in the conduct of his own affairs.

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

     (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 Trust Indenture Act, and the Trustee shall
not be liable except for the performance of such duties and obligations as are
specifically set forth in

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this Indenture and no implied covenants or obligations shall be read into this
Indenture and the Trust Indenture Act 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 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 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;

     (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 payment) or notice effected by the
Company or any 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

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such funds or adequate indemnity against such risk or liability is not reasonably assured to
it.

     Section 9.02 . Notice of Defaults. The Trustee shall give the Holders notice of any Default
hereunder within 60 days after the occurrence 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 officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the holders of Securities.

     Section 9.03 . Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
9.01:

     (a) the Trustee may 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 offered to the Trustee
security or indemnity reasonably satisfactory to it 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

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or by agent or attorney (at the reasonable expense of the Company and 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; and

     (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.

     Section 9.04 . 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 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
Securities. The Trustee 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 in
conformity with the provisions of this Indenture.

     Section 9.05 . Trustee, Paying Agents, Conversion Agents or 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.

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     Section 9.06 . Monies to be Held in Trust. Subject to the provisions of Section 11.04, 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 be under 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 9.07 . 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, reasonable 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 negligence, willful misconduct or bad faith. The Company also covenants to indemnify the
Trustee (or any officer, director or employee of the Trustee), in any capacity under this Indenture
and its agents and any authenticating agent for, and to hold them harmless against, any and all
loss, liability, claim or expense incurred without negligence, willful misconduct or bad faith on
the part of the Trustee or such officers, directors, employees and agent 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 9.07 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 obligation of the Company under this
Section 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 7.01(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 9.08 . Officers’ Certificate as Evidence. Except as otherwise provided in Section
9.01, whenever in the administration of the provisions of this

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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 9.09 . 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 9.10 . 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 the combined capital and surplus of such Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this Section 9.10, it shall
resign immediately in the manner and with the effect hereinafter specified in this Article.

     Section 9.11 . 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 sixty (60) days after the mailing of such notice of resignation to the
Securityholders, the resigning Trustee may, upon ten (10) business days’ notice to the 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,
if any Securityholder who has been a bona fide holder of a Security or Securities for at least six
(6) months may, subject to the provisions of Section 7.13, 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.

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

     (i) the Trustee shall fail to comply with Section 9.09 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 six (6) months; or

     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 9.10 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 7.13, any Securityholder who has been a bona fide
holder of a Security or Securities for at least six (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 sixty (60)
days after either the Company or the Securityholders has removed the Trustee, the Trustee
so removed may petition at its own 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 (10) 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 9.11(a) provided, may petition any court of
competent jurisdiction for an appointment of a successor trustee.

     (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 7.10 shall

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become effective upon acceptance of appointment by the successor trustee as provided in
Section 9.12.

     Section 9.12 . Acceptance by Successor Trustee. Any successor trustee appointed as provided
in Section 9.11 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 9.07, 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 9.07.

     No successor trustee shall accept appointment as provided in this Section 7.11 unless, at the
time of such acceptance, such successor trustee shall be qualified under the provisions of Section
9.09 and be eligible under the provisions of Section 9.10.

     Upon acceptance of appointment by a successor trustee as provided in this Section 7.11, 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 (10) 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 9.13 . 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

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under the provisions of Section 9.09 and eligible under the provisions of Section 9.10.

     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 9.14 . 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 9.15 . 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 (3) 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 10

Holders’ Lists and Reports by Trustee

     Section 10.01 . Company to Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:

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     (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

     (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 10.02 . 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 10.01 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 10.01
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 10.03 . Reports By Trustee. 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, 2007. Each such report shall be dated as of
a date not more than 60 days prior to the date of transmission.

     (a) 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

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will notify the Trustee when the Securities are listed on any stock exchange or of any
delisting thereof.

     Section 10.04 . Reports by Company.

     (a) After this Indenture has been qualified under the Trust Indenture Act, the Company shall
file with the Trustee and the Commission, and transmit to Securityholders, such information,
documents and other reports and such summaries thereof, as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant to such Act; provided that any such
information, documents or reports filed with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act shall be filed with the Trustee within 15 days after the same is filed with the
Commission.

     (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 Officer’s 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 10.04.

ARTICLE 11

Satisfaction And Discharge

     Section 11.01 . 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, or are by their terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption, and the Company shall deposit with the Trustee, in trust, funds sufficient to pay at
maturity or upon redemption of all of the 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, including Additional Interest, if
any, due or to become due to such date of maturity or redemption date, as the case may be,
accompanied by a verification report, as to the sufficiency of the deposited amount, from an
independent certified accountant

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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, including Additional Interest, if any, 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 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 of and discharging 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 11.02 . Deposited Monies to be Held in Trust by Trustee. Subject to Section 11.04,
all monies deposited with the Trustee pursuant to Section 11.01 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 or redemption of which such
monies have been deposited with the Trustee, of all sums due and to become due thereon for
principal and interest, including Additional Interest, if any.

     Section 11.03 . 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 11.04 . 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,
including Additional Interest, if any, 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,
including Additional Interest, if any, 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.

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     Section 11.05 . Reinstatement. If the Trustee or the paying agent is unable to apply any
money in accordance with Section 11.02 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 11.01 until such time as the Trustee or the
paying agent is permitted to apply all such money in accordance with Section 11.02; 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.

ARTICLE 12

Supplemental Indentures

     Section 12.01 . Supplemental Indentures Without Consent of Holders. Without the consent of
any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory
to the Trustee, for any of the following purposes:

     (i) to cure any ambiguity or correct any omission, defect or inconsistency contained
herein, so long as such action will not adversely affect the interest of the Holders;
provided that any such amendment made solely to conform the provisions of this Indenture
to the description thereof contained in the final offering memorandum dated February 1,
2007, will be deemed not to adversely affect the interests of the Holders;

     (ii) to provide for the assumption by a successor corporation, partnership, trust or
limited liability company of the obligations of the Company contained herein;

     (iii) to provide for uncertificated Securities in addition to or in place of
certificated Securities; provided that the Company receives an opinion of nationally
recognized tax counsel that such uncertificated Securities are issued in registered form
for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of the Code;

     (iv) to add guarantees with respect to the Securities;

     (v) to secure the Securities;

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     (vi) to convey, transfer, assign, mortgage or pledge to the Trustee as security for
the Securities any property or assets;

     (vii) to add to the covenants of the Company for the benefit of the Holders, or to
surrender any right or power herein conferred upon the Company; or

     (viii) to add or modify any other provision herein with respect to matters or
questions arising hereunder which the Company and the Trustee may deem necessary or
desirable and which does not materially and adversely affect the rights of any Holder;

     (ix) to modify, eliminate or add to the provisions of this Indenture to such extent
as shall be necessary to effect the qualifications of this Indenture under the Trust
Indenture Act, or under any similar federal statute hereafter enacted.

     Section 12.02 . Supplemental Indentures With Consent of Holders. With the consent of the
Holders of not less than a majority in Principal Amount of the Outstanding Securities, by Act of
said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

     (i) reduce the rate or extend the time of payment of any Interest, including any
Additional Interest, on any Security;

     (ii) reduce the Principal Amount of, or extend the Stated Maturity of, any Security;

     (iii) make any change that impairs or adversely affects the conversion rights or
Conversion Rate of any Securities;

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

     (v) make any Security payable in currency other than that stated in such Security;

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     (vi) change the ranking of the Securities in any manner that adversely affects the
rights of Holders of Securities under this Indenture;

     (vii) impair the right of a Securityholder to institute a suit for the enforcement of
any payment on or with respect to such Securityholder’s Securities;

     (viii) make any change that impairs or adversely affects (a) the rights of a
Securityholder to convert a Security or (b) the Conversion Rate of any Securities;

     (ix) modify any of the provisions of this Section 12.02 or Section 7.12, except to
increase any such percentage or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby.

     It shall not be necessary for any Act of Holders under this Section 12.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Section 12.03 . Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 12 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be provided with,
and (subject to Section 9.01) shall be fully protected 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 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. 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 12.04 . Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 12, 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 12.05 . Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act.

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     Section 12.06 . Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 12 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 12.07 . 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 shall not affect the legality or validity of such
supplemental indenture.

ARTICLE 13

Miscellaneous

     Section 13.01 . Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies or conflicts with another provision which is required to be included in this Indenture by
the Trust Indenture Act, the provision required by the Trust Indenture Act shall control.

     Section 13.02 . Notices. Any notice or communication shall be in writing (including telecopy
promptly confirmed in writing) and delivered in person or mailed by first-class mail addressed as
follows:

if to the Company:

Borland Software Corporation

20450 Stevens Creek Boulevard, Suite 800

Cupertino, California 95014

Attention: General Counsel

Fax: (408) 517-2869

if to the Trustee:

U.S. Bank National Association

633 West 5th Street, 24th Floor

Los Angeles, California 90071

Attention: Corporate Trust Services

(Borland 2.75% Convertible Senior Notes due 2012)

Fax: (213) 615-6197

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     The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

     Any notice or communication mailed to a registered Holder shall be mailed to the Holder at the
Holder’s address as it appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed.

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it, except that notices to
the Trustee shall be effective only upon receipt.

     The Trustee agrees to accept and act upon facsimile transmission of written instructions
and/or directions pursuant to this Indenture given by the Company, provided, however, that (i) the
Company, subsequent to such facsimile transmission of written instructions and/or directions, shall
provide the originally executed instructions and/or directions to the Trustee in a timely manner
and (ii) such originally executed instructions and/or directions shall be signed by an authorized
officer of the Company.

     Section 13.03 . Communication by Holders with other Holders. Holders may communicate
pursuant to § 312(b) of the Trust Indenture Act with other Holders with respect to their rights
under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else
shall have the protection of § 312(c) of the Trust Indenture Act.

     Section 13.04 . Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:

     (a) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and

     (b) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of such counsel, all such conditions precedent have been complied with.

     Section 13.05 . Statements Required in Certificate or Opinion. Each certificate or opinion
with respect to compliance with a covenant or condition provided for in this Indenture shall
include:

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     (a) a statement that the individual making such certificate or opinion has read such covenant
or condition;

     (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 such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

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

     In giving such Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or on certificates of public officials.

     Section 13.06 . 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 Trust
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.

     Section 13.07 . Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by, or a meeting of, Holders. The Registrar and the Paying Agent may
make reasonable rules for their functions.

     Section 13.08 . Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or other day on
which commercial banking institutions are authorized or required to be closed in New York, New
York. If an Interest Payment Date is a Legal Holiday, payment shall be made on the next succeeding
day that is not a Legal Holiday, and no interest or Additional Interest, if any, shall accrue for
the intervening period. If a Record Date is a Legal Holiday, the Record Date shall not be
affected. In any case where the Stated Maturity of any Security is a Legal Holiday, then
(notwithstanding any other provision of this Indenture or of the Securities) payment of principal
need not be made on such date, but may be made on the next succeeding the next succeeding day that
is not a Legal Holiday, with the same force and effect as if made on at the Stated Maturity.

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     Section 13.09 . 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 13.10 . No Recourse Against Others. An incorporator, director, officer, employee,
Affiliate or stockholder of the Company, solely by reason of this status, shall not have any
liability for any obligations of the Company under the Securities, this Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By accepting a
Security, each Holder shall waive and release all such liability. The waiver and release shall be
part of the consideration for the issue of the Securities.

     Section 13.11 . 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 13.12 . 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 13.13 . Qualification of Indenture. The Company shall qualify this Indenture under
the Trust Indenture Act in accordance with the terms and conditions of the Registration Rights
Agreement and shall pay all reasonable costs and expenses (including attorneys’ fees and expenses
for the Company, the Trustee and the Holders) incurred in connection therewith, including, but not
limited to, costs and expenses of qualification of this Indenture and the Securities and the
printing of this Indenture and the Securities.

     Section 13.14 . Table of Contents; Headings. The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not intended to be considered a part hereof and shall not modify or restrict
any of the terms or provisions hereof.

     Section 13.15 . Severability Clause. In case any provision in this Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby and such provision shall be
ineffective only to the extent of such invalidity, illegality or unenforceability.

     Section 13.16 . 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 upon request will provide a schedule of its
calculations to

97

 

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 13.17 . 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 SECURITIES OR THE
TRANSACTION CONTEMPLATED THEREBY.

     Section 13.18 . 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]

98

 

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

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	BORLAND SOFTWARE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tod Nielsen	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Tod Nielsen
	 	 

[Trustee Signature Follows]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	U.S. Bank National Association, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paula Oswald	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Paula
Oswald
	 	 

 

 

SCHEDULE A

The following table sets forth the number of Additional Shares to be received per $1,000 Principal
Amount of Securities pursuant to Section 6.06 of this Indenture:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price
	Effective date	 	$5.10	 	 	$6.00	 	 	$7.00	 	 	$8.00	 	 	$9.00	 	 	$10.00	 	 	$11.00	 	 	$12.00	 	 	$13.00	 	 	$14.00	 	 	$15.00	 	 	$16.00	 	 	$17.00	 	 	$18.00	 	 	$19.00	 
	2/6/2007
	 	 	39.2157	 	 	 	28.2319	 	 	 	20.2750	 	 	 	15.2191	 	 	 	11.8469	 	 	 	9.5011	 	 	 	7.8076	 	 	 	6.5445	 	 	 	5.5749	 	 	 	4.8110	 	 	 	4.1957	 	 	 	3.6904	 	 	 	3.2681	 	 	 	2.9100	 	 	 	2.6026	 
	2/15/2008
	 	 	39.2157	 	 	 	26.7971	 	 	 	18.5205	 	 	 	13.4360	 	 	 	10.1643	 	 	 	7.9687	 	 	 	6.4369	 	 	 	5.3295	 	 	 	4.5021	 	 	 	3.8651	 	 	 	3.3614	 	 	 	2.9534	 	 	 	2.6160	 	 	 	2.3319	 	 	 	2.0890	 
	2/15/2009
	 	 	39.2157	 	 	 	24.8403	 	 	 	16.1500	 	 	 	11.0644	 	 	 	7.9667	 	 	 	6.0036	 	 	 	4.7090	 	 	 	3.8207	 	 	 	3.1868	 	 	 	2.7170	 	 	 	2.3564	 	 	 	2.0705	 	 	 	1.8375	 	 	 	1.6429	 	 	 	1.4771	 
	2/15/2010
	 	 	39.2157	 	 	 	22.2086	 	 	 	12.9437	 	 	 	7.9216	 	 	 	5.1388	 	 	 	3.5529	 	 	 	2.6164	 	 	 	2.0389	 	 	 	1.6641	 	 	 	1.4068	 	 	 	1.2197	 	 	 	1.0764	 	 	 	0.9614	 	 	 	0.8658	 	 	 	0.7840	 
	2/15/2011
	 	 	39.2157	 	 	 	18.1379	 	 	 	8.0140	 	 	 	3.3531	 	 	 	1.3104	 	 	 	0.4636	 	 	 	0.1466	 	 	 	0.0525	 	 	 	0.0326	 	 	 	0.0272	 	 	 	0.0235	 	 	 	0.0204	 	 	 	0.0177	 	 	 	0.0152	 	 	 	0.0130	 
	2/15/2012
	 	 	39.2157	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 

 

 

EXHIBIT A

Form of Fundamental Change Repurchase Notice

                                        ,                    

U.S. Bank National Association

633 West 5th Street, 24th Floor

Los Angeles, California 90071

Attention: Corporate Trust Services

(Borland 2.75% Convertible Senior Notes due 2012)

Fax: (213) 615-6197

	 	 	 	 	 
	 

	 	Re:
	 	Borland Software Corporation (the “Company”)
	 

	 	 	 	2.75% Convertible Senior Notes due 2012

     This is a Fundamental Change Repurchase Notice as defined in Section 5.01(a) of the Indenture
dated as of February 6, 2007 (the “Indenture”) between the Company and U.S. Bank National
Association, as Trustee. Terms used but not defined herein shall have the meanings ascribed to
them in the Indenture.

Certificate No(s). of Securities:                                         

(if certificated)

     I intend to deliver the following aggregate Principal
Amount of Securities for purchase by the Company pursuant to
Section 5.01 of the Indenture (in multiples of $1,000):

$                                        

     I hereby agree that the Securities will be purchased as of the Fundamental Change Repurchase
Date pursuant to the terms and conditions thereof and of the Indenture.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Signed:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

THE SALE OF THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, THIS
SECURITY MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER AGREES (1) THAT IT WILL NOT
WITHIN THE LATER OF (X) TWO YEARS AFTER THE LATEST ISSUE DATE OF THE NOTES UPON
THE CONVERSION OF WHICH THIS SECURITY WAS ISSUED AND (Y) THREE MONTHS AFTER IT
CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES
ACT) OF THE ISSUER, OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE SECURITY
EVIDENCED HEREBY, EXCEPT (A) TO THE ISSUER; (B) UNDER A REGISTRATION STATEMENT
THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS
GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN
COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT; AND (2)
AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY WITHIN THE LATER OF
(X) TWO YEARS AFTER THE LATEST ISSUE DATE OF THE NOTES UPON THE CONVERSION OF
WHICH THIS SECURITY WAS ISSUED AND (Y) THREE MONTHS AFTER IT CEASES TO BE AN
AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF
THE ISSUER, FURNISH TO THE TRANSFER AGENT AND THE ISSUER SUCH CERTIFICATIONS,
LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED 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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]